An astonishing amount of Shiba Inu tokens, the meme-based cryptocurrency, has recently been moved from their staked position. The Ethereum blockchain has recorded a transaction involving 4 trillion SHIB tokens being relocated to Binance, a top-tier cryptocurrency exchange. This remarkable action has sparked significant buzz within the Shiba Inu community.
🚨 🚨 4,000,379,151,023 #SHIB (31,709,005 USD) transferred from Shiba Staking to #Binancehttps://t.co/eqntWcrNf0
— Whale Alert (@whale_alert) June 9, 2023
The Increase and Decrease in Tokens
This colossal transaction has increased Shiba Inu’s circulating supply by 1%, escalating the total to a whopping 578.9 trillion tokens. Meanwhile, the quantity of staked tokens has noticeably dropped to 10.44 trillion SHIB, according to data from Shibburn.com.
Speculations and Unresolved Questions
Despite the magnitude of this operation, its motivation remains a mystery. Moreover, the identity of the “crypto whale” behind this significant move is also unknown. With the tokens now on a trading platform, it’s presumed that they could be sold soon.
Token Destruction and Its Impact
Since its inception, Shiba Inu has witnessed the destruction of around 410.63 trillion tokens from its initial supply of 1 quadrillion. Notably, the Koyo token project undertook a substantial burn of Shiba Inu tokens last month, eliminating 1.49 billion tokens in one swoop.
SHIB’s Lead Developer on Token Burns
Shytoshi Kusama, SHIB’s head developer, recently discussed the relationship between Shiba Inu’s price and token burns. He believes that token burns alone cannot influence the price and advocated for more burns to drive price movement.
Unveiling SHIB’s Burn Mechanism
The SHIB development team has recently unveiled the Shibarium Layer 2 network’s burn mechanism, which is currently undergoing beta testing. Each transaction on Shibarium incurs a fee in $BONE tokens. This fee gets locked into a contract, with 30% of it serving network maintenance, and the remaining 70% gets burned. Interestingly, the burn can only happen when the contract holds more than 10 BONE tokens. These tokens are then converted into SHIB and eliminated.
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