Shibarium: A Guide to Shiba Inu’s Layer 2 Blockchain
Shiba Inu (SHIB) is known throughout the crypto industry as one of the largest memecoins out there. It is second only to the original memecoin, Dogecoin (DOGE). However, while the industry kept speculating whether SHIB could overtake DOGE, the project has been working on development. From NFT collections to launching its own DEX, SHIB has achieved a lot thanks to its developers and community’s support.
Now, however, the project approaches another major milestone — the launch of Shibarium. This is something that the community has been patiently waiting for. So far, it has not launched yet, and the development team stated that they could not offer the exact date. However, many believe that the launch date is approaching. If you never heard of Shibarium, or if you don’t know much about it, you are in the right place. We are about to share everything that is known so far.
What Is Shibarium?
Simply put, Shibarium is Shiba Inu project’s upcoming Layer 2 solution. Its purpose is to improve the project’s ecosystem by offering faster transactions and reducing costs. Of course, these are not the only improvements, but they are the ones that greatly concern the community.
It is also worth noting that there are still many questions about Shibarium that currently lack answers. The release date is one of them, while the utility is another.
Shibarium was originally proposed by Ryoshi, the mysterious creator of Shiba Inu. Ryoshi was questioning certain aspects of it, however, noting that the line between L2 and own blockchain is thin. Once the development team adopted the idea, they decided that Shibarium would remain its own L2.
With that said, the project will not get SHIB 2.0, given that it will keep its ties to Ethereum. Instead, the project said that users would have to use the BONE token to transact on the Layer 2 blockchain.
BONE has already been around for a while, acting as the governance token for Shiba Inu DEX, ShibaSwap. Now, the new use cases are likely to increase demand for the token. The project is currently under the leadership of Shytoshi Kusama. Kusama said that the advantages of the Layer 2 network, Shibarium, will include low fees, fast transactions, and greater benefits.
How Will Shibarium Work?
Once it goes live, the new Layer 2 network, Shibarium, will work alongside the Ethereum mainnet. It will process transactions in its ecosystem. It will take a major cut of the transaction load that Shiba Inu (SHIB) has to deal with. Since these transactions are currently burdening Ethereum mainnet, Shibarium might actually help speed up the ETH network.
Apart from that, Shibarium will also reduce the token supply by removing a certain amount from circulation. This should help boost the tokens’ price, as it usually happens with token burning. The SHIB community has always been very supportive of token burns for this exact reason. By late 2021, the community has burned over 410 trillion SHIB.
What Makes Shibarium Unique?
There are several aspects that make Shibarium different, special, and unique. One example is its speed and scalability, which makes it perfect for business purposes. Another is the innovation that will allow developers to build on the dog-themed project’s blockchain.
However, these are not the things that excite the average investor. No, the thing that make Shibarium truly unique is its built-in burn mechanics. As you likely know, one sure way to increase the price of anything is to make it scarce. Now, SHIB has a massive supply, and reducing it even by a bit helps make it more valuable.
This is where the investors’ interests lie — with a mechanism that can help increase the price of the SHIB token. Shibarium would introduce a 24/7 burning mill that would relentlessly remove SHIB from circulation.
What Are the Benefits of Shibarium?
Shibarium will bring several features to the dog-themed project’s ecosystem. Some were already mentioned, such as the burn mechanics, high throughput, and reduced costs.
Features that are coming that we did not mention so far are metaverse and gaming. Shibarium will be an ecosystem where Shiba Inu will launch metaverse and gaming projects. The SHIB community is already captivated by the Shiba Eternity game. Now, they can barely wait for its arrival on Shib’s L2 solution.
SHIB: The Metaverse is also a highly anticipated product. It will bring one of the biggest trends to SHIB, but it will also give new utilities to the token. Users will be able to buy and customize land plots, burn SHIB along the way, and purchase new digital items.
Then, there is an accelerator for decentralized applications (dApps), which is another upcoming feature. Shibarium will allow for decentralized applications, and Shiba Inu already intends to introduce a way to accelerate their creation.
Shibarium Utility Tokens
Lastly, we should note that the Shiba Inu ecosystem features five utility tokens. Those include SHIB, LEASH, BONE, SHI, and TREAT. Each of them is useful to investors and offers different ways of growing your returns. You can also swap them all on ShibaSwap, the project’s own DEX.
SHIB
SHIB token is the face of the project — the native token of the Shiba Inu ecosystem. It has a massive supply, allowing investors to buy and own billions or even trillions of tokens. Then, when most get burned, the value of these tokens is expected to rise due to scarcity.
So far, SHIB has simply served as another meme token. However, with the arrival of Shibarium, the token will gain real utility.
LEASH
Next, we have Doge Killer (LEASH). The token was also created by Ryoshi, the creator of SHIB. Its purpose is to serve as a rebase token — a cryptocurrency with a flexible supply. That way, it can regulate its price in accordance with demand. This also means that token holders will see a change in how many tokens are in their wallets. However, the value that they hold in LEASH will always stay the same.
At least, this was a general idea. The plans were later scraped, and the developers unleashed the token’s full potential. They capped its maximum supply to 107,647 LEASH, which allowed it to have a massive price compared to SHIB.
BONE
The third on the list is BONE, which is a governance token operating on ShibaSwap. The token allows holders to vote on various proposals or make new proposals themselves. In that way, they can help shape the future of the project.
BONE is also used as a payment token for developers. It has a maximum supply of 250 million tokens, while around 230 million are in circulation.
SHI
Moving on, we have SHI token — Shiba Inu’s upcoming stablecoin. The token will run on both Shibarium and Ethereum, and it will have several use cases. Apart from being a universal store of volume, it will also be an exchange medium and unit of account.
Unlike most stablecoins, however, it will not be pegged to $1. Instead, it will be pegged to $0.01. That way, it will ensure that it is accessible to people from all walks of life everywhere in the world.
TREAT
Finally, we have TREAT, the last of the Shiba Inu tokens. It will act as a reward asset for Shiba Inu investors. Users will be able to obtain it from the Shiba Inu metaverse and Collectible Card Game.
Shibarium Will Be a Game-Changer for Shiba Inu
Shiba Inu had started as a copy of DOGE and a regular memecoin, but it won’t stay that for long. The project has been working hard on developing new features, use cases, and benefits. With the arrival of Shibarium, all of these things will become a reality. As such, it represents a huge game-changer for Shiba Inu.
It will completely transform the project, bring new utilities to it, and likely allow its tokens’ to become much more valuable. It is clearly an ambitious project, but also one that Shiba Inu seems to be able to handle.
FAQs
Is Shibarium Launched?
On January 15, 2023, the SHIB team announced that Shibarium would launch shortly. However, at the time of writing, this has not happened. Many suspect that Shibarium might launch on Valentine’s Day.
What Is the Use of Shibarium?
Shibarium will bring new possibilities to the Shiba Inu ecosystem. It will allow the creation of numerous products; it will bring an auto token-burning mechanism, and more.
Will Shibarium Use BONE As Gas Fees?
Yes, the developers confirmed this. They said recently that all transactions on the upcoming L2 blockchain would burn SHIB. Meanwhile, BONE will only be used for gas.
What Is SHIBUSD?
SHIBUSD, also known as Dogecoin Killer, is an Ethereum-based altcoin. It is the native currency of Shiba Inu, featuring the dog, Shiba Inu, as its mascot. It is widely considered as an alternative to DOGE, hence the nickname.
