Tokenomi SHIBAINU (SHIB)

Shiba Inu (SHIB) is an ERC-20 token launched on Ethereum in July 2020. It is the foundational token of a broader ecosystem that includes other tokens like BONE, LEASH, and the newer TREAT token, all of which serve distinct roles within the ShibaSwap decentralized exchange (DEX) and the Shibarium Layer-2 network.

Issuance Mechanism

The initial issuance of SHIB was characterized by a unique distribution model designed to promote decentralization and community involvement:

• Total Supply Distribution: Upon launch in July 2020, the total supply of SHIB was split into two equal halves:
  • 50.00% (500.00 trillion SHIB) was locked into the SHIB-ETH liquidity pool on Uniswap.
  • 50.00% (500.00 trillion SHIB) was allocated to the personal wallet of Ethereum co-founder Vitalik Buterin.
• Token Burning: Of the supply sent to Vitalik Buterin, approximately 82.00% (around 410.00 trillion SHIB) was subsequently burned. This massive burn significantly reduced the circulating supply.
• Current Burning: As of January 24, 2024, approximately 410.40 trillion SHIB (about 41.04% of the total token supply) has been burned. The project team has also stated that an automatic SHIB token burn mechanism is expected to be implemented on the Shibarium Layer-2 network, though further details on this development were not available.

Allocation Mechanism

The initial allocation was designed to be a "fair launch" with no tokens reserved for the founding team:

The project did not conduct any funding rounds, such as an Initial Coin Offering (ICO).

Usage and Incentive Mechanism

The SHIB token, along with the ecosystem's other tokens (BONE, LEASH, and TREAT), serves multiple functions within the ShibaSwap DEX and the broader ecosystem:

SHIB Token Functionalities

As of early 2024, SHIB has four primary intended uses:

1. Staking ("Bury"): Users can stake SHIB to receive xSHIB tokens. Holding xSHIB entitles users to:
   • Inflationary BONE rewards.
   • A share of 0.10% of swap fees generated on ShibaSwap, paid in ETH.
2. Liquidity Provisioning ("Dig"): Users can provide SHIB and a paired asset as liquidity to pools on ShibaSwap. Rewards include:
   • Transaction fees from swaps (paid in SHIB and the paired asset).
   • Staking the received LP tokens ("Woof") to earn inflationary BONE rewards.
3. Burning for RYOSHI Rewards: SHIB can be burned via the ShibaSwap Burn Portal to earn RYOSHI token rewards. The Ryoshi Vision protocol distributes 1% of all RYOSHI transactions as rewards every two weeks.
4. Burning on Shibarium: SHIB is intended to be burned on the Shibarium Layer-2 network, which is designed to facilitate an ecosystem of decentralized applications, including "Shib - The Metaverse" and the Shiba Eternity card game.

Ecosystem Tokens (BONE, LEASH, TREAT)

The Shiba Inu ecosystem utilizes a multi-token structure where each token has a specific role:

• BONE (Bone ShibaSwap): The ecosystem's governance token. Staking BONE yields tBONE, which grants voting power in the Doggy DAO for community governance proposals. BONE is also the native gas token and staking asset for validators and delegators on the Shibarium Layer-2 network.
• LEASH: A loyalty token that grants holders exclusive perks and access, such as bonus rewards for liquidity providers and early access to land sales in the metaverse.
• TREAT: The newest token, serving as the Transactional Rewards for Engagement and Access Token. TREAT is integral to ecosystem rewards, governance, and security. It powers the WOOF Wars: Farming 2.0 yield farming mechanism and is used for strategic decision-making and unlocking advanced features like SHIB Pay.

Locking Mechanism and Unlocking Time

Locking Mechanism

The primary locking mechanism in the Shiba Inu ecosystem is staking (referred to as "Bury") on the ShibaSwap DEX:

• Staking SHIB, BONE, and LEASH: Users stake these tokens to receive derivative tokens (xSHIB, tBONE, and xLEASH, respectively). This process locks the underlying tokens to earn rewards and governance rights.
• Liquidity Provision (LP Token Staking): Liquidity providers receive LP tokens, which can then be staked ("Woof") to earn BONE rewards, effectively locking the liquidity position.
• Governance Locking (BONE): Staking BONE for tBONE is required to vote on governance proposals via the Doggy DAO and Snapshot.

Unlocking Time

Information regarding specific, scheduled unlocking times or vesting schedules for the SHIB token was not available. The locking mechanisms primarily relate to staking within the ShibaSwap DEX, where tokens are locked for the duration of the staking period chosen by the user.