- The Shiba Inu (SHIB) community has seen a remarkable surge in the coin’s burn rate, recording a significant increase over the past 24 hours.
- This rise coincides with the announcement of a forthcoming update to Shibarium, which will introduce a new burn mechanism for SHIB tokens.
- An astonishing 105,981,775 SHIB tokens have been burned recently, marking a 140,000% increase in the burn rate.
Discover how the SHIB community’s new burn mechanism is driving down the circulating supply and impacting the future of Shiba Inu.
Dramatic Surge in SHIB Burns
In a recent development, the Shiba Inu community has achieved a significant milestone by dramatically increasing the SHIB burn rate. Over the past 24 hours, an impressive 105,981,775 SHIB tokens have been taken out of circulation. This substantial quantity of SHIB was transferred in three separate transactions, predominantly handled by two major transfers from a single blockchain address. The burn rate soared to unprecedented levels, reaching a staggering 137,411%.
New Burn Mechanism to be Implemented in Shibarium
In light of this surge, Shiba Inu’s social media expert, Lucie, disclosed that a long-anticipated upgrade to the Shibarium blockchain is imminent. This update will introduce a burn mechanism linked directly to transaction fees on the network. Specifically, 70% of all base transaction fees will be converted to SHIB and burned permanently. This update aims to automate SHIB burns, transitioning from the manual burns conducted in previous instances to a more systematic approach.
The Role of Shytoshi Kusama
Shytoshi Kusama, the enigmatic lead behind the Shiba Inu project, has been a pivotal figure in orchestrating this transition to automated burns. Back in January, Kusama and the team had promised the SHIB community an efficient and consistent burn mechanism. The new system, set to roll out at block 6206570 on the Shibarium network, represents a fulfillment of that promise and a significant stride towards reducing the circulating supply of SHIB.
Implications for SHIB Price and Supply
Burn mechanisms like this one are crucial for reducing the circulating supply of cryptocurrencies, often leading to a positive impact on price over the long term. By converting transaction fees into SHIB and subsequently burning them, the Shiba Inu team aims to create a deflationary effect on the token. This strategy is expected to bolster market confidence and potentially drive up SHIB prices, benefiting long-term holders and new investors alike.
Conclusion
The recent surge in SHIB burns, coupled with the introduction of an automated burn mechanism on Shibarium, marks a pivotal development for the Shiba Inu community. With significant tokens being removed from circulation and a robust system in place for future burns, SHIB is poised for a potentially bullish outlook. This strategic move reinforces the community’s commitment to enhancing the token’s value and securing its place in the competitive cryptocurrency market.
