advertising
Shiba Inu’s suffocation token stash is on the verge of a massive cut once the long-awaited Shibarium Network launches, a Saturday update from Shibarium’s official Twitter handle, “Shibarium Network,” revealed.
According to the post, every transaction on Shibarium will burn SHIB.
“During our last post, we wanted to remind everyone that BONE serves as a required gas token for functionality within Shibarium; We would also now like to officially announce that any Shibarium transaction will burn SHIB,” the announcement said.
Burning refers to sending tokens to a dead wallet address to reduce the circulating supply. Since its launch in 2020, Shiba Inu, the second largest meme cryptocurrency in the world by market cap, has always presented a problem for the community due to the massive number of tokens on offer.
While almost half of the SHIB stash has already been destroyed, its followers continue to push for more burning tactics to reduce the remaining 589.6 trillion tokens. In theory, token burning is based on the fundamental economic principle that prices fall when supply exceeds demand for a good or service and vice versa.
advertising
The announcement comes after the team indicated that the Shibarium Layer 2 protocol “will launch soon.” In a thread of tweets on Jan. 5, developers thanked the Shiba community for bringing “such energy and excitement” to the upcoming Shibarium Beta Network, which they said would be a phased rollout.
The SHIB community was also warned not to fall for rumors that tokens other than BONE would be required to leverage Shibarium.
“This is to confirm and validate from us, the official source, that BONE is and remains the only token chosen for gas fees and usage. No additional tokens are required to operate within the protocol.”
According to the developers, Shibarium was created for Shiba Inu and not for other projects claiming ownership or speculation on the dependence of the functionality on other tokens.
Additionally, they noted that the Layer 2 protocol is owned by the community, adding that it would provide a strong foundation for innovation and growth for the Shiba Inu ecosystem. Although the developers have not yet announced a soft date for the launch of the protocol, rumors suggest that it could happen in the first quarter of 2023.
Meanwhile, the Shiba Inu community was excited at the prospect of the launch, which is a boon to the ecosystem’s tokens. Over the past week, SHIB and BONE are up 23.68% and 29%, respectively, according to CoinMarketCap data.