In a recent tweet, Shiba Inu’s marketing specialist, Lucie, reiterated the project’s determination to reduce the circulating supply of the SHIB token. Lucie emphasized the importance of the community’s involvement in adopting Shibarium, a new scaling solution introduced by Shiba Inu. Here’s a comprehensive look at the latest developments:
Shibarium: The Key to Burning SHIB Token
Lucie urged the SHIB Army to actively engage with Shibarium, highlighting that without mass adoption of this new blockchain, SHIB tokens would not be burned effectively. According to Lucie, the current documentation for Shibarium explains the burning mechanism, but more information will be provided in an upcoming release.
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WE NEED TO USE #Shibarium
It won't burn $SHIB if you don't use it!Onboarding millions of people to Shibarium will take time and community effort.
More information about burns will be revealed in the upcoming documentation.
BUT it has been clearly explained in… pic.twitter.com/xjo27NlPP8
— 𝐋𝐔𝐂𝐈𝐄 | Summer of Shibarium (@LucieSHIB) September 4, 2023
The core of Shibarium’s burning mechanism lies in transaction fees. When users initiate transactions on Shibarium, the base fee is temporarily allocated within a Shibarium contract. Notably, 70% of the base fee will be directed towards burning SHIB tokens, while the remaining 30% will be allocated for network maintenance.
Patience and Community Effort Required
Lucie acknowledged that onboarding millions of users to Shibarium will require patience and a collective effort from the SHIB community. This perspective stems from the fact that Shibarium is a new blockchain, and users need time to familiarize themselves with its functionalities.
A screenshot of a comment from Shiba Inu’s lead developer, Shytoshi Kusama, was included in Lucie’s tweet. Kusama emphasized the difficulty of burning billions of dollars worth of SHIB tokens. This remark underscores the substantial challenge facing the Shiba Inu team.
Traffic Surge and Increased Gas Fees
Lucie encouraged the community to use Shibarium more actively, as increased traffic on the platform could lead to higher gas fees. This situation, in turn, would contribute to more SHIB token burns, aligning with the project’s long-term goals.
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The SHIB content marketer stressed that burning SHIB tokens through Shibarium is a long-term endeavour. Lucie suggested that the SHIB Army should expect to see the effects of Shibarium on Shiba Inu within the next eight months.
Utility and Governance Token
Lucie noted that Shiba Inu’s previous all-time high (ATH) was achieved with relatively little burning and overall utility compared to the current state. She argued that Shiba Inu now boasts greater utility and more concerted efforts to burn SHIB tokens. Lucie hinted that SHIB could evolve into a governance token with global adoption, making the next ATH an intriguing prospect.
In summary, Shiba Inu’s commitment to reducing the circulating supply of SHIB tokens through Shibarium adoption underscores the project’s dedication to its long-term goals. The SHIB Army’s active participation in using Shibarium will play a crucial role in achieving these objectives, with the potential for significant effects on the project’s value and utility in the coming months.