The cryptocurrency hodlers Shiba Inu (SHIB) have burned over 16 billion SHIB tokens since the launch of the Burn Portal, which rewards users for removing tokens from circulation by burning them.
The team behind the meme-inspired cryptocurrency announced the launch of a burn portal that would be included in a new version of the decentralized exchange. ShibaSwap of Shiba Inu earlier this year, noting that it would make it easier for platform users to regularly share information. burn SHIB and reduce circulating supply.
At the time, Archangel, a member of the Shiba Inu team, noted that SHIBArmy should be realistic about the cryptocurrency burn mechanism and should not expect 90% of its circulating supply to burn. Notably, around 41% of the cryptocurrency supply has already been burned.
The burning portal was launched on April 23 and includes token rewards for those who burn tokens.
It’s worth noting that burning tokens permanently removes them from circulation by sending them to a wallet from which they can never be retrieved. Projects often burn tokens to reduce the circulating supply, which if met with similar or growing demand could cause the token price to rise.
The SHIB community has long been favoring token burns, effectively removing 263 billion tokens from circulation from October 2021 to March 2022, according to available data. However, the burning portal sends users who burn tokens “burntSHIB” tokens, which can be staked to generate rewards in the form of RYOSHI tokens, a separate token in the SHIB ecosystem.
As of this writing, the community has burned just over 16 billion SHIB tokens, and those that burn profits have an APR of 5.42%, according to the platform.
The 16 billion SHIBs burned are worth nearly $400,000. The SHIB price is up roughly 6% in the last 24-hour period, in line with a broader cryptocurrency market rally. Data from CryptoCompare shows that BTC is up 5%, while ETH is up just over 6%.