Deflationary ETH, $500bil Uniswap volume and more - The Daily Gwei Refuel #242 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today's the first of november 2021 all right everyone new month new i guess like uh up november right we had october maybe we're gonna have up upvember now i'm excited for for november actually it's getting warmer here in melbourne so you know the the better weather's got my my spirits up and of course if he's pretty much near price discovery time of recording it's at like 43 43 so we're pretty much near all-time high price discovery so that's that's pretty encouraging as well but what else is encouraging is that the last seven days ethereum had its first week of negative issuance for the whole seven days right

for the whole week so what this means is that essentially eip1559 burned more eath than was issued every single day for the past seven days across both the proof-of-work and proof-of-stake networks now this is absolutely insane right there were so many people who who thought that eth wouldn't be net deflationary until the merge because it would require 100 to 150 gray constantly for us to be net deflationary now we've obviously i went i think i went through a last week we had maybe the week before but we had like eighths kind of like first net deflationary day uh including proof of work and proof of stake rewards well now we just had the whole week and it's obviously because the eighth gas prices have been quite high lately the market's been hotter

there's a lot happening on the network there's extreme demand to use the network and you know i had a few people kind of like hit back at me um not not so much on on the tweet but just like in general whenever i talk about high fees basically saying uh yeah you know you're celebrating kind of like all these eighth being burn and all these high fees but people can't use the network well look i've been i thought on the refill so many times before you guys all know what the ethereum kind of like design is for scaling so i'm not gonna go through it again but i think it just shows that people still i mean there's a lot of people who are kind of like they think layer one ethereum is the best ethereum has to offer obviously we have a really bustling layer two ecosystem that just

keeps growing and that's still really early though that's the problem right there's still not very easy ways to onboard onto these layer twos like i put out this kind of like tweet here i basically say you know ethereum in the back layer two's in the front if you know you know but it's very hard to say to someone well just on board onto layer two um but then force them to go through layer one to do so because the layer one bridging costs are still pretty expensive they can be anywhere from thirty to a hundred dollars depending on which bridge you use now a new user's not going to do that they're not going to go from a centralized exchange you know by ether bridge their ether into ethereum uh as they normally would like withdraw your each to ethereum paying a fee as well depending on the

exchange that they use and then paying another fee to bridge to a layer two so by the time that they've paid all the fees they could have you know they could have spent a hundred dollars worth of worth of the ether they bought and they're finally on a layer two but what if that kind of like the layer two that they're on doesn't have the app that they wanted to use for example because obviously we're still continuing this roll out of the layer twos of all the apps and stuff like that so when you think about it like that the later ticker system is still really really really early we still need um these kind of like centralized exchanges to really step up to the plate here and i think the easiest thing for them to do and i don't imagine this being very difficult on their part both as kind of

like on the integration side and on kind of i guess the um uh uh the not just the integration side sorry what am i talking about the um the the deposit withdrawal flow as well because what they can do this is really simple they can just have a reserve of eth right on the layer two so for example say that um coinbase has a ether account or an ethereum wallet or a multiple ethereum wallets on optimism or arbitrary then have ether in those wallets and that uh those are the hot wallets that people kind of like withdraw from so all coinbase has to do is keep track in their database of what um eth is going in and out and where it's going to users and just send that out just like they do for ethereum layer one it's the same kind of process for

layer two so i mean i know that coinbase is a big organization a lot of these centralized exchanges are the integration work takes longer and it's not just like the technical integration it's also customer support and stuff like that and making sure that funds are secure making sure that the layer twos they are supporting and secure even if they are centralized today making sure that it's kind of like a reputable team behind it they're not just kind of like supporting any layer two and they're supporting you know the big ones that the the ones that are the legitimate ones for example so i get all that but at the same time it's it i don't imagine it being that hard and that is one kind of like really quick way for centralized exchanges to uh essentially alleviate that whole kind of bridging cost because it would be near free bridging uh sorry

near free withdrawal i should say because all coinbase would be doing was here's the deposit flow actually just sorry the withdrawal flow just to kind of like put this in in simple terms i'm a user on coinbase i have uh i have one eighth i want to withdraw this one eighth to arbitrarium or optimism on coinbase's interface i select uh optimism i select withdraw and then i withdraw to optimism instead of ethereum layer one so in that drop down menu i would have the three options ethereum optimism or arbitrary i've selected optimism in this case and then my 18th goes from coinbase's hot wallet on optimism to my wallet on optimism that i've selected and that's it that that's pretty much i mean i'm sure coinbase would cover the

