According to a December 2023 blog post, the Shiba Inu ecosystem team says Shibarium burns will transition to an automated system by January 2024.
The team behind the Shiba Inu ecosystem has revealed plans to automate Shibarium-powered SHIB burns starting January 2024. Notably, the development was confirmed in a blog post shared by the team last December.
The blog post outlined that Shibarium burns will be executed in two phases: manual and automatic.
Shibarium Manual Burns
Recall that last month, the team commenced the manual burns on December 4, 2023. At the time, the Shiba Inu team sent 8.24 billion SHIB tokens to a dead wallet.
Interestingly, the team carried out three additional manual burns within 18 days, bringing the total Shibarium burns to 33.8 billion.
Automated Burns to Begin This Month
According to the blog post, the Shibarium burn mechanism will evolve into an automated system starting this month. Notably, the automated burn mechanism will operate based on predefined rules.
The Shibarium document had previously outlined that the L2 blockchain will burn SHIB using a part of the network’s gas fees. Specifically, the team will reserve 70% of the network’s base fee to buy and burn SHIB.
Since Bone ShibaSwap (BONE) is the network’s official gas fee, the system will first convert the tokens to SHIB before sending them to a dead wallet.
Shibarium fees will be used to burn SHIB each time the burn contract reaches $25,000 in BONE. Once the contract hits the $25K threshold, the system will automatically convert BONE to SHIB and send the equivalent to the dead wallet.
Shibarium to Bolster SHIB Burns
It is imperative to note that the SHIB price will determine the number of tokens that will be burned on Shibarium. In the manual phase, the Shibarium burn contract exceeded the $25K threshold before the team executed the burns.
This contributed to the massive spike in the number of tokens burned in each transaction.
The first Shibarium-powered burn of 8.24B SHIB burned was valued at around $75K, while the second burn of 8.61B SHIB was worth $87K. Additionally, the third and fourth Shibarium burns were worth $90.7K and $90.3K, respectively.
If the team automates the system to burn SHIB once the burn contract hits $25K in BONE, the portal will incinerate lesser amounts of SHIB compared to the previous burns. However, automated burns will occur more frequently than their manual counterparts.
As more SHIBs are incinerated on Shibarium, it is expected that the token’s hefty circulating supply will reduce drastically. So far, over 410.69 trillion SHIB have been burned, with Shibarium set to bolster the figure through the automated burn mechanism.
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