In a recent series of events, the Shiba Inu (SHIB) ecosystem has witnessed both a security breach and a groundbreaking development. Lookonchain’s Twitter account revealed that PolyNetwork fell victim to another attack, resulting in a significant number of assets being minted by hackers.
Notably, the hackers sold 94 billion SHIB for 360 ETH, 495 million COOK for 16 ETH, and 15 million RFuel for 27 ETH. Additionally, the hackers have been observed transferring assets and 1 ETH to new wallets, presumably for the purpose of sale.
Simultaneously, MetisDAO acknowledged the ongoing situation with PolyNetwork and assured the community that funds on the Metis Andromeda platform remained secure. However, the newly minted BNB and BUSD on Metis lacked sell liquidity, a circumstance that is being closely monitored and addressed.
MetisDAO has been in contact with the PolyNetwork team to minimize the impact of the attack and gather more information.
Binance CEO took to Twitter to clarify that this incident does not affect Binance users, as they do not support deposits from the affected network. Nevertheless, their security team is actively assisting with the investigations.
LUCIE Unveils The Shiba Inu Token Burning Mechanism
Before this incident, an intriguing development emerged within the Shiba Inu ecosystem. LUCIE, the Shiba Inu Ecosystem Official – Content Marketing Specialist, disclosed on Twitter that the introduction of Shibarium has brought forth a revolutionary token-burning mechanism called Shibarium. This mechanism plays a pivotal role in reducing the supply of SHIB tokens.
The Shibarium burning mechanism functions as follows: when users conduct transactions on the network, the base fee is locked within a Shibarium contract. Meanwhile, the priority fee is paid to validators. Of the base fee, 70% is burned, and the remaining 30% is allocated for network maintenance.
Accumulated BONE tokens trigger the burn process on Ethereum’s Layer 1 network. Subsequently, BONE tokens are exchanged for SHIB tokens, which are then permanently removed from circulation, effectively reducing the total supply.
This burning mechanism offers several notable advantages. Firstly, it introduces deflationary aspects to SHIB tokens, gradually reducing the supply over time. Consequently, token holders may experience increased value and scarcity.
Secondly, the mechanism helps maintain a balance between supply and demand within the SHIB ecosystem. With a reduced number of tokens in circulation, assuming demand remains steady or increases, it could lead to price appreciation.
By engaging in Shibarium’s user-friendly portal, users can actively participate in reducing the SHIB token supply. Through the initiation of burns, users contribute to permanently removing SHIB tokens from circulation, thereby impacting the total max supply.
Related Reading | Shiba Inu Ecosystem Sparks Excitement With Major Update: “Worldpaper”