TL; DR Breakdown
- Shiba Inu rolls out its burning portal
- The developers are planning to make the token scarce
- Users who burn Shiba Inu will earn incentives
The development team of high-flying digital asset Shiba Inu has announced the debut of its SHIB burning portal. Using the portal, users will be able to burn their Shiba Inu tokens while earning a reward in the process. Users will be able to earn passive income when they reduce the number of tokens in circulation using the burning portal.
Shiba Inu developers want a scarcity of the token
According to the development team, users who choose to burn tokens will have to send them to an address specifically set aside for burning the token. The development team also said that the wallet is like a typical black hole. Once users send their tokens to the wallet to be burnt, they cannot get the token back. One of the few things this will help achieve is to remove excess tokens from circulation and make the token scarce.
With this mechanism, the token could well compete in terms of price in the market soon. The mechanics are also expected to drive in investors because most of them prefer scarce tokens due to potential price rises. However, all this is still the theoretical aspect, as the value of a token has to do with the power behind the token and not the scarcity. This means that the expected results of burning the tokens might not be what will eventually happen.
Developers promise incentives for users
The development team also mentioned that their reason for introducing the portal was born out of the calls made by their community of users for the mechanism. Its Twitter post mentioned that the SHIB army, as they are fondly called, has been quite vocal about the update. This is why they have rolled it out after carefully considering the usefulness that it might drive to the token. It also mentioned that it would help each member that wants to drive up their wealth achieve their aim in the coming years.
In this vein, users who intend to earn incentives must burn a portion of their tokens to earn the rewards. The developers mentioned that burntSHIB tokens would be awarded to users who burn their tokens. Later, they would be able to change the burnt tokens to RYOSHI, a coin named after the famous developers of the token. The holders of the new burnt tokens will earn 0.49% of transaction fees gotten from the trade of Ryoshi.