Shibarium’s hard fork will burn 70% of transaction fees, aiming to reduce SHIB supply and boost its value.
The upgrade includes a new burn mechanism and directs 30% of fees to Shibarium’s ecosystem development.
Despite significant transaction and wallet growth, Shibarium’s recent activity has slowed, highlighting a need for the upgrade.
Shibarium, the layer-2 scaling solution for the Shiba Inu ecosystem, is set to introduce a hard fork aimed at significantly increasing the rate of SHIB token burns. This new upgrade, featuring a revamped version of Bor, the network’s core component, promises to transform the way transaction fees are handled, with a substantial portion being burned to reduce the overall supply of SHIB tokens.
We're launching a Hard Fork with the new Bor version! 🛠️On August 9, 2024, at 9:15 AM UTC, we're launching Bor version v1.1.2-bone. This version introduces a burn mechanism to enhance our ecosystem. Get ready for the #BURN! 🔥
— Shibarium Network (@ShibariumNet) August 8, 2024
The primary feature of this hard fork is a new burn mechanism directly linked to base transaction fees. Under this mechanism, 70% of the base transaction fees will be converted into SHIB tokens and permanently removed from circulation. This strategic move aims to decrease the total supply of SHIB tokens, potentially driving up their value.
The remaining 30% of transaction fees will be directed towards the continued development of the Shibarium ecosystem. Consequently, this upgrade is anticipated to benefit both the token’s value and the network’s functionality.
This hard fork follows the previous upgrade completed in May at block height 4504576. That earlier update brought several enhancements, including faster transaction processing and more predictable gas fees.
Since its launch last August, Shibarium has seen significant growth, processing over 417 million transactions and attracting over 1.8 million wallets. However, recent activity has slowed, with only 3,840 transactions recorded on Wednesday.
Despite this, in terms of market performance, the price of Shiba Inu (SHIB) has seen a 4.85% increase over the past 24 hours. Currently, the price is $0.000014, and its trading volume is around $307 million.
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