In the context of Shiba Inu cryptocurrency, the term “burn” refers to the intentional and permanent removal of tokens from circulation. This process involves sending tokens to a “burn address,” a crypto wallet that is inaccessible, effectively destroying them. For example, if a large number of Shiba Inu tokens are burned, the total supply decreases.
The purpose of reducing the circulating supply is to potentially increase the value of the remaining tokens. Scarcity, driven by decreased supply and consistent or increased demand, is a fundamental economic principle that influences asset valuation. Historically, projects have implemented these strategies to incentivize holding and attract new investors by projecting future price appreciation.
