Shiba Inu’s Decentralization Fate Lies in Whale Hands as Governance Vote Looms

Whales flex their muscles as Shiba Inu's community debates a pivotal shift to decentralization.

The meme coin's future hangs on a governance vote—where big holders call the shots. Will this be DeFi's democratic dream or another case of 'decentralized in name only'?

Funny how crypto's revolution still runs on old-money power structures—just with more laser-eyed dog memes.

Shiba Inu whale is likely to become president

While Kusama noted that the election process will be transparent and fair, he added that such a person should be a SHIB whale, noting that this would mean they have more incentive to ensure that the ecosystem succeeds as they stand to lose the most if it fails.

He wrote:

“It is my belief that not only should the candidate be well versed in our actual inception, creation, and challenges, but should be a whale in the Shib community…they have the most skin in our success.”

The chances of a whale winning are further reinforced by the recommendation that it should be a 1 token = 1 vote multivote system, where all ecosystem tokens can be used. This effectively means those who have the most tokens supporting them will win.

However, the role of President for the Shib Network State comes with many responsibilities according to the post. These include coordinating the transition of power and execution of Shib Paper vision and guidelines while establishing DAO councils and the first Shiba Inu congress.

Beyond these administrative responsibilities, Kusama noted that the President’s most important role is managing the community and the project and ensuring that it achieves the vision behind its creation. He acknowledged that it is a herculean task for anyone.

With Kusama now disclosing the next phase for Shiba Inu, the post noted that the role of the Shiba Inu team will also change. It will still be responsible for handling the election, but the direction of the Shiba Inu project will now become the responsibility of the decentralized community.

Can a new governance direction change SHIB’s fortune?

Meanwhile, the latest announcement, a few days after Shiba Inu clocks five years of existence, highlights how far the project has come from being a memecoin.

Over the period, it has become a multi-token ecosystem with TREAT and BONE joining SHIB while also launching several products, including the Shibarium Layer-2 network and Shiboshi non-fungible tokens, among others.

However, not all these updates and releases have impacted the Shiba Inu token value much. Since reaching its peak in 2021, the token has been in decline. This year alone, it has already lost around 44% of its value and fallen out of the top 20 cryptocurrencies by market cap.

Given its current performance, investors in the token will be hoping that the recent decentralization efforts could lead to more impactful community-led decisions that will boost the token value. Nevertheless, any significant increase in SHIB value would first require a massive burn of SHIB tokens, given its current supply of over 589 trillion tokens.

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