Shiba Inu has undergone a significant price improvement in the last two weeks due to renewed investor interest after its developers revealed plans to implement token burn mechanisms that will reduce the coin’s supply.

Shiba Inu is currently trading at $0.0000082 and has experienced a 6% change in the last 24 hours suggesting some price stability at the current level. However, it has so far gained almost 27% in the last 7 days which is a welcomed improvement compared to its poor performance even after the bull market kicked in.

Source: Binance

The digital coin’s previous losses fueled so much uncertainty and doubt that some critics started calling it a scam. One of the reasons for the harsh criticism was that it failed to rally when the Shibaswap DEX was launched and also the bull market kicked in towards the end of July. Instead, it seemed to be holding steady at the $0.0000062 price range.

Shiba Inu developers heed the call for a token burn

However, its price pump this week renewed hopes about its future especially after its developers revealed coin burn mechanisms for Leash and the Shiba Inu token. This means the supply levels of both tokens will reduce over time and this will have a deflationary impact on its price. According to the new announcements, Shiba Inu tokens will be burnt every time they are listed on a new exchange.

The coin has so far amassed a strong community of followers that are excited about the coin’s growth prospects moving forward. However, they have expressed concerns about the coin’s already inflated supply and how it could potentially make the coin less attractive in the future. Shiba Inu developers are also working towards creating a native blockchain that will further enhance SHIB’s utility. The blockchain will also likely have token burn mechanics that will help reduce the inflated supply more efficiently.

What the token burns will do for the Shiba Inu coin

Token burns should in theory contribute to better price performance for the Shiba Inu token. However, this will depend on whether the supply will reduce enough to have a meaningful impact. It currently has 394 trillion tokens in supply which means it started off at a highly inflated level that has not had a good impact on its price level. It would still have an inflated supply if half of the currently existing tokens were burned. Some analysts have suggested that Shiba developers should burn roughly 90 percent of the coins in existence so that it will have a more reasonable supply.

It is also worth noting that Shiba already had a major token burn earlier this year when its developers sent half its supply to Ethereum founder Vitalik Buterin who ended up burning 90% of the coins he received. The recent announcements are great news for the community because they confirm that the developers are aware and they also want to make sure that the projects and future developments will be successful. The announcements have so far had a significant impact on Shiba Inu because they renewed investor confidence.