RagnarShib, a team member of the Shiba Inu ecosystem and an admin of the Shibarium Telegram group, has shared an update about the progress of developing Shibarium’s automatic SHIB token-burning system.
In a recent tweet, RagnarShib mentioned that testing has begun on the burn portal, which the community has been eagerly awaiting. The burn mechanism for Shibarium was rolled out last month on Puppynet, the testnet edition of the L2 scaling solution.
Clarification on Shibarium Burn Portal Deployment
Some clarification about the Shibarium Burn Mechanism. Many think it was going to be ready in January. Maybe there was a misunderstanding. It was explained at @TheShibmagazine .
In January the system began to be tested in our PuppyNet and it will be deployed in Mainnet once…— RagnarShib.eth (@RagnarShiba) February 3, 2024
RagnarShib’s recent message carried significant importance, especially considering the expectations of some SHIB community members regarding the launch of the highly-anticipated burn portal on the mainnet in January. Several enthusiasts expressed their frustration across various social media platforms, including X.
In response to these reactions, RagnarShib addressed a misunderstanding regarding the deployment of the burn mechanism. He highlighted that The Shib Magazine, a bi-weekly journal dedicated to Shiba Inu, explicitly stated that the burn mechanism would undergo deployment on Puppynet for testing purposes in January.
To support his statement, RagnarShib shared an excerpt from the magazine, which clearly stated: “Starting in January, the mechanism will evolve into an automated system on Puppynet for testing purposes.”
It’s important to note that the initial phase of deploying the burn mechanism holds significant importance in refining the solution, ensuring its efficiency, and enhancing its reliability before its eventual deployment on the mainnet.
Transitioning to Automated SHIB Token Burns
The Shibarium team has been actively burning SHIB tokens using a portion of Shibarium fees. These burns, powered by Shibarium, have been conducted manually, with the team sending SHIB tokens to the cryptocurrency dead wallet.
To date, five Shibarium-powered burns have been initiated, resulting in the incineration of over 43 billion SHIB tokens, valued at $390,440 at the time of writing.
Despite the successes achieved thus far, the current manual burn model faces issues of inefficient performance and lack of transparency. However, the upcoming automatic burn mechanism aims to address these concerns by operating based on predefined rules.
While there is no specific date for the transition of the automated burn mechanism to the mainnet, it is anticipated to go live before the end of the year.
The launch of the Shibarium burn mechanism on the mainnet is expected to significantly contribute to SHIB’s deflationary model. By reducing SHIB’s massive circulating supply of 581.32 trillion tokens, the burn portal is poised to potentially stimulate a surge in price.
Encouraging Shibarium Usage for Increased Burns
RagnarShib’s message follows shortly after another member of the Shiba Inu ecosystem team, DaVinci, advised the community to make use of Shibarium for their transactions. DaVinci addressed the community’s growing calls for more burns via Telegram.
DaVinci emphasized that utilizing Shibarium would lead to higher fees generated by the network, consequently positively impacting burns.
In his message, DaVinci stressed the importance of active participation from the community in sustaining the burn initiative. He cautioned that failure to utilize Shibarium might be perceived as engaging in behavior resembling scams.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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