Ethereum's big Q1, Gitcoin to decentralize & more - The Daily Gwei Refuel #122​​ - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the delegate refuel where i recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the 17th of may 2021 all right everyone what a weekend we had a lot of i guess fudd elon tweets price action that happened over the weekend and i am definitely gonna talk a bit about it here uh but first i wanted to kind of go over a tweet i put out earlier today where i said bearish in quotes news things that happened over the last week we had binance um being under under investigation by the irs and the doj so both the internal revenue service and the department of justice in the u.s uh tether came out with a transparency report

and people were kind of saying that oh okay well this shows that tether isn't fully backed by um you know by dollars in a bank account or whatever um which is never the the case anyway um usually when you're backing something up with assets you're doing it with like cash and cash equivalents and other kind of assets but i won't go into that uh elon musk has been tweeting erratically again both about doge and about bitcoin and about bitcoin's energy use and all that sort of stuff and then u.s tax selling so apparently there was like a deadline for um uh taxes uh on may 17th so today uh some kind of extension deadline for people in the u.s uh china bans crypto fudd again that that's that silly fx uh hedge account on twitter spreading

like um lies again uh and bitcoin closing below the 20-week moving average for the first time since september and this is commonly referred to by technical traders it's what's called a bull market support line so generally you don't want to see btc closing below this line but during a bull market but i guess like you know technical analysis whether you buy into it or not is a whole nother debate here um so the reason and then i said what else you got so the reason i kind of put this tweet together because i was like everyone's trying to find reasons for the market going down right they're trying to find like the the kind of signal within the chaos that is markets and they're pointing to all these different things so for me i was like well if you're pointing to all these

different things and trying to correlate something then really i mean it's just random right and then i thought of a book from uh naseem tele called fooled by ramnes which is basically a whole book on this topic where humans you know inherently want to find explanations for things and you know inherently we will um explain things that happen randomly that have no correlation with each other uh to kind of like i guess um explain something that we may not understand you know this goes back to you know i mean since humans have existed right you know back in in the more primitive days we would make up things to explain you know things that we didn't understand for instance you know there was greek gods uh for for for natural occurring phenomena like lightning right and thunder like that those things couldn't be explained at

the time by science because we just weren't at that level of um you know human evolution so they were explained by gods and by like higher beings and that's actually how a lot of religions came to be it's like it it tries to find meaning within things that we don't have answers to like we don't have answers to what happens after death and all that sort of stuff right so without getting you know too too off track yeah that's what the book kind of goes through i haven't read it yet but i've i've you know i've seen summaries of it and everything i do plan to read it but but he he does take uh in the book he takes a financial lens where he looks at markets and he he kind of like goes through like how humans will always try and look for a reason

right you know people are saying oh well elon calls the bitcoin dump or elon did this oil did that um you know if you look at the really short term like as soon as elon tweets there might be a little bit of a movement in the crypto prices that is just opportunistic traders basically having elon's tweets on on notification and if they tweet something bullish or bearish about bitcoin you know they might buy or sell right but in terms of like bitcoin specifically and its weakness it's been weak for for a while like for a few weeks now it has uh just been staying flat or trending down uh while ether has been strong and east btc has been strong as well but btc was due for this anyway like if you look back you can kind of see it's been weak you know the inflows have stopped uh you

know ether has been stronger than it yes eth went down as well but the eighth btc ratio is still pretty pretty high it's like you know the high was 0.08 or something and it's at like 0.7076 or something like that so it's kind of noise um in how it's moved there so you know you can't even really point to elon is the the reason for this right and and all these other things as well like us tax selling it's just another reason people come up with you know the the binance being under investigation all this sort of stuff so as i explained in the second tweet that i put here i said markets are chaotic and humans always looking for explanations for up and down movements and that's what we always do there will never be someone who's just like oh it's just the market doing what

the market does right i mean some people like that like i definitely try to take that lens but i still in my head well i'll still go through and see you know okay what happened like is there any explanation here and i'll rationalize it in my head i won't actually chalk it up to just being kind of like random walks of the market which it really is because if you think about markets as in in a holistic approach there are millions of different inputs that happen with markets millions of different variables it's it's literally trying to predict the future with with markets and you can't do it because there's just too much going on there's too many variables you know billions of dollars of research and analysis goes into this every year to try and analyze and predict what's going to happen in the markets to make

