The Layer 2 network for Shiba Inu, Shibarium, has announced a significant update: an automated SHIB burn mechanism through a hard fork.
This change aims to reduce the token supply and potentially increase its value. Shibarium Set for Major Upgrade with Bor v1.1.2-bone
The upcoming hard fork will significantly change Shibarium. Following the fork, a new version called Bor v1.1.2-bone will be released. This update will improve the Shiba Inu blockchain’s performance.
We’re launching a Hard Fork with the new Bor version! 🛠️
On August 9, 2024, at 9:15 AM UTC, we’re launching Bor version v1.1.2-bone. This version introduces a burn mechanism to enhance our ecosystem.
Get ready for the #BURN! 🔥
— Shibarium Network (@ShibariumNet) August 8, 2024
Also, it will introduce the automated SHIB burn mechanism linked to Shibarium’s transaction fees. These fees are split into two parts: priority fees and base fees.
Priority fees go to validators who maintain the network, while a portion of the base fees will be used to automatically burn SHIB tokens. Lucie, the marketing lead for Shiba Inu, provided more details about the burn process.
🔥Shibarium BURNS UPDATE 🔥
Starting at block 6206570, the Shibarium network will roll out a long-awaited update: a burn mechanism directly tied to transaction fees. With this update, 70% of all base transaction fees collected on the network will be automatically converted to… pic.twitter.com/D4hkfvAP3H
— (@LucieSHIB) August 8, 2024
She confirmed that 70% of the base fee will be converted to SHIB and burned, permanently removing these tokens from circulation.
Meanwhile, the remaining 30% of the base fee will support the ecosystem. These funds will go towards maintaining and developing the Shibarium network.
This balanced approach aims to reduce token supply while ensuring network growth. Reducing the total supply could increase the value of the remaining tokens. This has been a long-awaited feature for many in the Shiba Inu community.
Impact and Community Response
The announcement of the automated burn mechanism has generated excitement in the Shiba Inu community. Many supporters have been eagerly waiting for this feature, which they see as a way to address SHIB’s ample token supply.
Notably, this hard fork is Shibarium’s second major upgrade in 2024. The previous upgrade in May brought faster transactions and more predictable fees.
It also improved the overall network performance. The upcoming change builds on these improvements while adding the burn mechanism. Before now, the Shiba Inu ecosystem has already seen significant token burns.
Its community members and Ethereum co-founder Vitalik Buterin have burned over 410.72 trillion SHIB tokens. Additionally, Shibarium has already burned over 56 billion SHIB using a portion of its base fees.
Also, recent data shows a dramatic increase in SHIB’s burn rate. In the 24 hours before the announcement, the burn rate spiked by 137,411%.
During this period, more than 105 million SHIB tokens were destroyed. Over the past week, 114 million plus SHIB tokens have been destroyed, representing an increase of over 366% within this period.
Meanwhile, Shiba Inu ($SHIB) traded around $0.00001404, representing a gain of 5.76% in the past 24 hours.
With a market cap of over $8.27 billion, SHIB is still the second-largest meme coin in the crypto market. The automated burn mechanism is expected to accelerate this process by reducing the token’s supply faster and making it easier to predict over time.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
