SHIBA Inu (SHIB) developers have released a burning portal meaning holders can now permanently destroy their tokens, reducing the circulating supply.
Hosted on ShibaSwap, the new Shiba Inu Burn Portal allows holders of SHIB to send their tokens to a dead wallet address and take it out of circulation.
This is a wallet where the token can’t be retrieved, meaning once a token is sent there, it’s gone forever.
This process reduces the total circulating supply which in turn should make each token more valuable.
In theory this benefits investors as an asset in short supply is preferred over one with unlimited supply.
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Reducing the supply doesn’t always translate into an increased value, however.
Shiba Inu’s developers decision to launch the burning portal is partially down to the SHIB community.
The Shiba Inu website says: “The Shiba Inu Community, or as commonly known and nicknamed The Shib Army has been quite vocal and providing ongoing feedback that would relate to creating a systematic method in which scarcity can increase, while pushing the potential to grow the communities wealth in their investment.”
But what’s in it for current SHIB holders?
To reward users who burn their tokens, they will receive a token called burntSHIB.
The owners of burntSHIB will receive rewards in RYOSHI tokens.
A total of 0.49 per cent of all RYOSHI transactions will be distributed to the owners of burntSHIB tokens.
The Shiba Inu team said: “Our hope is that with every burn, the wealth of the community grows, but also by rewarding the effort in the long term to make Shiba Inu one of the best digital assets in the history of cryptocurrencies.”
Over 350 million SHIB was destroyed through the burn portal just an hour after its launch.
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