Violet Vallaya
Shib Army Lucie has taken to X (formerly Twitter) to explain the major reasons behind the creation of BONE, the governance token of the Shib ecosystem. The X post is part of an ongoing effort to educate the community about the roles of all Shib ecosystem tokens.
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 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 (DEX), 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 platform, it can be used to create and vote on proposals within the DEX.
BONE Contributes to SHIB Burns via Shibarium
Following the inception of Shibarium, BONE became its official gas fee token. In other words, 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 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.
Shiba Inu Ecosystem Tokens Fulfill Unique Functions
Meanwhile, Lucie stressed that each Shib ecosystem token, including SHIB, BONE, and the upcoming TREAT, fulfills its individual 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 ecosystem. It is 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 Shib ecosystem.
