What is Shiba Inu (SHIB)?

Shiba Inu (SHIB) started as a memecoin built on the Ethereum blockchain and drew inspiration from the same “doge” meme that Dogecoin became famous for. 

Over time, the project has evolved into the Shiba ecosystem, a multi-utility protocol that includes NFTs, DeFi staking, gaming, Layer-2 development and governance.

Shiba Inu sets itself apart from the competition by being a truly decentralized community-led ecosystem which boasts a wide range of products and services.

Shiba Inu’s native crypto token, SHIB, can be classified as both an infrastructure token (thanks to its Ethereum L2 service) and a Media and Entertainment asset, under the memecoin category.

Infrastructure tokens focus on enhancing the functionality, efficiency and security of blockchains (in this case, Ethereum) and their dApps.

Memecoins capitalize on social media virality and community engagement to attract new users, often gaining rapid traction through humorous content, memes and endorsements from influential online personalities.

SHIB can be staked, lent, borrowed, and has built-in deflationary tokenomics — with every SHIB-based transaction, a portion of the supply is burned (permanently removed from circulation).

Kraken allows users to buy and trade SHIB, along with over 250 other types of cryptocurrencies.

Shiba is a community-based ecosystem of dApps built on Ethereum’s mainnet blockchain that evolved into a more developed suite of products which live on the Shibarium layer 2 (L2) blockchain. The core components of Shiba Inu are:

• Multi-token economy: The Shiba Inu economy runs on three different tokens which each serve a distinct function:

  • Shiba Inu (SHIB): The main token of the Shiba Inu ecosystem. SHIB can be buried (staked) for xSHIB, which earns rewards in BONE, SHIB, and ETH.

  • Leash Dogecoin Killer (LEASH): A loyalty token that can earn special rewards. LEASH can also be buried (staked) for xLEASH, which earns rewards in BONE and LEASH.

  • Bone (BONE): The governance token that allows holders to propose and vote on upgrades to the Shiba Inu ecosystem. BONE can be buried (staked) for tBONE, which earns rewards in BONE.

  • TREAT and SHI: Tokens introduced with the L2 blockchain (more on them below).

• Shibarium: Shibarium is the Shiba Inu ecosystem’s L2 blockchain. Validators on the Shibarium network must hold BONE tokens and are paid in BONE, the network’s gas token. Validators also receive TREAT, a fourth ecosystem token introduced with the Shibarium L2 designed to provide liquidity for the SHI stablecoin. Shibarium provides a “home base” for all dApps and other products in the Shiba Inu ecosystem, enabling cheaper and faster transactions while still benefiting from Ethereum’s security. Additionally, whenever a transaction takes place on the Shibarium blockchain, it will result in SHIB tokens being burned, which helps contribute to its deflationary mechanism.

Shiba Inu’s community has grown to be one of the most vocal and active ones in the crypto space. However, the Shiba team hasn’t just relied on their memecoin’s popularity, they’ve also actively expanded their ecosystem through constant development of various products and services.

ShibaSwap

ShibaSwap is the first Shib dApp which serves as a central hub for DeFi activities within its ecosystem. 

While its primary function is as a decentralized exchange (DEX), allowing for the swapping of various ERC20 tokens, ShibaSwap offers features like staking (BURYing), providing liquidity (DIGging), interacting with Shiba-hosted NFTs, and participating in governance proposals.

Shiboshi NFTs

In October 2021, Shiba Inu's developers launched 10,000 pixelated dog NFTs called Shiboshis, which sold out in 35 minutes. These unique digital collectibles feature a variety of traits, including accessories, clothes, fur, and headwear, determining their rarity and future utility in a planned blockchain-based game.

Shiba Eternity play-to-earn game

The Shiboshi NFTs play a role in Shiba Eternity, a play-to-earn card game where players build decks and battle against opponents. The Shiboshis act as character cards that can be used to gain an advantage in battles, or even access unique in-game features.

At its core, Shiba Inu aims to serve as an alternative to typical centralized systems, where only a few people have a say in anything. 

By decentralizing control, each member of the community can contribute to the ecosystem as they please. As a result, the Shiba Inu ecosystem has grown to include a wide variety of products which range from DeFi to metaverse gaming and NFT collections, as well as the Shibarium L2.

Someone may wish to purchase SHIB for the following reasons:

• Serve as a medium of exchange: SHIB can be sent to other users as a medium of exchange.
• Earn additional reward coins/tokens:  SHIB holders can stake (or "bury") their tokens to earn rewards in BONE, SHIB, and ETH. These rewards are distributed in proportion to the amount of SHIB staked and the duration of the staking period.
• Grant holders voting powers: Holding SHIB allows investors to vote on the direction of the project.

SHIB is used to pay for transaction fees on the Shiba Inu blockchain, but holders can also use SHIB to:

• Participate in the governance process of protocol: SHIB is used by the community to actively participate in the decision-making process of its protocols, ensuring a more democratic and inclusive approach to project management. 

• Use in Shib dApps:  SHIB can be used to interact with any dApp created on Shibarium.

• Stake SHIB: Holding SHIB allows token holders to vote on proposals (like protocol upgrades) and influence the direction of the network.

• Provide liquidity in Shib’s liquidity pools: Any SHIB investor can become a liquidity provider by depositing their tokens into liquidity pools. In return, they can earn fees from trades made against the pool.

Shiba Inu was founded on July 13, 2020 by Ryoshi and Shytoshi Kusama. The Shibarium project officially launched on August 16, 2023. 

Ryoshi 

• Title: Co-founder

• Professional Background/Qualifications: Information regarding Ryoshi’s background is unknown, as they have remained anonymous despite the project’s success.

• Key Contributions: Ryoshi is the anonymous founder of the Shiba Inu ecosystem and original creator of the SHIB token. In May 2022, after the SHIB token had soared into the top 10 largest cryptocurrencies by market cap, Ryoshi mysteriously deleted their tweet history and hasn’t been heard from since.

Shytoshi Kusama

• Title: Co-founder

• Professional Background/Qualifications: Like Ryoshi, Shytoshi has also remained anonymous. 

• Key Contributions: Shytoshi is the lead developer behind the ecosystem of Shiba Inu products. Shytoshi has been instrumental in the development and communication regarding the Shibarium L2 blockchain.

The project is also supported by the Doggy DAO, an official DAO of the Shiba Inu ecosystem controlled by tBONE (staked BONE) holders

Shiba Inu went through an initial DEX offering (IDO) to distribute its tokens.

The initial supply of 1,000,000,000,000,000 SHIB was distributed as follows:

50% – 500,000,000,000,000 SHIB – Uniswap liquidity pools

50% – 500,000,000,000,000 SHIB – sent to Ethereum co-founder Vitalik Buterin

Vitalik Buterin burned 90% of his SHIB holdings, an amount worth $6.7 billion at the time. Buterin then went on to give 50 trillion SHIB tokens (worth around $1.2 billion at the time) to an India COVID-19 relief fund set up by Polygon founder Sandeep Nailwal.

There is no plan to issue any additional SHIB tokens, and SHIB will continue to be deflationary as all transaction fees on Shibarium are burned.

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