How Shiba Inu burns its tokens?

Shiba Inu is a popular cryptocurrency that was launched in August 2020 as an ERC-20 token on the Ethereum blockchain. It was created by an anonymous person or group of people under the pseudonym Ryoshi. The Shiba Inu cryptocurrency has gained popularity due to its similarities to Dogecoin, which was created as a joke but has since become a legitimate cryptocurrency.

How Shiba Inu burns its tokens?

One of the unique features of Shiba Inu is its "burn" mechanism. Burning tokens means that they are sent to an unusable address, essentially removing them from circulation. This mechanism is used to decrease the total supply of a cryptocurrency, which can increase the value of the remaining tokens.

In the case of Shiba Inu, burning tokens is achieved through a process called "liquidity event burning." This involves burning a portion of the liquidity pool tokens, which are used to facilitate trading on decentralized exchanges (DEXs) such as Uniswap. The liquidity pool tokens are burned by sending them to an address that is owned by a smart contract. The smart contract ensures that the tokens are effectively removed from circulation, and that they cannot be recovered or used in any way.


The liquidity event burning mechanism is designed to reduce the total supply of Shiba Inu tokens over time, which can increase their value. This is because the remaining tokens become scarcer, and therefore more valuable. The burning of liquidity pool tokens is also designed to incentivize holders to provide liquidity to the Shiba Inu DEX pools, as they will receive a portion of the transaction fees generated by the exchange.

Shiba Inu has also introduced other burn mechanisms to further decrease the total supply of tokens. One of these is the "Charity Burn," which involves burning a portion of the tokens held by the Shiba Inu development team. The burned tokens are then donated to a charity selected by the community.


Another burn mechanism is the "NFT burn," which involves burning tokens to purchase non-fungible tokens (NFTs) that are then given away to the community. This mechanism is designed to create a community-driven ecosystem that rewards users for holding and using Shiba Inu tokens.

In conclusion, Shiba Inu's burn mechanism is a unique feature that sets it apart from other cryptocurrencies. The liquidity event burning mechanism, in particular, is designed to reduce the total supply of tokens over time, increasing their value and incentivizing holders to provide liquidity to the DEX pools. The introduction of other burn mechanisms, such as the Charity Burn and the NFT burn, further strengthens the community-driven nature of Shiba Inu and rewards users for holding and using the tokens.

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