The Daily Gwei AMA Series #2 - 29th of May, 2021

Transcript

all right everyone uh thank you for coming welcome to this second ama uh the delegate ama uh we've got a lot more questions this time thank you to everyone who put their questions in the ama series channel if you do want to type out your question instead of asking it live here you can do so and i'll answer it um please make sure to to make sure you're on on mute so that there's no background noise uh you know as we're going through the ama here and just a note this will also be recorded and uploaded to youtube tomorrow if you want to kind of like uh look through it or if i guess people that have to go early or just aren't on the call they'll be able to kind of do it there but yeah uh the way i'm gonna run this one is i'm

gonna do one question from uh the ama series channel and then take like one live question as well and then just go back and forth like like that i think that that will work quite well there um kamathi i think you're you're mike i'm getting some background noise could you go on mute please uh yeah awesome awesome all right well the first question here came from uh got man in the um in the discord channel here where they said uh the one thing they keep thinking about is how crypto will translate to actual financial infrastructure for regular individuals um they were not about how they like to to to think about the potential future of where this technology is going uh and a few things come to mind like you know someone needs

to uh like using i guess like real world assets as collateral or using them within d5 and things like that but they ask you know if we are fully decentralized how how does this happen like you know you still need a government governing body in kind of like meat space or a government to kind of i guess have that charter or have that kind of legal document that says that you own that real world asset and things like that so my i guess like my my answer to that is i don't think that just because something's on a blockchain or an ethereum or whatever i don't think that means it has to be decentralized and we've seen this play out already right we've seen tons of kind of like centralized assets be that usdc or wbtc or there's a bunch of others out there uh

that are fully centralized they've got kind of um multi-sigs that kind of control them and everything like that for various reasons so from that perspective i think that it's fine i think that the the efficiency gains you you you bring by by having things on a blockchain is what is is the main value you draw here so say you want to tokenize your your house or the deed to your house for example and you want to use that as collateral within some sort of app on ethereum then by using it as cloud i mean we've already seen uh make a dow do this where they've got some real world assets um as collateral but by doing this uh the the blockchain is not the kind of i guess record of ownership uh what's the record of ownership still falls back to the legacy system or the old system where your

local government will basically have a record a legal record of your ownership there but you you're able to kind of like translate into i guess like crypto and and use that as collateral on there so i guess that's that's how i envision it happening and there are a few projects working on this i don't know the names of them off the top of my head i think uh i can't remember the name of that right now but there's one that that kind of worked to get uh real-world assets into maker uh which is pretty cool so yeah it's already definitely happening here and i guess on the broader point it's like where does this tech fit into i guess you could say like normal normal people's lives like outside of the crypto bubble i i mean i think i alluded to this and i wrote about this in one of the delegate

newsletters this week where i said that uh it'll just become kind of ubiquitous for people like they won't even know that they're using crypto or using kind of like ethereum you can imagine an entire payment system built on ethereum that people just use without knowing that they're using it and it's the same thing that happens with i guess visa and mastercard and things like that and paypal no one really cares about the infrastructure in the back end right like no one asks okay what data what database are you running uh you know what backend infrastructure you're running are you on aws or you're on google cloud like no one asks those questions so from that perspective the way people will be using crypto in their everyday lives is mostly that they just will have no idea that they're using it they'll just be using it and

and getting the the value out of it that you know we all we all know and love from it uh without having to kind of um you know learn about all that that sort of stuff and i think the same thing applies to the internet as well where uh you know there's tons going on in the background not even just the internet but computers in general like there's so much that has to go on in the background for you to be able to use like a graphical user interface for example uh you know windows itself is just like a bunch of of backend stuff with a nice interface put on it and most users have absolutely no idea how any of that works and they shouldn't have to at the end of the day but i mean in more i think about it it just applies to everything right like

most people don't know how their cars operate you don't know how your cell phone operates like there's all these kind of things that that go on there so i think taking that kind of view is how i how i envision kind of this technology going going kind of like mainstream so to speak and for those who want to dive deeper and actually kind of you know be in the weeds and be on these amas and things like that you you get access to the what we call alpha right where you get to basically have better opportunities than other people you get to access higher yields yeah it's probably more more risky but you get to be at the forefront and that's why i like to call the people that are in the ecosystem today pioneers and you know that's really what we are we're pioneers of a

kind of new infrastructure new kind of revolution here where uh we get to experience this and get the fruits of the labor here so hopefully that answers uh gottman's question here which was essentially like how is this technology gonna touch people's everyday lives um and you know i think just all the apps that we have today are just gonna be the apps that people use but they won't know that it's using kind of back end infrastructure here um so yeah that was the first question from the discord channel i'm happy to take a live question now for anyone who has one i have a question regarding the productivity of the ethereum because if you look at default pulse and the amount of each date you can see that about 80 of each is only being used for trading selling or being pulled to put to cold

storage and it seems that people are unaware that ethereum is a productive assets which you can generate deals with i think they're just speculating you don't have to sit on it like a dragon and do nothing with it and i have to i still have the feeling that people are being a dragon with it they're doing nothing with it and everybody's speculating in a bull or a bear market but it might take a boring sideways market before people start using it productively so do you think it'll take another boring sideways market before it will be finally used as a productive asset or even more as a productive asset less than it is right now that is being dragonized yeah yeah i mean it's it's kind of i mean it's kind of like a a big question because you got to look at like all the

the participants in in kind of like the market all the eighth holders you know what why they're holding each like a dragon for example like is it because they just don't want to take any additional risk at all they just want to keep it in kind of cold storage and they just want to hoard it and i think that is definitely a big use case for a lot of people but on on your note about like do people just not know about this and will it take like sideways markets for them to kind of know about it i actually think that it's bull markets when most people figure this out because there's incentives to do so like if you think about d5 summer last year you could always do defy stuff and and lots of people were doing it but then you know tons and tons of

people like i would say like maybe even hundreds of thousands of people came into the ecosystem because of these incentives because obviously the compound liquidity mining kind of launched and then uh yearn finance and all the all the wi-fi stuff and things like that and you know people had a reason to come into the ecosystem and had a motivation and incentive to do so so i actually think that we get the most adoption from these kind of bullish markets i would say if i got correctly d5 summer was during a time that it was pretty stagnant i think it hovered around 300 400 around that mark around that range yeah yeah it definitely it trended up with day five because more people were were accessing eth to use it whether that's to pay fees or to use it as like collateral or things like that um

so so maybe i mean maybe to your point maybe it takes like going quiet for a bit and then you know someone releases something that spurs and other bull markets like compounded thank you awesome awesome all right on to the next question from the discord channel here uh so this was actually a bunch of questions about uh polygon l2s you know what the l2 landscape looks like so i thought this will probably take me a little bit to answer but i think this will cover a lot of people's questions so the first question was from andreas here who said if polygon builds a robust ecosystem do users or the apps themselves have any incentive to move to a roll-up or is it just advantageous for new creations to use them and the second question here is does the centralized side chain always

maintain usefulness even in a optimistic zk future this is uh you know an open question right now among a lot of people and and my general view is that there's not just going to be like one size fits all there's not just going to be one winner it's going to be a bunch of different kind of solutions out there vying for you know onboarding the apps at the end of the day because the apps are drawing the users and i think the solutions that do these best will be the will be the winners here and i've also said before and i've spoken about this a bit on the refuel i think that developers have a lot of power in this ecosystem because the users are following the developers and following the apps then you know the users don't go to say an an l2 chain and just sit there with no

apps on it right they they go there because there's apps and there's something for them to do there you know you know we don't drive out to like the desert and just sit there waiting for something to happen right if there's like a festival in the desert we go there to the festivals um just as an analogy there so i think that uh that's kind of what's happened with the with polygon the pos chain right like obviously that is not an uh like an l2 like a roll up or something like that that we that we've come to know uh you know and love it with arbitrary and optimism and stuff like that uh but i think that uh the polygon pos chain has filled a really great role and will continue to feel a very great role in offering kind of this ethereum like experience experience with

just some trade-offs and and the trade-offs that you make obviously you know it's it's less decentralized it's it's less secure because of that and you know you're basically relying on a multi-sig right now if you bridge a quart bridge across because the bridge is a five of eight multi-sig so there's definite trade-offs uh trade-offs there now do i think that as soon as arbitram you know and opt and optimism and whatever and all these other solutions go live will all the apps and users just port over no i think there's going to be a world where people are using you know different um apps or like the same apps on different solutions so you're going to have like an arbitrary rv a polygon rv and ethereum rv and you're already seeing this play out where polygon has a really big rv market i think it's 8 billion

locked in there but ethereum also has a really big rv market as well and i think they service two different types of users because ethereum at least until the last few days um was obviously like very expensive with the higher gas space hovering around 100 way and now we're down a lot here but uh you know and that prices out a lot of users so what ends up happening is those users will migrate to polygon and enjoy the low fee environment but the whales and and and the users who don't really care about the fees and aren't fee sensitive they'll stay on ethereum so and you know because they either want the more security of ethereum or they're just happy staying on ethereum they have no kind of incentive or motivation to move across so as i said there's going to be multiple solutions that appeal to

multiple you know different kind of um stakeholder groups uh user groups and there's going to be i think like you know an rv on every chain there's going to be like a a kind of like curve on every every chain or every kind of like l2 um you know and all the other popular apps like uni swap i mean you would have seen during the week that uni swap um i guess sorry someone from the community said that unisop should be on arbitram you know gathered some some votes together and actually put a proposal through to do this and then hayden adams even from from from the uni support team said yeah okay if the community wants this we'll support that and you know unitop has been married to optimism for quite a while now and people thought that they would be optimism maximalist they

wouldn't even you know dare think about going to arbitrary or some other l2 solution but i think you know the unisop team is smart enough that to know that you know being kind of like just you know hitching your kind of i guess um uh product to kind of one horse is not the best kind of play right now and i think that they're smart enough to realize that uh you know doing the pragmatic approach of being on like every scalability solution is the way forward and then long term what will end up happening is that the best solutions out there the ones that users enjoy kind of using the most with the least friction the most integrations you know the most centralized exchange bridges in and out i think that's when we'll start seeing winners but it's going to take a while there's going to be like at least

at least a couple of years of of just like this rapid experimentation across all these different things but it's probably going to be more than a a couple of years because you know crypto moves fast but at the same time it moves slow when it comes to bleeding edge stuff for security reasons so uh yeah that's kind of like i guess my view on the on the multi kind of scaling kind of solutions here um sorry sodium star uh could you please go on mutants to the background noise here like is he on i think yeah i think they've gone on on mute there um yeah so that's that's my kind of view on the on the call oh sodium sorry could you please go on mute there's a little bit of background don't noise they can hear me

i'll mute them it's all good um cool uh yeah so there was a bunch of follow-up questions around that as well um about like i guess it was the same kind of like questions and there was a follow-up question from crypto spanglish who said you know matic has had a massive kind of run the token the token price uh and so with like all these optimistic roll-ups or like zk roll-ups launching soon can the you know uh matic sustain its run can polygon sustain its kind of um you know tvl growth and its usage and all these sorts of things um and will projects just move across or be or be loyal and things like that and i think you know what i just said answers most of that i don't really have any opinions on the tokens uh like there's another question later on i think

about like how does uh maddie kind of accrue value and i will i think i'll answer that in a sec i'm just reading through the questions here but yeah i think you know my answer to crypto spanglish here is the same as i just gave is where i think that it's just going to be like a bunch of rapid experimentation going on there's going to be a lot of different things going on on these l2s and all these different scaling solutions and it's just going to be who can offer the best experience with the best apps for users at the end of the day um and then on that note there was another follow-up question about polygon from bajiggibu here um when and what happens when polygon builds their own actual l2s well i mean it's the same kind of thing they just enter the arena they enter

kind of like the competition the battle for different l2s and kind of like different users and things like that and you know i actually think that uh you know if they wanted to the polygon pos chain could actually be changed into an l2 uh something like an optimistic or a zk roll up and still retain you know the evm compatibility and all the apps and users on there i'm not sure technically how you would do this i'm not sure how hard it is but i don't think that should actually be impossible so that i'm actually looking forward to that myself and i should actually state here that i'm an advisor to polygon so um but these were you know i know there's a lot of questions about this right now because polygon got so much attention lately and so much usage people were like well

you know polygon is not like a quote unquote true l2 that that people refer to in the ecosystem what happens when these go live so i hope that that kind of like answers that and then the final follow-up question about this was from digital henry who said uh the polygon team is hinted on a part on a podcast they would be okay with using eth for gas fees on the polygon network if that's the case what would be the purpose of investing in thematic token if besides for staking and securing the network so the matic token itself and again this is an investment advice or anything like that but the medic token itself currently serves two functions you know it's a fee token and it is a staking token now the fees on medic are basically negligible so i would say that the the value being kind of like accrued to

