The Daily Gwei AMA Series #6 - 24th of July, 2021

Transcript

all right welcome everyone to the sixth daily way ama uh this is a new format i'm using the discord stage feature this week uh because the other uh the normal voice channel was limited to 25 people so the stage feature doesn't have a limit um as far as i know uh but that will mean that you'll need to raise your hand if you want to ask a question uh there should be a button uh down the bottom of your discord client where you can kind of hit that and and you'll be able to ask a question uh so this will be recorded as well and uploaded to youtube within 24 hours so if you missed that i'll have to leave or halfway through or whatever uh it'll be on there for you to kind of listen in and it'll be time stamped as well uh but yeah it is being recorded uh so

the way this works is i'll go through the question a question on the list that i that i noted down from the ama series channel here and then i'll let someone from the audience ask a question if no one wants to ask a question i'll just keep moving through the list that i have here there's a fair few questions to get through so plenty of stuff there um but yeah let's get started with a question from that sheet and this first question is actually quite fun from skillzy who says hey you mentioned often about eth going to 100 000 in the long term how have you arrived that figure are you assuming most of the value will accrue from feeburn due to protocol usage what other factors do you see contributing to the eighth value now i gave this kind of i guess number three

this number out there a little while ago on the refuel and i wrote a newsletter about this called the 8th super cycle essentially i i tend to look less maybe at the number and more at the market cap when i'm kind of like judging these things so at current issuance if eth went to a market capital uh sorry a price of a hundred thousand dollars uh sorry a current supply uh if eight went to a price of about a hundred thousand dollars the market cap would be 11 trillion dollars or something like that which would i think roughly is the market cap of gold today not that i think that that's a comparison that we should be making um with eth but it's just to give a kind of context around the fact that this isn't something that's like super far-fetched and could never get their sort of thing

um so that's kind of like how i uh i kind of have a mental model for it but how i arrived at this figure this this 100 000 figure is that basically uh i i looked at long term like i'm i'm talking like 10 years plus here and i thought to myself okay well by that point uh there's going to have been heaps and heaps of eth being burned with eip1559 obviously like that that's like 10 years worth of eighth being burned uh the network uh you know i believe the network's going to keep getting more usage it's going to keep growing we're going to keep getting more and more kind of like protocols are building on top which brings in more users and i i mean in 10 years it's probably just going to be like a layer 2 world where we have all these layer twos using layer one as

a security layer and then you know the fees being paid on there will be probably billions of dollars uh you know a day or a week or something like that something crazy and obviously this assumes that ethereum is going to be the backbone of this new kind of decentralized internet we're trying to build with d5 being there you know the nft metaverse stuff the the dow stuff like all that sort of stuff this is obviously making a big assumption about ethereum kind of winning all that and becoming or at least remaining the biggest and most dominant smart contract chain so of course you know this isn't a guarantee or anything like that um but yeah that's definitely one part of it that's the fee burn but also the fact that uh you know after the merge goes through the issuance of of the new issuance is dropping by about 90

what it is today and even if like 30 million eighth is staked or something like that or even more than that the issuance doesn't really go very high i mean i think 30 million is going to be like a soft uh limit on on staking where more eat can be staked but there'll be like an active steak uh and an active steak the active steak will be you know 30 million or whatever it is and then the inactive steak will will kind of rotate through which means the issuance should only be around one percent now one percent issuance on the backdrop of one five five nine um burning you know lots and lots of eighth because the fees are still going to be quite high on layer one i think for the foreseeable future means that we could still see a net deflationary eighth as well so yeah

those are like obviously two of the main factors i consider but then there's there's all the other kind of stuff that people use either for right like eighth being used as collateral within d5 i think that's going to keep growing that uh definitely oscillates goes up and down but the general trend over the last you know one to two years especially has been on an upward trajectory as measured in eighth not even just measured in usd obviously if you measure it in usd it goes up with the eth price going up but denominating it in eighth and seeing that that's growing is really really positive i think more and more is going to get staked which means it obviously can't be sold if it's staked and things like that as well i think uh people are going to buy eighth as a story of value i think a lot

of people are already doing that they may stake it they may not um you know there's another question about staking that uh on the list here i'll get to that later but essentially that plays a big part into it as well um and you know i guess using eth as a medium of exchange i don't think ethers is a good currency because obviously it's not very stable it's not really made to be a currency but i think it's going to be used as a medium of exchange for the foreseeable future as well with things like nfts and other kind of stuff like that and then you can kind of kind of add in all the use cases we haven't even thought of yet there's so many things that i i think that no one has really thought of at this point in time and i think as we progress through

ethereum's life cycle that's going to become more more at the forefront which i think is really exciting as well so yeah that figure obviously seems like a very uh i guess like far-fetched one today right hundred thousand dollars eleven trillion dollar market cap when at the moment eighth is what uh two thousand one hundred and something dollars and the market cap's 250 billion and at the all-time high it was only half a trillion but the thing is is when you when you kind of look in the short to medium term yeah it may seem like a stretch but you look long term and you just think like how long something like 10 years is in the crypto space i mean it's an eternity 10 years ago was 2011 bitcoin was was still worth basically nothing in 2011. um if you want to use a comparison

here um and then you know uh eth was uh was 30 cents in in 2014 2015 from the ico uh and you know now look at what the price is and as i said looking at the market cast probably the better thing here but price is just easier to kind of um kind of reason about right now so that's kind of how i arrived at that figure um there's going to be lots of volatility along the way it's not going to go straight there obviously i mean we've already seen that eth can uh and all of crypto can still fall very very quickly but if you know you're holding further like the longer term and i'm talking like you know 10 years plus sort of thing or even with like five to ten years i think that that price is definitely very possible if all those things play out for

ethereum now i'm not going to say that it's a given and that we're definitely going there there's no way that it can't happen uh it relies on a lot of um the fundamentals remaining strong but i mean i'm sure a lot of you are the same as me where you do really believe that the fundamentals are going to remain are really strong for ethereum but it's still a risk at the end of the day and and those are the assumptions that i'm making to arrive at that price point so hopefully that answers your question skillzy i'll take on from the audience if anyone has one as a reminder you just need to raise your hand down the bottom if you want to uh if you want to speak to ask a question if not um i can move on there we go someone's uh wants to speak uh you should be able to

speak apollo if you accept the invite there we go all right hello can you hear me yeah yeah go for it um yeah i just wanted to know following up a little bit on that last question do you see in the future like long term um like the kind of crypto culture nft space um outgrowing the d5 space or do you think that like the main use of of um you know crypto is is financial services i still think that financial services are going to be the biggest thing um that i guess like blockchains do in general but i don't think it's going to be at the forefront i think it's going to be more in the background where uh it acts as like the plumbing the infrastructure and then something like

nfts or other kind of like use cases like that are at the forefront which essentially uh uh you know bring in way more users than d5 would alone and obviously nfts tap into d5 infrastructure you know for trading of different kind of like uh uh nft gamer so game items for example or different nfts and things like that um and not just that like using your nfts as collateral all this sort of stuff um so yeah i definitely think that uh while you know d5 is going to remain the biggest kind of money you know money suck for ethereum it's going to bring in the most amount of money it's going to be in the background and i think the nfts are going to bring in the most amount of of people because at the end of the day nfts you know i mean gaming entertainment

culture like all that is way more fun than uh than finance like you know d5 is really fun and we all love playing you know we we look at d5 as a game but the vast majority of people don't really care for that sort of stuff and we've already seen it play out where nfts are bringing in so many new people so much more new people than than d5 did and i think nfts are also just inherently uh easier to understand as well for people rather than something like dfi which introduces all these um concepts of these financial concepts that people may not be used to uh so yeah definitely think that they're very complementary but yeah the way i see it defy in the back nfts and other kind of use similar use cases in the front yeah for sure great thank you awesome

thanks cool i'll move on to one from the list now so one here from dom who says what is the point oh this is this is topical what is the point of splitting a single nft into multiple uh parts uh for nf is it for nft liquidity doesn't breaking up and nft into multiple fungible parts defeat the purpose of having a single non-fungible unit at this point why choose to mint an nft instead of an erc20 token so i think the main reason that people like splitting up nfts or at least people are working on doing this sort of stuff uh is for liquidity um but there's i think there's two reasons actually there's a liquidity kind of reason because you obviously want to give liquidity to to nfts because uh inherently they aren't liquid because they're unique so in order to bring

liquidity to them you have to either split them up or you can put them inside like an index product like what nftx does and then people can trade the index product but that's a it's still like you know not perfect like neither of these things are perfect and then the other thing is basically allowing people to have a share of this nft and like fractionalize a piece of art for example where you have like 100 pieces of this art and then everyone gets their own piece of it i don't know like how how good that use case is or how like viable it is like for me it kind of you know when i say that i'm like okay well what happens if one of those 100 people lose their fraction of the nft does that mean that the nft can never be made whole again

does that mean it's only like 99 out of 100 and you're always missing that one piece uh does that give the actual whole nft less value because of that and things like that i don't know i i feel like fractionalizing is a cool concept i i don't know what it's going to look like in the long term um and i don't play i pay enough attention to the nft space to know all the projects working on it i think there's something called fractional and as i mentioned there's nftx um but yeah generally i think that uh it's it's for those two reasons and uh you know you ask why at this point why choose to miss an nft instead of an erc20 token well because when you fractionalize it uh you can put it back together right and given that uh you know assuming that no

one has lost any pieces to it you you know if you split it up into like 10 pieces for example and then you put it back together or someone wants to collect it you know the way i think about it is sort of like um xodia from yu-gi-oh exodia was this like powerful um set of cards and you go you have to have all five cards to summon exodia to the board um in the in the trading card game and uh you know and that's kind of how i view these nfts where you can split it up into like 10 different pieces and then you have to have all 10 to recreate the nft or to essentially you know sell it as one so i think that uh uh you know it still serves its purpose but um yeah i i just think that it's

going to be an open question to see how how viable this is going forward uh anyone i want to ask a question you just have to raise your hand if not i'll keep moving through the list awesome next one comes from notenode099 who asked something about bitcoin crowdfunding who and and they say say i donated for a startup in bitcoin as public goods would they remain a public good would that company get good bitcoin grants uh this year and uh if they were kind of like um uh invested in by a vc and and move forward without giving anything back to the community i'm basically asking what has been the

