Buterin Describes How He Burned Nearly $7B in Shiba Inu (SHIB)
Vitalik Buterin discusses the procedure he went through to burn about $7 billion worth of SHIB provided to him by SHIB’s creators.
Vitalik Buterin, co-founder of Ethereum, was interviewed yesterday by the UpOnly podcast. Buterin spoke for about two hours with Cobie and Ledger of the FTX-affiliated podcast, during which he disclosed the complexities of burning 90% of 500 trillion tokens. The SHIB tokens were given to Buterin, who contributed 10% to the India Covid Crypto Relief Fund, which stood at the time at $1.2 billion. He burned 90% of them (valued around $7B) at the time because he “did not want to be a centre of that type of power.”
Shiba Inu is an ETH-based meme token that gained 40 000 000 percent last year, rapidly accumulating wealth for holders. Buterin said on the show that he was need to purchase a new laptop from Target in order to complete the burn transaction. He kept the monies he got from SHIB’s founders in a cold paper wallet. To get the private key, he needed to utilise the two numbers. “I had one of those numbers; the other was with my family in Canada,” Buterin said. He called his folks in Canada in order to get the alternate number. He then used his new PC to input the secret key. Additionally, he created an Ethereum transaction to donate ETH to charity. However, Buterin proceeded to download a software that created QR codes. Following that, he scanned the transaction’s QR code with his mobile device, copied it to his PC, and pasted it into etherscan.io/pushTx. Then he began distributing the tokens.
Buterin said that he saw Ethereum as a significant part of his future. Vitalik maintains that Ethereum’s target price for transactions remains $0.05 and that rollups and sharding are the way ahead in terms of scalability without jeopardising security or decentralisation. He expects transaction costs to fall to less than $0.05 “within a few of years.” Additionally, he said that development on the ZK-rollup Ethereum Virtual Machine is doing well and that the majority of nodes would not hold the whole chain.
On Ethereum, a roll-up is a layer two solution in which transactions are conducted off the main Ethereum chain while transaction data is published on layer one. Sharding is a term adopted from conventional databases that refers to the horizontal scaling of a database, much as expanding the number of lanes on a motorway to alleviate congestion. Ethereum is now very crowded, which results in extremely expensive gas costs. On Ethereum, gas is used to fuel computation.