The Shiba Inu team has confirmed that the Shibarium Layer 2 network will officially begin burning SHIB tokens starting January 2024. The burned tokens will be sent to a dead wallet, permanently removing them from circulation. This initiative aims to reduce SHIB's circulating supply, increasing scarcity and potential value.
In their latest blog post, the team announced that Shibarium's token burn mechanism will launch as early as January 2024. This marks Shibarium's first implementation of a burn system this year, a highly anticipated move among SHIB investors hoping to see trillions of tokens removed from supply.
Shiba Inu Burn Mechanism: How It Works
The long-awaited burn mechanism will operate at full capacity beginning January 2024. Shibarium charges users a fee for initiating transactions on the network, and these fees will fund SHIB burns:
- 70% of base fees will permanently remove Shiba Inu tokens from circulation.
- 30% will maintain network operations.
The burn process triggers once accumulated fees reach $25,000. Upon hitting this threshold, the first batch of SHIB will be sent to the dead wallet. The exact number of tokens burned remains undisclosed; further details will be released by the team in January.
Impact on SHIB's Future
Large-scale burns could support sustained price growth for SHIB over time. A key investor goal is reaching the $0.01 milestone, though whether burns alone can achieve this depends on broader market factors.
👉 Learn how Shibarium's burn mechanism boosts SHIB's value
FAQ
Q1: Why is Shibarium burning SHIB tokens?
A1: Burning reduces circulating supply, increasing scarcity and potentially raising SHIB's market value.
Q2: How often will burns occur?
A2: Burns activate each time $25,000 in transaction fees accumulates, with frequency depending on network activity.
Q3: Where do burned tokens go?
A3: They're sent to a dead wallet—an inaccessible address—ensuring permanent removal.
Q4: Will burns guarantee SHIB reaches $0.01?
A4: Burns help, but price depends on multiple factors like demand, adoption, and market conditions.
👉 Discover Shibarium's role in the Shiba Inu ecosystem