The team behind popular meme-based cryptocurrency Shiba Inu (CRYPTO: SHIB) plans to launch its own token burning portal.
What Happened: In an AMA with Watcher News on Tuesday, a Shiba Inu team member, known as “Archangel”, revealed that the upcoming version of its decentralized exchange ShibaSwap 2.0 will have a “burn portal.”
The burn portal will reportedly facilitate regular token burns which will ultimately reduce the coin’s circulating supply.
“We want to make the burn rate grow with the utilization rate of the platform. So if you think about it, this is kind of the new utility. It’s about getting the supply slowly reduced as you use the platform,” he said.
Archangel also stated that SHIB investors should be realistic and not expect that 90% of the circulating supply would be burned.
Why It Matters: According to data from CoinMarketCap, Shiba Inu has a circulating supply of 549 trillion. Meanwhile, new coins continue to be issued at a rate that makes it difficult for its price to appreciate significantly despite demand for the meme-coin.
As such, members of the SHIB community have taken it upon themselves to see tokens burned and removed from circulation in an effort to increase the price.
These efforts have included a number of SHIB burn parties organized by Bigger Entertainment and burns conducted by a coffee house that sets aside 10% of its profits for the cause.
The Shiba Inu team introducing its own burning mechanism will undoubtedly be a welcome development for members of the community.
Price Action: As of Thursday morning, SHIB was trading at $0.0000217, down 16.18% in the last 24 hours. Its rival Dogecoin (CRYPTO: DOGE) was trading at $0.11, also losing 16% of its value over the last day.