general trend so far confused by this term public goods so i think what's being asked here is essentially you know what constitutes a public good and if these public if if this thing in this project takes money from like vcs or issues a token or anything are they still a public good so the way i view public goods is essentially open source you know software media education all that sort of stuff that doesn't have a token doesn't have outside investment and it's essentially like free like i would consider the daily gray to be a public good right because i don't charge for anything on the daily way i don't have a token obviously um none of that sort of stuff it's all completely free for anyone in the world to access um if they if they wanted to uh and then the same goes for lots of things like

open source software out there that that that's free they don't have any like kind of premium uh features on there it's just essentially you can use this software if you download it um or if you know you might be using it without even knowing it because it's sitting in the background of your favorite defy apps things like that um or there's like a educational drive so say you know some uh some group in like a third world country is trying to increase their standing uh you know in society and trying to better themselves and they want to help people and they want to educate people but they need money to do so uh they could you know do that on um on git coin grants as well so that's kind of like how i view public goods i really and this is something i've actually

discussed with um some people some other people um extensively in the past about like should uh a project that has a token or has taken outside investment be able to be on bitcoin grants and be part of the matching round and i don't think they should uh there was a bit of controversy around this there were a few projects that were on there that had tokens or had recently raised you know funding or whatever and that was still part of the matching round and now what you can do is you can actually say oh no i don't want to be part of the matching round anymore and that basically takes you out of the pool and and you know the money goes to the to the actual public goods so yeah i don't consider those public goods anymore like you can be public goods and

then transition away from that once you take outside investment or uh you know issue a token and some or something like that i mean this is exactly what bankless did they uh they were part of the matching rounds up until the latest round and then they had issued their token as part of the bankless deal and then they removed themselves from the current matching round which i i really respected them doing that because it would have you know it doesn't really make sense for them to to be in the matching round once they have a token and and all that sort of stuff there so yeah hopefully that answers answer your question around that but this is definitely something that gets discussed a lot in the git coin community and you know git coin itself doesn't want to be like an arbiter of this doesn't want to

remove people from the platform um based on their own opinions this is why i guess like they just they're trying to decentralize and why i actually think that bitcoin decentralizing is incredibly important if it's one of the things that makes the most sense to decentralize because you really don't want any central kind of party deciding who should get money if you're trying to be a public goods platform it should be up to the community they should debate it they should figure out who deserve you know deserves the money and who's actually a public good rather than the you know the bitcoin core team doing it for example so yeah hopefully that answers the question there um you know i'm just going to keep going through the list if you do want to answer uh sorry ask a question just raise your hand down the bottom it'll come up here

on my screen and i'll be able to to kind of like invite you in to ask a question um so yeah i'll just keep moving through the list now so i one here from lloyd banksy who says question for you about mev and staking i've heard that staking providers will be able to extract and perhaps distribute mav to stakers on their platform could this additional yield ultimately disincentivize self-staking and lead to increased centralization short answer yes and this is something that's been discussed in the community uh uh a fair bit over the last you know i think few weeks or at least last few months while mmv has been a hot topic and the concept for those who may not be aware is essentially you have these staking pools right now the staking pools obviously are um uh are big rather there's like kraken

and binance and lido lighter is not the pool itself it distributes it to the different staking providers but you know you go through them and then you go into the different staking providers so there's all of that happening so um you know and then these staking pools can basically advertise and say okay well you know we're gonna have more mev than this other pool or well we can give you more mev than um you know you can you can get on by staking on your own sort of thing because they'll be using something like flashbots where they uh where is essentially like um being bribed to kind of like do this mav stuff and i've spoken about flashbots a lot before um so yes i do think it can lead to a disincentivization to self-stake for sure but on the flip side i think we're

already seeing that regardless of mev i think that unfortunately people will take the easiest path most people at least will take the easiest easiest path to staking and that is definitely using a provide a staking service provider especially if you don't have 30 tweets because you can't stake on your own unless you have 32 eth and you know there's decentralized services like rocketpool coming out and things like that but they're not live today or anything like that yeah and that you know who knows if they're even gonna work in production we just don't know yet so you're already seeing a lot of um of the early state going to these providers uh and you know these providers obviously can't capture the mev yet because there's no activity on the beacon oh sorry on the f2 network because the merge hasn't happened

but once that happens it's going to be very interesting to see if people do in fact move their stake to another provider because that provider will basically say hey i can offer you a higher yield and the end user doesn't need to know that higher yield is coming from mav they just need to see that okay well i can get a higher yield over here i'm going to move my staking to this provider here so uh and this kind of like falls into another thing that i've discussed before and i've written a newsletter about this where i basically said that i basically learned to love centralized staking services because uh you you looking at just like the raw staking data and saying okay well you know kraken accounts for like i don't think it's 20 i think it's less than maybe 15 of stake right now

um that means that you know they're a huge chunk of the network and that's a risk but you have to kind of look at the the nuanced view sorry take the nuanced view here and see the fact that yes kraken is obviously a centralized exchange just to have a big stake but but their motivation or at least their incentives are to make sure that that stake is is doing the right thing because that is not their e that is their customers eat uh same with every other exchange same with every other staking service provider and actually the staking service providers are even at greater risk because they would stand to lose a lot of business if they screwed up we've already seen uh some of the providers screw up where they get slashed because they double sign or they get rugged because uh some employee

was like rogue or something like that um so i i just think that the rules of the network work um you know very well to keep people in check and keep people doing the right thing but when it becomes a concern is when you know nation states get involved where they could coerce a bunch of centralized providers to censoring transactions on the network or essentially uh taking over the network and doing uh doing other other kind of um attacks on it and then that falls back to us to the last layer of defense we have which is the social layout where we could potentially fork out the uh the attackers um or i guess like the you know the the um the providers trying to screw with the network and that would be very messy like i'm not saying it would be easy but that is kind

of like a layer of defense there as well so yeah hopefully that answers the question and gives you more context around it i think we're just gonna have to wait and see once the merge goes through and activity is um you know happening uh with proof-of-stake uh validating the network and then we can kind of see what this uh how it changes over time i think by the by that point we're going to have like a a pretty healthy view already of um what the staking ecosystem looks like and then if it change like and then if we watch it over 12 months and it changes drastically based on the um the mev kind of like footprint of each uh of each um staking provider or at least the the yield that they're getting from mav then we'll have like a better idea of what it looks like so yeah

i'm gonna leave it at that i've got one from knowledge fi i just invited you to speak uh come up you just gotta click accept on your end yeah there you go oh okay hi um i think on one of your recent refuels you talk about how not wanting bitcoin exposure i think it was the one uh where you talk about the the bed token that bankless released i as much as i like to think that it is a pet rock um i was a bit taken aback by that um i just wanted to get an idea from you as to

you know we all know it doesn't really have much utility on its own but is there a specific reason as to why that's the case from your side or you know what's what's the reason behind not wanting any exposure because you know our market is quite dictated by that so i just wanted to get an idea from you uh that's all yeah i mean that's it's a fair question for sure and it's a good question um so i i mean i haven't held bitcoin since before it's probably 2017 the last time i held bitcoin um and i mean there's a lot of reasons for it i think the number one reason is simply that i'm just like way more bullish on ether than anything and my portfolio generally consists of like very heavy eath with some defy tokens and stuff in there but i'm uh

generally like a utility maximalist i i don't i mean i know i can do things with my bitcoin on ethereum now with d5 but if i'm gonna do that why not just use eighth right like eighth is a trustless um collateral asset on ethereum i don't have to trust any kind of like uh central bridge like wrapped bitcoin or whatever to kind of secure that so you know that that kind of use case is is settled by eighth for me i think that eth has got a much brighter future than bitcoin or like if the ethereum network has a much brighter future than bitcoin i think btc um is going to underperform eighth over over the long term and it has you know over i guess like if you even if you zoom out like as long as you want from like when a first came out it's underperformed

eighth the whole time yes there's been periods of time where eth got crushed against bitcoin obviously during 2018 and 2019 but that was a different very different period of time compared to now and since the bottom in march of 2020 ethers has greatly outperformed uh bitcoin by it's like over 3x now um which which i i which is a pretty big deal i think but yeah i mean it's funny because like i don't think holding bitcoin is a bad thing i do think it's going to go up over time and you know i don't i don't think that uh you know you're going to lose out by by buying into it or holding it instead of 8th but for me and being so involved within the ethereum ecosystem uh i don't consider eth to be any more risky than holding btc to be honest i

know some people do and they say okay well holding eighth has a lot of execution risk because you have you have to assume that the um the merge is going to go right you have to assume that people are going to adopt these things and other networks aren't going to get um you know usage and aren't going to eat into ethereum's kind of lunch but i actually think that ethereum is eating into bitcoin's lunch because at the end of the day every asset is competing with every other asset for capital there's only you know if i buy eighth it means i didn't buy something else so if someone's buying ether that means they didn't buy bitcoin uh and you know they maybe they went 50 50 but it means that they they didn't put 100 of their money into bitcoin so from that perspective as well i just

think that there's going to be much more people buying into eath than there is into bitcoin i think that ethereum is the much more interesting ecosystem and the utility of ethereum is going to feed directly into its value even more than it does today in a one five five nine world so my bet on eth is really a bet on the ethereum network whereas if you're betting on the btc asset you're not betting on the bitcoin network because the bitcoin network doesn't do anything to drive value to bitcoin bitcoin gets its value from a bunch of narratives and i guess more of a religious fervor i i the way at least that's the way i i see it uh and i just don't fall into the bucket that bucket of like um you know someone who wants to hold an asset like that i would just prefer to hold ethereum

sorry held eighth because of the utility so um hopefully that's like a compressed version and then answers answers your question i mean i can go on for a long time about every issue that i have with bitcoin and why i actually embarrass on bitcoin in the long term um i don't know if you wanted me to go into that a little bit ah absolutely yeah okay yeah i mean my main concern with bitcoin is that i don't think the 21 million cap is sustainable because the way bitcoin works is that it has three opposing narratives so and these narratives do not um uh do not work with each other and they're all like the main narratives the bitcoin is love to use so the the the three narratives are okay well bitcoins digital gold you can you

