Shibaken Finance: Next Steps

Welcome to our Q3 update, and projections for Q4.

TL;DR:

• The Shibaken Finance vision — to build a unique and powerful token ecosystem — is well on it’s way to crafting unity from the key elements of DeFi. From repurposing stored energy from distressed micro-cap projects to aiding the adoption of cryptocurrency on the local level — Shibaken Finance is focused on serving communities everywhere.
• The first stage of our development consisted of a cross-chain bridge. Our second stage will include our first yield farm and a new ecosystem element: the SHERPA token and swap platform.
• Keynote: during development of the bridge we discovered that the SHIBAK transaction tax is not 1% Burn, 1% Auto-Distribution to holders (as advised by the original developer). It is instead 2% Auto-Distribution, with a burn occurring by proxy due to distributions being sent to the dead wallet. This means the deflationary aspect of SHIBAK will gradually increase throughout the life of the project.

We’re pleased to bring you this important update about the Shibaken project. This is the first in a series of updates we will provide over the coming weeks detailing our plans for the future.

The team has been laying the foundation for a unique cryptocurrency ecosystem. Until this point we have not provided many details about the ecosystem, mainly because we needed to ensure that what we envision is technically possible; setting out a clear path to achieving it. With those requirements satisfied, today we begin showing you how the future of Shibaken will take shape.

Following in the footsteps of other proven DeFi models, the Shibaken ecosystem, through staking and yield farming, will provide a compelling incentive to community members to “hodl” their tokens. In exchange for member confidence in Shibaken, we are committed to strengthening our network; building a swap platform to attract undervalued tokens to our mission and purpose. Existing Shibaken holders will be the first in line to participate in the development of our ecosystem — including the establishment of our Liquidity Pools through pre-sales of new tokens.

A Note From Our First Medium Post

Parts of our introductory article in April were misleading. In that article, we made reference to plans for a token launchpad, and an imminent DAO release. Neither of those projects were initiated. In the end, as a new organization in a highly volatile sector, assurances from the project’s founding team about the need for those initiatives were overinflated. By early May, the original team at Shibaken had dissolved, and a new community-based initiative quickly reformed the enterprise. Today, the same team of 7 contributors continues to lead the project.

A Future DAO

It’s important for our network participants to understand — we consider ourselves to be part of a broader societal movement toward decentralization.

We are a community, a business, and an engine for economic and social change. The blockchain, by its nature, enables all of these things — and removes redundancies required by centralized systems. Instead of multiple organizations serving various aims, one organization now has the potential to encompass the values of work, and play, and culture and trade — all at once. And the name for this kind of organization? It is the DAO. The Decentralized Autonomous Organization.

The DAO provides the governance framework for many organizations in DeFi, and we think it holds the best potential in the market today for accomplishing our goals. Every day we develop new ideas, new software platforms, new partnerships, and new organizational structures. We are strengthening our root framework for a Shibaken DAO. In the not-too-distant future, expect an announcement in this area — and the release of a new DAO token — giving voting rights to every DAO token holder. We plan to balance our DAO structure between 3 guiding principles: social tokens, markets, and governance, as illustrated below.

Shibaken Tokenomic Discovery

In April, the original project developers told the community there was a 2% tax on every buy/sell transaction; 1% burn and 1% SHIBAK auto-distribution. This was incorrect.

During bridge development in Q3, we discovered the 2% tax on transactions does not include a programmed burn. To be clear — all 2% of the tax is distributed to holders.

Not having a programmed burn may sound disappointing to some. But after consideration, we feel it is beneficial to the community as whole.

The first benefit is that everyone is receiving double the passive income than originally thought.

Secondly, in spite of no programmed burn, tokens are still being sent to the dead wallet address — part of its share of the 2% distribution.

As there was a manual burn of around 4.8% of the token supply in the earliest days of Shibaken, this wallet has been receiving a significant distribution of SHIBAK. So far this has resulted in a significant ~1.2% of the total supply of SHIBAK being sent to the dead address, or an average of 0.3% per month. This brings the total burn thus far to ~6% of our supply (includes manual and automatic burn).

In terms of token percentage burned per transaction, with a holding of ~6% the dead wallet is currently receiving 0.12% of every transaction.

As time passes and SHIBAK transactions continue, the dead wallet holding size will grow as distributions are received. As the holding size increases, the distribution (and therefore token burn) increases as well. Rather than a continuous 1% burn, the burn rate will progressively rise.

With available resources, and according to our discretion, the leadership may choose to accelerate our token’s deflation by sending additional SHIBAK tokens to the dead address.

