Shiba Inu Team Unveils Main Reason Why It Created BONE

Shiba Inu marketing strategist Lucie has taken to X to explain the major reasons behind the creation of Bone (BONE), ShibaSwap’s governance token.

The X post is part of an ongoing effort to educate the community about the roles of all Shiba Inu ecosystem tokens. In her recent analysis, Lucie shed light on the reason why the Shiba Inu ecosystem team created BONE.

Here’s Why BONE Was Created 

Lucie said BONE was initially created as a reward token for SHIB holders. It essentially provides incentives for people who hold onto SHIB – the primary token of the Shiba Inu ecosystem. 

However, she pointed out that the motive behind BONE’s creation was later modified to include other functions. In particular, she stated that BONE now burns SHIB on Shibarium, Shiba Inu’s layer-2 scaling solution. 

$BONE was created to reward $SHIB holders but was later changed to help burn $SHIB on #Shibarium.

Each plays its own role.

— 𝐋𝐔𝐂𝐈𝐄 | SHIB.IO (@LucieSHIB) May 8, 2024

BONE Utility on ShibaSwap 

The modification of BONE’s purpose indicates an adjustment in ecosystem priorities. By playing the role of a reward token, BONE is used to reward liquidity providers who stake their SHIB on Shiba Inu’s decentralized exchange, ShibaSwap.

ShibaSwap users who stake SHIB can receive a reward of up to 33% annual percentage yield (APY) in BONE. Since BONE is the main token of the ShibaSwap ecosystem, the token can be used to create and vote on proposals within the DEX.

– Advertisement –

BONE Contributes to SHIB Burns Via Shibarium

Following the inception of Shibarium, the team introduced more utility for BONE. The team selected BONE as the official gas fee token for Shibarium. Consequently, Shibarium users are required to pay transaction fees in BONE. 

Notably, a portion of the transaction fees generated on Shibarium is set aside to burn SHIB. Here, the team uses some of the BONE tokens obtained from Shibarium transaction fees to buy and burn SHIB.

This process has led to the incineration of a staggering 56 billion units of SHIB. The number of Shibarium-powered burns surged to 56 billion following the incineration of 13.4 billion SHIB in March. At the current exchange rate of $0.00002336, the 56 billion tokens were worth $1.3 million.

Shiba Inu Ecosystem Tokens Fulfills Unique Function 

Meanwhile, Lucie stressed that each Shiba Inu ecosystem token, including SHIB, BONE, and the upcoming TREAT, fulfills its unique function.

While BONE serves as a reward and governance token on ShibaSwap, with its use case extended to facilitate SHIB burns, SHIB remains the primary token of the Shiba Inu ecosystem, mainly used for staking and transactional purposes.

Last month, Lucie revealed the utility of the upcoming TREAT token, noting that the asset would essentially function as the reward token for the Shiba Inu ecosystem. Additionally, TREAT will become the governance and gas fee token of Shiba Inu’s upcoming layer-3 blockchain solution.