HomeNewsShibarium Gains Momentum: 8.2 Billion SHIB Tokens Burned in Historic Event

Shibarium Gains Momentum: 8.2 Billion SHIB Tokens Burned in Historic Event

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  • Shiba Inu has implemented a new token burning mechanism on its layer-2 network, Shibarium, to elevate the SHIB token’s value.
  • The innovative mechanism is designed to burn SHIB tokens based on transaction activity, with the first burn removing 8.2 billion SHIB from circulation.

Shiba Inu’s Strategic Move to Boost Token Value

The Shiba Inu blockchain project has taken a significant leap forward with the rollout of an innovative burning mechanism for its ecosystem token. This move, heralded by the development team, marks the start of a new era of token burns linked to the network’s layer-2 platform, Shibarium.

Shibarium: A Catalyst for SHIB Token Burns

Shibarium stands out among layer-2 networks with its unique approach to token management. Central to Shibarium’s functionality is a feature that directly ties the rate of transactions on the network to the burning of SHIB tokens. In essence, increased transactional activity on Shibarium translates to a higher volume of SHIB burns. The network dedicates a substantial 70% of its base fee to this purpose, with the remaining 30% allocated for maintenance.

In practical terms, fees generated on the network in the native gas fee token, Shibaswap (BONE), are converted to SHIB for burning once they accumulate to a USD value of $25,000.

The Inaugural SHIB Burn and Future Plans

The highly anticipated burn program, following Shibarium’s launch in August, had its initial run delayed until the required $25K in BONE was amassed. The first burn under this new system saw 8.2 billion SHIB, valued at around $76,000, removed from circulation.

This process, currently manual and managed via the developer’s deployer wallet, reflects the Shibarium network’s user activity. However, the Shiba Inu team aims to transition to an automated burn mechanism by January. This upcoming model is expected to operate under predefined rules, enhancing transparency and operational efficiency.

Rising Network Adoption and Its Implications

Shibarium’s growing adoption has been a boon for the SHIB burn program. The network processed over 20 million transactions in just three days, a significant increase from its early performance. This surge in activity is poised to accelerate the SHIB token burning process, potentially increasing the token’s value.

The Shiba Inu team remains optimistic about the future of token burns on Shibarium. With these innovative strategies, SHIB enthusiasts and investors are hopeful that the reduction in the token’s supply will lead to notable gains, especially in a bullish market scenario.

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Ralf Klein is a computer engineer specializing in database technology, and as such, he was immediately fascinated by the possibilities of blockchain when he first heard about it, especially since this distributed, tamper-proof technology can be the foundation for much more than just cryptocurrencies. At ETHNews, he translates the articles of his English-speaking colleagues for the German readers. Business Email: info@ethnews.com Phone: +49 160 92211628