Shiba Inu Lead Dev Says Burning SHIB is ‘Low Priority’

The Shiba Inu lead developer Shytoshi Kusama has said burning Shiba Inu was 'low priority' during a Discord discussion with fans.

The user asked about the Shibarium layer-2 blockchain and whether it would burn as many as 100 trillion tokens – or 10% of the initial SHIB supply.

Shytoshi said his top priority was instead finding multiple use cases for Shiba Inu. 

He suggested the user look at the volume of other layer-2 blockchains and 'do the math'. However, this would require knowing the average trading volume of a blockchain that doesn't exist yet and then taking a % for burns that is yet unknown.

It comes after Kusama revealed just 5% of profits from Shiba Eternity would be used to burn Shiba Inu.

How important is burning tokens to the SHIB price?

The number one goal for Shiba Inu investors is obviously to raise the price.

This is hard when there's no hype coming from a crypto bull market. Shiba Inu had an incredible 45,000,000% price increase last year, but after it hit SHIB all-time high of $0.00008 in October last year the Shiba Inu price has been falling consistently. 

Burning SHIB is a method to increase the Shiba Inu price without needing more volume.

If the circulating supply of Shiba Inu was suddenly cut in half – as happened in May last year before the first price breakout – then the Shiba Inu price should increase 100%.

How long for the SHIB circulating supply to half?

In September 2022 some 1.75 billion Shiba Inu tokens were burned.

This is just 0.000296% of the circulating Shiba Inu supply. It would take 168 months – or 14 years – to cut the circulating SHIB supply in half at that rate.

It could come as a blow to investors banking on the idea of Shiba Inu burning its way to $1, for example. 

Instead, Shiba Inu investors will need to believe that Shibarium and the Shiba Eternity game can by themselves bring enough use cases and attention to SHIB that prices rise on volume.

EverGrow set to half circulating supply in next few years

A new cryptocurrency has capitalised on low Shiba Inu burns by setting up an ecosystem that could reduce the circulating supply by half much faster.

EverGrow launched an NFT marketplace on September 26th and announced '100% of revenue' would be sent to buying back EGC tokens and burning them from supply. An in-house collection of 15,000 NFTs worth $100 are also destined for buyback and burn, and each NFT also gives the owner a chance to win a Tesla or $50,000 plus other ongoing rewards. The collection is being sold exclusively at www.lunasky.com. 

LunaSky raised over $235,000 for EverGrow burn within the first 2 weeks since launch, and with further burn being generated from both EverGrow's natural trade volume, and the volume from their ecosystem token, Lucro, EverGrow are burning tokens at a rate never seen before in crypto. 

In 12 months, EverGrow has already burned 3% of its initial supply and this is expected to accelerate rapidly as more utilities are launched. 

EverGrow could well capture many former Shiba Inu investors who are disappointed with the progress of SHIB burning.