matic from fees is basically non-existent i wouldn't say that um that's driving any kind of value to the matic token um and i do think that having eighth as the the gas token on the on the matic now or the polygon pos kind of network here would be beneficial for a number of reasons and you know it's not it's not to accrue more value to eight value to eight because it probably wouldn't because again the fees would be would be negligible here it's just to keep kind of coherence between kind of ecosystems because you know i've had multiple people kind of like say oh it's really annoying when i go across to matic that i have to yeah you know they give you a little bit of tokens to start but i have to kind of like buy more tok biomatic instead of just being able to

bring my ether across to pay for fees and that's kind of like what the coherence is there in terms of like uh being able to just bridge across really easily so i think just having eight for gas fees is a no-brainer and you know arbor trim already announced that they're going to be using eth for gas fees um and you know the other function of the medic token is staking so you stake to earn uh i guess like inflationary rewards right now uh and then you know if the fair revenue gets large enough you earn kind of like portions of the fees which would actually put a dent into that i'm not sure you know what the plans are for future value accrual mechanisms but the way i view these sorts of things is that generally like you can just accrue value like much later you don't have to do it from

kind of like the beginning here and you can even look at something like eighth as an example eth the token itself besides kind of like you know we we had staking go live in december and each user's collateral um has been happening for a while but besides that you know eth didn't really accrue value from from the the value generated on the network now with one five five nine it will and this is coming you know many years after the ethereum network launched so from that perspective i think just i guess a general note on tokens is that a lot of them will remain you know your your favorite valueless governance tokens for quite a while or like you know they might may not seem like they have very good value accrual mechanics but that doesn't mean that they never will it's not like it's bitcoin where

you know things don't change uh things definitely do change and people will speculate on things for a number of reasons and you know there's also the specular speculative value attached to any token as well where you know if you do like a classic kind of price to sales or price to earnings kind of uh thing on a lot of tokens especially a lot of the layer one tokens out there you'll find that a lot of them uh do not trade anywhere near kind of like i guess you could say fundamental value but that's what it is in crypto it's all it's all very speculative so i hope that answers some questions around around polygon um but yeah i'll take a question from the call now and feel free to follow up with polygon questions if you have any as well if there's no questions from the call i

can move on to the questions from the uh the channel there i have one questions yeah yeah go for it um okay so uh i wanted to ask you about a few different topics maybe i can only ask one like i'm not sure how uh this is uh scheduled but uh i wanted to ask you about the new form you mentioned on many occasions that you do your farm so i wanted to ask you like uh uh do you do it on on like uh on l1 on ethereum or do you also do it on automatic and what is like a

good strategy to start from somewhere and also uh uh on another note like uh uh a lot of times it was mentioned that if you want to yield far more material like you need a huge amount of money otherwise it won't make any sense yeah i mean that's that's correct with with ethereum even at the lower gas fees maybe these days uh it still might be too too high for some people uh but definitely when the gas fees are higher like 100 way or something like that uh it's it's probably too expensive because what you end up happening is you end up paying more in fees than you would have generated in yield for a very long time so it makes it not worth it for you uh

so the approach i take is i i do a little bit of a little bit of kind of like everything i do kind of test out different things um but in terms of like what i'm yield farming these days i tend to just uh do kind of stable coin yield farming where uh you know it and it depends on your risk appetite too so for me i have like a higher risk tolerance i think than then you know a lot of people do i obviously understand you know all the risks associated with these sorts of things and i make sure that i'm managing my positions correctly but you know what a lot of people do is they'll lend uh or they'll put up their kind of like eth or some other asset as collateral on a money market such as you know rv or compound or they'll put it in maker or

something like that they'll kind of borrow stable coins against it so whether that be usdc or dye or some other stable coin and then they'll go deposit those stable coins into some yield farm normally you can go to the the urine vaults which actually do it all for you where they'll give you kind of like a vault where you put in usdc and then they'll manage it all for you so once you've put it in there their back end kind of does all the yield farming and they they kind of like seek out the best yield for you that's that's kind of like the draw of the of the urine vaults here so that's one way a lot of people do it but if you already have stable coins and you know you don't want to you know don't want to borrow stable coins because obviously that comes with

the risk of of getting liquidated and and you have to actually pay um to borrow stable coins as well so that eats into the yield that you'll be able to generate you can just take your stable coins and i think the easiest for newer people is just to go to uh yearn vaults so why earn uh vaults you can google it it'll come up i think the websites yearn.vaults or something like that or you're in.finance um and you can go there and basically uh it will show you like the available options for different stable coins and and even different other assets too it's not just stable coins so that's kind of like i guess one one kind of yield fund there and those are probably i would say like the the easiest and the quote-unquote safest um in terms of the fact that you know especially if you're just

putting stable coins in without borrowing them you don't have any risk of liquidation or anything like that you you know you don't have to kind of manage your position you don't have to kind of pay these uh these kind of like uh i guess like borrow um so you have to don't have to pay to borrow the kind of assets from these money markets and stuff like that uh but then on the kind of like riskier side of things you can do a lot more if it if you're happy with taking on the risk you can do a lot more um and you can generate a lot more yield so for example there are incentivized pools on kind of uni swap or sushi swap where you can put uh you can provide liquidity to them with two different assets um in a 50 50 split or even on balancer

i mean you know there's ways to do it on there too but just for simplicity you would put up like fifty percent of eighth and fifty percent of um you know what i'm doing right now is i'm i'm farming the eighth alcx pool so i put up 50 8 50 alcx tokens and i'm providing liquidity and i'm getting paid in alcx tokens for that so i'm i'm essentially yield farming that but the reason why it's riskier is because you have the um what's called impermanent loss risk where depending on the way the market moves you could end up worse off than when you started providing liquidity as in you could have you could end up with less money from your principal than you started with and that's just a risk you take now if it nets out to being profitable because

you earned more in token rewards then you lost in a permanent loss then it's it's probably worth it but as i said it's much riskier because it's just you don't know which way the market's going to go so you are taking more of a calculated kind of kind of risk here rather than you know just just kind of like doing stable coin uh yield funding which doesn't carry that lot in permanent loss risk uh if you're just doing kind of like a urine vault or something whereas you know you can do stable coins in uni swap or even sushi swap for example but you're again taking on this this impermanent loss risk there so yeah it's it's definitely a um a wide field here there's a lot you can do a lot of different things you can do and i would suggest reading some of the

guides that bankless puts out they they definitely have some of the best guides out there for yield farming so i'm sure you can google bankless yield farming there's a guide called getting started with bankless that has a bunch of resources too if you haven't seen that yet um because yeah it definitely goes deep and as i said it depends on how much risk you want to take on um and you know kind of like i guess like how much money you have too if you if you're you know you're timing with lots of money then maybe you can afford the ethereum fees if not you can go to um the you know the matic network or the polygon network as it's known you know bridge over your assets there and it's basically the fees are basically negligible there but there's less opportunities than there are on ethereum um so yeah

hopefully that answers answers your question there yeah yeah of course it was a great explanation basically i i haven't tried the borrowing uh side of of things yet so it's kind of an explored territory i i was afraid of the liquidations and that kind of stuff but regarding the the sushi i have tried actually doing that out some small amounts and my reasoning about the permanent losses like if you're like if you're comfortable with holding the both assets like long-term then you don't care a lot maybe missing something there maybe it's a stupid reason

but i i guess i i thought that was the right way to to think of it yeah i mean it can be it depends it definitely depends on the assets and like how far they move as well because and it depends if you take out your liquidity position or like remove liquidity before it goes back to where or it goes like near where you first provided liquidity so um yeah impermanent loss definitely i think trips a lot of people up because they just don't understand how it works um you know in detail there's a few tools out there that will help you with this apy.vision is one tool that i use uh they're really good at calculating kind of um gains here uh so gains and losses on these positions but yeah you're right if you're you're providing liquidity for like you

know a and etho um slash another token pair and you don't mind holding either asset over the long term then yeah it could it could work out but definitely there's still a risk of being net down in dollar terms um you know and and even in like eighth terms if you're trying to stack eighth or like the other token it's just depends on when you get in when you pull liquidity um and you know where the prices were at those points in time awesome all right uh another question from the discord so basically java lasers uh asked what apps do you use or recommend for tracking uh for taxes so the way i do mine i'm a bit old school here i use

like google sheets uh and the reason why is because i don't because a lot of the tax tracking apps uh lag a lot of the time and they do not have um you know because i do a lot of different things within default i'm basically a power user uh they do not have what i've been doing for like and for a while like a lot of the things they don't add in time the features are often lagging like by by a lot and i like having more control over everything and also because there are always like edge cases uh you know that i've had to deal with so many edge cases with you know how is this going to be taxed like and you know if it's taxed this way then can i argue it another way and i'm in australia so i'm definitely going to be

different to to everyone else that's you know outside of australia so for me i don't really use anything i just use a google sheet and i track all my transactions on there and what i'm doing on chain and and kind of like profits and losses and things like that uh and like income and yield and whatever but there are a bunch of tools out there right now off the top of my head there's like turbo tax i think which is pretty popular um you know something crypto tax or something like that or tax tools there's there's a lot of them now and i guess another reason why i don't trust those those tools uh um as well is because i some of them i don't know if they do this but i don't trust them not to kind of like you know give me that give my data to

someone that i don't want having my data like my entire kind of like financial you know life yes it's available on chain but unless someone knows my you know address on chain they don't know they can't tie it back to me but if they have like i guess like details depending on what the tool is if they have some kind of like personal identify identifiable information on there then they could somehow identify me and tie my addresses to me and maybe they want to pass that on to some parties that i don't want having that information um not not the tax office but maybe some other parties for for marketing or advertising or something like that so maybe i'm being paranoid maybe they they don't do that but you know from from i think you know over the last few years on the internet uh being on

the internet i think we've all wised up to the fact that a lot of these companies no matter who they are love to harvest our data and sell it uh for advertising purposes so for me i don't tend to use any of those tools and in saying that obviously google sheets you know that the data is still going to google there um but you know i i like i i guess like i'm fine with that uh given that i think you know the tax tools are definitely more targeted google sheets is not targeted at all like people use google sheets for everything um and you know maybe it's even better if you're super paranoid to just use like a local kind of copy of excel or something like that but yeah that's kind of how i play it but if anyone else has any tools that

they use and you know feel free to speak up and kind of like uh you know give your opinion on them all right all good i'll move on to the next question from sodium star in the discord channel here so hey uh they ask as far as i understand amm based dexers rely on oracles uh so the actual price uh determination happens on centralized platforms so i will start off by saying amms do not rely on oracle so the way the amms keep their pricing check is through basically arbitrage so essentially if prices of the different kind of assets get out of whack on an amm

uh or like i guess like go kind of like from the market price there'll be bots that essentially arbitrage between all the different decentralized exchanges and all the different centralized exchanges to bring the prices back in line here uh and i that's why i think you see a lot of the kind of activity on the network especially like uni swap accounts for i think 25 35 of the activity on the ethereum network a lot of that's got to do with these kind of arbitrage transactions where uh different kind of like bots and traders will and even mev extractors will basically arbitrage and front run and try to like i guess uh make profit from doing these transactions to make sure that the price is kept in check here so yeah just just that note there that the breakthrough of amms is that they do not

rely on any type of oracle here which i think is really powerful it just relies on on you know a robust set of arbitrage bots which the ethereum ecosystem has today and it's not hard to have these things they're very easy to to set up there's the generic ones that you can do the best ones obviously are custom made and people don't just release them to the wild but in general uh you know there's there's tons of bots that do that um and then i just wanted to kind of like clarify that that for you there uh and then they go on to say uh you know uh is this uh that most of the questions were about like they uh with the based on the assumption that amms have relied on oracle cr um but then they talked about like uh auto book exchanges as well

so it's like the same kind of thing here i think it depends on what you look at too because with order book exchanges there are some of them that are synthetic kind of order book exchanges so you can kind of look at the synthetics platform for for example um you know or like quinta or like other things being built on there like synthetic uh products definitely rely on oracles because at the end of the day you need to kind of be able to track the price of the underlying asset and no one's going to do arbitrage because it's a synthetic asset so when uh you're looking at something like uh i guess like uh margin exchange or like perpetual products a lot of them usually kind of uh are synthetic products where essentially you're just trading like a price ticker and even things like

within the synthetics ecosystem you have uh a lot of like uh i guess like stocks like s tesla and things like that that is just um using an arc or a price oracle at the end of the day to track the price and uh and then the way it's kind of like kept in check is by that oracle and the oracle you know can be something like chain link that gets its price feed from multiple places out there uh you know chain link depends on the asset but they have like you know multiple kind of price fees they get it from whether that be like the stock market itself uh then you know the the uh the not maybe the nasdaq for tesla but like other other other stuff like that out there so that's kind of like how it works there and i think there's another question

