The Shibarium layer-2 network will officially start burning SHIB tokens from January 2024 onwards, confirmed the Shiba Inu team. The burned tokens will be sent to the dead wallet never to be recovered again. The move will help SHIB to reduce its circulating supply making the token scarce. The team confirmed in the latest blog that Shibarium will begin burning Shiba Inu tokens as soon as January 2024.
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This will be the first time that Shibarium will initiate its burn mechanism coming this year. The burns are highly anticipated as SHIB investors want to see trillions of tokens being taken out of supply. The more number of burns initiated on Shibarium, the better prospects for SHIB in the coming months in the charts.
Shiba Inu: Shibarium Burn Mechanism To Be Fully Functional From January 2024 Onwards
The much-awaited burn mechanism will be fully functional from January 2024 onwards. Shibarium collects fees from users to initiate transactions on the network and the amount will be utilized to burn SHIB. 70% of the base fees will be allocated to remove Shiba Inu tokens from circulation and the rest 30% will be used to maintain the network.
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The network will initiate burns after it collects a total of $25,000 in total fees from users. Once, the bracket of $25,000 is achieved, the first burn process will go live. However, the number of tokens that will be sent to the dead wallet remains unknown. More details about it will be provided by the team in January next month.
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In conclusion, a large number of burns will help SHIB to sustainably scale up in price over the years. The main target for investors is to reach the $0.01 milestone. However, whether burns can help make SHIB reach the target or not, only time will tell.