Shiba Inu Burned On Shibarium – 97M Tokens Reduced, But SHIB L1 Supply Remains Intact

The Shiba Inu token burning situation has become increasingly intricate. Shibburn, the burn tracker driven by the community, has officially confirmed that burns occurring outside of the SHIB’s primary layer (L1) will not impact SHIB’s overall supply. This revelation comes in light of the initial burn conducted on the Shibarium platform.

Shiba Inu CoOp, a community-based Metaverse real estate venture, marked a significant achievement on Shibarium by executing the very first SHIB burn on the layer-2 network, which amounted to a total of 97 million tokens. The project’s team expressed their curiosity on social media platform X about when Shibburn would be capable of tracking such burns.

The transaction has been corroborated by data from Shibariumscan, which serves as Shibarium’s dedicated blockchain explorer. This data validates that a sum of 97 million Shiba Inu tokens has been successfully transferred to the burn wallet. According to Shibarium scan’s records, this burn took place precisely at 12:32 (UTC) yesterday.

Nonetheless, Shibburn responded to the inquiry from SHIB CoOp, underscoring the distinct nature of this particular burn event. They made it clear that they would not be monitoring or tracking these specific transactions. The reason for this lies in the differentiation between layer-1 (L1) and layer-2 (L2) networks. In this context, Ethereum functions as the layer-1 network, while Shibarium operates as a layer-2 blockchain that is built on top of the Ethereum network.

On layer-2 networks, the burn addresses are designed to handle tokens that are generated exclusively within that specific network. Consequently, Shibburn elucidated that for SHIB tokens to undergo incineration on the L1 network, the process must occur within the Ethereum network itself.

The Ethereum network is where the initial contract for Shiba Inu originated. According to the Shibburn team, this differentiation between primary (L1) and secondary (L2) networks is the reason they do not track burn events involving SHIB tokens that are pegged on the Binance Smart Chain (BSC).

Shibburn made it explicitly clear, stating, “We cannot confirm that those tokens were effectively eliminated or reduced from the overall supply on the primary Ethereum network (L1).”

Shiba Inu’s Supply Unaffected by L2 Burns

A community member with a curious interest sought additional clarification by asking Shibburn to validate the legitimacy of the burn process. In response, Shibburn reiterated a crucial point: if a transaction fails to burn SHIB on the primary Ethereum network (Layer 1), it has no impact on the actual supply of Shiba Inu tokens.

They stated, “If it doesn’t successfully burn $SHIB on Layer 1, it won’t have any effect on the genuine supply. The process should mirror how the Shibarium team intends to burn $SHIB, which takes place on Layer 1.”

Shibburn underscored that for Shibarium burns to be meaningful, they must align with the approach outlined by the Shibarium development team. Notably, the team has specified that when the network accumulates $25,000 worth of BONE in fees, they will convert BONE to SHIB and then perform the burn on the Ethereum network.

This scenario can be explained by the fact that when a user bridges tokens from Layer 1 to Layer 2, the Layer 1 tokens are held within a contract, while the Layer 2 network generates the corresponding Layer 2 tokens. However, when these Layer 2 tokens are subsequently transferred to a burn wallet, the corresponding Layer 1 tokens remain confined within the bridge contract wallet, leaving the circulating supply of the Layer 1 token unaffected. What reaches the burn wallet consists of the batch of Layer 2 tokens.

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