ShibaInu is an ecosystem with the idea of Dogecoin

05.07.2021 |

For an article about the ShibaInu ecosystem

The success of the joke cryptocurrency Dogecoin has spawned many imitators. While some simply copied the meme currency by changing some basic parameters, for example, the reward for finding a block or the size of the final issue, others went further, creating entire ecosystems. The creators of Shiba Inu also followed the latter path, who decided to put the idea of joke money into their coins, while using a completely different approach to implementation.

The history of the appearance of the “dog” coins

Unlike his ideological father, the developer or the group of creators of Shiba Inu has not yet been able to calculate, however, and Satoshi Nakomoto it has not been named, which is not so surprising in the world of cryptocurrencies. Starting at the end of summer 2020, the project was published on behalf of the pseudonym Ryoshi. The main goal of the project, according to the creator, is to conduct an experiment to create a self-organizing community, which, for example, has developed around bitcoin, with which Shiba Inu is nevertheless compared.

The initiators of the project chose a rather interesting development strategy, which, as it turned out, bore fruit. So all the tokens created were distributed as follows:

  • 550 trillion was sent to Vitalik Buterin, calling this transaction the burning of coins;
  • the remaining coins were frozen in a liquidity pool to Ethereum, on a decentralized exchange.

The last step made the coins available to ordinary users, and anyone could purchase them. Also, such actions made it possible to avoid speculation on the commercial component of the new cryptocurrency, and freed the organizers from accusations of using the pump and dump scheme, which was observed during the last cryptocurrency boom and mass ICO.

At the same time, when creating the pool, 10 Ethereum coins were frozen, and the key for accessing the address was destroyed. The funds were allocated by an unnamed cryptocurrency entrepreneur, for whom this amount is not critical. Ryoshi said that he met this mysterious investor at one of the 2019 conferences.

The device of the Shiba Inu ecosystem

Unlike Doge, Shiba does not have its own distributed registry and is issued on the basis of Ethereum in the form of a token of the ERC-20 standard. So the basic asset of the Shiba Inu ecosystem is the SHIB token, the issue of which at the start was one quadrillion coins, of which about 45% have already been burned.

Two more tokens are also involved in the project. Both of them were issued later than the main asset, and have a much smaller issue size. The issue of BONE (Bone ShibaSwap) amounted to 250 million tokens, of which only six million are in circulation so far. This coin, in essence, is a management token, and its first use is scheduled for next year when voting for changes proposed by the community, called itself ShibArmy. The second token is Leash Dogecoin Killer (LEASH), which has issued only 107,647 coins, while all of them are already in circulation.

Due to the choice of the parent Ethereum blockchain, the SibaInu ecosystem has a fairly high degree of decentralization and security. Although initially only Ryoshi was involved in the launch, later its own army of fans developed around the project, among whom there were many specialists from various fields who made a feasible contribution to the development. ShibArmy plans to bring the popularity of Shiba Inu to such an extent as to take the leading trading volumes on the network.

Currently , the ShibaSwap ecosystem is represented by six sections:

  • SWAP. This is a platform for decentralized exchange on the Ethereum network, which allows you to exchange cryptocurrencies and coins of the project itself.
  • DIG. This section allows users to place their assets in liquidity pools, for which LP tokens are issued, from which you can earn income in another section.
  • WOOF. This is where you can invest your tokens and get rewards for it. All payments take place in the BONE token manager.
  • BURY. In this section, you can place project tokens for staking.
  • NFTS. ShibaInu also launched their own section with non-interchangeable tokens, which were named ShiboShi.
  • BONEFOLIO. This is a consolidated platform with all the analytical information about the project. Here you can find information about the volume of liquidity, current profitability and much more.

Rewards in Shiba Inu are paid once every two weeks in one block. Initially, the amount of distributed rewards between liquidity providers was 1000 BONE in one block, however, this amount is constantly decreasing, and the minimum is planned to be reached by the beginning of 2024. At the same time, part of the management tokens are transferred to the management of a special fund that has a multi-signature address. Only the oldest members of the Shiba Inu community who have contributed to the development of the project and its promotion on the network can manage this pool. For this purpose, a special group of OG admins has been created, whose members also act as managers for various teams working on the project. The money from the fund will be distributed among the participants for direct contributions, and part of the savings will be spent on marketing plans to promote and popularize the ecosystem.

Elon Musk, Vitalik Buterin and Snowden

On the name of Elon Musk, the initial promotion strategy of Shiba Inu was built. Only in contrast to the attempts to enlist the support of the odious billionaire, Ryoshi decided to oppose the new “dog” token to the projects of the founder of Tesla. So, in one of the statements, it was said that the project will exceed the capitalization of any Mask coin, while not exceeding the cost of one cent per token. And if we compare it only with Dogi, then at some point it was possible. Shiba not only bypassed the Great Dane by capitalization, but also confidently entered the TOP 10 cryptocurrencies. If stable coins are not taken into account in the rating, then SHIB still ranks tenth in terms of capitalization.

It was decided to use Vitalik Buterin’s name in a different way. As already mentioned, the creator of the project sent 50% of the entire issue of basic tokens to the address of the founder of Ethereum, stating that as long as Buterin does not betray the project, he has a future and prospects. However, at some point Vitalik “let down” the project, deciding to abandon another joke coin. He sent 50 trillion as a charitable contribution to the India Covid-Crypto Relief Fund, and burned the remaining coins on his wallet irrevocably. And if at first Shiba showed a dizzying growth of thousands of percent in a short time, then Vitalik’s actions brought down the rate by 50% from the record.

Edward Snowden, a fighter for people’s rights to digital freedoms, also spoke about this project, however, as well as about dogs at the time. He did not recommend Shiba to his subscribers for purchase or investment, as a project without special prospects and ideas. However, Snowden said that he may not be able to understand the nature of the “dog” coins himself due to a lack of a sense of humor. Although his opinion was not reflected on the course of the coin.

The Future of ShibaInu

If Dogecoin does not have so many forks that could gain fame, then the idea of Shiba Inu has found its implementation in other projects. However, none of them, like the parent, is based on any revolutionary ideas or technology implementation. To continue the boom, a group of leaders and developers of the project will have to constantly arrange provocations, maintain excitement and try not to leave the information field. If interest in the coin disappears in various communities, then it is unlikely that the coin will be able to maintain the exchange rate and capitalization.