Shiba Inu Burn Portal is one of the many developments by the team behind the Shiba ecosystem. It aims to reduce the huge one quadrillion total supply of Shiba Inu tokens and improve the wealth of its community. 

We will walk you through what Shiba Inu Burn Portal is and how it can improve the wealth of the community in this article. If you are curious to know whether the SHIB price will increase in the future, keep reading. 

What is Shiba Inu Burn Portal?

The Shiba team has launched a Shiba Inu Burn Portal to decrease the circulating supply of its tokens in April 2022. So far, holders have burnt more than 410 trillion SHIB tokens from the total supply, as per ShibBurn. In exchange for burning the tokens, investors will get rewards in the form of another yield-generating token called RYOSHI. 

The Shiba Inu burn portal enables SHIB token holders to burn a partial or total number of their tokens to contribute to the token’s scarcity. Burning tokens implies sending those tokens to an isolated address from which we cannot retrieve them again. 

In May 2021, Shiba Inu made headlines when one of its creators named Ryoshi sent half of the total supply to Ethereum’s co-founder Vitalik Buterin. Vitalik burned 90% of his SHIB holdings and donated the remaining tokens to the COVID-19 relief fund. The burned tokens were worth $6 billion and accounted for over 410 trillion SHIB tokens.

Following the initial SHIB token burn, the token price increased by over 40%. The popularity of the meme coin skyrocketed along with its price. As a result, the Shiba Inu community, also known as the Shib Army has decided to burn the tokens to inflate its price. The developers also mentioned in a blog post that they hope the wealth of the community grows with every burn. 

Shiba Inu Burn Rate Explained

Burning of SHIB tokens does not have a particular schedule. And, the Shiba Inu burn rate completely depends on its community members. As of June 2023, the burn rate has increased by a significant 7000%, which resulted in a 10% increase in its market cap. According to Shiba Burn Tracker, more than 785 million tokens were burned in June 2023 with around 4 average burns per day. 

2 Major Benefits of Shiba Inu Burning

Shiba Inu Burn Portal will provide holders with 2 major benefits for burning SHIB tokens. Let us discuss them here. 

Long Term Price Appreciation

The burning of tokens is directly related to the decrease in its circulating supply. As the scarcity of the SHIB token increases and the demand is also on the rise, theoretically its value would increase in the long term. The Shib community has first witnessed this when Vitalik burned 90% of his SHIB holdings. 

Though it’s not always guaranteed, reduced supply and increased scarcity can benefit investors with long-term price appreciation. 

RYOSHI Token Rewards

You might wonder why would you burn your tokens. When everyone else burns their tokens, you can benefit when the price of the remaining tokens increases. However, what if we said that you get rewards for burning the SHIB tokens? 

The Shib team has launched the Burn Portal in collaboration with RYOSHI, an ERC-20 token. If you burn your SHIB tokens, you will get burntSHIB tokens. You can claim your RYOSHI tokens rewards using these tokens. 

Developers estimated that around 0.49% of RYOSHI tokens will be rewarded to the users who burn their SHIB and accumulate burntSHIB tokens. The obvious benefit of burning tokens is reduced supply and possible price appreciation. But, holders can also benefit from receiving RYOSHI token rewards for burning their tokens. 

Does Shiba Inu Burning Increase its Value?

After witnessing the SHIB token’s price rise following Vitalik’s SHIB token burn, the community believes that burning SHIB tokens will increase the token value. But, the initial supply of SHIB tokens is 1 quadrillion, which is too huge. It might take a few years for the token price to witness a considerable rise in its value. 

The price of SHIB is $0.000008347 as of June 2023, according to Coinmarketcap. As per the estimation by Shiba Burn Tracker, for one SHIB token to reach $0.01, the maximum circulating supply should be over 52 trillion. For that to happen, the Shib community must burn 91.07% of the actual circulating supply. 

Conclusion

While the concept of burning SHIB tokens holds the potential for its value to increase in the long term, it might take several years. Despite the supply, demand, and price metrics, the meme coin has a strong community of followers in crypto. With future developments, the Shib ecosystem is likely to strengthen its roots in the crypto industry. 

FAQs

What is Shiba Inu Burn Portal?

Shiba Inu Burn Portal was started to reduce the huge 1 quadrillion supply of SHIB tokens to increase the wealth of the holders. Users can get RYOSHI tokens as a reward for burning SHIB tokens and contributing to the community.

How much Shiba Inu has been burned?

As of June 2023, more than 410 trillion Shiba Inu (SHIB) tokens were burned according to the Shiba Inu Burn Portal. A new burn mechanism was to burn Shiba Inu tokens every time a transaction takes place on the network.

How many SHIBs are burned daily?

According to Shiba Burn Tracker, on average, around 45,000 SHIB tokens are burned in June 2023. There is no particular schedule for burning SHIB. So, this data varies and depends on the community’s choice to burn tokens.