In yet another strategy to reduce the amount of SHIB tokens in circulation and consequently try to boost the price of the token, the team behind memecoin Shiba Inu announced a new burn and reward platform.
The idea of the system is to decrease the supply of SHIB while at the same time rewarding holders with a yield-generating token.
The platform, which was named Shib Burning Portal, was officially launched last weekend.
This Monday (25), the team announced on its Twitter account that more than 8 billion tokens had already been burned in the first 24 hours. At the time of writing, over 12 million SHIB have already been burned.
In the first 24 hours over 8 BILLION $SHIB was burned through the SHIB Burn Portal!
— Shib (@Shibtoken) April 25, 2022
Burning SHIB tokens
As the system description highlights, the burn portal is set to make it rewarding for users to burn SHIB regularly while effectively reducing their circulating supply.
Burning SHIB means taking cryptocurrencies out of circulation forever. With the supply dwindling, the token price is expected to rise.
In the burn process, digital assets are transferred to a “write” address. That is, a wallet from which they cannot be recovered. In other words, once a token is sent to this address, it’s gone forever.
“A burned cryptocurrency has a reduced supply, making tokens more scarce. Scarcity can increase the price of tokens, benefiting investors, but it is not always guaranteed.”
The website also says that the expectation is that with each burning, the wealth of the community will grow.
Rewards for SHIB Owners
According to the Shiba Inu team, the burn portal was built in collaboration with the creators of RYOSHIS VISION, an ERC-20 standard token that attempts to boost the Shiba ecosystem, while giving back to the Shib community.
The portal will reward SHIB burners with passive income recognition in the form of RYOSHI Rewards tokens.
This means that 0.49% of all RYOSHI transactions will be distributed to the owners of burntSHIB tokens.
According to the developers, the portal was built with a fully flexible and extensible system. In this sense, the project invites any and all tokens that want to offer rewards for those who choose to burn their SHIB tokens.
“In other words, we are proud to announce that any project can use the Shiba Burn Smart Contract to create a ‘BURN Pool’ and offer rewards for burning $SHIB tokens.”