The Shiba Inu (SHIB) community is ramping up pressure on cryptocurrency exchange Binance to adopt a token burning mechanism similar to its LUNC initiative. The goal? To drastically reduce SHIB’s circulating supply and potentially ignite a price surge.
Shibburn, the official SHIB burn tracker, is actively exploring potential collaborations with Binance to implement a burning process for SHIB, mirroring the one currently in place for LUNC. The move is inspired by a plea from prominent community member, Lola, who formally requested Binance CEO Richard Teng to consider burning a portion of SHIB trading fees. Lola highlighted Binance’s successful LUNC burning campaign as a potential model for SHIB.
A recent community poll overwhelmingly endorsed the idea of major exchanges like Binance and Coinbase burning SHIB. While the enthusiasm is palpable, the targeted exchanges have yet to respond to these requests, leaving the community to rely on independent burning initiatives.
Binance’s role in the LUNC burn cannot be overstated. In the wake of the Terra ecosystem collapse, the exchange committed to burning 100% of LUNC trading fees, though this was later reduced to 50% amid controversies. Nonetheless, Binance remains a major contributor to the LUNC burn, having incinerated billions of tokens worth millions of dollars.
The Shiba Inu community is hopeful that a similar burning mechanism for SHIB could have a profound impact on the token’s price. Despite significant burns, including a massive one by Ethereum co-founder Vitalik Buterin, SHIB still boasts a colossal circulating supply.
While Binance has not indicated plans to expand its burning program, the community remains optimistic. The success of this campaign hinges on the cooperation of major exchanges. If implemented, a SHIB burn fueled by trading fees could potentially reshape the token’s market dynamics and trajectory.
However, it’s important to note that token burning is not a guaranteed path to price success. Several factors, including market sentiment, overall cryptocurrency market conditions, and the project’s development roadmap, will also influence SHIB’s price performance.