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Shiba Inu enthusiasts push for a substantial reduction in SHIB’s hefty circulating supply through more burns.
Shiba Inu’s official burn tracker, Shibburn, is exploring the idea of burning SHIB on Binance using the token’s trading fees, mirroring the exchange’s approach to LUNC incineration.
Consequently, Shibburn questioned whether Binance could extend its burn support to Shiba Inu.
Imagine @Binance burning from the $SHIB trading fees just like they do for LUNC. Could it happen? 🤔 https://t.co/am2EMIQMU4
— Shibburn (@shibburn) July 9, 2024
Community Demands SHIB Burn from Binance
Shibburn raised the question after prominent community figure Lola made a polite request to Binance CEO Richard Teng. In an X comment, Lola asked Binance, under the leadership of Teng, to burn SHIB with a fraction of the revenue obtained from the token’s trading fees.
Lola compared Binance’s support for LUNC burn to that of SHIB and suggested that the exchange extend this support as well.
The Shiba Inu community members had been considering the possibility of burning SHIB on leading exchanges, including Binance and Coinbase. According to a recent X poll, over 96% of participants supported the initiative to burn SHIB on these exchanges.
However, the exchanges have ignored these demands, leaving community members to burn SHIB themselves.
Binance’s LUNC Burn
Following the collapse of the Terra ecosystem in 2022, the community embarked on a revival campaign to bolster the prices of LUNC and USTC. Part of the revival campaign includes sending LUNC tokens to the official dead wallet.
Interestingly, Binance declared support for the initiative, pledging to burn 100% of the monthly trading fees obtained from LUNC spot and margin pairs. However, the exchange reduced its commitment to 50% due to controversies surrounding the re-minting of incinerated LUNC.
Data from LUNC Metrics shows that Binance has burned 62.13 billion LUNC, worth $4.43 million. Binance’s contribution accounts for 49.2% of the total LUNC burns. Similarly, the exchange has also sent 4.38 million USTC to the dead wallet, representing 0.18% of the total USTC burn.
Potential Impact of Binance Burn on SHIB
Meanwhile, Binance has not indicated plans to extend this support to other tokens, like Shiba Inu. So far, 410,727,493,429,684 (410.72 trillion) SHIB have been incinerated, with 27.76 million burned in the past 24 hours.
Notably, Ethereum’s co-founder Vitalik Buterin burned 410 trillion of these tokens in 2021. Despite this incineration, Shiba Inu is still left with a hefty circulating supply of over 589 trillion tokens.
Should Binance heed the community’s request and burn Shiba Inu using part of its trading fees, it could drastically reduce SHIB’s circulating supply, enhancing the price of the remaining tokens.