The WoofSwap team, responsible for the decentralized exchange (DEX) on the Shibarium network, has introduced an innovative token-burning method with the launch of a new token called FEED. This announcement was made via X, where WoofSwap shared details about the intended effects of FEED.
The official statement stated: “FEED will usher in a new trend on Shibarium. Anyone or any team can generate a token using the FEED contract. Burn SHIB by minting. That’s the essence.” The launch of FEED has generated a blend of excitement and apprehension within the SHIB community, as many users seek to understand its exact purpose and advantages.
New Method to Burn Shiba Inu
In light of the increasing questions, Lucie, the marketing lead for Shiba Inu known on X as @LucieSHIB, held an interview with the WoofSwap team. Throughout the conversation, the team explained how FEED supports the burning of SHIB.
“FEED functions through a uniquely crafted smart contract that enables users to mint tokens freely. Participants in this process must pay gas fees in BONE. As tokens are minted, these gas fees are utilized, and in the Shibarium network—a Layer 2 solution for Ethereum celebrated for its minimal transaction fees—these fees directly facilitate the burning of SHIB tokens,” a WoofSwap representative described.
This system not only encourages participation by reducing entry costs but also guarantees that each minting action progressively diminishes the total SHIB supply, bolstering its scarcity and potential value increase.
The team also highlighted FEED’s distribution model, which is designed to be fair and inclusive, reflecting the decentralized spirit of Shibarium. “Unlike conventional token distributions that may depend on whitelists or restrict access to participants, FEED permits anyone or any team to mint tokens without prerequisites, other than the small gas fees. This open-access format aims to democratize token creation and ensures that the burning mechanism benefits the entire community,” they explained.
Looking to the future, the WoofSwap team anticipates that the initial FEED minting volume will be about 20,000,000 tokens. “Although we expect that active trading of FEED may temporarily lessen this number, the overarching goal is to encourage greater engagement and token minting. As more users and teams interact with FEED, the aggregated gas fees will increase, thereby enhancing the rate at which SHIB is burned,” the team shared.
When asked about potential collaborations to boost FEED’s effectiveness in burning SHIB, the WoofSwap team acknowledged that no formal partnerships are currently established. Nevertheless, they are in the process of assembling a Chief Technical Officer (CTO) team to oversee the development and strategic vision of FEED.
“FEED’s groundbreaking approach will motivate other projects in the crypto sector to implement similar smart contract strategies, potentially nurturing a collaborative atmosphere that improves SHIB’s burning infrastructure throughout the Shibarium ecosystem,” they observed.
Security was also a crucial topic addressed during the interview. The WoofSwap team reassured the community that FEED is equipped with strong security protocols. “The smart contract governing FEED is open-sourced, providing transparency and immutability, preventing any changes after deployment.
Furthermore, minting operations are exclusively conducted through the block browser, negating the necessity for third-party decentralized applications (DApps) and thereby reducing possible security risks,” the team stated.
At the time of this report, Shiba Inu was trading at $0.00001748.
Featured image created with DALL.E, chart from TradingView.com
