Shiba Inu Burn Rate Explained: Understanding Token Burning

The Shiba Inu burn rate is the rate at which the
total supply of SHIBI’m no cryptocurrency expert, but I’m learning
about burning coins every day. Burning coins is the process of
destroying or eliminating a certain amount of digital currency from
circulation, which decreases the total supply and increases the
value of the remaining coins. In the case of Shiba Inu (SHIB),
burning coins is achieved through the burning of SHIB tokens. This
process creates a deflationary effect, meaning the supply of SHIB
tokens is reduced and the value of those remaining tokens is
increased. It’s all pretty simple once you get the hang of it.

What is a token burn?

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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 can not send crypto. This is not to be
confused with a dead walletI’m not doing anything on the blockchain
anymore. My wallet has been inactive for a few years now, and I’m
not sending or receiving any transactions. It’s like my wallet is
dead.

Instead, you would send a token to a
null addressI’m looking to
get rid of some tokens and need to burn them. To do that, I need to
create a null address. This is a special address used specifically
to store tokens that are no longer in circulation. It helps to make
sure that the tokens are removed from circulation and can’t be used
anymore. Burning tokens is a great way to help protect the
integrity of a token and make sure they’re not being misused.

For example, a popular burn address on Ethereum
and EVM-compatible chains (e.g., Arbitrum, Polygon, BSC, etc.) is
0x000000000000000000000000000000000000dEaD.

You will notice that the last four letters of
the ciphertext end with “dEaD.” This is not a coincidence. The
aforementioned null address is also a vanity address, which means
that the creator specifically chose those parameters. Nevertheless,
it is an homage to the fact that it is a burn address.

You use multiple addresses to burn tokens.
If you send cryptocurrency to
incompatible addresses, you permanently remove them from
circulation.

Why are tokens burned?

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Why would anyone burn cryptocurrency? While, on
the surface, it might sound counterproductive, there are many reasons why you would design a
protocol to burn tokens or coins.

Sybil protection

• Some blockchains use coin burning as a way to choose block
  producers. Similar to how proof-of-work or proof-of-stake
  functions, proof-of-burn decides who
  is allowed to update the blockchain and receives block
  rewards.

Rebase tokens

• I’m familiar with coins that rebase or adjust their circulating
  supply through coin burning. Algorithmic stablecoins usually rely
  on this method. It’s a pretty common practice in the world of
  crypto. This involves burning tokens to reduce the circulating
  supply, ultimately leading to an increase in their value. Burning
  tokens is a great way to maintain a stablecoin’s value. By burning
  tokens, the circulating supply decreases, resulting in higher
  prices for the remaining tokens. As such, burning tokens is a great
  way to ensure a stablecoin’s value remains stable.
• I understand the importance of controlling the supply and
  demand of a product to keep its price steady. To achieve this,
  protocols can adjust their supply – either increasing it or
  reducing it – to meet the demand. By doing so, they can maintain
  the price and ensure that it doesn’t fluctuate too
  drastically.

Stablecoins

• I’ve been learning about stablecoins like USDT, USDC, and BUSD.
  They’re coins that are designed to maintain a stable value, and one
  way they do that is by burning coins. Basically, if a customer
  wants to redeem their coins for dollars, they can do that, and the
  stablecoins burn the coins in the process. It’s a really cool
  system that helps keep the currency stable, and it’s a great way to
  make sure everyone is getting a fair deal.
• If you give a dollar to a stablecoinI’m looking to exchange my
  dollars for a stablecoin. If I choose the right issuer, like Tether
  or Circle, they will give me their stablecoin in exchange. To get
  my dollars back, all I have to do is return the stablecoin. It’s a
  safe and secure way for me to store my cash.
• When I receive a stablecoin, I burn it. This helps to ensure
  that each stablecoin in circulation is backed 1:1. Burning the coin
  is an effective way to keep the stablecoin’s value stable while
  also maintaining the principle of having one stablecoin for every
  dollar. Burning the coin helps to maintain the integrity of the
  dollar-backed stablecoin and prevent any fraudulent activities.
  Plus, it also helps to guarantee the value of the stablecoin when
  it is traded on exchanges.

