#SHIBAINU ($SHIB ), a meme-inspired digital currency, has received significant attention in recent weeks, primarily due to a significant increase in the number of #shiba⚡ tokens being sent to burn. The Shiba Inu burn rate is increasing by 500% daily, a phenomenon that has intrigued many crypto enthusiasts and investors.
Shiba Inu, a project that began in August 2020 with a massive supply of one quadrillion SHIB, has now burned more than 41% of its original total, according to SHIB's Shibburn burn tracker. It is noteworthy that in the past week, which has just ended, more than half a billion Shiba Inu coins were burned.
As the SHIB community becomes more passionate about this development, it becomes necessary to learn the intricacies of the Shiba Inu burning process. This feature article will take a detailed look at the SHIB burning mechanism, Shiba Inu burning rate, Shib burning tracker, and the impact on the overall SHIB ecosystem.
What is crypto token burning?
A cryptocurrency “burn” is a process in which a certain number of tokens or coins are permanently removed from circulation. This is done by sending tokens to a “burn address” from which they cannot be used or retrieved, effectively reducing the supply of tokens. For the uninitiated, a write address means a wallet address without a known private key that is not owned or accessible by anyone.
Why are tokens burned?
There are several reasons why cryptocurrency projects engage in this seemingly counter-intuitive act of destroying their own tokens, each with their own unique purpose:
Burning tokens can lead to a shortage of tokens, increasing the rarity of the remaining tokens.
Token burning can help maintain a stable and predictable rate of inflation.
Burning tokens can increase demand, potentially increasing the value of remaining tokens.
How does SHIB combustion work?
The Shiba Inu burning mechanism, SHIB burning, simply refers to the process of burning SHIB tokens. The burning process is achieved through a combination of manual burning and an automatic mechanism integrated into the #Shibarium network, Shiba Inu's own blockchain.
While manual burning intentionally removes tokens from circulation by sending them to a record address, automatic burning is intrinsically linked to network transactions. Also known as implicit burning, with automatic burning for each SHIB transaction, a percentage of the base transaction fee is used to burn SHIB tokens. With each transaction, the total supply of SHIB is gradually reduced, creating an internal burn rate that persists as long as there is activity on the network.
Why are SHIB tokens burned?
Given the huge number of SHIB tokens in circulation, burning Shiba Inu coins is aimed at creating scarcity. As more tokens are burned, the supply decreases, which should theoretically put upward pressure on the value of the remaining tokens. This could also attract more investors and speculators, potentially boosting demand for SHIB.
Additionally, a controlled Shiba Inu burn rate can promote the long-term viability of SHIB by preventing excessive inflation that could occur as more tokens are minted or distributed.
Where do the burned SHIBs go?
Central to the SHIB recording mechanism are wallet addresses responsible for storing burned tokens. There are currently three SHIB write addresses used to write SHIB tokens. These addresses were not created by the Shiba Inu development team, but are part of Ethereum and are also used for other tokens.
One of them is the most commonly used recording address. This is the same address as the co-founder $ETH #VitalikButerin used to burn $6.7 billion worth of SHIB tokens in May 2021. The second one is the same one used by the Shiba Inu team for lists #ShibaSwap2 . The latter, called the “Black Hole,” is associated with the Ethereum origin address.
What is the burning rate of a Shiba Inu?
The Shiba Inu burn rate determines how many SHIB tokens are removed from circulation over time. The higher the burn rate, the more tokens are destroyed. And the lower the burn rate, the fewer tokens are destroyed.
Investors and traders keep a close eye on the Shiba Inu's burn rate as it may impact their trading strategies. A high burn rate can mean strong community support, increasing investor confidence and attracting more interest in SHIB. On the other hand, a sudden surge in burning could trigger speculation about the future performance of the token.
What is the SHIB Burn Tracker?
All SHIB record transactions are transparent and trackable on the Ethereum blockchain. SHIB Burn Trackers Shibburn and Shiba Burn Tracker are websites that provide real-time records of SHIB burn transactions. These records include detailed information about burn addresses, number of tokens burned, and timestamps.
Shibburn provides users with information on Shiba Inu inventory, burn rate, number of SHIB tokens burned in the last 24 hours, and recent burn transactions. Meanwhile, Shiba Burn Tracker provides a graphical view showing SHIB burn transactions for the last 30 days. It also has tabs that display SHIB record statistics for the current and last month, as well as all SHIB record transactions by month from the beginning.
Does burning SHIB add value?
It is noteworthy that incineration itself may not necessarily lead to a significant increase in cost. Several factors come into play:
Supply and demand. The main factor in the value of a token remains the interaction between supply and demand. An increase in demand for SHIB, coupled with a decrease in supply due to the burn, could increase the token's appeal and price.
Continuous purchase rate: Burning a huge number of tokens, such as 10 billion, in a short period may not have a significant impact on the price if much larger transfers and daily purchases occur. It's not just about combustion; it's about maintaining balance with the current buying rate.
Liquidity and Acceptance: A token's liquidity and market acceptance form vital pieces of the puzzle. Even a significant token burn may not result in an increase in its value if the token lacks liquidity and demand.
Long Term: The long term is important to evaluate the success of a token. Investors' price expectations can vary, and tokens take time to flourish, gain acceptance, and potentially increase in value.
Thus, burning SHIB may be a factor that increases its value, but it is not a stand-alone solution. While a burn has the potential to increase the value of a token, it should be part of a larger sustainable growth strategy.