know hold uh holding it is using it you can just lock it away and not do anything with it and you'll be fine okay that's that's fine but then the second narrative is oh okay well bitcoin's security budget dwindles over time because the block reward harbs every four years but that'll you know that security budget will be made up for in fees on the bitcoin network well okay um where are those fees going to come from and then people will say oh it'll be because there'll be so much transactional demand on the bitcoin network uh that um you know there'll be lots of fees on it well i mean why would people transact on bitcoin if if there's nothing to do on the bitcoin network like there's there's no reason to transact on it and you're also saying that you want people to hold it as digital gold

um those things are at odds with each other and we're already seeing this play out where bitcoin's fair revenue is much lower than even just apps on ethereum like ethereum's obviously you know probably 10 20 times more than bitcoin at this stage but also other protocols like rven uniswap and and some of the big d5 protocols they're ahead of bitcoin in fee revenue as well so those two narratives are at odds with each other and the third one is that they say okay well you know bitcoin's gonna scale via the lightning network and everyone's gonna transact on the lightning network uh and that's gonna be free and cheap or whatever for people to use and it's gonna be fast and people are gonna use it as money it's like okay well again um uh using it as money means that it's it's it's not gonna be a good

a digital goal because it has a lot of velocity if a lot of people are using it um and and you know generally things that have high velocity aren't aren't going to increase in value that much um you know gold isn't used as money today and and i i know that i don't really like the digital gold comparison but i mean the gold comparison but that's what they do all the time so i just think that that third narrative is at odds but also it's a it's at odds because of the fact that well if everyone's transacting on the lightning network then where's the fear of a new coming from for layer one because the way the layer two on on on bitcoin works if it's different to uh a lightning network is essentially a state channel system it's not a roll-up or anything like that whereas ethereum

roll-ups are very different because they are not just doing you know vanilla transfers like a state channel would or just like um token to token transfers or whatever they're also doing smart contracts so they have to post data to the chain and that requires paying fees but with with bitcoin uh with lightning network it's you still i think you still have to post transactions to the main chain there's exiting and entering but like once you're in that layer that once you're in the lighting network there's no reason to go back to layer one so where's the feed that revenue gonna come from and honestly most of the fear revenue for bitcoin most if not all of it today is coming from exchange arbitrage well if exchange if exchanges integrate lightning network or exchanges integrate um

other kind of layer 2 protocols or even just like permission things like liquid well then the um the arbitrage i guess um bots and and traders aren't going to use layer 1 bitcoin either they're going to use these layer 2 things so where does the fee revenue for layer 1 come from where does the security budget for bitcoin come from how does bitcoin defend itself against the tax once the block reward isn't enough to keep miners happy and then the whole kind of like system breaks down now you may think this is 100 years out because the the block subsidy goes for 100 years but it's not it's it's only two or three more harvenings away which is eight to 12 years before the block reward gets so small that it becomes an actual existential security risk for bitcoin

if the miners aren't incentivized enough to stay online because they have real costs uh and they have very expensive costs and they can't they need enough to be able to cover those costs and if they're not getting that from the block reward they need to get it from the fees but they're not going to get it from the fees i just don't see where that fee revenue is going to come from so that is my kind of like bear case for bitcoin uh and i i think that bitcoin is like to think that the network doesn't matter but the network is the thing securing btc there is no way that btc can have value if the network is getting attacked and the network is getting you know transactions are getting censored or people are trying to change the rules or double spend or whatever um and i just feel like in that scenario

btc would fall but and and and other than that i've also got one other thesis that i um that i think i've shared before where if ethereum flips bitcoin in market cap bitcoin loses its uh narrative of being number one it loses its narrative of being the most valuable crypto and then people kind of start to ask the question and they go well why would i hold bitcoin now like it's just gonna get flipped again because what's stopping the third place from flipping bitcoin and putting bitcoin in third place what's stopping bitcoin from falling out of the top 10. like obviously there are bullish um cases for bitcoin people and people say okay well you know there's all these kind of um things that you hold btc for and everything and i get that but i just don't think the total adjustable market is big

enough for for for btc for ethereum not to flip it because if you kind of look at who beat what btc kind of like appeals to and the type of person it appeals to it's definitely more of the the the gold bug type and those types of people are like an extreme minority they may they may seem like the majority because they have like a large presence in crypto but i think that's just momentum from the fact that bitcoin came first and existed as pretty much unchallenged until ethereum came along and i would actually argue that bitcoin remained unchallenged until 2017 when ethereum had its first run and the flipping started as a narrative um so it had you know basically eight years of dominance and then that dominance fell off a cliff and the narrative changes and then if ethereum flews bitcoin the narrative is

going to change again and it's going to be an absolutely massive shift and it's not just going to be those within crypto it's going to be the mainstream the mainstream is going to be like well you know what why would i buy bitcoin like it's not number one um you know all these kind of like narratives that they that they spoke about that it's the most valuable crypto that everything else is a coin compared to btc well how can that be true if ethereum is number one so those are my two main bare thesis for bitcoin and i think that uh they're very distinct one of the one of it's got to do with the network the other one's got to do with the narrative of the asset itself so hopefully that clears it all up for you as to why i don't hold any

bitcoin no thanks for that yeah i think i think the second one the second one is something that i think about every now and again as well as to that narrative of being number one the mainstream ruffle like if if they're flipping eventually does happen which i think it will but it is yeah and you hit the nail there yeah yeah i i think you know narratives are such a powerful force within crypto and people still underestimate just how powerful they are and how much they they count and at the end of the day i think i mean i believe that ethereum flipping bitcoin will not be the death of bitcoin but it will basically mean that bitcoin could potentially drop even lower than second place because

uh i just don't see a reason why people would buy in in that case so many narratives will break down and then all the bitcoin is trying to trying to put forth these narratives would just it would fall on deaf ears because people would be like well you know everything you said prior everything you said about bitcoin remaining number one and being the most valuable crypto asset well that's no longer true so how do i know you're not full of now so yeah that's kind of like how i view it awesome thanks awesome thanks mate cool cool um yeah if you want you can get off stage if you want as well um i think yeah there we go awesome cool all right next question on the on the sheet here from defy underscore default um what is the etiquette or

standard operating procedure for using an ens domain for your main ethereum wallet and doxing yourself do people separate their funds from their identity if you did that wouldn't you lose most of the opportunity you've been talking about regarding your ether dress being your credibility in the community since most of the activity would be on your hidden address so essentially you want to keep your i guess your ens address the one you know your public ens address uh separate to your identity because of the fact that unless you don't really care i mean some people don't care that their financial transactions are tracked and everyone knows what they're doing but generally you do want to keep it separate if you don't want that happening so i mean i i try to separate things as much as i can as well but unfortunately you know it's kind of hard

as well because there are tools that can can link up accounts and things like that so definitely and if you make a mistake just once like if you send uh funds to your you know ens your public ens address uh from your private address accidentally because you just just slipped your mind then unfortunately uh you know it's there forever on chain and those are forever linked and you have to like wash it again if you want to kind of hide yourself um so yeah that's what i would say would be the standard operating procedure just trying to keep it as separate as possible if you need to get funds to it i guess what people do is they either go through something like tornado cash or they'll just wash the funds through a centralized exchange because with a centralized exchange your funds go into a shared pool

and then when you withdraw them it comes out of that shared pool there are still ways to track that down but it's much much harder to do that but then the centralized exchange obviously knows um you know who you are and can tie that together it just protects you from everyone else knowing about that so that's kind of like the the etiquette i guess in the standard operating procedure there and then to your second point um you know wouldn't it kind of cause you to lose most of the opportunity uh with your credibility within the community um if if all of your activities on your hidden ethereum address well i mean yes and no it just depends like at the end of the day you can have like your really cool nfts and your public address you know if you don't mind people knowing uh you know that uh that you have those

nfts obviously you want to show them off then you have them on your public ens uh you know all the other stuff that you kind of do i don't think anyone really judges people on um much of their on-chain activity unless you're like a whale for example i know there's one whale out there that was that was like doing a lot of d5 farming early on people were watching them i think you know me and you like our kind of like activity's probably not very interesting i think whale activity is interesting but generally you know most people's activity is just like kind of standard stuff so people don't really look at that for credibility or anything and i know there was this thing called the djn score from the atomic blue decentralized exchange aggregator that was cool as well but i i don't know how much that counts for it's more of

just like some i guess light social credit at the end of the day i don't think it really counted for much um you know i i guess like um sometimes maybe uh different projects will ask to see you know your address and see how degen you are how much activity you've done but i don't you know if you say to them i don't want to reveal it because of privacy reasons i i don't think they'd push on on that either so you can still build up credibility um and still build up kind of like your standing i think you can do that through nfts mostly to be honest i don't think you have to do that through um defy activity that you don't want people knowing about or whatever i think you just having nfts on your public ens address is enough to kind of i guess build up

that credibility and things like that but for me the main use case of ens uh at least a public ens address is to be able to get people to send you you know things like easily send you uh uh currencies for payments or whatever if they want to tip you if they want to buy something off you if they want to send you an nft that's kind of like what i look at it for i wouldn't use my public um e s address for like all of the default activities that i do or anything like that or any stuff that i want to keep private for obvious reasons so hopefully that answers uh your question there i'll take one from the audience if anyone has one just be sure to raise your hand if not i'll keep moving to the list cool all right on to uh one that i don't

think i'm gonna be able to answer this unfortunately but i just wanted to mention it anyway from aegon tag who said can you please shed some light on proof of history and its pros and cons i don't know really anything about proof of history i know that solana uses it but i haven't seen anyone do an unbiased take on it i've read some of the solana stuff and i usually whenever i read something coming from a project i usually look for like a contrarian voice or someone um analyzing something that uh from outside the outside the core team or whatever because obviously the core team has a bias not to point out the weaknesses in their own technology so i don't know too much about proof of history but uh i'm sure you can like google it and kind of like find uh different explanations of it

