Discussions have been vivid about the burn mechanism of the yet-to-be-released Shibarium layer-2 network. While rumors about Shibarium burning 111 trillion tokens every year made the rounds previously, the Shiba Inu team did not confirm the hypothetical calculations made by the SHIB Discord moderator Queenie. Read here to know more details about the hypothetical estimations of Shibarium’s ability to burn 111 trillion SHIB tokens.
Amidst all the hypothetical calculations, LucieSHIB, the content marketing specialist for the SHIB ecosystem gave a detailed explanation of the burning process. The difference is that the marketing specialist ‘didn’t give a number’ on how many tokens could Shibarium burn. She tweeted an in-depth explanation about the burn process and gave an insight into the functionality of Shibarium.
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Shiba Inu: SHIB Token ‘Burns’ Through Shibarium
LucieSHIB explained that every transaction on the Shibarium network will be divided into 70% and 30%. When a user initiates a transaction of Shibarium and pays the gas fee (transaction fee), the fee will be used for two separate causes. To make transactions on the network, ‘priority fees are charged and will be used to pay the validators.
70% fee on Shibarium will be used to burn SHIB tokens, while 30% will be set aside for network maintenance. BONE is the native gas token on the L2 network and will be swapped to SHIB during the burn process.
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“When users make transactions on the network, the base fee is locked on a Shibarium contract, while the priority fee is paid to validators. The base fee is divided, with 70% burned and 30% set aside for network maintenance,” said LucieSHIB.
She added, “Accumulated BONE tokens in the burn contract trigger the burn process on Ethereum’s L1 network. BONE tokens are swapped for SHIB tokens, which are then burned, effectively reducing the total supply.”
You can read more details about the Shiba Inu token’s burn process and mechanism in the tweet below.