Shiba Inu Introduces New Burning Mechanism for Shibarium
Shiba Inu has announced a new set of burning techniques for its Ethereum-based layer 2 blockchain solution, Shibarium. The purpose of this mechanism is to reduce the token supply and increase the value of SHIB and its ecosystem. The burn process will be divided into two phases: the Manual phase and the Automated Transition phase. The Manual phase will be managed by the official deployer wallet to ensure sustainability and health. During the Automated Transition phase, an automated system will be implemented to make the burn process more transparent and efficient. The first token burn resulted in 8.2 billion SHIB tokens being burned. This new burning mechanism is considered a major milestone for Shibarium’s development.
Increase in Transactions Leads to More Token Burning
Shibarium has experienced a significant increase in transactions, leading to higher gas fees and more tokens being burned. In just a few months, the number of daily transactions has gone from a few thousand to an average of 7 million. According to data from Shibarium Explorer, there have been a total of 36,730,230 transactions so far. This growth in network usage highlights the need for an effective burning mechanism to maintain token value and ecosystem health.
Hot Take: Shiba Inu Enhances Token Value with New Burning Mechanism
Shiba Inu’s introduction of a new burning mechanism for Shibarium demonstrates their commitment to enhancing token value and improving the network’s economic model. By strategically reducing token supply through burning, Shiba Inu aims to benefit the ecosystem and increase the value of SHIB. With the transition to an automated system in January next year, this burning mechanism will become more efficient and transparent. The surge in transactions on Shibarium further emphasizes the importance of maintaining a sustainable token economy through burning. Shiba Inu’s efforts in this area mark a significant milestone in the development of Shibarium and set a standard for blockchain token economics.
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