In the world of blockchain, understanding token dynamics is crucial, especially when it comes to layered networks. Recently, the Shiba Inu community witnessed a significant token burn of 97 million SHIB on the Shibarium Layer-2 (L2) network. Shibarium is a blockchain platform built on top of Ethereum that caters to decentralized applications (dapps). This burn event has raised concerns about its impact on the circulating supply of the SHIB token.The debate revolves around the distinction between L1 and L2 networks. Ethereum serves as the primary L1 network, while Shibarium operates as an L2 platform connected to Ethereum. Burning SHIB tokens on Shibarium does not necessarily mean an equal number of tokens are eliminated on Ethereum. Shibburn, a community-led burn tracker, clarifies that burning tokens on an L2 network only affects the representation of the token, not the original token on the L1 chain.This brings up the concept of token bridging, where tokens move from the L1 to L2 network. The original tokens are placed in a specific contract on the L1 side, while new corresponding tokens are created on L2. Therefore, when an L2 burn occurs, it is the new tokens that are sent to the burn wallet, not the original Ethereum-based tokens.The prevailing viewpoint aligns with Ethereum’s framework, which designates specific burn addresses. For a token to be considered truly “burned,” it must originate from the same contract as these addresses. However, the core Shiba Inu team and their marketing lead, Lucie, have not expressed their opinions on this matter, and questions about the necessity of a bridge to harmonize SHIB burns between L1 and L2 remain unanswered.Amidst these discussions, the trading value of Shiba Inu hovers around $0.00000674, just below the threshold 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 | Shib CoOp, Shiba Inu, Shibariumscan, Shibarium, Shibburn |
| Currencies | Shiba Inu |
| Securities | None |
