Shiba Inu has unveiled a new burning mechanism that rewards users for burning native SHIB tokens on its ShibaSwap exchange protocol.
The burn process incentivizes users with burntSHIB tokens received once they send their SHIB tokens to the dead wallet address. The received tokens can be staked for RYOSHI tokens, a different token developed by Shiba Inu.
About 11 billion SHIB tokens worth $251,000 have since been burned since the announcement, with the users currently earning 9% annualized yields.
The news is yet to boost the price of Shiba Inu tokens, which are trading at a 5.3% dip in the past day amid a bearish crypto market sentiment.
Cryptocurrency burning is the process of removing tokens from circulation by transferring them to an address where they are irretrievable. A reduction in supply leads to an increase in value based on the law of demand and supply.