Proposal to Use $SHIB as a Gas Token on Ethereum
In a recent proposal, a prominent Shiba Inu community member suggested the idea of using SHIB as an additional gas token on Ethereum. The proposal aims to increase SHIB’s value, with a target price of $0.01. Central to the plan is the integration of SHIB alongside ETH as a gas token, accompanied by an automatic burn mechanism. This mechanism would reduce SHIB’s circulating supply over time, enhancing its scarcity and potentially driving up its market value.
Comparison to Solana’s Model
The proposal draws comparisons to Solana’s transaction fee model, in which 50% of transaction fees are burned, a factor often cited in SOL’s price appreciation. By adopting a similar dual-token model on Ethereum, the proponent believes SHIB’s involvement in gas fees could lead to substantial reductions in its circulating supply, bolstering the conditions for price growth.
Community Reaction and Skepticism
The proposal has generated a mixed response within the Shiba Inu community. While some are intrigued by the potential value increase, others remain skeptical about the practicality of such a structural change on Ethereum. Critics argue that direct burn mechanisms for SHIB may be a more effective approach than implementing complex modifications to Ethereum’s framework. There is also concern regarding Ethereum’s ability to accommodate a dual-token model without impacting its current stability.
Technical and Regulatory Challenges
Technical and regulatory challenges are seen as significant hurdles in adopting SHIB as an Ethereum gas token. Shiba Inu’s marketing specialist, Lucie, previously addressed similar suggestions, noting that Ethereum’s Proof of Stake (PoS) model is fundamentally built around ETH as the sole gas token. She emphasized that integrating SHIB would require considerable modifications to Ethereum’s infrastructure, a process that could be both costly and potentially disruptive.
Emphasis on Shibarium’s Capabilities
Given the obstacles associated with altering Ethereum’s structure, some Shiba Inu community members advocate for a focus on Shibarium, Shiba Inu’s Layer 2 solution. Shibarium includes a built-in burn mechanism within its transaction process, which gradually reduces SHIB’s circulating supply. This model presents a practical approach to enhancing SHIB’s scarcity and supporting its price growth without necessitating changes to Ethereum’s foundational framework.
Shibarium’s Recent Progress
In 2023, Shibarium experienced a surge in transaction activity, which has contributed to an increased SHIB burn rate. Many community members believe that higher transaction volumes on Shibarium may offer a feasible path to achieving SHIB’s price goals, providing a realistic alternative to the complexities involved in modifying Ethereum.
In conclusion, while the proposal to make SHIB a gas token on Ethereum presents an innovative approach to potentially elevating its value, the technical, regulatory, and structural challenges make it unlikely in the near term. Shibarium, with its current burn mechanism and transaction growth, may offer a more viable path for the Shiba Inu community to realize its ambitions.
