BONE is a governance token that grants holders the right to make decisions and vote on important matters within the Shibaswap ecosystem. It serves as a way of decentralizing decision-making and ensuring that community members have a say in the platform's development. The more BONE a user holds the more voting power they have. This means that those who hold more tokens have a stronger voice in governance issues.
BONE's voting system functions similarly to other governance tokens in that each proposal comes with a minimum quorum and an approval threshold. When a proposal meets the minimum quorum, eligible voters can vote on the proposal. If it reaches the approval threshold, it becomes a law, and the applicable changes are made within Shibaswap. This process ensures that the community's voice is heard in the decision-making process.
BONE differs from other governance tokens in terms of how it addresses voter apathy. Shibaswap has implemented a "decay" function to keep voters active. This means that if a user doesn't vote, their voting power will decrease over time. This ensures that active community members, who are passionate about Shibaswap, hold the most voting power.
BONE has a current circulating supply of 250,000,000 tokens, with only 43,000 holders. Compared to other governance tokens, this supply is relatively low, meaning that there's more potential for scarcity and demand. Shiba Inu has taken a unique approach to supply, with each token having a maximum supply of 1 quadrillion. Like most cryptocurrencies, SHIB tokens have no intrinsic value, meaning that their value is subject to supply and demand. So, the lower the supply, the higher the potential value.
ShibaSwap and BONE are part of the larger Shiba Inu ecosystem, in which Vitalik Buterin, the co-founder of Ethereum, received trillions of SHIB tokens. While many speculated that VB would offload the coins instantly, he decided to donate them instead. This donation marked the largest crypto donation in history, with around $1.2 billion worth of tokens given to the India Covid-Crypto Relief Fund. The donation was a significant moment for the Shiba Inu community, and it helped distinguish the coin as a legitimate player in the crypto space.