In a recent Discord message, lead Shiba Inu developer Shytoshi Kusama stated that one of the goals of the hotly anticipated Shibarium Layer 2 solution is to burn trillions of tokens.
Kusama's recent comment echoes the sentiment within the broader SHIB community, which expects the total supply of the meme coin to shrink significantly following the introduction of Shibarium.
Cryptocurrency token burning is a process used by some blockchain projects to reduce the supply of circulating tokens, which drives up their value and scarcity.
It involves deliberately taking coins that are available in the market out of circulation — hence known as "burning" — in an attempt to manipulate the price dynamics of a particular cryptocurrency.
This process can be carried out through the implementation of special burn transactions that transfer tokens from one address to a predetermined "burn" address where those tokens reside forever, never to be used or traded again.The concept of token burning is employed as a means of controlling inflation within the cryptocurrency economy and ensuring that the value per single token remains steady over time, increasing its desirability.
As reported by U.Today, the team of developers behind Shibarium recently confirmed that all transactions on the network would have an implicit burn amount for the SHIB token while introducing the basic concepts of the much-anticipated solution. This will be happening via the renewed Burn Portal every time a transaction is made on the network.