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Within the Shiba Inu community, adaptability and creativity hold immense significance in the swiftly changing cryptocurrency market. One particular innovation that has gained substantial recognition is Shibarium. While the focus has primarily been on increasing adoption, there are ongoing discussions and concerns regarding potential hikes in gas fees. This concern is especially relevant when considering its potential impact on the adoption and valuation of Shiba Inu.
WE NEED TO USE #Shibarium
It won’t burn $SHIB if you don’t use it!
Onboarding millions of people to Shibarium will take time and community effort.
More information about burns will be revealed in the upcoming documentation.
BUT it has been clearly explained in… pic.twitter.com/xjo27NlPP8
— 𝐋𝐔𝐂𝐈𝐄 | ✨Shibarium✨ (@LucieSHIB) September 4, 2023
Lucie, a member of the Shiba Inu team, recently highlighted the possibility of gas fees experiencing an upward revision. This situation contradicts the established reputation of Shibarium as a layer-2 protocol celebrated for its swift and cost-effective transaction capabilities. In her post, she mentioned that the growing utilization of Shibarium leads to heightened network congestion, subsequently resulting in increased gas fees. The specifics of the fee structure have not yet been disclosed by the Shibarium team, leaving room for the possibility that the fees could surpass initial expectations. Nevertheless, not everyone within the community welcomed this potential scenario.
Shiba Inu’s Philosophy: Burns with Purpose
Shib Informer, using X (formerly Twitter), outlined a series of arguments explaining the potential drawbacks of raising fees on Shibarium.
Burns vs. Demand: Vitalik’s Massive SHIB Token Burn
One pivotal episode in the Shiba Inu narrative involved the substantial burning of SHIB tokens, a move orchestrated by Vitalik Buterin. Nevertheless, this substantial token burn happened concurrently with a notable market correction, highlighting a vital lesson: merely burning tokens doesn’t inherently ensure a positive effect on SHIB’s price. Instead, what fueled the subsequent price surge was the increased market demand that materialized months after the token burn.
The Strategy for Boosting SHIB’s Value and Adoption
For SHIB’s value to increase steadily and for it to gain broader adoption, it is crucial to adopt a more dependable strategy. This strategy revolves around offering incentives to SHIB holders to keep their tokens and extending the usefulness of Shibarium. By doing so, it not only boosts SHIB’s market capitalization but also cements its position as a more influential participant in both the cryptocurrency sector and the global economy.
Numerous Projects Contribute to Success
While an individual project may not wield significant influence on its own, it’s important not to overlook the collective effect of multiple projects utilizing Shibarium. Low fees act as a catalyst, motivating these new initiatives to engage in the ecosystem without incurring substantial financial constraints.
The Vital Role of Low Transaction Fees
The key to accomplishing these goals relies on effectively utilizing Shibarium. To draw in a broad range of users and projects, Shibarium must keep transaction fees at a minimal level. While substantial investors certainly have an important role, the genuine engine of success is widespread adoption, driven by numerous individuals and projects.
Shib Informer emphasizes that mass adoption remains the primary route to success. As development teams work diligently to enhance Shibarium’s usage, it’s crucial to recognize that value is not solely derived from token burns but primarily from growing demand. While the idea of raising Shibarium fees might be tempting, it is essential to maintain a broader outlook. The true catalyst for advancing the Shiba Inu ecosystem is considered to be the demand driven by Shibarium’s adoption.
