Recently, the burn of Shiba Inu (SHIB) has been a hot topic, and the movements over the past few weeks are truly fascinating. I heard that tokens are being burned at an astonishing rate of 500% per day, and I thought something was definitely happening.

When it started in August 2020, there was an enormous supply of 1,000 trillion SHIB, but now, more than 41% of the initial supply has already been burned. Just last week, over 500 million tokens were destroyed, which shows how serious the community is about burning.

The mechanism behind SHIB burning is actually quite complex, consisting of a combination of manual and automatic burns. Manual burns are when users intentionally send tokens to a burn address, while automatic burns are integrated into transactions on the Shibarium network. In other words, as long as the network is active, SHIB burning continues steadily.

The reason for doing this is to reduce supply and create scarcity. With such a huge supply of 1,000 trillion, it’s hard for the token to have significant value, so they aim to push up the remaining token’s value through burning. You can see real-time burn data using a tracking tool called Shiburn, which also ensures transparency.

However, honestly, just burning SHIB doesn’t necessarily guarantee that the price will go up. Factors like demand and supply balance, ongoing purchases, market adoption, and liquidity all play a role. Burning hundreds of billions of tokens might have limited impact on the price if there’s no new buying or inflow.

Latest data shows the total supply is around 589.5 trillion, with a circulation rate of 58.93%. That means a significant portion of tokens is still in circulation. From a long-term perspective, SHIB burning can be one element of increasing value, but it should also function as part of the overall growth strategy of the project. How the market reacts will depend on future network activity and adoption expansion.