The introduction of the Burn Portal by the Shiba Inu team for the Shibarium lawyer-2 solution is a significant development in the crypto industry. Burning tokens to decrease the supply of a particular token is a well-established practice, with Ethereum’s EIP-1559 serving as a notable example. Implemented through the London hard fork in 2021, EIP-1559 introduced the concept of burning a portion of transaction fees, highlighting the importance of maintaining a controlled supply in the network.
The implementation of EIP-1559 and the introduction of the “base fee” feature marked a turning point for Ethereum, establishing a deflationary narrative that has resonated throughout the crypto community. Building on this foundation, the features of EIP-1559 were incorporated into Shibarium’s Burn hard fork, solidifying the project’s commitment to reducing the circulating supply of BONE tokens.
With every transaction on Shibarium, a base fee is locked into the burn contract, gradually accumulating BONE tokens for the burn process. Users can take part in this process through the ShibTorch platform, requiring a minimum of 100 BONE tokens to initiate a burn. By connecting their wallets, users can track the amount of SHIB to be burned and monitor the transaction hash, offering transparency and accountability in the burning process.
It is essential to note that 70% of the base fees are burned, while the remaining 30% is allocated to the project’s treasury, ensuring sustainability and long-term growth. Through the exchange of BONE tokens for SHIB tokens on the Ethereum network, a significant reduction in the circulating supply of SHIB tokens is achieved, potentially leading to bullish sentiment in the market.
The launch of the burn portal is poised to have a positive impact on SHIB’s value, as the reduction in token supply could drive increased demand and value appreciation. As SHIB records a 0.8% increase in the past 24 hours, according to CoinGecko data, the burn portal’s implementation showcases the project’s commitment to enhancing tokenomics and creating value for its community.
