The Shiba Inu (SHIB) community’s goal of pushing the token’s price to $1 is still in the works. One way in which the SHIB community plans to increase the asset’s price is by rigorously burning SHIB tokens. However, the endeavor has not been easy so far. Nonetheless, the project may amp up its burn initiative by a significant margin in the coming months. With the help of ShibaSwap, Shibarium, and virtual land in the SHIB metaverse, the project could theoretically burn 111 trillion SHIB annually.
A Shiba Inu (SHIB) proponent who goes by “SHIB Bezos” recently took to Twitter and claimed the project could potentially burn 111 trillion tokens annually. The known SHIB influencer Queenie had also said the project could burn trillions of SHIB annually. Albeit, Queenie had revealed a hypothetical estimation. Let’s take a look at the potential scenario that could lead to trillions of SHIB being taken off circulation.
Burning Shiba Inu in the Metaverse
Renaming lands in SHIB: The Metaverse will also lead to burn transactions. All funds from renaming lands will go into the dead wallet. A total of 96,288 plots are available to be renamed. Renaming a land would cost $100 worth of SHIB. For $0.000027 on average, $100 produces 3.7 million SHIB.
Additionally, if 3.7 million SHIB tokens are destroyed for each piece of land renamed, 96,288 land plots could lead to 356.6 billion SHIB being burned.
The hypothetical assumption also considered that ShibaSwap could burn 1% of transactional volume. If ShibaSwap generates $10 billion in monthly volume, that equates to 370 trillion SHIB at $0.000027. 3.7 trillion SHIB is one percent of the monthly volume of 370 trillion SHIB. Moreover, if 3.7 trillion tokens are burned monthly, 44.4 trillion Shiba Inu tokens could be burned every year from ShibaSwap.
Shiba Inu’s layer-2, Shibarium
The L2 network for the Shiba Inu ecosystem, Shibarium, is one of the most popular launches coming this year. Many people expect the network to push SHIB’s burn rate by destroying 70% of the base transaction fees.
The hypothetical calculation takes into account that Shibarium could trade for $5 billion outside of ShibaSwap. A month’s worth of trading activity would be around 185 trillion SHIB. Burning 1% of Shibarium’s volume could lead to 1.85 trillion SHIB burns monthly, and 22.2 trillion per year.
Together, all three scenarios add to 111 trillion SHIB tokens burned each year. Of course, this is still hypothetical, and the team is yet to finalize everything. We still do not have a launch date for the upcoming layer-2 network, although the beta testnet has proven to be very successful. Removing 111 trillion tokens on an annual basis could propel SHIB’s price north of $1. However, that is only if the hypothesis is correct. At press time, SHIB was trading at $0.00001137, up by 5.9% in the last 24 hours.