Tokens from the Shiba Inu ecosystem will work together in the upcoming L3 blockchain

Ragnar, administrator of the Shiba Inu community, called the attention of SHIB enthusiasts to how the ecosystem’s tokens will work together in the upcoming launch of a new privacy layer 3 (L3) blockchain.

In a recent post on X, Ragnar alerted community members to a post explaining 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.

BONE, TREATMENT and KNINE

In particular, the privacy blockchain is being developed on Shibarium, the leading layer 2 blockchain for the Shiba Inu ecosystem. Buzz first highlighted that BONE will remain the gas token on Shibarium.

As a result, he emphasized 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.

Additionally, BONE holders have the opportunity to delegate to validators, contributing to network security and also earning yield.

On the other hand, Buzz explained that the TREAT token can be compared to a further “suggestion” for transactions on Shibarium L2, improving privacy.

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Notably, TREAT has not yet launched. However, after its official presentation, TREAT will be a multifunctional resource for the Shiba Inu ecosystem, especially for the L3 privacy chain under development.

The Crypto Basic called attention to everything disclosed utilities of TREAT in a separate report last month.

Additionally, Buzz pointed out that the KNINE token operates the staking infrastructure for Shibarium. The founder of K9 Finance further stated that KNINE serves as a governance token and facilitates earning opportunities by validators using the K9 DAO infrastructure.

Notably, KNINE was launched last month, up more than 700% a week after its debut.

Delegate token “knBONE”

Furthermore, Buzz explained that the “knBONE” token is delegated to a validator using 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 fractional reserves never exist.

Additionally, he highlighted that knBONE allows users to delegate to a validator, improve network security, earn yield, and get a receipt token in return that can be used 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 exchanges it for a token, and the value of that token decreases, and he exchanges it for knBONE again.

The community member is concerned about the possibility of receiving fewer knBONE tokens in such a scenario.

Hum stated that after performing the operation, they would receive fewer knBONE tokens in return. However, he added that someone else will earn the shortfall, as the original staked tokens will remain unchanged.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.

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