costs of that um or even i mean it's pretty much like near free anyway uh considering that an east transfer is the cheapest thing you can do so that's as simple as it can be it doesn't have to be more difficult than that now obviously i'm simplifying it for the example uh the back end work is is more than that and as i said like the customer support social side of it integrations operations is is different but in terms of the technical load that's the easiest thing that they can do but then on top of that what they can do is if they don't want to do that or or kind of in addition to that they can do batched onboarding where basically they just collect a batch of um withdrawals and this is for the more active exchanges that process a lot of withdrawals and they can just batch them

all together and then say okay well you know there's going to be like a half an hour wait to get your funds onto this uh onto the l2 because essentially they're bridging directly from l1 to l2 and they're just kind of like amortizing the costs across all the users that are part of that batch there's obviously direct fiat onboarding that these l2s can do that can go bypass centralized exchanges all together and the same concept applies there where essentially the provider that's letting you directly on board via fiat to crypto has a crypto reserve on that layer too and then just pays it out through that so i mean these things are solved issues this isn't going to be this isn't something that needs to be worked out it just needs to be integrated the research i mean there's not even any research to do it's just we know how to do it let's

just implement it and i think once that happens the narrative is going to shift around people being like high fees are bad right because they're not going to feel it anymore they're just going to feel the cheap and fast transactions of layer twos while we still have the high fees at layer one where hardly anyone's going to play i mean i've explained it plenty of times to you guys layer two is literally the sorry layer one is literally the sediment layer for layer twos long term and i actually thought of an analogy today and i don't think i'm the first one to think of this but it really resonated with me when i thought about it today layer one ethereum is a private jet right layer two are the commercial jets and commercial flights a very small amount of people can actually afford to use uh private jets

right they're super expensive i think like they can cost anywhere from 10 to 20 000 an hour to fly in one of these things and it depends where you're flying of course and stuff like that obviously it's very expensive because you as in a private jet you are paying for the fuel uh the the pilot the stewardess and the stewards in general you're paying for all of that out of your and all the maintenance everything blah blah out of your own pocket instead of amortizing it across uh you know hundreds of passengers for example so these layer twos are basically that where they're spreading out the costs of the layer one with all of these users but if you're rich right and i mean you don't have to be that rich to use layer one ethereum today you do have to have like um you know an outsized net worth

but i'm talking like you know i mean only obviously only the mega rich can afford private jets but eventually i i ethereum way i want to probably get to that point where fees are probably going to be like i mean there are 100 150 gray right now on average that that you know over time i expect that to increase especially um until we get data sharding i expect that to increase and keep going up to maybe 2 300 way like average that's when it gets to kind of the levels of you know it might cost 300 for like a uni-swap trade then you're getting into the parts where it's like okay it doesn't make any sense for like most people in the world to use this and it's the same with the private jet commercial jet kind of like comparison um and i mean there's tons of these

analogies that's like saying to people well you know you could buy a um sorry you could buy a property in manhattan in new york right an apartment there it's going to cost you millions of dollars to buy it or you could buy an apartment in some kind of like uh uh some place like outside of the city like way outside of the city it's gonna cost you much less um for various different reasons uh but i do like the kind of like private jet commercial jet kind of um kind of analogy because it's just so i mean it it's very easily relatable for people because most people will never be able to fly in a private jet just like most people are never going to be able to afford layer one ethereum and that's okay just because you can't afford a private jet doesn't mean you can't fly

just like just because you can't afford a layer 1 ethereum transaction doesn't mean you can't use ethereum you can just use ethereum in a different way at layer 2 but still get the you know a similar experience obviously on commercial flights as well there are different classes but i'm just talking like just as a general thing here i don't want to get into the weeds of this analogy because analogies work when you just stay at the higher level you start getting into the weeds they kind of like fall apart sometimes um but like essentially you obviously get a different experience as well right and the funny thing is is that like i think the layer one ethereum experience even um not even accounting for costs is just simply worse than layer two uh from a user experience perspective because of the block time like you still have to

