The recent proposal for Shiba Inu (SHIB) to serve as a gas token on Ethereum has sparked a wave of discussions within the Shiba Inu community. This idea, brought forward by a community member known as Lola, suggests that this integration could possibly catapult the SHIB price to $0.01. However, the feasibility of such a notion has been questioned by several community members.
According to Lola, if SHIB were used as a gas token on Ethereum, a surge in its price could be triggered. This would be facilitated through an automatic burn mechanism, similar to the model employed by Solana, where 50% of the fees from each transaction are burned. Lola’s argument is that this approach could potentially reduce SHIB’s total supply, thereby increasing its scarcity and driving its price up.
The idea of replicating the Solana burn mechanism and integrating it with the Ethereum network has been met with a degree of skepticism. Some community members have suggested that a burn mechanism specifically designed for SHIB might yield better results and be a more feasible approach.
Implementing a dual-token economy on Ethereum could prove to be a challenge, especially considering Ethereum’s existing structure. In a dual-token system, two separate tokens fulfill distinct roles within the network, such as raising investment in compliance with security regulations and supporting network operations. While this model has been successfully implemented by projects like VeChain and MakerDAO, it is tailored to meet the specific needs of each project.
Earlier this year, Shiba Inu marketing specialist, Lucie, pointed out that making such a transition on Ethereum could pose potential technical and regulatory issues. Ethereum’s system operates on a Proof of Stake (PoS) consensus and relies heavily on ETH for its operation. Introducing SHIB as a gas token would require substantial adjustments to the network and could potentially introduce technical and security challenges.
Moreover, Ethereum’s infrastructure and ecosystem have been built around ETH as the native token. Adapting SHIB as a gas fee token would demand changes to the existing ecosystem, including modifications to software and protocols. This could be time-consuming, costly, and potentially create confusion for users accustomed to the established Ethereum model.
In response to Lola’s proposition, some community members suggested focusing on increasing transactions on Shibarium, which already burns SHIB as part of its fees. This suggestion comes following a spike in transactions on Shibarium last year, which resulted in a dramatic increase in SHIB’s burn rate.
While the idea of integrating SHIB as a gas token on Ethereum has sparked interest and discussions within the community, the feasibility and potential challenges of such an undertaking cannot be overlooked. It remains to be seen how this proposal will be received by the Ethereum community and how it could potentially impact the future of SHIB.
