Shiba Inu: Can Shibarium Burn 111 Trillion Tokens Per Year?

shiba inu

Shiba Inu has been at the center of discussions surrounding the burn mechanism of the highly anticipated Shibarium layer-2 network. Speculation has been rife regarding the potential burning of 111 trillion tokens annually by Shibarium. However, the Shiba Inu team has not yet confirmed the accuracy of these calculations put forth by the SHIB Discord moderator, Queenie.Β 

Despite the absence of official confirmation, LucieSHIB, the content marketing specialist for the SHIB ecosystem, recently provided a detailed explanation of the burning process. Notably, she refrained from disclosing the precise number of tokens that Shibarium could burn. Still, she took to Twitter to share insights into the burn process and shed light on the functionality of Shibarium.

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Shiba Inu Shibarrium Burns

LucieSHIB explains that every transaction conducted on the Shibarium network follows a specific division of fees. When users initiate a Shibarium transaction and pay the gas fee, this fee serves two distinct purposes. It is important to note that priority fees are charged to facilitate transactions on the network and compensate the validators.

The fee structure on Shibarium involves a 70% allocation for burning SHIB tokens and the remaining 30% reserved for network maintenance. Within the Shibarium layer-2 network, the native gas token is known as BONE, which undergoes a swap to SHIB tokens during the burn process.

LucieSHIB clarified the transaction process by stating that when users engage in transactions on the network, the base fee is secured within a Shibarium contract. In contrast, the priority fee is directed to validators. The base fee undergoes a division, with 70% burned and the remaining 30% set aside for network maintenance.

To initiate the burn process on Ethereum’s L1 network, the accumulated BONE tokens within the burn contract play a crucial role. These BONE tokens are then exchanged for SHIB tokens, which are subsequently burned, effectively reducing the total supply of SHIB tokens.

Implementing fee division and token burning within the Shibarium network showcases the project’s commitment to maintaining network efficiency, compensating validators, and reducing the overall supply of SHIB tokens.

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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