wait uh you know you know at most 13 seconds for an ethereum block or if you get lucky you'll do a transaction before i block its mind but really it's it's slower than layered two it's always going to be slower than layer two so really your layer one experience is degraded not just by high fees but also by the slower transactions and the the you know the risk of dropping transactions having to speed them up to get your transaction in getting your transactions kind of um uh kind of like uh uh i guess like reverting as we've all experienced before that's just not gonna really happen at layer two it's still gonna happen but it's gonna happen way way way less and it's just gonna be much easier to avoid those issues from from coming uh this from happening as well so and on top of this i mean scott lewis put it

well where he said ethereum isn't going to be a consumer-facing blockchain for all that much longer and the funny thing is is that people took this the wrong way to mean that ethereum is not going to be the the blockchain that people use what he really meant was that it's just gonna be layer twos they're gonna be the consumer facing um kind of like parts of ethereum and it's not just layered so there's also any scalability solutions that just hang off of ethereum they're going to be consumer facing things it's not going to be the ethereum layer one maybe if scott said ethereum layer one isn't going to be consumer facing people wouldn't be as confused but i mean he said he went here and said you know ethereum as a settlement layer shelling point for all layer twos and institutions so essentially what i said before ethereum

layer one is the settlement layer certain layers are not cheap guys like they're really expensive and uh you know the the the user layer is at the as at the layer two there so i thought that was an interesting way of putting it but also i thought it was funny that a lot of people got confused and used it as a kind of like opportunity to fight ethereum as they do but yeah still still pretty funny to think about that another tweet from scott lewis here was highlighting a tweet from ryan here who was quote tweeting the crypto punk sale from last week the 500 plus million dollar sale from last week that was done using flash loans and i explained how that worked last week it wasn't a real sale it was just someone using a flashlight to basically show that this could be done uh but you know scott

lewis uh uh uh sorry um put the shared screenshot of ryan's tweet and ryan and he said if right sorry ryan's tweet said nft people tell me this was a flash loan meaning this individual took out a loan to fake someone buying it bought from himself then immediately paid the loan and then ryan goes on to say who the hell gives out a 532 million dollar loan to an individual even for an instant and then scott lewis shares his screenshot of that tweet with by saying the ethereum virtual machine it's [ __ ] magic and then i commented this is peak boomer trad fi energy because it really is now obviously ryan doesn't know how flash loans work he probably doesn't even know how d5 works in general or even like how crypto works and that's fine but the funny thing is

is that like this kind of thing is going to keep playing out over and over again because what we have within d5 with stuff like flash loans is a new kind of like primitive it is not something that is possible in the traditional finance system and that's hard for people who haven't kind of been exposed to this stuff to get their head around and as i mentioned last week when i was talking about this crypto punk sale flash loans are probably the wildest thing that we have in d fight personally i i think my favorite thing in d5 because they just kind of like bring together what makes d5 magical and that is the composability and also and also kind of like the freedom for for individuals to have just as much power over their finances as the institutions do over them so with a

flash loan you can technically borrow you know up to as much money as you want and as long as you repay it in the same block uh you're fine now imagine trying to explain that to a tradified person they would you'd have to explain how ethereum works how uh defy works how ethereum blocks work how transactions work i mean it'd be very hard to explain that uh and this is not stuff that end users need to know about at all i mean if you like flash loans are not really an end user thing like flash loans are used for good and bad bad when they're using exploits good when they're used for like arbitrage and stuff like that but generally like a normal retail user doesn't really have like you know a lot of use for it in their day-to-day day activities um but you know obviously if you want to get

into the weeds of how it works it's more complicated to explain and i think that's why ryan here kind of missed the whole point of what happened so i mean it's funny because like i i did i did like dunk on ryan a little bit by saying this is peak boomer tradify energy i don't think ryan was trying to flood this stuff i think he just didn't know how it worked but again i think it just shows this kind of like world that exists totally outside of d5 that has existed for much longer than d5 but doesn't understand what we're doing because they're just so far behind it's it's too fast moving like could you imagine explaining to people that oh yeah we had like d5 and now we have like d5 2.0 and and saying to them yeah it's a marketing term but there are a lot of new features

