In this article, you will learn how does Shiba Inu coin burn work. Shiba Inu is the second most valuable meme coin by market cap, second only to Dogecoin. Launched only in 2020. the token has seen its popularity and value soar. SHIB is known for its high supply, which started at one quadrillion tokens. Over the years, that supply has gradually reduced due to the Shiba Inu coin burn. In two years, more than 410 trillion tokens have been burnt.
How does Shiba Inu Coin Burn Work?
Shiba Inu coin burn works by removing a portion of the Shiba Inu cryptocurrency from circulation in order to reduce the total supply of coins. This is achieved by sending Shiba Inu tokens to an address with no known private key, which makes the tokens permanently unspendable and effectively removes them from circulation.
The Shiba Inu project has implemented a series of coin burns to reduce the supply of tokens in circulation. The first burn occurred in June 2021. when 50% of the total supply of Shiba Inu tokens was sent to an address with no known private key. This effectively removed 50% of the tokens from circulation.
Since then, the Shiba Inu project has continued to conduct periodic coin burns, which involve sending a percentage of the transaction fees generated on the Shiba Inu network to the same unspendable address. The amount of tokens burned in each transaction varies, depending on the size of the transaction fee and the percentage of the fee that is designated for burning.
The goal of the coin burn mechanism is to create a deflationary effect on the Shiba Inu token, which can potentially increase the value of each individual token over time. By reducing the total supply of tokens, the project aims to create scarcity and increase demand, Which can drive up the price of Shiba Inu tokens.
It's worth noting that coin burns are just one mechanism that the Shiba Inu project uses to manage its token supply and promote price stability. As with any cryptocurrency, the value of Shiba Inu tokens is subject to market fluctuations and can be influenced by a variety of factors.
When did Shiba Inu Start Coin Burning?
The token burn was not initially included in the Shiba Inu whitepaper, WoofPaper. This means it was not something that was planned from the very beginning. The first major Shiba Inu burn happened in June 2021 when Vitalik Buterin, who was given a large amount of SHIB when the token launched, burned 41% of the Shiba Inu supply.
Of the one quadrillion token created, Buterin got 50% as a gift from Shiba Inu creator, Ryoshi. He sold about 9% to raise money for a fund tackling the COVID pandemic in India and then sent the rest to a dead wallet. That move alone dropped Shiba Inu circulating supply by almost half, and it also made the token more popular.
Since then, the Shiba Inu community has been particular about SHIB burning. On April 23. 2022. the developers of Shiba Inu finally launched the Shib burn portal. However, there is still no Shiba Inu coin burn scheduled, which means that the amount of Shiba Inu burned within a month continues to vary.
Bottom Line
Shiba Inu developers also have several plans that will allow more SHIB to be burned. This includes the Shiba Inu Metaverse, where landowners will burn SHIB when they rename their property. This article is about how does Shiba Inu coin burn work.
