The Shiba Inu ecosystem has reached a significant milestone with the introduction of an automated SHIB burn mechanism. This feature was initially announced on X and integrated into the Shibarium Layer-2 network through a hard fork on August 9, 2024, at 9:15 AM UTC.
The hard fork also introduced a new version of the Bor software, designated as v1.1.2-bone. This update has enhanced the overall performance and functionality of the Shibarium network.
A key component of this upgrade was the implementation of a burn mechanism that automatically reduces the circulating supply of SHIB tokens. This long-awaited feature had been a subject of much anticipation within the Shiba Inu community.
Originally announced in late 2023, the auto-burn mechanism was put through rigorous testing on Puppynet, the Shiba Inu ecosystem’s testnet, before its recent launch.
The burn mechanism operates by utilizing a portion of Shibarium’s transaction fees. Specifically, 70% of the base fee generated from each transaction is converted into SHIB tokens and permanently removed from circulation. The remaining 30% is allocated towards the maintenance and development of the Shibarium ecosystem.
This deflationary measure is expected to positively impact the value of the remaining SHIB tokens by reducing its overall supply. Lucie (@LucieSHIB), a prominent community figure and Shiba Inu marketing lead confirmed these details, clarifying earlier announcements regarding the burn mechanism.
It is important to note that this was the second hard fork for Shibarium in 2024. A previous upgrade in May focused on improving transaction speed and reducing gas fees. The recent hard fork represents another step forward in the development of the Shiba Inu ecosystem.
After this development, the SHIB burn rate experienced a significant surge. Over 410.72 trillion SHIB tokens have been burned to date, with more than 100 million SHIB destroyed within the week. This spike sent SHIB Burns up by almost 140,000%, and the auto-burn mechanism will increase the burn rate significantly.
The introduction of automated SHIB burns through the Shibarium hard fork is a substantial development for the Shiba Inu ecosystem. SHIB works with a deflationary model. By reducing the circulating supply of SHIB, this mechanism could positively influence the meme coin’s value and overall market performance.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
The Cryptocurrency ecosystem is changing and Cardano (ADA) is preparing for a crucial rally in…
Meme coins have been one of the more disappointing crypto sectors this summer as retail…
Market analyst EGRAG has shared a positive outlook for XRP, using the Super Guppy indicator…
Despite Bitcoin’s declining dominance, altcoins have shown resilience, indicating traders are adjusting how they mitigate…
Savvy traders knew that Q4 is going to inject bullish momentum into the market, and…
While established meme coins such as Dogecoin and Shiba Inu can still yield significant returns,…