money from that's what investment professionals do right um and you know most people get it wrong most people don't outperform an index most people don't really perform in the markets um and the ones that do win big and they they have their own ways of finding you know what's called alpha in in the markets like that those nuggets of alpha that you try to find that you don't want to give up to anyone else and really you know a lot of it is definitely you know uh taking a long-term view as well for instance you know taking a long-term view on eth i mean you don't have to take that long uh that much of a long-term view you're like you could have invested in eight in 2015 at a dollar or less right and that was only six years ago and now you know it's over three thousand

dollars is that 3 500. you'd be up 3 500 x on your money you would basically be financially independent even if you only invested like a thousand dollars into it uh you would have 3.5 million dollars for example right and with with yield farming in d5 with just earning like a casual yield on that or even putting a million dollars into a into an index earning eight 10 a year you basically become financially independent in any first world country as long as you just live modestly right so if you just take a long-term view like that uh on quality projects then all of this stuff is just noise right it's all random walks of the market there's no unless you're a trader there's no point even trying to look at it and rationalize it like who cares at the end of the day um but i get it you know inherently as

humans we want to explain things so that's just the way i kind of view it and i think you know the the book that uh fooled by randomness um has been a highly recommended read to me i just haven't had time to read it i think i have it on my bookshelf yeah among all my manga but um i do recommend reading it it's been you know as i said it's been recommended to me many times so yeah that's i guess what happened in the markets i i don't like personally i mean i always say this i'm not bearish at all like i just i was saying to some friends today i'm like what what's there to be bearish about when it comes to crypto like okay we went up really fast i mean that but that's normal for crypto you know we can go up really fast and

just go sideways for a bit and still be bullish uh or go down and then still be bullish like ethereum itself has so many catalysts coming up still like it's funny because in the short term people seem to forget things like erp one five five nine the merge you know layer two continued growth of d5 and i was actually saying to my friends today as well people aren't going to fear and i've said this many times on the refuel like you just got to remember that people even when these crashes are happening they're not going to fear they're going through stable coins some of them will yield fun with their stable coins some of them will keep them on exchanges to buy the dip right no one is really going to to their bank accounts with when they sell and the and if they do it's only to pay

taxes or to pay some bills in real life or something for expenses essentially it's not to have some money sitting in a bank account like why would you put money in a bank account right now you're not earning anything on it it's actually being devalued by inflation so you're you know you're much better off keeping it within within crypto um and then on top of that by using the ethereum network in a post 1559 world even in bear markets um you're still going to be contributing to the value of eth because every time you do a transaction whether that's to get into a new yield farm or harvest a yield farm or kind of um you know trade some assets or whatever you're going to be contributing to each value by burning eth so i mean there's just some other things there's many other things going on with

ethereum right now i do think that institutional interest in ethereum is just getting started and i do think they're going to move to d5 next as i've said many times in the past that the jump from from non-crypto to btc is huge the jump from btc to eighth is small and the jump from ace to d5 is even smaller like as soon as you get into ethereum and eighth you are immediately exposed to d5 um and i i just think that you know everyone you know is clamoring for like a d5 season and stuff like that and that's fine um and i do think that's going to play out eventually but i do think these these more sophisticated institutional investors that are coming in are actually going to look at assets that have actual cash flows to them and things like that rather than things that are just going

up based on belief or narratives or marketing and i mean that's just a bit of an alpha league there for me and that's what i'm focusing on right now the assets that actually you know are generating cash flows to token holders and have a p e ratio and all that good stuff um and i guess that's a perfect segue actually into uh this report that came out today from james wang where he basically put out this report where he says ethereum announces first quarter 2021 results so this is like typical a typical financial report that you'll see um you know traditional companies do in like the stock market and things like that um every quarter they're called earnings reports uh but you don't traditionally see blockchains do this because obviously like these platforms are decentralized and obviously this isn't like ethereum announcing this like it's not the

