- Shib CoOp burned around 97 million Shib tokens.
- But it didn’t reflect on the total supply of the Shibarium.
Burn event is part of the step-by-step plans of crypto projects to reach their goals. So, this is because burn events help to reduce the amount of this crypto in circulation, boosting the value. However, there was a recent burn event at the Shibarium that didn’t go according to expectations.
Massive Token Burn Within the Shibarium Ecosystem
- There was a massive burn of Shiba Inu tokens within the Shibarium. However, there was no record of this burn within the Shiba Inu’s total supply. So, Shibburn, the community-driven burn tracker, is the most reliable platform to get burn data from the Shibarium ecosystem. However, they didn’t record any of the recent burns.
- Before moving forward, burning a token is the destruction of these tokens. In other words, these tokens won’t exist again upon the burning. So, there was a recent token burn by Shib Coop. Shib CoOp, a community-driven Metaverse real estate project, was behind the recent burn. So, they removed as many as 97 million Shiba Inu tokens from existence. But there was an abnormality, leading to a lot of questions. So, there was no reflection of the burned token on the Shiba Inu supply.
More Details About this Transaction
- There was a record of 97 million Shiba Inu tokens on Shibariumscan. In other words, the dedicated blockchain explorer for Shibarium validated the transaction. So, the occurrence of this burn of more than 97 million tokens in the Shibarium was precisely at 12:32 [UTC].
- Note: Shib CoOp asked about the recordings of this burn in Shibburn. So, they responded, saying that there was a reason for not recording this type of transaction. Furthermore, the transaction was on the Shibarium, a layer 2 blockchain and not a layer 1.
Shibburn Cites Reasons For Not Recording Transactions on the Shibarium
- The reasons for not recording these transactions are simple. So, it all depends on how the recording of burn transactions works. Burn addresses within a Layer-2 network are just to manage tokens within that particular network. The Ethereum blockchain is the original blockchain of the Shiba Inu token. So, for any burn event to affect the supply, it must happen on the Ethereum network.
- According to an explanation from Shibburn, they said burns on L2 networks do not impact the actual supply of Shiba Inu tokens. So, if a transaction fails to burn SHIB on the L1, it will not affect the real SHIB supply. Hence, anyone must first carry out a burn event on the Ethereum network for recording. So, anything other than this won’t have any effect on the supply.
Conclusion
There was some confusion regarding the burn mechanism of the Shibarium ecosystem. So, some Shiba Inu enthusiasts burned some of the tokens, expecting it to affect the supply. However, it didn’t, leading to them asking some questions. Apparently, a burn event only affects the supply of Shiba Inu if it happens on the Ethereum network and not layer 2s.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
