TLDR: Shibarium is a promising new Layer 2 protocol, set to launch by the Shiba Inu community, designed to rival EVM-based Layer 2 solutions such as Optimism and Arbitrum. The main purpose of Shibarium is to offer a scalable solution for Shiba Inu community applications, enabling them to handle increased system demands efficiently.
A unique feature of Shibarium is its token burn mechanism, which applies deflationary pressure to $SHIB tokens. This mechanism resembles the ETH burn process on the Ethereum network. Shibarium is now live in Beta on the Goerli Testnet with applications for users to test.
What is Shibarium Chain?
Shibarium is an upcoming Layer-2 blockchain network, developed by the Shiba Inu community on Ethereum. The aim is to expand Shiba Inu from a meme coin into a comprehensive ecosystem with DeFi applications, metaverse apps, and blockchain games. Offering improved transaction speeds, reduced fees, and facilitated decentralized app development, Shibarium uses a proof-of-stake model to address Ethereum's scalability issues.
It introduces BONE as its native coin and employs a SHIB token burn mechanism to manage supply and stabilize value. Shibarium aims to offload a significant amount of transactions from Ethereum for enhanced speed and security.
What is the Difference Between Shiba and Shibarium?
Shibarium and Shiba Inu are related but different concepts. Shibarium is a Layer 2 blockchain network being built on top of the Ethereum blockchain, which will be linked to the Shiba Inu coin. Shibarium is being developed to serve as a scaling solution for Shiba Inu and to enable faster and cheaper transactions.
In contrast, Shiba Inu is the cryptocurrency token used as gas for transactions on the network. The dynamic between Shibarium and Shiba Inu is similar to Ethereum and ETH tokens or Solana and SOL tokens, where the blockchain network and the cryptocurrency token are separate but interconnected entities.
When is the Shibarium Release Date?
Shibarium, according to the documentation, is set for its launch in May 2023. The Layer 2 network is presently in its testnet phase, with over 20,000 active users testing native staking and validation features. Interested individuals can participate in the Shibarium testnet via the Shibariumtech page.
How much SHIB will Shibarium Burn?
The quantity of SHIB tokens that Shibarium will burn remains uncertain, as it depends on network activity and demand for block space within the Shibarium ecosystem. If a flourishing ecosystem of DeFi, Metaverse, and GameFi applications emerges, the burn could potentially amount to billions of tokens, significantly reducing the initial supply of over 1 quadrillion tokens.
Conversely, if Shibarium fails to gain enough momentum and compete with leading Layer 2 solutions like Arbitrum and Optimism, the burn may not sufficiently influence the price or fundamentals.
In conclusion, Shibarium, a Layer 2 protocol being developed by the Shiba Inu community, is poised to revolutionize the ecosystem by offering improved transaction speeds, reduced fees, and facilitating decentralized app development. This network, scheduled to launch in May 2023, is currently in its testnet phase with over 20,000 active users.
Shibarium's unique token burn mechanism, which applies deflationary pressure to $SHIB tokens, could significantly impact the supply based on the network's demand. However, the success of the burn mechanism in affecting price or fundamentals depends on Shibarium's ability to gain traction and compete with other Layer 2 solutions like Arbitrum and Optimism. Stay tuned for more updates on this exciting development in the Shiba Inu community.