Mysterious Shiba Inu lead developer, Shytoshi Kusama, addresses the community’s misconceptions regarding the role of token burn in SHIB’s success.
Kusama issued the statement in response to Shiba Inu enthusiasts who emphasized that burns are crucial to driving SHIB’s demand.
Community Reacts as 1 Cent Dream Burns 250M SHIB
For context, the exchange started after the 1 Cent Dream’s official X handle announced its second Shiba Inu burn campaign, featuring the incineration of 250 million SHIB.
250M $SHIB burned 🔥
Thank you everyone, who participated and supported us!
Unfortunately @shibburn didn’t posted that burn on #X ,but here is transaction hash
0x9e9345d407f808621993d771791883013518c650288ecf9e688aa81b8d698f7c
Born for $SHIB and #SHIBARMY
Join us and let’s make… pic.twitter.com/Zu9cCmOEcd— 1 CENT DREAM $CENT (@1cDream) December 6, 2024
1 Cent urged the Shiba Inu community to support its project to remove more SHIB tokens from circulation. In response, some users instead criticized Kusama for not significantly enhancing SHIB burns.
Notably, a community member with the pseudonym Gunz0369 emphasized that burns are necessary to attract new investors. The user noted that this move might help propel Shiba Inu into the future.
Kusama Refutes Claim, Highlights Factors Driving SHIB Success
Reacting, Kusama pointed out the inconsistency in the claim. According to him, while critics argue that burns are relevant in attracting investors to the ecosystem, they also claim that there are not enough burns.
He characterized the claims as false, referencing Shiba Inu’s spectacular performance this year despite limited burns. For context, the price of Shiba Inu has witnessed a year-to-date (YTD) surge of 192% to $0.00003035.
The Shiba Inu leader suggested that Shiba Inu’s growth is not entirely reliant on burn but other factors. They include increased utility, partnerships, and a complete ecosystem featuring the Shibarium blockchain.
Instead of focusing solely on burns, Kusama emphasized utilizing a holistic strategy featuring utility, governance, and influence to impact SHIB’s success.
According to Kusama, key partnerships within the Shiba Inu ecosystem and revenue will increase burns and positive sentiment in the long term.
Furthermore, the Shiba Inu lead suggested that increasing utility and completing more projects to attract new users to the ecosystem are the perfect ways to enhance burns.
“Finally, and again, Shib is going well. And it isn’t because we burnt an enormous amount of Shib, ONLY, it’s because WE ARE SHIB. ZOOM OUT,” he added.
Shiba Inu Success Cannot be Tied to Only Shibarium
Meanwhile, some community members downplayed Shibarium’s role in reducing SHIB’s supply. Specifically, a user questioned how Shibarium has impacted SHIB burns despite being labeled the ‘game changer.’
Responding, Kusama emphasized that the price of SHIB has soared 3x since Shibarium launched on the mainnet. However, another user alleged that SHIB’s incredible performance was not driven by Shibarium, adding that the L2 blockchain requires SHIB to be successful, not the other way around.
Interestingly, Kusama used McDonald’s success as an analogy to explain why SHIB’s growth cannot be attributed to a single factor like Shibarium. The Shiba Inu leader suggested that just like McDonald’s success cannot be attributed to its fries alone, SHIB’s growth cannot be tied to only Shibarium.
He asserted that the success is driven by a total package, ranging from marketing to location.
It bears mentioning that Shibarium has facilitated the incineration of over 56 billion SHIB since its launch last year. The team manually burned these tokens using a portion of Shibarium gas fees. Following the launch of the burn portal, the system has automatically removed over 300 million SHIB from the circulating supply.
In the meantime, over 410.74 trillion SHIB tokens have gone up in flames since Shiba Inu launched on August 1, 2020.
