Shiba Inu’s choking token supply is about to get a massive cut once the much-awaited Shibarium network launches, a Saturday update by Shibarium’s official Twitter handle “Shibarium Network” has revealed.
According to the post, each transaction on Shibarium will burn SHIB.
“While on our last post, we wanted to remind everyone that BONE serves as the required gas token for operability within Shibarium; we also would now like to formally announce that each Shibarium transaction will burn SHIB,” read the announcement.
Burning refers to sending tokens to a dead wallet address to reduce the circulating supply. Since its launch in 2020, Shiba Inu, the world’s second-largest meme cryptocurrency by market capitalization, has always posed a problem for the community due to the massive number of tokens in supply.
Whereas close to half of SHIB supply has already been destroyed, its adherents continue pushing for more burning tactics to reduce the remaining 589.6 trillion tokens. Theoretically, token burning is anchored on the fundamental economic principle that when supply exceeds demand for a good or service, prices fall and vice versa.
The announcement comes after the team hinted at Shibarium layer-2 protocol “launching soon”. In a thread of tweets on January 5, the developers thanked the Shiba community for “bringing such energy and excitement” surrounding the upcoming Shibarium Beta Network, which they noted would be a phased introduction.
The SHIB community was also forewarned against falling for rumours that other tokens apart from BONE would be required to utilize Shibarium.
“This is to confirm and validate, from us, the official source, that BONE is and remains the only token selected for gas fees and use. No other tokens will be necessary to operate within the protocol.”
According to the developers, Shibarium had been developed for Shiba Inu and not for the sake of other projects who claim ownership or speculation surrounding its operability dependency on any other tokens.
Furthermore, they noted that the layer 2 protocol belongs to the community adding that it would create a strong foundation for innovation and growth for the Shiba Inu ecosystem. Although the developers have yet to issue a soft date for the protocol’s launch, rumours suggest it could happen within the first quarter of 2023.
Meanwhile, the Shiba Inu community has been buzzing with excitement at the prospects of the launch providing a boon for the ecosystem’s tokens. In the past week, SHIB and BONE have grown by 23.68% and 29%, respectively, according to CoinMarketCap data.