$SHIB’s Burning Mechanism Gets a Boost – Is Shibburn a Game-Changer for the Doge Killer?
- The Shiba Inu ($SHIB) community launched a decentralized platform, Shibburn, to contribute to the token's deflationary efforts.
- Previously, the $SHIB community introduced initiatives like purchasing tokens with the sole intention of burning them.
- Shibburn aims to increase the $SHIB value by reducing the circulatory token supply.
Last week, the community behind Dogecoin killer' Shiba Inu launched the much-anticipated Shibburn portal toreduce the number of tokens in circulation. Burning tokens typically increases a token's price as demand exceeds supply.
Introducing #ShibTorch!
The long awaited community Burn Portal is now live. Every #Shibarium L2 transaction now helps burn $SHIB, reducing the total supply.
Start burning today
https://t.co/NL6HAkE90j
- Shibarium Network (@ShibariumNet) August 16, 2024
Let's unpack how token burning works and what it means for $SHIB.
$SHIB's Deflationary StrategyToken burning involves sending crypto to a dead wallet' that no one can access. The goal is to increase the token's value by reducing the circulating supply. Some projects, like Shiba Inu, implement a deflationary mechanism where the token supply constantly decreases over time.The Shiba Inu community has been voluntarily purchasing $SHIB tokens to burn themnumerous times. Additionally, the ShibaSwap DEX burns a part of the gas fee paid on $SHIB with every transaction.
ShibTorch Burns $SHIB With Every TransactionShibburn is a community-driven platform running on Shibarium. Its core feature, ShibTorch, will burn $SHIB with every transaction on the network.
Community members can track the burning progress on a real-time dashboard. According to Shibburn, token burns occur at least once an hour, and over 410Q tokens have been removed from the initial supply to date.
The total supply of $SHIB is 999Q tokens, and the circulating supply is 589Q tokens, which means that nearly 70% of all $SHIB is now locked in dead wallets.
The Future Looks Bullish for $SHIBThe idea behind token burning is a basic supply and demand equilibrium, so Shibburn will only achieve its objective if the demand for $SHIB continues to grow.
Luckily for $SHIB holders, the token surged 75% year-to-date, proving its resilience to market turmoil.
Although the recent stock market crash caused $SHIB to dip to $0.00001108 on August 5, it has since rebounded to $0.00001442, translating into a 30% increase.
The new initiative has the potential to support $SHIB's growth, helping it reach new heights.
Closing RemarksThe launch of Shibburn and its integration with Shibarium is crucial for $SHIB's deflationary efforts. Moreover, community-driven initiatives like Shibburn highlight the importance of collective commitment for meme projects like Shiba Inu.
But will this initiative have a significant impact on $SHIB's price? We'll have to wait and see.
References- Shiba Inu Burn Rate (Shibburn)
- Shiba Inu (CoinMarketCap)
- Shibarium Network (X)
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