On Monday, the Shiba Inu team announced that Shibarium, their layer-2 network, will commence burning SHIB tokens starting January 2024. Explore further details on the annual SHIB token burn process for a comprehensive understanding.
As per the recent blog update, Shibarium will allocate 70% of transaction fees for burning SHIB tokens, while the remaining 30% will be utilized to sustain the network's smooth and efficient operation.
Shibarium is set to accumulate fees in the governance Bone token, serving as gas for network transactions. Once the Bone token reaches a value threshold of $25,000, it will automatically convert into SHIB. Following this conversion, Shibarium will initiate the burning of SHIB tokens, permanently reducing their circulation.
The confirmation of SHIB token burns by Shibarium prompts the question: could Shiba Inu reach $1? This article will explore the potential timeline for Shiba Inu to reach the $1 milestone through Shibarium's burning mechanism.
How Long Will It Take for Shiba Inu (SHIB) to Reach $1?
Even with Shibarium burning 3 trillion tokens annually, reaching $1 for SHIB might be challenging in our lifetime. The interplay of dynamics suggests that despite reductions in supply, the abundance of tokens and limited demand could impact the ultimate goal.
The context of Shiba Inu having 589 trillion tokens in circulation with a relatively small holder base of 1.3 million highlights a challenge: adoption isn't keeping pace with the circulating supply, leading to potential price challenges, either causing dips or maintaining a stagnant value.
In summary, projecting Shibarium burning 3 trillion SHIB tokens annually would result in a 98-year timeline for Shiba Inu to reach $1—impractical in our lifetime. The possibility only increases if Shibarium significantly intensifies token burns, surpassing 100 trillion tokens per year.
