- Clarification on SHIB Burns: Shiba Inu’s marketing lead, Lucie, provides vital clarifications regarding the SHIB burning process on Shibarium, emphasizing the distinction between burning tokens on Layer 1 (L1) Ethereum and Layer 2 (L2) Shibarium.
- Understanding the Bridging Process: An in-depth explanation of the bridging process between Ethereum and Shibarium, highlighting the mechanics of token burns and their impact on circulating supply.
Deciphering SHIB Burns on Shibarium
In recent times, the Shiba Inu community has found itself entangled in discussions and queries regarding the burning process of SHIB tokens on Shibarium, the project’s Layer 2 blockchain network. Lucie, the marketing lead for Shiba Inu, took it upon herself to provide clarity and dispel any misconceptions surrounding this process.
Bridging Tokens and Its Impact on SHIB Burns
Initiating the discourse, Lucie detailed the bridging process between Ethereum (Layer 1) and Shibarium (Layer 2). In her explanation, she delineated that upon bridging SHIB to Shibarium, the original SHIB tokens get locked in a bridge contract on Ethereum, whilst an equivalent token version is minted on Shibarium. This process is pivotal to understand as it implies that the Ethereum-based SHIB tokens are momentarily out of circulation, yet not obliterated.
Making a crucial distinction, Lucie stated,
“When you decide to burn your SHIB on Shibarium, you are essentially burning the minted version, leaving the original tokens in the bridge contract on Ethereum.”
This revelation is significant as it elucidates that the act of burning SHIB tokens on Shibarium does not directly diminish the total supply of SHIB tokens on the Ethereum network.
Guidelines and Community Engagement
In light of these complexities, Lucie proffered guidelines particularly aimed at developers and community members involved in the Shibarium project. She instructed,
“To execute a proper burn, bridge your SHIB back to Ethereum and send it to the dead wallet.”
Addressing a community member’s assertion that locking SHIB tokens in the bridge contract indefinitely effectively simulates a ‘burn’, Lucie concurred, adding that the tokens are indeed out of circulation, albeit not in dead wallets.
Layer 1 vs Layer 2: A Community Debate
This clarification from Lucie comes amidst an ongoing debate within the SHIB community. Some community members argue that regardless of the layer, the primary objective remains to remove SHIB tokens from circulation. On the other hand, entities like Shibburn maintain that there’s a fundamental difference between token burns on Layer 1 and Layer 2, with burns on the latter not impacting the total supply on Ethereum.
As the community continues to navigate these complex dynamics, Lucie’s intervention serves to provide clarity, ensuring that community members are well-informed and can participate in the ecosystem with a comprehensive understanding of the processes at play.