TLDR
- Shiba Inu’s LEASH token supply increased by 10% on August 11, 2025.
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The Shiba Inu developer explained that the LEASH smart contract had a hidden rebase function.
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The Shiba Inu community is concerned about potential centralization due to the change.
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The LEASH DAO may vote on a new token contract to avoid further supply changes.
Shiba Inu’s community is currently debating a surprise increase in the LEASH token supply. On August 11, 2025, the total supply of LEASH tokens rose by 10%, sparking concerns over possible centralization within the Shiba Inu ecosystem. Kaal Dhairya, a leading developer of Shiba Inu, addressed these concerns, shedding light on the unexpected development.
The increase in LEASH’s supply is significant because the community had long believed the token’s supply was fixed. Many were also reassured by previous claims from the Shiba Inu team that rebasing had been disabled. Rebasing refers to the automatic adjustment of a token’s supply, which can affect holders’ balances. This feature was expected to be disabled, but the recent changes have raised questions about the level of control developers still have over the supply.
Shiba Inu LEASH Supply Increase Explained
Kaal Dhairya, a top developer for Shiba Inu, took to X (formerly Twitter) to explain the situation. He revealed that the increase in LEASH’s supply was the result of a hidden rebase pathway that remained active in the smart contracts.
According to Dhairya, this rebase functionality was linked to pre-existing contracts that allowed for changes to the supply without requiring intervention from the project’s owners.
— Kaal (@kaaldhairya) August 12, 2025
While this discovery caused some community members to feel misled, Dhairya emphasized that this issue had occurred due to the oversight of previously authorized smart contracts. He stressed that the community had long been under the impression that LEASH had a fixed supply, making this supply change a breach of trust for some investors. Dhairya further pointed out that these changes could dilute the value of LEASH, which could impact existing holders’ investments.
DAO Proposal and Potential for LEASH v2 Contract
In response to the controversy, Dhairya proposed that the Shiba Inu community vote through the decentralized autonomous organization (DAO) to determine the next steps.
The community will vote on whether to negotiate with the original developers to fix the issue or if it should move forward with creating a new version of the token, known as LEASH v2. Dhairya assured that any new contract would undergo an audit to guarantee that no hidden rebasing features would be present.
The proposal has been met with mixed reactions. Some members of the Shiba Inu community are eager for the DAO to address the issue quickly, while others are concerned about whether such breaches could happen with other tokens in the ecosystem. As a result, the issue has sparked ongoing discussions about the security and transparency of the project’s governance structure.
Shiba Inu’s Ecosystem Growth and Future Plans
The controversy surrounding LEASH’s supply increase comes at a time when Shiba Inu is seeing increased attention in the broader cryptocurrency market.
According to Lucie, Shiba Inu’s marketing lead, the upcoming altcoin season could help boost the prices of related tokens, including SHIB, BONE, and TREAT. Lucie emphasized that the growth of these tokens is interconnected, and a rally in one token could potentially boost the others.
However, despite the broader market conditions, Shiba Inu’s price has remained relatively stagnant in recent months. As the community continues to work through the current issues with LEASH, attention is also focused on ensuring the ecosystem remains strong and transparent for the future. The proposed LEASH v2 contract could be a pivotal move toward regaining the trust of the community and ensuring long-term stability.
