Shiba Inu Projects To Be Funded With ETH, Not Shiba Ecosystem Tokens - Here’s Why

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Upcoming Shiba Inu projects such as the Shiba metaverse will be funded through tokens or coins outside the Shiba ecosystem, SHIB dev Eric M has said in the Discord server.

Answering questions in the Bone Channel of the Shiba Discord, Eric, known also as Penny, explained that using the likes of SHIB, BONE, or LEASH for expenses would only damage the economic aspects of the ecosystem.

Here’s why.

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Shiba Development Costs Won’t Use SHIB

Speaking about the Shiba Inu metaverse, which he is currently developing, Eric M said further details about the metaverse Lands sale - which gives priority to LEASH holders - could be revealed during the ShibGuru AMA on February 22.

However, the Shiba developer said that metaverse land won't be purchased with LEASH, nor will it cost SHIB or BONE. Prospective owners will use ETH to buy land.

Explaining this, he said “projects won’t be funded with ecosystem tokens anymore,” suggesting new projects will also require ETH payments.

“Funding a project with our ecosystem tokens is a mess,” he added. “We cannot cash them without dumping our system. So if the goal is to fund a project, we can’t use our tokens to do it.”

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According to the developer, the metaverse could cost millions in expenses. He even threw out the $15-30 million number as a potential cost.

When one user said paying expenses with SHIB would drive up the price, the developer pushed back. He noted the potential damage this could cause. “Do you want us to dump $20m of SHIB/LEASH/BONE?”

“So imagine us dumping millions of our tokens. Bad idea on the economic side.”

Instead, Eric said that “once the metaverse is live, our ecosystem tokens will be used”, suggesting utility will exist within the Shiba metaverse for the likes of SHIB.