Understanding Shiba Inu: Circulation and Burn Mechanism

• The Shiba Inu ecosystem is already working on projects like ShibaSwap, Shibarium, Shiba Eternity, and Shiboshis and there are more yet to come. 
• In 2021, Vitalik Buterin burnt almost 410 trillion tokens.
• Once the token is sent to the burn address, it is no longer in use therefore it reduces the supply of Shiba Inu tokens.

Shiba Inu is an Ethereum-based and dog-themed cryptocurrency. The SHIB token is now popularly used for transactions at various locations around the globe by both direct and third-party mediators. 

The real identity of the creator is still a mystery, as it was created by an anonymous person using the alias “Ryoshi” while launching the project in August 2020. When asked about unmasking the identity, Ryoshi says that it is not that important that efforts should be made to reveal himself. He adds that if the memecoin goes successful then it will be staggering. 

The Shiba Inu ecosystem is already working on projects like ShibaSwap, Shibarium, Shiba Eternity, and Shiboshis and there are more yet to come. 

How many SHIB tokens are in circulation?

When launched in 2020, the initiation was done by 1 thousand trillion tokens, making it the largest supplier of tokens over the globe. After this, extensive media coverage by various media outlets dropped the spotlight of the Shiba Inu project as well as the SHIB token. 

If we talk about the current scenario, the supply of SHIB tokens stands at just 589 trillion. This shrink happened as Vitalik Buterin, the co-founder of Ethereum burnt the tokens intending to donate the residuals to charity. At that time in 2021, he burnt almost 410 trillion tokens. 

After this, the burning of SHIB tokens was termed as “SHIB Burn”. The burning of any coin refers to a phenomenon used by many crypto projects to reduce the tokens. The token is scraped up completely from circulation. To remove the tokens, there is a burner address from where it cannot be returned ever. This burner address is also referred to as dead wallets. 

The burn mechanism of Shiba Inu is also very simple as after every successful transaction, a percentage of the transaction is sent directly to the burn address. There is no owner of the burn address and it is just a wallet address. Once the token is sent to the burn address, it is no longer in use therefore it reduces the supply of Shiba Inu tokens. 

If we talk about the data from the official website of Shib Burn, the total burnt from the initial supply is 410,730,854,986,609, Max total supply stands at 999,982,343,411,512, total supply is 589,269,145,013,390 and the circulating supply is 583,513,394,037,657. 

The burning of tokens is not announced before burning, but if you want to keep an account on it, you can track it online on the Shibburn account on X. 

Shiba Inu Vs. Other Cryptocurrencies

If we compare Shiba Inu with Bitcoin, Bitcoin stands for a total supply of around 21 million BTC. Out of which, 19 million BTC is in circulation at the press time. Bitcoin is also removing its coins as bitcoin minted in a year gets reduced by half in every four years. Dissimilar to Shiba Inu, the burning of Bitcoin is computerized and determined already. 

Talking about Dogecoin (DOGE), it comes with a total circulating supply of around 141 billion DOGE. Also, Dogecoin does not follow any burn mechanism and it has no limit to the number of new tokens produced.