Put another way, instead of a static and programmed 1% burn, we have a token burn by proxy (via distributions to the dead wallet). Consequently, the amount of tokens burned per transaction will increase over time, and for the duration of SHIBAK.

Accelerating DeFi & the Network Effect

There are multiple strategies for social tokens to gain new members and increase token utility and value. One of those is finding innovative ways to capitalize value based on social hierarchies. Another is to capitalize value through traditional means, such as transaction fees. Employing the former method requires more analysis by the team and will inevitably develop over time. In the immediate term, transaction fees on the network will add revenue to the community and accelerate our programmatic development — for a net positive contribution to the community. The basic strategy for Shibaken DeFi is to incentivize activity on the network through value-added services, redistributing transaction fees to community members, and contributing to our community development fund.

During the third quarter of 2021, we have been developing a compelling use case to add value to the SHIBAK token. As we introduce our plans in the coming days, you will understand how our implementation strategy will add value to the network. The net effect will be an acceleration of token supply deflation; incentivizing hodlers to save their tokens and receive passive income through token redistributions.

The concept is simple. Transaction fees (buy/sell, or interaction with one of our products) trigger token burns. Token burns reduce our token supply; resulting in higher token values over time. Incentivizing transactions on the network equals greater distribution rewards (passive income).

Beyond these basic principles, we are committed to the network’s long-term growth. To accelerate the adoption of our network, we will provide the necessary support through additional products and services that support our mission. Some of our goals will be reached through partnerships with third parties who share our values and interests — like profit-sharing, investing in cultural development for social benefit, or to simply have fun.

Q3 & Q4 Project Line-up

The first stage of applications that make up the critical mass of our ecosystem are as follows:

1. Cross-chain Bridge (completed; Q3)
2. Cross-chain Yield farms (in progress; Q4)
3. SHERPA token and swap platform (Q4)

We expect to have full completion by the end of Q4.

Today’s update covers the bridge, yield farm and SHERPA token. We plan to use this foundation to fund subsequent stages of development. The first of these is expected to be a sustainability project with real-world community partners — establishing our first token economy use-case. We will follow-up with more details in subsequent updates.

Shibaken Bridge

The Shibaken Cross-chain Bridge was successfully rolled out at the end of July. This was followed immediately by the provision of US$30K worth of liquidity each on Polygon and BSC which has been locked in smart contracts.

The bridge is the first instance of an application which aims to incentivize transactions. Each transit across the bridge triggers two transactions, one on the sending blockchain and one on the receiving blockchain. Our community has shown steady growth in holder counts across all chains.

The Bridge is an essential component of our ecosystem. And when our bridge was deployed on June 25, it cemented Shibaken as the first Inu token to exist across three blockchains. Exposure to other chains lowers risk for the community; enabling the flexibility to select an optimal chain depending on applications developed in the future. Collaborations and partnerships on BSC and Polygon, including available dApps on these chains, add to the rationale of cross-chain superiority. As you can see in the following illustration, future expansion of services and applications across multiple chains will continue to strengthen us. All told, we believe building cross-chain is a force multiplier for the community.

Shibaken Finance

Yield Farms

This brings us on to phase two of our development plan. Just as we have a Cross-chain Bridge, the Shibaken ecosystem will include at least one yield farm — hosted on our website; fully audited prior to deployment.

Farming is an important part of maintaining strong liquidity pools for the health of the ecosystem — as well as for enabling steady distribution of our new reward token.

Annual Percentage Yield (APY)

We will determine the exact APY (annual percentage yield) for our farmed tokens at a future date — once an independent assessment is complete. Since we aren’t a security, nor do we claim to be, our aim is provide value through applied utility for all of our members while protecting the integrity of our supply and demand curve of our tokens for a long period of time. We want to ensure the health of our network and build proper incentivization structures for SHIBAK stakers and liquidity providers.

Our Reward Token: SHERPA

In exchange for staking SHIBAK, members will receive our reward token — SHERPA. As a benefit token, SHERPA will have three main functions. The first is to function as a rebalancer token; pegged to a basket of ethically based crypto assets. The second is as a convertible instrument, acting as a main supplier of ‘fuel’ for our future trading network. And third, after an initial offering to SHIBAK holders, SHERPA will consolidate low MCAP assets in the meme-space through a token exchange.

The rationale for SHERPA and a swap platform

The swap platform will enable members of abandoned, failed, “dead”, and underperforming projects to convert their token holdings into SHERPA; thereby offering another chance to find positive utility for their token’s stored energy.

