The meme-based cryptocurrency Shiba Inu released a token burning portal on April 23. In exchange for burning the SHIB crypto-token, the users would get the RYOSHI token in return. Till now the Shib army and community have burned 29.5 billion SHIB tokens through the burning portal Shibburn.
The burning rate has risen to 800% on the portal and users are burning their SHIB tokens to support the meme coin. Shortly after this, Shibburn started delivering RYOSHI crypto coins are rewards to the individuals who had burned their tokens. Yesterday, it touched a new high of 12.8 billion burned tokens.
However, the ‘burning’ is only a metaphor as all the contributed SHIB tokens are sent to an address from which it doesn’t retrieve back. It means, no one can use it for purchases or swapping, and neither can be withdrawn. This process helps in lowering the number of SHIB tokens in circulation. Through this process, there will be a rise in token price as the more tokens are burned the more it gets rare in the market. Thus, the rarity of tokens causes a price hike in the market.
The figures paced up quickly as the RYOSHI tokens were being distributed and the community altogether burned 42.7 million tokens yesterday. Etherscan, managed by Ethereum Foundation noted that a SHIB burning address had accumulated $6,500 worth of RYOSHi tokens by burning 1.3 billion SHIB tokens.
In the process of burning the tokens, the holders earn burntSHIB after which they can be redeemed to obtain the RYOSHI token. Also, the users must ‘WOOF’ to claim them. Apparently, a lock-in period comes with the new token to avoid quick selling of RYOSHI tokens right away.
Up to this point, 410.36 trillion SHIB have been burned since its launch. During the time of supply, Shiba Inu had a total supply of one quadrillion tokens. 50% of them were locked through a smart contract to offer liquidity on Uniswap, whereas the other half is in possession of Ethereum founder Vitalik Buterin. Further, Buterin burned around 410 trillion SHIB tokens from his half to reduce the overall circulation.