In a significant development for the Shiba Inu community, Shib CoOp has announced the premiere SHIB token burn on Shibarium, a Metaverse real estate project. This marks a significant step forward for the Layer-2 (L2) blockchain network built on top of Ethereum. Shibarium, which launched over two months ago, is designed to host various decentralized applications (dapps), potentially increasing the number of SHIB burns.The inaugural SHIB burn took place yesterday through an application, solidifying Shibarium’s promise and potential. However, it seems that this burn may not have the intended effect on the token’s circulating supply. Shibburn, the community-led burn tracker, responded to the claim, explaining that burns on L2 do not directly affect SHIB’s total supply on Ethereum’s Layer-1 (L1) network, where Shiba Inu’s original contract resides.The confusion arises from the difference between L1 and L2 networks. Ethereum serves as the foundational L1 network, while Shibarium operates as an L2 network built on top of Ethereum. Burning Shiba Inu on Shibarium does not mean that equivalent SHIB tokens are destroyed on Ethereum. To impact the token’s actual supply, the burn would need to occur on Ethereum’s L1 network.Some members of the SHIB community argue that the primary goal is to remove these tokens from circulation, regardless of the layer on which it is executed. However, the intricacies of bridging tokens further complicate the situation. When tokens are bridged from L1 to L2, L1 tokens are stored in a specific contract, while corresponding L2 tokens are minted. If a burn occurs on L2, it does not signify the destruction of the original L1 tokens. Instead, only the newly minted L2 tokens are sent to the burn wallet on L2.Shibburn emphasized that tokens cannot be considered “burnt” unless they are from the same contract. The Shiba Inu development team and marketing lead Lucie have not commented on the issue at this time. It remains unclear whether the developers need to create a bridge to synchronize the SHIB burns from L2 to L1.As of now, Shiba Inu is trading at $0.00000674 and remains below the neckline of the descending triangle at $0.00000715.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Ethereum, Shib CoOp, Shiba Inu, Shibarium, Shibburn |
| Currencies | Shiba Inu |
| Securities | None |
