1. Proposal for SHIB as Ethereum Gas Token: A prominent Shiba Inu community member recently proposed using SHIB as a gas token on Ethereum, aiming to increase its value to $0.01. The plan involves integrating SHIB alongside ETH with an automatic burn mechanism, which would reduce SHIB’s supply, potentially enhancing its scarcity and market value.
2. Comparison to Solana’s Model: The proponent, Lola, drew parallels with Solana’s transaction fee model, where 50% of fees are burned, contributing to SOL's price appreciation. She suggested a similar dual-token economy on Ethereum, where SHIB is involved in gas fees, could lead to a significant reduction in SHIB’s circulating supply, supporting price growth.
3. Community Skepticism: While some find the idea intriguing, others are skeptical. They argue that it may be more effective to focus on direct burn mechanisms for SHIB rather than pursuing structural changes to Ethereum. There is concern over Ethereum's flexibility to adopt a dual-token model without impacting its stability.
4. Technical and Regulatory Challenges: Experts highlight potential technical and regulatory hurdles with SHIB’s integration as a gas token on Ethereum. Shiba Inu’s marketing specialist, Lucie, previously addressed similar suggestions, noting that Ethereum’s Proof of Stake (PoS) system is built around ETH as the sole gas token. She indicated that integrating SHIB would require substantial alterations to Ethereum’s infrastructure, which could be costly and disruptive.
5. Focus on Shibarium’s Capabilities: Given the challenges with altering Ethereum’s framework, some community members suggest focusing on Shibarium, Shiba Inu’s Layer 2 solution. Shibarium includes a burn mechanism in its transaction process, gradually reducing SHIB’s circulating supply and offering a practical way to increase SHIB’s scarcity without changing Ethereum’s structure.
6. Shibarium’s Progress in 2023: Shibarium’s transaction activity surged last year, leading to an increase in SHIB’s burn rate. Many believe that higher transaction volumes on Shibarium may offer a realistic path to achieving SHIB’s price goals without the complexities associated with modifying Ethereum.
7. Disclaimer: This information aims to provide insights for readers. It is advised to conduct independent research and invest responsibly, as all buying, selling, and investment activities in crypto assets remain at the reader’s discretion.