The official Shibarium X handle announces the upcoming launch of a hard fork on the L2 network, which is expected to introduce the highly anticipated SHIB burn mechanism.
According to a recent announcement, the hard fork will occur at 9:15 AM (UTC) today, August 9, 2024. Following the hard fork, the team will release a new Bor version, v1.1.2-bone.
Besides enhancing the overall performance of the Shiba Inu blockchain, this new Bor version is expected to introduce a burn mechanism that will automate SHIB burns.
Upcoming Hard Fork to Introduce Automatic SHIB Burn on Shibarium
This announcement triggered reactions among Shiba Inu enthusiasts, who demanded more details about the burn mechanism. As a result, Lucie, the marketing lead of the Shiba Inu ecosystem, added clarity to the initial announcement, emphasizing that the burn mechanism will be tied to Shibarium transaction fees.
Upon the introduction of the new Bor version, Shibarium-powered SHIB burns will be automated using user fees. Notably, Shibarium transaction fees are divided into two parts: priority and base fees. While the priority fee is distributed to validators, a portion of the base fee will be used to incinerate SHIB.
The marketing lead confirmed this development yesterday, noting that 70% of the base fee will be automatically converted to SHIB and permanently removed from circulation once the new hard fork goes live.
She emphasized that the deflationary approach would contribute to reducing SHIB’s hefty supply and potentially boosting the value of the remaining tokens.
According to Lucie, the remaining 30% of Shibarium’s base transaction fees will be dedicated to the ecosystem’s overall maintenance and development.
Second Hard Fork in a Year
The upcoming hard fork marks Shibarium’s second major upgrade this year. Recall that the L2 network completed a hard fork in May. The upgrade introduced faster transaction processing, predictable gas fees, and overall network enhancement.
This upcoming hard fork will usher in automated SHIB burns, a feature the community has anticipated for several months.
Burn Rate Spikes 137,411% in 24 Hours.
Meanwhile, Shiba Inu community members and Ethereum co-founder Vitalik Buterin have burned over 410.72 trillion SHIB.
Of this total, over 56 billion SHIB were permanently destroyed using a portion of Shibarium’s base fees in six transactions.
In the meantime, Shiba Inu’s burn rate has surged tremendously in the past 24 hours. At press time, the burn rate has increased 137,411% over the past day, with more than 105 million SHIB tokens destroyed.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
