The Shiba Inu team has confirmed an upcoming burning mechanism for SHIB tokens within the Shibarium layer-2 network. This innovative approach marks a new era for token burning within the Shiba Inu ecosystem, presenting a significant development announced in their recent blog.
Shibarium, established as a layer-2 network, aims to enable transactions and interactions with decentralized applications (dApps). Since its launch in August this year, it has already seen an impressive initiation of 35 million transactions, highlighting its rapid adoption and use among users.
The network will implement a mechanism where 70% of the base fees generated will be allocated for the burning of SHIB tokens. The remaining 30% will be utilized for the network’s maintenance and operations. These fees will be collected in the form of Shibarium’s native gas and governance token, Bone, which will later be converted into Shiba Inu tokens upon reaching a value threshold of $25,000.
Upon successful conversion, the Bone tokens will be used to burn SHIB tokens, effectively removing them from circulation by transferring them to a dead wallet. This burn process is expected to be automated, ensuring a continuous reduction in the number of SHIB tokens circulating. This automated mechanism, set to evolve and upgrade starting in January, promises enhanced efficiency and transparency in the burning process.
The intensified burning activity anticipated in Shibarium could significantly impact SHIB’s price trajectory, potentially aligning with the community’s aspiration to see reductions in zeros in the token’s value. The planned burns, anticipated to commence in 2024, are eagerly awaited by investors, fostering expectations of a potential surge in SHIB’s value as the supply diminishes. This development heralds a new phase for the token and its ecosystem, promising exciting possibilities for the future of Shiba Inu.
