The team behind the iconic meme coin Shiba Inu launched its new token burn mechanism on Sunday.
The mechanism, called the ‘SHIB Burn Portal’, provides rewards to SHIB token holders that contribute to reducing SHIB’s circulating supply by burning their coins.
Token burning refers to a process in which tokens are transferred to a dedicated dead wallet, set up by its creators, from which they can not be retrieved, and are considered lost forever. It is a common method used in the cryptocurrency space to reduce the circulating supply of a project’s token, thereby increasing its scarcity.
In the words of the SHIB developers, scarcity can increase the price of the tokens, benefiting investors in the long-run, and contributing to the growth of the Shiba Inu ecosystem:
“Our hope is that with every burn, the wealth of the community grows, but also by rewarding the effort in the long term to make Shiba Inu one of the best digital assets in the history of cryptocurrencies.”
An Offer of Passive Income for Burning SHIB
SHIB token burning is not a new concept for the community, which has already been participating in reducing the SHIB supply for some time. However, this marks the first time that the Shiba Inu devs have offered official rewards to those investors that voluntarily agree to separate from their SHIB holdings forever.
Reportedly, the burn portal will reward SHIB token burners with ‘burnSHIB’ tokens, which will be distributed as 0.49% part of all ‘RYOSHI‘ token transactions. RYOSHI is an Ethereum-based DeFi project that aims to support the growth of the Shiba Inu ecosystem. It is also one of the creators of the SHIB Burn Portal.
Billions SHIB Burned in 24 Hours
According to the developers, over 8 billion SHIB tokens were burned within the first 24 hours after the launch of the new burn mechanism.
As of today, token burners report more than 10 billion SHIB tokens to be locked forever. The massive wave of contributions towards reducing SHIB’s supply was also noted on Shibburn.com, a burn tracking website which went down on Sunday due to heavy traffic, and is, at the time of publishing, still unavailable. The circulating supply of Shiba Inu (SHIB) currently amounts to 549,146,987,315,505 tokens.
In the meantime, the crypto market has reacted positively to the Burn Portal news as the price of SHIB jumped by more than 5% on Monday, increasing from $0.00002252 to $0.00002370 within a matter of hours.
SHIB’s price had been on a downtrend since April 12th, when it suddenly peaked by over 27% to $0.00002817 in a single day after news came out about Shiba Inu’s plans to launch its metaverse land sales, and the reveal that it was being added to payment app ‘Robinhood’.