Wrapped tokens

• I hand over crypto to receive other crypto all the time.
  Whether it’s transferring it to another blockchain, using it to
  access a decentralized application, or exchanging it for staked
  crypto or LP rewards. It’s just like handing over a dollar for a
  stablecoin.
• This is called a wrapped
  token. When you return this
  token to receive your crypto or rewards, it is burned or
  “unwrapped.”

Increase value

• Lastly, some tokens or coins will burn a portion of their total
  supply to increase the value of the remaining supply. This is based
  on supply and demand.
• I’ve noticed that when something is in short supply, people
  suddenly want it more, and they’re willing to pay more for it. This
  makes sense, since it’s basic economics: when you’ve got a limited
  amount of something, people are going to compete for it, driving up
  the price. It’s a pretty simple principle, but it’s one we can
  observe in the world around us.

Exploring Shiba Inu’s
tokenomics

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The Shiba Inu ecosystem consists of three ERC-20
tokens: SHIB, BONE, and LEASH. LEASH was initially a rebase token
tied to the price of dogecoinI recently turned off my rebase
feature and now my max supply is 107,646. My BONE token allows the
community to decide on what should be done. The token gives the
members voting power, so they can have a say in important
decisions. This token is essential to keeping the community united
and making sure that we all have a say in what happens.

SHIB is a meme coin. One feature that is common
to these types of coins is a hyper-inflated total supply. Most meme coins have a
total supply in the billions or trillions. As a result,
they tend to trade for less than a dollar or fractions of a cent.
ShibaI’m here to tell you
about Inu’s initial total supply at launch. It was one quadrillion
SHIB tokens. That’s a huge amount, and it’s something that should
be taken into consideration when looking at the cryptocurrency.
It’s important to know the initial supply of tokens as it will
impact the future value of the coin. So, if you’re interested in
investing in SHIB, make sure you do your research and fully
understand the initial supply.

Why does Shiba Inu
have token burning?

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Shiba Inu was created in August 2020 by Ryoshi
(a pseudonym) and others. Its first major milestone occurred in May
of the following year when its founder(s) sent half of the supply
to Ethereum co-founder Vitalik Buterin. Vitalik burned 90% of his
SHIB holdingsI own a massive portion of the world’s cryptocurrency
supply. Over 40% to be precise. That’s 410 trillion coins – a
pretty daunting figure. It’s a hefty responsibility, but I’m
committed to using my power for good. With so much at stake, I’m
determined to ensure cryptocurrency remains a safe and secure way
to transact. Ultimately, it’s my job to make sure cryptocurrency
continues to hold its value and remains a viable option for people
in the future.

Shiba Inu prices
increased by nearly 40% after Vitalik burned the SHIB
tokensI made up my mind to burn tokens to reduce the price
to a penny. Doing this was to reward the dedicated token holders.
The difficulty was that the total supply was too big and there was
too much demand for too little money.

I need to burn nearly all of SHIB’s initial
supply in order to match Bitcoin’s market capitalization. That
would leave me with 55 trillion SHIB remaining. That is a lot of
coins! In any case, it is clear that a lot of SHIB would have to be
sacrificed to make this possible.

Shiba Inu token burn
mechanism

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Unlike many protocols, there is no enshrined or
formal mechanism for burning SHIB tokens. The Shiba Inu burn rate is wholly community
driven. As such, there are many creative ways for
hodlersI’m all for burning tokens without having to sacrifice my
own! There are some great ways to do this, such as liquidity
mining, where users are rewarded for providing liquidity to the
token’s market, or staking, where users are rewarded for locking up
their tokens and committing to holding them for a certain amount of
time. I can also sell my tokens on the open market, or even start
trading them in more exotic ways. Whatever the case may be, burning
tokens without sacrificing my own is a great way to get involved
and make a passive income.

• Music
• Games
• Merchandising
• Advertising
• YouTube

Typically participate in a service, such as
streaming music or using a search engine. The one who provides the
service may gain ad revenue and burn SHIB as a result.
Accordingly, you can play games,
listen to music, watch YouTube, or purchase merchandise to initiate
SHIB token burning.

