A new burning portal now allows Shiba Inu token holders to induce participants to reduce the supply of the meme coin in circulation.
The team behind the Shiba Inu crypto has launched a new burning mechanism designed to reduce the supply of circulating tokens while rewarding holders of the yield-generating token.
Shiba Inu was launched in 2020 by pseudonymous developer Ryoshi as a “decentralized spontaneous community building experience.“SHIB can be considered an Ethereum-based equivalent of Dogecoin (DOGE), the oldest and best-known meme coin in the crypto industry.
SHIB’s burn portal went live over the weekend, and the team tweeted on Monday that over 8 billion tokens had already been burned in the first 24 hours.
In the first 24 hours over 8 BILLION $SHIB was burned through the SHIB Burn Portal!
🔥Burn $SHIB and earn passive income at https://t.co/jSnPG8SEoF!
IMPORTANT: Read disclaimer at https://t.co/D91bVoMUtz pic.twitter.com/GmhxNdZAvi
— Shib (@Shibtoken) April 25, 2022
Explaining the new burn mechanism, the developers said that “the tokens are transferred to a burn address, i.e. a wallet from which they cannot be recovered.”
“Once a token is sent to a burn address, it is gone forever. A burnt cryptocurrency has a reduced supply, making tokens rarer“, can we read in the description.
Incentives to burn SHIBs
The SHIB Burn Portal was launched in conjunction with Ryoshis Vision (RYOSHI), an ERC-20 token aimed at supporting the growth of the SHIB ecosystem. Users who decide to burn their SHIB tokens receive another token called burntSHIB, which pays rewards in RYOSHI tokens at a variable rate.
According to the developers, 0.49% of all RYOSHI transactions will be distributed to burntSHIB token owners.
A more indirect incentive is reducing the circulating supply of Shiba Inu, something that could pay off in the long run, as increased rarity can – theoretically, but not necessarily – translate into appreciation of the coin.
“Scarcity can raise the price of tokens, which benefits investors, but it’s not always guaranteed“, said the team.
SHIB is down 2.13% over the past day, trading at around $0.00002364 according to coingecko.
During the launch of the project, a total of 1 quadrillion SHIBs were minted. The project developers sent about half of the total supply to Vitalik Buterin, the co-founder of Ethereum, in May 2021.
Ryoshi explained that “there is no greatness without a vulnerable point and as long as [Buterin] don’t bully us, then SHIBA will grow and survive. ”
Buterin then burned 410.24 trillion SHIB – 90% of his holdings, worth around $6.7 billion – and donated the remaining 10% to charity. He argued that if he did anything with the SHIB tokens given to him, it could lead to unnecessary speculation.
According to Burn Dashboard, a SHIB token tracking tool, over 410 trillion SHIB, or 41% of the total token supply, have been burned.