Will Shiba Inu Burn More Coins or Is It Already Too Late?

In the current cryptocurrency market, every detail matters. Just yesterday, Shiba Inu (SHIB) made a big splash by burning millions of its coins in a single day. However, the question that remains is whether this practice will continue, or is it already too late to see more coin burns?

Shiba Coffee Company: A Unique Integration of Tokenomics

Hey, have you heard about Shiba Coffee Company? For every bag of coffee that they sell, a certain number of SHIB tokens are permanently burned. This unique practice is designed to increase the value of SHIB tokens. Critics may argue that it's a clever marketing stunt, but supporters see it as a responsible use of the token economy.

The practice of burning tokens is not new in the world of decentralized finance. As of press time, 705 million SHIB tokens have been permanently destroyed in the last seven days, thanks to community efforts. This number might be lower than expected, but it's still an impressive feat.

The State of Shiba Inu: Burns vs. Non-Burns

Currently, nearly 41% of Shiba Inu's total supply has been burned, meaning that these coins are no longer in circulation. The distribution of these tokens is quite diverse, with about 10% of tokens being held by cryptocurrency platforms like Binance. According to Shiba Inu's website, the development team has locked 50% of the total supply on Uniswap, while the remaining 50% was gifted to Ethereum co-founder, Vitalik Buterin. Buterin then donated the majority of these tokens to a crypto-based COVID-19 relief fund for India.

Shiba Inu's Discord Server: A Key Information Hub

For further details, you can check a Shiba Inu Discord server to see when and how many coins have been burned. Additionally, every time a user renames their Shiboshi NFTs, a small amount of SHIB tokens are burnt. This practice ensures that tokens are continuously destroyed, and thus drives up the value of the remaining supply.

Contrasting SHIB and DOGE

While Shiba Inu is embracing coin burning as a strategy, Dogecoin (DOGE) takes a different approach. Unlike Shiba Inu, DOGE does not feature a burn mechanism. In fact, Dogecoins are designed with a continuously increasing supply, which means they can't be burned. This design feature is intentional and is used to incentivize miners to support the Doge blockchain.

Every minute, an astounding 10000 Dogecoins are minted. Over a day, this translates to a massive 14.4 million DOGE added to the blockchain. These newly minted coins are usually converted into more stable cryptocurrencies like Bitcoin or Ethereum, or they are sold for fiat currency. For the Dogecoin economy to thrive, the total amount of money flowing into the network needs to match the amount of Dogecoins minted daily. This requirement makes it challenging for the price of Dogecoin to rise steadily, leading to increased skepticism among investors.

Conclusion

The future of Shiba Inu and Dogecoin is complex, and it's undeniable that their coin burn mechanisms play a crucial role in their respective ecosystems. Shiba Inu has been actively burning tokens to create scarcity and increase value, while Dogecoin’s creators have chosen an alternative path. As crypto investors, it's important to understand these mechanisms and make informed decisions. Whether burning more coins is the right strategy for Shiba Inu or if it's too late to see any more burns remains to be seen.