Understanding SHIB Token Burns on Shibarium
The Shiba Inu community recently had concerns about the burning process of SHIB tokens on Shibarium, the project’s layer-2 (L2) blockchain network. To address these concerns, Lucie, Shiba Inu’s marketing lead, explained the mechanics of the process in a detailed statement on X (formerly Twitter).
Lucie started by explaining the bridging process between Ethereum (L1) and Shibarium (L2). When you bridge your SHIB to Shibarium, the original tokens are locked in the bridge contract, while a minted version of the token is created on Shibarium. This means that when you burn your Shib on Shibarium, you are actually burning the minted version, not the original tokens on Ethereum.
To ensure a proper burning process, Lucie provided a step-by-step guideline for developers and the community. If you want to burn SHIB on Shibarium, you need to bridge it back to Ethereum and then send it to the dead wallet.
Debate within the Shiba Inu Community
There has been an ongoing debate within the SHIB community about the impact of token burns on Shibarium. Critics argue that burns on L2 platforms like Shibarium don’t affect the circulating supply of SHIB tokens on Ethereum. They claim that burning tokens on L2 only burns minted versions, not the original tokens.
However, some community members argue that regardless of the layer, the goal is to remove tokens from circulation. The specific layer of burning is irrelevant in achieving this objective.
Hot Take: Clarifying SHIB Burns on Shibarium
The Shiba Inu community sought clarity regarding SHIB token burns on Shibarium. Lucie, Shiba Inu’s marketing lead, addressed these concerns by explaining the process in detail. When you bridge your SHIB to Shibarium, the original tokens are locked in the bridge contract, while a minted version is created on Shibarium. Burning SHIB on Shibarium burns the minted version, not the original Ethereum-based tokens. To ensure a proper burning process, Lucie provided a step-by-step guideline. Critics argue that token burns on L2 platforms don’t affect SHIB’s circulating supply on Ethereum. However, some community members believe that removing tokens from circulation is the ultimate goal, regardless of the layer.
By
By
By
By
By