As the Shibarium team prepares to automate SHIB burns from this month onwards, the burn portal could incinerate 9.25 trillion tokens in January 2024.
Since the Shiba Inu ecosystem team unveiled plans to automate Shibarium-powered burns beginning this month, community members are eager to know the number of SHIB that will be incinerated monthly via the portal.
While some have argued that the L2 blockchain could burn trillions of SHIB monthly, others speculate that the number of tokens taken out of the circulating supply will not exceed billions.
Shiba Inu Enthusiast Projects 111 Trillion SHIB Burns Annually
In 2022, a Shiba Inu community member, who goes by the pseudonym ‘Queenie,’ projected that the Shibarium burn portal could incinerate a whopping 111 trillion SHIB tokens annually.
It bears mentioning that the 111 trillion tokens projected by Queenie represent approximately 20% of SHIB’s circulating supply.
Using the estimate, the Shibarium burn portal could incinerate up to 9.25 trillion SHIB tokens monthly. Notably, the official Shibarium team has yet to corroborate this claim or disclose the number of tokens that will be burned every month.
With Shibarium set to automate SHIB burns from this month, the mechanism will function under predefined rules. The Shibarium document outlines that 70% of the network’s Base fee will be used to buy and burn SHIB. However, the incineration will occur once the burn contract reaches the $25K threshold.
33.8 Billion Shiba Inu Burned in December
For context, the Shibarium team initiated four manual burns last month, incinerating a total of 33.8 billion SHIB. With a unit of SHIB changing hands at $0.00000982, the 33.8B tokens are worth $331,916.
Meanwhile, SHIB has not been able to record a major rally like other top crypto assets, including SOL and AVAX. For the most part of 2023, the leading canine-themed token traded with five zeros after its decimal point.
At press time, SHIB was down 88.6% from its all-time high of $0.00008616, which was recorded on October 28, 2021. Most Shiba Inu community members attribute the price decline to the token’s hefty supply.
As a result, they have urged the team to increase the network’s gas fees in order to bolster SHIB burns.
While the importance of burning trillions of SHIB cannot be overemphasized, Shiba Inu’s lead developer has made it clear that incinerating SHIB is not enough to bolster price. He emphasized that there is a need to boost Shibarium adoption for SHIB prices to skyrocket.
