The Shiba Inu team confirmed in the latest blog that Shibarium will soon begin to ‘burn’ SHIB tokens. The announcement revealed that the Shibarium layer-2 network will introduce a new era of ‘burning’ SHIB tokens. Shibarium enables users to initiate transactions on the network making users to transfer value and interact with decentralized applications (dApps). A total of 35 million transactions have already been initiated on the Shiba Inu’s Shibarium network since its release in August this year.
Shiba Inu: Shibarium To Finally ‘Burn’ SHIB Tokens, Reveals Team
Shibarium would allocate 70% of the base fees that were initiated on the network to burn SHIB tokens. The rest 30% of the fees will be used to maintain and run the network. The network will collect the fees in Shibarium’s gas and governance token Bone. The Bone token will be converted into Shiba Inu tokens after it reaches a threshold of $25,000 in value.
Once the conversion from Bone to Shiba Inu is completed, Shibarium will burn SHIB tokens sending it to the dead wallet. The burning system will be automated and the network will relentlessly remove tokens from circulation. The more transactions are initiated on Shibarium, the faster the amount could reach the $25,000 mark.
“Starting in January, the mechanism will evolve into an automated system. This phase will witness multiple upgrades to enhance efficiency and reliability. The automated burn process will operate based on predefined rules, making it more efficient and transparent,” read the blog.
If Shibarium becomes a 24/7 burning mill, SHIB could enter the path of moving toward the $0.01 price target. The development will be welcomed by the SHIB community as investors are eagerly waiting for it to begin deleting zeroes. Therefore, from 2024 onwards, SHIB might begin to spike in price due to the upcoming burns.