SHIB Community Member Proposes Using SHIB as a Gas Token on Ethereum, Targeting a $0.01 Price

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.

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A Shiba Inu community member recently shared their thoughts on how SHIB could potentially reach a target price of $0.01, although the proposal seems ambitious.

The concept revolves around integrating Shiba Inu as a gas token on the Ethereum network in a dual-token model. This idea has sparked discussions within the community, with some members optimistic about the possibility and others questioning its feasibility.

Shiba Inu as Ethereum Gas Token

In a post on X, community member “Lola” suggested that if SHIB becomes a gas token on Ethereum, it could lead to significant price increases. Lola argues that using SHIB as a gas token, in conjunction with Ethereum's primary token, would boost the 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

To provide some context, the approach aims to reduce SHIB's total supply and potentially increase its scarcity over time. She likened 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 that if Shiba Inu becomes a gas token on Ethereum and incorporates a burn mechanism similar to Solana's, the large volume of transactions on the Ethereum network could help reduce SHIB's supply, potentially aiding in a price surge 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.

It's important to note that achieving a dual-token economy on Ethereum could be challenging, especially given Ethereum's existing structure.

In a dual-token system, two separate tokens perform unique roles within the network. For example, some tokens could be used to raise investment and comply with security regulations, while others support the network's operational functions.

Some notable projects that have implemented dual-token models include VeChain and MakerDAO, 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 present technical and regulatory challenges. Earlier this year, Shiba Inu marketing specialist Lucie addressed this topic, highlighting Ethereum's built-in design to use ETH as the sole gas token.

She noted 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 developed around ETH as the native token. Making SHIB compatible as a gas fee token would likely require changes to the existing ecosystem, including adjustments to software and protocols.

Such a transition would be costly and time-consuming and could potentially create confusion for users who are accustomed to Ethereum's established gas token model.

Meanwhile, some who responded to Lola's proposition suggested that the community instead focus on increasing 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 also increased dramatically.

DisClamier: This content is informational and shouldn't be considered financial advice. The views expressed in this article may include the author's personal opinions and don't necessarily reflect The Crypto Basic opinion. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses.

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