In a recent Discord post, Shiba Inu lead developer Shytoshi Kusama confirmed that trillions of tokens will be burned with Shibarium’s layer 2 solution stated: That one of the goals of Shibarium’s much anticipated Layer 2 solution is to burn trillions of tokens.
Shytoshi Kusama’s recent commentary echoes the sentiment within the broader SHIB community, which expects the total supply of the meme currency to decrease significantly after the introduction of Shibarium.
Burning crypto-currency tokens is a process used by some blockchain projects to reduce the supply of tokens in circulation, thereby increasing their value and scarcity.
It involves the deliberate removal of commercially available coins from circulation – hence the term “burning” – to try to manipulate the price dynamics of a particular crypto-currency.
This process can be accomplished by implementing special burn transactions that transfer tokens from one address to an address of “burning“predetermined where these tokens reside forever, never to be used or exchanged again.
The concept of token burning is used as a way to control inflation in the crypto-currency economy and to ensure that the value of a single token remains stable over time, thereby increasing its desirability.
The developer team behind Shibarium recently confirmed that all transactions on the network would have an implied burn amount for the SHIB token while introducing the basic concepts of the much anticipated solution. This will be done through the renewed Burn portal every time a transaction is made on the network.