The Shiba Inu (SHIB) market has been lauded for an array of things, including the network’s utility and its efforts to move away from the “meme coin” tag. However, the community-driven project’s burn mechanism has been questioned by many.
Several have suggested that Shiba Inu hasn’t sent enough assets into dead wallets. But Tron’s Justin Sun was seen praising the SHIB ecosystem for its burning mechanism.
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Justin Sun’s Perspective On Token Burn Mechanisms
SunPump’s Development And Token Burn Strategy
Sun has been busy developing the first meme platform on the Tron network, SunPump. Amidst this, the network has been trying to kickstart the token burn process. Seeing advantages like deeper token liquidity and regulatory acceptability, the SunPump community first contemplated burning Liquidity Pool (LP) tokens.
On-Chain Buyback And Burn Procedure
Sun said SunPump would forgo the LP token-burning strategy in favour of a 100% on-chain buyback and burn procedure to address this problem. The Tron founder pointed out that the method was already successful for assets like Shiba Inu.
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Diving Into Shiba Inu’s Burn Process
According to data from Shibburn, 410,728,473,530,620 tokens have been burnt from the initial supply of SHIB. The circulating supply of SHIB now stands at 583,456,426,501,302 SHIB. The meme coin’s burn rate was up by 36% over the past 24 hours, equating to 2,819,209 SHIB.
An increase in burns could boost the price of the meme coin as it would decrease the circulating supply. Shiba Inu saw a slight rise over the last 24 hours.
At press time, SHIB was trading at $0.00001339, having surged 2.35% daily. This comes after a nearly 5% drop throughout the past week.
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