Discussing the Potential of Shiba Inu as Ethereum’s Gas Token

The
recent
proposal
for
Shiba
Inu
(SHIB)
to
serve
as
a
gas
token
on
Ethereum
has
sparked
a
wave
of
discussions
within
the
Shiba
Inu
community.
This
idea,
brought
forward
by
a
community
member
known
as
Lola,
suggests
that
this
integration
could
possibly
catapult
the
SHIB
price
to
$0.01.
However,
the
feasibility
of
such
a
notion
has
been
questioned
by
several
community
members.

According
to
Lola,
if
SHIB
were
used
as
a
gas
token
on
Ethereum,
a
surge
in
its
price
could
be
triggered.
This
would
be
facilitated
through
an
automatic
burn
mechanism,
similar
to
the
model
employed
by
Solana,
where
50%
of
the
fees
from
each
transaction
are
burned.
Lola’s
argument
is
that
this
approach
could
potentially
reduce
SHIB’s
total
supply,
thereby
increasing
its
scarcity
and
driving
its
price
up.

The
idea
of
replicating
the
Solana
burn
mechanism
and
integrating
it
with
the
Ethereum
network
has
been
met
with
a
degree
of
skepticism.
Some
community
members
have
suggested
that
a
burn
mechanism
specifically
designed
for
SHIB
might
yield
better
results
and
be
a
more
feasible
approach.

Implementing
a
dual-token
economy
on
Ethereum
could
prove
to
be
a
challenge,
especially
considering
Ethereum’s
existing
structure.
In
a
dual-token
system,
two
separate
tokens
fulfill
distinct
roles
within
the
network,
such
as
raising
investment
in
compliance
with
security
regulations
and
supporting
network
operations.
While
this
model
has
been
successfully
implemented
by
projects
like
VeChain
and
MakerDAO,
it
is
tailored
to
meet
the
specific
needs
of
each
project.

Earlier
this
year,
Shiba
Inu
marketing
specialist,
Lucie,
pointed
out
that
making
such
a
transition
on
Ethereum
could
pose
potential
technical
and
regulatory
issues.
Ethereum’s
system
operates
on
a
Proof
of
Stake
(PoS)
consensus
and
relies
heavily
on
ETH
for
its
operation.
Introducing
SHIB
as
a
gas
token
would
require
substantial
adjustments
to
the
network
and
could
potentially
introduce
technical
and
security
challenges.

Moreover,
Ethereum’s
infrastructure
and
ecosystem
have
been
built
around
ETH
as
the
native
token.
Adapting
SHIB
as
a
gas
fee
token
would
demand
changes
to
the
existing
ecosystem,
including
modifications
to
software
and
protocols.
This
could
be
time-consuming,
costly,
and
potentially
create
confusion
for
users
accustomed
to
the
established
Ethereum
model.

In
response
to
Lola’s
proposition,
some
community
members
suggested
focusing
on
increasing
transactions
on
Shibarium,
which
already
burns
SHIB
as
part
of
its
fees.
This
suggestion
comes
following
a
spike
in
transactions
on
Shibarium
last
year,
which
resulted
in
a
dramatic
increase
in
SHIB’s
burn
rate.

While
the
idea
of
integrating
SHIB
as
a
gas
token
on
Ethereum
has
sparked
interest
and
discussions
within
the
community,
the
feasibility
and
potential
challenges
of
such
an
undertaking
cannot
be
overlooked.
It
remains
to
be
seen
how
this
proposal
will
be
received
by
the
Ethereum
community
and
how
it
could
potentially
impact
the
future
of
SHIB.