Shib CoOp Announces Premiere SHIB Token Burn on Shibarium
In a significant development for the Shiba Inu community, Shib CoOp, a Metaverse real estate project, has announced the premiere SHIB token burn on Shibarium. This marks a significant step forward for the Layer-2 (L2) blockchain network built on Ethereum. Shibarium, which launched over two months ago, is designed to host various decentralized applications (dapps), potentially increasing the number of SHIB burns.
The Inaugural SHIB Burn on Shibarium
Yesterday, Shib CoOp conducted the inaugural SHIB burn through an application on Shibarium. This event solidifies Shibarium’s promise and potential. The burn was confirmed by Shibariumscan, a dedicated blockchain explorer for the Shibarium network. However, it appears that this burn may not have the intended impact on SHIB’s circulating supply.
Shibburn’s Response to the Claim
Shibburn, a community-led burn tracker, quickly responded to the claim made by Shib CoOp. They explained that burns on L2 do not directly affect SHIB’s total supply on Ethereum’s Layer-1 (L1) network, where Shiba Inu’s original contract resides. Burning SHIB on Shibarium only burns a different token on the L2 chain, which represents the original token but is not the original token itself.
Confusion About Shiba Inu (SHIB) Burns
The confusion arises from the disparity between L1 and L2 networks. Burning SHIB on Shibarium does not result in the destruction of equivalent SHIB tokens on Ethereum. To impact SHIB’s actual supply, the burn would need to occur on Ethereum’s L1 network. Some argue that the goal is to remove these tokens from circulation, regardless of the layer on which it’s executed.
The Complications of Bridging Tokens
Bridging tokens further complicate the situation. When tokens are bridged from L1 to L2, the L1 tokens are stored in a specific contract, while corresponding L2 tokens are minted. Burning tokens on L2 does not destroy the original L1 tokens. Instead, only the newly minted L2 tokens are sent to the burn wallet on L2.
Shibburn’s Stance and Unanswered Questions
Shibburn emphasizes that tokens cannot be considered “burnt” unless they come from the same contract. The development team and marketing lead of Shiba Inu have not commented on this issue yet. It is also unclear whether a bridge needs to be developed to sync SHIB burns from L2 to L1.
Hot Take: Shiba Inu Price and Conclusion
At present, Shiba Inu is trading at $0.00000674 and remains below the neckline of the descending triangle at $0.00000715.
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