Shiba Inu’s token writing process took an interesting turn with community-driven writing tracker Shibburn. This confirms that burns occurring outside layer 1 do not affect his overall supply of SHIB. This revelation came after the first token burn on Shibarium, Shiba Inu’s Layer 2 network. This was carried out by Shib CoOp, a community-led Metaverse real estate project. The company caused the destruction of an additional 97 million of his SHIB tokens.
This event marked an important milestone for Shibarium and prompted questions about how to track such burns. The Shib CoOp team requested information on when Shibburn would begin monitoring these types of burns.
Data from Shibariumscan, a blockchain explorer dedicated to Shibarium, validates the transaction and shows that 97 million Shiba Inu tokens currently reside in burn wallets.This burn occurred at exactly 12:32 p.m. [UTC] The day before that.
However, responding to the SHIB CoOp inquiry, Mr Sibburn highlighted the unique nature of this burn. He made it clear that he would not be tracking these specific transactions. This differentiation stems from the fundamental contrast between Layer 1 and Layer 2 networks. Note that Ethereum acts as an L1 network and Shibarium acts as an L2 blockchain built on top of Ethereum.
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Shiba Inu: How does burn injury work?
Write addresses within a Layer 2 network are specifically designed to manage tokens generated within that particular network. Therefore, in order to write SHIB tokens in L1, the process must take place within the Ethereum network. This is the birthplace of Shiba Inu smart contracts. The Shibburn team also revealed that the difference between L1 and L2 explains why Binance Smart does not monitor burns involving SHIB tokens pegged to his chain.
Siburn emphasized that the burn on the L2 network will not affect the actual supply of Shiba Inu tokens. They made it clear that if a transaction fails to write his SHIB in his L1, it will not affect his actual SHIB supply. The research team emphasized that Sibarium burns should follow the methods outlined by the Sibarium development team.
A key element of Sybarium’s approach includes accumulating $25,000 worth of BONE in fees. This is converted to SHIB and written onto the Ethereum network.
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To further explain this scenario, when a user transfers a token from L1 to L2, the L1 token is kept within the contract. However, the L2 network creates a corresponding L2 token. Furthermore, if the user subsequently transfers these L2 tokens to a write wallet, the matching L1 tokens will remain in his wallet under the bridge contract. This leaves the circulating supply of L1 tokens unaffected. What ends up being stored in the write wallet is a batch of L2 tokens.