Nearly $500,000 worth of the meme-inspired cryptocurrency Shiba Inu ($SHIB) have been burned by its community ever since its decentralized exchange ShibaSwap launched a burn portal that rewards holders for removing SHIB from circulation.
The team behind the meme-inspired cryptocurrency announced the launch of a burn portal that was set to be included in a new version of Shiba Inu’s decentralized exchange ShibaSwap earlier this year, at the time noting it would make it easier for the platform’s users to regularly burn SHIB and reduce circulating supply.
At the time, Shiba Inu team member Archangel noted that the SHIBArmy should be realistic about the cryptocurrency’s burning mechanism and should not expect 90% of its circulating supply to be burned. Notably, around 41% of the cryptocurrency’s supply has already been burned.
The burn portal was launched on April 23 and so far over 23 billion SHIB have been burned.
Those 23 billion SHIB are currently worth slightly over $480,000, meaning that nearly half a million dollars worth of the meme-inspired cryptocurrency has so far been destroyed. Burning tokens, it’s worth noting, permanently removes them from circulation by sending them to a wallet from which they can never be retrieved.
Projects often burn tokens to reduce circulating supply, which if met with similar or increasing demand could lead to a rise in the token’s price. The SHIB community has long been favoring token burns, effectively removing from circulation 263 billion tokens from October 2021 to March 2022, according to available data.
The burn portal, however, sends users who burn tokens “burntSHIB” tokens, which can be staked to generate rewards in the form of RYOSHI tokens, a separate token in the SHIB ecosystem.
As CryptoGlobe reported Welly, the world’s first restaurant using the meme-inspired cryptocurrency as a theme, has recently pledged to use a share of its profits, along with specific percentages of revenue from franchise fees, to burn SHIB.
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