ethereum foundation it's not um you know any central party in ethereum this is just um for impact right ethereum announces this and james bang is a member of the film community uh he's an avid refuel listener and watcher so i'm sure he's um he's seeing this right now but the point of this report is to show the growth of ethereum over kind of like you know certain time frames so he compares things like you know the total transaction fees they've increased 200x since uh q1 2020. so just in a year it went from eight million dollars in q1 2020 to 1.7 billion dollars in q1 2010 which is the 200x increase if you're a traditional investor and you're seeing this kind of growth in a year right no i don't think any startup in the world

besides crypto startups has this type of growth uh i i just i i simply don't think that exists and i simply think that a lot of investors in the traditional space or you can call them web 2 investors or or sas investors they're just sleeping on this and this is what i think james is trying to do he's trying to basically wake them up and say hey you know this is generating real value and real cash flows post 1559 most of these fees would have been burnt which generates real cash flows for ether token um so on top of that uh the total transaction volume on ethereum increased 20x here from from the same period uh daily active addresses up uh 71 uh which is which is obviously very

uh which is huge here and staked ethereum during q1 with the 3.6 million it's at 4.5 million now right um and then yeah he goes into not just i mean this is on the ethereum kind of protocol layer here he goes into the ecosystem layer like dex volumes increasing 76 times uh since uh uh since q1 2020 from 2.3 billion in q1 so january 3rd march q1 covers three months um and to 177 billion in in q1 2021 uh d5 tvl up 64 x right even going into like raptor bitcoin on ethereum uh nft sales and stuff like that uh and he's got a few quotes here one from me i did help uh review this um this post and i did give

a quote here same for david hoffman and then yeah going into the ecosystem highlights not just the growth highlights uh about metamask and how they've got five million monthly active users and and all that sort of stuff and how public companies are buying eth and etfs and things like that and a bunch of other things here like balance sheets of the ethereum foundation and stuff like that but i'll leave most of this you can go read and check out yourself but i i think this is really cool i think this is going to get the attention of a lot of these traditional investors and they're going to see this insane growth and they're going to pay more attention to ethereum because i still think that um because people come in through bitcoin a lot of the time they look at bitcoin and they see okay well really the i mean there's only

a few key metrics in bitcoin that have really grown i mean the total fees paid on the network is up but it's not up that much it lags like incredibly behind ethereum um active addresses and things like that are off but they're not up that much and if bitcoin doesn't have a d5 ecosystem or anything like that um and like obviously the price is up so that's the main draw there but i think these are the traditional investors they you know they look they may not they may look at bitcoin and they may see like all the things like digital gold story value you know inflation hedge and they may say to themselves well i'm not interested in this right i was i wasn't interested in gold i didn't understand gold and i wasn't interested in why people would even bother holding it but i am interested in

ethereum i am interested in something that i can relate back to software and tech that i that i've been investing in before and that's my maybe while that why they um we'll take a deeper look in ethereum here so anyway definitely go check this out it'll be linked in the youtube description below so jeff lau from ens domains i put out a really great thread today about ethereum l2s versus plasma and side chains and scaling solutions in general it's a long thread it will be linked in the youtube description you can go read it but this threat comes in response to what i've been seeing over the weekend which is a lot of debates about layer twos versus side chains versus commit chains versus everything blah blah blah right specifically focused around polygon now i gotta profess this by saying i'm an

advisor to polygon right i'm obviously biased here but i think what a lot of these arguments uh are focused on is the marketing right of of of these sorts of things now and the definitions so the way people define layer twos at least a lot of the people that i've seen they define layer twos as something that is directly secured by ethereum's layer one so an optimistic roll-up or a zk roll up something that lives on ethereum l1 and that if something happened to the l2 you would be fine because l1 is actually what's securing it side chains are typically defined by something that has its own validator set that is completely separate to the ethereum network or to any other network so technically speaking bitcoin is a side

chain to ethereum but bitcoin has its own validator set its own miners it is not secured by ethereum in any way um bsc is the same thing you could say bsc is a sidechain but it has its own validators at those 21 validators any of the other networks you can say are a side chain but they are not secured by ethereum so that's what the sidechain kind of definition comes from and then there is the polygon pos chain which is which is what is technically called a commit chain but there are debates around whether a side chain and a commit chain are different like how they're different all this sort of stuff um but a commit chain what that does is it commits itself to ethereum and i've explained this before how you know all of the um all of the logic for staking and slashing and

