Ahead of the impending launch of a new privacy-focused layer-3 (L3) blockchain, Shiba Inu community administrator Ragnar is sharing insights on how SHIB “buffs” or community can collaborate to enhance functionality and privacy with tokens, including BONE, TREAT, and KNINE.
Shibarium’s Role and BONE’s Function
The anticipated L3 blockchain is being built on Shibarium, Shiba Inu’s layer-2 blockchain. Referencing a post by “Buzz,” founder of K9 Finance DAO, Ragnar detailed the collaborative functions the tokens will play in the Shiba Inu ecosystem.
I recommend everyone who has questions about how SHIB ecosystem tokens will work together with K9Finance. Here you have a nice explanation, even one about how Treat will work in our new SHIB privacy layer coming soon to the Shiba ecosystem. https://t.co/n97lrVABhy
— RagnarShib.eth (@RagnarShiba) April 29, 2024
BONE, which is the primary gas token on Shibarium, will continue to play a pivotal role in the network’s proof-of-stake operations.
Validators will earn BONE reward for maintaining network security by contributing computing power. Moreover, holders of BONE will have the opportunity to earn yield by delegating their token to validators.
TREAT, KNINE and Shiba Inu Community Concerns
The forthcoming TREAT token is focused on enhancing privacy. When launched, it will add an additional layer of utility to Shibarium L2. It is likened to a “tip” for transactions on the network. Additionally, TREAT is expected to serve various functions within the Shiba Inu ecosystem, especially as part of the emerging L3 privacy chain.
KNINE, which operates the staking infrastructure for Shibarium, will serve as a governance token to provide stake-to-earn opportunities. Upon its unveiling, KNINE witnessed a 700% surge within a week of its debut.
“knBONE” token, which is delegated to a validator using the K9 infrastructure can only be minted when someone delegates and locks their BONE. When users redeem their BONE the corresponding $knBONE is destroyed without fractional reserves. Community members have expressed concerns about receiving fewer knBONE tokens under such setup.
However, Buzz clarified that if a user swapped 1000 knBONE for another token that decreased in value, they would likely receive fewer knBONE tokens upon swapping back. He maintained that the original staked tokens would remain unchanged, implying that the shortage would be absorbed by another user who gained from the transaction.
Meanwhile, Shiba Inu’s price recently soared by 1.93% to $0.0000223 in response to some whale activity between two anonymous wallets that transferred a massive 3 trillion token.
