The Shiba Inu coin (SHIB) is the latest cryptocurrency to enter the digital asset market. It is based on the Dogecoin network and has been gaining a lot of attention since its launch in August 2020.

One of the most interesting aspects of the Shiba Inu coin is its unique approach to coin burning. Burning coins is a process in which a cryptocurrency's tokens are permanently removed from circulation. This process is used to reduce the total supply of coins, which in turn can increase the value of the remaining coins.

The Shiba Inu team has adopted a novel approach to coin burning. While many other coins use a traditional coin-burning method, Shiba Inu has opted for a more creative solution. The team has implemented a “doggy drop” system.

Doggy Drop

The “doggy drop” system works by allowing users to donate their SHIB tokens to the Shiba Inu Foundation. The Foundation then takes these tokens and “drops” them into a pool of liquidity, where the tokens are permanently removed from circulation. This approach has proven to be very successful in reducing the total supply of SHIB tokens.

In addition to reducing the total supply of SHIB tokens, the “doggy drop” system also provides users with a chance to earn rewards. When a user donates their tokens to the Foundation, they receive SHIB tokens in return. These tokens can then be used to purchase items in the Shiba Inu store.

Kraken’s stance on SHIB burning

Kraken, the world’s leading cryptocurrency exchange, does not burn Shiba Inu (SHIB) tokens. This has been the case since the token was introduced in May 2021.

So why does Kraken not burn SHIB tokens? To put it simply, burning tokens is a process used to decrease the number of tokens in circulation. In theory, if the supply of a token is reduced, its value should theoretically increase as demand for it increases.

Kraken, however, has opted to avoid burning SHIB tokens and instead has chosen to focus on the long-term success of the token and its users. Rather than burning the token, Kraken has encouraged users to hold the token and use it to participate in various activities, such as yield farming and staking. This approach has been beneficial for both users and the token, as it has helped to increase liquidity for the token and has allowed users to earn additional rewards.

In addition to encouraging users to hold and use the token, Kraken has also taken steps to ensure that the SHIB token remains secure and reliable. This includes providing users with comprehensive support resources. By taking these steps, Kraken is helping to ensure that the token remains a secure and reliable form of digital currency.