🔹 Initial Supply & Circulating Supply
SHIB launched with a massive total supply of 1 quadrillion tokens (1,000,000,000,000,000), making it very abundant and cheap per token initially.
As of late 2025, the circulating supply has shrunk to roughly ~584–589 trillion tokens as a result of ongoing burns.
That means 40%+ of the original supply has already been permanently removed since inception.
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🔥 What Does “Burning” Mean?
A token “burn” means sending SHIB to a special address (called a dead wallet) that no one can access — effectively destroying the tokens forever.
Because they can’t be recovered, burned tokens reduce overall supply and make the remaining tokens scarcer.
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🧠 Why Burn SHIB?
Burn mechanisms are deflationary by design — unlike minting new tokens, burning shrinks supply.
Theory: Scarcity can increase value if demand stays the same or grows.
The burning narrative is central to many SHIB holders’ long-term value thesis.
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🔧 How Burns Happen
There are three main burn mechanisms for SHIB:
1. Community-driven burns
• SHIB holders send tokens voluntarily to the burn address.
• Large individual burns (e.g., billions in one transaction) can spike daily burn rates dramatically.
2. Burn Portals
• Tools like the Shiba Inu Burn Portal let holders send tokens to dead wallets in exchange for rewards in other tokens (like RYOSHI).
3. Automated Burns via Shibarium (Layer-2)
• Shibarium, SHIB’s Layer-2 blockchain, burns a portion of transaction fees (70% of base fees are burned). The priority fees go to validators.
• When enough fees accumulate, they are converted into SHIB and also burned, embedding burning into network activity.
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📊 Burn Stats & Trends
Over 410 trillion SHIB (more than 41% of the original supply) has been burned to date.
Burn rate spikes often post big community burns, with daily increases sometimes hitting quadruple-digit percentage jumps.
However, because the circulating supply remains enormous, even millions or billions burned in a day are a small fraction of the total supply.
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💭 Impact on Price & Scarcity
Scarcity increases with burns, theoretically supporting higher prices if demand holds.
In reality, burns haven’t consistently driven major price spikes — market sentiment, macro factors, and demand still play a larger role.
Many burns are symbolic: daily totals (like a few million tokens) barely move the needle compared with hundreds of trillions in supply.
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🧩 Takeaways
✔ SHIB’s supply has been significantly reduced via burns, reinforcing its deflationary tokenomic narrative.
✔ Burns occur via community efforts, portals, and automated Layer-2 mechanisms.
✔ Their impact on price and long-term scarcity exists but is often muted by the scale of total supply and broader market forces.
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