When the Shiba Inu burn mechanism built in Shibarium came up again, a key member of the SHIB team, content marketing specialist Lucie, decided to bring it up again. She sent a lengthy tweet outlining how it will function once the Shibarium mainnet is deployed.
SHIB burn mechanism explained in detail
Users perform transactions on Shibarium and pay petrol costs in BONE tokens, which powers the process. Shibarium validators receive the remainder of the money, which is divided into a basic fee (which is fixed in a Shibarium contract). The remaining 70% of the basic fee is then converted to SHIB and transferred to burnt (dead) wallets. Developers will receive 30% of the budget in order to keep the network up and running.
Burns benefit SHIB by reducing its vast supply; there are now almost half a quadrillion SHIB floating around the market. According to Lucie, users can burn SHIB tokens using the Shibarium website at their own discretion. SHIB becomes deflationary as a result, encouraging user interaction.
Here’s how else burning helps SHIB
Lucie emphasised that by lowering the amount of SHIB tokens in circulation, burns have the ability to provide holders with additional benefits since their SHIB tokens become more valuable and scarce as more meme tokens are transferred to non-spendable wallets and locked there permanently, increasing their value.
Burns also assist in keeping the supply-demand equilibrium in the Shiba Inu ecosystem in check because demand is anticipated to continue growing while the quantity of tokens in circulation is likely to decline.
As previously reported by U.Today, the SHIB community has destroyed a total of 50,258,924 SHIB in the last 24 hours, increasing the burn rate by more than 1,800%.