where the d5 1.0 projects are kind of getting eclipsed by 2.0 projects because of this this and this reason i mean just explain this sort of stuff to these people it's it's kind of like i mean even people in crypto we get overwhelmed right by all this stuff happening we kind of like lose uh lose focus of it or if we take a couple of days off it's just really really hard for us to kind of like keep on top of things i know personally as someone who covers this ecosystem uh you know every day if i take a day off which i haven't in i mean since i got into ethereum about four four and a half years ago i have not taken one single day off where i didn't look at anything ethereum related i didn't look at the price nothing like that not a single day even

when i'm on a flight i have used the wi-fi to stay connected um and even on the flights without wi-fi the most i think it was it was like 16 hours or something like that so 16 hours is the longest i've gone without checking uh you know news about ethereum and and uh and the eighth price and all that sort of stuff and i felt like i had missed so much i remember i landed in melbourne because i was coming back from somewhere and i checked my phone and you know what i had missed this was back in the bear market but uh essentially i had missed the fact that uh i think china china did something that was like really really bullish i can't remember exactly what it was but it was really bullish for crypto and ethan btc rocketed up and i'd missed that whole thing everyone was

talking about a twitter blog about it and i missed that whole thing just in that 16 hour window uh because i was on a flight and i didn't have wi-fi on that flight so can you imagine these people that aren't in the industry they're completely outside of the industry they're not keeping up with it at all and then coming in and being and seeing this kind of like um flashlight thing and trying to wrap their head around it it's not gonna work right it's it's a very i mean this is flashlight is an advanced thing it's not something that an a beginner should actually even look into or worry them themselves about they need to learn all the other stuff first but it really does show like the disconnect here which i don't think is going to get rectified i think that what ends up happening with

techno technological paradigm shifts like this is that the the people the kind of people that people refer to as kind of like quote unquote boomers and they're not even talking about like actual boomers i think boomers just become a term to refer to people who are just like um behind in technology more so than referencing the actual generation of of of people um i think that those people are going to be the laggards they're going to be like the late adopters and they're going to be using this technology when it's ubiquitous across everything just like how you know uh uh people that adopted smartphones last whether they be i mean you know there could be any age but it was typically kind of like the elderly that adopted smartphones last um it was just because it was ubiquitous like ever and the internet as well where

you know having a smartphone was just the thing that you did having access to the internet was required to participate in modern society the same will be true for things like an ethereum wall it'll be a requirement for us to have an ethereum wallet in order to participate in um all the the wonders of society going forward at least in modern society so at that point you'll be at the late adopter stage it will not be early anymore at that point um you know ether's probably going to be like 100k plus at that point right um we won't even be talking like we are today about how you know it's impossible to keep up with with um ethereum it will literally be impossible to keep up with ethereum at that point because it will be as large as the internet and as adopted as it um

but but yeah i mean anyone who's not paying attention day in day out is definitely going to feel left behind and it just just the way it is if you want to be on top of the ecosystem if you are actually interested in staying at the bleeding edge obviously you watch the refuel you read the newsletter you participate in other things like you go look at bank lists and there's millions a million other things you could be doing you sit on crypto twitter but that's not for everyone right as ryan sean adams always says in bank list like we're on the frontier guys like we're heading west but it's not for everyone so i from that perspective if ryan really wanted to he could get into the ecosystem spend time in it does he have the time to do it who knows right it's a

big time sink um so so yeah but anyway it's still a funny tweet that i thought scott put out here and me saying like it's peak boomer tradify energy i think i wasn't me using the boomer term to refer to the generation i was using it to refer to people who seem to be just very far removed from this technology because they haven't been able to keep up and you know it can be used as an insult or can be used as just like a way of labeling people but at the end of the day everyone has access to the same information within crypto like it's just i mean a lot of the information is free it's out there you can essentially uh go on to twitter and get a lot of the information you need but it comes down to do you want to

dedicate the time do you want to dedicate the effort and most people don't and those who do will you know get the spoils and get the rewards over the long term uh and i hope that's a lot of you guys like especially i mean if you're watching the refill it already is you so i shouldn't say hope but but yeah anyway i'm going to move on from that tweet got some stuff here from paulinha a great thread from paulina today about um decentralized sequences within roll ups so you'll have heard me reference sequences before especially around like arbitrary and when their sequencer went down basically what a sequencer is is it's kind of like a piece of software that batches together transactions and orders them and and kind of like puts them on uh uh sorry gets them ready to be put onto layer one

