- The Shiba Inu community sought clarification about the SHIB token burning process on Shibarium. Lucie, the marketing lead for Shiba Inu, provided a detailed explanation.
- In response to concerns about the indefinite locking of tokens in the bridge contract, Lucie acknowledged that it functions similarly to a burn.
The Shiba Inu community recently expressed curiosity about the SHIB token burning process on Shibarium, the project’s layer-2 (L2) blockchain network. In response to these queries, Lucie, the marketing lead for Shiba Inu, provided a comprehensive statement on X (formerly Twitter) to clarify the process’s mechanics, shedding light on its complexities.
Lucie initiated the explanation by delving into the intricacies of bridging between Ethereum (L1) and Shibarium (L2). She added:
When you initially bridge your SHIB to Shibarium, the original SHIB tokens are locked in the bridge contract, while a version of the token is minted on Shibarium.
To underscore the significance of this differentiation, she explained:
This signifies that when you choose to burn your Shib on Shibarium, you are effectively burning the newly minted version, while the original tokens remain secured in the bridge contract.
This statement highlights the notion that even if SHIB tokens are burned on Shibarium, they are not deducted from the initial Ethereum-based supply.
Subsequently, Lucie provided a step-by-step guide for developers and the community. “To ensure the correct procedure, if you are involved in the Shibarium project and intend to burn SHIB, please ensure to transfer your SHIB back to the Ethereum network and then dispatch it to the dead wallet,” she recommended.
Addressing the Shiba Inu Burn Anomalies
In light of the intricate nature of this system, one community member highlighted that if Shiba Inu tokens remain indefinitely locked in the bridge contract, it essentially achieves the same effect as a “burn” since the tokens are not in circulation. In response to this observation, Lucie agreed, stating,
Indeed, they are. The challenge lies in some people’s argument that they aren’t technically burned because they are not in dead wallets; instead, they are burned within the bridge contract, beyond anyone’s reach. I’m sharing this to provide clarity.
Lucie also engaged with the community by addressing another query and emphasizing the collective decision-making process within the Shiba Inu community. When asked about the absence of an inherent burn mechanism on Shibarium, she emphasized, “What matters most is that WE ARE A UNITED COMMUNITY. Shiba doesn’t have a developer wallet or a marketing wallet designated for burning. There are no free tokens available for burning.
Shiba Inu Community Debates
Lucie’s clarifications have emerged amidst a broader debate within the SHIB community, which revolves around the actual consequences of token burns on Shibarium. Critics contend that burns executed on this L2 platform do not impact the circulating supply of SHIB tokens within the original Ethereum layer-1 blockchain. Shibburn, a well-known community-driven burn tracker, recently argued that a fundamental distinction exists between burning tokens on L1 and L2 networks.
Shibburn stressed that when tokens are burned on an L2 platform such as Shibarium, it does not lead to a reduction in SHIB’s overall supply on Ethereum. The central point of this argument is that tokens burned on L2 represent the ‘versions’ or ‘minted iterations’ of the original token, rather than the original L1 tokens themselves.
Nevertheless, a counter-narrative exists within the community, with some members asserting that the ultimate goal is to eliminate these tokens from active circulation, regardless of the specific layer where the burn is executed. As one community member expressed,
Whether it’s L1 or L2 is inconsequential; the objective is to remove them from circulation.
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