Shiba Inu Owners Flock to Burn Portal With 11B Tokens Removed

SHIB valued about $251,000 have been burned in the first 24 hours of operation, data shows.

AccessTimeIconApr 25, 2022 at 11:53 a.m. UTC
Updated May 11, 2023 at 5:29 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A new burning mechanism launched by developers of Shiba Inu will reward community members who burn the protocol’s native SHIB tokens on its ShibaSwap exchange platform.

“Burning” crypto means permanently removing tokens from circulation by sending them to a wallet from which they can never be retrieved. Crypto projects may burn tokens to reduce supply, which could lead to increased prices in the future as tokens become more scarce.

While the community already burns tokens, the portal incentivizes the process for users. It allows users to send SHIB tokens to a dead wallet address and in exchange sends “burntSHIB” tokens to users.

These can then be staked to generate rewards for users in the form of RYOSHI tokens, a separate token created by the Shiba Inu community.

Some 11 billion SHIB tokens have been burned since the portal started operation on Sunday, data shows. This amounts to just over $251,000 at current prices. Participants are earning current annualized yields of 9% at writing time, data shows.

Over 11 billion SHIB have been burned. (Shiba Burn)
Over 11 billion SHIB have been burned. (Shiba Burn)

The mechanism did little to prop up SHIB prices amid a downturn in the broader market. SHIB has lost 5.3% in the past 24 hours, with most losses coming after a market-wide slide in Asian morning hours on Monday.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about