Shiba Inu Launches LEASH v2 Migration to Fix 10% Supply Spike

Shiba Inu developers have launched a strategic migration plan to transition LEASH v1 holders to LEASH v2, aiming to address a 10% unexpected increase in token supply caused by smart contract rebase issues. The migration strategy, unveiled by lead developer Kaal Dhairya, seeks to stabilize the token supply and restore community confidence through a DAO-led governance model [1]. The core of the plan is a “holder-equivalence” conversion model, which ensures that long-term holders receive a proportional amount of LEASH v2 based on their current holdings, while those who have sold portions of their tokens will see reduced allocations. Dhairya stated, “Held = whole. Sold = reduced. Sold out = zero (unless you rebuy),” highlighting the fairness embedded in the design [1].

The migration introduces a public ratio derived from the token’s intended supply versus its current supply post-rebase. This approach aims to correct imbalances in liquidity and supply, particularly in affected liquidity pools such as Uniswap V3 and ShibaSwap V2, where snapshots will be applied to prevent token locking and ensure accurate accounting [1]. These snapshots will be used “surgically where they’re the correct tool,” according to Dhairya, emphasizing the precision of the migration’s execution.

Governance of the migration is being transferred to the Shiba Inu community. Decisions such as the timing of migration cutoffs and the disposal of leftover tokens will be determined through community votes via the DAO, reinforcing the project’s commitment to decentralization and user control [1]. This shift from unilateral developer control to community-driven governance is a significant structural change in the Shiba Inu ecosystem.

A key challenge in the migration is securing support from centralized exchanges. While platforms like Crypto.com and Gate.io have shown support, others remain unengaged. To mitigate this, the Shiba Inu team is developing a self-service portal that allows users to migrate their tokens independently if their exchange does not support the transition [1]. This measure aims to maximize participation and ensure a smooth migration for all holders.

The technical design of LEASH v2 is built on an audited ERC-20 token structure, announced earlier in July, which includes “no mint” migrator functions and DAO-controlled operations. The new token emphasizes transparency, security, and compliance, aligning with the project’s broader goals of long-term stability and trust [2]. Analysts and industry observers are watching closely to see how the migration impacts related ecosystems and whether it sets a precedent for future token supply management.

The success of the migration will ultimately depend on active participation from token holders, liquidity providers, and exchanges. If executed effectively, the transition could serve as a model for addressing similar supply issues in decentralized finance (DeFi) and potentially restore stakeholder confidence in the Shiba Inu ecosystem [1].

Source: [1] Shiba Inu Developer Unveils New LEASH v2 Migration ... (https://news.shib.io/2025/08/22/shiba-inu-developer-unveils-new-leash-v2-migration-strategy/)

[2] Shiba Inu Reveals LEASH v2 Token Design (https://news.shib.io/2025/08/22/shiba-inu-reveals-leash-v2-token-design-simple-secure-auditable/)