By Bitcoinist - 3 months ago - Reading Time: 2 minutes
Shiba Inu Burn To Be Automated Through Shibarium – How Much SHIB Will Be Destroyed Monthly?
Following the announcement of an automated Shib burn mechanism, speculations have been flying concerning the total number of SHIB tokens slated to be burnt every month in 2024.
9.25 Trillion SHIB Set To Burn Monthly
According to a 2022 publication, a Shiba Inu community member, ‘Queenie’ on X (formerly Twitter) created a hypothetical estimation of the total amount of Shiba Inu tokens that could be burned through the burn portal in a year. According to Queenie, SHIB’s total supply could be reduced by over 111 trillion in a “bad” year.
Anyone can run hypotheticals from current data :) I did this just now: pic.twitter.com/iSeKJeB9V9
— Queenie (@Web3Queenie) March 31, 2022
This hypothetical analysis has given rise to rumors, suggesting a potential burn of 9.25 trillion SHIB in January 2024. This speculation is derived if the proposed 111 trillion SHIB burn is spread out between 12 months, resulting in an approximate annual reduction of 9.25 trillion SHIB tokens.
For several years, the Shiba Inu ecosystem has consistently initiated large-scale SHIB burns. In 2023, a total of 76 billion SHIB tokens were incinerated last year as reported by Shibburn, a SHIB burn tracker,
Some of Shiba Inu’s most notable burns in 2023, include ones made in December where over 33 billion SHIB tokens were burnt systematically within that month.
Presently the rate of burns in the Shiba Inu ecosystem is growing rapidly and with the introduction of an automated burn system in 2024, burn rates may skyrocket even higher.
Shibarium To Automate All SHIB Burns
The Shiba Inu ecosystem recently released a blog post disclosing a new innovative burn mechanism to increase the efficiency and productivity of burns monthly.
“Shibarium is introducing a transformative token-burning mechanism, crucial for the network’s economic model. This mechanism is designed to reduce token supply strategically, potentially increasing the token’s value and benefiting its ecosystem,” the Shiba Inu blog post read.
According to the publication, there will be two phases of the SHIB burn mechanism. The first phase will see the SHIB burn process managed manually by an official deployer wallet. Additionally, the second phase will introduce an automated system for SHIB token burns from January 2024.
“Starting in January, the mechanism will evolve into an automated system. This phase will witness multiple upgrades to enhance efficiency and reliability. The automated burn process will operate based on predefined rules, making it more efficient and transparent,” the post said.
The new SHIB burn automated mechanism is expected to strategically target the reduction of SHIB’s total supply, creating scarcity to influence the token’s value positively. The innovative burn technology also comes as a major boost to the SHIB ecosystem as it strives to maintain a sustainable and resilient ecosystem.
Featured image from Shutterstock
Original source: Bitcoinist