The team behind the meme-inspired cryptocurrency Shiba Inu ($SHIB) has announced the upcoming launch of a token burning portal that is set to help the cryptocurrency’s community burn tokens in an effort to reduce its circulating supply.
In an Ask Me Anything (AMA) session on social media with Watcher Guru, Shiba Inu team member Archangel noted that when a new version of the project’s decentralized exchange ShibaSwap launches, it will include a “burn portal.”
The burn portal is set to make it easier for the platform’s users to regularly burn SHIB, effectively reducing its circulating supply. Token burns are popular in the cryptocurrency space, as with demand remaining steady or rising and supply being burned, a token’s price tends to rise as it’s effectively deflationary.
During the AMA, he said:
We want to make the burn rate grow with the utilization rate of the platform. So if you think about it, this is kind of the new utility. It’s about getting the supply slowly reduced as you use the platform.
Archangel also noted that the SHIBArmy should be realistic about the cryptocurrency’s burning mechanism and should not expected 90% of its circulating supply to be burned. Notably, around 41% of the cryptocurrency’s supply has already been burned.
According to data from token burning tracking platform Shibburn, a total of 410.30 trillion SHIB have been burned since the cryptocurrency was launched. Initially, Shiba Inu has a total supply of one quadrillion tokens, but 50% of them were locked in a smart contract to provide liquidity on decentralized exchange Uniswap, while another half were sent to Ethereum co-founder Vitalik Buterin.
Buterin took a large amount of SHIB, at the time $1 billion in the cryptocurrency, and donated it to the COVID Crypto Relief Fund in India, along with significant amounts of other meme-inspired cryptoassets including Dogelon Mars.
The Ethereum co-founder then grabbed around 90% of the SHIB tokens that were donated to him and burned them in a transaction that removed over 410 trillion SHIB from circulation. The Shiba Inu community has since bolstered its efforts to burn SHIB. These include burn parties organized by Bigger Entertainment and companies using part of their profits to burn tokens.
The burn portal annoncement came as Shiba Inu’s developers revealed they plan to release 99,000 plots of land in the Shiberse, the cryptocurrency’s upcoming Metaverse. 35,000 of those plots will be sold to $LEASH token holders.
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