The team behind the iconic meme coin Shiba Inu launched its new token burn mechanism on Sunday.
The mechanism called SHIB Burn Portal enables rewards for SHIB token holders that contribute to reducing SHIB’s circulating supply by burning them.
Token burning refers to the process when tokens are transferred to the dedicated dead wallet from which they can not be retrieved and are considered lost forever. It is a common way in the cryptocurrency space how to reduce the circulating supply and thus increase the scarcity of a project.
As SHIB developers say, the scarcity can increase the price of the tokens, benefiting investors in the long-term and contributing to the growth of SHIB’s 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.
Offers Passive Income for Burning SHIB
SHIB token burning is not a new concept for the community, which has been participating in reducing the SHIB’s supply for some time already. However, this is the first time ever that Shiba Inu devs offered official rewards for 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 here is an Ethereum-based DeFi project that aims to support the growth of the Shiba Inu ecosystem. It also is one of the SHIB Burn Portal creators.
Billions SHIB Burned in 24 Hours
According to the developers, over 8 billion SHIB tokens were burned during the first 24 hours since the new burn mechanism was launched.
As of today, token burners report more than 10 billion SHIB tokens to be locked forever. The massive wave of contribution towards reducing the SHIB’s supply has been as well seen on Shibburn.com burn tracking website, which went down on Sunday due to the heavy traffic. The website is still unavailable at the time of publishing. The circulating supply of Shiba Inu (SHIB) currently amounts to 549,146,987,315,505 tokens.
In the meantime, the crypto market reacted positively to the Burn Portal launch news. The SHIB price jumped up by more than 5% on Monday, increasing from $0.00002252 to $0.00002370 in a few hours.
SHIB price has been on the downtrend since April 12th, when it suddenly peaked over 27% to $0.00002817 in a single day after the news came out on Shiba Inu launching its metaverse land sale and also being added to payment app Robinhood.