The Shiba Inu team confirmed on Monday that the layer 2 Shibarium network will start burning SHIB tokens from January 2024. Read here to learn more details about how many SHIB tokens will be burned by Shibarium each year for a better and deeper understanding.
According to the latest blog, 70% of the transaction fees made on Shibarium will be used to burn SHIB tokens. The remaining 30% will be used to maintain the network to keep it running smoothly and efficiently.
Shibarium will charge fees in the governance token Bone, which is used as gas to execute transactions on the network. Bone tokens will then be automatically converted to SHIB once a value threshold of $25,000 is reached. Once the conversion is complete, Shibarium will burn the SHIB token, permanently removing it from circulation.
However, now that Shibarium is confirmed to burn its SHIB token, is it possible for Shiba Inu to reach $1? In this article, we will clarify how many years it could take for Shiba Inu to reach the $1 mark through the burning of Shibarium.
Shiba Inu: How Long Will It Take For SHIB To Reach $1?
If all goes well and assuming Shibarium burns 3 trillion tokens per year, that still won't get SHIB to $1 in our lifetime. The dynamic here is different as supply will remain abundant while demand will be scarce.
In this context, Shiba Inu has 589 trillion tokens in circulation and barely 1.3 million holders. Adoption has not kept up with circulation causing its price to drop or stay flat.
In short, even if Shibarium burns 3 trillion SHIB tokens per year, it will take Shiba Inu 98 years to reach $1. That is simply not possible in our lifetime. However, if Shibarium manages to burn over 100 trillion tokens per year, then only then will Shiba Inu have a chance to reach $1 before our lifetime.
