Shiba Inu has initiated a groundbreaking burning mechanism to enhance the token’s value and benefit current investors.
In a recent update on Monday, the development team of the popular blockchain project, Shiba Inu, announced the commencement of a new burning era associated with Shibarium, its layer-2 network.
New Dawn for SHIB Burns on Shibarium
Shibarium, akin to other layer-2 networks, facilitates value transfers and interaction with decentralized applications (dApps). However, Shibarium’s roadmap sets it apart, incorporating a feature where transaction volume directly influences the burning of SHIB tokens.
As transactions increase on Shibarium, the network burns more SHIB, establishing a symbiotic relationship. The network allocates 70% of the base fee to burn SHIB, reserving the remaining 30% for ongoing maintenance.
Following the roadmap, Shibaswap gathers fees in its native gas fee token, BONE, and converts them into SHIB for burning upon reaching a $25,000 USD threshold.
SHIB Burns Ignite on Shibarium
After the launch of Shibarium in August, the SHIB community eagerly anticipated the rollout of the burn program. However, the wait extended to four months as the protocol struggled to amass the required $25,000 in BONE until now.
The Shiba Inu team lauded the new burn mechanism as a “transformative” move strategically reducing tokens in circulation, potentially enhancing the token’s value and benefiting the Shibarium ecosystem.
In the inaugural Shibarium-linked burn, developers manually burned 8.2 billion SHIB (equivalent to around $76,000) on Tuesday.
The team will persist in manually executing these burns, mirroring user activity on Shibarium, until they introduce an automated burn mechanism in January. They anticipate that the automated model will follow predefined rules, providing benefits such as transparency and efficiency.
Shibarium’s Rising Adoption Signals Positive Outlook for SHIB Burns
Introducing a comprehensive burning model coincided with Shibarium experiencing a surge in adoption.
Recent reports from Fxcryptonews indicate that Shibarium processed over 20 million transactions within three days, surpassing early figures from the network’s inception.
This heightened transaction activity accelerates the burn program, with factors like increased gas fees on Shibarium contributing to more SHIB burns.
Overall, the Shiba Inu team assures the community that the future of token burns on the network appears promising. SHIB enthusiasts are optimistic that these efforts to reduce the token’s supply will yield positive results, potentially eliminating zeros in the upcoming bullish market.