In mid-March, Tesla CEO Musk tweeted that he would keep a Shiba Inu in his own house. CoinGecko data shows that within a few hours after Musk’s tweet, the price of SHIB (Shiba Inu Coin) rose by 300%, and SHIB caused heated discussion for a while.
After a lapse of more than a month, SHIB has not cut a wave of “earth dog” projects, and the development of the community is still very rapid. It is expected that ShibaSwap will be launched at the end of April. Yesterday, pictures of Vitalik Buterin and the SHIB team together appeared on the Internet, which caused another wave of heated discussion in the market.
This article does not intend to focus on the development of the project itself, but would like to talk more about the interesting design and community phenomenon behind SHIB.
An interesting community practice
According to the official introduction, SHIB is an experiment of decentralized spontaneous community construction. The total issuance of SHIB is 1,000 trillion, of which 50% of the total supply has been put inUniswap, And lost the private key, and the remaining 50% is transferred to the Vitalik Buterin address. This means that users can freely buy and sell in Uniswap. The team losing the private key means giving up management rights. Because the price of SHIB is very low, some users hold billions or even trillions of SHIB coins.
The innovation of SHIB is to make it based onPoSThe token distribution of other mechanisms has completed a completely decentralized attempt.
Most blockchain projects are based onPoWMechanism, just like Bitcoin, everyone can dig. This kind of token distribution is completely decentralized; but with the emergence of the PoS mechanism, the distribution of tokens in blockchain projects has begun to have a certain degree of centralization Features. For projects based on PoS and other mechanisms, tokens generally reserve a part for the team and the foundation. The tokens reserved for the team are mainly used to encourage team development, and the tokens reserved for the foundation are mainly used for ecological construction. In practice, two The people are almost a group of people, and the disadvantages of centralization are very serious.
This approach of the Shiba Inu community requires everyone to buy on the open market, preventing developers from dumping their team tokens in the community, thereby ensuring fairness and complete decentralization. As for the tokens transferred to the Vitalik Buterin address, if Vitalik Buterin also participates in project development at the end, this 50% of the tokens may act as an ecological fund.
SHIB is also known as DOGECOIN KILLER (DogecoinKiller). From the perspective of the token mechanism, unlike Dogecoin, SHIB has an issuance limit and a destruction mechanism. SHIB is issued based on Ethereum. ShibaSwap will be launched at the end of April. Compared to Dogecoin which can only be used in application scenarios such as Twitter and Reddit rewards, SHIB can be better used in the Ethereum blockchain ecosystem. However, SHIB’s online time is relatively short, the circulation is not sufficient, and it needs time to test.
The decentralized community development trend behind SHIB
The popularity of SHIB is undoubtedly directly related to Musk’s tweet. Earlier, Musk praised SHIB and bought SHIB. This will naturally attract a lot of people’s attention.
In addition, the continuation of the popularity of SHIB also reflects the current serious phenomenon of retailing in the crypto market. Many people who enter the crypto market in 2021 have both FOMO sentiment, and anxiety about the “fear of heights” of currency prices, and even more worry about “leek taking over”. Not long after the birth of SHIB, you can have tens of millions of small pockets with pocket money, plus the fluke of “if it rises to 0.01 in a few years, it will be financially free”, and jointly promote the development and development of SHIB. Circulation.
Further exploration, the emergence of tokens such as SHIB is also a trend product of a community movement. On January 23, the share price of Game Station in the U.S. stock market was almost $40, and then soared, reaching $469 on January 28. It can be said that American retail investors severely taught a wave of capitalists and pressed Wall Street elites to the ground for friction. Behind this power, the WallStreetBets community on the Reddit forum is indispensable. By January 29, it was reported that Robinhood, the most popular stock trading platform among US retail investors, had closed the trading of GME stocks. The stock trading of the affected MC Cinemas (AMC) and Nokia (NOK) were also “unplugged”.
The soaring stock price of Game Station can be said to be the first large-scale community movement in the financial market. This phenomenon is related to the chaos and predicaments of the world today, such as the stagnation of world economic growth, the wide gap between the rich and the poor, and the monetary policy of the central bank. Disappointment and the pursuit of decentralization, etc. In the traditional financial market, the power of retail investors is ultimately weak. With the rise of decentralized finance ( DeFi ), the crypto market has attracted more and more attention.
On April 16, DOGE skyrocketed by 200% in a single day and tripled in two days. This is a very familiar taste. Behind Dogecoin, we can indeed see a number of community forces that support decentralization and anti-elitism, including: Elon Musk, Carole Baskin, Mark Cuban, Genne Simmons, Snoop Dogg and other celebrities as well as Wall Street Bets , SatoshiStreetBets and other organizations. Speaking of SHIB, in fact, its rise, as the official said: SHIB is an experiment in decentralized spontaneous community construction. What this article wants to say is that behind this kind of community experiment, it represents the rise and development trend of a decentralized community power, and SHIB is still just the beginning.