Shiba Inu Developer Funds Shibarium, Raises Questions About Token's Scarcity

A recent exchange on the platform X between Ed Salomons and Kaal Dhairya, a Shiba Inu developer, has shed light on the funding of Shibarium, a layer 2 blockchain.

When asked who pays for the maintenance, security, and further development of Shibarium, Dhairya replied with two words: 'Yours truly.'

This means that Shibarium's operation relies on the private wealth of one individual, rather than a project treasury or venture capital.

Shibarium's network data shows that it processes 2,288 transactions a day, with a total of $55,760 in applications, but these figures are not sufficient to cover its running costs.

The burn rate of Shibarium is 2.8 million SHIB per day, but this is not a significant contributor to the token's scarcity, as it would take around 5,700 years for a single percent of the circulating supply to be burned.

Market capitalization calculations show that a price target of $0.01 would demand a valuation at three and a half times today's Bitcoin.