and all that sort of stuff for the polygon pos chain lives on ethereum it commits itself to ethereum periodically and all that sort of stuff but the argument centers around does this actually provide extra security um for the polygon post chain and in in in a technical sense it doesn't right what provides security to polygon is the validator set the 100 plus validators that uh the proof of stake validators that are securing the network but then you can you have to look at the bridges right there's a bridge that goes from ethereum to polygon or two bridges uh one of them is secured by the pos chain uh the other one is secured by plasma the one that's secured by plasma has a seven day withdrawal delay so not many people use that the one that's secured by the pos chain has a um

it doesn't have a seven-day withdrawal but it has some delay it has some delays in there um but that bridge is also controlled by a five of seven multisig that um you know polygons team members and their associates have ownership over so that multisig so technically speaking five out of seven of those uh multi-six signers could collude to steal all the funds that are locked up in the bridge uh in the bridge smart contract so when you kind of look at that holistically you can see that okay objectively speaking the polygon pos chain is not as secure as ethereum layer 1 and if the l2 is built right like it is not as secure as ethereum l2 now there is another point to this which is basically what's ready today as we all know

optimism got delayed to july for their public mainnet arvitrim is coming soon they've got to develop a mainnet going live on may 28th but that's still you know scaling has been like a thing that's needed for the last few months so that's that's still coming like pretty late to the game not to say that these teams could have worked faster have done things faster it's just the nature of this sort of stuff is that the people are demanding scaling now and people are working to wait around for these solutions to go live because the fees on ethereum got way too high and it priced out a lot of users and we were bleeding users to things like bsc but anyway on that note as well we have stockwear coming out they've come out with their standalone solutions like dydx and stuff like that but they're generalized evm compatible

uh a kind of like layer two solution isn't due for a little while i think another few months still same with zk sync with their zk porter release i think august or something like that so my point is is that people wanted to use something that was ready today so for me i was like okay why not we just get users over to a socially and politically aligned platform like the polygon pos chain rather than funneling them to something like bsc which is completely centralized it doesn't have a permissionless validator set it doesn't have 100 plus proof of stake validators it has 21 authority nodes essentially that um that basically belong to binance so you know it's very centralized and also that you know cz and binance in general are hostile towards ethereum

and do not and want to flip ethereum and want to actually be more valuable than it whereas the polygon team and the polygon ecosystem is nothing like that so that's why you've seen a lot of ethereum first kind of projects like rv and curve and m stable all this sort of stuff they're fine moving to polygon because they know that polygon as an ecosystem is aligned with ethereum socially and politically yes it is not secure as secure as ethereum's l1 it is not secure as like the true l2s the proper l2s that are built on top of ethereum layer one yes it has central points of uh points like the bridge and stuff like that but it is still infinitely better than hostile ecosystems like bsc like i mean even solana for example like all these other ecosystems

they are not in it to be additive to ethereum no matter what their marketing says they want ethereum's market share they do not want to to be additive because they would be very happy if everyone moved from ethereum to their platform because that would mean their token goes up in price they get more activity blah blah blah right the rest is history there so i hope that gives like a bit of a a summary of like the debates over the weekend and what people are kind of debating and what they're fighting about as i said i'm an advisor polygon so uh obviously i am biased but i've tried to be as truth and truthful and fair as possible here uh while not presenting anything in a you know in a in a you know too you know good of a lie or a bad of a light or whatever

um you just have to understand the trade-offs of these solutions but you also have to understand the the nuance around it which is the political and social aspect which i believe is even more important than the technical aspect of these sorts of things because at the end of the day this entire ecosystem is run on human by humans the full nodes the the things that keep the network going the mind is everything it's all run by humans the code is written by humans all the apps everything humans humans humans right i know i said that word a lot just them but basically that's what you have to remember and i think that's the the clearest way that i can put it and that's the way you navigate through this ecosystem so yeah anyway highly recommend going and reading this thread because it gives a technical

