Shiba Inu Ecosystem Announces Significant SHIB Token Burn with $155,720 Ethereum Allocation
The Shiba Inu ecosystem team plans to execute a substantial SHIB token burn using 40 Ethereum, equating to approximately $155,720 USD. This strategic burn aims to reduce the circulating supply of SHIB, potentially influencing the dynamics of the token’s market.
This move aligns with previous burn operations utilizing the Shibarium technology, which has successfully removed 43 billion SHIB tokens from circulation.
The Shiba Inu ecosystem team unveiled plans for a major token burn in the near future. This announcement came through a post from Shiba Inu’s marketing expert, Lucy, revealing that the team has amassed 40 Ethereum (ETH) for the purpose of burning SHIB tokens.
The value of these 40 ETH amounts to around $155,720 USD, considering the current price of ETH at $3,893 USD. This strategic move is expected to decrease the circulating supply of SHIB, potentially impacting the dynamics of the token’s market.
Details on the Planned Burn:
While specific details about the widespread burn have not been disclosed, it is believed that this action aligns with Shibarium-powered burns that have been occurring since December 2023. The Shibarium team has previously executed five burn operations, eliminating a total of 43 billion SHIB.
The most recent burn occurred on January 9, removing 9.35 billion Shiba Inu tokens from circulation. Shibarium burn operations utilize a portion of gas fees on the network for this purpose, with nearly 200 Ethereum already used in previous burn operations. The community anticipates more burns, especially with the increasing network transactions.
Impact on the Shiba Inu Ecosystem:
The upcoming burn, funded by 40 Ethereum, is expected to remove approximately 4.64 billion SHIB tokens from circulation. While this figure represents a small portion of the total supply, which is in the trillions, such burn operations are crucial to create contraction pressure on the token.
This strategy can support the Shiba Inu price by reducing supply amid growing demand. The Shibarium protocol, still under testing, is expected to facilitate automatic burn operations under specific conditions, integrating this contraction mechanism into the ecosystem’s processes.
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This planned burn represents a continuation of Shiba Inu team efforts to effectively manage the token’s supply. Leveraging the capabilities of the Shibarium platform, the team aims to enhance the intrinsic value of the token for its holders. As the community awaits more details on the burn and the release of the Shibarium burn gateway, these developments affirm the team’s commitment to supporting the token’s market performance through strategic supply reduction.
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