Deflation & Burns

Shido Network has an inbuilt Burn Mechanism to ensure it's deflationary nature and battle against inflation. Our Burn Mechanism burns the transaction fee including the priority fee for each transaction made on Shido Network. Each transaction fee on Shido is divided into two different parts.

The first part of the transaction fee is the Base Fee. Second part of the transaction fee is the Priority Fee. In comparison to Ethereum Network, Shido Network is burning both the base fee and the priority fee.

Once the SHIDO token amount has reached it's threshold in the burn contract, the burn function automatically gets triggered. The burn function then sends the tokens to a 'dead wallet' and remove the native SHIDO coins from the total supply and circulation.

Our burn mechanism is solving the inflationary nature that most blockchains are battling whilst issuing new coins to pay rewards to Validators. The SHIDO rewards paid to Validators, which is a running cost for Shido Network, is paid by revenue made by Shido in various applications and from contract creation on Shido Network.

This is making Shido Network a hard coded deflationary blockchain different from several other prominent ecosystems.