What is Shibarium? What Does It Mean for a Shiba Inu?

Shibarium, the move by popular meme coin Shiba Inu to gain a new identity, is eagerly awaited by the SHIB community. So what is Shibarium and what does it mean for the meme coin?

What is shibarium?

Shibarium is an upcoming layer-2 (L2) Blockchain network built on Ethereum for the Shiba Inu. It will turn Shiba Inu, a meme-coin, into a full ecosystem. cryptocoin.comAs you follow, Ryoshi, the anonymous creator of Shiba Inu, proposed the Shibarium project in a now-deleted blog post in May 2021. The project aims to build a Blockchain layer-2 solution on the Ethereum Blockchain. This expansion will transform Shiba Inu from a memecoin to a comprehensive ecosystem that includes a decentralized exchange (DEX), a metaverse, and blockchain games like Shiba Eternity.

Meme-coins are cryptocurrency tokens that are depicted with funny or animated internet memes. Often highly volatile, these coins are heavily influenced by pop culture and have an abundant supply leading to high inflation. The total supply of Shiba Inu (SHIB) is 1 quadrillion, or 1,000 trillion. The Shibarium portal aims to reinvent the Shiba Inu as a multi-project and stable ecosystem.

Shibarium developers have not yet released a launch date for the project. However, the alpha preview of the SHIB metaverse, which is part of the project, was showcased at SXSW 2023 from March 13-15. The release was originally scheduled for February 2023 but was delayed as the developers were eager to release a bug-free version after extensive testing at various stages.

What is Shibarium, what does it mean for Shiba Inu?

The advantages of using Shibarium include higher transaction speeds, lower fees, increased token usage, and seamless decentralized application (DApp) development. Despite a proof-of-stake (PoS) upgrade via Merge, the Ethereum Blockchain still struggles with scalability despite its robust security layer. Shibarium is also a PoS project and will help Shiba Inu scale while remaining connected to the Ethereum Blockchain. Shibarium is expected to stabilize the value of SHIB and turn the Shiba Inu into a value-added project with long-term prospects. Let’s see below how Shibarium will unlock the potential instilled in memecoin.

Better transaction speeds

Adding the 2nd layer to the Shiba Inu ecosystem, Shibarium will increase the transaction volume, allowing the project to grow significantly. Shibarium is expected to increase the processing speed significantly, but users will have to wait a little longer for definitive information on throughput.

lower fees

High transaction fees have been an issue for anyone transacting on Ethereum. Because sometimes the fee was higher than the transaction amount. For example, a small transaction worth $10 may require a high fee of $50 worth of Ether (ETH). Gas charges are likely to become negligible once the Shibarium layer-2 solution kicks in.

Complete ecosystem

As opposed to just being a meme-coin, the Shibarium ecosystem will be extensive and will include a variety of projects including the SHIB metaverse, ShibaSwap DEX and Blockchain games. Metaverse and games are expected to attract users, while DEX will provide better liquidity.

Token utility

Despite over 40% of the tokens being burned, the ample supply of SHIB remains a major hurdle to its growth. Shibarium addresses this by promoting BONE as the local currency. Once the Shibarium takes off, validators on the network will receive payments with BONE to secure and verify transactions. Moreover, every transaction in the new ecosystem will consume SHIB, which will be a mechanism to control the over-inflated supply of SHIB.

DApp development

DApps are decentralized applications with backend code running on a decentralized peer-to-peer (P2P) network. But the meme-coin didn’t have enough to function as a native cryptocurrency for DApps. Shibarium aims to develop a robust ecosystem that includes a layer-2 solution with Ethereum. It will provide the technical capability to build DApps within the ecosystem.

What is Shibarium and how will it work?

Shibarium will eliminate the bulk of transactions on the Ethereum Blockchain, enabling faster throughput without sacrificing security. The token burning mechanism will help keep inflation under control. The upcoming Shibarium will function by processing transactions while maintaining Ethereum’s security layer. Since most of the network activities will be handled by Shibarium, Ethereum will get rid of the transaction volume that could sink it. This will make transactions faster and more secure.

Before adopting PoS, Ethereum’s low throughput was causing network congestion and driving gas fees to an astronomical $50-$80 per transaction. Merge has increased the throughput of the network and lowered fees. Still, L2 solutions are necessary as the underlying Blockchain has to handle a flow of projects that slows it down.

To stop the inflation of SHIB and push its prices upwards, the Shibarium portal will have a mechanism to burn SHIB tokens that are paid as fees for executing transactions. This will reduce the tokens in circulation and stabilize the token price. Token burning is a mechanism for sending tokens to one-way wallets that accept but never release tokens. These tokens are lost forever. Over time, the constant burning of coins keeps inflation at bay in cryptocurrency projects.

Which tokens will form the Shibarium ecosystem?

There will be several coins with different roles in the Shibarium ecosystem. The Shibarium will have quite a different appearance compared to the Shiba Inu. However, the new ecosystem will have several digital tokens, all named in accordance with the dog theme:

• SHIB: SHIB, an ERC-20 token that powers the Shiba Inu, has been in the market since August 2020. Its price has always fluctuated and never exceeded the $1 mark per token.
• BONE: BONE, a governance token on ShibaSwap, is now also a utility token on Shibarium. Developers are paid with BONE. The supply of the token is limited to 230 million coins.
• LEASH: LEASH, whose supply is limited to 107,646 tokens, is staked by its holders to earn rewards. The rewards include xLEASH tokens that users can mint after removing the stake.
• TREAT: Designed as a reward token, TREAT will be paid out to validators and developers along with BONE after reaching a certain threshold. It will also promote liquidity pools on ShibaSwap
• SHI: The Shibarium ecosystem will also have the SHI stablecoin. The purpose of SHI is to balance and stabilize payments while avoiding market fluctuations.

What is the role of SHIB metaverse and ShibaSwap in the Shibarium ecosystem?

The metaverse and DEX in the upcoming Shibarium ecosystem will have a variety of use cases that will give users a reason to jump on the net. The SHIB metaverse is an immersive, 3D virtual space containing 11 centers, all with different characteristics. The Alpha Preview version of Metaverse was showcased at SXSW 2023 from March 13-15, offering a glimpse into the first of these hubs, the WAGMI Hub, which focuses on health and wellness.

At Metaverse hubs, users will be able to take advantage of a range of use cases, including building digital businesses, bringing real-life businesses to life, developing commercial and residential structures, playing innovative games, and even decentralized finance (DeFi) platforms. The Metaverse will have a total of 100,595 plots that will be unlocked over time.

Users can use the MetaMask wallet to participate in the land bidding and purchasing process. Bids and purchases need to be made with ETH. Users will find a virtual place to explore, discover, trade, sell and buy items in the hubs. The team hopes to present the community, called the ShibArmy, with a dynamic world that rewards their participation.

The hard fork of SushiSwap DEX, ShibaSwap allows users to perform multiple functions. They can provide liquidity to earn BONE, buy Non Fungible Token (NFT) airdorps, stake tokens to earn returns, trade tokens, vote on favorite cryptocurrencies to get BONE and farm tokens.

Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!