The Shiba Inu ecosystem, one of the most popular projects in the cryptocurrency space, is at a crucial moment with the recent vote on a governance proposal that could redefine its structure and operation.
From August 31 to September 4, holders and owners of SHIB, the native token of Shiba Inu, are called upon to decide on the distribution of 37,5 ETH, about $92.000 at the time of writing, from a partner project.
This vote, according to Shiba Inu lead developer Shytoshi Kusama, promises to strengthen decentralization and accountability within the community.
Shiba Inu's new governance proposal
In a publication Recently, Kusama presented the new governance proposal, entitled “Ensuring Accountability and Advancing Decentralization: A Proposal for Shib's DAO Evolution and Fund Allocation for partner funds”, which seeks to address concerns about fund management and transparency in decision-making. In the post, Kusama emphasized the need for a robust system that not only allows for active community participation but also protects users from potential fraud and “rug pulls” — situations where investors’ funds are siphoned off by a project’s developers.
“For us, a truly decentralized system with a development team that often has to pay for development was necessary with a new approach. Especially if we want to onboard the next billion users.”, Kusama noted.
In this way, Kusama pointed out that Shiba Inu voters have four options to decide the destination of the funds related to the project.
The first of these options indicates that the funds can be deposited in a smart contract managed by a group of signatories who will act according to what the DAO decides. The second option raises the burning of the funds, which could help increase the scarcity of the SHIB token in the market. On the other hand, the third option points out the allocation of funds to community projects, which would allow it to be used to fund initiatives within the community. At this point, Kusama noted that this decision could be made by the wallet holder without further consultation.
Finally, the lead developer of Shiba Inu raised a fourth option that proposes the retention of funds by the ownerIn this case, the owner of the wallet is the one who would maintain full control of the ether funds.
To date, support has been overwhelming for the first option, with 84,55% of voters in favor of having the DAO manage the funds. The second option, burning the funds, has a support rate of 15,45%, suggesting that a portion of the Shiba Inu community has a strong desire to see a positive impact on the value of the token in the market.
The impact on the ecosystem and the reaction of SHIB price
The governance proposal presented not only seeks to improve fund management, but also has the potential to influence the price of SHIB.
Shiba Inu (SHIB) is positioned as one of the top cryptocurrencies in the market by capitalization and also one of the most popular memecoins in the entire crypto industry. In the last week, its price experienced a 12% drop in the market, trading at around $0,00001323 USD, at the time of writing this article. Despite this correction, SHIB’s trading volume has increased by almost 70%, reaching $161 million USD in the last few hours, according to data from CoinMarketCap. This trading volume reflects the importance and liquidity of the cryptocurrency in the market.
Source: CoinMarketCap
Despite the current correction in SHIB price, market analysts are keeping an eye on how this vote may impact the price recovery.
Decentralization and responsibility: Keys to the future of Shiba Inu
The community is confident that implementing more effective and transparent governance can attract new investors and revive interest in the memecoin.
As Kusama noted, the evolution of the Shiba Inu DAO is essential to attracting the next billion users. The developer stressed that this can only be achieved if users feel they have a say in the future of the crypto ecosystem.
Thus, while the market reaction to the vote has been cautious, the Shiba Inu community seems optimistic. Many believe that the vote could have a positive effect, as active community participation is an indicator of a growing ecosystem. Increased engagement from SHIB holders could translate into renewed interest from potential investors, which is crucial for the future of the cryptocurrency.