and it's basically what you know every time you submit a transaction you're submitting it to the sequencer in order for it to kind of like get processed and everything like that so paulina's point in his tweet thread here uh was about sequences being powerless they can only reorder transactions or withhold them they cannot steal them now you know there was a bit of kind of like new uh a discussion in here from from nick johnson and paulinha about you know hand waving away the fact that uh sequences being powerless right for example because reordering transactions is actually a pretty big power for example as john as sorry as nick points out here reordering transactions mean you can do mev so if you're a sequencer and you're a centralized sequencer you can do mev

and uh and polynomial's response was that you know the people running the centralized sequences right now are arbitrary and optimism the teams so why would they do mev on their own users they're probably not going to because it's it's not good it's long term unhealthy but you know other sequences might but again decentralizing out the sequences will help a lot with this and it'll also help with withholding transactions which is just another way of saying saying censoring transactions and decentralizing out the sequencer network and the validator network layer 2 is much easier than decentralizing it on layer 1 because you're not doing consensus decentralization you're doing uh basically execution and sequencer decentralization uh whereas consensus is a lot harder you need to kind of like

get a security budget you need to kind of make sure that there's not too many validators i'm kind of like concentrated in one bit um but yeah i mean i suggest reading this thread from paulina and i also suggest reading the little conversation here with nick johnson it was pretty interesting about mev and kind of like both paulinha and nick's views on this so speaking of layer twos mahalo put out a tweet just kind of like uh highlighting polygon hermes and how it's under-appreciated under utilized right now and how they're going to change that now hermes is i think like a simple kind of like payment zk roll up right now that's why it's probably underutilized but uh the team is building uh the zk evm which is basically going to be these generalized ebm compatible zk roll up

with hermes and i mean that's what i'm most looking forward to you know the funny thing is like what stock net is launching starkware's launching this month on stock net is not an evm compatible um zk roll up it is a uh kind of like cairo language which is their own smart contracting language and their own stock os it's not an evm they do have a transpiler but that's that's a different thing whereas the zka vm wants to be a fully compatible avm compatible even evm equivalent uh uh kind of like a zk roll up which is obviously very important it's obviously like the holy grail when it comes to evm compatibility and equivalence so so yeah i'm definitely keeping an eye on that and it's really really cool

so uh and then yeah i guess like uh uh polly says that you know the polygon hermes just needs aggressive marketing and exchange integrations and my halo says on it which is really cool right uh because it means that they're coming so yeah looking forward to that so over the weekend uh uni swap uh over this weekend or was it last weekend i think it was last weekend uh uni swap passed 500 billion dollars in total trading volume since its launch in november 2018. this growth is absolutely insane obviously this is huge do you know it's funny you won't hear it now but the amount of people who were betting against uni swap and who were saying that amms wouldn't work and unisop wouldn't work even all you know up to kind of like 2019 or even late 2019 um it was staggering it was the

consensus that it wouldn't work then 2020 happened and d5 summer happened and uni swap rocketed up and now does billions and billions of dollars of um daily transaction volume and it's not just that layer one either as unisop says here two billion dollars of this volume was contributed by alba truman optimism um which has you know starting to see significant traction and they haven't been live for very long arbitrary one has only been live for a couple months right optimism uh uh unisop on optimism has only been live since july uh which is only about three or four three three months i think i think it was like a mid july late july deployment so if you go like august september october so a bit three and a bit months there and obviously optimism still has their white list but you know it's it's growing you know that's the

main thing to look at it's growing over time this is just absolutely phenomenal uh you know i was reminiscing today in the disco channel a bit about this and about how like how different two two and a half years ago ethereum was just just as an ecosystem not just the apps but like ethereum itself the amount of people who were like super bearish on ethereum and eth was was staggering and then what two years later we have like eighth being the most bullish asset in crypto in terms of like the large cap assets you know gaining on btc every every other week uh the flipping becoming like a an actual kind of like thing that a lot of people believe in uh ethereum's tokenomics being so strong burning over 700 000 eth right having a deflationary week we've come so far in such a short period of

time relatively i mean two two and a half years is such a short period of time can you imagine what this ecosystem is going to be like in 10 years like this is why i say we're still early guys because we're you know the prices that you sell the market caps that you see may seem really big to you right for example you'll see like a two point what two points uh eight trillion dollar total market cap right now and you'll think wow that's really big right it's trillions of dollars as i've explained before the total kind of like market cap of equities around the world i think is anywhere from two to three hundred trillion so we're pretty much like you know still got a hundred times uh growth left in it for total crypto market cap and that's not going to be evenly

