Shiba Inu (SHIB), the self-proclaimed “Dogecoin Killer,” is setting its sights on a potential price surge with the launch of ShibTorch, its long-awaited automatic burning portal. This development within the Shiba Inu ecosystem’s Shibarium Layer-2 (L2) solution marks a significant shift for the memecoin, aiming to address a key concern: a bloated circulating supply.
Burning Away Inflation A Community’s Hope
For Shiba Inu holders, excessive token supply has been a thorn in their side. The project relied heavily on manual burns initiated by the community, leading to unpredictable fluctuations in the amount of SHIB removed from circulation. This uncertainty contributed to SHIB’s struggles in recent market downturns.
ShibTorch promises to change that. The portal will automatically burn a portion of the base fees paid by users on Shibarium. This two-pronged approach aims to:
- Control inflation: By permanently removing SHIB from circulation, ShibTorch hopes to curb inflation and potentially increase the value of remaining tokens.
- Reward holders: The core principle behind most cryptocurrencies is scarcity. Reducing the overall supply could incentivize long-term holding, as a smaller pool of tokens could theoretically drive prices higher.
Lucie, the Shiba Inu Marketing Executive, shed light on the operational model. ShibTorch burns base fees, while a separate pool of “priority fees” goes towards rewarding validators who secure the network. Interestingly, community participation remains a key element. Users can trigger burns by accumulating BONE, the Shibarium governance token. This accumulated BONE is then converted to SHIB on the Ethereum blockchain before being permanently removed from circulation.
Also Read: Shiba Inu Ignites Shibarium With Liquid Staking Launch
The Memecoin War Heats Up
The launch of ShibTorch comes amidst a fierce rivalry in the memecoin space. Projects like Dogecoin (DOGE), Floki Inu (FLOKI), BONK (BONK), and Dogwifhat (WIF) are constantly vying for dominance. However, Shiba Inu boasts a significant advantage – real-world utility. Earlier this week, the project announced BONE and USDC payments through a partnership with Visa and Mastercard. This combination of utility and a potential supply crunch could give Shiba Inu a much-needed edge.
The Future of SHIB – Burn Bright or Fade Away?
Only time will tell if ShibTorch lives up to the hype. While the automatic burning mechanism addresses a critical issue, external market forces will undoubtedly play a role in SHIB’s price performance. Regardless, the launch signifies a strategic shift for Shiba Inu, demonstrating the project’s commitment to long-term growth and sustainability.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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