The Shiba Inu team confirmed in the latest blog that burning SHIB tokens manually will come to a halt this month. The team mentioned that the Shibarium layer-2 network will soon begin to burn SHIB tokens automatically from January 2024. Shibarium will transition to automation and will be programmed to burn tokens automatically putting an end to manual burns.
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The development will aid Shiba Inu to start reducing its circulating supply and help the token to remain scarce. Shibarium will automatically burn SHIB tokens after it collects a total of $25,000 in total fees from users. This could make SHIB sustainably scale up in the indices and reach new numbers in the charts.
Shiba Inu: How Does Shibarium ‘Automation’ Works To Burn SHIB? Explained
Shibarium charges fees from users to initiate transactions on the network and the amount will be used to burn SHIB. 70% of the base fees will be allotted to burn Shiba Inu tokens on Shibarium.
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The rest 30% of the fees allocated will be used to maintain the layer-2 network’s functionality. Therefore, the Shibarium network works on a 70% – 30% ratio. While 70% of the fees will be utilized to burn SHIB, 30% will be used to maintain the network.
However, the first burns are yet to begin, therefore the number of SHIB tokens that will be sent to the dead wallet remains unknown. Shiba Inu needs to reduce its circulating supply considerably to reach the $0.01 milestone in the future. If Shibarium fails to burn trillions of tokens each year, then reaching $0.01 will remain to be a distant dream.
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At press time, Ethereum was trading at $0.00000955 and is down close to 12% in the 24-hours day trade. SHIB is down nearly 89% from its all-time high of $0.00008616, which it reached in October 2021.