Shib Army News: A Sneak Peek into the Upcoming Shibarium Burn Portal As Details Are Leaked

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The internet is talking as details of the burn portal on #ShibariumAlpha, the alpha version of Shibarium, have been leaked. Although the leaked information is subject to changes in the final beta release, it provides a glimpse into the burn mechanism.

According to the leak, the burn portal on Shibarium will convert and $BONE tokens into $SHIB tokens and take them out of circulation by burning them. Importantly, this burning process ONLY affects $SHIB tokens, while the accumulated $BONE tokens will remain in circulation.

The leak of burn portal on #ShibariumBeta

Note that it is only alpha version (not beta yet)

So the final version may be different, but it's good for a look $BONE will convert to $SHIB and burn $SHIB pic.twitter.com/5ukEe60qdB

— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) May 21, 2023

To initiate the burn process, it must accumulate a specific amount of $BONE tokens, currently set at $25,000. Once this threshold is reached, the burn process on the Shibarium network initiates. The accumulated $BONE tokens are automatically swapped for $SHIB tokens. These $SHIB tokens are subsequently burned, reducing the overall supply of $SHIB tokens. We can assume that as the price of $BONE goes up so will the amount of $SHIB that burns.

Understanding Base Fee and Priority Fee

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The base fee and priority fee are two essential components of the Shibarium network. The base fee is the minimum amount a transaction must pay to be considered valid. It fluctuates with network congestion, increasing when the previous block approaches full capacity.

The base fee is burned, meaning it is not rewarded to validators or block producers. This ensures the fee is solely used to prioritize transactions and maintain the security of the blockchain. By burning the base fee, Shibarium prevents it from becoming a source of profit for network controllers, promoting fair distribution.

On the other hand, the priority fee is the amount paid to the block producer for including a transaction in a block. It serves as an incentive for validators to prioritize transactions with higher priority fees, as they earn more rewards. Users can set a maximum priority fee, called the Max Priority Fee, to limit the amount they are willing to pay.

How #SHIB🔥burn will work in #Shibarium, when the Beta ends:

1) A % of #BONE fees is accumulated in Shibarium.
2) After an amount of BONE is reached, it will be moved to Ethereum and swapped for SHIB
3) That SHIB will be burned in Ethereum.https://t.co/cTUjNesr2e

— SHIB INFORMER (@ShibInformer) May 21, 2023

The priority fee incentivizes validators to prioritize transactions with higher fees, ensuring efficient transaction processing. As for Shibarium, the base fee is converted into $SHIB tokens and burned, reducing the total supply of $SHIB tokens over time. This mechanism prevents inflation and discourages miners or validators from artificially inflating the base fee to maximize their rewards.

As Shibarium progresses toward its beta version, these features are expected to play a significant role in the ecosystem.