here from sodium star about this was yeah i mean about about the real world assets and the synthetic assets for stocks and things like that um and like oracle's introduces i think uh let me have a look here how can i think they were asking like how can we bring these real world kind of assets in without them being synthetic assets i mean i don't know i don't know if we uh we would see this is a bit of a bit of a tricky thing because this goes back to what i was saying before about how these real world assets aren't native to the blockchain right they're not crypto native they're not bearer assets they still have a uh kind of i guess legal claim in the real world or in the kind of non-blockchain world where your claim to your stock or your claim

to your house or who claims your car still exists in the legal system whereas for example your claim to your eth doesn't exist in the legal system there is no kind of um uh i guess like institution or anything saying well you know this eighth belongs to this person and if this person's eighth gets stolen well that's not actually you know that that it didn't actually get stolen because you didn't steal the piece of paper saying that it was your eighth well that's not how it works because eighth and a lot of other tokens are better assets so if i if my eighth gets stolen well then it's not my eighth anymore because the the the blockchain is the the the kind of like source of truth here the blockchain is what records the the ownership here so once you know if my youth gets stolen that

person now has my eight i don't have it there's no legal recourse here or anything like that whereas with these real world assets there is always kind of recourse because they're just not digitally native and i don't think they can ever change because a house is never going to be digitally native unless it's like a virtual house in like a virtual game then fine but like a you know a house in the real world is not going to be digitally uh native so we always have to have that kind of layer in between where you have uh the claim in the real world and then you have a tokenized representation of that kind of claim on chain and then you know it kind of like works the same way as a lot of the centralized assets like stable coins for example you know there's it's already it's already

happened i think in the past where uh tether can basically revoke um ownership of of of usdt and like issue new usdt uh you know based on uh like i mean the number of factors usually kind of regulatory stuff here uh and you know they can do that because the token's just a representation of dollars in a bank account whether you believe to there's actually backed by dollars in the bank account that's another story there uh and same with usdc so if they wanted to they can freeze the c tokens but the thing is the underlying usd that's sitting in the bank account is still there that is the kind of um you know i guess like ownership claim the actual usd not the i guess the the iou essentially um that you have on on the kind of

exchange here it's the same as like a bank for example i mean if you put your dollars into a bank account technically the bank owns your your money now right like technically the bank or the government could take those dollars away from you and they do i mean for criminals they seize assets all the time um but you know if you have your assets on ethereum digitally native you know unless someone knows like the pin to your ledger or something like that or your seed phrase they can't actually access your your eth they would have to basically get that out of you so you know from that perspective it's it's the property rights are much stronger there as well but it only works for digitally native things so i think maybe that's a roundabout way of answering the question of like how do we get these kind of like

real world assets into d5 natively i just don't think it can happen unless they issued on the network you know as digitally native assets first and have no real world ties but i don't think we're we're going to get there for quite a while and i don't think we can get there for for a lot of the physical kind of things in the real world for obvious reasons i think um and on that note yeah feel free anyone who wants to ask a live question or else i'll move on to the next one from the discord channel hey uh can you hear me um i just had a quick question do you have any um i guess like airdrop alpha i saw a um a twitter feed that kind of listed some projects saying

like oh these ones might have like or you know being speculative about projects that would have airdrops um specifically i saw zapper was on there and i just started using zapper i feel like you've heard of them um so i i don't know it's like just being a user does that you know make me eligible or like what kind of things make you eligible for air drops yeah so my general rule with these kind of things is that every single project within crypto is gonna have a token at one point or another for better or worse like i i won't go into you know if they should or shouldn't but i from what i've seen and from what i kind of like uh kind of like assume yeah i just assume that every project

um defy or outside of it even things like uh kind of like um not exchanges sorry uh coin tracking websites like even something like coin gecko i would assume that maybe one day they have a token uh so in terms of like getting uh access to these tokens into these airdrops usually it's done through you know using the network of course so if it's a default app using the default app doing a bunch of things on there uh obviously for unisop it was very simple where even if people had tried to use unitop and their transaction failed they still got the airdrop so they didn't even have to kind of use it successfully they just had to touch the unisop contracts once uh and they would they got the 400 uni on per address as well so there's very there's simple ones like that then there's more complex ones

where oh it depends on like a bunch of different actions like and the more actions you did on the platform the more unchained stuff you did the more kind of like tokens you got um but generally yeah i mean then there's other there's other things as well where if you're if you're an early contributor to i guess the project you also get kind of like more tokens in the airdrop or something like that uh but generally yeah it it the easiest way for an airdrop to kind of be distributed is through these on-chain actions because you can basically get what's called like a merkle root of everyone that's used your app and that'll have all their addresses on there and then you can just airdrop it like that but you know if you want to go a step deeper which a lot of teams i think are doing

these days you can you can basically look at a number of different things and just to give some tangible examples here say you find like this really cool new default project doesn't have a token yet but it's live and you know you assume they're going to have an airdrop one day well the first thing you would do would be obviously use the app itself you would go in there you would kind of like do some on-chain transactions you would you know kind of like play around with that and then that would probably make you eligible for that portion of the airdrop then let's say you want you you kind of like speculate and you're like okay well what else can i do um to add value here and i know what else what else i'm assuming they're going to give um kind of like tokens too another thing is

getting involved with the community getting involved with the governance process like if there's a if there's kind of governance set up in any kind of way in the forum or on the discord channel just getting involved there and becoming an active community member is a big way to to kind of like get that as well but on top of that becoming an active community member also kind of like gives you access to rewards so when the token goes live uh they might just pay out contributor rewards on top of the airdrop to people that are actually helping the project and helping the dow and all these sorts of things but yeah generally the most of the air drops will be done when you just touch and kind of like the app itself through an on-chain transaction and i don't know if using multiple addresses to try and game the system will actually

work too much anymore because i don't know if if any of you saw this i think some of you would off but when one inch did their airdrop they actually noticed someone trying to game the system where they were doing like i think i think it was transactions on under 20 on like every address that they could do it with and then what one inch ended up doing was saying well you know you had to have done a transaction of at least 20 plus dollars in value um to to actually be eligible for the airdrop so they basically cut off this person because they can see this you can you can download as i said you download the merkle root you can see all the addresses and you can see what they've done on you know with your app and if they're trying to game the system well then you can just

cut them off so i probably wouldn't try to do that um because i think a lot of people do try to do that and it just doesn't doesn't work a lot of the time especially these days because we're later in the game now where uh air drops are like expected now and people and the teams know this and the teams want to get the tokens into their hands of people that you know are more likely to use it than just like kind of sell it off straight away so i think from that perspective uh that's kind of like i guess um you know uh what's going to be going what's going to be done with air drops going forward and i think bitcoin is probably a perfect example here of they they dare dropped a lot of tokens but they actually airdropped a lot of tokens

to the people who are on the platform and doing a lot on the platform for a while so if you were like a funder and donating on the platform um you know from from kind of like the earlier rounds um over time as well you obviously got more uh if you're like a receiver of um of funding you know whether you've had a grant up or something like that if you did things like bounties and participated in like their kernel program they did a bunch of different things um to try and get as many people who are long-term aligned as possible uh to have tokens instead of just like speculators and there's nothing wrong with speculators but you know i know a lot of people get air drops and you know some you know you'll dump some of them depending if you're actually bullish on

the project or not i mean i've done that in the past i mean i dumped my one inch tokens um pretty much straight away as i got them at the time um i sold them for eighth but that's i mean i wasn't bearish on one inch but like when you get something for free it's kind of like a bit different but you know i i think teams are wising up to that and air drops in the future are just going to get smarter and they're probably going to get like smarter in the sense that there's just going to be less that gets airdropped to early users and the token will be distributed in in different ways like you know contributor rewards and things like that so hopefully that answers your question maybe adds a bit more color to it as well yeah no thanks i appreciate it and i

guess yeah that's kind of in line with with what i was thinking that just being as engaged as possible is kind of the best way to go um i guess in terms of like contributing um is this like you know does this mostly require technical skills like you know should i pick up solidity or like you know i'm assuming there's some other things too but i would assume you know having technical skills is the most important yeah i mean you can do basically anything you don't have to be technical uh you know a lot of these projects are looking for all kinds of roles whether that be as a developer or as a marketing community management business development you can do all these sorts of things you don't have to do uh just like development but if that is in

your wheelhouse if you're a developer you know it by trade or whatever definitely do that uh but yeah generally it's it's everything um you know especially if they're a newer project they don't probably don't have an established team there's probably like a core team of them but a lot of teams want to turn into dao so they want people from you know all over the world and and to come in and basically create like an actual decentralized platform so i think doing anything is basically adding value to it and the easiest way is just to jump in and see what needs to be done like you can just ask existing community members hey like i want to contribute kind of like how do i do so and the best teams will have will have like an onboarding flow or a contributor flow where it's like

well here's like what we want and here's what we need here's what you can do and then you just go ahead and do it uh and yeah you kind of like become i guess like a long-term community member doing work for a dow which uh which i think is pretty cool actually cool thanks awesome awesome so i'll move on to a question from the discord channel here from uh hen f here or henf uh what are your general opinions on other layer ones in the crypto space do you see them as a net positive for ether and then there's there's actually three different questions here are there any in particular you think will complement ether or ethereum well for example polygon uses a modified version of cosmos consensus and cosmos plans to bridge to ethereum with the

gravity bridge is this good for ethereum so i guess i'll start with like what my general opinions are of kind of layer ones um generally i think a lot of them are a garbage if i'm being honest i think a lot of them are either misguided projects uh outright scams or just money grabs in general which probably falls into the outright scams category uh because of the fact that it's just very easy in this ecosystem to sell a narrative and you know there's a lot of narratives out there right now that you know these chains are like cheaper to use than ethereum and we have more scalability than ethereum blah blah blah but no one ever tells you the trade-offs right they're not going to tell you that their chain is is more centralized or it's just completely centralized they're not going to tell you that

they're using a different programming language so getting developers to get on board is just going to be really hard and they're using like a different virtual machine i mean we've seen that there's a lot of evm compatible chains because the ethereum network uses the evm the evm compatible chains get adoption you know much quicker because of the fact that developers can just clone apps over to them and and kind of like be done with it there's not much of a hassle there so from kind of like that that's my general opinion on on most other layer ones is just i just think that i don't think most of them are scans i think some of them are definitely scans scams most of them are just misguided projects and most of them are just like gonna die out uh you know they couldn't they can go up in value i'm not making any

comments on the tokens or anything like that um but i i think generally from what we've seen you know if the grand irony i think and and what's actually particularly hilarious to me is that we've had these other layer one projects spend billions of dollars collectively on uh you know marketing and building and researching and all this sort of stuff only to be completely leapfrogged by evm compatible chains that aren't ethereum because it was never about building something that is like completely new and you know quote unquote better technology or anything like that what it's about is type is a network effects and ethereum has an incredible amount of network effects and developers don't want to have to rewrite their entire app for a new ecosystem in a new language they don't want to

have to get their their code audited again they don't want to have to boost up an entire new ecosystem they're happy and and very uh very um so very happy to essentially just like clone over their app to one of these other avm compatible chains and essentially just like have a liquidity port over in one way or another and they don't have to get new audits they don't have to kind of like change their code at all they don't have to hire people that may know a different programming language so i think that's kind of like why i think most of these other layer ones are gonna just like fail and die out and a lot of them already have like the 2017 era ones a lot of them pretty much like failed and died out and the ones that are still around don't even have

anything to show for it i mean i'm a very big critic of cardano i'm not a pick on any particular project but cardena doesn't have smart contracts it's 2021 and it doesn't have smart contracts and i know they they say oh we're trying to do it like you know peer-reviewed and we're trying to like research and we're trying to do like make the best system ever it's like that's just not gonna work it's just not how technology works what you do is you build maybe a system that you don't consider to be the best system ever or like something that would be maybe an inferior system and then you get like these network effects and then you keep building as time goes on you keep upgrading if you know perfect is the enemy of good so if you're aiming for perfect in everything that you do then you're

never going to ship anything i think cardano is the perfect example of that but there's so many other chains out there that have all the promises in the world of solving all of ethereum's issues and literally none of them even come close to doing that i think eth2 is probably the closest to doing that honestly um you know ethereum's proof of stake mechanism which is live today yes it's not live you know in the full capacity because we don't have the we still have two separate networks but ethereum's proof of stake is the best proof of stake implementation um ever out of any of the chains and you know that took a while to get there but but the thing is we didn't wait until you know eth2 was out or whatever or proof of stake and sharding were done we had the eth1 network bootstrap itself

and kind of grow these amazing network effects over time so that we don't have like a ghost town like a lot of these chains do when we want to essentially uh you know migrate these people over to a better ecosystem or to upgrade the technology uh so that's how i kind of view these things especially in software development and stuff like that i mean if you're if you're always trying to optimize for being perfect which a lot of these other layer ones seem to be doing you're just gonna be left behind and you know they're not fighting for second place they're fighting for third place because to me there's no third place right now and in terms of like um uh i guess like uh the blockchains like this bitcoin ethereum and then there's a bunch of other chains and i kind of i kind of think if you look at

