New Approach to Incinerate SHIB Unveiled by SHIB Developers
In a recent development, the Shiba Inu team has announced a novel approach to burn SHIB coins, focusing on integrating token burning within their gaming projects and transactions on the Shibarium network.
Lucie, the Shiba Inu team's marketing lead, emphasized that this strategy aims to reward the community while simultaneously reducing the total supply of SHIB tokens. This dual approach supports the token's deflationary model and shifts the focus towards revenue-generating products, rather than relying on a dedicated treasury.
The new mechanism works in two ways:
- Gaming Integration: Players can earn SHIB tokens as rewards during gameplay.
- Automatic Burns via Transactions: Every transaction on the Shibarium Layer-2 blockchain involves a portion of fees that are converted into SHIB and burned, thereby decreasing the circulating supply.
The burn mechanism is designed to be ongoing and automatic, making token scarcity increase as network usage grows. This focus on sustainability and decentralization is a key aspect of the Shiba Inu project's vision.
In addition to this, Shiba Inu has also implemented a weekly token-burning strategy based on liquidity pool revenue, further reinforcing its commitment to reducing supply and increasing scarcity.
Interestingly, Lucie claimed that SHIB has surpassed Dogecoin as "the people's coin." As of now, Dogecoin occupies the 8th spot on CoinMarketCap with a market capitalization of $35.4 billion, while Shiba Inu is in the 22nd spot with a market capitalization of $7.9 billion.
However, it's important to note that there is a lack of projects building on Shibarium, the Shiba Inu blockchain. Lucie attributed this to the high cost of building new products, emphasizing the need for products to generate their own revenue before they can be built.
This approach builds on the foundation laid by the Shibarium network, which since its launch in August 2023, has embedded automatic burning into transactions by converting a percentage of gas fees paid in BONE (Shibarium’s gas token) into SHIB tokens to be burned. The gaming push amplifies burn activity by incentivizing ecosystem engagement with token rewards and transaction-linked burns.
In summary, the new SHIB burning method combines token rewards in Shiba Inu games with automated burns embedded in Shibarium network transaction fees, creating a sustainable, user-driven token deflation mechanism championed by Lucie and the Shiba Inu team.
- The Shiba Inu team's novel strategy for burning SHIB coins includes integrating token burning within gaming projects and transactions on the Shibarium network.
- The new mechanism includes gaming integration, where players can earn SHIB tokens as rewards during gameplay, and automatic burns via transactions, where a portion of fees on the Shibarium Layer-2 blockchain are converted into SHIB and burned.
- Shiba Inu has implemented a weekly token-burning strategy based on liquidity pool revenue, further reinforcing its commitment to reducing the total supply of SHIB tokens.
- As of now, Dogecoin, the 8th largest cryptocurrency by market cap with a value of $35.4 billion, has been surpassed by Shiba Inu, the 22nd largest cryptocurrency with a market cap of $7.9 billion, according to CoinMarketCap, as claimed by Lucie, the Shiba Inu team's marketing lead.
- The Shiba Inu project's focus on sustainability and decentralization is evident in the new SHIB burning method, which combines token rewards in Shiba Inu games with automated burns embedded in Shibarium network transaction fees, creating a user-driven token deflation mechanism that also supports business and finance through technology such as blockchain and crypto trading, with potential applications in DeFi.
