Kishu Inu is a new and rapidly growing cryptocurrency that has gained a lot of attention recently. One of the unique aspects of Kishu Inu is its built-in coin burning mechanism. This has led many investors to ask: Does Kishu Inu burn coins?
The short answer is yes, Kishu Inu implements a coin burn with every transaction. This is designed to control the total supply of Kishu Inu over time. Let’s take a deeper look at how Kishu Inu’s coin burning mechanism works.
How does Kishu Inu burn coins?
Kishu Inu burns coins with every transaction in two ways:
- 2% of every buy/sell transaction is permanently burnt.
- An additional 2% is sent to the Kishu Inu Vitalik Buterin Burn wallet, which is inaccessible.
This adds up to a 4% total coin burn with every Kishu Inu transaction. Here is a quick breakdown:
2% Transaction Burn
The Kishu Inu smart contract is programmed to automatically burn 2% of tokens involved in every transaction. For example:
- Bob buys 100 KISHU tokens. 2 KISHU are burned immediately.
- Alice sells 50 KISHU. 1 KISHU is burned right away.
These burnt coins are permanently removed from the total supply.
2% Vitalik Buterin Burn Wallet
An additional 2% of transaction tokens are sent to a burn wallet owned by Vitalik Buterin. He is the co-founder of Ethereum but is not affiliated with Kishu Inu. These coins are essentially burnt as Buterin does not have access to the wallet.
For example, if 100 KISHU tokens are bought:
- 2 KISHU are burned directly
- 2 KISHU are sent to the Vitalik Buterin burn wallet
This ensures a total of 4% coin burn with every Kishu Inu transaction.
Why does Kishu Inu burn coins?
There are a few key reasons why the Kishu Inu protocol burns coins:
Control circulating supply
Coin burning decreases the total circulating supply of Kishu Inu over time. This can positively impact the token’s scarcity and valuation if demand remains strong or increases.
Offset inflation
Kishu Inu has an inflationary tokenomics design. The coin burning mechanism helps offset some of this inflation by permanently removing tokens from circulation.
Make Kishu Inu deflationary
If coin burning outpaces inflation, then the total Kishu Inu supply will become deflationary over time. This could potentially make the token more valuable.
Reward holders
Burning coins can increase the value of coins held by existing Kishu Inu owners, as supply decreases relative to demand.
How many Kishu Inu coins have been burned so far?
As of November 2022, over 50% of the original 1 quadrillion Kishu Inu token supply has been burned. Here are some key stats:
- Total initial supply: 1,000,000,000,000,000 KISHU
- Current circulating supply: 494,406,560,049,145 KISHU
- Total tokens burned: 505,593,439,950,855 KISHU (50.56% burned)
This means over 505 trillion Kishu Inu tokens have been burned at the current time. The burn rate is also accelerating as transaction volume increases.
Kishu Inu Historical Burn Rate
| Date | Total Supply | Burned Supply | Burn Rate |
|---|---|---|---|
| May 2021 Launch | 1,000,000,000,000,000 | 0 | 0% |
| July 2021 | 989,406,000,000,000 | 10,594,000,000,000 | 1.06% |
| September 2021 | 769,340,000,000,000 | 230,660,000,000,000 | 23.07% |
| November 2022 | 494,406,560,049,145 | 505,593,439,950,855 | 50.56% |
This table shows the accelerating burn rate for Kishu Inu over time. In 17 months, over 50% of the original supply has been burned.
When will Kishu Inu supply reach 100% burn?
It is difficult to predict exactly when Kishu Inu will reach 100% circulating supply burned. However, some estimates can be made based on the current burn rate. Here are a few scenarios:
Conservative Scenario
- Current burn rate remains steady at ~2.5% per month
- Entire supply burned in ~48 months, by July 2026
Moderate Scenario
- Burn rate increases slightly to ~3.5% per month
- Full burn in ~34 months, by September 2025
Optimistic Scenario
- Burn rate accelerates to ~5% per month
- Total supply burned in ~24 months, by November 2024
However, if demand and transaction volume surge significantly, we could see burn rates exceed 10% per month, leading to an extremely fast supply burnoff.
What happens when 100% of Kishu Inu supply is burned?
It’s unclear exactly how Kishu Inu would function if 100% of the supply was burned. Several scenarios could unfold:
The developers could redeploy
The Kishu Inu developers could deploy a new smart contract and release a portion of the supply again. However, this would dilute existing holders.
The burn mechanism could be removed
The burn percentage on transactions could be set to 0% before reaching full burn. This would effectively cap supply at a certain level.
Kishu Inu could transition to a deflationary model
No new tokens are created, but transactions are still allowed as long as there is circulating supply. This turns KISHU into a true deflationary asset.
Trading could cease
With 0 supply, trading would likely stop unless new tokens are created. Kishu Inu could then only have speculative value.
Ultimately, the outcome will depend on technical decisions by developers and community governance votes. It remains to be seen what will happen if 100% supply burn is achieved.
Could Kishu Inu overtake Dogecoin?
Some investors speculate that Kishu Inu could overtake Dogecoin in market capitalization thanks to its hyper deflationary design.
Here is a comparison of Kishu Inu and Dogecoin market stats:
| Cryptocurrency | Market Cap | Price | Circulating Supply |
|---|---|---|---|
| Kishu Inu | $85 million | $0.0000000017 | 494,406,560,049,145 |
| Dogecoin | $12 billion | $0.07 | 132,670,764,299 |
For Kishu Inu to flip Dogecoin, its market cap needs to increase over 100x from current levels. With aggressive coin burning, this is hypothetically possible if demand for KISHU surges exponentially.
However, Dogecoin also has an advantage of being established, having strong brand recognition, and being listed on all major exchanges. Overall, it seems unlikely Kishu Inu will overtake Dogecoin, but its hyperdeflationary design could allow its market cap to grow substantially from here.
Conclusion
Kishu Inu implements an aggressive coin burning mechanism, with 4% of each transaction permanently removed from supply. This has already burned over 50% of the original 1 quadrillion token supply.
If burn rates accelerate due to higher transaction volumes, the entire circulating supply could theoretically be burned within 2 years. However, it remains uncertain how Kishu Inu would operate or retain value with 0 supply.
While overtaking Dogecoin seems improbable, Kishu Inu’s deflationary tokenomics still have potential to drive substantial price appreciation if adoption continues growing.
Overall, Kishu Inu’s massive coin burning experiment makes it one of the most hyperdeflationary cryptocurrencies ever created. This could lead to significant price volatility and upside potential for KISHU holders in the years ahead.
