Shiba Inu (SHIB)

Tokenomics & Utility

Supply and burns

SHIB began with one quadrillion tokens. At launch, half of that amount went into a Uniswap liquidity pool and half was sent to Ethereum co-founder Vitalik Buterin. In May 2021, Buterin sent about 410 trillion SHIB to a burn address, removing those tokens from usable circulation. This event shaped the token’s supply and remains an important part of its history. (magazine.shib.io)

A burn means sending tokens to an address from which they cannot be spent. Community members can choose to burn SHIB, and the ecosystem has built a process called ShibTorch around fees collected on Shibarium. In that process, part of the accumulated BONE fees is converted to SHIB and sent to a burn address. The amount removed through this route depends on network activity and completed burn transactions. (news.shib.io)

SHIB’s uses include transfers, supported payments, activity on ShibaSwap, and participation in community governance. Its role sits alongside three other ecosystem tokens:

• BONE pays Shibarium network fees and has staking and governance roles.
• LEASH is used for selected access and benefits within the ecosystem.
• TREAT is designed for rewards, access, and governance features. (shib.io)

These roles explain why an application may use SHIB for one action and ask for BONE or another token for the next.