Anika Begay
The Shibarium Network, a layer-2 solution based on the Shiba Inu blockchain, today introduced an automated burn mechanism. The upgrade will be effective starting at block 6,206,570 and was first announced by Lucie, Shiba Inu’s marketing manager, via X: “Starting at block 6206,570, the Shibarium Network will launch a long-awaited upgrade: a burn mechanism directly tied to transaction fees.”
Shibarium Will Finally Burn Automated Shiba Inu Token
According to Lucie’s announcement, the new feature will automatically convert 70% of all base transaction fees collected by the network into SHIB tokens that will then be permanently removed from circulation. “With this update, 70% of all base transaction fees collected on the network will be automatically converted into SHIB tokens and permanently removed from circulation via 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 transaction fees are earmarked for essential network operations, including maintenance and development, as well as broader ecosystem growth initiatives. Lucie said, “The remaining 30% of fees will be allocated to platform maintenance, development, and ecosystem growth initiatives. This update marks a significant step towards improving the sustainability and long-term value of the SHIB community.”
The burn mechanism will be introduced via a hard fork. The network update called “Bor version v1.1.2-bone” was launched today at 9:15 AM UTC. The official X account of the Shibarium Network confirmed it on X, urging all Shibarium node operators to update their nodes to version v1.1.2-bone:
We are launching a Hard Fork with the new Bor version! On August 9, 2024, at 9:15 AM UTC, we will launch the Bor v1.1.2-bone version. This version introduces a burn mechanism to improve our ecosystem. Get ready for the #BURN!
This update comes nearly a year after Shibarium’s initial launch on Shiba Inu’s mainnet on August 16, 2023, a development first unveiled at the Blockchain Futurist Conference in Toronto, Canada. Notably, the timing of Shiba Inu’s automated burning mechanism coincides with the upcoming annual conference, where Shiba Inu will once again take center stage as a gold sponsor from August 13-14, 2024.
A few weeks ago, SHIB lead developer Shytoshi Kusama highlighted 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 breaking news and outlining steps in our roadmap to becoming the ultimate decentralization hub.”
He also hinted at major announcements coming during this year’s Canada Crypto Week, saying, “We look forward to returning to ETHToronto as a headline sponsor and being extremely active during this year’s Canada Crypto Week.”
At press time, SHIB was trading at $0.00001416.
Featured image created with DALL.E, chart from TradingView.com
