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The Shibarium network, a layer-2 solution built on the Shiba Inu blockchain, introduced an automated burn mechanism today. The update will be effective as of block 6,206,570 and was first announced by Lucie, the marketing lead of Shiba Inu, via X: “Starting at block 6206570, the Shibarium network will roll out a long-awaited update: a burn mechanism directly tied to transaction fees.”
Shibarium Will Finally Burn Shiba Inu Token Automated
According to Lucie’s announcement, the new feature will automatically convert 70% of all base transaction fees collected by the network into SHIB tokens which will then be permanently removed from circulation. “With this update, 70% of all base transaction fees collected on the network will be automatically converted to SHIB tokens and permanently removed from circulation through burning. This deflationary approach is designed to gradually reduce the total supply of SHIB, potentially increasing its value over time,” Lucie revealed.
The other 30% of the transaction fees are earmarked for essential network operations, including maintenance and development, as well as broader ecosystem growth initiatives. Lucie stated, “The remaining 30% of the fees will be allocated to platform maintenance, development, and ecosystem growth initiatives. This update marks a significant step toward enhancing the sustainability and long-term value of the SHIB community.”
The burn mechanism will be introduced via a hard fork. The network upgrade termed “Bor version v1.1.2-bone” went live today at 9:15 AM UTC. The official X account of the Shibarium Network confirmed this on X, urging all Shibarium node operators to upgrade their nodes to the v1.1.2-bone version:
We’re launching a Hard Fork with the new Bor version! On August 9, 2024, at 9:15 AM UTC, we’re launching Bor version v1.1.2-bone. This version introduces a burn mechanism to enhance our ecosystem. Get ready for the #BURN!
This update arrives nearly one year after Shibarium’s initial launch on the Shiba Inu mainnet on August 16, 2023, a development first unveiled at the Blockchain Futurist Conference in Toronto, Canada. Notably, the timing of the automated Shiba Inu burn mechanism aligns with the upcoming annual conference, where Shiba Inu will once again play a prominent role as a gold sponsor from August 13 to August 14, 2024.
A few weeks ago, SHIB lead developer Shytoshi Kusama emphasized the strategic importance of the event. As reported by Bitcoinist, Kusama teased, “ETHToronto has always been an important event for us when it comes to making news and outlining the steps on our roadmap to becoming the ultimate decentralization hub.”
He further hinted at significant forthcoming announcements during this year’s Canada Crypto Week, stating: “We look forward to returning to ETHToronto as a title sponsor and being extremely active during this year’s Canada Crypto Week.”
At press time, SHIB traded at $0.00001416.
SHIB price, 1-week chart | Source: SHIBUSDT on TradingView.com
Featured image created with DALL.E, chart from TradingView.com
