Shiba Inu (SHIB) Network's Shibarium Introduces Burn Mechanism For SRC-20 Tokens

✍️ 27 December, 2023 - 16:03 👤 Editor: Jakub Motyka

• The Shiba Inu (SHIB) Shibarium network now allows SRC-20 token holders to burn their tokens.
• This update could position SRC-20 tokens for a deflationary model.
• The latest news about cryptos on our Telegram channel.

The Shiba Inu (SHIB) Shibarium network has announced a significant update for its SRC-20 tokens, introducing a burn mechanism that allows token holders to reduce the circulating supply.

This development reflects a strategic shift towards a deflationary model for the network's tokens and is expected to impact the market dynamics of the Shiba Inu (SHIB) ecosystem.

Introduction Of The New Burn Mechanism For Shiba Inu (SHIB)

WoofSwap, a platform for trading and crafting SRC-20 tokens on the Shiba Inu Shibarium network, revealed that SRC-20 tokens now support burning.

src-20 now supports burning.

Transfer to the burning address:

0x000000000000000000000000000000000000dEaD

— WOOF | src-20 on Shibarium (@woofswap) December 26, 2023

This functionality allows token holders to send their tokens to a designated "dead wallet" – a wallet address confirmed by Etherscan as a null wallet commonly used for burning tokens. This address is 0x000000000000000000000000000000000000dEaD.

SRC-20 is the standard for creating inscriptions on Shibarium. These inscriptions can include various content types such as images, text, or HTML, integrated into transactions.

The network has seen a growing prominence of SRC-20 inscriptions, with at least 50 such tokens existing on Shibarium. These tokens, including "shibs," "bones," "woof," "SPUK," "punk," and "Pepe," hold significant market valuations.

For example, "shibs" trades at $0.0000000103 per bone token and has a market cap of $4,254,679 with 22,921 holders. Similarly, "bones" has 6,383 holders and a market cap of $185,420​​​​​​.

The introduction of the burn feature for SRC-20 tokens is a strategic move, enabling holders to incinerate parts of their supply to bolster market value. This development signals a shift towards a deflationary model for these tokens, potentially influencing their market performance and valuation.

The capability for token burning is seen as a significant enhancement in the Shiba Inu network, aligning with broader trends in the cryptocurrency market towards managing token supply and stability​​.

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