Shytoshi Kusama, the leader of the Shiba Inu project, stated that burning 99% of the circulating supply of SHIB is feasible. However, he emphasized that other important factors could affect the token price.
When asked by a community member about the timeline or plan for token burning, Kusama responded that this goal is currently feasible. While such a large burn once seemed impossible, the collaboration of many projects within the Shiba Inu ecosystem has made this milestone achievable.
Key Conditions for Token Burning
Kusama emphasized that achieving such a significant supply reduction can only happen if many projects or some large-scale initiatives adopt Shiba Inu's technology.
Risks Associated with High Burn Rates
The leader also pointed out the potential drawbacks of token burning. While burning may increase the price of SHIB, it could also make the token too expensive for users to buy, slowing down further burning. Kusama emphasized that burning is not the only factor determining the success of the Shiba Inu ecosystem.
Adoption is Key to Success
According to Kusama, a more sustainable way to enhance the value and ecosystem of SHIB is to promote its adoption in real-world use cases. If SHIB has practical applications, users will be less motivated to burn their tokens.
Kusama has previously emphasized the importance of expanding tools and features for SHIB. He argued that broader adoption would attract interest from centralized exchanges and further enhance the ecosystem.
New Features and Tools in the Ecosystem
According to this vision, the Shiba Inu ecosystem has introduced features like liquidity staking and other innovations. Kusama asserts that continuous innovation and new use cases are just as important as token burning for the ecosystem's success.
Community Engagement
The topic of token burning has emerged from questions sent by the Shiba Inu community to Kusama's podcast. Kusama frequently uses this format to address the most urgent challenges and opportunities within the ecosystem.