What is Shibarium? - The Layer 2 blockchain of Shiba Inu

- 5 minute read

Mike Hesp
Mike Hesp

On the 12th of August, Shibarium was launched with fits and starts. What is Shibarium and what does the launch signify for the Shiba Inu ecosystem?

Short summary:

  1. Shibarium : Shibarium is a layer-2 solution built on top of the Ethereum blockchain, designed to create a distinct blockchain ecosystem for Shiba Inu. It enhances the functionalities and possibilities of the network.
  2. Scalability and Efficiency: The goal of Shibarium is to execute faster and more cost-efficient transactions compared to the Ethereum blockchain. This is achieved while retaining the security of Ethereum.
  3. Burning Mechanism : Shibarium incorporates a 'burning' mechanism where a portion of SHIB tokens is destroyed during transactions. This helps manage the inflation of Shiba Inu and aims for a long-term price increase.
  4. Tokenomics : Within Shibarium, various tokens with distinct functions exist, including SHIB, BONE, LEASH, and TREAT. These tokens serve specific roles within the ecosystem.
  5. Launch and Challenges: The launch of Shibarium on the 12th of August brought increased functionality, but also encountered challenges like network issues and a decline in SHIB's value. However, the team swiftly recovered, emphasized user security, and restored the bridge with Ethereum for transactions.

Table of Content

  1. What is Shibarium?
  2. How does Shibarium work?
  3. Features on Shibarium
  4. Shibarium's tokenomics
  5. The launch of Shibarium
  6. Conclusion

What is Shibarium?

Shibarium is a layer-2 solution built on the Ethereum blockchain, designed to create its own blockchain ecosystem for the cryptocurrency Shiba Inu. Through this, developers have expanded the network's functionalities and capabilities.

The goal is to conduct faster and more cost-effective transactions on the Shibarium network compared to the Ethereum blockchain. However, Shibarium still utilizes the security of the Ethereum blockchain. This enables developers to address Ethereum's widely discussed limitations, even with its transition to Proof-of-Stake, while also utilizing the security advantages of the Ethereum blockchain to their benefit.

How does Shibarium work?

As mentioned earlier, the Shibarium ecosystem is a layer-2 solution built on top of the Ethereum blockchain. Layer-2 blockchains are constructed atop layer-1 (the security layer). Shibarium processes its own transactions but utilizes the security of Ethereum. What Shibarium does is collect and process transactions without the need for Ethereum. As a result, the burden on the security layer of the Ethereum blockchain is reduced. This empowers blockchains like Shibarium to achieve greater scalability, higher transaction speeds, and energy savings, all while maintaining security.

Both Shibarium and transactions on the blockchain are secured by Ethereum. This is achieved through the Proof-of-Stake consensus algorithm. Since 'The Merge,' Ethereum has become a Proof-of-Stake blockchain. This entails validating new blocks and processing transactions through 'staking.' In short, ETH holders can 'stake' their coins, meaning they commit their ETH to the network by locking their coins in a staking pool for an extended period. As a reward, they receive extra ETH. More information about Proof-of-Stake can be found in our academy .

Shibarium and the 'burning' mechanism

The Shibarium ecosystem employs a ' burning ' mechanism. This means that a portion of the native coin, Shiba Inu (SHIB), is occasionally burned, effectively taken out of circulation (sent to a dead wallet). With Shibarium, this happens during each transaction. A portion of the transaction fees is then burned. This helps control the inflation of Shiba Inu and aims to exert control over the SHIB price in the long term.

