In April, we reported that Shiba Inu (SHIB) was preparing a system to burn tokens and rewards. Now, the team behind the popular cryptocurrency-meme has revealed that the system goes live on May 17th.
According to a tweet published on Tuesday, this will be the start date of the rewards cycle. From there, rewards will be distributed in two-week cycles.
“Here’s a quick update in regards to the Reward Cycle. Rewards will be available on May 17th, and continue every two weeks. We’re excited to see the amount of use the portal has brought for the community and building based on the ShibArmy‘s feedback.” said the team.
Reduction of offers and rewards
In late April, Shiba Inu introduced a token burning portal. Entitled shibaburn the mechanism allows holders to permanently destroy their SHIB tokens.
This is aimed at reducing circulating supply, which is the largest among the Top 20 cryptocurrencies. According to CoinMarketCap, there are over 549 trillion SHIB in circulation on the market. As a result, each unit is not worth even $0.01.
Token burns have already started since the end of April, and about 12 billion SHIBs have been burnt by the 25th. By doing the burn, users “sacrifice” their SHIB, but gain as a reward the possibility of generating passive income. And it is in this sense that the rewards system that will be launched this month works.
Burn SHIB, earn passive income
Rewards will be made available to all users who burn their SHIB through Shibaburn. The process is similar to other token burns, with users sending their SHIB to an address provided on the portal.
This address does not have a private key and cannot carry out shipping transactions. That is, by placing their SHIB there, users lose them forever. The act eliminates these tokens from the market and reduces the total supply, making SHIB more scarce.
In exchange for sending the tokens, users will receive another token called burntSHIB, which will be distributed in the same proportion as the burned SHIB. That is, if someone burns 1000 SHIB, they will receive 1000 burntSHIB in return.
BurntSHIB owners will be able to earn passive income by receiving another token, Ryoshi Rewards (RYOSHI). Whoever owns burntSHIB will receive 0.49% of all transactions made with RYOSHI. It is precisely this distribution that will start from May 17th.
“This portal was built to reward SHIB burners with a passive income recognition in the form of Ryoshi Rewards. Meaning that 0.49% of all RYOSHI transactions will be distributed to burntSHIB owners”, states the SHIB team.