The Shiba Inu team has now released the highly-expected Shibarium Documents, shedding some light on the inner workings of their Layer 2 solution and its effect on the Shiba Inu ecosystem. The documents show that Shibarium will be critical in burning SHIB tokens, pushing their value over time.
One of the most exciting revelations in the documents is that the cost per transaction on Shibarium will be 10,000 times cheaper than Ethereum, making it a highly cost-effective alternative for users aiming to transact in SHIB. The network’s fee structure is split into base and priority fees, with the priority fee going to validators. The base fee is mainly used to buy back and burn SHIB tokens.
Based on the documentation, 70% of the base fee will be utilized in the buyback and burn of Shiba Inu, effectively minimizing its supply and pushing up its value. The remaining 30% will be used for network maintenance and operational costs, guaranteeing that the network operates smoothly. It is critical to note that the fee structure might change as the network keeps progressing and evolving.
Based on the Shibarium documents:
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“When a user makes a transaction on the network, the base fee is locked on a contract on Shibarium, while the priority fee is paid to the validator. This base fee will be split in 70% burned and 30% set aside to maintain the network.”
The release of the Shibarium Documents is a major milestone for the Shiba Inu ecosystem, offering increased transparency and clarity around the network’s operations and future direction. With low transaction costs and an innovative fee structure, Shibarium might be a game-changer for the SHIB token and the general DeFi landscape.
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