Shiba Inu community administrator Ragnar has brought to the attention of SHIB enthusiasts the upcoming launch of a new privacy layer-3 (L3) blockchain and how ecosystem tokens will collaborate in this development. Ragnar, in a recent post on X, directed community members to an informative post by “Buzz,” the founder of K9 Finance DAO and a partner of Shibarium, explaining the collaborative utility of ecosystem tokens, including the soon-to-be-launched TREAT.
One notable aspect is that the privacy blockchain will be developed on Shibarium, which serves as the main layer-2 blockchain for the Shiba Inu ecosystem. Buzz emphasized that BONE will continue to function as the gas token on Shibarium. He further explained that Shibarium operates as a proof-of-stake network, where validators play a crucial role and receive BONE tokens as a reward for their computing power contributions. Additionally, BONE holders have the opportunity to delegate to validators, supporting network security and earning yield.
Buzz also shed light on the TREAT token, which can be seen as an additional “tip” for transactions on Shibarium L2, enhancing privacy. While TREAT has not yet been launched, it is expected to become a versatile asset for the Shiba Inu ecosystem, particularly for the L3 privacy chain currently being developed. The Crypto Basic previously outlined the various utilities of TREAT in a separate report.
In addition, Buzz highlighted the role of the KNINE token as the staking infrastructure for Shibarium. KNINE serves as a governance token and offers stake-to-earn opportunities through the K9 DAO infrastructure. Notably, KNINE experienced significant growth, soaring by over 700% just a week after its launch.
Furthermore, Buzz explained the concept of the “knBONE” token, which is delegated to a validator using the K9 infrastructure and represents BONE in a 1:1 ratio. knBONE can only be minted when an individual delegates and locks their BONE, and it ceases to exist when the corresponding BONE is redeemed. This system ensures that there are no fractional reserves. Buzz emphasized that knBONE allows users to delegate to a validator, enhance network security, earn yield, and receive a receipt token that can be used in various aspects of Shibarium.
In response to Buzz’s post, community member Couch Adventures raised a question regarding staking knBONE and the potential decrease in value if the swapped token’s value decreases and is swapped back to knBONE. Buzz confirmed that in such a scenario, the individual would receive fewer knBONE tokens in return. However, he clarified that the shortage would be earned by someone else, as the original staked tokens remain unchanged.
Disclaimer: This article serves as informational content and should not be regarded as financial advice. The views expressed in this article may reflect the author’s personal opinions and do not necessarily align with those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic holds no responsibility for any financial losses incurred.