INTRODUCTION
The primary utility token associated with the Shiba Inu platform is SHIB. In this subsection of the Shiba Inu Coin Guide let's investigate how this token works.
HOW DOES SHIBA INU COIN WORK?
To start with, Shiba Inu is an ERC-20 token. As such, the consensus mechanism of Shiba Inu is identical to that of Ethereum. Currently, the consensus mechanism for Shiba Inu is Proof of Work (PoW) but with the advent of Ethereum 2.0, this mechanism will be transforming into Proof of Stake (PoS).
Shiba Inu's ecosystem consists of the following three tokens: SHIB; BONE; and, LEASH. Let's discuss each of these individually:
- SHIB - this is the system's main utility token. It is used for such things as paying fees and receiving rewards. It may also be used as a method of payment (which according to Shiba Inu is secure and reliable as the system is Ethereum based). There were originally 100,000,000,000 tokens minted at launch.
- LEASH - "LEASH is the second token within the Shiba Inu protocol. The goal of LEASH is to offer a synth to hedge the price of DOGE on the ETH blockchain. This token is also meant to include scarcity as one of its core protocols. Leash is designed so that every day at 6.30 AM UTC, the price of LEASH will rebase to 1000/1 the price of DOGE. The developers intend to only launch 100,000 LEASH tokens over the life of the project." [Hamilton, D. "Investing in Shiba Inu (SHIB) – Everything You Need to Know". (Accessed July 24, 2021). This rebase structure was shut off by Shiba Inu and now LEASH is an ordinary ERC-20 token with a limited supply of only 107,647 tokens minted.
- BONE - Bone is the DeFi token for Shiba Inu's ShibaSwap. There are 250,000,000 minted BONE tokens and this token serves as the governance token for the ecosystem.
These tokens may be staked in the Shiba Inu Exchange (ShibaSwap) earning the investor the following rewards: xSHIB for staking SHIB tokens; tBONE for staking BONE tokens; and xLEASH for staking LEASH tokens. As contained in the Shiba Inu whitepaper, a visual representation of the incentive reward for the SHIB token is as follows (there are similar incentive rewards for BONE and LEASH as well):
ShibaSwap has been launched and for access, you may click here.
According to Shiba Inu's 'Woofpaper' (it's version of a white paper), the goal of Shiba Inu is to engage in an “experiment in decentralized spontaneous community building.” [Shiba Inu. Woofpaper. (Accessed July 24, 2021)]. The 'Woofpaper' explains this as follows:
Projects built on the foundation of community involvement are the untamed wilderness of our future. As we move further away from rigid financial structures and traditional mindsets, we become free to discover new ways to solve problems and relate to one another.
In a world ruled by the commodification of time, community-run projects are more than just a change of pace, they are a way to practice the radical acceptance of others.
When success depends on the shared strength of the individuals who make up a collective, we are forced to shift our perspectives to align with those around us. The Shiba Inu Ecosystem is our way of recognizing the importance of tearing down this long-established paradigm.
[Id.].
Shiba Inu is built upon the concept of 'decentralization'. Quoting Ryoshi (the anonymous founder of Shiba Inu): "We believe through the power of collective decentralization we can build something stronger than a centralized team ever could create. A community-run token is nothing without the united individuals who give it purpose.” [Id.].
Unfortunately, not much else can be said about the working of Shiba Inu. One reason rests in the lack of a definitive roadmap for the project. Interestingly, this lack of a roadmap is discussed in the 'woofpaper':
Our roadmap will remain top secret to ensure our continued advantage in this highly competitive space, but releasing a basic overview will allow our holders to understand the intentions of the core development team.
We will standardize Shiba Inu products and integrate them into the global marketplace for long term success.
This will look like launching our Artist Incubator and upcoming NFT project, releasing ShibaSwag, and even potentially actualizing real-world applications that move us beyond the digital landscape.
[Id.].
Likewise, a review of Shiba Inu's Official Medium Page (here) delivers little toward the overall working of this token. In fact, during the entire time of Shiba Inu's existence, only four articles have been added to this official page.
CONCLUSION
Beyond what has been said above, there is very little information concerning the working of the Shiba Inu token. It appears that it is living up to one of it's tag lines: "The best is yet to come!" [Id.].