Since its decentralized exchange ShibaSwap unveiled a burn portal that rewards holders for removing SHIB from circulation, nearly $500,000 worth of the meme-inspired cryptocurrency Shiba Inu ($SHIB) has been burned by its community.
The team behind Shiba Inu’s 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, noting that it would make it easier for platform users to burn SHIB on a regular basis and reduce circulating supply.
Archangel, a member of the Shiba Inu team, said at the time that the SHIBArmy should be realistic about the cryptocurrency’s burning mechanism and not expect 90 percent of the circulating supply to be destroyed. Notably, about 41% of the cryptocurrency’s market capitalization
The burn site was launched on April 23 and has already burned approximately 23 billion SHIB.
Those 23 billion SHIB are now worth little more than $480,000, implying that nearly half a million dollars’ worth of the meme-inspired money has been destroyed thus far. It’s worth noting that burning tokens remove them from circulation forever by transferring them to a wallet from which they can never be recovered.
Burning tokens is a common practice among projects to lower circulating supply, which, if met with similar or increased demand, could result in a price increase for the token. According to public data, the SHIB community has long supported token burns, eliminating 263 billion tokens from circulation between October 2021 and March 2022.
The burn portal, on the other hand, provides “burntSHIB” tokens to users who burn tokens, which can be staked to earn RYOSHI tokens, a different token in the SHIB ecosystem.
As Welly, the world’s first restaurant with a meme-inspired cryptocurrency concept, recently announced that a portion of its income, as well as certain percentages of franchise fee revenue, will be used to burn SHIB.