As the revolutionary burn mechanism generated the price increase in Uniglo, it seems the Ethereum-based project has something in common with the popular Shiba Inu coin. Both currencies employ unique burn mechanisms, which ranked among the key factors that boosted the value and the distribution of the coins.
The burning mechanism is a strategy for permanently removing a digital token from circulation, thereby reducing its total supply. There are different mechanisms to execute a burn event for any coin. The most basic way involves the holder sending the coin to a burner, a wallet that only receives coins and never retrieves them. This process irreversibly locks the coins from circulation.
However, different cryptocurrencies use unique ways to burn their token. For example, Uniglo uses an ultra-burn technique, while Shiba Inu uses a Shib burn portal to destroy their assets.
Uniglo and Ultra-burn Mechanism
Uniglo implements an ultra burn mechanic where 2% of every $GLO buy, and sales transactions are burned. The burned tokens are sent to the Uni Abyss, the wallet which serves as a burner for Uniglo tokens. By constantly lowering the circulating supply, Uniglo tokens become scarcer, resulting in higher demand for the tokens in the market and a high possibility for price growth.
The ultra burn system is one of the tokenomics in Uniglo that has generated price increases and popularity for the Ethereum-based project. Although the coin is not tradable yet, it has gained the attention of many crypto enthusiasts who anticipate a gigantic burn straight after launch, as has been voted by the community through a democratic process. Crypto experts believe that Uniglo is the best, expressing optimistic predictions about the project.
Shiba Inu and Shib Burn Portal
The popular meme coin, Shiba Inu, implements a burning mechanism known as the Shib burn portal to lower the circulating supply of its coin. Shiba Inu launched the burning protocol in collaboration with Ryoshi’s vision on April 23, 2022. Ryoshi’s vision is a token created on the Ethereum blockchain to support the growth of the SHIB ecosystem.
When a user wants to burn his Shib tokens, he receives a burntSHIB token which rewards him in Ryoshi tokens at variable rates. According to the developers, all holders of burntSHIB receives 0.49% of Ryoshi’s transaction.
About 20 billion Shib tokens were burned within five days after the launch of the Shib burning portal. Out of 1 quadrillion Shib tokens minted, about 410 trillion tokens have been burned since the launch of the Shib burn system, helping the coin achieve stability in the crypto market.
Завршне мисли
Although SHIB has an excellent burn process, it has slowed significantly in the past year, and Uniglo is the better option for investing in a deflationary ecosystem.
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Source: https://nulltx.com/price-increase-generated-by-uniglo-io-burn-event-how-does-the-ethereum-based-project-compare-to-shiba-inu/