Shibarium, an upcoming layer 2 network that aims to solve the issues of scalability, speed, and expense, is set to join the growing ranks of Ethereum-based blockchains. The network is expected to launch a beta testnet in the coming weeks, allowing developers to test its real-world functionality.
Layer 2 solutions, such as Shibarium, are built on top of layer 1 blockchains and help reduce bottlenecks with scaling and data. These networks bundle multiple off-chain transactions into a single layer 1 transaction, which can greatly reduce the data load and transaction fees.
The developers of Shibarium have announced that the network will have a focus on metaverse and gaming applications, as the NFT sector is expected to see significant growth in the coming years. Additionally, the network will also be used as a cheap settlement option for decentralized applications (dapps) built on the platform.
The launch of Shibarium could contribute to strong fundamentals for Shiba Inu (SHIB), a cryptocurrency that was created as a meme coin during the previous bull market but has since positioned itself as a serious project with its own blockchain network and dApp ecosystem. The launch could also further bolster the market capitalization of the network’s three ecosystem tokens: SHIB, Leash (LEASH), and Bone (BONE), which currently command over $5 billion in market value.
Each transaction on Shibarium will burn a certain amount of SHIB tokens, but the specific amount has not been announced yet. This process, known as a “burn,” refers to the permanent deletion of tokens from the total supply.
The network’s validators will lock up BONE to run the Heimdall validator software and Bor block producer nodes. These entities are responsible for maintaining and approving transactions on the network and are limited to 100 slots. Validators will also be required to stake a minimum of 10,000 BONE, and all rewards will be paid in BONE.
The developers of Shibarium have also announced that the network’s gas fees will be lower than the current fees on the Ethereum mainnet. Additionally, a TREAT token will be launched to incentivize liquidity pools on ShibaSwap, a decentralized exchange that uses SHIB, and provide users with low network fees and better rewards strategies.