- BONE, TREAT, and KNINE drive the Shiba Inu ecosystem, powering Shibarium and the upcoming L3 privacy chain.
- BONE for gas, TREAT for privacy, and KNINE for staking and governance.
- knBONE enables secure delegation of BONE tokens to validators, ensuring network integrity amid token value fluctuations.
As the highly anticipated launch of the new privacy layer-3 (L3) blockchain approaches, Shiba Inu community administrator Ragnar has drawn SHIB enthusiasts’ attention to the collaborative utility of ecosystem tokens.
In a recent post on X, Ragnar highlighted an explanation by “Buzz,” the founder of K9 Finance DAO, a partner of Shibarium, detailing how tokens such as BONE, TREAT, and KNINE will work together within the Shiba Inu ecosystem.
BONE, TREAT, and KNINE: Key Players in Shibarium and L3 Privacy Chain
Buzz emphasized that BONE will continue to serve as the gas token on Shibarium, the main layer-2 blockchain for the Shiba Inu ecosystem. As Shibarium operates as a proof-of-stake network, validators play a crucial role in contributing computing power and receive BONE tokens as a reward.
BONE holders also have the opportunity to delegate to validators, aiding in network security while earning yield. The upcoming TREAT token, which is yet to be launched, will function as an additional “tip” for transactions on Shibarium L2, enhancing their privacy.
Meanwhile, the KNINE token operates the staking infrastructure for Shibarium, serving as a governance token and facilitating stake-to-earn opportunities from validators utilizing the K9 DAO infrastructure. KNINE launched last month and experienced a remarkable 700% surge in value within a week of its debut.
Delegated Token “knBONE” and Staking Dynamics
Buzz further explained the concept of “knBONE,” a delegated token that represents BONE in a 1:1 ratio when an individual delegates and locks their BONE to a validator utilizing the K9 infrastructure.
The knBONE token is minted only when BONE is delegated and locked, and it is extinguished upon the redemption of BONE, ensuring there are never fractional reserves.
The knBONE token enables users to delegate to a validator, enhance network security, earn yield, and obtain a receipt token that can be utilized across all aspects of Shibarium. However, a community member raised a concern about the potential loss of knBONE tokens when swapping them for another token that decreases in value.
Buzz confirmed that in such a scenario, the user would indeed receive fewer knBONE tokens upon executing the trade. However, he clarified that someone else would earn the shortage, as the original staked tokens remain unchanged.
