Back to the list

Shibarium to Use 70% of Every Base Transaction Fee to Burn Shiba Inu


thecryptobasic.com 25 March 2023 10:27, UTC
Reading time: ~2 m

Shibarium Network to Burn Shiba Inu (SHIB) with 70% of Transaction Fees.

The Shiba Inu team has finally released the highly-anticipated Shibarium Documents, shedding light on the inner workings of their Layer 2 solution and its impact on the Shiba Inu ecosystem. The documents reveal that Shibarium will be crucial in burning SHIB tokens, driving their value over time.

One of the most exciting revelations in the documents is that the cost per transaction on Shibarium will be 10,000 times cheaper than Ethereum, making it an extremely cost-effective alternative for users looking to transact in SHIB. The network’s fee structure is split into base and priority fees, with the priority fee going to validators. The base fee is automatically used to buy back and burn SHIB tokens.

According to the documentation, 70% of the base fee will be used to buy back and burn Shiba Inu, effectively reducing its supply and driving up its value. The remaining 30% will be utilized for network maintenance and operational costs, ensuring the network runs smoothly. It’s important to note that this fee structure may change as the network progresses and evolves.

According to Shibarium docs:

“When a user makes a transaction on the network, the base fee is locked on a contract on Shibarium, while the priority fee is paid to the validator. This base fee will be split in 70% burned and 30% set aside to maintain the network.”

The release of the Shibarium Documents is a major milestone for the Shiba Inu ecosystem, providing greater transparency and clarity around the network’s operations and future direction. With its low transaction costs and innovative fee structure, Shibarium could be a game-changer for the SHIB token and the broader DeFi landscape.

Back to the list