9.25 Trillion SHIB Tokens to be Burned Monthly
There has been speculation about the total number of SHIB tokens that will be burned each month in 2024 since the announcement of an automated burn mechanism for Shib Inu tokens. A community member named ‘Queenie’ on X (formerly Twitter) created a hypothetical estimation of the potential amount of SHIB tokens that could be burned in a year through the burn portal. According to Queenie, SHIB’s total supply could be reduced by over 111 trillion in a “bad” year.
This analysis has led to rumors suggesting that 9.25 trillion SHIB tokens will be burned in January 2024. This speculation is based on the assumption that the proposed 111 trillion SHIB burn will be spread out over 12 months, resulting in an annual reduction of approximately 9.25 trillion SHIB tokens.
Large-Scale Burns in the Shiba Inu Ecosystem
The Shiba Inu ecosystem has consistently initiated large-scale burns of SHIB tokens for several years. In 2023, a total of 76 billion SHIB tokens were burned, according to Shibburn, a SHIB burn tracker. Some notable burns in 2023 occurred in December, with over 33 billion SHIB tokens systematically burned within that month.
The rate of burns in the Shiba Inu ecosystem is currently growing rapidly, and with the introduction of an automated burn system in 2024, burn rates may increase even further.
Shibarium Introduces Automated Burn Mechanism
The Shiba Inu ecosystem recently announced a new burn mechanism called Shibarium, which aims to increase the efficiency and productivity of monthly burns. This innovative mechanism is designed to strategically reduce the token supply, potentially increasing the value of SHIB tokens and benefiting the ecosystem.
There will be two phases of the SHIB burn mechanism. The first phase involves manual management of the burn process by an official deployer wallet. The second phase, starting in January 2024, will introduce an automated system for SHIB token burns. This automated process will operate based on predefined rules, making it more efficient and transparent.
The new automated burn mechanism is expected to strategically target the reduction of SHIB’s total supply, creating scarcity and positively influencing the token’s value. It is a significant development for the SHIB ecosystem as it aims to maintain a sustainable and resilient ecosystem.
Hot Take: Shib Inu Tokens Set to Experience Significant Burns in 2024
With the introduction of an automated burn mechanism and rumors suggesting a potential burn of 9.25 trillion SHIB tokens in January 2024, it is clear that significant burns are on the horizon for Shib Inu tokens. The Shiba Inu ecosystem has a history of large-scale burns, and this trend is likely to continue with the implementation of the automated burn system.
The strategic reduction of SHIB’s total supply through burns creates scarcity and has the potential to positively impact the token’s value. As Shibarium takes center stage in managing monthly burns, transparency and efficiency will be prioritized, further strengthening the SHIB ecosystem.
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