on there but and if you do find something that is uh you know not not biased like it's done by someone outside of the uh the um the core team because i know as i said solana uses this i'd be interested in reading that but unfortunately i don't really have any uh kind of knowledge of proof of history myself all right so three questions here from patrick so his first one is how do you handle your emotions in a market where it seems that prices are going down almost daily uh so this i mean i've spoken about this on the refuel quite a quite a number of times i think about how you know it's it's kind of like if you're watching the markets all the time your mind gets tricked into thinking that

the current state of the market is what it's always been and what it's always going to be i know that sounds a bit counterintuitive but if you're looking at a chart say you're looking at like the one hour chart and you see the price going down on the one hour chart and then you've got it zoomed in to a point where you can't actually see much of what's going on in the chart you just see like a a glimpse into like the last 24 hours well that's not really telling you much but your mind and i don't know if this happens to everyone else but for me what my mind tells me and it tricks me it goes oh it looks at this chart and it says oh wow the price of eight is doing like really poorly right now because the hour chart is trending down

over the last 24 hours but then you know you zoom out say you zoom out to like the daily chart and you look at like the last few months and then you see okay well no the 8th price is doing amazingly over the last few months uh why is my brain thinking like this and i think that's definitely a major factor i think that uh you know it's it's also come it also compounds when you go on something like twitter and then you've got all these people posting on twitter you know there's co-posting as i like to call it uh all those like jokes being made there's like bear memes being posted there's bears like fighting and saying you know it's all going to zero because uh they you know they're trying to push a narrative or whatever and that can definitely be uh tough to deal with depending on how

much you expose yourself to but at the end of the day i i think the i mean the way i handle my emotions with it is like if the price is going like down consistently and and like it keeps dumping and the market feels very bearish if i want to avoid the the emotions attached with that i'll just close the charts and won't really look at the price it's easier said than done don't get me wrong and it's very hard to avoid price talk because it's all over twitter whenever the market tanks like i mean even if the market only goes down like five percent which is a normal day in crypto immediately on twitter everyone's bear posting right everyone's like coping everyone's posting all these memes and and just it's just a mess and the same happens on the way up too but on the way up like everyone's happy

because most people aren't actually short crypto most people aren't bears uh they're they're balls like the long term balls so of course you're going to be really happy whenever the price is going up so you've kind of got these these kind of like two extremes that the emotions follow the volatility where you have like a you feel really when the price is going down uh really quickly but then you feel ecstatic and euphoric when it's going up and really the way to me to manage the emotions or at least the best way i've found is just to zoom out just to think about the long term always unless you're a trader then you know that's a whole other kettle of fish you have to kind of manage your short-term emotions because if you don't you're a bad trader um and i actually think that all of all the traders i've seen the

ones that manage their emotions the best are the best traders um because you you cannot be swayed by these kind of like uh i guess um extreme emotions you can't let your emotions dictate your trades you know in such a way where it makes you lose out over the long run so yeah i guess the way i manage to just focus on the long term i mean i preach that pretty much all the time in on the refuel is that always focused on the long term and i know that that doesn't apply to every asset there are some assets that you know they go down for a reason because the project's failing or uh you know i mean the the team rugged or something like that or you know people aren't seeing any kind of value in it this doesn't apply to every asset out

there but you know i think it applies to something like aid for sure i think that it's got such a bright future and you know the short-term kind of like bearish action is just that it's short-term i don't think it's long-term obviously not investment advice but like come on i haven't sold any of my eighth i don't plan to sell any my eighth i keep stacking it all the time because i do think that that eth is going to appreciate over time um you know over the long term so that's what i always focus on and you know watching you know if you if you kind of like watch the refill every day you'll see like all the fundamental stuff going on as well and the fundamental developments within ethereum is what can keep you bullish even during bear markets i mean that's what kept a lot of us now during 2018

and 2019 bullish on ethereum is the fact that all these developments were happening and we we came to terms with the fact that the price was going to be bearish for a while because it just wasn't reacting to anything and it sucked don't get me wrong it was it was really shitty like some of us i mean i remember actually at the start of 2020 uh eth had had a terrible 2019 like it actually opened at 130 and closed at like 135 on the year and that was against usd but against bitcoin it actually got slaughtered bitcoin doubled i think in 2019 from its bottom eth obviously didn't so the ratio went down and i remember saying to a bunch of friends i think it was the first or second of january 2020 i said guys like you know i'm i wasn't at my wit's end but i was like this just

it was like i i was just venting i was like this is so depressing like when's 8th actually going to do anything like the fundamentals are so strong the future for ethereum is so bright like how can people not see this and then you saw what happened in 2020 and the rest is history from there in 2021 eth had an amazing 2020 amazing 2021 and it's still you know very very bullish i think over the long term and not just the asset the ethereum network had a had a very bullish year too so even for seasoned people like me i can get swayed by the short-term stuff as well from time to time but it's just like a muscle it's like anything else you have to keep training it you have to put yourself in the mindset of thinking long-term always and and that's what i try to kind of like i

preach all the time i i i you know and i do that for my own sanity as well to kind of like ground myself um at the end of the day so hopefully that answers your first question patrick uh your second one is what are the biggest upsides and the biggest downsides of being an influencer so i think i i answered this on the last ama a little bit maybe it was a bit of a different question the biggest upsides i'll start with are essentially well i mean there's a few different ones so where do i start i think the biggest upside is the fact that i achieved a goal that i set out for myself back in 2018 so i in 2018 the beginning of 2018 i kind of said to myself okay well i've been here before because i actually had gotten into

bitcoin in 2013 and exited bitcoin in 2014 because the market crashed and i didn't stick around that was the worst decision i ever made because i missed ethereum until early 2017. and then i wrote the bull market up of course then and then the bear market hit again in 2018 and i was like okay well i love this technology i'm so passionate about it i'm not going to leave again because i know how bad that turned out for me last time and i set myself a goal and and that goal was basically i want to become one of the most well-known people within the ethereum community and i want to educate everyone about ethereum and i think i've achieved that at this point so that was one of the biggest upsides for me is the fact that i have never felt so rewarded about anything i've done in my life

um you know and becoming an influencer obviously goes hand in hand in that so that that was just like on a personal kind of um a deep personal level there the second biggest thing is the fact that i can walk into a conference i mean i can't go to conferences lately because of covert but during uh the second half of 2019 i walked into a co at any conference and pretty much everyone knew me and it was just so easy to talk to everyone because of that it was the ultimate icebreaker uh like i didn't even have to kind of like introduce myself or anything we you know everyone everyone knew me already and it was just like so awesome to meet everyone in real life and them just like thank me for my work on ether back then i hadn't started the delegate yet and just like get to talk to all

these people that were listening to the ether podcast for uh for the last year because we started that in 20 and in late 2018 and and and them just thanking me for like you know all my work and things like that so that was a it was a huge kind of another upside there is conferences and having all these friends um the third upside would be that my network is really large and i get to speak to all different types of people all the time uh whether that be project founders funds vcs um you know people working like just even ain't on people just working on things in the background i get to speak to different kind of like other other influencers other educators i mean i can pretty much speak to anyone i want to like um no no one no one ignores me and i'm not trying to

toot my own horn here but you know if you're someone who's unknown within the community and you send a random dm to someone well chances are they're not going to respond to it either because they uh they're too busy or they just don't see the value in it whereas i've never had that experience uh at least at least you know since i became like what i am in the community uh you know whoever i message pretty much gets back to me and i have a lot of people messaging me as well so there's that and i think the fourth thing um is the fact that i get access to uh a lot of early stage projects as well so just from like the investments investment side of things i get to participate in like as an angel investor in a lot of projects which um you know i i get to

participate because of the i guess the value i bring i get to help a lot of projects early on in their life cycle get to sit on calls the founders and help them a lot and obviously i get the financial upside from that but what that also allows me to do it allows me to make the daily grade for free and allows me to to put out all that content for free because i sustain myself through other means so those will be the four four biggest upsides and i know i've painted like a really rosy picture of being an influencer but you've asked for downsides and maybe i can just balance that rosy picture out with some of the downsides uh first and biggest downside is that you get a lot of like a lot of it there will be people that hate you for you know just being an influencer

straight up there will be people that always come at you no matter what you tweet um they'll misconstrue something that you said they'll take everything out of context they'll um be jealous of you they'll they'll um they'll judge you on whatever you do uh they'll try to cancel you at times as well which which definitely sucks so that would be the biggest downside is the fact that the you know you have a tension and that attention can can manifest itself in in lots of toxicity and you just have to learn to deal with that you have to grow a thick skin now i'm lucky being an australian i have an incredibly thick skin i do not let anything get to me um anymore i didn't used to i had to learn that i had to refine that especially as i as i um came to prominence more within

the community um but you know that would be the biggest downside i think uh and and that kind of like flows into other downsides being that as i said like people are going to try to cancel you and you know i know someone's saying like canceling or being canceled like that's become like a bit of a meme but what it essentially means is that people will find any reason to kind of like knock you down from where where you stand now i've i actually had this happen to me late last year where there was i'm not gonna go through the whole thing but there was like a scandal where i was just in a a telegram group with a bunch of other people there was like i think it was like 100 people in the telegram group i had been randomly invited it was a bunch of friends that i knew

and they they they made a token um and then like and then i made a comment in that telegram group like just joking like i made one comment uh where i said oh yeah we need people to dump on now some of you may be aware of this or some of you may not but that comment was a joke and ingest and everyone says this within crypto so obviously if you're in crypto in d5 you know that this is like a common joke people say you know dumping on people whatever blah blah but i made that comment and then it got leaked out of that group and people cancelled me for it at least tried to cancel me for it where they came at me and they said oh you're just like putting on a a front you know you're an influencer who's just like scanning people in the background

you know you i thought you were honest you're actually like a big scammer and i'll be honest that was one of the worst periods of my life that that week that that happened and it was it was incredibly hard to deal with all the negativity um and as i said like uh you know i have a thick skin but there's only so much someone can take and there was literally like i don't know if i i i've read like thousands of comments just literally calling me a scammer all this sort of stuff and the the funniest thing about that whole ordeal was that the token that was issued never actually traded no one lost or made money no one got scammed and i wasn't even involved with it i was just in the group because someone invited me to the group and i got airdropped some tokens which i