distributed across everything there are going to be some things that go a thousand x there are going to be some things that go 100x they're going to be some things that only go 10x but this is why i'm kind of like saying that we're so early in not just kind of like the the price the prices of things but also the adoption because the prices are very much for a lot of these things all the market caps are very much ahead of their adoption i wouldn't say eth is i think eth is actually still undervalued uh relative to its current adoption and then obviously you put a premium on it in terms of like future growth which there's a massive premium that you can put on that because it's future growth is massive as well and also eth is not just like it a utility asset is also

kind of like a story of value has a lot of monetary premium to it as well so from that perspective you're better off comparing eth to nothing ether is a unique asset it cannot be compared to an equity it cannot be compared to a commodity it cannot be compared to a bond it is everything and and and it is a new asset all in of itself right it's not limited to anything so from that perspective the ceiling of its value is infinity there is no ceiling to it at all uh you know over time like you know maybe far into the future eth could be worth a million dollars because we burned so much earth that its market cap doesn't actually need to go to um about a million dollars this market cap would be uh what would it be actually it would be 100 trillion dollars it

wouldn't even need to go to that uh because a lot of eth will be burned at that point right so yeah i mean i'm not going to get off a goal from like a super bullish east tangent here but i just thought it was like interesting just thinking about it today just how much has changed in such a short period of time and how much kind of like uh how much growth there still is to come from this ecosystem and we're really really really at the beginning still like i mean i say it a lot and i know it's a meme but we're so early like i just i can't not say that so uh tim biker did his thread on the uh another called all call debs call that wrapped up last week so lots of great content here to get through there were

updates on the merge the updates on stateless ethereum as well and a bunch of other things uh definitely give this tweet thread a read if you want the full breakdown of what happened on the old core devs call i'm not going to read through it i just wanted to highlight it and uh just for you guys and i'll link it in the youtube description below uh a few more tweets to kind of like run through here as i'm coming up on time i think i'm going to go through this one first and leave i think these two a bit longer uh yeah i'm going to leave that one for last anyway uh so australia's regulators have given a green light to bitcoin and etfs i really hate when people do this right this i know this this is a bitcoin or account the bitcoin archive account but they said breaking

australia's regulator gives green light to bitcoin etfs and then a link to an article that literally has it in the title asic which is australian securities exchange commission gives trading of bitcoin and ethereum etfs to greenlight uh i really really hate that that this happens but i mean understandable from this account that's why i quote tweeted it and said you know they also gave the light to each etfs which is awesome i mean i know there's a lot of aussies out there that listen to the show and kind of discord channel this is great for us obviously getting tax advantage kind of like access to to um to bitcoin or atheist is a great thing and uh asic is basically our version of australia's version of the sec so so yeah awesome i really want the sec in the u.s to stop kind of like i mean

these these are spot etfs by the way it's not futures etfs the bitcoin atf being a fuji's etf is like oh if i if i'm being honest it's just a good marketing thing it is so [ __ ] from an actual fundamental standpoint like it's not actually purchasing the underlying bitcoin because it's futures we want spot btc etf we want to spot each etf but the sec being as they are are just like dragging their feet on this while other countries leapfrog them i mean even australia which is one of the more conservative countries when it comes to these things is leapfrogging the sec it's just it's just frustrating it must be really frustrating for for us citizens as well to see their institutions valuing them on this just in the wider crypto ecosystem but also the etf space and i think that's

why bitcoin kind of like it had its initial pump right got to 67 68k but it's come down and eighth is pretty much like outperforming it because i think that the narrative and the marketing of like a few years atf just isn't enough to get bitcoin um to be super strong from an asset point of view whereas eth still remains extremely bullish as an asset right um so yeah i would love to see spot etfs in the u.s market but cool to see that australian regulators are more progressive here than the new s ones which was a little bit surprising but but cool to see nonetheless so danny ryan put out a great little kind of tweet thread here in response to joseph de long who quote tweeted proto lambda who proto is uh i mean was now an ethereum core developer at the ethereum