breakdown of the different l2 solutions it's really great there were some great discussions spawned off of this as well you can check in the quote tweets here um but yeah i'll link this in the youtube description for you to go check out so speaking of l2s actually uri from starkware put out a great tweet here something that i've been talking about a lot lately where he says ethereum will become the zkp or zero knowledge proof verification layer that's the end game almost all other blockchain computations will be done on layer 2 and that will happen way faster than you realize this is what i've been saying for a while that most users are going to live on layer two they're not going to live on layer one because layer one is never going to scale to meet user demand for on ethereum because we want to stay as decentralized

as possible we want to stay as secure as possible those are the two kind of things that the ethereum ecosystem will never compromise on and if they did i put out a tweet the other day and i said i would be the first at the door if ethereum compromised on this because it would go against everything that i hold dear and believe in so from that point of view the l1 ethereum will literally just become the chain that secures the proofs uh for for layer twos and all the users will leave at layer two and have very cheap or free transactions and have an extremely scalable ecosystem because of that so yeah just another note on the layer two debate here i won't kind of spend too much years i've spoken about a lot of this before but uh yeah and there's a bit there's a

few more discussions in the in the thread here so you can check that out as well so anish from apolly chain capital here put out a great little thread that he said that he success successfully ran a 51 attack against uh george hodgson's cheaper.org ethereum clone chain now for those of you who don't know what cheap eath is it's essentially a i mean i would say it's just like an ethereum test net he george forked eth um you know basically removed like all the limitations to scale it up and it's basically just a centralized version of eth and i'm you know you can just treat it like a test net but because of that it essentially has a very low uh hash rate right and a very low security so anish was able to rent

uh it to rent enough um hash rate to control 72 percent of the network yeah and do a few fancy things i'll leave this this um thread in the youtube description if you go check out and read about it he's also got a video here you can check out but this is this is really fun to see i think that people um often uh underestimate like how easy it is to attack some of these minority chains and this isn't just applying to cheaper it's applying to a lot of other chains out there proof of work chain specifically like ethereum classic for example has been 51 attacked i think two or three times verge as well i think there's a few others out there and that's because they just do not have much uh proof of work uh mine is securing them because the value isn't very high

uh so yeah definitely go check out this one it was pretty uh pretty cool to see the the little experiment that he did here so vitalik uh i think this is the end of the dog coin saga for vitalik yeah but he burned most of his ship tokens today which i think was uh almost six billion dollars worth at current prices so and he concluded a message with the burn and i won't read out the whole thing here but he basically said that he decided to to burn 90 of the tokens and send 10 of it to charity um because he basically uh i think that he he made a funny kind of comment here what he said he's been impressed by how the dog token community's kind of treated the recent donations um and you know he thinks the communities are genuine and he supports

them in doing this uh but he wants to make a statement here that anyone kind of making coins or anything uh to not send them to to him i think he's gonna burn them all from now on um he doesn't want to be uh the locus of power or uh fought for these kind of ecosystems he doesn't want to be the king maker here uh and he says better to just print the coins into the hands of charities um and and obviously talk to them first before you do that so i think this might be an end to the dog coin saga with vitalik at least maybe they're going to pump again because he really did just take out like a massive chunk of the supply by doing this so maybe people view this as a bullish thing and maybe ship's going to pump up

again i don't know these markets are crazy who knows what's going to happen you know if the bull market continues which i think we all believe it will uh things are going to get crazier from here that's for sure so samuel from arari capital here put out a great tweet about arbitram uh and i don't think this was kind of making fun of optimism here but it was basically comparing the two you know leading optimistic roll-up solutions and basically saying that arbitrary is really far ahead of optimism right now because they have better documentation uh zero changes to code required to get onto arbitrary because it's fully avm compatible they have official infrastructure for bridges message passing block explorers and all these info is already ready on the test net and they also have things

like better resource huge usage and they've built a whole new evm without losing compatibility and things like that now the reason why i bring this up is because this is the main reason i think why optimism was delayed because they didn't have any of this ready they didn't have their full documentation suite ready they the the the changes required to the code for projects was it you know is is a lot more than i think a lot of projects bargained for so they had to rewrite some of their code get audits and all that sort of stuff um the official infrastructure and stuff i don't think was ready or anything like that um and i i think just in general it just was not ready to launch for all of these reasons so again not saying what's better or you know than the other but i think arbitrary is

