Cryptocurrency Q&A
Does arbitrum burn tokens?
Does arbitrum burn tokens?
EthereumLegend
Wed May 22 2024
|
6 answers
1133
Could you please clarify for me if Arbitrum burns tokens? I've heard some rumors about this, but I'm not entirely sure if it's true. If Arbitrum does indeed burn tokens, could you explain the mechanism behind it? How does this process work, and what are the implications for token holders? Also, is there any way to predict when tokens might be burned, or is it completely unpredictable? Finally, does this burning of tokens have any positive or negative impacts on the overall ecosystem of Arbitrum? Thank you for your assistance in clarifying this matter.
6 answers
Michele
Fri May 24 2024
Arbitrum, a leading layer-two scaling solution in the cryptocurrency ecosystem, facilitates seamless transactions through its innovative architecture.
Was this helpful?
322
51
CryptoEmpireGuard
Fri May 24 2024
When a user desires to transfer tokens from Arbitrum's Layer 2 to Layer 1, they initiate the process by calling the L2GatewayRouter's outBoundTransfer function.
Was this helpful?
273
81
Martina
Fri May 24 2024
This function, in turn, triggers a call to the outBoundTransfer method on the gateway of the specific ERC20 token (arbSomeERC20Token) intended for transfer. This gateway, known as L2ERC20Gateway, manages the cross-layer token movements.
Was this helpful?
142
72
SsangyongSpirited
Thu May 23 2024
As part of the transfer process, the L2ERC20Gateway interacts with ArbSys, Arbitrum's core system contract. It encodes a message destined for the L1ERC20Gateway, the corresponding gateway on Layer 1.
Was this helpful?
119
69
Bianca
Thu May 23 2024
This encoded message contains all the necessary information for the Layer 1 gateway to recognize and process the incoming tokens. It effectively serves as a bridge between the two layers, ensuring the integrity and security of the transfer.
Was this helpful?
142
46
Load 5 more related questions
