Wondering how does SHIB burn happen and what it means for your Shiba Inu tokens? You're not alone! The burning mechanism is a crucial part of the Shiba Inu ecosystem, designed to reduce the circulating supply and potentially increase the value of remaining tokens. Let's dive into the details.
What is SHIB Burning?
Simply put, you burn a coin or token when you remove it from circulation permanently. This is done by sending coins or tokens to an address that can receive but cannot send crypto. This is not to be confused with a dead wallet. Dead wallets are inactive for multiple years and do not send or receive.
How Does SHIB Burning Actually Work?
SHIB burning is done through two main ways: manual and automatic burning. Manual burning is done by sending tokens to the burning address. Meanwhile, automatic burning is integrated within various aspects of the Shiba Inu ecosystem.
Shibarium and the SHIB Burn: The ShibTorch
Shibarium's Burn Hardfork implements the EIP-1559 features and enables our own burning mechanism: ShibTorch. It works as an interactive dashboard where the Shiba Inu community can track and participate in the burn process. This is a significant step towards a more transparent and community-driven burning strategy.
Why Burn SHIB?
The primary reason for burning SHIB is to reduce the overall supply. With a smaller supply, the remaining tokens may become more valuable due to increased scarcity, assuming demand remains constant or increases.
The Impact of SHIB Burns
While SHIB burns are intended to benefit the holders, it's important to understand the scale. In addition, Shiba Inu has a circulating supply of 549 trillion tokens. Removing 1 billion tokens from circulation from a pile of 549 trillion tokens is less than 1% of the burns. If it seems like a small amount in relation to the total supply, remember that consistent and substantial burns over time are necessary to make a significant impact.
Stay Informed About SHIB Burns
Keep an eye on official Shiba Inu channels and reputable crypto news sources to stay informed about upcoming and completed SHIB burns. Understanding the burn mechanics is crucial for anyone investing in or following the Shiba Inu project.