Many coins have burning mechanisms. In other words, they take coins out of circulation. Coins with infinite supplies have this, like Ethereum. This makes Ethereum deflationary. Furthermore, coins with finite supplies have this. Like Shiba Inu.
It also makes them deflationary. The idea is that this has a positive effect on the price. So, let’s have a look how this works for Shiba Inu.
#SHIBARMY… there will be burns from the game period. Upcoming details will explain why #ShibaEternity is powerful, challenging, great for Shib, Shiboshi holders, and Shibarium once the blockchain version is released. The real question is where will you be on #downloadday ? pic.twitter.com/duUBent2oH
— Shytoshi Kusama™ (@ShytoshiKusama) September 17, 2022
What Is the Shiba Inu Coin Burn Mechanism?
The Shiba Inu burn mechanism burns Shiba Inu coins. You can do this by sending coins to a so-called “dead wallet.” You can send assets, but you can’t retrieve them from this wallet. Shiba Inu uses two such wallets. They also use a “Black Hole.” This is the Genesis address. See the picture below.
However, the Shib community also burns their coins. They already burned 10 billion SHIB. Vitalik Buterin made the biggest burn. He received 50% of all SHIB tokens in 2021. A total of 500 trillion SHIB. He burned 410.24 trillion SHIB. The rest he donated to charity. So, besides Vitalik’s share, the Shib Army burned another 180 billion SHIB.
The idea behind this mechanism is that the max supply becomes scarce. As a result, the coin should see a positive price development. For example, the BNB and ETH coins also have regular burn events.
Currently, SHIB owners who burn their coins get a reward. They receive “burntSHIB” tokens. They can also stake these tokens and the reward is in Ryoshi tokens. This is a token that the Shib community created. This new mechanism launched on April 23, 2022. The Shib Army burnt 20 billion SHIB in just five days.
What Is the Shiba Inu Coin Burn Schedule?
The current burn rate stands at -58%. This is in stark contrast to September, when burn rates were between 750% and 1000%. See the picture below.
As such, there’s no fixed burn schedule. Some bigger SHIB whales occasionally hold burning events. However, there’s no regular schedule. They burn SHIB during events like games or burn parties. Each month, the amount of burned SHIB changes. In May 2022, holders burnt 30 billion SHIB. However, the SHIB price kept dropping. As a result, less SHIB got burned each month.
This also shows the downside of the burning mechanism. Burning coins in of itself is no guarantee for a price increase. It appears that the Shib Army burns more when the market is bullish and less when it is bearish.
Where Can You See the See Shiba Inu Coin Burn?
There’s a special website that shows all burned SHIB. It’s the shibburn.com page. So, it keeps track of:
- Daily SHIB burns
- SHIB price, market cap, and volume
- The current supply
- Burn rate
Near the top of the page, it also shows you in a graph where all SHIB tokens are. In circulation or burned. That’s the first picture we used in this article.
In the past 24 hours, there have been a total of 40,128,196 $SHIB tokens burned and 3 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. #shibarmy
— Shibburn (@shibburn) November 8, 2022
What Is the Shiba Inu Coin Burn Tracker
The Shiba Burn Tracker shows many details about the SHIB burn. It has a similar function as the Shibburn page. On the Shiba Burn Tracker site, you can find the following info.
- SHIB created and burned
- Last SHIB burns
- How to burn SHIB
- Statistics over the last 30 days of SHIB burns
- Summary of burns
See the picture below. It shows part of the Shiba Burn Tracker site.
Source: Shiba Inu burn tracker
Conclusion
We answered four popular questions about the Shiba Inu burn mechanism.
The current price of SHIB is $0.00001094. This is almost 8% down during the last 24 hours. However, it’s still up 10.5% over the last 15 days. In one year, SHIB lost 80.8%. The market cap is $6.4 billion. There are 589 trillion SHIB in circulation. However, the max supply was one quadrillion tokens.
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