Burning tokens or sending them to dead wallets has become pertinent in the Shiba Inu ecosystem. For the past few years, the community has been actively participating in regular token burns. Unfortunately, these efforts have had minimal impact on the price. As a result, the network has taken a proactive approach by incorporating a Shiba Inu burn mechanism into Shibarium.
The beta version of Shibarium, a layer-2 blockchain network was recently released. Along with the release, the network confirmed that this update will burn trillions of SHIB every year. Since Shibarium is still in its beta stage, the burn mechanism is also still underway. Nevertheless, a sneak peek of the user interface [UI] was shared on Twitter, offering a preview of what users can expect. SHIB INFORMER, a prominent member of the community shared a sneak peek of the Shib burn mechanism on Shibarium.
How will SHIB benefit from this with BONE as the central token for Shibarium?
It has been time and again revealed that BONE will be the primary token used in Shibarium. Therefore, several believe that the Shiba Inu burn mechanism could benefit BONE more than SHIB. However, Shibarium documentation reveals the process.
When a user carries out a transaction within the network, the initial fee is secured within a contract on Shibarium. During this time, the validator receives the priority fee. Out of the base cost, 30% will be allocated for network upkeep. The remaining 70% will be subjected to a burn mechanism.
Once a certain quantity of BONE has accumulated in the burn contract on Shibarium, users have the ability to initiate the burn process. Following this, the accumulated BONE tokens are transferred to Ethereum’s Layer 1. At L1, an automatic exchange takes place. This converts the BONE tokens into SHIB.
Subsequently, these SHIB tokens are burned by invoking the contract function, effectively removing them from circulation. This process occurs seamlessly once the burn process is activated on Shibarium. While the reveal of the mechanism’s UI did create a buzz on Twitter, it failed to influence the price of SHIB or BONE. SHIB was down by 2.07% over the last 24 hours. BONE, on the other hand, was trading for $0.7248 with a 3.50% daily drop.
With this sudden resurgence in SHIB price, holders are hoping that this can resume Shiba Inu’s path to reaching $0.0001.