A Shiba Inu community figure recently discussed how SHIB could potentially hit a target price of $0.01, but the proposal seems out of reach.
Notably, the concept hinges on Shiba Inu’s integration as a gas token on Ethereum in a dual-token model. This idea has triggered discussions within the community, with some proponents expressing optimism and others questioning its feasibility.
Shiba Inu as Ethereum Gas Token
In a post on X, community member “Lola” suggested that if SHIB serves as a gas token on Ethereum, it could trigger substantial price increases. Lola argued that using SHIB as a gas token, alongside Ethereum’s primary token, could bolster price growth through an automatic burn mechanism.
If you want a higher #SHIB price like .01 then you’ll need to talk to @VitalikButerin to use SHIB as gas on dual token economy Ethchain . Imagine it as a gas with an auto-burn per transaction like solana 🫡
If not , 1-2 zeros out is my bet this bullrun – What is yours ?
— Lola (@CryptoLollla) November 5, 2024
For context, the approach would aim to reduce SHIB’s total supply and potentially increase scarcity gradually. She compared the idea to Solana’s transaction model, where each transaction contributes to SOL’s long-term value by burning 50% of the fees.
Lola believes if Shiba Inu becomes a gas token on Ethereum and replicates the Solana burn mechanism, the large volume of transactions on the Ethereum network could help reduce SHIB’s supply, potentially bolstering a price push toward $0.01.
In response to Lola’s idea, some Shiba Inu community members expressed their skepticism, suggesting that pushing for a burn mechanism specifically for SHIB might be a more realistic approach.
Notably, achieving a dual-token economy on Ethereum might be problematic, especially considering Ethereum’s existing structure.
In a dual-token system, two separate tokens fulfill unique roles within the network. For instance, some tokens could serve as an avenue to raise investment, complying with security regulations, while others support the network’s operational functions.
Notable projects like VeChain and MakerDAO have successfully implemented dual-token models, but each system is tailored to the specific needs of its project.
Previous Considerations
Despite this, transitioning Ethereum to accommodate SHIB as a gas token could pose a technical and regulatory issue. Earlier this year, Shiba Inu marketing specialist Lucie discussed this, noting Ethereum’s built-in design to use ETH as the sole gas token.
She highlighted that Ethereum’s system, which operates on the Proof of Stake (PoS) consensus, relies on ETH as a major part of its operation. Introducing SHIB as a gas token would likely involve massive adjustments to the network and could introduce technical and security challenges.
Lucie further pointed out that Ethereum’s infrastructure and ecosystem have grown around ETH as the native token. Making SHIB compatible as a gas fee token would likely demand changes to the existing ecosystem, including modifications to software and protocols.
Such a transition would be costly and time-consuming and could potentially create confusion for users accustomed to Ethereum’s established gas token model.
Meanwhile, others who responded to Lola’s proposition suggested that the community instead focus on bolstering transactions on Shibarium, which already burns SHIB with a portion of its fees. Notably, when Shibarium saw a spike in transactions last year, SHIB’s burn rate spiked dramatically.
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