going to beat optimism to mainnet here because as i spoke about last week they are going live with the developer main net uh on on ethereum l1's main net uh of their layer two at uh on may 28th and then shortly after that i think they're gonna go live with the just a public mainnet that everyone can use so they're definitely gonna beat optimism to the punch here and i haven't even heard anything about from optimism lately i really do hope that they come out with something because i like the optimism team i've been rooting for them for quite a while but their silence and you know it doesn't doesn't bode well for them i think you know these these kind of things are all about instilling confidence in people and making sure that people are kept up to date arbitrary does a much better job of that

than optimism and i just hope to see optimism step up and and kind of like improve here so elias from bisontrails has uh i i don't know if he built this dashboard but he basically tweeted about this new dune analytics dashboard called eth2 liquid staking which basically tracks the amount of eth in liquid staking pools now the pools that they're tracking are steaker cream shed steak lido steak wise steak phi and steakhound yeah now the leader right now is lido i'm sure a lot of you are using lido i do want to make a note here that none of these pools are decentralized the only one that i know of that is trying to be decentralized is rocket pool even though they're not live yet uh but essentially most of these are just like

you know custodial or have some sort of multi-sig set up i know lido uses a mechanism where they'll take the ether in they'll issue you your st which is a derivative of that eth and then they'll send that eighth to one of the various staking pools that they've partnered with i think there's a few of them um but yeah just good to keep in mind there but now we can see how much is actually in these pools so about five just over five hundred thousand um eighth is in these uh e2 pools so as i said before 4.5 million is is locked in eth2 right now total so and this and then so you can take out 500 000 that's locked in eth2 pools then you can take out how much is is kind of locked through centralized exchanges and you can get to the number of you

know home stakers or at least people that are staking not through an exchange or to a staking service provider i would wager off the top of my head it's probably half half and half right now which is good i actually think that's quite healthy but we need to make sure to not give too much power to these centralized stake pools or even the delegated pools or anything like that and especially not centralized exchanges and i've spoken about this a lot in the past so i won't go through it again but i just think it's this is a cool little dashboard and of course you'll be able to check this out in the youtube description below so mabel finance announced that their defy lending protocol for corporate institutional capital is now deployed to the ethereum mainnet there's a lot of cool stuff happening here um they've got a an official liquidity

uh pool uh sorry liquidity mining program going live as well and a pool that's capped at 15 million dollars of liquidity so i think they're doing a a kind of like structured launch here for security reasons which i really really appreciate uh but this liquidity mining program will be going live on may 19th there's a couple of days uh away away from now which is really really cool to see and then on may 21st uh the lp funding will be open to the broader maple community and defy ecosystem here so yeah here are all the key dates if you're wondering about maple protocol you want to learn more about it of course you can check this out in the youtube description uh but this is really really cool to see them finally go live here and a disclosure i am a seed investor in maple there are

homegrown aussie projects down here so definitely want to support as many of those as i can and uh something that i definitely think is going to be a big kind of thing um you know essentially what maple is a decentralized corporate debt marketplace if you don't know what that means they have an introduction which they've linked here but you can go read that uh for yourself uh you know after you're done watching the video so gitcoin has announced uh that it is now time for them to decentralize so in this blog post they go over their philosophy about why they wanted to centralize get clean as a platform and what they want to do with it they didn't mention anything about a token but as we all know when you want to decentralize something you definitely have a token to do that obviously because dows and things can

run off tokens and it's better for coordinating capital and and humans as well um but i think this is cool i mean to me git coin is very special to me it has funded me through ether and the delegate i've had plenty of donations i've used git coin a lot in the past to fund projects their mission is their core mission is very in line with ethereum's core mission and values and there's a lot of cool experiments happening on on git coin like quadratic matching and they have ambitions for to do much more than that this platform shouldn't be centralized in any way it should be fully decentralized and i say that as someone who's a a multi-sig um uh sorry one of the multi-sig signers of of the git coin multisig uh i don't like that it's a multisig i would