This element accomplishes five goals for existing SHIBAK holders:

1. Accelerate the deflationary aspects of SHIBAK
2. Welcome new members to the Shibaken community.
3. Validate our social and economic values of sustainability; benefiting ourselves and others.
4. Accomplish a roadmap milestone.
5. Enable the development of a token ecosystem via the creation of new revenue streams.

It provides value in three ways for new SHERPA holders:

1. Relieve the pressure to sell an undervalued or worthless asset at a loss by offering a token swap to SHERPA.
2. Regain the ability to make a return on an otherwise failed project.
3. Gain access to our future token ecosystem.

It accomplishes three goals for all DAO community members:

1. Provides a new revenue stream for development and marketing.
2. Increases market exposure to the DAO.
3. Incentivizes SHERPA holders to hold DAO tokens and participate in voting.

One of the simplest ways to achieve these goals is by including a tax on every buy/sell transaction. Although the exact parameters of our transactional tax are yet to be finalized, here are the current proposed features:

• 5% Auto-distributions (reflections) paid in ETH or BNB
• 4% SHIBAK Buy & Burn
• 4% Development & Marketing Fund
• 1% Bonus Airdrop: One random buyer in every 24 hour period will be sent 1% of the total SHERPA transacted per day
• 1% Top Buyer: The largest buyer in a 6 hour period will be sent 1% of the total SHERPA transacted per day.

Each tax feature on SHERPA serves a purpose. Firstly, we reward our members via auto-distributions and accelerating the deflationary aspect of SHIBAK. Secondly, we make trading the token more enjoyable by including bonus token airdrops for active traders. Finally, the tax for development & marketing secures a revenue stream to help us grow the Shibaken ecosystem.

We appreciate that a 15% tax on transaction is somewhat hefty, but this figure has been chosen as it provides a suitable balance between encouraging trading and providing a barrier to selling.

While we would of course prefer recipients of SHERPA to remain engaged with our community and try to gain financial benefit from holding and trading the token, we are well aware that this will not be the case for everyone. Some people will prefer to swap their microcap tokens to SHERPA and sell all at once. Although we will aim to disincentivize selling of SHERPA through a few different methods, ultimately, if a person is intent on selling, at least the ecosystem as a whole will benefit from the tax which they will trigger. For this reason, we are less concerned about the SHERPA token price but rather, the transactional volume. If our volume is high, so are the burns, auto-distributions and bonus airdrops.

One thing which can kill volume is gas fees. In the past six months we have already witnessed a number of promising auto-distributing projects grind to a halt purely because the expensive gas fees on the Ethereum network made trading less desirable. As tokens which incorporate a tax are inherently gas-heavy, we are considering all of our options when it comes to releasing SHERPA. This may include adjustments to the tax structure, or ideally, moving to an Ethereum Layer 2 solution such as Optimistic roll ups (eg. Arbitrum). We will continue to liaise with our developers here on the best course of action. We do of course have BSC and Polygon chains available to us, with the former being more suitable to the Swap and SHERPA due to the relatively large number of microcaps which go live on there.

A common query that is raised when a project creates a new token is around what will happen to the existing token (in our case SHIBAK). In our ecosystem, due to its unique tokenomic profile, SHIBAK will remain as the core utility token of the Shibaken ecosystem, being used in our Bridge, Yield Farms and future applications too. It is also likely to be required to participate in the DAO which governs which projects are approved for a swap to SHERPA and at what ratio. We will continually aim to incorporate SHIBAK in some way or form into the token flow of our applications (as we plan to do with the inclusion of a SHIBAK burn on SHERPA transactions). Therefore, we intend SHIBAK and SHERPA to complement — rather than compete — with each other.

All Systems Go

With the completion of the yield farm, SHERPA token, and the swap platform our system’s critical mass will be complete. All that remains is — how to employ this engine to propel us into the future of sustainable community development. Our token ecosystem is what brings it all together.

Visit our Telegram community t.me/shibakens and subscribe to our Medium channel for further updates on our token ecosystem. Our plans for local token economies are gradually taking shape and our next update in early Q4 will center on these developments.

Conclusion

With the bridge established, and the yield farm underway, our new token ecosystem solidifies SHIBAK as the primary market entry point for conscientious individuals seeking a project with a purpose. Our SHERPA token, with it’s convertible properties, will expand our reach into other markets and grow our network of token holders.

Thank you for your consideration and support these past 5 months. With a final quarter still left in 2021, we expect to make it our best one yet.

Source: https://shibakenfinance.medium.com/shibaken-finance-next-steps-a7e3ae298858?source=rss——cryptocurrency-5