smart contract chains i mean ethereum's number one and there's no number two if i asked ten different people what they thought number two was i'd get ten different answers so you know from that perspective that just generally i'm bearish on most on most layer ones here um and i do do i see them as net positive for eath or ethereum uh i don't know you know from from a kind of like token price perspective i actually think they're a net negative because they take money away from money that could go into to eath but i also think that that's a deeper discussion and deeper question and i've said before that i don't necessarily believe that just because money goes into one token it means that you know it would have gone into this other token it takes value away from it but i do think on top of the the token

kind of value accrual it also just like fragments things where a lot of uh you know new users fall through this sort of stuff and a lot of um you know people outside the ecosystem come in and they kind of like waste time learning about all this stuff that's just not not worth learning about so maybe it's just like a neutral thing for ethereum i think it just you know i think actually the if i've had to give a positive case i would say that the more of these layer ones that kind of fail to gain traction the better it is for ethereum because it just reinforces ethereum's network effects here um and then the other question here was are there any that you think will complement ethereum i think we've already seen that play out like uh look at the um polygon pos chain that is technically

another layer one because it is not secured by ethereum directly like a layer two would be it is secured by its own validator set um you know i mean it's it it does commit itself to ethereum it's staking logic runs on ethereum and things like that but it is you know for all intents and purposes it can be considered another layer one and i think it definitely benefits ethereum because i've explained many times that i think polygon the bos chain or at least the polygon ecosystem right now is just very ethereum aligned and and he's not trying to be parasitic to ethereum he's trying to help ethereum and it basically acts as like a pressure release valve for them for the ethereum network while um you know we we kind of like scale uh and while you know these layer twos come online and polygon builds their layer two

infrastructure as well and you know i even think something like bsc has been a net positive for ethereum because bsc was able to get millions of new users um i'm not sure if it's millions but like a lot of new users that never touched um you know crypto outside of an exchange before to set up a ethereum wallet or like a bsc wallet which is essentially a theorem wallet because it's got the same kind of um address space it's got the same block explorer bc scan so you know a clone of ether scan you still have to install metamask it's it's pretty much the same experience just like a centralized version of it but i think that that basically you know skips a lot of the the kind of like headaches people have and just on boards them really quickly into like an ethereum ecosystem

so and and that kind of like answers the last question they had here about about polygon um and like saying that you know cosmos plans to bridge into ethereum with their gravity bridge is this good for ethereum i think anything bridging into ethereum is obviously going to be good because of the fact that it's making you know value come to ethereum and and reinforcing ethereum as like the centerpiece of the entire crypto ecosystem so yeah i think that's overall a very positive uh there but yeah thanks for the question here i'll take the next one from the audience if anyone has one i have one go for it um so is it have we talked about uh i i just woke up but have we talked

about uh bitcoin being a thorn in our side yet no but i see your question here there was actually the next one after his you had a couple of questions about that but yeah i mean we haven't talked about it yet so feel free to ask it okay so we're at uh 0.068 for the ratio of the btc um and um before the crash we were at like uh point zero seven seven um i i kind of wonder like when are like how i'm worried about like uh how bitcoin maximalists will take seeing

how they will how it will affect them seeing ethereum take off in comparison to bitcoin just kind of like uh you know stagnating and i wonder like who are these people and like have you met them and and do they exist where they're okay with that like do these people exist like i'm just i i don't understand their mentality um and i i wonder i have this question because uh ethereum is tied to the hip uh with bitcoin during crashes but like uh so like if if bitcoin

maximalists end up like um uh switching over to ethereum then bitcoin will crash and ethereum will come with it so i i don't know how to reconcile those two thoughts in my mind you know me yeah yeah yeah okay yeah so this is yeah this is a pretty uh pretty broad i think thing to talk about when it comes to i guess both the the social layer here of um you know bitcoin is and bitcoin maximus like embracing ethereum or you know you know being detractors of ethereum and the token prices as well so i think i'll focus on the social stuff first and then move into how i think it affects the token prices so i have met udi one of the most famous i

think bitcoin maximalists out there you might you know a lot of you might know him from twitter i had i met him in real life uh in berlin at an ethereum conference ironically um and we we had kind of like traded kind of like i guess tweets a lot and and battles and debates on twitter uh prior to meeting and i i've had him blocked for quite a while now because it just got annoying um but but at that point uh when i talked to him then it was funny seeing how little he knew about ethereum i was talking to him about ethereum and asking his opinions on things and you know from his own kind of bitcoin maximalist view and he didn't even know about things like um you know at the time erp 1559 wasn't as popular as it is today but he didn't even know

about stuff like that and you know i was asking him all these sorts of things and he just he couldn't really give me any answers that that satisfied me that that kind of like showed me that he actually knew you know what he was talking about with when it came to ethereum or if he actually had like a proper bear case for ethereum and i'm not not to just pick on him but like from from what i've seen every kind of debate or every kind of like argument or every kind of point that bitcoin maximus have brought up over time have been completely wrong a lot of them said that d5 would never work now they're saying that d5 is coming to bitcoin a lot of them said that ethereum would never ship proof of stake while we shipped proof of stake just because eth1

isn't merged into e2 yet doesn't mean anything we shipped proof of stake it's exactly what's going to be running when we do the merge like we're not going to change the proof-of-stake mechanism that we have today we shipped it a lot of them said that eth would forever bleed against the ratio uh against btc well no it didn't it bled for a long time mind you but it came back because of all the value being generated a lot of them said that ethereum was a scam i mean it was never a scam and i think more now more than ever it's extremely difficult to make that that debate i think you're regarded as crazy if you call it a scam so when you kind of like just look back at all these talking points that they've come up with they've all been wrong and they've

always been wrong i mean i i spent a lot of 2018 in 2019 fighting these people day in day out on twitter because the uh they were always just spreading all these lies about ethereum so you know i remember this quite vividly and and they always just they could never ever give me like a proper bare case for a theme they always focused on things that just meant nothing and just like we're wrong completely wrong so and and you know over over the last kind of year or so maybe even 18 months i've noticed a lot of the i guess you could call them centrist bitcoiners so not the bitcoin maximalists but the ones that kind of never really used ethereum before but we're on the fence about it and we're kind of like just not not necessarily ignoring it but just like not interested in it because of the fact

that they were interested in other things i've just seen a lot of them come over to ethereum now and embrace it and use it i've seen a lot of them change to being you know way more bullish on ethereum than they are on bitcoin and i i think i don't want to speak for anyone here but i think you know there's there's people like people who know him hazu on twitter he started out as a as a pretty hardcore bitcoin he's still very much into bitcoin mind you but he definitely spends a lot more time on the ethereum ecosystem and i think this is simply because the the system's optimized for different things bitcoin optimizes for one thing which is obviously like digital gold whatever they want to call it right the network itself optimizes for one thing which means that the people it attracts is is optimized

for one kind of like i guess you could call it um social layer here where a lot of bitcoins share the same kind of views and beliefs they want to go back to like a gold standard where b where it's bitcoin instead of gold they you know they they generally distrust like any kind of government or whatever they a lot of them bring up conspiracy theories i see a lot too a lot of them are like climate change deniers i mean all this stuff not to get too political here but there is a very specific set of you know people in bitcoin maximalist and they're pretty pretty much the same kind of people there's not really much diversity there from what i've seen whereas you know because the ethereum network is so diverse because there are so many different things you can do with it

if you don't like the monetary side of ethereum then you can go do stuff in daos right if you don't care about d5 you can go do stuff with nfts if you don't care about any of that you can go do web 3 stuff um you know there's so many different things you can do so that plural plurality plurality of the i'm saying that wrong but whatever you get what i mean of the network lends itself to a kind of diverse set of minds and people and also a lot of the problems within the ethereum ecosystem are just really interesting to work on that's why you see the top researchers and top minds in this space coming into into ethereum especially you know things like mav attract very intelligent people because they want to solve these problems they want to understand them they want to

kind of like mitigate them whereas in bitcoin you don't have this sort of stuff happening i mean in bitcoin like the the most exciting thing that they had happening for a while that they always talked about until the last year or so was the lightning network and for those of you who have been around for a while you remember that pretty much all bitcoin has had the lightning emoji in their twitter name all the basically all of them now i don't really see it anywhere that's because light the lighting network failed completely and it has failed to this day and i believe that it is a dead end i do not believe it's going anywhere um and you know i've been saying that for a long time and so have a lot of ethereans and so of a lot of the smartest people in this ecosystem

saying that it's just too complicated it's not going to work and when you have ethereum as an alternative it kind of like you know lends itself to to to that and and kind of like reinforces that so on on that point i can move on to like the token price and and markets now markets work very differently i think to the social layer here where you can think about uh i guess like markets as as as a weighing machine like it weighs the kind of opinions of of people the feelings emotions information that it's given but it does this over time it doesn't happen all at once yes when bitcoin crashes everything else crashes that's just the way the market currently works today uh that's i think the way it's going to work for for a very long time but in saying that i do believe that uh

over the last few months especially as the eighth btc ratio has been going up people have been selling btc for eth because they're either like you know they don't want to hold btc anymore for a number of reasons i mean btc is an asset to me is like extremely boring why would you why would you hold it when you can hold eth and get like the same kind of um stuff you can get out of btc people will argue against that and say oh well bitcoin's more decentralized blah blah i i don't think that's necessarily true but and and kind of like the way i view it as well like the kind of like ethereum network and eth as an asset uh it just has much more going for it i mean when you kind of look at the narratives around it and and the things

coming to ethereum that are driving value to eth like one five five nine and the merge leading to what people mean there's like the triple harvening event where you know each issuance is going to drop down dramatically and potentially go deflationary because of the the mix of one five five nine and the dramatically reduced uh kind of block rewards you get this kind of um narrative that's very powerful and i think a lot of long-term bitcoin is at least the rational ones not the maximalists are definitely selling or at least hedging and you know selling some of their bitcoin or all of their bitcoin for ethan we see that play out in the markets because the ratio goes up so and obviously there's more there's been more demand for eth than bitcoin because of that ratio going up but but yeah in saying that the short

term is always going to be uh for the foreseeable future maybe i shouldn't say always but for the foreseeable future over the short term when bitcoin sells off like as hard as it does the res the rest of the ecosystem will it's just the way it works for a number of reasons i mean the markets in the short term are definitely ruled by speculators especially those on leverage and you know uh just just traders in general um and like arbitrage bots and things drag everything down with it whereas the long term the market you know hopefully kind of like works itself out but sometimes it doesn't i mean there's still things in the top 10 that i thought would have been long gone by now things like xrp which i consider to be an actual scam i mean i can't believe xrp still like even i think it's in the top five

or something like that um and then you know you have things like dogecoin and stuff so the markets are definitely a whole different beast but i do believe that over the long term ethereum will be number one it will flip bitcoin and i do believe it will go way beyond that and i don't think that that pose like it poses a systemic risk that bitcoin is uh changing over to ethereum or that they're selling their btc for eth i think that once they do that it all that happens is like btc goes down over the short maybe to medium term and the whole market maybe looks weak because it tracks btc but over the long term eth will bounce back stronger um is at least what i think will happen you know i don't know what's going to happen but that's what i think is going

to happen eth will bounce back stronger over time and that's how you kind of get a flipping is that uh essentially you know less people are interested in buying btc and holding btc more people are interested in holding eth and you know you have that kind of like a re-weighting there but it is not going to be pretty it's definitely going to be volatile um because this you know just this is the way the market works from a kind of market structure perspective so yeah a lot maybe a long one's it winded answer there but hopefully that answers your your questions that was a perfect answer a beautiful answer thank you awesome thank you well all right i'll move on to the next question on my sheet here so this comes from tiki torcher who asked about the eth2x fly or the flexible leveraged index from the

index co-op and why it was trading at a premium so i should explain how this works and then i can explain why it was trading at a premium um you know i guess like about a week ago or something like that so the way this product works is that it tracks uh it's basically a two times leveraged product for eth so and it's backed by collateral essentially now there is the product that exists uh on set protocol which is the infrastructure that backs it through index co-op and this product and this is basically a token called the the ether2x fly token now this token has what's called a net asset value which is the value of the assets that are underlying the the kind of product which is the collateral on set protocols so hopefully hopefully that's clear but

then you have like the secondary market price on unisop for example so people can either buy and sell the token on uni swap or they can mint the token directly from the set protocol smart contracts or they can redeem the token for the collateral through the set protocol smart contracts now because of the fact that you have these two separate markets here are essentially these two separate kind of um ways of getting exposure uh you have two separate prices so again you have the net asset value and then you have the secondary market price those can diverge now when those diverge what ends up happening is that there is arbitrage bots that go in and basically close that gap so if the net asset value gets ahead uh sorry if the if the secondary market value gets ahead of the net asset value