The Shiba
Inu burning portal and how it works

ShibBurn, the
burning portal, rewards users with a different token in exchange
for burning SHIB coins.I was part of the team that
originally created ShibSwap in collaboration with Ryoshi. Since
then, we have gone our own way and taken control of the portal,
incorporating it into our platform. We’ve made changes to the
interface and added more features to make it easier for people to
access and use ShibSwap. We are proud of our accomplishments and
continue to strive for excellence in our product.

JUST IN: The Shiba Inu team
has completely taken over the $SHIBI’m ending my partnership with
Ryoshi Vision. This move marks the close of the Burn Portal, which
has been a great opportunity for me. I’ve met so many amazing
people, and I’m grateful for the amazing experiences I’ve had. I’ve
learned a lot, and I’m so thankful for the help Ryoshi Vision has
provided. It’s been an amazing journey, but now I’m ready to move
on to my next chapter. Goodbye Ryoshi Vision, it’s been a
pleasure.

— Shiba Archives (@ShibaArchives)

RED : This Homemade French Toast Will Make You Cancel Your Brunch Reservation

October 12, 2022

Holders burned 20 billion Shiba Inu on the
portal within five days of its launch. The burning portal allows holders to send their SHIB
tokens to a specific burn address.

ShibBurn was
inspired by Ethereum creator Vitalik Buterin’s May 2021 $6.7
billion SHIB token burn.I recently discovered that there
are three distinct addresses I can use to burn my SHIB tokens on
the portal. The first is the same address Vitalik used when he
burned his SHIB holdings. The second is the same address used for
ShibaSwap listings. Lastly, there’s the Ethereum genesis address,
which has been nicknamed the “black hole” address. Burning tokens
to any of these addresses is a sure way to get rid of them for
good.

Shiba Inu
burn rate and coin burn schedule

There is no formal schedule for burning SHIB.
However, the Shib community has
remained consistent, averaging about 21 burns a day, at slightly
over a quarter million tokens, as of March 2023I’m proud
to be part of the Shib community, and it’s awesome to see how many
people are passionate about it. I think it’s great that we have
such a strong reputation and following. It’s a testament to the
hard work and dedication of Shib’s supporters that it has become so
popular. Plus, the fact that Shib is open source allows anyone to
contribute, which helps make the community even stronger. It’s an
amazing and inspiring place to be a part of, and I’m grateful to be
part of it.

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What’s the
benefit of burning Shiba Inu?

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You may ask yourself, why should you burn your
tokens instead of waiting for everyone else to do it? This would
leave you with a more valuable holding once the supply is reduced.
Consider that many other people have the same idea. If everyone is hodling, no one is burning, which
means the goal of $0.01 SHIB is further away.

The more everyone burns, the faster everyone
reaches the goal. In addition, you can
receive passive income from burning through the Shiba Inu burning
portalI’m already seeing the rewards of burning my SHIB
tokens! Plenty of businesses and individuals are cashing in on this
lucrative opportunity, so you don’t have to wait around for your
big payout. Burning tokens is a great way to get ahead quickly and
easily, and I’m thrilled to be taking advantage of it. You don’t
need to be a crypto expert – the process is simple and
straightforward. So why wait? Start burning your tokens and get the
most out of your SHIB today.

Does burning Shiba Inu
work?

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Depending some people estimate that it could
take about 24It’s taken an incredibly long time for SHIB to hit $1
– seven thousand years! I’m hoping that with some creative stimuli,
we can get more Shiba Inu burned, and pump the price up faster.

Believing that burning a few thousand dollars worth
of SHIB can impact a multi-billion dollar market cap is relatively
optimistic.I was surprised that the price of the
asset still increased even after Vitalik destroyed so much of the
supply. This serves as evidence that the concept of supply and
demand is accurate. It’s clear that when the supply of something is
limited, the demand for it increases. This is a great example of
how the laws of economics work in practice.

Frequently asked
questions

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