Bone ShibaSwap

What is Bone ShibaSwap (BONE)?

The BONE cryptocurrency is used throughout the Shiba Inu ecosystem and primarily serves as a governance token of the DAO backing the popular ‘memecoin.’

Shiba Inu is one of the two major memecoins in the cryptocurrency industry alongside Dogecoin and takes its name from the breed of dog that Dogecoin was built around. It bills itself as a “Dogecoin Killer,” adopting the “Ethereum Killer” term often bestowed on new smart contract blockchains.

Unlike Ethereum’s competitors, the SHIB cryptocurrency did, for a time, manage to “flip” DOGE, overtaking its market capitalization value in 2021. But, contrary to Dogecoin, the Shiba Inu community has been making significant strides in filling out the ecosystem around the project.

The BONE token is a result of these efforts, alongside projects like ShibaSwap, Shibarium, SHIB: The Metaverse, and the Doggy DAO. ShibaSwap is the first decentralized exchange centered around the Shiba Inu community. It is central to the story of BONE, but the token’s utility can be seen throughout the Shiba Inu ecosystem.

When Was Bone ShibaSwap Launched?

The BONE token’s supply started at zero when the ShibaSwap DEX went live in the summer of 2021. For the first two weeks of the platform’s deployment, 1000 BONE tokens were emitted per Ethereum block and split among liquidity pool rewards on ShibaSwap.

This distribution served as an accelerated emission to ensure a wide BONE distribution and was followed by a reduction event, bringing emissions down to 100 BONE per block. Users of ShibaSwap could buy BONE tokens using the ETH/BONE pair or earn them, as mentioned, by providing liquidity.

The ETH/BONE liquidity pools received the highest amount of BONE rewards, while ETH/LEASH and ETH/SHIB also received a significant BONE allocation.

How Does Bone ShibaSwap Work?

The BONE token is used to reward liquidity providers on the ShibaSwap platform, as a gas token on the Shibarium layer 2, and as a currency in SHIB: The Metaverse. Perhaps most importantly, it is used as a governance token in the Doggy DAO.

ShibaSwap’s release coincided with that of the BONE token and served as the first way anyone could acquire the BONE token. Users who provided liquidity to certain pools could claim BONE tokens by staking ShibaSwap liquidity provider tokens. Now, the “Bury” function on ShibaSwap also enables users to collect BONE rewards alongside being a liquidity provider.

SHIB: The Metaverse, which was announced in March 2022, will also utilize the BONE token along with SHIB and LEASH, the other two cryptocurrency tokens in the Shiba Inu ecosystem. This project requires users to lock LEASH tokens for land sales but will reward them in BONE tokens. The Doggy DAO, launched in February 2018, uses BONE as a governance token. This decentralized autonomous organization is part of the Shiba Inu community’s vision towards decentralization and began with governance over the WOOF liquidity pools on the ShibaSwap platform.

Users stake BONE on ShibaSwap to receive tBONE tokens. These tBONE tokens are then used to distribute voting power across the platform.

What Makes Bone ShibaSwap Unique?

It’s hard to suggest that the BONE token is in any way truly unique, but it does enjoy a very important role within the Shiba Inu ecosystem.

Despite the playfulness and perhaps intentional overuse of the dog theme by the project, it does stand as a testament to the power of community within cryptocurrency. While Dogecoin is increasingly driven by influencers, the “Shib army” continues to fluff out the Shiba ecosystem with projects that could add value.

While it’s well recognized that SHIB is a memecoin, ShibaSwap does actually allow users to swap assets in a decentralized manner. The upcoming SHIB: The Metaverse project, the SHI stablecoin, Shibarium layer 2, and various other projects in the ecosystem are all building Shiba into something more, one step at a time.

How is the Bone ShibaSwap Network Secured?

The entire Shiba Inu ecosystem is currently deployed on the Ethereum blockchain, although the SHIB: The Metaverse project is intended to use the Shibarium layer 2 as a host network.

Ultimately, this means that Shiba Inu and its entire litter of tokens, including BONE, rely on Ethereum for security and consensus. This is a good thing because Ethereum is one of the most secure decentralized blockchains in existence.

Ethereum is secured by a proof-of-stake consensus mechanism that incentivizes node operators to produce and validate blocks. This is done via a block reward, and each validator node has a chance to produce a block that is proportional to how much ETH they stake as a bond.

The more ETH staked, the more they stand to earn, but also the more they stand to lose since misbehavior is penalized by confiscation of their bond or slashing. Between slashing and block rewards, along with a minimum bond of 32 ETH, most network validators are well incentivized to do their job as well as they can.

What is the Use of BONE?

As mentioned, the BONE token is used across the Shiba Inu ecosystem. It is given to liquidity providers and used as a governance token on ShibaSwap via the Doggy DAO, will be used as gas on Shibarium, and takes the form of rewards on SHIB: The Metaverse.

How Much BONE is In Circulation?

BONE has a maximum total supply of 230 million tokens, with over 160 million already in circulation. It is an ERC-20 token on the Ethereum blockchain and is issued with each block to liquidity providers on ShibaSwap.

How Do You Buy BONE?

The best place to acquire the BONE token is via ShibaSwap, where you can get it as a reward for providing liquidity or buy it with ETH, LEASH, or SHIB. However, since it is an ERC-20 token, Uniswap can also be used to buy BONE tokens.

BONE is also listed on a handful of centralized exchange platforms, including MEXC, which listed it soon after it began the emission. CEX platforms are always on the hunt for popular tokens, where they can collect a fee from users on each trade and avail themselves of the token’s benefits if the users do not withdraw.

How Do You Store BONE?

If you’re just hoping for BONE to appreciate in value, you could store them on a CEX account. This will allow you to sell and perhaps even cash out quickly in fiat.

However, storing BONE on a CEX won’t allow you to take part in governance on ShibaSwap, or take advantage of staking on the platform. You’re also opening yourself up to many other risks by storing tokens with a custodian, such as the failure or insolvency of the platform, a pause in trading, or withdrawals at inopportune times.

By storing BONE tokens in your own crypto wallet, you’re insulating yourself from these risks. However, when self-custodying crypto, it’s wise to store your wallet keys safely and be wary of which websites and dApps you connect your wallet.

Is BONE a Good Investment?

Shiba Inu is, for better or for worse, now an established mainstay of the cryptocurrency industry. While it began with no utility and as a copycat of Dogecoin and the publicity stunt of sending half its supply to Ethereum founder Vitalik Buterin, the Shib Army continues to build.

Success isn’t a guarantee for Shiba Inu, and not much of what it’s doing is original. SHIB is an imitation of Dogecoin, ShibaSwap is among hundreds of DEX platforms on Ethereum alone, and functional layer 2s abound while Shibarium hasn’t even made public beta yet.

And yet, the project and its community are decentralized and, as far as is known, insulated from venture capitalists and other centralized influences. Nevertheless, its existence and continued success mean that the Shiba Inu and its BONE token may not be just a fad and must be taken seriously.