- Shiba Inu’s 1 cent dream is far-fetched due to slow burns, claims engineer.
- With over 1T LUNC tokens burnt, LUNC failed to register significant gains.
- SHIB Army and the LUNC community explore ways to speed up burning.
In the world of cryptocurrency, communal strength plays a key part in the coin’s development and long-term value. Several outspoken crypto communities are doing their best to encourage developers, executives, and popular crypto platforms to send crypto to burning addresses, thus removing tokens from the circulating supply.
Why Over 50% of SHIB Burned Isn’t Enough
Shiba Inu (SHIB) and Terra Luna Classic (LUNC) have been at the forefront of crypto-burning practices. Shiba Inu’s public Layer-2 blockchain Shibarium has burned cumulative fees derived from transactions on-chain, impacting SHIB’s price every time.
Shibarium L2 developers torched 9.35B SHIB on January 10, 2024, igniting community optimism ahead of the highly anticipated Shibarium auto-burning mechanism. As for 2023, the Shiba Inu community has collectively erased 76.4 billion SHIB coins from circulation.
However, Shiba Inu’s remaining supply is 589,272,418,781,393, while the initial supply was limited to 999,982,348,139,765. With 50% of the deployed supply immediately sent to Vitalik Buterin, the Ethereum founder proceeded with a donation of 10% of the allocated supply to India’s Coronavirus relief effort.
Commenting on SHIB’s shifting dynamics, a computer systems engineer on X expressed his sorrow for the Shiba Inu community, popularly known as the SHIB Army. Comparing SHIB’s burning rate to LUNC, the engineer stated that the LUNC community is still “dissatisfied” even though the remaining supply is over ten times less than SHIB’s.
How to Accelerate SHIB & LUNC Burns
The LUNC community has destroyed 1.05T tokens out of the 6.78T total supply through communal efforts. That leaves LUNC with 5.73T tokens still in play. Binance, the leading crypto exchange by trading volume, burns a monthly batch of LUNC, accumulated from the previous month’s relatable trading pair fees.
Despite burning millions per day, price appreciation has hardly caught up with the LUNC burning efforts. Even with over 1T LUNC coins eradicated from circulation, LUNC’s price has moved just 3.8% up from exactly a year ago.
SHIB holders are counting on automatic burns on Shibarium L2. Slated for a 2024 end release, the new SHIB burn system could theoretically burn billions of tokens per day, depending on the level of activity on Shibarium L2.
While the new auto-burn mechanism has been deployed on Shiba Inu’s ‘Puppynet’ testnet, it remains an open question when the canine coin’s custodians will be able to burn a certain amount of SHIB on every on-chain activity.
On the Flipside
- According to the tokenomics model displayed on CoinGecko, Terra Luna Classic’s (LUNC) theoretical maximum supply is infinite.
Why This Matters
Crypto burning can be an efficient way of maintaining a coin’s tokenomics in a deflationary way.
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