Shiba Inu Coin (SHIB) had a great 2021, gaining a lot of attention late in the year for its burning efforts, but what is the SHIB burn rate?
Many cryptocurrencies use coin burning, the act of destroying coins by sending them to ‘dead’ wallets, to sustain themselves long-term. Burning helps to increase scarcity, which could lead to a price increase over time. Both Binance Smart Coin (BNB) and Ethereum (ETH) regularly burn coins.
So, how does the SHIB burn work?
Does SHIB Burn Coins: What Is The SHIB Burn Rate?
While Shiba Inu has no regularly scheduled SHIB burns through its tokenomics or WoofPaper, it now has the Shiba Inu burn portal that will facilitate token burns.
First released on April 23, it has already seen over 59 billion SHIB destroyed.
Through community burns, and the Shiboshi name changes, the SHIB burn rate, based on March's numbers, was around 6 billion SHIB. In April, it reached 26 billion. Here, the burn portal destroyed as much SHIB as the rest of 2022 had combined. In May 2022, it reached 31 billion SHIB burned.
In the first half of 2022, over 70 billion SHIB was burned by the Shiba Inu community.
Here's just a selection of SHIB burns from the community, and how they do it.
Bigger Entertainment was among the first large-scale SHIB burns from the community. Through the likes of its SHIB Burner playlist and burn parties, Steven Cooper's "crypto record label" has destroyed over 1 billion SHIB.
While it planned to host new burn events and launch an NFT game, Bigger Entertainment has now left the Shiba Inu space. Cooper told IB Times that this came about from a call with the Shiba team that left him disappointed.
Shiba Inu Games
While NFT games are associated with earning crypto, a new section of titles are now play-to-burn.
Travis Johnson's Bricks Burner mobile game, for example, uses the ad revenue earned to send SHIB to the dead wallet. This method has burned over 2.5 billion SHIB so far. Johnson's SHIB Superstore has also expanded out into additional revenue streams, including food and drink, alongside additional games, to burn tokens.
Bricks Burner isn't the only game to burn SHIB. Several other mobile games claim to burn SHIB, contributing to the wider effort.
More SHIB Burns
There are plenty of other SHIB burning efforts going on within the Shiba community and ecosystem. The Shiba Coffee Company, for example, burns a percentage of its profits. Meanwhile, new, third-party tokens have also started burning large portions of SHIB.
Of course, it's not all good news with burning. Several malicious actors claimed they would burn a certain amount of SHIB to gain a large following of the ShibArmy. As such, we'd recommend caution to any new burning efforts until they post their Etherscan transaction of the burn.
Upcoming SHIB Burns
Looking at the SHIB roadmap, there are plenty of new burning mechanics coming in the future directly with the Shiba Inu ecosystem. Here's a look at some of the upcoming burns.
- The Shiba Inu Metaverse will burn SHIB through allowing land owners to rename their real estate.
- All future Shiba Inu platforms - such as ShibaSwap and Shibarium - will include some burning mechanisms, aside from the game.
- NOWPayments has introduced an optional burn mechanic for its merchants. Several Shiba partners, such as Wellys and John Richmond, have signed up to the burns.
How Much SHIB Is Burned?
Across the three SHIB burn wallets, over 410.365 trillion SHIB has been burned, representing 41% of the total SHIB supply.
However, most of the destroyed SHIB comes from Vitalik Buterin's initial burn. The Ethereum creator destroyed 410.24 trillion SHIB in May 2021, after he received 500 trillion SHIB when the token first launched, representing 50% of the total supply. Buterin then donated the remaining SHIB to charity, which has been used by the India Crypto Covid Relief Fund.
This means that after subtracting Buterin's burn from the total amount of Shiba Inu destroyed, the community has burned 125 billion SHIB, worth $1.6m as of July 20. Of course, the actual amount is higher than this, with SHIB still down from its previous 2022 highs.