Shiba Inu DAO Is Overwhelmingly Against Minting BONE For Shibarium

Shiba Inu Doggy DAO Vote
Credit: Pixabay

The ongoing Shiba Inu Doggy DAO vote is strongly in favour of halting BONE rewards rather than minting more tokens ahead of the launch of the Shibarium Layer-2.

As BONE is the gas token of Shibarium, the SHIB team put forward to options that would allocate BONE rewards for Shibarium validators, letting the Doggy DAO have the final say.

The outcome of the vote now seems clear, with a whopping 98% of votes currently in favour of halting rewards.

Doggy DAO Vote For BONE Rewards

In a blog post relating to BONE farming, the Shiba team explained how BONE will fit into the Shibarium Layer-2. “Validators get rewarded in $BONE for their work,” it said. “To develop Shibarium and reserve BONE for validator roles, we require safeguarding a total amount of 20 million BONE.”

At its current price, 20 million BONE is around $8.7 million. With only 250 million BONE planned to for release, this makes up around 8% of the supply.

However, the SHIB team does not hold this BONE. This means they needed to consult the DAO on how to reserve this 20 million BONE.

It came down to two choices. Option A was to stop BONE farming at 230 million, and save the remainder for Shibarium validators. Option B would increase the BONE cap to 270 million, and use that extra 20 million for Shibarium.

Shiba Inu DAO In Favour Of Halting Rewards

After the voting period went live on June 19, it now looks like the DAO members will choose Option A and halt BONE’s ShibaSwap rewards for Shibarium. Two days into the vote, some 29 million staked BONE (tBONE) has voted for Option A. Meanwhile, just 557,000 tBONE is in favour of Option B.

This puts the voting breakdown at 98:2 in favour of Option A, a clear landslide.

Of course, the vote does remain open until June 26.

While the reasons for this will vary, some holders compared the over-minting proposal to the money-printing capabilities of governments. Such inflationary tactics are particularly controversial within cryptocurrency communities. Indeed, some even raised concerns about the BONE contract, questioning why this over-minting procedure was ever even possible.

Others also see a lower supply as better for their own holdings and BONE’s price, similar to why SHIB burns want to reduce the Shiba supply.

If the vote passes, BONE rewards on Shibarium will halt pretty soon. Currently, the minted BONE is at 225 million - just five million away from the proposed cap. The Shiba team said this could happen in the “next weeks”, as opposed to two years with the original cap.

For more articles like this, take a look at our Planet Crypto page.