SHIBA INU, one of the largest altcoin projects in the cryptocurrency market, with a loyal community of token holders, SHIB, continues to grow (collections of NFTs, decentralized exchanges, etc.) and now awaits the release of Shibarium, a Level-2 blockchain on top of Ethereum, which aims to improve the SHIBA INU ecosystem, providing – among other improvements – faster transactions, at lower cost.
Shibarium announced that each transaction that takes place on its network will “burn” SHIB, with the aim of gradually reducing the total amount of the token, which will likely lead to an increase in its price as its existing capitalization remains or increases.
Why Shibarium?
The SHIBA INU (SHIB) currency runs on the Ethereum network, which despite being a highly secure and decentralized blockchain, its main drawbacks are in scalability and low performance, despite the move from the Proof-of-Work (PoW) mechanism to that of Proof-of-Stake (PoS). We note that Ethereum is planning upgrades that will improve it in these areas as well.
Shibarium will use the Proof-of-Stake consensus algorithm, which means that users will stake their tokens in order to become validators and verify the state of the blockchain for transaction processing.
The global network of computers that will act as validators will ensure the decentralization of the blockchain.
Shibarium will work together with Ethereum to process transactions in the Shibarium ecosystem and thus will receive much of the SHIBA INU ecosystem’s transaction load that is transferred to Ethereum and process them on its own chain.
The long-awaited “burning” SHIB
The most exciting part for the SHIBA INU community, is the fact that Shibarium has promised to remove SHIB tokens from circulation to reduce supply and help increase the price of SHIB.
This process is known as the “token burning mechanism”, in which tokens are sent to wallets that can only receive tokens, not send them.
The SHIBA INU community, known as SHIBArmy, has long advocated “burning” SHIB tokens as a way to reduce its supply while making the tokens in circulation more valuable if demand is maintained or increased.
For example, at the end of 2021 the SHIBA INU community had burned a total of 410 trillion SHIB tokens.
When will Shibarium be released?
There is no official release date for Shibarium yet although it is expected to be released somewhere in 2023.
According to the network’s official post, developers have been working on the project since April 2022.
What is reported is that the project will enter the Testnet phase through a public beta. There is a lot of work going on behind the scenes. Testnet will allow developers to create and test the tools needed for end-user interactions, such as token transfer bridges, wallets, block explorers and more.
The Shibarium Story
Shibarium was first proposed by the creator of SHIBA INU, the developer under the pseudonym, Ryoshi.
As mentioned previously, Shibarium is a Level-2 blockchain, connected to Ethereum and is a scaling solution for SHIBA INU. It will require users to use the BONE token to transact within Sibarium, which will theoretically mean more demand for BONE, which is the governance token of the decentralized exchange, ShibaSwap.
Shibarium as a concept has been around since early 2021 and is one of the most anticipated projects, especially in the SIBA INU community.
Most SHIB token holders are eagerly awaiting the launch of Shibarium, as it could be a catalyst for the price of SHIB to rise significantly, as the developers of Shibarium have announced that every transaction on the Shibarium network will result in the “burning” of the SHIBA INU token, SHIB.
The data with SHIB
Currently, SHIB has 589 trillion tokens in circulation, while initially the total supply was more than 900 trillion however it was significantly reduced with the “burning” mentioned earlier.
It is for this that the SHIBA INU community is highly optimistic about the Shibarium release, as with the “burning” mechanism it will introduce, they expect the price of SHIB is likely to rise as the amount of tokens decreases.
Although the amount of SHIB token that will be “burned” after each transaction on Shibarium has not yet been disclosed, the “burning” mechanism is likely to be a catalyst, not only for SHIB, but also for Shibarium itself.
However, the Shibarium developers have assured that BONE will be the only token used for payment of debits within the network and no other tokens will need to operate within the protocol.
BONE is a governance token for the Shibaswap ecosystem, allowing the SHIB community to vote on upcoming proposals in the ecosystem. The more BONE tokens a user holds, the more weight their vote will carry on any future proposal.
Previous Articles:
- What Are Layer-1 And Layer-2 Blockchains?
- What is Kadena’s Chainweb consensus?
- Mt.Gox extends its creditors filing and repayment date
- Argentina’s Ministry of Economy to present a bill that will benefit taxpayers who disclose bitcoin and other assets in the Government
- El Salvador received more than USD 115 million in bitcoin remittances in 2022
