Shiba Inu is entering a new age with the launch of its burn portal on the Shibarium mainnet. The team started teasing this launch over a year ago with an unending update that has caused the community to lose interest – until this latest update.
Per the official update shared by the Shibarium X account, the new Burn Portal is named ShibTorch. This name underscores the Portal’s mission to remove SHIB tokens from circulation permanently. The emergence of ShibTorch will change the burn modalities from manual to automatic.
New Era for Shiba Inu
Shiba Inu is a memecoin project that started as a joke to stem the dominance of Dogecoin (DOGE). While it has not achieved this based on both coins’ respective market capitalizations, the project developers, including Shytoshi Kusama, maintain sight of the long-term vision.
One major impediment it needed to solve is the excessive SHIB supply. According to CoinMarketCap data, 589,270,353,128,162 SHIB are in circulation. To achieve its long-term price and market valuation, it needed a sustainable way to reduce its supply. This is where ShibTorch comes into play.
The implementation of token burning on Shiba Inu is in line with the Ethereum EIP-1559 upgrade. The Shibarium Layer-2 network launched in August 2023 further helped align its token burn capabilities with community goodwill. Through Shibarium transactions, SHIB holders can send tokens to a burn address for burning.
This model has worked thus far, with a total of 410,727,962,328,096 SHIB sent to dead wallets. In this new Shiba Inu era, token burning will no longer be voluntary; rather, the base fee paid by users will be sent to the designated burn address.
This is also a similar model adopted by the Ethereum mainnet. Notably, LucieSHIB, the ecosystems’ Market Executive, confirmed that the ecosystems validated will only benefit from the priority fees paid by users, just as it is on the Ethereum network.
How ShibTorch Will Benefit SHIB Price
The majority of the tokens burned by the project need more transparency. With ShibTorch, community members can easily monitor the supply and burn trends with real-time data.
This is bound to boost community trust, a trend that might further attract more users in the long term. With SHIB playing a central role within the memecoin ecosystem, this increased user base might boost demand for the token overall. If this speculation plays out as outlined, it can place positive pressure on price in the long run, as speculated by top market analysts.
Most importantly, the ShibTorch impact will help reduce the overall supply of SHIB, which will help drive the asset’s valuation in the long term. As of this writing, the burn portal update has helped lift SHIB from its bearish trend zone. The token changes hands for $0.00001326, up 2.6% in 24 hours.
While the general market downtrend might impact its sharp surge, Shiba Inu might retest its previous All-Time High in the long term when this new feature is adequately priced in.