Features on Shibarium

In addition to Shibarium, the development team of Shiba Inu has released various products in recent years. These products closely collaborate with Shibarium or are exclusive to Shibarium:

  • Shiboshis: Shiboshis is an NFT collection released by Shiba Inu. The collection comprises 10,000 copies and was launched on the Ethereum blockchain. During the launch, the collection was sold out within 34 minutes.
  • Shib The Metaverse: Shiba Inu's own metaverse aims to become the meeting place for the SHIB army, offering users the opportunity to generate passive income by collecting in-game items, receiving rewards, and managing their own parcels of land.
  • Shiba Eternity: Specifically developed for the community, it is an online card game known as the Shiba Eternity Collectible Card Game. The unique card game was created under the leadership of Shytoshi Kusama and William Volk and is a fantasy card game for Shiboshi enthusiasts. Shiboshi is a special breed of dog with its own technology, art, and warfare. The card game consists of 500 unique cards and 10,000 different Shiboshi, each with their own attributes, strengths, and weaknesses.
  • ShibaSwap: The DeFi platform specially developed by Shiba Inu is ShibaSwap. The platform is fully decentralized and provides a secure environment with unique tokenomics. The tokens SHIB, LEASH, and BONE each have their own functions and contribute individually to the platform's functionality.

Shibarium's tokenomics

Within the ecosystem of Shiba Inu's layer 2, Shibarium, there are various digital tokens, each with its own function. Below are the different cryptocurrencies within the network:

  • Shiba Inu (SHIB): SHIB is a memecoin developed by the pseudonym Ryoshi, used for executing transactions. It works in conjunction with the previously mentioned 'burning' mechanism within the ecosystem.
  • Bone ShibaSwap (BONE): BONE is the governance token of the ShibaSwap DEX, enabling the Shiba Inu community, known as the Shib Army, to vote on proposals made by developers. The more BONE you hold, the more your vote is worth.
  • Doge Killer (LEASH): On the Shiba Inu website , LEASH is described as a 'special token for loyal supporters of the ecosystem.' LEASH holders can provide liquidity on ShibaSwap in exchange for BONE rewards.
  • Treat (TREAT): TREAT, along with SHI, is the newcomer in the Shibarium ecosystem, providing liquidity for the SHI stablecoin. Additionally, TREAT serves as a reward token for ShibaSwap, the Metaverse, and the Shiba Collectible Card Game.
  • SHI: SHI is a stablecoin not yet launched by the developers. Limited information is available about this new stablecoin, but according to their X-channel, the token will be pegged to the USDC stablecoin.

The launch of Shibarium

On the 12th of August, the mainnet of Shibarium was launched, expanding the functionalities of Shiba Inu. This included optimizing the integration of Web3 applications, opening pathways to the gaming sector, and enabling the development of Dapps on the network.

However, the launch was not without its challenges . According to Shiba Inu's head programmer, Shytoshi Kusama, the network became overloaded due to a significant increase in users. As a result of this unfortunate news, the SHIB price dropped by over 8% within 24 hours. There was substantial speculation that these system errors could pave the way for fraudulent applications and rug-pull tokens on the network.

Not long after, the team behind Shiba Inu responded in a blog post assuring users that their assets were secure and that the network had successfully passed a two-day testing period, making it ready for a public launch. This news was met with great joy by the Shib Army .

Just over two weeks after the initial launch struggles, more positive news emerged from the Shiba Inu team: the bridge between Shibarium and Ethereum was once again operational , enabling payouts of tokens like SHIB, LEASH, and Wrapped Ether.


Shibarium signifies a significant advancement in the Shiba Inu ecosystem. It introduces a layer-2 solution atop the Ethereum blockchain, enabling faster and more cost-effective transactions. This is achieved by harnessing the security benefits of Ethereum while addressing the network's limitations. The 'burning' mechanism within Shibarium aids in controlling the inflation of Shiba Inu and aims to promote a price increase over the long term.

Within this ecosystem, various tokens serve distinct purposes, such as SHIB, BONE, LEASH, and TREAT. While information about the upcoming SHI stablecoin is limited, Shibarium has already made a strong impact with its launch. Despite initial challenges related to network overload, the Shiba Inu team rebounded by successfully passing the testing phase and restoring the bridge between Shibarium and Ethereum. This has bolstered community trust and highlighted the growth potential of the Shibarium ecosystem.

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