Shibarium Set to Auto-Burn SHIB Coins from Jan 2024

• Shiba Inu Team Announces End of Manual SHIB Token Burns
• Implications of the Transition to Automated Burns
• Shibarium's Approach to Burning SHIB Tokens
• Details of Initial Burns Remain Unknown
• SHIB and Ethereum's Current State

Shiba Inu Team Announces End of Manual SHIB Token Burns

The Shiba Inu$0.000010 -2.05% team recently announced that manual burns of SHIB tokens will cease this month. From January 2024, the Shibarium Layer-2 network will take over, automatically burning SHIB tokens. This transition to automated burns is intended to facilitate consistent reductions in the circulating supply of the token, thereby maintaining its scarcity value.

Implications of the Transition to Automated Burns

The shift towards automation will have significant impacts, most notably allowing Shibarium to burn SHIB tokens automatically once it accumulates a total of $25,000 in user fees. This innovative process may enable SHIB to scale up sustainably in the indices and record new metrics on the charts.

Shibarium's Approach to Burning SHIB Tokens

Shibarium uses fees from user-initiated transactions on the network to burn SHIB tokens. It is programmed to allocate 70% of these base transaction fees towards burning Shiba Inu tokens. The remaining 30% of the fee pool is used to sustain the Layer-2 network's operational functionality, creating a balanced 70%-30% split. Consequently, while the majority of the fees are devoted to burning SHIB, a significant portion is also dedicated to maintaining the network's infrastructure.

Details of Initial Burns Remain Unknown

As the inaugural burns have not yet commenced, the exact number of SHIB tokens that will be sent to the dead wallet is currently undetermined. It is clear, however, that for Shiba Inu to potentially reach the $0.01 milestone in the future, it will need to significantly reduce its circulating supply. Should Shibarium fail to burn trillions of tokens annually, the goal of reaching $0.01 may remain unattainable.

SHIB and Ethereum's Current State

At the time of this post, Ethereum$2,315 -2.42% was trading at $0.00000955, a decline of nearly 12% within a 24-hour trading period. Meanwhile, SHIB has experienced a significant decrease, sitting almost 89% below its all-time high of $0.00008616, achieved in October 2021.

Edited by Jonathan Stoker