The team behind one of the most popular doge-inspired meme coins – shiba inu (shib) – has launched a burning mechanism that allows holders to burn their tokens while also generating passive income. Let's see "What is burning Shiba".
What is burning Shiba?
The Shiba Inu burning portal is a functionality that enables users to send their SHIB tokens to a burn address. This is a wallet from which SHIB will no longer be retrievable, meaning that once the tokens are sent there, they can never be retrieved again – they're going to be gone forever.
This effectively introduces a mechanism that allows for a reduction of the total circulating supply, making the tokens scarcer.
This, in theory, can benefit investors – a scarce asset tends to be more preferred than one with unlimited supply or with considerable inflation rates. Of course, all of this is entirely theoretical, and there's nothing guaranteed – fixed or reducing supply doesn't 't necessarily translate to increased value, meaning that the outcome of the burning portal is yet to be seen.
SHIB burning incentives
The Shiba Burning Portal was launched in collaboration with Ryoshis Vision (RYOSHI), an ERC-20 token to support the SHIB ecosystem's growth. Users who decide to burn their SHIB tokens are given another token called burntSHIB, which pays rewards in RYOSHI tokens at a varying rate. According to the developers, 0.49% of all RYOSHI transactions will be distributed to the owners of burntSHIB tokens.
A more indirect incentive is reducing Shiba Inu's circulating supply, something that could pay off in the long term as increased scarcity may—theoretically, but not necessarily—translate into the coin's appreciation. “A scarcity can increase the price of the tokens, benefiting investors, yet it is not always guaranteed,” said the team.
Hope you can get a better understanding of "what is burning Shiba?", after reading this article.
