In the most recent blog post, the Shiba Inu team officially verified that Shibarium is poised to commence the process of ‘burning’ SHIB tokens. The disclosure outlined that the introduction of this token-burning mechanism on the Shibarium layer-2 network heralds a new phase for Shiba Inu tokens. Shibarium empowers users to engage in transactions on the network, facilitating the transfer of value and interaction with decentralized applications (dApps). Notably, the Shibarium network, launched in August of this year, has already witnessed a substantial 35 million transactions.
Shiba Inu’s Milestone: Shibarium Set to Commence ‘Burning’ of SHIB Tokens
Shibarium plans to allocate 70% of the base fees generated on the network towards the burning of SHIB tokens, while the remaining 30% will be earmarked for the network’s maintenance and operations. These fees will be collected in Shibarium’s gas and governance token, Bone. Upon reaching a value threshold of $25,000, the Bone token will be converted into Shiba Inu tokens. Following this conversion, Shibarium will execute the burning of SHIB tokens by transferring them to a designated dead wallet. The burning process will be automated, ensuring a continuous reduction of tokens in circulation. The acceleration of transactions on Shibarium will contribute to a quicker attainment of the $25,000 threshold.
“Starting in January, the mechanism will evolve into an automated system. This phase will witness multiple upgrades to enhance efficiency and reliability. The automated burn process will operate based on predefined rules, making it more efficient and transparent,” read the blog.
Should Shibarium evolve into a continuous 24/7 token burning mechanism, there is the potential for SHIB to progress toward the envisioned $0.01 price target. This advancement would be enthusiastically embraced by the SHIB community, as investors eagerly anticipate the elimination of zeroes from the token value. Consequently, starting in 2024, there is the prospect of SHIB experiencing a notable increase in price, attributed to the anticipated ongoing token burns.