Shibarium Unveils New SHIB Token Burn Mechanism

Shibarium, a project closely associated with Shiba Inu, recently shared an interesting preview of the burn mechanism of its SHIB token. Could this development pave the way for a spectacular price increase of the token to $0.0001?

Community eagerly awaits

SHIB BPP, an influential figure within the Shiba Inu community, has announced that a preview of the user interface of the SHIB token burning mechanism on Shibarium is available. An image of this interface was first presented by Twitter user “SHIB INFORMER”, who is known for his timely information and insights.

Despite being in beta phase, Shibarium continues to undergo constant development. Meanwhile, work is underway on the Shiba Inu ETH bridge, designed to facilitate the flow of assets between the two blockchains.

How exactly does the mechanism work?

When completing a transaction within the Shibarium network, the standard transaction fee is stored in a contract within Shibarium. The validator then receives a priority fee. Of this standard fee, 30% is allocated to maintaining the network, while the remaining 70% is eligible for incineration.

The burning process is activated once a specific amount of BONE, an additional token associated with Shiba Inu, has been built up in the contract. At the start of the process, the collected BONE is moved to the L1 layer of Ethereum. Here it is automatically converted to SHIB and then burned.

This mechanism has the effect of decreasing the total available token supply, analogous to a withdrawal transaction where tokens are destroyed instead of added.

The issue of token burning continues to be an important topic of conversation within the Shiba Inu community. There are even members who argue for a burn in the order of billions.

Recent trends

The burn rate of Shiba Inu tokens has experienced significant fluctuations recently. There were times when this ratio shot into the millions of percent, while at other times it fell to the bare minimum. A recent update on Twitter reported that only 575,043 SHIB tokens were burned in a single transaction during the last day, resulting in a daily burn rate of 0%.

However, the broader picture over the past week shows a different picture, with a total of 3 billion SHIB tokens destroyed. This translates to a 36.38% drop in the weekly burn rate, illustrating how fluctuating the token burn process can be within the Shiba Inu ecosystem.

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