Will Shiba Inu burn coins?

Will Shiba Inu burn coins? 

Will Shiba Inu burn coins

It was a Shiba Inu coin fire last year that gave SHIB its first all-time high.

In 2022, Shiba-Inu investors hope that the coin burn will soon take SHIB to a higher level than ever before.

Here's a quick look at the math:

  • The SHIB burn rate is currently at 41.03%, and there are 549 trillion Shiba Inu tokens (SHIB) in circulation.
  • Shiba Inu's market cap was $6.7 billion at the end of July, with a SHIB price of $0.000012.
  • Imagine if the SHIB burn rate doubled to 80% and there were 200 trillion Shiba Inu tokens (SHIB) in circulation
  • At the same Shiba Inu market capitalization of $6.7 billion, SHIB would have a price of $0.0000335.

Following this short example, a doubling of the Shiba Inu burn rate would give your portfolio a 179% increase regardless of demand.

There's only one problem.

The Shiba Inu burn rate has only increased by 0.01% in over 12 months.

This is where EverGrow comes in - the hyperdeflationary token that's already burned a lot more money than Shiba Inu and has yet to reach its first birthday.

A brief overview of Shiba Inu token burning.

To understand EverGrow, we first need to understand Shiba Inu coin burning.

Here's a brief summary:

  • At the beginning of 2021, the market capitalization of Shiba Inu was at best a few million.
  • The anonymous founder Ryoshi withdrew from the project, leaving Vitalik Buterin (co-founder of Ethereum) with half of the total SHIB supply.
  • Buterin didn't want the power that came with the SHIB supply, so he burned 41.02% of the total SHIB supply at the time and sent the rest to a COVID -19 relief fund in India and a portion to support an artificial intelligence PhD programme.
  • Shiba Inu reached an all-time high of $0.000035 within days of the coin burning last May.
  • Since then, Shiba Inu supporters have found creative ways to keep burning SHIB, even though the burn rate has only increased by 0.01% in over 12 months.

The problem with burning Shiba Inu is that it's decentralised.

This means that investors must either destroy their own Shiba Inu assets or find ways to get others to destroy theirs.

This comes at a cost.

For example, in the last week of July 2022, SHIB 1.13 billion was burned through 122 individual transactions totaling $13,500.

Doubling the Shiba Inu consumption rate to 80% would have a personal cost of over $3 billion.

EverGrow has burned through 53% of its supply in 10 months

EverGrow is a hyperdeflationary token.

What does this mean for you?

It means that EverGrow was developed with burning coins in mind and the process is almost automatic via smart contracts.

To understand this, we need to take a look at the transaction tax on EverGrow:

  • To buy EverGrow ($EGC), you've to pay a transaction tax of 14%.
  • You also pay this tax when you sell EverGrow
  • The transaction tax is split into 8% BUSD rewards (more on that below), 2% for liquidity, 2% for marketing and 2% for buyback and burn
  • Every month the funds collected for Buyback and Burn will be executed via Smart Contracts to buy $EGC and send it to the Burn address.

While 2% may not seem like a large amount for burn, keep in mind that EverGrow has averaged $3,619,000 in daily trading volume since its launch last September.

That means an average of about $72,380 is collected each day for buyback and burning - more than five times the amount of Shiba Inu burned in one week in July.

Key difference between EverGrow and Shiba Inu - scalability.

The problem with burning Shiba Inu coins is that the burn rate slows down as SHIB becomes more expensive.

And why?

Because it costs more to burn Shiba Inu tokens.

EverGrow doesn't have this scalability problem because burning coins depends on daily trading volume - it doesn't depend on convincing investors to burn some of their own holdings.

This fact is why LUNC holders (i.e., the people who held their Terra Luna during the mid-May collapse) voted to implement a burn tax.

The 1.2% tax on all LUNC transactions is seen as the fairest way to burn LUNC to raise prices in the long run without a small group having to sacrifice their investments for the greater good.

Isn't Shiba Inu doing some exciting things to increase the burn rate?

Yes and no.

Remember, Shiba Inu is decentralised. There's no central development team responsible for the project.

This was an issue that the unofficial main development team (@shibtoken on Twitter) encountered in July when SHIB investors complained about the new ShibaSwap burn portal.

The burn portal was launched in April and was meant to reward anyone who burned their SHIB with Ryoshi tokens at a fixed APY.

However, the rewards were far fewer and much slower than expected.

While acknowledging the frustration, @shibtoken said it was out of their hands as another project - Ryoshi's Vision - manages the burn portal.

Other projects like Shiba Inu Coffee Company and Wendy's burn SHIB with a percentage of their projects. These projects, while exciting, need to be scaled if they're to significantly reduce the Shiba Inu burn rate.

How likely is it that EverGrow will produce a return on investment?

EverGrow is still a cryptocurrency with a small market cap ($85 million on August 1).

Burning coins only makes sense if there is a sustained demand that drives a cryptocurrency's prices even higher.

But EverGrow is an exception to this rule.

The 8% portion of the 14% tax earmarked for BUSD rewards has paid out more than $37.5 million to investors' crypto wallets to date. These are rewards paid out in a stablecoin (BUSD) and not in the native $EGC token.

EverGrow is already the leading reflection token that pays stablecoin rewards in crypto.

Due to the high taxes on buying and selling, the idea is to buy EverGrow and get an investment return via BUSD rewards - not by selling $EGC at a higher price.

For example, if you had invested $5,000 in $EGC at the beginning of October last year, you would now have received $12,800 in BUSD rewards.

That's passive income in stablecoin. Paid daily into your crypto wallet. Without touching the underlying asset.

BUSD rewards depend on daily volume, which peaked at $60 million last year and is currently at $250,000 during the devastating crypto bear market - however, EverGrow is quickly gaining investors thanks to its fundamental principles and robust roadmap.

EverGrow will likely continue to gain attention and grow rapidly from where it is today. Last October, the company reached a market cap of over $1 billion - during the next bull market, EverGrow is likely to grow even more.

As a small-cap cryptocurrency with great potential, EverGrow could be a great asset to diversify your portfolio.

Therefore, if you love Shiba Inu coin burn, you'll love EverGrow too.

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