actually didn't do anything with i burned them straight away um so it was just like when you kind of like get into that scenario the fact that i was the poster child for this thing that i had really little or nothing to do with i was just invited to this telegram group and everyone in there was airdrop tokens um whereas the actual creators of the token i don't really didn't really see anything about them and i i was the poster boy because of the fact that i was the most well-known person in that group so those are the biggest downsides to to being an influencer and i think the third thing is that i have to be much more careful with what i say just to follow in from what i just said about the second point there in that you know as i said like anything

i say can be misconstrued or taken out of context and anything i say is going to be used against me like by you know thousands of people around the world a lot of them completely anonymous because they you know they're they're they're just on twitter or whatever and they're calling me out and they're like coming at me and attacking me and that's just something you have to deal with when when you're an influencer so uh yeah those those will be the biggest downsides but i think they kind of balance each other out and i think the upside actually vastly outweighs the downside and i tend to just block people that straight up troll me or try to insult me or call me a scammer these days because there's no point dealing with those sorts of people um so yeah hopefully uh that that answers that question uh patrick as well

and your third question here um was what do you think about expanding on your youtube channel like inviting knowledgeable people similar to what bankless is doing with a focus on a couple of niches you enjoy would love to learn more about i had thought about this for a while the reason why i haven't done it is because i actually think there's enough of that right now you mentioned bank list but there's like the defiant there's um defy dad there's i mean there's plenty of podcasts like uncommon core uh the blocks got a podcast i mean i'm not gonna go through all of them there's plenty of podcasts that interview all these kind of guests and i just don't think i'd be adding anything unique to the ecosystem by doing this i don't think you know interviewing the same d5 founder that every other project interviewed

and asking them the same questions is really going to add any value here but in saying that i do think there may be a gap and this is a gap that i've noticed recently where people aren't getting the information about the ethereum protocol itself from the developers working on it like the core devs the researchers and everything like that they may go on um you know some podcasts i've seen them on epicenter uncommon core bankless but it's it's kind of few and far between it is not like the core focus and it is more focused on like i guess the biggest things like one five five nine obviously uh eip1559 was was covered extensively on the various channels and the merge and stuff was like that but then you know you think about things like erp3074 which i've spoken about before or outside of eips you

think about the bleeding edge research you think about the stateless ethereum stuff like all these sorts of stuff is probably getting way less coverage than it deserves so maybe that's something i can do but another point to this is also scheduling issues given where i am in australia time zone issues are actually a big thing i remember um you know when um we were doing guest episodes on the ether podcast we basically decided that eric would just do it on his own because we were looking at all the times that people wanted to schedule in and none of them were when i could do it like it was always when i was sleeping because because uh here i sleep during us waking hours and um and and also like europe would be a way i would be asleep all the time i woke up so that's another thing as well

just the scheduling issues so and and kind of the way i view the daily way is just as i mean the refuel was like a daily diary for me essentially taking stock of what happened in the day um you know pushing through my knowledge to the rest of the ecosystem like that and kind of like you know no kind of like hype no i guess shilling or anything just kind of like full education there the ama same kind of deal just trying to educate where i can ask answer people's questions um and then a bunch of other things i do as well on that front so i don't know if i'll be doing guest things i think i'm just going to stick to the way it is for now but maybe there's a small niche i can fill with uh covering more ethereum core protocol stuff instead so yeah hopefully

that answers that question for you um if anyone has a question be sure to raise your hand uh if not i'm gonna keep moving through the list here all right next question is from spare who says could you explain something about polygon when they eventually launched um rollups if you're already on polygon how will it work well you need to bridge again plus any timeline when they will roll out roll ups in order to capitalize on the first mover advantage they have with the side chain so the roll ups initially when they roll them out will be separate things they won't be uh you know uh i guess replacing the side chain the

polygon pos chain so uh you might have like a polygon roll up that hosts uh you know all the similar apps to what the pos chain does but you'll have to bridge to that new roll up from either ethereum or the pos chain or whatever or anything like that so yes you will have to bridge um if it's launched separately but there is a thing where if they decide or if polygon decides to essentially replace the pos chain um with with the roll-up then there could be either a migration to do that or they could just take a snapshot of the state and kind of put it over which is which i think is is harder and it requires a lot of coordination so either way i think it would require it would have some kind of

disruption for users depending on what happened there i don't know when they're going to bring out their roll up stuff i know that they're working on it right now and the disclosure for everyone i'm an advisor to polygon um but yeah i know that they're working on it right now they're working on so many different things but essentially uh i i do believe that when it does come out it's not going to replace the pos chain from the get go it will definitely be a complimentary thing it'll be a standalone kind of roll up that developers can kind of build on and deploy to so um you know and i'm looking forward to seeing how that plays out but for me long term i think that layer two like and things like roll ups are the future i think that side chains have their place

in some use cases but um for things like d5 layer two is the future so i think polygon will have to kind of evolve and keep deploying uh new technology to keep up with that as well so yeah hopefully that answers your questions spare all right on to one from xerox birdo here who says vcs in general get a bad rep but are there any investment firms in crypto that come to mind that you have a lot of respect for either for being genuinely value additive or having a history of good early investments yeah i mean there's a few the obvious one is paradigm which a lot of people would know about they were the first investor in uni swap and you know they've invested in compound a bunch of other kind of like

the top d5 protocols and they've done a lot of investments lately they're in lido and dydx i think and stockwear and stuff like that so they're in a bunch of different things um so yeah i mean i've only heard good things about them uh you have framework ventures and parify which are both like d5 focused um framework is very early on chain link parify has been very early on a bunch of d5 protocols like rv and i think i believe synthetics uh you have um defiant which is under the three hours capital umbrella uh which is uh arthur xerox's fund um i've heard good things about them and then there's a bunch of other funds out there uh i'm not gonna name them all but you know those are the ones that come to mind and the funny thing is is that there's

actually two separate things here there's vcs and then there's funds so these things are usually structured in certain ways where if you're if you're a fund you may have like a shorter term mindset your lps or your limited partners who are giving you money to invest might want a return on investment within two years whereas in traditional kind of like vc firms they have like a longer outlook of five plus years at least so you have to kind of delineate here i would say that paradigm uh defiant parify framework are all uh longer term investors uh rather than short-term but there are a lot of short-term funds out there who um you know alameda research for example sbfs uh or ft uh sorry sbfs kind of fun um company there they're definitely on the short

uh short side of the short-term side of things they're not a vc they're a fund uh they buy and sell things all the time whether that be otc or you know invest in things early and then sell it when it's vesting and things like that but uh i you know i think if i had to pick one paradigm would probably be the top of the list there in terms of the vcs that uh add the most kind of value from what i've heard i mean it's funny i actually view paradigm as a research company first and a vc second because of the fact that they have so many uh like smart people working there putting out all these bleeding edge research and their all of their investments are heavily based on this research and where they think the ecosystem is going in the future and

they want to bet on the winners like obviously everyone wants to bet on the winners but paradigm from what i can see seems to bet on one uh project per category and they want to make sure that that project is the winner obviously you have uni swap as being the winner of the amm space there's a bunch of other investments they've done like lido winner of the um the staking uh uh space so far or at least the derivative staking space uh you have what is it starkware they believe that zlata's going to be one of the big winners if not the winner of the layer 2 race so that remains to be seen of course so you have a lot of that stuff going on so i would say paradigm is definitely number number one in terms of the most legit vcs within crypto and

especially within the ethereum space all right question here from t1 who asks according to l2 beat the tv our l2 beat for those who don't know is a new website that tracks layer 2 metrics and information about different layer 2s but essentially uh yeah what t1 is asking is that the tvl on l2s according to l2b has declined significantly over the last 90 days and is now back at the level it was in jan 2021. why hasn't the launch of optimism reversed this trend in your opinion so the reason why it fell and the reason why old tv or a tbl falls is because the price is full tvl is measured usually in asset prices um you know if the price of eighth falls then the tvl is going to fall if the price of all the other assets

fall tv is going to fall so that accounts for a major reason why you saw a lot of um a lot of the prices fall but also generally when the market turns bearish people will pull funds from uh from anywhere and they'll sell off funds so you may see people uh exit these l2s go to like a centralized exchange and sell their funds and kind of like um you know uh d-risk or whatever you want to call it um so that's those are the main reasons i believe and then you kind of ask here why hasn't the launch of optimism reversed this trend well i mean optimism has been live for what two weeks now um sorry with with uni swap being live on there unisop has 6 million tvl last time i checked they haven't done any huge marketing push they haven't got any bridges in just yet

they are keeping it low key it's in a very controlled environment there's only six assets for uh available for trade on there and it's limited to 50 000 transactions per day which isn't very much it's not even it hasn't hit that limit yet but there's just not many reasons to trade on there yet because of the fact that there's only six assets and there's no real good bridges in and gas fees on ethereum relatively cheap still um so i don't and it's only been like two weeks as i said with unisop being on optimism um so that's why i don't think it's reversed the trend and i've said on the refill plenty of times that i think the layer two rollout is going to be a um you know a gradual rollout over the like maybe a six to 18 month period is gonna we're gonna

see it gradually roll out and then eventually we'll hit like an inflection point where it just goes really quickly from there but i think the most important um i guess thing to get l2's adopted is onboarding and onboarding from centralized exchanges onboarding with direct fiat on ramps onboarding with um faster bridges or whatever there's there's a kind of a lot of stuff going on um uh like like that but we need to get them more deployed so basically just deploying the infrastructure to make sure that we can uh you know service these users so yeah hopefully that answers your question t1 all right another one from skillzy here who says given that i can stake my eighth easily and with good liquidity via lighter finance is it possible that we will move towards the majority of it

being staked in the long run post-merge i if you don't stake you were just missing out on yield might this impact the deflationary nature of eth so i discussed a little bit about this earlier um when someone asked about mav and staking but essentially this is a bet that paradigm is making i think where they basically said that uh they believe that all eth is going to be staked um because of the fact that yes i mean if you can get like a derivative of that eighth being staked like with sticking with lighter gives you st which essentially is a derivative that you can go do things with in d5 or whatever um then yes i do believe that most eth will probably be staked because why not in that kind of scenario but at the same time there's trust assumptions that are

getting introduced there for example if you're holding st instead of eth well that stf is backed by the eth that is staked with centralized providers so you're essentially taking on like a massive kind of um trust assumption there that uh those centralized providers are gonna behave correctly and that the value of your st will remain um you know in line with what you expect it to to be so there's that and then you know it impacting the deflationary nature of eth well as i explained earlier there's going to probably be like a soft cap on the amount of active stake of like 30 million so that will put a soft cap on the amount of issuance uh sorry actu that'll put like an actual hard cap on the amount of issuance that can be kind of issued each year and it's around one percent so i don't think so i don't

think it will um impact the deflationary nature and you also have to consider the fact that this kind of like offsets um the extra issuance because you're staking more eighth which means you're locking more eighth up which means there's less eighth for sale on the market which logically means that uh you know the price should trend up over time because of that as well because you're taking more out of out of um active kind of like circulation and active supply there so i think it works to balance itself out for sure so yeah hopefully that answers your questions skillsy all right one here from lucas who says i often hear people saying using l2 is as secure as using the main chain which is definitely wrong what are the trust assumptions potential attack vectors when using an optimistic roll-up like arbitrary

optimism so i think you're right in saying that you know people say that using l2 is just as secure as the main chain is is wrong to an extent i think that there's nuance here and the nuance is basically that l2s can be constructed in any number of different ways and what an l2 is or what a rollup is is it's essentially a new blockchain that inherits security from ethereum so instead of spitting up its own validator set or its own miners or whatever it's piggybacking off of ethereums and it's paying ethereum for the privilege mind you it has to actually secure itself to ethereum by anchoring via posting proofs so from that perspective l2s like rollups and can be as secure as the main chain if they're constructed in a way where

they have no admin keys they have no upgradable contracts they have a decentralized set of sequences and sequences are essentially the block producers so that um you know the transactions can't be censored because if you've only got one sequencer transactions can be censored quite easily but it's not like they can steal your funds what can happen is that because the l2s are secured by the main chain your funds are always secure so from that perspective you can withdraw your funds out of the the bridge contract on on on layer one um uh by basically saying well you know i want to kind of exit from this layer too and the layer two can't when it's constructed correctly can't take those those funds away from you so i mean it is right to say that using l2

is um you know probably i don't know if you would say it's 100 as secure as using l1 but it's pretty much like equal if constructed in in the right way so hopefully that that clears up that that kind of um point there and then you know you're saying what are the trust assumptions aka potential attack effect or sorry and potential attack vectors well as i said trust assumptions come down to things like how many sequences are producing blocks and and tren and um uh i guess like uh uh processing transactions and things like that um you know other contracts upgradeable which means does it have an admin key is it like centralized because of the admin key stuff like that and then the potential attack vectors are essentially especially in um optimistic roll-ups the attacked vector is

is basically that someone uh poses a challenge or at least does something like um with fraud on layer two and uh that goes through without it without like a challenge being pro being being posed then from from my knowledge i think a lot of these issues were actually ironed out and this is why it took so long for roll-ups to come to market is this kind of like um notion of of a challenge period and i mean like optimistic roll-ups because zika robs work a bit differently but essentially you have to basically place a bond when you want to change something and if you challenge something and it turns out that it's wrong and this is why there's this seven day withdrawal period because there's seven days of a challenge period here but if it turns out that the challenge is wrong then you you lose that bond which is usually some

kind of token probably be eighth or something like that um and then you know the train progresses as normal um during this time uh and you know there was no fraud found so everything's well and good there so i would i don't know if that would be an attack vector but definitely there are a bunch of of different attack vectors um if it's if it's centralized obviously it can be shut down um but the whole point is that if the l2 is constructed correctly then even if the entire l2 network goes offline everything's shut down you can still withdraw your funds from layer one because your funds are actually technically in the bridge and sorry in the bridge contract it's not on the l2 itself now this is actually in in stark difference to something like a side chain because yes your your funds will be in a bridge

contract on a side chain but they can also be in a side chain by um via going from like a centralized exchange or something and a side chain really is just a layer one blockchain again so if you transfer your funds that are natively issued on another blockchain say say you're using something like um solana for example and you transfer like over a bridge well then yes your your funds are secured by that bridge contract or and you know but the thing is is that that bridge contract isn't tied to um sorry the the sidechain isn't inheriting security from ethereum so then the the funds in there can only be withdrawn by uh by you going back from the side chain to to ethereum for example

uh or from the other layer one chain but if they kind of like get stolen on the layer one chain say for some example the the validators collude and still your funds on there well then the that then you can't get them back from the bridge then it's gone in that case um so yeah i mean there's different security tradeoffs here always um between different layer twos and and side chains definitely are much less secure because they don't inherit security from ethereum itself um so yeah hopefully that that clears that up uh for you on on that front there um their therapy insights have put out some really great research around optimistic rollups lately i i suggest going and checking that that out if you haven't yet i haven't got the links handy but you can just go to therapy insights and you'll find the the post there

all right on to the next question from john v 420 who says one of my favorite things about metamasking unisop is that i was able to trade from my hardware wallet i'm guessing that i'll need to continue to pay a premium for that comfort even after layer two goes live i am assuming that trezor alleged wouldn't be compatible with a layer 2 like optimism and that i would need to move the funds out of my hardware wallet similar to the experience with matic no i mean no this should work because so there might be an assumption here that the polygon pos chain or matic as you're calling it here um is a layer two when technically it is not it is a side chain so with layer twos your ledger should still work because what you would do is you just send the funds to the bridge

and then you would change your network um using either something like ledger live or metamask to the optimism network and you would be able to kind of interact with it there whereas i think with with polygon um it's it's a little bit different i haven't actually tried it yet um on my end i haven't tried the optimism or anything with a with a ledger i don't use ledger live um i i just use metamask um but uh uh sorry i just use path pass through with metamask uh through my ledger so i don't know if it's different on there but it should still work um i'll have to double check on that but i don't see a reason why it wouldn't work so um yeah i think that definitely um you know ledger will add support for these things and you'll be able to to interact with

it just like you would the ethereum main chain all right on to the next one from ghostess rv who says how exactly do you navigate this ecosystem since you're not a programmer how do you even begin to understand the code written for smart contracts and how do you manage your risks i don't read the code of the smart contracts just to be clear i don't uh check them whenever i'm like putting funds into them um myself i rely on obviously uh the contracts being legit because it's part of a legit project or the fact that i know people who have read the contracts or have like the hundreds contracts have been audited um by reputable firms you know they've been formally verified stuff like that um and you know if

you're thinking about like new contracts that have been deployed like how do you check those well i have friends that are smart contract developers so i just asked them um but yeah myself like i don't read the contracts because i don't know solidity i don't know how to read them and i would be lost without my friends essentially but um how do i but the more general question here is how do i navigate the ecosystem while not being a programmer i mean you can understand a lot of this stuff from a higher level there's a lot of explanations out there a lot of educational content out there that explains this breaks it down um in easy to understand blog posts or research pieces and stuff like that where it doesn't include any code it just includes like the high level concepts and how they work under the hood and things

like that and you know you do have to be somewhat technical and understand somewhat about how like computers work in general to get some of this stuff but you can learn that on the job so to speak i don't think it's actually difficult to learn that as you go so that's kind of like how i learned i mean i do have a bit of a technical background in that i worked in cyber security for a couple of years and i in a past life like a long time ago now i was a web developer um so i understand like um those concepts and i've and i've been into like computers in general since i was like 14 years old so i definitely have a technical background but um you know i think anyone can learn it as you go and i i didn't like kind of learn it from school or anything

like that i definitely learnt it from just doing it on my own and i think that anyone can do that so yeah that's kind of like how i navigate through the crypto ecosystem through all the technical stuff and it's a lot of repetition too it's reading you know different descriptions of different things i mean it took a while for rollups to click for me about how they work they had to read multiple things about them and this was back a while ago when there wasn't any easy to read explanations now there's plenty of easy explanations out there if you just search like optimistic or zk roll ups on google you'll find plenty of really easy to understand explanation so yeah hopefully that answers your question all right uh just a reminder if you want to ask a question in the audience you just have to raise your hand and invite

you onto the stage but i'll keep moving through the list on on that note so one here from john theforn who says imagine the ethereum network was your hometown and today our friends told you they were thinking about coming to visit they want you to make them a bucket list of must-have experiences what would be in the top 10 things you put on their list well i mean i think this is pretty easy to answer definitely would start them off with a stable coin would basically say them here's a stable coin uh this represents like one usd us dollar for example if you hold one of these stable coins and you can use this to transact on the ethereum network then i would introduce them to eth the asset because you obviously need to know what ether is to pay gas fees and things like that

so those are the two things that i put on their bucket list to say get familiar with these things make sure you understand them and the easiest way to do that is to go to uni swap so unisop would be the first app that i basically introduced them to and say you can swap any asset you want on uni shop go to uniswap.swap have some ether in your wallet have some stable coins whatever and you'll be able to to do a swap on there so that would be the very first thing and then the second thing i would say would be like okay well now that you've done that do you want to take a loan you know do you or it's not technically a loan but like essentially do you want to borrow money against your your funds so i would show them something like

compound or are there i would show them um make a doubt i mean it's it's a bit different but i would still show the maker and i would explain to them how you know with using your like as an example you can mint this synthetic kind of like dollar and you can use this within the ecosystem to to do different things with um so and then i just keep working my way down the kind of list here of defy apps i'd go to the more complex things i would show them something like um like alchemix definitely where i basically say hey you could put your stable coins in here and get yourself a self-paying loan and then i and then they'd ask okay well you know how do how does that work and you basically explain to them yield aggregators like yearn and say that okay well yearn um

essentially uh gets this yield from doing this this and this and this is how that you can pay off your loan uh through alchemics and then the non-defy stuff i would show them would be ans i'd be like okay go to ens.domains and you can register your own uh domain name on there which basically gives you a easily human readable character that maps to your ethereum address i think that'll be really cool for them they'll definitely get a kick out of that uh and then moving on from that i will show them nfts of course open c wearable you know just the the marketplaces and things like that i would say hey you know this is you you can buy yourself like a collectible and it's digital and it's digitally scarce you can prove that it is by going and checking on like on like either scan or whatever which

actually is your next question here yawn which i'll get to in a sec but and then from there if they were kind of looking for even more things to do you could move down the list and go to dallas and basically say well this is a dow and you'd have to explain to them what it is and basically say well you can go join this dow if you want to go participate in that you can go join this this discord channel you can buy these tokens and you can vote on on things within the dow so those are kind of like the main things that i would definitely tell people about and then also actually layer twos as well would be something that i showed them after all of that i would say okay well because that they would have you know obviously used the network and

experienced the fees and then they may have asked about the fees and then i said okay well do you want to do this without having to spend like an hour my leg on fees and they'll be like of course i do and then i'll be like okay well you can go use uniswop on optimism and then i'll be like okay well optimism is like a layer two on ethereum it still inherits ethereum security but you're gonna be able to uh basically trade with much lower fees and and it's much quicker and then i'll show them how to do that as well so yeah so hopefully that uh that kind of like answers the bucket list question there i think those are the first things i would do and then obviously over time i would dive deeper and deeper into it as they kind of got

deeper into the rabbit hole but those are the top level things that i think everyone should should do you know when they're coming into ethereum for the first time so your second question here uh you're on the phone was basically are you saying you recently bought that nft commemorating eip1559 and on the daily gray mentioned that while other people might tease you and say you could have just downloaded the gif for free that the key difference is that you could prove that you own the original could you explain how if a normal guest came over and saw your nft on the wall you could physically show them that you own the original asset what steps would you take to prove this to them do you pop up ether scan to the contract address and then cross-reference that with your wallet address to show that the contract is owned by you

would you not also have to pull up a trusted piece of documentation eg a tweet from tim bico declaring the contract address of the canonical one tldr how can we in a low friction way prove prominence of our nfts this is a great question because providence of nfts is definitely an open debate right now like about the easiest way to do it but i think you you kind of broke it down exactly how i would do it i would say while i have this ethereum address sasel.eth um you can see this on like this thing called ether scan and i and on on etherscan it shows that i have this nft in my wallet and now that would be like okay well there's no picture there like where's the picture i just see that like you have the aip1559 nft and then i'd be like okay well we can go

to a site like openc that will show it to me and i'll log into openc with my um saswell.ether account and i'll say okay well here it is and then they'll be like okay well it's it it shows that it belongs to your wallet but how do i know this is the legit nft that was issued by um you know but the legit um eip1559 nft then i'd be like okay well here's the post from tim biker or trent van epps or estate for works um and here here it is on like the mirror website where i bought it from and here's all the other people that bought it and and you know they all bought it as part of the same one and this is the canonical one because of that you can i mean there's exact same steps that you outlined but it's very involved

right we need kind of like easier ways to do it but i don't know if there's going to be an easier way to do it where um you know it's much quicker for example because of the fact that depending on how deep you want to go and how many questions people tell you you have to always go to the source because you could easily say to people or display it in like a nice display and say okay well cecil.eth owns this nft um and this is the legit one uh because of that but then you still have to go somewhere to say okay well that was that the right contract um you know how can i prove this on on ether scan or on openc or whatever um you're using third parties to kind of like come to consensus on that so yeah definitely um i think that that

that's something that i think people more people in the ecosystem are going to focus on and are going to kind of like solve going forward but it's a hard problem for sure uh to make it easy to to kind of like uh get providence on on fts all right your last question here uh you're on the phone you said what exactly is an l2 it's often described as a scanning solution for ethereum but what does that mean is an l to its own standalone blockchain with its own protocol clients nodes a network that interacts with the ethereum blockchain if yes then does this mean we want millions of people to also be running optimism nodes to preserve decentralization i explained earlier how yes layer twos are essentially their own blockchain but they just inherit their security from ethereum um but what i mean what it means by a

scaling solution what l2s do at least what rollups do there are different types of l2s but what rollups do is they split up the data and execution layers so what ends up happening is that the execution which is the most expensive part of an ethereum transaction gets done off chain so it gets done on this layer 2 network where it's cheaper to do it and then the data which is uh basically the proof that this transaction happened which is compressed gets pasted uh or posted to the ethereum main chain and you can recreate the um the the kind of like computation of that on chain if you wanted to so you could just kind of like download that data run it locally on your own machine and you'd be able to

check that that computation was run um you know it was run in the right way and was done verifiably correct but because you're only storing the data on ethereum it's much cheaper and that way you can get kind of like an order of orders of magnitude more scaling because you're taking off the most expensive part and putting it on the layer two network and what i mean by this and just to give a tangible example is that when you kind of like do an ethereum transaction say you're interacting with uni swap that is um interac and that costs more than a normal heat transfer because you're doing a lot of different trans uh transactions a lot of different smart contract calls where um you know that costs more gas right they cost more of the computational resources of the network to do

and that execution is done on layer one so instead of doing that on layer one we take that uni-swap tray to layer two we do the heavy lifting on layer two all the computational work there and then we put the data essentially the proof that that computation was run a compressed proof onto layer 1 where it would be very it's much cheaper to post that proof and you can basically fit much more transactions into that proof and put it onto layer 1 then you would be able to um not uh just doing it on layer one and then as i said you can run that proof yourself locally on your own machine and um and do the computation on your own machine and prove that that was that that that was secure so that that um that was run that execution was run

and that was done properly so that's kind of like what we mean by a scaling solution and how that works is it's essentially compressing the transaction increasing the throughput of ethereum by by splitting up the the transactions and there are the layer 2 constructs as well like zk porter and validium which also take the data portion of chain uh and have like what's called a data availability committee and they only post um the the the um the data that's required the minimal amount of data that's required to the main chain um to just post that yes okay well we did this trends at this computation and we have the data here and we can prove that we have the data but you're and there's a security trade off there where you're relying on this this committee with essentially a bunch of nodes

to service that data to give you that data so if you wanted to run the computation yourself you would need to get access to that data from this committee you couldn't pull it directly from the ethereum main chain so hopefully that answers those questions and you ask like if it is a standalone chat blockchain which it is um does it require its own uh kind of like decentralization with people running like nodes and things like that and yes it does these things are called sequences the more people are running sequences uh the more people um uh the more decentralized the network is but the key difference here is that because these sequences aren't responsible for the security of the network they're just responsible for processing the transactions um you only need one of these to be live for the the network to work and you can't like have a have like a um a

coalition of like 51 you can't have 51 attacks or anything like that because it's secured by the ethereum main chain so we obviously want to decentralize it because as i said with only one sequencer that sequence that could censor transactions and no one could stop them but if there's a bunch of different sequences well from the other segments i can basically say well no i don't want to enter this transaction i want to process it and that would get processed so that's kind of like how it works and the the layer two needs their own infrastructure as well like uh you've seen a lot of the um arbitrary optimism announcements around things like infuria and alchemy and the graph and and stuff like that the infrastructure definitely needs to be set up to support that too um so yeah and that's all falling into place as well so hopefully that answers

uh those questions there all right one here from rudiger who says i was wondering if you could talk about your decision-making process behind having no bitcoin exposure okay i i spoke about this earlier um answering kind of a knowledge fights question so i'm not going to rehash it here rudy got um it's time stamp so you can go back and check uh check my answer to knowledge fights question um but yeah i think i answered it quite well there all right next one here is from brian peace who says sometimes i hear about projects such as starkware that are ethereum align but are not evm compatible what is the ethereum virtual machine how do projects communicate with the ethereum blockchain if they aren't evm compatible and what considerations would go into the decision to choose evm compatibility or

not so the ethereum virtual machine is essentially this um this thing that sits on the ethereum network that processes smart contracts essentially they execute smart contracts that essentially allows you to do all the fancy stuff you do with smart contracts as i was just talking about all the execution uh stuff so that's essentially at a high level what the ethereum virtual machine is it's basically the engine of the ethereum network that makes smart contracts possible um starkware is so this is getting a little bit technical here but starkware does have their own os that so because they have their own operating system that they call it they actually do have evm compatibility where you can basically um transpile evm uh byte code what is what it's called um

into whatever language they're using they've got like this cairo thing and whatever like virtual machine they're using you can actually transpile it across now not everything will be like a one-to-one mapping um there's also this also works the same for something like optimism and arbitrary they both have their own virtual machines that um the ovm the optimistic virtual machine and the avm the arbitrary virtual machine um which i believe the optimism virtual machine is about 90 compatible with uh with evm code um and they've got their own transpiler to transfer transpile evm byte code into ovm kind of um compatible code and same with the avm the arbitrary virtual machine um so essentially yeah i don't think that this is an issue i think that

uh you know because we have these tools that can transpile it across it's going to be fine there um and and you know how and you ask how to project communicate with ethereum blockchain if they aren't evm compatible well they do it through that way but also they do it through a bridge contract so all these projects need to know is did the funds hit this smart contract okay if they did well then we'll just credit these funds into this user's account on this layer 2 and that's all well and good so from that perspective the bridge contract controls that uh communication there um and you say what considerations will go into the decision to choose evm compatibility or not while the avm is actually i mean by today's standard it's considered old technology it is single threaded which means it can't do parallel processing which means

um you know it's uh it's definitely a scalability bottleneck there but that's that's been designed like that for good reason but the main reason people would decide to support evm compatibility was basically to make it easy for developers to port over their code and for them to bootstrap their new ecosystem on these new layer 2s so that would be the main reason and the main reason not to is because you want to get around the limitations of evm and they think you can basically build something better and there are other projects building different virtual machines there are some using uh wasm which is um something that web i think i believe web browsers use or at least i think it was developed by a consortium of web browser companies like google mozilla and all that sort of stuff um but on top of that you also have

other blockchains uh they're doing different languages like pokemon and solana i believe use rust and they have their own kind of like virtual machines that run that i think pokhara is using wasm i don't know what celine is using um but they also have like i guess tools that are building on top of them for evm compatibility because the network effects of the evm are quite uh quite great and it's it's gonna be hard to break that down so i think the avm is gonna be with us uh for for years to come to be honest all right next question here from pj fastpants who says after eip1559 each cell pressure is estimated to drop by 25 to 30 percent due to 270 percent of fees being burned instead of being issued to minors the move to proof of stake will further reduce issuance by uh to around 10 of

