how are shiba inu coins burned

Shiba Inu's burning mechanism aims to reduce the token supply through manual burns, the ShibaSwap burn feature, community-led campaigns, NFT burning, and passive burns with each transaction on ShibaSwap.

Nov 06, 2024 at 05:34 pm

How Are Shiba Inu Coins Burned?

Shiba Inu (SHIB) is a decentralized cryptocurrency created in August 2020 by an anonymous person or group known as "Ryoshi." SHIB is an Ethereum-based altcoin that has gained significant popularity among cryptocurrency enthusiasts. One of the key features of SHIB is its burning mechanism, which aims to reduce the total supply of tokens and increase its value.

What is Token Burning?

Token burning is a process in which a specific number of tokens are permanently removed from circulation. This process is often used to reduce the supply of tokens, which can potentially increase the value of the remaining tokens. In the case of SHIB, there are several methods by which tokens can be burned.

Methods of Shiba Inu Coin Burning

1. Manual Burning:

   The Shiba Inu development team has periodically conducted manual burns of SHIB tokens. These burns typically involve sending a specific number of tokens to a designated "burn wallet," where they are permanently removed from circulation. Manual burns have been used to reduce the SHIB supply and increase its scarcity.

2. ShibaSwap Burn Feature:

   ShibaSwap is a decentralized exchange (DEX) created by the Shiba Inu team. The platform includes a burn feature that allows users to burn their SHIB tokens in exchange for rewards. When users burn SHIB on ShibaSwap, they receive Bone ShibaSwap (BONE) tokens, which can be used for governance and staking purposes within the ShibaSwap ecosystem.

3. Community-Initiated Burns:

   The Shiba Inu community has also played a role in burning tokens. Various individuals and groups have organized burn campaigns to reduce the SHIB supply. These campaigns have been successful in burning a significant number of tokens and raising awareness of the burning mechanism.

4. NFT Burning:

   The Shiba Inu team has released a series of non-fungible tokens (NFTs) that can be burned in exchange for SHIB tokens. These NFTs are collectibles that often feature artwork inspired by the Shiba Inu dog. When a user burns an NFT, they receive a specific amount of SHIB, which is then removed from the circulation supply.

5. Passive Burning:

   A passive burning mechanism was introduced with the release of Shiba Inu version 2 (SHIB2). This mechanism burns a specific percentage of SHIB tokens with each transaction that occurs on the ShibaSwap DEX. The percentage of tokens burned is determined by the burn rate, which can be adjusted by the Shiba Inu development team.

Conclusion

Token burning is an important mechanism in the Shiba Inu ecosystem that aims to reduce the total supply of tokens and increase their value. The methods discussed above provide the Shiba Inu team and the community with various ways to burn SHIB tokens and contribute to the long-term growth and sustainability of the project.