well then you'll have people minting more of um minting more directly from the contracts and going and kind of like selling it into into the markets yeah and kind of like making a profit from it so that's kind of like what's meant by the premium and there's a there's a good article that discusses this on the uh index co-op medium you can you can check that out but um what ended up happening last week was that the the premium persisted for quite a while because the arbitrage loop couldn't be closed and this was because there's actually a safety cap on the amount of um fly that could be minted so uh that was put in place as i said for safety reasons people that they didn't want people um being able to let the index co-op didn't want um you know the the supplier fly getting too ahead of

itself because it's a leveraged product they wanted to roll it out safely but you know ironically that ended up kind of like handicapping uh the the kind of token here on the product here where the secondary market value was way higher and no one could kind of close that arbitrage loop and maybe another way to think about this is what's happened with the gbtc product from grayscale some of you might may have seen that it's been trading at a discount for quite a while that's because there's no functionality to redeem it you can't close that arbitrage loop um i i think you can you can maybe i think you can close it like once every year or something like that there's like a period where they allow you to do that but like normally you can't close it so what ends up happening is that

the gbtc price and the ethy price uh the any grayscale products price trades independently of the other markets so you know gbtc traded i think like 15 discount to btc so if btc was like 40k gbtc was like 15 less than that and there was no way to close that loop no one could arbitrage that no one could make a profit from that so it stayed like that until there was more demand for gbtc uh that pushed it up it didn't matter what btc market was doing it was all about the gbtc market for the gbtc price and there's a premium there as well sometimes so maybe that's an easier way to kind of i guess think about that here but yeah that's that's why you saw the premium persist on the fly i think they raised the caps recently

and it's all good now um but yeah i think you know if you had bought uh on market and then the caps are raised and you got kind of like i guess arbitraged away here um with the net asset value you might have lost money here which is unfortunate but i think it just speaks to kind of like you know sometimes these things can be risky and you kind of really have to know what you're buying into especially when it comes to these brand new exotic products uh that have only been around for a short period of time all right i'll take the next question from the from the audience here otherwise i can go off my sheet hey anthony this is actually torture thank you so much for uh that explanation that was perfect um so i have a question um so first of all

i want to say thank you for what you do i mean your videos have like you and bankless combined both of you guys have like single-handedly i'll just say it like change my life literally like you know i'm doing stable coin farming and and i have all my eat positions and i you know interact with pretty much every d5 protocol and so a lot of that credit goes to you so so thanks for that starters um my question is is i've been you know doing all that i just mentioned for probably about like six months now i'm pretty comfortable with it i've learned a lot i've interacted you know on polygon a couple other networks um but you know as time goes on you know i'm still thirsty for knowledge still

learning and you know there are i want to hear your bowl case for trading um i kind of know where you stand on it as far as you know it's it's extremely hard to do in general um you know it's just holding eth you're going to outperform 90 of the people out there trying to do it but at the same time there are just like so many smart people on twitter that are trading kind of reminds me of that elon musk meme from like a few months ago where it's like the medieval guy and he's walking in and the girl bent over with her skirt up and it's like bitcoin on her on her butt that's how i feel about trading so i want to heal i want to hear what your

your bull case is for it and then just kind of in general what your what your perspective is of it for sure for sure well thank you for the kind words by the way i'm really glad that the content that i'm producing is having a profound effect on you so really happy to hear that um but yeah my general thoughts on trading uh i guess yeah you probably already know that i'm not much of a trader myself i'm definitely a longer term investor i buy uh you know ethan and tokens and i hold them for for longer periods of time i do that for for two main reasons actually one i am too emotional to be a trader because i have a very bullish bias on this entire ecosystem i mean obviously i you can probably see that from everything that i do i am always bullish

no matter what's happening i mean i was bullish when eighth was like a hundred dollars i was bullish when it was you know 4 400 i'm bullish now and that met doesn't make a good trader because to be a good trader you have to separate that bias and those emotions to be able to make good trades so that's why that's kind of like the main reason i don't trade and the second reason is um where i am in australia it's not very favorable tax wise to trade because i have to make sure that i'm outperforming uh kind of like the taxes that i owe um on a risk adjusted basis so like is this worth it for the risk that i'm taking and you know if i'm and kind of like making sure that i don't kind of like lose the money that i own taxes and things like that by

over trading and stuff so so that that's another reason there but in generally uh i think yeah just going back to what i said about being able to i i guess like separate your emotions from your trades is the key and that's kind of like i mean i know some traders who are pretty good and i know a lot of bad traders and the bad traders always have that common trait is that they're way way way too emotionally invested in a trade they'll say oh you know oh but i feel really good about this token because they've got this and this coming up and i spoke to this community member and i spoke to this founder or this team member and it's really cool i love this project it's like well i mean are you an investor are you a trader because that's what investors say

investors buy things because they love the project they love the team they they think the team's really great traders trade based on a number of different things but from what i've seen in my kind of like time in this space a lot of them do not even pay attention to fundamental stuff a lot of the time what they'll pay attention to is you know either technical analysis or just the way the market's moving maybe sometimes they'll trade based on hype things like sometimes some traders will will trade based on like elon musk tweets for example like that was actually profitable to do when he was pumping doge and things like that during like the bullish the the more bullish market a few weeks ago so they'll be those types but they're kind of like the day traders they're definitely not kind of like sitting in discords talking to team

members you know trading based on that uh that's more of like an investor thing um so you know if you want to be a good trader that would be the number one thing that i would say that you'd have to do is you'd have to make sure that you can separate your emotions from from your trades but in saying that that's an extremely hard thing to do because as humans we have us so many unconscious biases it's not even funny like you can look it up on google and see how many unconscious biases we have it's it's it's insane and you don't even realize you have them until you read about them and you're like well i actually do this and i didn't even realize i did it and that plays a huge effect in trading as well you have to be so disciplined you have to be able to spot

your kind of like bias you have to be able to spot your weaknesses and strengths and you have to keep learning it's like anything really it's it's a it's a muscle you have to keep kind of iterating on you have to make sure that you don't get let bad trades get you down you have to make sure that you don't over trade you have to make sure that you don't just like follow the crowd and and trade based on what everyone else is doing and you know the best traders and and there was this quote that said that the the the really the way to think about it is that the best traders are like snipers in a war they sit and they watch for their kind of like pray so to speak right whereas the worst traders are like the front soldiers or like the infantry

who basically just run in you know they might be you know just just kind of people kind of constrict conscripted into war off the street and they're just going and running in they're just shooting everywhere they don't know what they're doing whereas the sniper is like trained they're sitting in the back they're waiting for the perfect moment to strike and the perfect kind of opportunity to strike that's a good trader uh so you just got to kind of like i guess you know take all that together and just you know just go for it and make sure that over time you note down what went right for different trades what went wrong for different trades and things like that make sure you don't fall into traps and don't try to like chase pumps i think the worst thing that i've seen people do is they try to chase pumps

where something will have gone up like 20 in a day and they're like well it's top 20 today i better get in now well it's like what do you mean you better get in now it's already gone up 20 like i know that's not a lot for crypto but you know it it can come down just as quick as quickly as that because it could just be like one or two whales trying to pump something up so so that they can just kind of dump into you know some some new traders exit liquidity and that happens a lot of the time too um but if you wanna i guess kind of like uh uh become like a really good trader and ignore a lot of the noise i would also suggest probably not listening to a lot of the people on twitter because they can post anything

they can say anything a lot of them are anonymous as well so they can just be like oh i made this trade and i made this amount of money well okay show me you know you can say whatever you want like like show me um in terms of like uh i guess getting more education about trading there are a few good youtube channels one that i watch kind of pretty regularly i don't i don't consider him like a day trader but he does kind of like take a technical view of the market uh he's uh into the cryptoverse he's big he's got over 400 000 subscribers so i'm sure a lot of you have heard of him uh benjamin coleman is his name and he runs into the crypto verse he does a lot of kind of macro analysis but it really depends on what trader you

want to be you can be a day trader you can be like a you know weekly trader a monthly trader or you can be like an investor trader where you'll invest but you'll trade back to something like eighth after it you'll be like okay well i think that uh then i'm gonna sit in this token for a bit say it's a default token because d5 season is coming and i believe d5 is going to outperform eth based on blah blah blah and then you can go back and trade that back into each because your goal is to stack more eth using uh you know d5 tokens or something like that so hopefully that that answers your question but there is a lot to it and i guess i tried to give like a condensed answer there no no that was perfect thank you so much

all good all good all right so on to the next question from the the sheet here so from danpai314 he asked when sharding comes out could this result in many multiples of fee burning uh what's your thoughts on that definitely so the way to think about sharding is that when the blockchain gets sharded with eth2 it basically turns i guess you could say ethereum into a multi-chain ecosystem where each shard is is its own blockchain so you have like you know say say eth1 is like a shard um the current eth1 chain is like a shard then you have like 63 other kind of like blockchains that are you know basically clones of that and the reason why you shot a blockchain is so that you basically get more scalability without having to increase the load

on full nodes and on the network because and on validators because in in proof of stake the validators of the shards are kind of shuffled so you're only ever validating kind of like one shot at a time and then the beacon chain keeps track of this but uh it reduces the load and it's still secure because of that um and you know to answer the question about like will this result in more fee burning i mean yes because eventually like you know if there's enough demand there these shards will fill up and there'll be like fees being paid on each of these shards so if all of the 64 shards are like full or at capacity or whatever um they will you know be 64 times the fee revenue for example so that's a lot and i i i don't know kind of like how it's going to all play

out it's definitely going to take like a lot more demand to fill up 64 i think um but that's i think we're going to get there but yeah definitely it would result in more fees being burned because each shard would would have like an implement it would be the same as like each one for example would have like fee burning in it so uh so yeah i hope blade answers answers that question there um yeah next question from the audience if anyone has one um hello sasano um anthony so about sharding actually i kind of read about uh vitalik's article about that but you need to have a lot of notes that means not runners to a security efferent chain right so um so kind of my question

so kind of my question is that um how to get them aboard actually how to like recruit that many notes to be um maybe more affordable for the common folks yeah so i guess there's there's two different types here you've got like the the full nodes uh and then you have like the validators in proof of stake or the miners in proof of work so to get people running full nodes really it's it's kind of like an altruistic thing right now where there's no incentive to do so you're not getting paid any kind of money um the incentive is being able to just validate the blockchain yourself and you know you can use your own full node as a transaction relayer instead of relying on a third party as well so it's more secure that way but there's no direct incentives for that whereas as a validator

or as a miner your direct incentives are obviously the block rewards and the fee revenue from from the network so you're getting paid to do this um and you know vitalik speaks about this a lot in in terms of like making it as cheap as possible to not only run a full no but also validate the network so that anyone can can participate in in this sort of stuff uh so in terms of like keeping it a low cost for a full node um this is why ethereum doesn't like at least the base chain is not very scalable because the more you you kind of like scale it the kind of more capacity you give the base chain the more load you put on full nodes and the more load you put on validators or miners to to kind of verify the chain so i can

use a tangible example here of like two two different spectrums so you have like bitcoin on the very conservative spectrum where they're extremely limited in scalability i think five transactions per second is the maximum there on layer one but it's very easy to run a bitcoin full node you can run it on a hard drive you can't actually run an ethereum full node on a hard drive these days or at least it's very hard to do you can run one on a solid state drive pretty easily but yeah bitcoin is very very easy to run the full node because i mean bitcoin is very lightweight compared to ethereum because it doesn't have um a full virtual machine like ethereum does um but then there's the other side of the spectrum where you basically throw out like all your kind of i guess um goals of of letting anyone run a full

node and you just say who cares about that let's just like blow out this whole thing and blow out this and kind of blow out the limits that ethereum has on it to achieve the scalability and this is what bsc has done where they essentially took away mining they took away kind of like staking they they created these 21 validator nodes or i guess like these these masternodes as they used to be known as but essentially 21 validators all pretty much controlled by binance and then they basically upped the gas limit which is essentially ethereum's block limit and they reduce block times as well and that's how they achieve their scale they essentially just centralized the chain made it pretty much impossible for anyone to run their own full nodes or at least very very very difficult for people to run their own full nodes

and you need higher end hardware to do so so that's what vitalik uh talks about in his blog post is that you have these like two sides of the spectrum and then you want to be somewhere kind of like in the middle you want people to be able to run a full node on consumer hardware you know just like a laptop or like uh you know like a a a cheap laptop like a 500 laptop or something like that um and you want people to be able to to kind of like run validators on on the same sort of thing here in proof of stake and mining is obviously very different because with mining you have to buy specialized hardware but with staking you don't you can just run it on a normal consumer pc so that's kind of like i guess uh how it

works within ethereum and you know two sides of the other kind of like spectrum there and that's why ethereum on the on the base layer isn't just like uh you know raising the gas limit till like really really high because it would essentially centralize the chain and it'd make it much harder for people to run a full node and it would actually lead to instability of the chain because it would become harder for for miners and stakers in the future to kind of verify it as well so hopefully that answers your questions there yep yes thank you very much awesome so next question here from the discord from patrick so this is actually a very interesting one and i'm excited to answer this one uh what is your anti-thesis for ethereum what needs to happen to sell your ethereum bags and move on

i've never actually been asked this question before uh at least in this pointed way usually i'm asked the question of like you know what other ecosystems are you bullish on uh sort of thing not like uh what would happen what would have to happen in ethereum to to make you bearish on it so i think my simple answer is that the things that make me bullish on ethereum would have to be invalidated so the things that make me bullish on ethereum number one is that it is truly decentralized and it is not sacrificing its decentralization and security to achieve scale which i just described how other chains do this um and how ethereum is kind of optimizing to not do this secondly i would have to see like a mass exodus of developers and like the smart people in this ecosystem going somewhere else that's definitely

kind of like a second on my list there thirdly i would have to see a max exodus of users as well and like people and like all the the chain metrics that i follow i would have to see them dropping off and i would have to see like network usage going back to basically zero i would have to see you know people not launching new applications on on ethereum i'm not not using these new applications i would have to see things just stagnating uh and on on the stagnating note i would actually have to see the core protocol development stagnating as well here and then i guess like fourthly would be the community i would like the general community and and the way the community is if the community turned like really toxic if we turned into like bitcoin maximalist for some reason where it was just like super toxic all

the time we became very um enclosed and we became very parasitic i'm sorry very very toxic to outside uh kind of people and we didn't let anyone work with us anymore and we basically said ethereum is perfect you know it does everything we needed to do who cares about you guys i would definitely you know reconsider my kind of like position in the ecosystem and definitely uh you know consider going somewhere else but in saying all of that i don't even know where i would go that's the thing like if all these things happen for ethereum if ethereum just like kind of died off because of all the things i mentioned i don't know what other ecosystem i would go to i definitely wouldn't go to bitcoin that's for sure but um you know there's no other ones that i'm seeing today that have the same thing

that ethereum does that have the same culture and the same values all of them literally all of them are taking shortcuts to scale because they know that the only way in the only chance in hell that they have of competing with ethereum is if they can sell a narrative that they can scale um and then pretty much all of them started off in a very kind of grotesque way which i actually think is is the key here to to a lot of this is if your project starts off on the wrong foot it's very hard to come back from that and what i mean by this is that if you launch a layer one block chain and most of the tokens are in the hands of vcs and it's a proof-of-stake blockchain then what all that's happened is you've basically given the vcs rights to forever validate the

blockchain themselves and they basically control it and a lot of these systems are distributed proof of stake as well which means the people with the most kind of stake essentially the early investors are the ones validating the network so um you know that is is is kind of very kind of um i guess anti a uh anti anti ethical to uh i guess like what ethereum is trying to do we're trying to make as many people be able to validate the network as possible and trying to get a really good distribution of eth now people will say okay well eth was distributed in an ico it was prime blah blah but the thing is that was open to a lot of people a lot of people were able to buy and sorry buy it from the ico even u.s investors were able to do that

and then over the last few years ethereum has been a proof-of-work network so coins were distributed uh like that and we've had multiple market cycles where people have sold and you know coins have gone from from different people to different people which has led to a pretty good distribution of of eth as a currency i mean even if you look at kind of like the ethereum foundation they only have four hundred thousand eighth vitalik only has about the same i think that's nothing that's like not even one percent of the supply so um and you know the biggest investors i think joe lubin is probably still the biggest holder of eth and he probably only has like a couple million eth left or something like that um you know i think he had a lot more than that to begin with but i think he

only has about that much because he he kind of like founded consensus and then over time the way he funded consensus was he sold off eth to do so kind of like distributing it into the market and i think the reason why i talk about the token distribution a lot is that people don't want to be kind of like controlled by vcs or early investors they don't want to be dumped on they don't want to be kind of like beholden to these uh you know i guess like a plutocracy where it's like basically the people who got in the earliest have the most money now and they run it as if like it's basically a cartel they don't want to be involved in that and i've spoken to a lot of ethereums a lot of the hardcore ethereums that literally a big reason why they're in

ethereum is because it feels much more egalitarian it feels much more equal it feels like you actually have a shot here um and and of course in saying that you know staking in eth2 is very expensive now because it's 32 eighth minimum to stake on your own but you know the ethereum community is always working on solutions to this it is in my opinion not a death now you can stake in any number of providers right now and then in the future there'll be truly centralized staking services like rocker pool and things like that so from that perspective i think it's it's fine as well so yeah hopefully that answers your question about what would it need for me to kind of uh kind of like you know go away from ethereum but then as i said what kind of i guess like adds on to that is i just

don't know where i would go like i have absolutely no idea what other train i would go to um if i had to pick one like if i had a gun in my head and i had to pick one that at least shared some of the same values as ethereum from what i've seen maybe cosmos uh the rest of them i don't really think so i'm just thinking through my head right now polka dot no because i just don't like the the culture there at all it feels very i don't know it feels very culty um and it feels very uh because they basically are a distributed proof of stake chain that launched with like massive vc backers um it definitely doesn't have the same culture as ethereum um not to say it's a bad project or anything but i just doesn't really appeal to me

uh cardano i don't i don't have to go into why i wouldn't go into that community um and then you know all the other ones i mean solana just to me solana is not even like a blockchain it's more like a an aws with a token because it's so like centralized in my eyes it just does not lend itself to decentralization at all um but yeah hopefully that answers that answers your question there uh patrick um but yeah i'll take another one from the audience here if not i can move on to the next one here um from lucas5005 so he said uh are there any pro crypto projects that focus on fundraising for charity

um and if so how can one get involved so there's a bunch of different crypto based charities out there right now um so there's one that coinbase runs uh called give directly i think which is essentially um giving crypto and kind of um you know getting it into the hands of a bunch of different charities and uh distributing the value that way and the money that way there's of course things like git coin which i wouldn't consider a charity but get coin is still a platform where people can donate to you know projects that kind of like are open source and working kind of for free and and funding them through that as well uh there's a bunch of other drives out there i saw kind of recently um uh sandeep from polygon was doing a drive for covert relief in india so there's that charity there and in

terms of getting involved with them i i assume i haven't tried any of this myself i haven't done any of this myself but i assume all you would need to do was basically go to uh their website or something and then there'll be a contact form or something there and say hey i want to get involved like how can i do so um with git coin it's very open you can go on the governance forum or at least the forums and kind of like or in the discord channel and just like say hey i want to help out how can i how can i help you and and there'll be someone to answer your question there as well so yeah hopefully that answers your question uh there lucas i'll take one from the audience otherwise i'll keep moving down my list here um yeah me i cannot see

so um actually i have a question isn't that my series that i want to uh much pressure in advance so what is the general efferent to ease the enemy problem in response to the recent banners maybe like you say about the the the most stable crypto experiment on that b that means that because i have based on the podcast they said that basically minus when they kind of like say in order to if to got more to the chain because they get the rights to reorder transactions in the blocks stuff that then how can you film can kind of ease this

every problem or to make it uh yeah that's worse yeah yeah so i guess mavs is a big topic and has been for a little while now and yeah i think if people want to learn more about mev you should definitely go listen to that bankless podcast that that rick was was just talking about here um but essentially the way i think about mev is the way i think about a lot of these other problems that people consider maybe systemic risks to blockchains or to a theorem in general is that there are ways to mitigate it but they're hard problems and there are a lot of smart people working on this i think with mav it's going to take a little while to get to a point where we want it to get to and justin drake spoken a lot about this

on the bankless podcast as well where he basically said that there are a few different ways you can tackle mev you can mitigate it at the kind of like application level which is what something like flashbots does where it essentially kind of like creates this this service um for people for miners to kind of like tap into and for mev extractors to tap into to access mev and take the load off the main network so essentially remove that negative externality on everyday users um secondly you can basically come up with a way to randomly order transactions which is a lot harder there are a few different solutions out there right now i think chain link has one called fair sequencing um but i'm not exactly sure how that works but you can google it and read on about that um thirdly i think there's a way that

you can do this with zero knowledge proofs where you can essentially make it so that you can have us for example a unisop trade go through but the actual blockchain and it doesn't know what what that kind of transaction uh um has in it so it's like a completely private transaction but the unisa protocol knows how to process it and knows how to fulfill that transaction but no one else can see that your what your transaction is doing and that means no one else can front run your sandwich attack you or whatever so that i think is what's going to be happening over like i guess like the next few few years or the next couple of years at least there's going to be a lot of mitigation tactics going into kind of mev and making sure that we can minimize it as much as possible and maybe eventually

remove it but i think the from what i know i'm not an expert on the topic but from what i know the the holy grail is basically making it so that we can randomly uh sorry that we can order transactions randomly like truly random not like randomness that can be gained but like truly random that means that you know even though people can see the transactions they can't front run them because uh it's all randomized so even if they try to get their transaction in first they won't be able to do so because they don't know what position their transaction is in the mempool um so and yeah even through flashbots i don't think they'd be able to do that either if you know the transactions were were randomized because the miner would still need to put their transaction into um kind of like the public uh

public mempool here um and and and it be randomized there so yeah but yeah i mean i highly recommend people listening to that bankless podcast to get more details on this though three guys that were on that podcast i believe or two guys that were there as guests they definitely are experts on the topic and i have a lot of knowledge and have been doing a lot of work on that for years now so yeah but hopefully that answers your your question here yes there's three panelists so yeah that's answered this question thank you awesome all right so uh next question from hat masarat i hope i said that correctly uh they ask is there still a need for matic polygon when ethereum 2.0 is finally here so i think uh maybe the broader question is like is there still

a need for l2 when ethereum two is here or for like these other scaling solutions when eth2 is here yes yes there is eth2 a load is not going to solve all our scaling woes um and i i by a2 i mean like e2 with sharding what sharding does is it enhances layer 2. it makes it so that we can get more scalability at layer two so what i would say is that eth2 sharding and l2 are symbiotic they work off each other they work to empower each other and the reason they do this um and i can put it in the simplest way is that as i mentioned before and earlier in the in the ama i said that sharding essentially splits up the blockchain into 64 different blockchains because ethereum will have these two will have 64 shards

to begin with and that means you have like 64x the capacity of instead of just like x that you would get with just one chain now because of this you get 64 extra capacity for layer twos as well because what layer twos do and how they work is that they post their data to the eth1 chain so to like a shard for example so if they're posting to one chart then they only get that shard scalability and they're still limited by that they're still limited by whatever that chart has be it like 20 or 30 transactions per second or whatever you want whatever it is at the time whereas if you have 64 times like more shards then you have like 64 times say 20 transactions per second whatever that is and then you have like you you multiply that again

for the amount of layer 2 scalability you can get out of that so there's a really good research blo from vitalik called a roll-up centric roadmap if you google it you'll be able to find it and that goes through essentially what ethereum 2 with sharding and layer 2 world looks like and why they're symbiotic and why they're complementary so we'll always need as many scaling solutions as possible that we can get because there's not a one-size-fits-all there is no silver bullet scaling it's a it's a multi-kind of yeah rollout plan maybe even multi-decade to get us to where we want to be to service the entire planet while also retaining the security and decentralization properties of ethereum so hopefully that answers your question uh there and i'll take the next one from the

audience or i'll keep moving down the list here cool all right the next one from howard here so uh he says any thoughts on mccormick's concern that that and it's got in quotes here maybe 100 transactions happen on l2 and the whole group shows up on l1 as one transaction that would decrease transaction fees by 100x end quote so i think what this is talking about is how like when you're on l2 you can do potentially thousands of transactions and only one transaction gets posted to the l1 ethereum which is called the the the proof or the the kind of like transaction proof or a rollup as it's it's called um as a lot of you will know not by now

this is true but the way to think about what's true is that like it reduces fees obviously but the way to think about the l1 to l2 dynamic is that if let's take a little bit of a kind of like step back here and look into history a little bit of how the ethereum blockchain has been treated over time when you have like a blockchain that is uh i guess like generalized it it means that anything can be built in any transactions you can do you you kind of like can do will be done on there but what ends up happening is that the low value transactions the one that the ones that are less profitable will get pushed out by the higher value transactions so for example trading nfts like low low cost nfts is low value because no one cares about trading one to two dollar nfts on l1

because it's not going to make them as much profit as doing something else such as like arbitraging between decentralized exchange pools or doing liquidations or doing yield farming or anything like that that's more profitable so those transactions essentially push out those other ones then what ends up happening later is that more more higher value transactions push out those ones and then you just keep having this this kind of like um of evolution of transactions over time and eventually you get to a point where only the highest value transactions the ones that are the most profitable the ones that people don't mind paying 50 100 fees for are the ones left in the network and the ones the network is servicing and we've seen this play out on ethereum already where when the gas prices were at 100

