Shiba Inu's Shibarium Burn Mechanism: How Many SHIB Tokens Will be Incinerated by Shiba Inu?

Bombolo | News and Media

The impending release of Shibarium, the layer-2 network by Shiba Inu, has sparked numerous discussions regarding its burn mechanism. Speculations about Shibarium burning 111 trillion tokens per year have circulated, but these calculations were not officially confirmed by the Shiba Inu team. In this article, we delve into the hypothetical estimations surrounding Shibarium's ability to burn 111 trillion SHIB tokens.

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Hypothetical Estimations of Shibarium's Burn

Previously, the SHIB Discord moderator, Queenie, made calculations suggesting that Shibarium would burn 111 trillion tokens annually. However, these estimations were not officially acknowledged by the Shiba Inu team. To gain more insight into the subject, let's explore the details of Queenie's hypothetical calculations.

Insights from LucieSHIB, the Content Marketing Specialist

In response to the ongoing discussions, LucieSHIB, the content marketing specialist for the SHIB ecosystem, provided a comprehensive explanation of the burning process. Unlike Queenie's estimations, LucieSHIB refrained from mentioning a specific number of tokens that Shibarium could burn. Instead, she took to Twitter to share a detailed overview of the burn process and shed light on Shibarium's functionality.

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The Burning Process Explained

According to LucieSHIB, every transaction conducted on the Shibarium network will be divided into two parts: 70% and 30%. When users initiate a Shibarium transaction and pay the gas fee (transaction fee), this fee serves two distinct purposes. The first portion, which accounts for 70% of the fee, is utilized to burn SHIB tokens, while the remaining 30% is allocated for network maintenance. It's worth noting that BONE, the native gas token on the L2 network, is swapped for SHIB during the burn process.

LucieSHIB further clarified, stating, "Upon user transactions, the base fee is locked within a Shibarium contract, whereas the priority fee is paid to validators. The base fee is then divided, with 70% of it being burned and the remaining 30% set aside for network maintenance."

She continued, "The accumulated BONE tokens in the burn contract initiate the burn process on Ethereum's L1 network. BONE tokens are exchanged for SHIB tokens, which are subsequently burned, effectively reducing the overall supply."

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How Shibarium Transactions Contribute to Burning

Shibarium transactions play a pivotal role in the burning of SHIB tokens. When users engage in transactions on the network, the gas fees incurred become part of the burning mechanism. By allocating 70% of these fees for burning, Shibarium ensures a gradual reduction in the total supply of SHIB tokens. This process helps to maintain a healthy and sustainable ecosystem for the Shiba Inu community.

The Significance of BONE Tokens

BONE tokens hold significant importance within the Shibarium burn process. As the native gas token on the layer-2 network, BONE tokens are utilized during the swapping process with SHIB tokens. The accumulation of BONE tokens within the burn contract triggers the subsequent burning of SHIB tokens on Ethereum's L1 network.

In conclusion, the burn mechanism of Shibarium, the highly anticipated layer-2 network, has been a topic of intense discussion. While the hypothetical calculations of burning 111 trillion SHIB tokens per year remain unconfirmed, insights from LucieSHIB, the content marketing specialist for the SHIB ecosystem, shed light on the process. By dividing transactions into two parts and allocating 70% of the gas fees for burning, Shibarium aims to steadily reduce the total supply of SHIB tokens, fostering a sustainable environment for the Shiba Inu community.

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FAQs

1. Will Shibarium actually burn 111 trillion SHIB tokens per year?

   While hypothetical calculations have suggested this figure, the Shiba Inu team has not officially confirmed it. The exact number of tokens to be burned remains undisclosed.

2. What is the role of BONE tokens in the burn process?

   BONE tokens serve as the native gas token on the Shibarium layer-2 network. They are swapped for SHIB tokens during the burn process, ultimately contributing to the reduction of SHIB's circulating supply.

3. How do Shibarium transactions contribute to burning?

   When users engage in transactions on the Shibarium network, the gas fees incurred are divided into two portions: 70% for burning SHIB tokens and 30% for network maintenance. This helps gradually reduce the overall supply of SHIB tokens.

4. What is the significance of the Shibarium layer-2 network?

   Shibarium is a highly anticipated layer-2 network by Shiba Inu. It aims to improve scalability, reduce fees, and enhance the overall user experience within the Shiba Inu ecosystem.

5. Where can I learn more about Shibarium and its burn mechanism?

   For more information and updates on Shibarium and its burn mechanism, visit the official Shiba Inu website or follow their social media channels for the latest news and announcements.