Shiba Inu developers have launched a new burning mechanism on its ShibaSwap exchange that allows holders to burn their tokens while also earning passive income. Burning in crypto means permanently removing tokens from circulation by sending them to a dead address or a crypto wallet which they cannot be retrieved from. It is beneficial to investors because a scarce crypto asset is preferred over one with an unlimited supply or high inflation rates. However, fixed or reduced supply does not always imply increased value, so the outcome of the burning portal remains to be seen.
The new mechanism guarantees incentives in the form of ‘burntSHIB’ tokens. These tokens can then be staked to generate rewards for users in the form of Ryoshi tokens, a separate token created by the Shiba Inu community.
ShibaSwap portal has been created as part of a partnership between Shiba Inu and Ryoshis Vision (RYOSHI), which is an Ethereum-based decentralised finance (DeFi) project that aims to support the growth of the SHIB eco-system.
Some 8 billion SHIB tokens have been burned since the portal started operation, according to Shiba Inu’s official, Twitter handle. This amounts to over $181,000 at current prices.
According to Coindesk, participants are earning current annualised yields of 9 per cent at writing time. However, the new mechanism hasn’t spiked the price of SHIB token. In the crypto market, SHIB has lost 5.3 per cent in the last 24 hours.
In other news, Kaal Dhairya, a Shiba Inu developer, has warned in a blog post about how a scam token is trying to associate itself with the viral meme coin. According to the developer, a malicious crypto token posing as ‘Shiba Inu: Deployer’, is using a smart contract on the blockchain, associating itself with Shiba Inu.
The transaction that seems to be made through the Shiba Inu token is a manipulation trick on the smart contract. Smart contracts are programs on blockchain that execute when a specific condition is met.
Shiba Inu said they are now launching its metaverse, with 100,595 plots of virtual lands. Inspired by a dog meme and posed as ‘Dogecoin killer’, SHIB’s value skyrocketed in 2021 and SHIB developers want to drop the ‘meme coin’ tag with the launch of its metaverse. Creators of Shiba Inu metaverse have termed it ‘SHIB: The Metaverse’. The developers will allow users to buy virtual lands through a series of events. Users will have to visit the official Shiba Inu metaverse website.