Shibarium, the layer-2 solution, is set to launch a hard fork with a new version of Bor, the network’s core component. Notably, it will introduce a burn mechanism.
The burn mechanism will be directly linked to base transaction fees. The majority of these fees (70%) will be converted to SHIB tokens and removed from circulation. In such a way, it will be possible to decrease the total supply of SHIB tokens, thus potentially boosting the token’s price.
The remaining share of the base fees will be allocated toward ecosystem development.
As reported by U.Today, Shibarium completed its previous hard fork at block height 4504576 back in May.
The hard fork brought faster transactions as well as predictable gas fees. This made it possible to make the network more accessible. The previous hard fork also enhanced Shibarium’s security.
Shibarium’s much-awaited layer-2 solution went live last August. The network gained significant traction following its launch. The total number of transactions on the Shibarium network has surpassed 417 million. Meanwhile, the total number of wallets has surpassed 1.8 million.
However, Shibarium’s activity has now slowed down significantly. On Wednesday, the network recorded a measly 3.84K transactions.
As reported by U.Today, the SHIB token recently came close to adding another zero to its price during the most recent price crash. However, it then managed to stage an impressive comeback, outperforming the broader meme coin sector.
The burn mechanism could be a much-needed catalyst for the meme cryptocurrency, which has been more or less stagnant since hitting its current peak in October 2021.