The Shiba inu burn mechanism has been promoted as a deflationary device to reduce token supply and promote sustained price growth. The experiment lost steam as this rate essentially dropped to zero. The answer is simple.
Why is Shiv’s burns useless?
First, there is no direct financial incentive for someone to voluntarily destroy their own tokens to burn the Shiv. In contrast to Ethereum’s EIP-1559, which links Burns to actual network usage, Shib’s procedures are optional and rely solely on community support. After initial excitement subsided, participation decreased. The protocol itself lacked a sustainable mechanism, and the burn movement was destined to fail.
Second, the largely symbolic nature of burns was soon recognized by a larger market. Despite millions of token destruction, Shiv’s nearly 589 trillion total circular supply far surpassed these figures. The only important incident occurred in 2021 when Vitalik Buterin moved 410 trillion Shibs to Dead Wallet. Since then, all burns have been rounded errors and have no identifiable effects on talk nemics or price.
What’s next for Shiv?
The collapse of Burn Activity highlights how weak Shib’s foundations are still. Its prices followed the general meme coin cycle, which rose sharply in 2021, followed by a long-term decline and stagnation. Because of the lack of structural cuts in supply, SHIB currently relies solely on speculative demand. Shib doesn’t have a plausible deflationary driver, as opposed to the continuous burn or half-mechanism of Bitcoin.
In the future, there is no chance that the burn will recover. Communities have shown they are unable to maintain their efforts, and developers have failed to incorporate important burn mechanics into their ecosystems. It was by no means a financial fact, rather a marketing ploy where token destruction could support value.
For investors, the fact that Shiv is burning at zero reveals only one simple truth. The outlook for tokens is bleak if there is no fresh demand.