foundation he joined optimism last week this is an absolutely massive win for optimism by the way proto for those who don't know is a gigabrain ethereum kind of like core developer researcher he is responsible for so many of the things that have happened within ethereum core development and optimism landing him is an absolutely huge win but then joseph de long said you know tweeted proto's tweet and said this is going to keep happening this being uh proto moving from ethereum core development to optimism um going to keep happening unless the ethereum that can reward protocol developers proportional to lead to their value maybe a block reward maybe an airdrop on these two merge post your ideas below and then danny ryan posted his idea by saying you know let's make it a social norm for all dows and other network tokens

building on ethereum to allocate 1.5 of their tokens to the individuals building and designing the l1 infrastructure they rely upon these researchers and devs do more for most tokens than any vc and then he goes on to detail how this would work a committee controls a split split updated every quarter vest over three years quarterly existing dowels write a joint manifesto and can kick it off with existing tokens new dowels to follow community lays on the pressure and then then he continues if the upside to working on adapt protocol and ripping his dowel tokens is too asymmetric and potentially destructive to the balance then share the upside i think this is a great idea i think this is a great middle ground because i don't i mean i don't think a lot of core developers i mean okay going back to the premise of what

joe said here proto has not left ethereum core development developing on optimism is very similar to ethereum core development because as you guys know optimism is targeting evm equivalence what that means is that you're basically doing what ethereum does right at the core protocol layer at layer one so proto is just gone i mean he actually said another tweet he said the reason why he um kind of like joined optimism was because it wasn't mainly because of the compensation bump but also because he gets to work on problems that are more pressing uh within optimism like late scaling ethereum and more pressing than what's happening on the core layout um which is which is totally fair right and totally cool but essentially what danny's proposes here is like let's make sure that the users

of the ethereum network instead of kind of like poaching core developers they can actually just like allocate a small portion of their tokens to core developers uh and allow them to kind of share in the upside of these protocols that they may have may may or may not have joined as founding members i think this is a great idea i think it is probably one of the only workable ideas i don't agree with um joseph saying maybe a block award we went through the notion of block award funding as in paying out a portion of the new eat issued per block to a development fund for core developers this was discussed a lot in the in especially in the bear market and the the kind of like um the kind of consensus was that no we shouldn't do this uh for a variety of

different reasons but which i'm not going to go through now uh an airdrop on the merge was also discussed but again it would require printing new eighth it's just not worth messing with the ethereum monetary policy even though like i personally wouldn't be against it from like a i guess social standpoint uh but from i guess like a wider kind of like con taking into the wider context into account it just wouldn't be good and it wouldn't be kind of like net positive for the ethereum network so so yeah anyway i'm over time here and i've got one more thing to talk about uh definitely check out this and check out the replies to danny here last thing to talk about was that kind of i guess exploit last week within cream that was due to x sushi so it affected x sushi and the dpi token which holds x sushi uh

but essentially it was uh ave was also um uh vulnerable to these exploits so and they've since fixed it or i think it's fixed by now or they had a fix that was going through the time lock but essentially this exploit resulted in cream losing over 100 million dollars worth of um worth of assets and are there being much bigger than cream and the billions of dollars worth uh people kind of got spooked and justin sun who i mean it's crazy but he only i think he had over four billion dollars worth of stable coins and eth in aved that he withdrew as like a precaution um but i mean it's just crazy that like he has so much money i mean he's added zero value to this ecosystem all he's done is scam everyone it kind of like hurts right when you really think about it but i'm

not going to get too hyped up on that um but that was like kind of like the tldr of that whole exploit shenanigans and i know there was a lot of drama over the weekend as well between ave especially the avett and like the yeon kind of like ecosystem i don't know i feel like this drama a lot of it is just like petty stuff that really doesn't have any bearing on the on the kind of like long-term uh kind of arc of this ecosystem i would say that maybe it's good for some like short-term entertainment if that's what you're into if you love gossip if you love watching honors drama kind of like unfolds which you know if you admit it or not a lot of people like i like seeing that unfold and kind of like entertained by it for better or worse um

but essentially that's kind of like what all it was and i think in the end really um the two protocols are just going to keep working as they as they normally do they're not going to kind of like get tripped up by this but that was basically the tldr of all the stuff that happened last week and i think others should be safe by now um uh i think it has gone through i'm not sure maybe maybe by the time you watch this it's gone through but i'm not sure exactly how long the time lock was but it was put into place um to kind of like mitigate this attack and to fix the bug there as well but i think on that note it's it for today so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't

yet give that video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone