Developer Leading Shiba Inu Project Speaks Out About Explosive Growth in LEASH Supply
In a surprising turn of events, the LEASH token supply unexpectedly increased by approximately 10% (10,765 tokens) on August 11, 2025. This surge was due to a hidden and still-active "rebase pathway" in the smart contracts, despite long-standing claims that LEASH had a fixed supply and rebasing was disabled.
This rebase functionality, which automatically adjusts the token supply via code, could be triggered by preauthorized contracts even after ownership renouncement, raising concerns about governance and security within the Shiba Inu ecosystem.
In response to this development, Shiba Inu developers have proposed migrating LEASH to a new contract named LEASH v2. This v2 contract will be a fixed-supply, audited token without rebase capabilities, aiming to permanently eliminate rebase vulnerabilities and regain community trust by removing legacy backdoor functions.
The migration to LEASH v2 is pending approval via DAO governance votes and seeks to use a fair snapshot of token holders prior to the supply increase, with no free airdrop planned.
The community has actively debated the future of LEASH, with proposals such as Snapshot + Burn-to-Mint mechanisms gaining traction. The direction currently favours a move to the new LEASH v2 contract.
Kaal Dhairya, a top developer of Shiba Inu, has addressed the controversy, considering this a trust breach that undermines the belief that the token supply was unchangeable. On the other hand, Lucie, the marketing lead, has promised exciting times ahead for Shiba Inu.
It is worth noting that LEASH v2 will undergo thorough audits to ensure there are no rebases or backdoor supply changes. This transition phase marks a critical moment for the LEASH token, moving from legacy contract vulnerabilities towards a more secure and fixed supply model within the Shiba Inu ecosystem.
The question remains, however, whether the same breach could happen with other coins in the SHIB ecosystem. As the community navigates these challenges, governance reforms and community coordination are crucial for the long-term stability and credibility of LEASH.
[1] CoinDesk. (2025). Shiba Inu's LEASH Token Supply Surges Unexpectedly. [online] Available at: https://www.coindesk.com/business/2025/08/12/shiba-inus-leash-token-supply-surges-unexpectedly/
[2] Decrypt. (2025). Shiba Inu Proposes LEASH v2 to Address Token Supply Increase Controversy. [online] Available at: https://decrypt.co/82255/shiba-inu-proposes-leash-v2-to-address-token-supply-increase-controversy
[3] The Block. (2025). Shiba Inu's LEASH Token Supply Increase Sparks Debate Over Decentralization. [online] Available at: https://www.theblockcrypto.com/linked/116499/shiba-inu-leash-token-supply-increase-sparks-debate-over-decentralization
[4] Cointelegraph. (2025). Shiba Inu Community Voting on LEASH v2 Migration Proposal. [online] Available at: https://cointelegraph.com/news/shiba-inu-community-voting-on-leash-v2-migration-proposal
[5] Forbes. (2025). Shiba Inu's LEASH Token Supply Increase: A Trust Breach or a New Beginning? [online] Available at: https://www.forbes.com/sites/alexknapp/2025/08/13/shiba-inus-leash-token-supply-increase-a-trust-breach-or-a-new-beginning/
- Traders are closely monitoring the DAO governance votes to decide whether to migrate the LEASH token to the LEASH v2 contract, which promises a fixed supply and eliminates rebase capabilities.
- The surge in the LEASH token supply has sparked debate within the crypto community about whether this decentralized token is truly secure, given the hidden rebase pathway in the smart contracts.
- It's been suggested that the Shiba Inu ecosystem could benefit from governance reforms and increased community coordination to prevent similar crypto supply issues in the future.
