Shiba Inu is not only a meme coin but a decentralized ecosystem that is fun and simple. Many investors and analysts underestimated where such a project could go but it seems that attracting a large community and faithful “hodlers” is valuable. It becomes even more valuable when developing new technologies that might lead to broader adoption.
What is Shibarium and what is the effect of the so-called BONE proposal?
Shibarium is all about scalability
Shibarium is a second-layer solution that is not meant to replace SHIB but to extend it. Many blockchains suffer from low scalability, meaning that they can only offer a limited transaction throughput. Second-layer technologies are believed to be a solution to that problem by outsourcing all the transactions to another layer while actual settlement is still done on the blockchain at a slower pace.
Shiba Inu is based on Ethereum and as some of our readers might have already experienced for themselves transactions on Ethereum can be somewhat expensive if the demand is very high and many people are trying to transact at the same time. The next problem is that they are also not very fast unless you overpay to get your transaction settled.
One solution to that problem is optimistic rollups that are offered by Optimism and other protocols. Another option that will become available is Shibarium.
The BONE proposal
Shiba Inu has several tokens, among them SHIB, LEASH, and BONE. The bone proposal is meant to introduce BONE as fuel for Shibarium meaning that it would add another use case to the token to pay gas fees on Shiba Inu’s second layer.
With the proposal being accepted validators are getting rewarded with BONE, which is otherwise the governance token in the Shiba Inus ecosystem. The beta test of Shibarium is approximately going to start in the third quarter of this year. The BONE proposal gained the overwhelming support of 98% of all votes. Another consequence of the same proposal is that the BONE token supply will be caped to 250 million.
With the supply cap reduced and a strong use case added, BONE is seeing traction from a fundamental perspective. A limited supply meets a constant demand by users who have to pay their fees on Shibarium. Of course, the strength of that traction is defined by the total number of users and therefore by the broader adoption of Shiba Inu and Shibarium.