Shibarium, the Ethereum-based Layer 2 (L2) scaling solution of the Shiba Inu ecosystem is changing forever. After months of speculation, the memecoin project developers have launched the ShibTorch, the portal for automatic burning of SHIB.

Shibarium Burn: Catalyst For SHIB Supply Crunch

One of the long term promises of the ecosystem developers is to launch the auto burn feature. While the ShibTorch name and the launch timeline was kept hidden until today, it has not failed to impress the community.

As one of the top meme coins in the market, Shiba Inu places a major premium on burning its excess supply. Before now, the memecoin relied heavily on goodwill efforts from its community to burn the excessive SHIB in circulation. This burning is largely manual and this causes massive fluctuation in the total amount burnt.

This uncertain burning has placed enough pressure that sees Shiba Inu struggling to maintain resilience in recent times. Things are changing starting from today with ShibTorch. As the team explained, the need for the token burning is hinged three pivotal anchors. These include controlling inflation, reducing the supply to generate higher value and incentivizing holders who when they hold can gain more value over time.

Per the core operational model of ShibTorch, Lucie, the Marketing Executive, disclosed that the portal will only burn base fees paid by users. While this base fee will go to the burn contract, a second priority fees will do to validators.

Users will be able to trigger a Shibarium burn process with the accumulation of BONE. To finalize the burn process, the accumulated BONE is converted to SHIB on Ethereum which are subsequently burnt from circulation. Despite taking away the manual burning, the operational modality of ShibTorch is still largely community driven.

The Memecoin Rivalry

There is an ongoing rivalry in the memecoin world among Dogecoin (DOGE), SHIB, Floki, BONK and dogwifhat (WIF). Oftentimes, these projects continue to challenge one another’s market position.

One thing most of these memecoin projects are doing to stand out is the push to offer tangible utility and value to users. Although majority are exploring ways to stay unique, Shiba Inu has a significant reach. Earlier this week, the memecoin enabled BONE and USDC payment with Visa and Mastercard partnership.

The post SHIB News: Shibarium Auto Burning Feature Goes Live appeared first on CoinGape.

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Filed under: News - @ August 16, 2024 5:24 pm