Shiba Inu ($SHIB) employs token burning to reduce its supply and enhance its scarcity. Here's how it works:
1. Burn Mechanism:
The Shiba Inu team periodically sends SHIB tokens to a burn address, permanently removing them from circulation. This address is visible on the Ethereum blockchain, ensuring transparency.
2. Significance:
Reducing supply through burning increases scarcity, potentially driving up $SHIB's price. It's a key strategy for supporting long-term valuation.
3. Shibarium's Role:
Every transaction on the Shibarium network burns a small amount of SHIB, ensuring continuous supply reduction over time.
4. Impact:
As of December 12, 2024, 410.74 trillion SHIB tokens have been burned, lowering the circulating supply to 589.25 trillion. A recent spike in burn rates has sparked optimism for a price rally. However, sustained burns depend on network activity, adoption, and broader market conditions.