The developers behind the meme-inspired cryptocurrency announced the development of a burn portal earlier this year, claiming that it would make it easier for users of Shiba Inu’s decentralised exchange ShibaSwap to burn SHIB on a regular basis and so lower circulating supply.
At the time, Shiba Inu team member Archangel stated that the SHIBArmy should be realistic about the cryptocurrency’s burning mechanism and should not anticipate that 90% of the cryptocurrency’s circulating supply will be burned. Notably, almost 41% of the total supply of the cryptocurrency has already been burnt.
The burn portal went live on April 23 and offers token rewards to those who burn tokens.
We are excited to announce the launch of the SHIB burn portal.
Burn $SHIB to generate passive income!https://t.co/jSnPG8B3x7 pic.twitter.com/E2ZYxEyP16
— Shib (@Shibtoken) April 23, 2022
It’s worth noting that burning tokens permanently removes them from circulation by sending them to a wallet from which they can never be recovered. Projects frequently burn tokens to reduce circulating supply, which, if met with similar or increasing demand, may result in a price increase for the token.
The SHIB community has removed 263 billion tokens from circulation between October 2021 and March 2022. The burn portal rewards users who burn tokens with “burntSHIB” tokens that can be staked to earn RYOSHI tokens, a different currency in the SHIB ecosystem.
At the time of writing, the community had burned slightly more than 16 billion SHIB tokens, with those who burned earnings an APR of 5.42%, according to the platform.
The 16 billion SHIB that have been burnt are worth roughly $400,000. SHIB’s price has increased by approximately 6% in the recent 24-hour period, in line with a general recovery in the cryptocurrency market. According to CryptoCompare data, BTC is up 5%, while ETH is up a little more than 6%.
