Kusama Claims 99% Burn of Shiba Inu Token Supply Is Achievable
Shiba Inu lead developer Shytoshi Kusama addressed questions about the goal to burn 99% of the circulating SHIB token supply. He invited community engagement for his podcast, stating, “What a topic or question you want to hear answered on my podcast? #shyspeaks.”
Burning 99% Of Shiba Inu Tokens Can Be Achieved
This invitation led to discussions on the feasibility of the token burn strategy. Fang Zhang, CFO at LSP Finance, inquired about the timeline and roadmap for burning 99% of SHIB tokens.
Kusama responded, explaining the challenges involved. He noted that while it seemed improbable years ago, collaboration among multiple projects could make the burn achievable. “Burning 99% of Shib seemed impossible just a few years ago, but with many projects banding together to achieve this monumental task it can actually be achieved,” he stated.
Kusama emphasized the need for large-scale projects to adopt the Shib tech stack to facilitate the burn process. He identified significant obstacles to achieving the target, including potential price increases driven by investor speculation. If burning accelerates, demand could rise, making it more expensive and slowing down the burn. “Assuming things started spiraling to a huge burn, people will buy considering that the price will moon. In this case, it would be more expensive to burn Shib, slowing down burning,” he explained.
He highlighted that the intent behind the burn is as important as the process itself: “It’s not the burning that matters, it’s [the] intention.”
Kusama also noted that token burns are not the only path to SHIB's success. Developing utility for the memecoin is crucial. He stated, “Finally, burns are not the only way Shib wins... we find other ways to give a memecoin utility.” Enhancing SHIB’s utility through staking and new use cases for associated tokens such as BONE, LEASH, and Treat is vital.
The proposed burn of 99% of SHIB’s total supply could create extreme scarcity. If demand remains stable or increases, the reduced supply could significantly raise the value of each remaining SHIB token, potentially elevating it from a low-cost meme token to a more valuable asset.
Kusama clarified that such a burn would be gradual, relying on the adoption of SHIB’s technology across various projects over several years.
As of press time, SHIB is attempting to breach the 0.5 Fibonacci retracement level at $0.00002823, derived from the March 5 high of $0.00004567 and the local low of $0.00001067 observed on August 5. A successful breakout above this level could lead to the 0.618 Fib target at $0.00003235.
