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- Shiba Inu has triggered the burning mechanism captured in its roadmap as developers eliminate 8.2 billion SHIB ($76,000).
- The whole process has been designed to ensure a correlation between network adoption and the burning exercise.
Shiba Inu’s effort to transition from a mere meme coin to a technically efficient project was marked with the introduction of its Ethereum layer-2 network, Shibarium. It was designed with the specific task of resolving Ethereum’s scalability difficulties while operating as a framework of the whole Shiba Inu ecosystem. Its roadmap includes the provision that ensures that the rate of transaction on the network impacts the burning of the Shib token. This was recently confirmed by Shiba Inu marketing specialist Lucie in an X’s post.
WE NEED TO USE #Shibarium. It won’t burn $SHIB if you don’t use it! Onboarding millions of people to Shibarium will take time and community effort. More information about burns will be revealed in the upcoming documentation. But it has been clearly explained in http://docs.shibariumtech.com for the past 6 months. Now, can we expect higher fees? OF COURSE! The more you use Shibarium, the higher the traffic, which drives up gas fees.
According to reports, 70 percent of the base fee is allocated to burning Shib, while 30 percent goes into ongoing maintenance.
As part of this initiative, the development team has announced that a new burning mechanism tied to Shibarium to boost the value of the token has been introduced. According to the roadmap, fees would be collected in Shibaswap (BONE), the network’s native gas fee token, and then converted to SHIB for burning once the $25,000 threshold is reached.
Shiba Inu Throws More Light on the Burning Mechanism
The Shiba Inu official blog post captures two major phases for the unveiled burning mechanism – the manual phase, and the automatic transition. With the manual phase, the burning phase would be managed by the official deployer wallet. This is to ensure that there is close monitoring and adjustments to improve the network’s health and sustainability.
The Automatic transition would start in January 2024. With this, the mechanism would transform into an automatic system. According to the post, there would be multiple upgrades under this phase to enhance efficiency and reliability. The team also confirmed that the success of this burning mechanism would rely on the adoption rate of the network.
The network will undergo several upgrades to streamline both the manual and automated burning processes. These upgrades are aimed at ensuring the burn mechanism is not only efficient but also adapts to the changing dynamics of the network’s usage. By continuously improving this process, Shibarium aims to maintain a balanced and robust economic model that can scale with the network’s growth.
The future is expected to become promising, and the mechanism could become the central component of the project’s economic strategy considering that there would be a correlation between the network usage and the burning efficiency.
On Tuesday, its first Shibarium-linked burn was executed with 8.2 billion SHIB ($76,000) successfully eliminated.
The current price action in response to the ongoing token burn has been excellent as Shiba Inu staged a 12.6% surge in the last 24 hours.
This sends its weekly gains to 21.8 percent. With a current price of $0.00001, Shiba Inu currently looks bullish with a perfect score of 100/100. Analysts expect the asset to finish the year with a maximum price of $0.000018.
