Shib Tokenomics: How to Burn Faster and Earn More

Yona GushikenInFocus9 hours ago13 Views

A pivotal opportunity to shape the future of SHIB burns now rests with the community. Developers are spotlighting a clear path to accelerate the ShibTorch mechanism on ShibaSwap — a move that strengthens the project’s deflationary core and opens a new stream of rewards for those who take part.

The Shiba Inu community has long embraced token burns as a ritual of value — a deflationary gesture rooted in Ryoshi’s vision and immortalized by Vitalik Buterin’s 2021 burn of 410 trillion SHIB. 

But today, that legacy is no longer symbolic. It’s mechanical. And according to a Shiba Inu developer, it’s hitting a snag — one the community can now help fix, while earning in the process.

Why BONE-SHIB Liquidity Matters for the Burn

At the heart of Shibarium’s burn process is ShibTorch — an automated system that converts base gas fees, collected in BONE, into SHIB, and then sends the tokens to a dead wallet. It’s an elegant mechanism designed to sustain burns as long as activity continues on the network.

But the mechanism depends on something deceptively simple: liquidity. Specifically, the liquidity of the BONE-SHIB trading pair on ShibaSwap, the ecosystem’s native decentralized exchange. And that’s where the system occasionally fails.

“Every time the burn kicks off, it tries to swap BONE for SHIB here, but sometimes fails ‘cause there just isn’t enough liquidity,” Nika, Shiba Inu blockchain developer wrote in a recent post for the community.

Without sufficient depth in the BONE-SHIB pool, ShibTorch can’t complete its swap — which stalls the burn. It’s a technical issue, but also a solvable one. And it’s opened a door for community members to step in.

How to Provide BONE-SHIB Liquidity on ShibaSwap

For those unfamiliar with liquidity provisioning, the process may seem like niche DeFi territory — but it’s accessible with a few guided steps.

1. Go to the Liquidity Section on ShibaSwap

Visit shibaswap.com and navigate to the Liquidity tab.

2. Choose Between v1 or v2 Pools

V1 is simpler, ideal for standard liquidity.

V2 offers concentrated liquidity, where you set a price range — which can yield more fees but requires precision.

3. Select the BONE and SHIB Token Pair

Ensure you’re adding to the BONE-SHIB pair. Double-check tokens before proceeding.

4. Enter the Amount

You’ll need to supply equal value of both tokens (e.g., $50 worth of SHIB and $50 worth of BONE).

5. For v2 Users: Set Price Range and Fee Tier

If using v2, define a price range for your liquidity to be active. Choose a fee tier — 0.3% is standard.

6. Confirm the Transaction

Approve the contract to use your tokens, then click “Add Liquidity” and confirm via your wallet.

Shib Tokenomics: How to bone-shib liquidity allows Faster burn and let you Earn More

Earning From Liquidity: Rewards in Return

Liquidity providers, or LPs, aren’t donating funds. They’re putting tokens to work.

Each time a swap occurs in the BONE-SHIB pool — whether by users or the automated ShibTorch — it generates a small transaction fee, which is shared among all LPs in proportion to their contribution. That means the more active the pool, the more rewards generated.

Given that ShibTorch performs regular BONE→SHIB conversions, this pool sees high, consistent trading volume. For LPs, that translates into a steady fee stream — paid in BONE — as long as their liquidity remains in the pool.

To begin collecting those rewards, LPs need to take one final step: stake their LP tokens in the Woof or Farming section of ShibaSwap. This activates yield farming, unlocking additional BONE rewards.

“More liquidity = smoother burns, more rewards for LPs,” Nika summed up.

A Collective Burn, Not a Solo Act

In SHIB’s early years, token burns often made headlines as isolated gestures — grand moves by whales or devs meant to signal commitment. But today, burning is no longer a moment. It’s a process. It’s built into the chain. And for it to function at scale, it requires collective action.

Providing BONE-SHIB liquidity is no longer just a DeFi move — it means participation in the rhythm of Shiba Inu’s evolving tokenomics.

So as the burn engine hums and the ecosystem grows, one question lingers:

Will the pack keep watching the flame flicker — or will it feed the fire and earn from its own momentum?

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