- Shibarium developers are hard forking the network to introduce auto burns.
- SHIB’s auto burns have been a hot topic since the inception of Shibarium.
- Marketing executive explains the potential and calculation of SHIB burns.
Shiba Inu’s (SHIB) own Layer-2 blockchain Shibarium has been in operation for nearly a year. The community-focused L2 chain had seen immediate success with over 418 million transfers processed, 1.8 million registered crypto addresses and a stable average block time of five seconds.
Sponsored
However, a crucial component of Shiba Inu’s L2 chain has been missing since Shibarium’s inception and is finally ready to see the light of day. An automatic Shiba Inu (SHIB) burning mechanism, a highly-anticipated feature for SHIB custodians, is set to go live on August 9, 2024, at 9:15 AM UTC.
The Shibarium auto-burn mechanism will be part of the hard fork, dubbed Bor version v1.1.2-bone by Shibarium’s developer team. Centered around enhancing the chain’s performance and security, the hard fork will introduce a consensus for automatic SHIB burns that will mostly depend on the transaction fees garnered on Layer-2.
Here’s How Shibarium’s Auto Burn Works
As the Shiba Inu community, popularly known as SHIB Army, awaits the implementation on August 9, 2024, Shiba Inu’s marketing lead, Lucie, chimed in to give a more detailed explanation of how the new Shibarium burn consensus will operate. After the hard fork, Shiba Inu auto burns shall kick off at block #6206570.
From this point, the Shibarium network is set to accumulate 70% of the collected transaction fees and convert the funds to Shiba Inu (SHIB). Then, the converted SHIB will be eliminated for circulation by sending it to one of the burning addresses. Sporting a deflationary approach, this mechanism highly depends on using Shibarium L2.
On the other hand, the other 30% of the collected on-chain transfer fees will be allocated for Shibarium’s maintenance, further development, and Shiba Inu Ecosystem’s growth initiatives. The major development has caught the attention of the SHIB Army, with many holders excited to see how much SHIB can be burnt through the new system.
Meanwhile, the ecosystem’s main token, Shiba Inu, recouped 4.4% over the past 24 hours, breaking the week-long bearish pattern marked by a three-month low of $0.00001107 on August 5, 2024. As of press time, the 15th seated Shiba Inu coin is trading at $0.00001393, according to independent price aggregator CoinGecko.
On the Flipside
- At a remaining supply of 583.4T SHIB tokens, the community’s manual burns have mostly been too small to affect Shiba Inu coin’s price immediately.
- An automatic SHIB burning system can solve this issue, given that Shibarium’s network keeps its momentum with sufficient trading activity.
Why This Matters
Deflationary tokenomics can make cryptocurrency sustainable in the long term, adding value to the coin as the community grows.
Discover DailyCoin’s trending crypto news:
Ripple vs. SEC Lawsuit: A Full Timeline of the Legal Battle
Bitcoin Reclaims $60K Amid Wider Crypto Market Recovery
