The Comprehensive Guide: Unveiling the Essentials You Must Know

Token burns have become a popular method for reducing the supply of cryptocurrencies. Each project has its own way of conducting token burns, but the purpose remains the same. Understanding how token burns affect the supply and demand dynamics is essential. In the case of Shiba Inu (SHIB), one of the industry’s most popular ecosystems, it is important to demystify the technicalities behind their token burns.

What is a Token Burn?

Token burns involve permanently destroying a certain number of tokens from the existing supply. This process varies among projects, but the most common method is sending the burn tokens to a specific address known as the “burn address.” By reducing the token supply, the existing tokens become scarcer and potentially more valuable. The reasons for burning tokens differ for each project.

Enters Shiba Inu (SHIB)

Shiba Inu is a cryptocurrency with an extremely high token supply of 999,992,188,828,143. To reduce the supply and generate buying pressure, the SHIB team sent half of their tokens to Vitalik Buterin’s address. This strategic move brought massive visibility to the project and contributed to its subsequent rally. Buterin, the co-founder of Ethereum, burned 90% of the tokens and donated the remainder to a COVID-related charity in India.

The Shiba Inu (SHIB) Burn

Details of the burning mechanism introduced by Shiba Inu’s team can be found on their official website. The process seems to be more complicated, involving manual burns and an automated component based on the performance of Shibarium, their layer-two network. SHIB tokens are supposed to be burned with each transaction on the network, with the base gas fee utilized for this purpose.

Manual SHIB Burns

The community also participates in manual burns by transferring a designated number of tokens to a special burn address. In exchange, they receive a reward in the form of a unique token. When Shibarium launched, users burned around 20 billion SHIB tokens using the ShibBurn portal integrated within the ShibaSwap exchange.


Shibarium has experienced some challenges since its launch, and ongoing improvements are expected. The team is actively developing new functions and outlining various priorities. The long-term impact of these token burns on SHIB’s tokenomics remains to be seen.

(Source: Cryptopotato. Image:

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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