Shiba Inu Coin (SHIB) has seen a significant resurgence in recent weeks, but what is SHIB's burning rate?
Many cryptocurrencies use coin burning - the act of destroying coins by sending them to "dead" wallets - to sustain themselves over the long term. Both Binance Smart Coin (BNB) and Ethereum (ETH) regularly burn coins.
So what about SHIB?
Although a considerable portion of SHIB has been burned in the past, there is nothing in the "WoofPaper" to suggest that SHIB has a tokenomic setup to burn SHIB on a regular basis. With other coins and tokens, for example, a small amount of transaction fee is burned.
In the ShibaSwap audit, the decentralized cryptocurrency exchange (DEX), Certik created a detailed diagram illustrating how the ecosystem works. Likewise, neither the audit nor the diagram refers to regular Burns.
However, this doesn't mean that SHIB isn't burning any tokens. As part of ShibaSwap's updated listing plans, new pairs or pools added to the DEX will need to burn $ 25.000 in SHIB and LEASH. The ETH-RYO pool has also implemented a system that burns 1% of each transaction.
The cryptocurrency also announced on October 7 that any transaction made through NowPayments will see a percentage of SHIB burned per transaction. However, he did not disclose the percentage. NowPayments is a cryptocurrency payment service provider integrated with Shopify. It has a service fee of up to 0,5%, but we don't know how much SHIB it will burn.
How much SHIB was burned?
Despite these relatively low burns, a significant amount of SHIB is already burned or in a dead wallet. Much of this comes from Vitalik Buterin, the creator of Ethereum.
When SHIB was first launched, his team sent 50% of the total supply, roughly 500 trillion SHIB, to Buterin. Buterin burned 90% of that, or 410 trillion SHIB, saying he didn't want to be "that kind of place of power." The creator of Ethereum donated the remaining 10% to charity.
According to CoinGecko, SHIB has an outstanding supply of 497 trillion. This suggests that another 93 trillion SHIBs may have been burned or not in circulation. However, the amount in circulation is likely to be higher. CoinGecko attributes the now transferred SHIB held by the India Covid Relief Fund as not outstanding.
While SHIB now has some standardized burns, many owners have expressed their frustration with the SHIB burn ads, deeming them too small. SHIB has a market cap of $ 10.811.587.901 at the time of writing, according to CoinMarketCap. Burning $ 25.000 makes up 0,00023% of the total supply.
A petition to burn a "significant amount" of SHIB collected 7441 signatures. According to the creator of the petition, a higher burn “would allow Shiba to attract more Investors, raise prices through demand and, above all, turn Shiba into a stable cryptographic token and a viable payment globally ”.
