Dogecoin News Today: Shiba Inu Launches Weekly Token Burn Strategy to Boost Scarcity and Value

Shiba Inu (SHIB) has launched a new coin-burning strategy on August 9, 2025, sparking renewed debate over whether it still embodies its moniker as the “People’s Coin.” The initiative involves the systematic destruction of a portion of SHIB tokens each week, based on a fixed percentage of the project’s revenue from liquidity pools. The goal is to reduce the token’s overall supply, potentially increasing its value through scarcity while reinforcing the project’s decentralized nature.

The burning process is designed to be autonomous, with no direct intervention from the core development team. Transaction fees from SHIB’s use in decentralized finance (DeFi) platforms are redirected into a burn fund, which is then used to repurchase and destroy tokens. This mechanism is intended to align SHIB’s tokenomics with market expectations and to build long-term investor confidence, distinguishing it from other meme coins that often rely on hype rather than structured economic strategy [1].

Lucie, the project’s marketing lead, emphasized the need for revenue-generating projects to support development, noting that unlike Ethereum or Cardano, SHIB lacks a dedicated treasury. As a result, any new initiatives must generate their own income before they can be realized. Gaming projects developed by the SHIB team are highlighted as a way for users to earn and burn SHIB, with each transaction contributing to the coin’s destruction. This dual function of utility and scarcity is seen as a key innovation in the token’s strategy [1].

SHIB is also positioning itself as a direct competitor to Dogecoin (DOGE), which has been labeled the “people’s currency” by figures like Elon Musk. DOGE currently ranks eighth on CoinMarketCap with a market capitalization of $35.4 billion, while SHIB sits at 22nd with $7.9 billion. Despite its lower market cap, SHIB is leveraging its community-driven identity and new economic mechanics to challenge Dogecoin’s dominance [1].

However, the effectiveness of the coin-burning strategy remains uncertain. Critics argue that given SHIB’s massive circulating supply—trillions of tokens—burning a small portion may not significantly impact its price. The speculative nature of the market and the lack of broader utility beyond its current use cases further complicate the long-term prospects of the strategy [1].

The broader debate over SHIB’s identity reflects the evolving landscape of meme coins. Initially created as a community-driven alternative to Dogecoin, SHIB’s adoption of structured economic mechanisms may shift perceptions, making it appear more institutional in nature. This transition highlights the challenge of balancing grassroots appeal with financial sustainability in the crypto space [1].

As the project continues to evolve, its success will depend on factors such as the rate of token destruction, demand for SHIB, and overall market sentiment toward meme coins. If the burn rate is significant and demand remains steady or grows, SHIB could see more sustained price appreciation. However, without additional utility or adoption, the long-term viability of the strategy remains in question [1].

Source: [1] Cryptocurrency - World Market Live (https://worldmarketlive.com/cryptocurrency/)