Key takeaways:
- SHIB Burn Portal has been launched to systematically increase the scarcity of the memecoin
- The Shiba Inu team announced that over 8 billion tokens have been forever removed from circulation in the first 24 hours since the portal went live
- SHIB burns will put deflationary pressure on the popular meme token, which could have positive effects on its price
SHIB burning introduces deflationary pressure by making tokens scarcer
The Shiba Inu team has announced the launch of the SHIB Burn Portal, which is designed to reward memecoin holders for reducing the memecoin’s circulating supply. According to the announcement, the team’s hope is to grow the “wealth of the community” by making SHIB tokens scarcer over time.
“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.”
The process of burning essentially removes tokens from circulation by sending them to a so-called “dead wallet”, making them forever unretrievable. The newly-launched portal has been built in collaboration with Ryioshis Vision (RYOSHI), a project looking to boost the growth of the broader Shiba Inu ecosystem. Per the statement, 0.49% of all RYOSHI transactions will be distributed to users who have burned SHIB.
According to a Twitter post shared by the Shiba Inu team, more than 8 billion SHIB was burned in the first 24 hours since the portal went live.
Several popular digital assets have incorporated deflationary mechanics in recent months. Ethereum (ETH), for instance, introduced real-time ETH burns via EIP-1599 that launched as a part of the London Hard fork last summer. Similar to what the Ethereum team had done, Binance launched real-time BNB burning in December with the aim of reducing the supply of BNB and revamping how gas fees are collected by the validators.
The price of SHIB has barely budged on the news of the launch of a dedicated token burn portal. SHIB is currently trading at $0.000023, down less than 2% in the last 24 hours.
