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- The automated SHIB burn mechanism, implemented via Bor software v1.1.2-bone, uses 70% of Shibarium’s transaction fees to convert into SHIB tokens and burn them.
- Following the introduction of the auto-burn feature, the SHIB burn rate has surged dramatically, with over 410.72 trillion SHIB tokens burned to date and more than 100 million burned this year.
The introduction of the automated SHIB burn mechanism has reached a significant milestone in the Shiba Inu ecosystem. After being announced for the first time on X, this feature was integrated into the Shibarium Layer-2 network via a hardfork last week, August 9.
The hardfork introduces a new version of the Bor software, v1.1.2-bone, which helps to enhance the overall functionality and performance of the Shibarium Network. One of the key components of this upgrade was implementing the burn mechanism, which would automatically reduce the circulating supply of the SHIB tokens. This was one of the most long-awaited features within the Shiba Inu community.
After being introduced for the first time in 2023, Shiba Inu’s ecosystem testnet Puppynet rigorously tested the auto-burn mechanism before the final launch. This burn mechanism operates by using a portion of Shibarium’s transaction fees.
Currently, 70% of the base fee generated from each transaction on Shibarium is converted to SHIB tokens and permanently removed from circulation. The rest, 30%, goes to the development and maintenance of the Shibarium ecosystem, per the Crypto News Flash report.
This deflationary initiative aims to enhance the value of the remaining SHIB tokens by decreasing the overall supply. Lucie (@LucieSHIB), a notable community member and Shiba Inu marketing lead, confirmed these details and clarified previous announcements about the burn mechanism.
🔥Shibarium BURNS UPDATE 🔥
Starting at block 6206570, the Shibarium network will roll out a long-awaited update: a burn mechanism directly tied to transaction fees. With this update, 70% of all base transaction fees collected on the network will be automatically converted to… pic.twitter.com/D4hkfvAP3H
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) August 8, 2024
The SHIB Ecosystem Entering A New Phase
The Shiba Inu ecosystem is entering a new phase as the Layer-2 Network Shibarium undergoes its second hardfork in 2024. The previous upgrade in May focused on reducing the gas fee while improving the transaction speed. The recent hardfork, reported by CNF, is another step in improving the Shiba Inu ecosystem.
Following this development, the SHIB burn rate surged significantly. So far, more than 41,0.72 trillion SHIB tokens have been burned, and more than 100 million SHIB were destroyed this year. This surge has driven SHIB burns up by nearly 140,000%. The auto-burn mechanism is expected to boost the burn rate further significantly.
With the introduction of automated SHIB burns via the Shibarium hard fork, the rate of SHIB moving out of circulation will increase. This would positively influence the SHIB price and the overall market performance. As per the CNF report, the Shiba Inu burn rate surged by a staggering 38,199,412% in the last 24 hours, leading to a brief price spike of $0.00001468, reported CNF. However, the SHIB price has come under the influence of the broader market volatility and is currently trading 5.10% down at $0.00001368 with a market cap of $8.05 billion.
