The Shibarium network, a layer-2 solution built on the Shiba Inu blockchain, has introduced an automated burn mechanism, effective from block 6,206,570. This development, announced by Shiba Inu’s marketing lead Lucie via X, marks a significant advancement in the network’s efforts to enhance the value of the SHIB token through a deflationary model.
How the Burn Mechanism Works
The new feature automatically converts 70% of all base transaction fees collected on the network into SHIB tokens, which are then permanently removed from circulation through burning. Lucie explained, “This deflationary approach is designed to gradually reduce the total supply of SHIB, potentially increasing its value over time.” The remaining 30% of the transaction fees will be used for essential network operations, including maintenance, development, and broader ecosystem growth initiatives.
Network Upgrade Details
This burn mechanism was introduced through a hard fork named “Bor version v1.1.2-bone,” which went live today at 9:15 AM UTC. The Shibarium Network’s official X account confirmed the launch, urging all node operators to upgrade to the new version to incorporate the burn mechanism into their operations.
Strategic Timing and Future Announcements
The introduction of this automated burn mechanism comes nearly a year after Shibarium’s initial launch on the Shiba Inu mainnet in August 2023. The timing of this update coincides with the upcoming Blockchain Futurist Conference, where Shiba Inu will once again serve as a gold sponsor.
Shytoshi Kusama, SHIB’s lead developer, emphasized the strategic importance of this event, hinting at significant announcements to be made during Canada Crypto Week. Kusama stated, “We look forward to returning to ETHToronto as a title sponsor and being extremely active during this year’s Canada Crypto Week.”
Current Market Impact
As of now, SHIB is trading at $0.00001416, with the market closely watching the potential impact of this new deflationary measure on the token’s value.
