Shiba Inu Coin Burn: How does it work?
Shiba Inu’s name features among the most prominent meme coins. In the bullish market of late 2021, the coin made notable gains and expanded its SHIBArmy. But amidst the recent crypto winter, the token is struggling to sustain itself.
To keep the Shibaverse coin afloat, its developers are working to intensify the burning process. It is used by many other digital tokens to increase a coin’s worth by limiting its supply. For this reason, SHIB developers have also set up a Shiba Inu Coin burn portal that runs on a reward system.
Here’s everything you need to know about SHIB burning!
The Shiba Inu Coin burn mechanism
Coin burning is a standard procedure through which cryptocurrencies can remove tokens from the market to increase the price. The Shiba Inu token also uses a similar strategy to sustain its price. It has a decentralised exchange (DEX), ShibaSwap, which has recently introduced a burn portal. Through the ShibaSwap burn portal, you can easily eliminate tokens and get incentives.
How does SHIB burn Portal work?
The SHIB burning portal has three null wallet options. Among them, two are dead wallets, and one is a black hole wallet. First is the most commonly used dead wallet, which Vitalik Buterin also used to burn $6.7 billion tokens. The second one is for ShibaSwap listings. Whereas the Black Hole is for Shiboshi NFTs renaming.
To burn Shiba tokens, you have to transfer them to a dead wallet. A dead wallet, aka a burning wallet, does not have a private key. So, sending your tokens to such a wallet makes them unretrievable and instantly wipes them off the market.
The portal will give you burntSHIB tokens as incentives as you burn.
Shiba Inu Coin burning reward system
The ShibBurn portal can give you RYOSHI tokens as rewards. However, burning SHIB would not directly yield RYOSHIs. Instead, at first, it will provide you with burntSHIB tokens. After that, you can stake these tokens in your Ethereum wallets to get RYOSHI token rewards. The yield on your burntSHIB holdings can be up to 19%.
What’s the Shiba Inu Coin burn rate?
The Shiba Inu Coin burn portal was introduced in April this year. Since then, the SHIB Army has successfully removed more than 59 billion tokens from the circulating supply. Despite that, the current burn rate of the coin is -68.59%. Also, its price has not increased as much as the community and developers expected.
Contrastively, as of the end of the first half of 2022, around 70 billion SHIBs have been burned. So far, the highest amount of coins has been burnt in May.
What lies ahead for Shiba Inu?
Despite having a distinguished burning portal, Shiba Inu’s price has not recovered yet. SHIB’s current price is only $0.00001078, with a market cap of $5,920,266,602. As per the SHIBQueenie estimates, for its price to even reach the $0.001 mark, over 88 trillion coins need to be burnt annually for six years.
However, this will remove over 90% of the tokens and might not get the desired result as its hype declines. So, a coin burn might not be the only solution for its revival. That’s why the developers need to work on more projects like Shibarium and Shiba Inu Metaverse.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.