Shiba Inu’s marketing lead, Lucie, posted an update on X confirming that the SHIB token supply is now immutable. Ryoshi, the unknown creator of Shiba Inu, deleted the private keys. This means that no one can change the supply of this token.
To control the supply of SHIB in the market, it has to be burnt. This can only be done by the community through buying and burning the tokens in the process.
The SHIB team stressed that a large decrease in total supply will be possible only with help from many users. At the center of this plan is Shibarium, a Layer 2 blockchain solution that incinerates SHIB tokens through transaction fees. With every user interacting on Shibarium, the transaction will lead to burning and consequently decrease the total supply.
According to developers, billions of users will have to transact on Shibarium daily to achieve meaningful reductions in supply. This system makes it the task of the community to decrease supply. This makes it almost mandatory for the users to be more involved.
Shibarium’s Part in Shuba Inu Supply Decrease
Shibarium is a key aspect of Shiba Inu’s plan to deal with its enormous supply in circulation. It provides a cheap and efficient way for users to perform their transactions at a faster rate while burning SHIB tokens. Every transaction that happens on Shibarium protocol leads to the burning of some SHIB, thus decreasing its supply.
Thus, as Shibarium expands, the demand for BONE, the network’s transaction token, will also increase. Also, 70% of Shibarium’s base fees that are paid in BONE will be automatically transferred to SHIB and burned.
This way, the SHIB burns are directly linked to the success of Shibarium. And also to the activity on the platform, a perfect way of reducing the token’s supply that is in circulation. To date, more than 56 billion SHIB tokens have been burnt through Shibarium gas fees. This number will increase as more users join the platform.
Even with the introduction of Shibarium for automating SHIB burns, the community has been worried about supply reduction. Shiba Inu’s circulating supply has come under a lot of scrutiny from investors who have called for more significant and immediate burn rates.
These concerns have been brought up again with the release of Shiba Inu’s new roadmap. Some members of the community believe that it does not have enough large-scale burning efforts to address the problem.
Shytoshi Kusama, the lead developer of Shiba Inu, addressed these concerns stating that the team is more interested in a long-term sustainable burn rate than short-term artificial pumps. In her view, small and often burns are insufficient to bring a measurable change to the supply.
Rather, the development team is focusing on bigger, regular burns that will support sustainable, sustainable growth. This approach can be viewed as the team’s desire not to contribute to volatility.
It is to make sure that the price and quantity of SHIB are controlled properly. As the community still demands more aggressive burns. The Shiba Inu team still sticks to their plan of decreasing the supply step by step.
Shibarium and the Recent Progress
Shibarium’s development is crucial to Shiba Inu’s plans to decrease its token supply. Lucie, the marketing lead of Shiba Inu, revealed on X that a lot of BONE tokens that are locked in validators will be unlocked as knBONE on Shibarium soon. This event is expected to bring a lot of liquidity into Shibarium which will open up new possibilities for developers and users in the ecosystem.
Lucie also paid a lot of attention to the fact that developers need to create staking pools for knBONE and connect it with different use cases like NFTs. The rise in liquidity is likely to boost traffic on Shibarium and result in more SHIB burns as users stake or spend their tokens on various platforms.
