Shiba Inu community administrator Ragnar has called the attention of SHIB enthusiasts to how ecosystem tokens will work together amid the imminent launch of a new privacy layer-3 (L3) blockchain.
In a recent post on X, Ragnar alerted community members to a post that explains the collaborative utility of ecosystem tokens, including the upcoming TREAT. The post was prepared by “Buzz,” the founder of K9 Finance DAO, a partner of Shibarium.
I recommend everyone who has questions about how SHIB ecosystem tokens will work together with K9Finance. Here you have a nice explanation, even one about how Treat will work in our new SHIB privacy layer coming soon to the Shiba ecosystem. https://t.co/n97lrVABhy
— RagnarShib.eth (@RagnarShiba) April 29, 2024
BONE, TREAT, and KNINE
Notably, the privacy blockchain is being developed on Shibarium, the main layer-2 blockchain for the Shiba Inu ecosystem. Buzz first pointed out that BONE will remain the gas token on Shibarium.
Accordingly, he highlighted that Shibarium operates as a proof-of-stake network, where validators play a crucial role. Validators receive BONE tokens as a reward for contributing computing power.
Besides, BONE holders have the opportunity to delegate to validators, aiding in network security while also earning yield.
On the other hand, Buzz explained that the TREAT token can be likened to an additional “tip” for transactions on Shibarium L2, enhancing their privacy.
Notably, TREAT is not yet launched. However, following its official unveiling, TREAT will be a multi-functional asset for the Shiba Inu ecosystem, particularly for the L3 privacy chain under development.
The Crypto Basic called attention to all the disclosed utilities of TREAT in a separate report last month.
Additionally, Buzz highlighted that the KNINE token operates the staking infrastructure for Shibarium. The K9 Finance founder further mentioned that KNINE serves as a governance token and facilitates stake-to-earn opportunities from validators utilizing the K9 DAO infrastructure.
Notably, KNINE launched last month, soaring by over 700% a week after its debut.
Delegated Token “knBONE”
Furthermore, Buzz explained that the “knBONE” token is delegated to a validator utilizing the K9 infrastructure. The token represents BONE in a 1:1 ratio.
Buzz noted that knBONE can only be minted when an individual delegates and locks their BONE. Upon redemption of BONE, the corresponding knBONE is extinguished and there are never fractional reserves.
Moreover, he emphasized that knBONE enables users to delegate to a validator, enhance network security, earn yield, and obtain a receipt token in return that can be utilized across all aspects of Shibarium.
More Details on knBONE Staking
In response to Buzz’s post, community member Couch Adventures raised a pertinent question. He asked what happens if he stakes 1000 knBONE and swaps it for a token, and that token’s value decreases, and he swaps it back to knBONE.
The community member is concerned about the possibility of receiving fewer knBONE tokens in such a scenario.
Buzz affirmed that upon executing the trade, they would receive fewer knBONE tokens in return. However, he added that someone else would earn the shortage, as the original staked tokens remain unchanged.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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