The phenomenon of meme coins is captivating. Leading the charge are a number of different tokens dedicated to the Shiba Inu, a cute hunting dog breed from Japan. The Shiba Inu token, or the original SHIB, started off as another dog-themed cryptocurrency, but has since mustered an army, aka the ‘ShibArmy’, a community of devoted followers.
With the endorsement of Vitalik Buterin and the massive support of its highly engaged community, the Shiba Inu outpaced its rivals, building a dynamic ecosystem that consists of several tokens, a decentralised exchange, an L2 blockchain, an NFT collection, a metaverse, and several Web3 games.
In this piece, we take a closer look into the Shiba Inu ecosystem.
Three-token Model: SHIB, BONE, and LEASH
The three-token model of Shiba Inu is intended to create a decentralised and community-driven platform with various use cases. While SHIB is the most well-known and widely traded token in the entire ecosystem, LEASH and BONE offer different opportunities for investors and participants.
Shiba Inu, or SHIB, is the primary token in the ecosystem, fuelling people around the world with the potential of a decentralised, community-led cryptocurrency. The Ethereum-powered coin has exploded in popularity since its creation in late 2020 and is now accepted as payment in hundreds of settings globally.
The BONE token serves as the ecosystem's governance token. BONE was created so that the ShibArmy could have a say in policy decisions through the Doggy DAO. Furthermore, Shibarium, the ecosystem's private Layer 2 network, was created on top of BONE.
The 107,646 LEASH tokens in circulation are intended to reward long-term contributors to the ecosystem with unique privileges and early access to new features. Past examples include priority access to land sales in SHIB: the Metaverse and minting of Shiboshi NFTs, as well as BONE incentives for liquidity providers on ShibaSwap.
The Shiba Inu ecosystem is undergoing a period of drastic transformation, and Shibarium is at the forefront of this change. Shibarium is a yet-to-be-officially-released L2 blockchain network built on Ethereum. Designed to complete Shiba Inu’s ecosystem, the blockchain aims to provide scalability, open the door to new ideas, and make the decentralised finance industry a safer place to operate.
Nearly every part of the ecosystem, and even those outside of it including the metaverse, web3 innovation, and gaming, can benefit from Shibarium's Layer 2 blockchain protocols. The reason for this is that the majority of active blockchain networks have many performance and scalability issues in common.
This protocol operates as an additional layer on top of existing blockchain networks to facilitate off-chain processing of transactions that will be faster, cheaper, and more private, without compromising the integrity of the blockchain itself. Shibarium will remove a heavy load of transactions from the Ethereum blockchain, allowing it to quickly process transactions, while controlling inflation through the token-burning process.
Currently Shibarium is in its beta phase collecting insights, while it onboards delegators and validators.
Ecosystem driven by the community
The Shiba Inu community is uniquely characterised by its strong and dedicated following in the cryptocurrency world. Apart from being a fun and relatable meme, Shiba Inu's grassroots growth and community-driven initiatives have fostered a sense of ownership and commitment among its members.
Active engagement on social media platforms has helped create a vibrant and connected community of active participants. Many members take the initiative to launch ecosystem projects like ShibaSwap and the Shiba Inu NFT platform, enhancing the ecosystem's utility and fostering a proactive spirit.
Building on these values, the Shiba Inu community promotes charitable endeavours, such as contributions to India's COVID-19 relief fund, showcasing a commitment to social impact beyond financial gains.
The tokenomics of Shiba Inu, which include staking and rewards for participation, have further incentivized community engagement and cohesion.
The Bottom LineThe Shiba Inu ecosystem has transcended its meme coin origins to become a dynamic and impactful force in the cryptocurrency world. With active community engagement, innovative projects like Shibarium, and a commitment to charitable initiatives, it continues to evolve and thrive. As the Shiba Inu ecosystem leaves its paw print on the crypto landscape, it reminds us that even the most playful beginnings can lead to valuable contributions in the blockchain space.
If you’d like to get more involved in the Shiba Inu ecosystem, head to their social links here.