plus way for quite a while because of the bull market because it was just worth it for people to spend this money because their transaction was going to make them more money than what they were spending in gas fees so to take this back to how l2s play into this well what do you think l2 transactions are going to be they're going to be the highest value transactions for the network because all the value in those thousands of transactions um that that they're putting on the ethereum network in one transaction has a lot of like a ton of value in it right more value than the even the r1 transactions have that are paying 50 to 100 fees so that is the end state the end state is essentially uh l1 ethereum becomes a security chain for l2 because l2s are the only ones that are the other l2 operators

essentially are the only ones willing to pay the the really high fees uh because it's worth it to them and it's and they've pushed out all the other transactions from l1 so so that's kind of how it works and in saying that that means that l1 fees are never going to be cheap like and by cheap i mean they're never going to be in the like the 10 cent range again or like even under a dollar um i i don't even at these like low gas prices now i actually think that right now is the cheapest we're going to see gas for quite a while because right now as a holiday weekend in the u.s so activities down the market is range bound so people aren't really trading it because there's no momentum in either direction right now so people don't you know escape the trade no one wants

to take leverage right now um because people aren't trading and because the market's generally rage bound there's less arbitrage arbitrage transactions to do because there's less volatility so i actually think right now over this weekend will probably be the cheapest we see gas for quite a while unless something changes on ethereum like we raised the gas limit again but if you know all the house being equal that's kind of like what i view it right now and but just over time like i just i i just see it it just keeps it just keeps going up like and and it reaches a point where it basically prices out every every transaction every user except l2s and that's why we have the l2s because most users will just sit on layer 2 and experience like ethereum as they they know and love but without the higher transaction costs

and with much faster kind of like transactions too because you don't have to wait one ethereum block you can basically do near instant transactions there so hopefully that answers the question of like i guess is this bearish that we have l2s that are going to take load off the network no i think it's actually incredibly bullish because it means we get to a point where we know who's going to be paying these transactions and these sorry who's going to be doing these transactions who's going to be paying these fees and it's basically the um it's basically not the end users now that have to suffer this pain of it it's the infrastructure providers the ones who are making um you know the l2s that are essentially making a profit from this and then paying it as part of their running costs essentially so hopefully that answers i guess that

question but also give some context around how ethereum is going to work in terms of scaling and how the fees on l1 will never be cheap again in my view and they're not optimized to be cheap they're optimized for the most high value transactions of which l2s are eventually going to be the only kind of you know high value transactions that l1 can process one uh i'll take one from the audience unless i'll move on to the next one here i've got just a few more questions left here but coming up on almost hello yeah i have a question yeah go for it oh perfect um how much uh power do you think bitalic has over the ethereum network and what would happen if vitality at one point decides

to back down from the project so i think he doesn't really have much power anymore um i don't know how much attention you pay to call the core dev calls or how much attention you pay to just ethereum core development in general um he has he's still he's still very active he's still definitely uh very um important for especially the eighth to effort he spends a lot of time there he's obviously uh writes a lot still writes a lot of research posts a lot of blog posts and things like that but i do think at this point in ethereum's life if italic was to get hit by a bus right the the classic thing people talk about like how high is your bus factor like if it's a bus factor of one that means that if one person in your kind of like organizational effort was hit by a bus

then everything would fall apart i think with vitalik right now um you know if if he was hit by a bus the theorem would go on it would be a great loss because you know we would lose all that kind of brain power but at the same time the ethereum network is extremely decentralized there are multiple groups working on it there are multiple core developer teams working on it there are you know a lot of core devs these days and there are a lot of people they're called researchers as well um and i just think that even vitalik couldn't get anything into the network if you wanted it to go in either like if he said hey we should do this you know we should um uh basically put this upgrade into ethereum and people are like well no this is a stupid upgrade like maybe he

says hey we should you know print 10 million each and give it to my address like nom would agree with that and he has no centralized power to be able to put that that change into the network because he would have to convince everyone essentially the nodes the the core developers the exchanges everyone to to kind of like go on board with this so from that perspective i think vitalik plays a very important role within the ecosystem but he is definitely not a central point of failure maybe he once was in the earlier days but these days he's definitely not thank you awesome so on to the next question here from matthew t so for someone new who is stacking ethan has a lot of it what do you recommend doing with it running a validator staking in a pool

cold storage or other so this is the beauty of eth right there's so much you can do with it and i think it just depends on your risk appetite so like obviously how much risk are you happy taking now i think the lowest risk thing you can do with your eat right now um is just having it in cold storage right but other than that the lowest risk productive thing you can do with your eighth right now is putting it into staking and i mean like solo staking not sticking through a pool because a lot of the pools or pretty much all of them are pretty centralized um but i mean solo staking so if you have 32 eth you can set yourself up a validator on your computer you just run it and as long as you don't misbehave um or go offline for extended periods of

time you're going to be profitable but in saying that you're you'll be earning like seven percent and that'll be going down over time right now um because you know the risk is lower and it's not paying as much so that's one thing you can do that's the least riskiest productive thing you can do secondly there's a ton of opportunities within d5 you can basically use your ethos collateral to borrow stable coins and go and yield fund with it a lot of risk there you have risk of being liquidated you have a liquidity risk of not being able to pay back your stable coins because you can't get access to them you have a smart contract risk all over the place depending on what you're doing um and yeah just generally there's a lot more risk uh but with doing that but the rewards are more lucrative you can

sometimes i mean during like more bullish markets you can get 30 to 40 on your stable coins very very nicely i mean even today i think you can still get close to that in alchemics right now um but again risky because smart contract risk and and liquidation risk and all that sort of stuff because you're using your ethos collateral to to borrow stable coins against um other things you can do is put them into liquidity pools on uh amms like uni swap and but you're you're exposing yourself to impermanent loss if you do like an eth usdc pool you may be able to make a lot on fees if you're doing like a unisop v3 concentrated uh kind of liquidity position but again you're risking in permanent loss you're risking the market moving um you know away from you and it kind of like kind

of like expediting that in permanent loss as well there uh and and i guess like lastly um there's much more you can do but i just going over a few use cases here there's there's um liquidity providing into the uh eighth uh st pool on curve which is quite lucrative right now where st is staked ether from lido so and it basically tracks like uh the price of of uh i guess like ether with kind of like um sorry the same price as ether but the way that it distributes staking rewards is that it inflates itself but if you put your ethernet st and paid with st in the curve pool you can get rewards in the form of ldo tokens and crv tokens and like apy from that as well uh from the the trading fee so

yeah there's there's just so many things you can do with your ether but it just depends on your risk appetite and if if you're if you're risk-averse i would suggest staking um if you want to generate a yield that's what like i mean it depends on what what kind of stage you're in in terms in terms of like your i guess like investing career or things like that we were talking about this um in the in the discord channels the other day about how like for me personally i'm more in capital preservation mode these days where um you know i bought a lot of eth early on and i want to be productive but i don't want to be doing like a lot of dj and stuff with it i don't want to be like risking it on any kind of like um you know by borrowing

i do borrow against it sometimes but not like uh i i guess like i've i've been winding down those farms and going into into staking more um so i've kind of like switched from from that into staking so a lot of my eight is definitely going into into eighth two to steak still keep some of it to do other things with it on ethereum but you know everyone's individual situation is different you have to you know come to i guess like you have to consider how much risk you're happy taking on um and kind of like how much uh how much you want to how much capital you want to risk as well because you don't have to put all of it in to one farm you can spread it out across different farms but you kind of like i think have to consider risk

the most here so hopefully that answers your question uh matthew t if you're listening to to this yeah and i'll take another one from the audience if someone has one all right next one from the sheet then uh this one's from rpkt13 so they are basically saying they're recently feeling some uh distortion between the chain link and ethereum communities um while they they think that they are both supposed to work together um he gave some examples here vitalik proposing uni as an oracle uh to replace chain link uh some eth maxis questioning the use of chain link etc you know what is your view on ether link within the ecosystem i think that they're extremely symbiotic

right now and extremely complementary i mean channeling powers a lot of the ethereum ecosystem chain-link powers like rv and synthetics and you know a bunch of other kind of like projects out there with oracles so and from what i've seen the only blowback or pushback sorry i should say that i see from if you want to call them ethmaxis is the around the token they think that well you know the link token doesn't do anything right now so why does it exist you should just use ethan i don't really have an opinion on that but i think that's a lot of a lot of what you see i don't think people have a problem with chain link itself i think some people may think that it's a it's a subpar solution and that it's just like basically a centralized oracle um but you know the oracle problem is very hard

to to kind of i guess solve and i don't think you can solve the oracle problem i think you can just kind of keep improving it keep making it making oracles better keep making them more resistant to attacks and things like that so in saying that i haven't noticed the kind of schism myself in in the communities all i've really noticed is over the token i think and i think you know the chain link community i love them on twitter i love all the frogs and everything on the memes but i think some people get turned off by that as well and they see the like all of that and they're like oh wow this community's fake or whatever um and that's just you know people's opinions on things i don't think it's targeted at the chain link product itself i think people understand that

chain link serves a very important purpose and a very important role in the ethereum ecosystem i just think that yeah some people can get turned off by the community and turned off by i guess like the the token as well um so yeah hopefully that kind of answers your question about kind of like chain chain linking ethereum in the relationship uh there right moving on to the next one from the sheet unless someone had one in the audience hey anthony i have a question yeah go for it uh i was wondering if there was another use case or application uh for ethereum uh that will garner as much public inflow as nfts yeah so it's funny because nfts actually

i think caught a lot of people off guard um and even myself i didn't think it would get as big as it did um and i think maybe we can start from like why nfts got so popular so quickly i think it's because it basically tapped into a community that had that ethereum hadn't tapped into before right that blockchains generally hadn't tapped into before and that was the creative artistic you know gaming communities um they're huge right there's millions billions of pro i think at this point in time probably billions of people that that identify as part of those communities whether they're artists or the collectors or the gamers you know at least the hundreds of millions of gamers out there these days like people who actively play video games and you know that includes everything from from mobile games to to desktop pc games

to console games whatever and artists i mean art has been around for so long and even if you're not an artist you enjoy art collectors i mean every like a lot of people collect things i mean i collect things you can see around me so that that in itself i think is the reason why nfts got so big is because the total adjustable market was so he's so huge and i often say that the total adjustable market of defies is also huge but i think that defy is different in that finance touches everyone's lives but for most of for most people i think for 99 of people they don't actually do their financial activities on their own they delegate that to someone else whether that be a bank or a financial advisor or whatever you know i never touched any of my bank's financial services

um and i still haven't touched them i haven't bought any stocks through them i haven't kind of like i don't think i've even taken a loan from a bank before or anything like that but in d5 i'm doing all of that and more so i think that's why d5 hasn't taken off like nearly as fast um and as we would like it even though we know that the kind of like addressable market is is huge um but with nfts i think it's just a much simpler thing as well where people can come in they can be like well okay i'm used to buying digital items these days because of video games or i'm used to buying digital collectibles because of uh you know these these kind of other things that i do whether that be video games or like um you know there's there's tons of digital collectibles out

there these days and and stuff like that so um when i think when people saw that there was just a craze around it there was just like a mini bull market similar to what we had like with icos in 2017 where there was a lot of like opportunistic stuff and a lot of like crap out there but um you know people just came into the ecosystem because they either saw there was money to be made or they were like just enthralled by this uh i guess like new idea of essentially digital ownership and it and the funny thing is is that digital ownership like true digital ownership where something can't be copied and it's unique has existed since bitcoin was around right because bitcoin technically is is a you know a collectible right it's just a fungible one where no one can print more bitcoins uh or

anything like that no one can print more eth it just it's relegated by code or sorry regulated by code same thing with nfts where you know you issue an nft and if it's a one of one no one can copy it or print another one or do whatever there's no copy paste so i think that's what got a lot of people's attention um but in you know i guess like uh to your to actual question here hopefully that gave some background i think because i wanted to give the background before i answered the question but the question i think is is very hard to answer because of that because there's a lot of things right now within ethereum that i think are really big and can be really big but i don't really know of anything that can actually garner as much attention as nfts did as quickly

because there's just like there's a lot of industries out there there's a lot of people who who who kind of like will use a lot of these apps but maybe they don't know about them right maybe they maybe they don't know that they want them maybe maybe people don't know that that they can that they want to manage their own financial financial kind of like um life maybe you know and and i think that when you talk about finance a lot of people they kind of gloss over it because finances has been traditionally very boring so from that perspective i actually think that d5 is bigger than nfts but i think it's just the way it's framed because nfts are fun collectibles you know shiny pictures everywhere shiny images everywhere gaming whatever like that's fun whereas you know financial products are boring they are traditionally boring like in d fights

