Shiba Inu content marketer recently elaborated on the potential of Shibarium in increasing the burn rate of SHIB tokens, garnering widespread interest.
Lucie, the esteemed content marketer for Shiba Inu, recently took to Twitter to shed light on the game-changing impact of Shibarium in driving the burning of SHIB tokens. The tweet garnered 57.5k engagements, reflecting the community’s interest in the innovative feature.
$SHIB BURNS X #Shibarium, #Shibarium significantly impacts the Shib ecosystem by introducing a burning mechanism that reduces the supply of $SHIB . When users make transactions on the network, the base fee is locked on a Shibarium contract, while the priority fee is paid to… pic.twitter.com/uhqvwDWgdW
— (@LucieSHIB) June 30, 2023
In her tweet, Lucie underscored that Shibarium, the innovative Layer 2 protocol, will significantly reduce the supply of SHIB tokens through its revolutionary burning mechanism.
How Shibarium Works
As users engage in transactions on the network, the base fee is locked within a Shibarium contract. In contrast, the priority fee is allocated to validators. The base fee undergoes a division process, with 70% used to burn SHIB, while the remaining 30% is set aside to ensure network maintenance.
The fees are collected and piled up in BONE. To trigger the actual burn process, the accumulated BONE tokens residing in the burn contract come into play. These BONE tokens are exchanged for SHIB tokens, fueling the burn process and reducing the overall supply.
Additionally, Shibarium offers a user-friendly website that enables individuals to initiate burns with a simple click on the ‘Initiate burn’ button and subsequent confirmation of transactions. After completing this process, SHIB tokens are permanently eradicated from circulation.
Benefits of Shibarium
This burning mechanism within the Shiba Inu ecosystem ushers in numerous benefits. Firstly, it infuses the SHIB tokens with deflationary properties to reduce the token supply gradually.
This deflationary nature enhances the tokens’ value, fostering a sense of scarcity that benefits token holders. Moreover, the mechanism maintains an equilibrium between supply and demand within the Shiba Inu ecosystem.
Lucie further emphasized that this burning mechanism incentivizes user engagement. By accumulating BONE tokens and participating in the burning process, users effectively contribute to reducing the overall supply of SHIB tokens.
Lucie’s insights garnered considerable attention from the Shiba Inu community, with enthusiasts expressing high expectations regarding the burning potential. One community member optimistically mentioned the possibility of burning 20 trillion or 5 trillion tokens monthly.
However, this projected value remains speculative as of press time, as it is difficult to accurately predict the actual burn rate. The level of assistance that Shibarium will provide to Shiba Inu burns largely relies on the network’s adoption rate.
Similarly, another community member stressed the importance of timely implementation to capitalize on the ongoing bull season, enabling new players to familiarize themselves with the Shiba Inu ecosystem.