The SHIB ecosystem team has announced that Shibarium burns will take a shift to an automated system by January 2024.
The team behind the Shiba Inu ecosystem recently revealed plans to automate Shibarium-powered SHIB burns starting January 2024. Notably, the development was confirmed in a blog post shared by the team last December.
Shibarium Automated Burns Soon to Begin
As stated in the blog post, the Shibarium burn mechanism is set to transition to an automated system this month. Significantly, this automated mechanism will adhere to predefined rules.
The Shibarium documentation had previously detailed that the L2 blockchain would utilize a portion of the network’s gas fees to burn SHIB’s token. Specifically, 70% of the network’s base fee will be reserved by the team to purchase and burn tokens.
Given that Bone ShibaSwap (BONE) serves as the official gas fee for the network, the system will initially convert these tokens to SHIB before transferring them to a dormant wallet.
The process involves utilizing Shibarium fees to burn SHIB’s token each time the burn contract amounts $25,000 in BONE. Once the contract surpasses the $25K threshold, the system will automatically convert BONE to Shiba Inu and dispatch the equivalent amount to the dormant wallet.
Shibarium to Bolster SHIB Burns
It’s crucial to emphasize that the number of tokens burned on Shibarium is contingent upon the prevailing Shiba Inu price. During the manual phase, the Shibarium burn contract consistently surpassed the $25,000 threshold before the team initiated the burns, resulting in a substantial upswing in the quantity of tokens incinerated in each transaction.
The inaugural Shibarium-powered burn saw 8.24 billion Shiba Inu tokens reduced, with an approximate value of $75,000. Subsequently, the second, third and fourth Shibarium burn amounted to $87,000, $90,700 and $90,300, respectively.
Should the team transition to an automated system, burning SHIB when the contract reaches $25,000 in BONE will lead to the incineration of fewer SHIB tokens per burn. Nevertheless, automated burns will occur more frequently than their manual counterparts.
As Shibarium continues to burn more SHIB tokens, the substantial circulating supply of the token is expected reduce. To date, over 410.69 trillion SHIB tokens have been burned and SHIB currently trades at per token