today's levels but i was thinking there will be a period of time before validators are able to withdraw their rewards and therefore it's quite possible that we'll have a three to six months of no cell pressure from issuance at all is this right can we call this the zero ring or the twilight zone this is really interesting i hadn't really thought about this too much but to to discuss your first point here um you said e cell pressure is estimated to drop by 25 to 30 percent uh due to the fee burning in one five five nine i wouldn't assume this because that's assuming that all of the fees that get paid to mine is assault i don't know i haven't looked into the data of this but i wouldn't assume that all of the fear revenue currently going to minors is sold yes there is going to be some cell

pressure that's dropped because of the fact that um it's getting burned instead of going to minors but a lot of these miners could be holding that eighth for long periods of time anyway but now we'll have verifiable proof that that eighth is actually gone out of the supply so that is definitely uh quite positive of course um and then you know just to get to your main point here where you say is there going to be like a twilight zone where no one can sell the they're issued either or they can't sell their fee revenue uh because of the fact oh sorry the fear of a new as part of like the tip on the one that's the the fear of you that's not burned and i think yes i mean i don't think it's going to take six months for withdrawals to be enabled

um once the merge goes through i expect it to happen relatively quickly maybe maybe it happened maybe it doesn't happen for three months i actually think it's gonna happen faster than that but yeah i mean we can call this the twilight zone where essentially the issuance is effectively zero because of the fact that um uh you can't sell it i mean it's not effect i mean it's not really zero because like as soon as the withdrawals get enabled i'm sure some people are going to withdraw and sell whatever um but yeah interesting to to see that all of the extra fear revenue that's not burned and all the new issuance will not be able to be sold because it will be uh it will be stuck until withdrawals are enabled so yeah i mean we can maybe meme this as like the zeroing or the twilight zone if we

wanted to maybe once it happens with the merge and once it once that goes through but i think it's it's a bit more of an esoteric thing and probably something that maybe not a lot of people will kind of um latch on to because they'll just say oh well you know yeah that's true but like once uh the withdrawals get enabled it's just gonna get some of it's just gonna get sold anyway so yeah we'll have to see how that shakes out but but good good question and good thoughts there i think all right uh two more questions left on my sheet here so uh one here from cams you said hey anthony you were recently talking about steam and other decentralized social media platforms talking to the point that they just become cesspools or for extremist movements after listening to vitalik speak about his hopes for these

platforms in innovation that could make them better what's your opinion has it changed i think i don't know if my opinion has changed just yet i think for me for my opinion to actually change on this i have to see something work at scale and right now i haven't seen any of that and i know rve has announced that they're going to be trying to build a decentralized twitter i'm curious to see how that plays out but until i see one of these decentralized social media platforms deal with as you said um you know toxicity like extreme toxicity which basically overtakes the whole platform bots um uh lots of illegal content being posted on there uh you know just moderation in general and scalability issues too mind you uh i just i don't think my opinion is going to change until i see that i'm

optimistic that we can navigate these issues but at the end of the day these issues are much more social than they are technical and whenever you introduce social complexity into a system uh sorry introduce social stuff into a system the comp complexity explodes like absolutely explodes that's why i mean there's a reason why ethereum is trying to keep its base layer as objective as possible and as dumb as possible because if you start adding in more and more subjective things and more and more humans into the base layer uh in terms of like how the network runs then you just you know explode out the complexity so i think that if i see at the one of these social media networks or decentralized social media networks working at scale my opinion will be changed then but for now i just remain cautiously optimistic

on that all right last question here from patrick who says the knuckle indicator for bitcoin has been quite useful in the past uh especially in regards to potential market tops is knuckle also available to ethereum um so for those who don't know knuckle is basically an indicator that i've gone over in the daily grade data pump videos which you can find on the youtube channel but essentially what it shows is it shows the average amount of the network of like sorry average amount of the people that are holding b2c or eth that that are in profit and how much they're in profit by and there's basically different bands that these people are in and it's color coded it's like red yellow orange green blue um from from lowest to highest when it's in the red zone it means that

most people are either not in profit or in loss um and by and and and and um sorry in in in small profit or in a loss or when it moves up from there it just gets higher and higher and then once it gets into the blue it basically means that a lot of people are they are in a lot of profit and that's kind of like a signal to say okay well the market's a bit overheated here we're probably going to come down because people are going to take profits now i'm going to go over this on next month's data pump which i'm actually going to cover two months worth of data here and i'm going to dive deeper into that but yeah to answer your question it is available for ethereum and i have gone over it in those videos um and i think

it's actually a pretty reliable indicator and there's there's there's actually three different indicators there's the average indicator there's the short-term indicator and the long-term indicator the short term will show you how many people that have have bought and held either them within the last 180 days are in profit versus loss and by how much and then there's the long term one which i can't remember the exact time range it takes into account but it takes into account like a longer period of time and it shows you how much those people are in profit uh by and by how much as well so the short term one actually recently after either checked it was in the red zone which means that pretty much all of the short-term buyers were either in loss or underwater um and not in profit by very much was which is actually probably a good signal

that shows that okay well if the long-term investors aren't selling then who's left to sell so to speak so it's it's cool to see that but anyway i'll go over that in more detail on the data pump um i think that's it for the questions unless okay i'm just checking in the ama series channel actually i'm going to answer these questions and and and then i'll get back to back to the audience if you guys have any last ones but anyway one here from gorby who says what are your thoughts on unisop removing most of the synthetic s tokens i was surprised that they do that and not remove the scam token that exploits erc20 rune anticipating 311 letter driven regulations or is there something else to it yeah this was the topic of the day the last 24 hours um i gave some thoughts in in the

discord channel earlier but and i'm going to go over this on the refuel in more detail but my thoughts is that i think this is fine and bullish because of the fact that we should stop relying on centralized front ends because uni swaps uh dot uni uni swap dot exchange or whatever dot swap that is a centralized front end that is controlled by the unit top labs decentralized team it has never advertised itself as decentralized it will never be decentralized and we have plenty of other interfaces out there that can tap into the smart contracts on ethereum which are decentralized for uni swap and i think that by unisop making this action or taking this action oh sorry unicef labs taking this action they are basically signaling to the rest of the ecosystem that yes

there are regulators coming they're going to do some damage they're going to try and regulate things um and we need to decentralize faster and i think that we're going to have many more front ends popping up there's already a lot but we're going to have many more popping up we're going to have many more people deploying decentralized front end front ends as well and then more and more people can use those instead of using the centralized ones because any points of failure in d5 are going to get exploited by regulators as much as we like to think the regulators are dumb and they don't know what they're doing they while they may move slow they're going to catch up and they're going to have people telling them what's what and then if we don't if we can't resist regulators well then we're not really true defy true d5 is not um relying on

any centralized point of failure it is decentralized across the entire stack and that includes the the front end there so yeah i mean i think they did it because of regulatory reasons of course the s tokens were like the security tokens from from uh from memory and you know securities are already under the purview of the sec so if you're trading securities in d5 even if they're synthetic assets i mean i'm pretty sure the sac already has uh jurisdiction over that but you can still trade them like it wasn't like these pools were delisted from unisop i mean unisop labs can't do that but uh obviously taking it off the front end makes it harder to find um but the thing is you can use all the other front ends to do it as well so yeah um the the tl dr is basically we

need to decentralize the whole stack and i think this is going to push people to do that even further here uh and on that note i'm going to move on to the last question from augustus ave here who says the attack on thor chains token rune can be done can that be done to steal eth from an eoa how is it different and also do you hold all your bags in one address or do you spread them around and if you spread them around how do you manage all your private keys so the attack on the rune token was unique to roon because it was the way that the contract um the token contract was was coded up it was using non-standard practices and it was using a i think the way they coded it was just like completely stupid from what i saw like the devs were calling this out and

saying you know you should never do this this is really bad um this couldn't be used to steal eth from an eoa because of the fact that eath isn't a token that is generated by a contract i mean ethie is the only um coin on ethereum that yeah comes from the protocol itself whereas if you had like a wrapped ethe contract you know obviously you have wrapped ether as the default contract if that was coded in the same way that roon was coded in then yes that wrapped it could be stolen i mean any token could be stolen if it was coded in the same way that the the ruined smart contract was but eth from an airway using that same export that happened with with roon that can't be done and you'll have noticed that whenever you trade with eth on a decentralized exchange or anywhere

it never actually asks you to approve your eat for trading it might ask you to approve your wrapped eath but if you're just trading with vanilla eath it's not asking for an approval because as i said vanilla eighth is not a a smart contract token it is part of the core protocol itself so it's actually special in that it's separate to every other asset on ethereum so hopefully that answers that part of the the question um and your second part here how do you also sorry also do you hold all of your bags in one address or do you spread them around i spread them around not so much for security reasons but more for just like the fact that privacy is a big factor there obviously i have successful.eth and then i have my main accounts i have my deep cold storage account which

actually is connected to my staking account because i put my staking um and then how do i manage my private keys well i have like hardware wallets and things like that and i i have ways of tracking i'm not going to give away how i track it or anything like that but i make sure to secure all my um seed phrases correctly um any places that uh that that obviously i i i'm the only one who knows about uh and make sure that it's all well and secure like i think more people need to take security of their funds and private keys seriously especially when it comes to seed phrases or secret phrases whatever you want to call it because you know if someone gets access to that seed phrase they have access to all of your addresses on your ledger for example they have access to everything

and that's obviously really bad and they can swipe everything on there they don't need to do anything else they can recreate your entire wallet take all of your funds so you want to make sure that that seed phrase never gets it never sees the light of day you don't want to input it into a computer you want to make sure it's it's only written down on a piece of paper or you know there's there's kind of tools you can buy these these kind of i guess like metal um tools where it's like a metal sheet and you can actually put your seed phrase words in there and then you want to make sure you hide that somewhere or you can even split up your your seed phrase and give you know one half to your mum one after someone else right that you trust but you know if those two halves came

together you know that those funds could be stolen from you if you don't secure it properly so yeah hopefully that answers your question about security um if anyone else has a last questions here do raise your hand if not i think we're going to wrap it up there for today cool all right on that note thanks everyone for joining as i said this has been recorded it'll be uploaded to youtube with timestamps so if you came in late or you know left early you can definitely go and watch it on there so thank you again everyone for joining the sixth ama the next one will happen in two weeks and i'll see you all on that one thanks again everyone bye