The developers of Shiba Inu have launched a token burn portal that allows investors to burn their SHIB holdings to reduce the number of tokens in circulation.
Although SHIB holders have been burning the token using other means, including community burningthe newly launched burning portal allows Shib holders who have 3 web wallets to burn SHIB and earn rewards for participating in the process.
“This portal has been created to reward $SHIB burners with passive income recognition in the form of $RYOSHI rewards. Which means that 0.49% of all RYOSHI transactions will be distributed to owners of burned SHIBs.” A statement is read on the burning portal.
Burning cryptocurrencies is the process of reducing the circulating supply of coins to increase scarcity. By context, burning implies sending tokens to a dead wallet that has no obtainable keys or whose contents are unrecoverable. In turn, this is expected to make the token desirable for acquisitions, thus increasing the value. Cryptocurrencies like Ethereum and BNB are already implementing a burn mechanism intended to make tokens deflationary.
Interestingly, the recording portal has advanced interoperability features that allow other token holders to offer rewards to those who choose to burn their SHIB tokens. This means that “any project can use the Shiba Burn smart contract to create a ‘BURN pool’ and offer rewards for burning $SHIB tokens.”
However, the new recording portal is a mock before the release of ShibaSwap 2.0, a layer 2 solution that will increase and make the recording rate of SHIB more efficient. Previously, Shiba developers have stated that under ShibaSwap 2.0, 44.4 billion tokens could be burned in a year. This is a figure that could rise dramatically to 111 trillion tokens if other burning mechanisms are considered.
So far, around 410 billion SHIB tokens have been burned from ICO tokens according to data from the burn website. This means that with a consumption rate of 111 billion tokens per year, the total circulation of SHIB would be reduced by more than 80%.
Having said that, though the SHIB release on Robinhood lit a fire under the meme coin and pushed it up as much as 34%, the introduction of a more aggressive token burn program is sure to spur SHIB more than the listing of Robinhood and other community projects, including the Shiberse.
At the time of writing, Shiba Inu trades at $0.000023down 73% from its all-time high after falling into a lateral compression sled pattern.