Lucie, the marketing team lead at Shiba Inu is providing insights as to the real reason behind the creation of Bone ShibaSwap (BONE). According to Lucie’s X post, BONE was initially conceived as a reward token for SHIB holders.
Evolution of BONE’s Purpose
The move by Lucie aims to educate the Shiba Inu community about the role and significance of BONE within the broader Shiba Inu ecosystem. According to the executive, BONE offers incentives for those who hold SHIB, the primary token of the Shiba Inu ecosystem.
However, Lucie pointed out that the original purpose of BONE has gradually evolved to encompass additional functions. A significant change came with the launch of Shibarium, Shiba Inu’s layer-2 scaling solution. Here, the project adopted BONE to play a pivotal role in burning SHIB.
$BONE was created to reward $SHIB holders but was later changed to help burn $SHIB on #Shibarium.
Each plays its own role.
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) May 8, 2024
Keeping up with this role, Shiba Inu just recovered its deflationary metric, the burn rate. Available data shows the burn rate jumped by more than 5803% with over 26 million SHIB sent to dead wallets in an epic deflationary boost.
Evolution of BONE in Shiba Inu Ecosystem
Notably, BONE’s role as a reward token is central to its purpose within the Shiba Inu ecosystem. ShibaSwap users who stake SHIB can earn rewards in BONE, with a potential Annual Percentage Yield (APY) of up to 33%. The incentive inspires liquidity providers to stake their SHIB on ShibaSwap, thereby supporting the decentralized exchange’s growth and liquidity.
BONE’s utility was further extended to become the official gas fee token for the layer-2 scaling solution. This occurred after the launch of Shibarium, as users are required to pay transaction fees in BONE, driving demand for the token.
A fraction of the transaction fees generated on Shibarium is used to buy and burn SHIB, contributing to a reduction in the total supply. This system has led to a significant burn of SHIB tokens, with a staggering 56 billion units incinerated since Shibarium’s launch.
Notably, 13.4 billion SHIB tokens were burned in March alone, indicating the impact of BONE on Shiba Inu’s deflationary efforts. Overall, Lucie highlighted that each token within the Shiba Inu ecosystem serves a unique purpose. BONE is used for governance and reward on ShibaSwap. It also plays a role in SHIB burns on Shibarium. SHIB, on the other hand, remains the primary token, used for staking and transactional purposes.