rather see this decentralized i would like to see the community have like a much bigger say here and i would like to see uh the community being much more involved in git coin and the way you do that is you decentralize it you create a dow you slap a token on to incentivize people incentivize uh human capital coordination and there and away you go but anyway you can read this post for yourself of course uh but i'll move on to the next update so framework ventures one of the top uh d5 native funds in crypto announced that they have raised 100 million dollars for a new fund to invest in uh blockchain-based fintech startups here now framework is famous for their chain link investment they were very early on chain link i believe they got in under a dollar or

at least one of the earl one of the even at the ico or something like that but they were very very early on chain link but they've made a bunch of other investments in the space i can't remember exactly which ones but they have a ton of investments here um if i go to their kind of like website here and go to their portfolio you know look at these are all names that we all know and love are there chain link d hedge dodo and i won't go through them all but there's a bunch here synthetics right all the ones like zappa uh yearn and stuff like that they're definitive they deeply understand this space so i'm really great to see that uh they've been able to raise an extra 100 million to deploy to all of these teams building d5 specifically on ethereum i think their

their main focus is really on ethereum which is really cool to see so congrats to them for for this race here all right last up here we have a uh tweet thread from tim roughgarden who was one of the people who did deep research or at least i think he's the person who did the deepest research on eip1559 he was commissioned by the ethereum foundation to do this but anyway this thread that he's um kind of like put together here he's kind of going back against this kind of fud that arthur hayes put in his piece about 1559 where he basically says that if if ethereum burns too much each it could become a problem for for ethereum because there wouldn't be enough eth to you know power the ecosystem essentially now for those of you who are aware of

how ethereum ethan tokens work these things are divisible so it was very weird to see arthur kind of pen this because you can divide eighth to it's either 16 or 18 decimals i always get tripped up here but anyway you can divide eighth down like a lot right so even if there was only one eighth that existed in you know because we burned all the other amount of eight which is pretty much not going to happen but let's just say there's only one eighth left you could still fund the entire ethereum economy and everything else on that one eighth now what this means for staking because staking has a hard 32 ether limit uh sorry requirement i don't know maybe we basically change it from the 32 requirement to something else

but i i honestly i don't see us even getting anywhere close to having only one eighth left right these are just problems that i don't think are ever gonna rear their head could you imagine if we get down to something even like a million eighth left right in circulation do you can you imagine what the price of eighth would be in that case like for for for context here the current supply of eighth is 115 million and the current price of e is 3500 the current market cap of 80 is about 450 billion or something like that so if we got down to just one million eighth which is it is impossible i don't even think we would get there but you know let's dream some bigger dreams here and say that we went down to a million eighth right and then we adjusted it for the same

market cap say each market cap didn't move at all say we stayed at a 450 billion dollar market cap but we had a million uh a million coins in circulation instead i'm just quickly doing the head math here i'm pretty sure the eighth price so if we actually if we just times the current eighth price by 115 or let's just do it by a hundred so that math's easier for me in my head here if we times the current price by a hundred right the eighth price would be 350 thousand dollars if we only had a million eight here right and then this is just assuming that the the the current market cap uh remains the same right this isn't kind of like going into um you know when if the market cap is going to go up which it will and all that and all that

sort of stuff so when you kind of look at it like that um actually i think the price would be 450 thousand dollars if you take the current supply current market cap and reduce the supply down to one million eighth so from that perspective like that's just absolutely insane and i don't think the price would hold there because think about how much eight is permanently in cold storage or permanently in d5 backing up die because people want to use that for expenses or to trade or whatever permanently in eth2 now just i don't know like just thinking about that as a thought experiment is funny but anyway the tldi here you can read this thread is just explaining how the ethereum gas market works and how it would still work even if there was just like uh one eighth in circulation because you can divide eth you know by i think 18

you know to 18 decimals and things like that and you could divide and that could be expanded right you could expand that to 100 decimals there's no reason why it can't be done um and i think what's what's important to emphasize here is that the ethereum ecosystem and culture is basically that if something is is critically wrong if we need to change something we will do it we're not just going to sit in our hands and say well i mean that's a problem for the future if we foresee this becoming a realistic problem we will work to rectify it as a community as an ecosystem so i think that's important to emphasize as well but anyway you can read this through for yourself in the youtube description i'm gonna end it here so thank you everyone for listening and watching for today's episode be sure to subscribe to the channel if

you haven't yet give the video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone