Merchants can burn out Shiba Inu tokens by using a new feature from NOWPayments, a non-custodial digital payments tool. According to the Amsterdam company, it will burn approximately 3% of all relationships in the top canine coin community.
A burn is the process where SHIB tokens are sent to an unusable address, so they will be removed permanently from circulation. The way this process works is similar to stock buy-backs by comapnies on a stock exchange. The end result of this exercise is a decrease in the total coin supply of a crypto coin and this will automatically increase the demand as well.
As per the data, the overall supply of the SHIBs circulation has decreased from one quadrillion tokens initially, to a value of $549 trillion.
In the month of May, Vitalik Buterin, the co-founder of ETH, burned around 410 trillion SHIB tokens representing 90% of the total gift. These gifted tokens were received right from Ryoshi, who is also the founder of the crypto Shiba Inu.
The new community of Shiba Inu is taking care of things by destroying 545 million Shiba tokens and pushing the deflation to new heights.
Despite this regular burning of tokens and the increasing acceptance of merchants, Shiba Inu is quite low by 60% compared to October.
The exercise of burning the crypto coin helps in removing the overall floating of free coins circulating throughout the market. In the process of burning coins, a bunch of coins is floated to an inactive crypto address or the wallet to avoid making them come back to the public eye.
The creation of Shiba Inu happened in the form of a joke to compete against DOGE and was introduced by Ryoshi. Proponents of the coin want to increase the price of the best-performing cryptocurrency of the year by lowering supply and raising the demand through burning.
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