KEY POINTS

  • Shiba Inu is the world's second dog-themed meme coin
  • It now has a burning mechanism to help destroy Shiba Inu coins
  • Shiba Burn has burned over nine billion tokens just hours after it launched

Shiba Inu's price has tumbled despite the official launch of the Shiba Burn portal, which allows holders to permanently destroy their meme coins and earn rewards at the same time.

The Shiba Inu team rolled out a new burning mechanism in the latest version of ShibaSwap, the meme coin's native decentralized exchange (DEX). Dubbed Shiba Burn, the portal, developed in collaboration with the creators of the ERC20 token Ryoshi's Vision, aims to provide a "systematic method" to "make it rewarding for users to regularly burn $SHIB while effectively reducing its circulating supply." It went live Saturday.

The new Shiba Burn portal allows Shiba Inu Holders to permanently burn or send their token to a dead wallet to remove it from circulation. As a reward, the team offers an incentive program that could be a source of passive income. 

Still, it appears that holders are yet to feel the effect of the new burning portal. Shiba Inu was trading down 4.03% at $0.00002325, with a 24-hour volume of $380,586,116 as of 8:43 p.m. ET on Sunday, based on the data from CoinMarketCap.

Shiba SHIB is the main currency in the ecosystem Photo: Shiba Token - Twitter

Every time a Shiba Inu holder burns a SHIB, they would receive a token called burntSHIB, which they can exchange for Ryoshi tokens. SHIB burners that received burntSHIB are entitled to approximately 43.76% annual rate percentage. For users to avail of the rewards, they need to add the token burntSHIB to their Web3 wallet.

The Shiba Burn portal is the latest catalyst many holders hope could help boost Shiba Inu's price in the long run. Based on the newest update from influencer Archangel, the new burning mechanism has burned nine billion tokens just hours after its official launch.

While the new burning portal is already operational, investors should not expect that to skyrocket the price of the dog-themed token. However at the current burn rate, and with other projects lined up for Shiba Inu, including the Shib: The Metaverse, the elusive $0.1 price may be reached sooner than expected.

In theory, burning the meme coin will reduce the supply of circulating coins, which makes the asset more scarce and more attractive to investors. The Shiba Burn portal will facilitate coin burning among holders that could go on for years and with every token taken out from circulation, the value of the remaining tokens is expected to increase incrementally.