In a significant development for the Shiba Inu cryptocurrency, the team behind the popular digital asset has announced the commencement of an automated SHIB token-burning mechanism. This move, revealed in the latest edition of Shiba Inu Magazine, marks a pivotal step in the evolution of the cryptocurrency’s economic model.
Automated burn system: A game changer for Shiba Inu
The introduction of the automated SHIB token burn is set to begin with its deployment on the testnet, known as Puppynet. This initial phase is critical for ensuring the efficiency and reliability of the system before its integration into the Mainnet. The development team emphasizes the importance of this testing phase, which will include multiple upgrades to optimize performance and enhance transparency.
This strategic shift to an automated process follows five manual SHIB burns conducted by the Shiba Inu team, which collectively removed over 43 billion SHIB tokens from circulation. These manual burns, which represented fees from transactions on the Shibarium blockchain, played a significant role in Shiba Inu’s economic strategy. The most recent burns eradicated 9.351 billion tokens, substantially reducing the SHIB token supply.
Impact on SHIB tokenomics and market outlook
Implementing the automated burn mechanism will fortify the SHIB network’s economic model by strategically reducing the token supply. This could lead to an increase in the value of the Shiba Inu tokens. The process, once live, will operate on a set of predefined rules, enhancing the efficiency and transparency of the token-burning mechanism.
The Shiba Inu team’s decision to transition from manual to automated burns marks a significant evolution in the cryptocurrency’s strategy. The team aims to inject dynamism into the token’s economy by automating the burn process, potentially influencing its market performance.