not boring but traditionally they are boring and in things like um dao's for example is another big use case people think that um you know dows are boring as well because they're like oh you know what's a doubt it's like okay you can coordinate humans like a company or what whatever who cares about that but then when you frame dows as something else you can frame them as like guilds from like a video game for example because dowels do represent kind of like guilds and people relate to that and they're like oh okay i know what a guild is you know i was part of a guild in this online game that i played or you could say like a party or something or like a group of people doing you know working towards a common goal then people start to relate to it more

so i think it's a mixture of like we need some better marketing for some of these things that use cases that we already have if we want to get that mass adoption out there we need to to gamify a lot of this stuff and and to make it more flashy for people at the end of the day because yeah as i said like finance is very boring traditionally um and people just don't know that there is now this entire financial system with defy and there's this kind of like entire um new ways of coordinating humans with doubts and even like this entire new kind of thing happening with web 3 um where people just don't know how exciting it can be because they just it just hasn't been marketed correctly to them where i think nfts were just very easy to to market because you had a lot of

artists coming on board they were showing off their art and being like hey you could purchase my art you can actually own a digital copy of my art and it's yours right there's no no one can kind of um kind of like copy it but i also think a speculative mania played a big part in it too so there's there's kind of like the two main things it's like it has to be a really flashy use case that appeals to a lot of people and it also has to have like a speculative side to it too because at the end of the day i think all humans love to gamble in one way or another or love to speculate in one way or another um it's not a bad thing but if you tap into that that's when you get the real kind of i guess like

usage and growth that you might want to see from a new use case so hopefully that answers your question yeah thank you so much awesome awesome so there's a few more here i think i'm going to wrap it up soon we're getting up to 1am my time here so i'm gonna just answer these quickly i think there's four more um that i've got here and maybe there's some more in the actual channel here um yeah there is but if i don't get to those i'll definitely answer them in the next one um but for my sheet here i've got one from knowledgefight who says which people on twitter youtube discord do you follow to challenge your thoughts so that is not only only an eighth echo chamber of sorts so this is a funny one i actually don't follow many people who are outside of

the ethereum ecosystem um and that's not because of i've tried not to follow them or anything like that um that's just because i'm just more interested in paying attention to what's happening in ethereum but to stay out of echo chambers generally i would the way i kind of approach it is that i use multiple different kind of news sources um in general i don't just kind of go on twitter and just take what twitter says at face value i don't just you know look at a tweet and be like okay well you know this person's tweeting about this this is the truth if i see something and i'm like okay well that that sounds like it could be right but it sounds like it could be wrong as well i go and ask someone like that i know like a friend or something i go and ask

a group of people i'll go do some more research i'll google about it i'll look at like different websites i'll go into different discord channels i'll go on to youtube or watch videos about it and i think that just applies generally to anything in life and anything you read online is that there's a lot of stuff on twitter that gets especially twitter like when nuance gets lost you actually don't know kind of like where the truth is because people just put something out and put a simple tweet out because you only got 280 characters and you know if you do a tweet thread you still have a lot of nuance that gets lost there as well so for me i just read something and then if it sounds too good to be true if it sounds wrong if it sounds you know uh if it sounds like something that is

is is part of like there might be like uh uh i mean not too good to be true it might be like well someone's framing something as it's better than what it is um so to speak uh then i go and kind of like challenge myself outside of that so i just i personally i don't really believe in following different people on twitter or like um i mean twitter specifically because i know a lot of people spend a lot of time on there i do i don't believe in following like um you know bitcoin maximalists and if you're a maximalist at the same time because it's just so much noise because what ends up happening is you get a lot of crap from one community a lot of crap from the other community and then you have to like weed through even more crap whereas if you can

optimize your feed to have essentially like lots of smart people tweeting a lot of smart things with like some posting in between i mean i know i should post a lot you can kind of use that as sources of like alpha and sources of knowledge and then go challenge it elsewhere because if you just like have a bombardment of you on your twitter feed of like all these two two varied opinions i don't think that's very very healthy there so hopefully that answers your your question there knowledge fight um i'll take one from the audience i'll go on to the next one here i've got three more on my sheet here all right onto another one from my sheet here from ranta i think it is what do you think would happen if several major governments would entirely ban crypto i think i answered this on the last ama

series um so i won't go too in depth here but i think the answer that i gave last time is that um that the trdr is that governments aren't like a coherent force like it's not like all the world's governments work together and work in some secret illuminati i mean maybe some people believe that but i don't believe that i i think that they all like mostly work independently they do have you know alliances and common goals and things like that but i think that if one country bans crypto there's just another country's opportunity to embrace crypto and eventually you're gonna see like people migrate from the countries that don't embrace crypto to the ones that do and then that country just loses economic activity and i think that crypto as a revolution is as big as the internet so banning crypto is essentially shooting your country

in the foot i think and and basically uh ejecting a huge amount of potential gdp out of your economy to another one so i think banning crypto is just not going to happen in most countries i think the fact that the us is regulating crypto is extremely bullish actually because you don't regulate something that you plan to ban um and you know regulations i'm i'm not really a big fan of regulations in general but it's it's better that they regulate this uh because it just sends a signal to everyone that they're not going to outright ban it and it's not just the us it's like pretty much you know most nations out there i know we saw recently the crackdown with china and you know it's it's very hard to get accurate information out of china because of the cultural and language barriers but generally in china you'll see you know

they i think from what i saw it was basically they banned coal mining and they cracked down on leveraged trading but it wasn't like an outright ban so you'll see some of these things happen too where some things will get banned like i think leverage trading is on borrowed time to be honest i don't think leveraged trading on on most exchanges is going to exist um in the future because not that i like regulations as i said but i just do not think that people should be able to get 100x leverage that on day one of signing up to binance or something like that a new trader new retail trader basically being advertised hey you can get 100x leverage with your you know the small amount of capital that you've put in you it means you can compound your gains and you know most people are going to

lose that and that's why we see such a volatility in the crypto markets because of these this leverage so i think long term that's one thing that will definitely get very very regulated um and it's already very regulated in the traditional system um and you know d5 will still be able to give you leverage it's pretty much impossible to regulate d5 but the centralized exchanges i think will get neutered in terms of leverage offerings there um which which would actually be kind of bullish i think because i would rather the market not be just like like 90 leverage 10 spot kind of trading i would rather it be the other way around um but yeah we'll see how that depends out there um but yeah i'll keep moving through the list here do interrupt me if you want to ask a question i've got two more on my list

um one here from snackdaddy who says do you think there's a chance for eth to lower staking requirements in the future um i don't think so i think the staking in terms i think so there's there's two kind of staking requirements here there's the 32 eighth and then there's the hardware requirements i think what snack daddy's asking is the 32 eighth requirement i think you know maybe technically it could be lowered in the future but the minimum eighth requirement is actually based on the minimum validator uh no sorry the maximum validator set that they want so for every 32 is equal to one validator so that what the um the core researchers and protocol designers don't want there to be you know too many kind of like validators

at one time because what ends up happening is the chain can become unstable because if you have too many validators uh say there's like millions and millions of them they can't all talk to each other um fast enough you know because they're spread over the globe and it leads to what's called like an influx of uncle blocks or like oma blocks as they're sometimes referred to so that's a bit more technical but i do think that uh there's actually actually now that i think of it there's actually a proposal to do a soft cap on the amount of heat that can be staked at any given time where it's essentially 30 million ish or 32 million each can be staked and then it rotates through um the validators if there's more eat steak than that so say there's like 60 million each staked well if the soccer limit is say 30

million then there will only be 30 million eighth or 30 million worth of validators so half the validate is active at any given time so that gets around that problem of of of instability here so then potentially the the um i guess like the staking requirement could be lowered and you know if eth goes to like some some ridiculous value in the future maybe the it it's worth to do it's worth it to do that because then the barrier to entry to buy that 32 stake on your own just gets so so big but we'll have to see how decentralized staking pools kind of shake out as well if like if they're truly decentralized and they can work very well i think that that solves a lot of these issues too where you can stake with like a little bit amount of each and still trying to do

staking on your own so hopefully that answers your question here i'll move on to the last one from my sheets from mk cole here who said could east survive on a fees only security model for stakers completely moving the per block issuance no no i don't think so because so there's two aspects to this i think the way ethereum's monetary policy is being designed is that um it's a pretty beautiful and elegant mechanism i think where post one five five nine being implemented post the merge happening we have perpetual block rewards going to stakers so anywhere from 0.5 to one percent perpetual block awards going to stakers and then we have most of the fee revenue being burned um which basically takes the value and puts it back into

each the asset um and then you know if we have if there's enough fee revenue it can go deflationary and that means that it doesn't matter that we're paying out one percent extra each year um to validators to kind of stay here in you know some people call it inflation it's technically issuance um or new issuance but yeah so so that's kind of like how the east monetary policy has been designed and the reason why it couldn't survive on a fee only model is there's been research put out there's a research paper on this that shows that a fee only model especially for for expressive programmable blockchains like ethereum actually leads to an unstable chain because what ends up happening is that mav gets absolutely ludicrous and things that miners can do or stakers can do

to extract as many much fees in mev as possible gets really really ridiculous so that's another reason why eth can't just survive on fees and also by surviving on just fees what ends up happening is that you basically have to rely on fees being really really really high all the time now maybe that can work for a blockchain like ethereum because of the fact i just mentioned that uh just before where i said that l2s will eventually pay like really high fees to l1 and we'll have like high fee revenue but you know i don't think it can work for for something like bitcoin and this is why i'm actually bearish on bitcoin long term where they don't have like a perpetual issuance model they have um essentially have to rely on fees well bitcoin fees have been trending down they're not going up they're pretty much

stagnated because the only thing you can do on bitcoin is transfer btc you can't do smart contracts or anything like that so the amount of fee revenue generates is capped at the at the most that people are willing to pay to move bitcoin around so that's kind of like how i how i view that so hopefully that answers your your question mk cole um that's the last one from my here i'm going to have a quick look in the discord channel for some last minute questions feel free anyone to ask questions while i'm looking in there as well i have one question um so bitcoin becoming the inflationary ethereum also becoming deflationary uh people have no interest in trading them from everyday objects so do you think there would be a coin that can become like uh trading

in every day that that is the that doesn't is that is isn't perth with the dollar or any other coin from a country so i the way i view kind of like eth and btc i don't view them as as currency or money i view them as a programmable collateral um asset so or a programmable kind of like storage value asset because of their deflationary properties uh and i don't think they were ever created to be a currency so the way i think about it is there are a lot of different things we can do on the application layer that sits above um kind of like eth such as dye such as all these other kind of stable coins out there like fae and things like that or things like rye which is basically

um not technically a stable claim but it uses eth as collateral and is stable to itself so i think we can get to a point where we can use eth as like the collateral for a stable currency system and then people will use that as as money on these systems rather than using the underlying asset that is deflationary that is extremely volatile even if eth wasn't deflationary it would still be very volatile um you know even if ethan was one percent of fla in you know it one percent perpetual issuance without fee burning forever i don't think it would ever get to a point where it's it's you know stable enough to to function as like a currency i think it's been it it's kind of like not been programmed to but it's it's fallen into uh comfortably i believe into the collateral

story value use case and also the staking use case too and obviously to pay fees and things like that so yeah i do think in the future we're gonna have um maybe something like rye or a stable coin backed by eth that's pegged to some fiat currency or peg to a basket of currencies um to reach that stability so hopefully that answers your question there yes thank you awesome so um i i i've got to answer just this uh there's a few more questions in here um i'm actually going to leave a lot of these for next ama because we've gone on two hours here so i want to wrap this up but just this last question from the princess here who asked um is a staking question where would you suggest taking less than 32 ethan why in addition could you explain how the

pool staking works and how the rewards are distributed in such cases so i'm not an expert here i would suggest going and looking into all the different kind of staking pool solutions out there and and kind of looking at the trade-offs and everything like that and deciding which one's best for you the one that i know probably the most about is lido and just to disclaim here i do own ldo tokens um but lido is essentially still not like trustless or decentralized in that it's um it it basically takes your eighth in gives you these kind of ste tokens which is basic basically a tokenized representation of your staking position so you can do things with that stf as i mentioned before you can put it in like a curve pool or you can use it as collateral um in different apps and things like that

but it well essentially what it does is lighter takes your eighth and distributes it to one of the many staking pools out there so i think they've got like maybe eight right now on board uh but essentially you'd be going through a staking service provider to do this so that's essentially um i guess like the one that i've looked into the most there's there's plenty out there right now don't get me wrong but that is is i don't know i'm not an expert on on most of them you can join the eighth staker community on either discord or reddit and they'll be able to help you out more with that um so yeah hopefully that answers your your kind of like uh question there and i think i'm gonna wrap it up for today everyone and if you've got any more questions uh feel free to put them in the ama series i'm

gonna answer them in the next ama uh which will be in two weeks from now but yes thank you everyone for joining today's ama this has been recorded so i'll be uploading this to youtube tomorrow tomorrow my time so yeah thank you everyone again for joining and i'll catch you in the discord channel you