In a significant advancement for blockchain technology, the Shiba Inu project team has successfully raised $12 million in funding. This impressive financial boost was backed by a consortium of high-profile venture funds, including Polygon Ventures, Animoca Brands, Morningstar Ventures, Woodstock Fund, DWF Labs, and others. The capital will be directed towards the development of a third-level network (L3), as reported by The Block, citing developer sources.
The funding round was facilitated through the sale of the TREAT token to venture investors. This asset, currently unlisted, will serve as the governance token for the forthcoming L3 network, which the Shiba Inu team is diligently crafting. TREAT is pivotal in the establishment of this next-gen blockchain aimed at enhancing privacy and built on top of Shibarium—a Layer 2 solution for Ethereum.
Shytoshi Kusama, the lead developer at Shiba Inu, has maintained confidentiality about the full list of investors. However, he noted that none of the investors are based in the USA. Kusama revealed that the team initiated the fundraising a few months back and completed it in early April. The investment rounds included both preliminary and initial rounds.
Kusama further stated that TREAT would be the last token minted in the ecosystem, with the minting process to be managed by The Shiba Inu Mint SA. He emphasized the importance of this final token, which plays a crucial role in the governance and operation of the L3 network.
The development team is employing homomorphic encryption technology from Zama, a company that recently raised $73 million, to enhance the security and privacy of the blockchain. "The new blockchain is aimed at addressing numerous issues in the crypto industry, including privacy and trust for the vast Shiba Inu community, which boasts tens of millions of users," project representatives stated.
According to Kusama, a test version of the L3 network is scheduled for launch in the third quarter of 2024. This version will meet regulatory standards, ensuring the safety and confidentiality of the community.
It’s worth noting that in August 2023, the Shiba Inu team launched the mainnet of Shibarium, a Layer 2 scaling solution for Ethereum. Within approximately a week, the number of active users on the blockchain exceeded 100,000, and by September, this figure had grown to 1 million.
This strategic development not only propels Shiba Inu forward in the blockchain space but also highlights the increasing importance of privacy and security in digital transactions and governance. The completion of this investment round marks a significant milestone for Shiba Inu and its community, paving the way for innovative blockchain solutions that could redefine the standards of crypto technology.
