Shiba Inu’s suffocating token supply will be drastically reduced when the much anticipated Shibarium network starts, according to a Saturday tweet from the official Shibarium Twitter account.
According to the post, each Shibarium transaction will use SHIB. “While in our previous post, we wanted to remind everyone that BONE acts as the needed gas token for Shibarium operations; we’d also want to publicly declare that every Shibarium transaction will burn SHIB,” the statement said.
Sending tokens to a dead wallet address in order to lower the circulating supply is referred to as burning. Shiba Inu, the world’s second-largest meme cryptocurrency by market valuation, has caused a dilemma for the community ever since its introduction in 2020 owing to its vast quantity of tokens.
Despite the fact that about half of the SHIB supply has already been destroyed, its supporters continue to advocate for more burning strategies to eliminate the remaining 589.6 trillion tokens. Theoretically, token burning is founded on the basic economic idea that when the supply of an item or service exceeds its demand, prices decrease, and vice versa.
The statement follows the team’s indication that the Shibarium layer-2 protocol will “launch shortly.” In a series of tweets published on January 5, the developers congratulated the Shiba community for “providing such enthusiasm and excitement” to the forthcoming Shibarium Beta Network, whose arrival will be gradual.
In addition, the SHIB community was urged not to believe rumours that additional tokens than BONE will be necessary to use Shibarium.
“This is to affirm and certify, from the official source, that BONE remains the sole token designated for gas taxes and use. No more tokens are required to operate inside the system.”
According to the creators, Shibarium was created for Shiba Inu and not for the benefit of other projects claiming ownership or speculation about its dependency on other tokens.
In addition, they said that the layer 2 protocol belongs to the community and that it would foster innovation and development within the Shiba Inu ecosystem. Although the creators have not yet announced a tentative launch date for the protocol, rumours indicate that it might occur in the first quarter of 2023.
Meanwhile, the Shiba Inu community has been buzzing with enthusiasm about the launch’s potential to benefit the tokens of the ecosystem. According to CoinMarketCap statistics, SHIB and BONE have increased by 23.68% and 29% respectively during the previous week.