Coinspeaker
Shiba Inu (SHIB) Advocate Hints Multiple Ways to Shrink Supply

In response to an X post inquiring to know what users do on Shiba Inu’s scaling solution Shibarium, one SHIB enthusiast has listed a number of ways to drop the total circulating supply of the dog-themed memecoin.

Performing Transactions to Facilitate Shiba Inu Supply Crunch

The SHIB advocate known as @dhelzkiie7 on X, listed token swap as the first way to shrink the supply. This usually involves exchanging one type of token for another within the dedicated DEXs in the ecosystem. The token swaps could be part of a migration process to a new blockchain or updated token standard.

Here, the original tokens are swapped for new ones, and the old tokens are then destroyed or rendered invalid, reducing the total supply. This mechanism is prevalent when projects upgrade their technology or move to a more efficient or secure blockchain. Also, this token swap can be used in Decentralized Finance (DeFi) to facilitate liquidity provision.

With this, tokens swapped into liquidity pools are locked for a period of time, thereby reducing the effective circulating supply.

He also mentioned minting Non-fungible tokens (NFTs) as another strategy to go about the reduction...