Kusama Says 99% Supply Burn Possible
Shiba Inu lead developer Shytoshi Kusama has addressed inquiries regarding the ambitious goal of burning 99% of the circulating SHIB token supply. Kusama initially engaged with the community by inviting questions on his podcast, saying, “What topic or question would you like to hear answered on my podcast? #shyspeaks.”
Burning 99% of Shiba Inu Tokens “Achievable”
This call for participation sets the stage for subsequent discussions on potential token burning strategies. LSP Finance Chief Financial Officer Zhang Fang directly asked about the feasibility and strategic planning behind such a large-scale destruction: “Can I ask for the timetable and roadmap for destroying 99% of Shib Tokens in circulation?”
Yayoi Kusama responds to Zhang’s inquiry if Explain the challenges and considerations involved in burning 99% of SHIB tokens. He acknowledged the historical impossibility of such an effort, noting, “A few years ago, burning 99% of Shib would have seemed impossible, but with many projects joining forces to achieve this monumental task, it is actually possible.” realized.”
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Kusama elaborated on the necessary conditions for this outcome, emphasizing the adoption of the Shib technology stack Multiple projects, especially large projectsto facilitate combustion. “More and more projects or some large projects must adopt the Shib technology stack,” said SHIB lead developer.
Kusama highlighted several significant obstacles to achieving burning goals. He explained that if the burning process starts to accelerate, it could push the price of SHIB higher as investors anticipate a spike in price, making burning more expensive and thus slowing down the process. “Suppose things start to spiral huge burnspeople will buy considering the price increase. In this case, it would be more expensive to burn Shib, slowing down the burning rate,” Kusama said.
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Furthermore, he emphasized that the strategic intent behind the destruction was as important as the actual situation. The combustion process itself, “It’s not the burning that matters, it’s the intention,” he said.
Furthermore, Kusama pointed out that token burning is not the only way for SHIB to succeed. He pointed out that the development of the memecoin’s utility is equally important, noting, “In the end, burning is not the only way for Shib to win. If I say oh, I probably, that’s going to take any length of time, for a fool, it’s Not short enough. So we found other ways to provide memecoin utility and make sure we reach a point through virality where people don’t want to burn coins anymore.”
He emphasized the importance of enhancing SHIB’s utility through mechanisms such as staking and developing new use cases for related tokens such as BONE, LEASH and Treat.
The proposed plan to destroy 99% of the total SHIB supply would create extreme scarcity. If demand remains stable or increases, a reduction in supply could cause the value of each remaining SHIB token to rise significantly. This shift has the potential to elevate SHIB from its current status as a low-cost meme token to a more valuable asset.
However, Kusama clarified that this burning will be a gradual process, driven by the adoption and integration of SHIB technology in various projects, and may take several years, rather than an immediate reduction.
At press time, SHIB is attempting to break above the 0.5 Fibonacci retracement level at $0.00002823. This technical level originates from the March 5 high of $0.00004567 and the local low of $0.00001067 observed on August 5. In the short term, a successful break above the 0.5 Fib level could pave the way towards the 0.618 Fib target at $0.00003235.
Featured image created using DALL.E, chart from TradingView.com
