March 27, 2024
Shiba Inu's Shibarium Initiates Automated SHIB Burns
Altcoins News

Shiba Inu’s Shibarium Initiates Automated SHIB Burns

The Shiba Inu ecosystem team has disclosed its intentions to initiate automated SHIB burns powered by Shibarium from January 2024 onwards. This significant development was officially announced through a blog post shared by the team in December.

The outlined plan in the blog post details two phases for executing Shibarium burns: manual and automatic.

In the manual burn phase, the team commenced the process on December 4, 2023, by sending 8.24 billion SHIB tokens to a dead wallet. Subsequently, within an 18-day span, three additional manual burns were conducted, totaling Shibarium burns to 33.8 billion.

The automated burn phase is scheduled to commence this month, as stated in the blog post. The automated mechanism will operate according to predefined rules. The Shibarium document previously specified that the L2 blockchain would burn SHIB using a portion of the network’s gas fees. Specifically, 70% of the network’s base fee will be reserved to purchase and burn SHIB.

Given that Bone ShibaSwap (BONE) serves as the official gas fee for the network, the system will initially convert these tokens to SHIB before transferring them to a dead wallet. Each time the Shibarium burn contract reaches $25,000 in BONE, the system will use Shibarium fees to burn SHIB, automatically converting BONE to SHIB and sending the equivalent to the dead wallet.

It is crucial to note that the SHIB price will influence the number of tokens burned on Shibarium. While the manual phase saw the burn contract surpassing the $25,000 threshold before execution, the automated system is designed to incinerate lesser amounts of SHIB each time the threshold is reached. However, automated burns will occur more frequently than their manual counterparts.

As Shibarium continues to burn SHIB, it is anticipated that the token’s substantial circulating supply will experience a significant reduction. Currently, over 410.69 trillion SHIB have been burned, with Shibarium poised to contribute to this figure through its automated burn mechanism.

Image by catalyststuff on Freepik

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