ROLLUP: Bankless Arena?! | $600M Crypto Hack | Prepare for the Merge | PoS & PoW Misconceptions

Transcript

can't wait to tell you who put their name on the next crypto sports arena i'm super excited about this dave and i know you're smiling too i know you're excited i know i kind of want to skip right there but it goes in the news section happy friday morning bankless nation it is the last week of march or is it the first week of april i'm not too sure david but i do know one thing it is time for what the bankless weekly roll up ryan where we covered the entire news in the last week in crypto which is always an ambition ambitious endeavor yet we persevere nonetheless covering everything that happened in the markets the news what's going on uh the the nft shenanigans the regulation shenanigans we cover it all here on the friday

bankless weekly rollup absolutely fastest way to get your crypto digest and some hot stuff hot topics this week it's gonna be a fun week it's gonna be a fun week look we gotta talk about more crypto companies putting their names on sports stadiums okay who could that's happening who could that be april 1st it's happening we're going to tell you about the biggest one yet i think this is the i think this is bigger than ftx i think this is bigger than crypto.com this is the biggest one yet and we can't wait to tell you who put their name on the next crypto sports arena i'm super excited about this dave and i know you're smiling too i know you're excited i know i kind of want to skip right there but it goes in the news section uh it's not the biggest in terms

of deals in terms of money deals but it's the biggest in terms of culture i would say i i totally agree with that also uh one of the biggest hacks maybe in crypto history uh the ronin side chain there was an exploit so this was a 600 million dollar plus hack we got to cover that what happened what went wrong are side chains really safe what does this mean for uh axi infinity of course because that's the the running side chain also david there are so many misconceptions out there about two things number one the ethereum merge number two proof of stake we're going to lay those misconceptions to rest and also talk about traditional finance institutions waking up to the merge waking up to proof of stake lots of reports there so a number of things to

cover i'm excited to dive in dave before we get there we should talk a little bit about uh permission list this is a conference and we are uh getting closer and closer i think we're like two months away is that correct yeah the drum roll for permission lists is getting louder and louder may 17th to 19th palm beach florida it's just going to be insanely fun this is gearing up to be a reunion of the bankless podcast and also so many more guests and panelists and speakers some insane content all of your favorite bankless previous podcast guests are gonna be there justin drake chris dixon nick carter eric peters uh who's a huge in the regular in the traditional finance world we had him on the podcast jiho for maxi of course jake schravinski for all the people who

are trying to get downloaded with the legal and regulatory side of the crypto industry ryan selkiss of course what would a conference be without him donnie from ave just had him on the show uh it's going to be the who's who of crypto events uh smack in the middle of the year may 17th to 19th at in miami or in in palm beach florida bankless is throwing a party i'm going to be there vibin ryan and i are going to meet for the first time the number of things that is going to happen at permissionless is off the charts there's not even enough time to talk about it here so you got to get your ticket uh there is a link in the show notes so go get your ticket if you are a bankless premium subscriber you get 30 off which pays for your

entire bankless premium for the year so there you go for that uh and you gotta come you gotta come it's gonna be a huge event i'm really looking forward to it uh ryan i know you're excited for permission that's why are you excited for permissionless all right i'm excited to meet you david that's why that's really why i'm going well the conference is cool and everything but like let's uh let's finally meet in person hope the podcast doesn't end as a result of that um david something else going on our friends at consensus on the nft side wanted to give the bankless nation a heads up so on april 10th it is national youth hiv aids awareness day and mac mac the makeup company is actually releasing an nft collection this is going to be

powered by consensus nft it's going to be dropping on april the 10th and it's featuring art by keith herring the cool thing about this i think is like some of you listening have kind of dabbled around in nfts haven't really gotten into it but this is an opportunity for the nft the first time buyers of nfts to get a cool nft and also support a great cause because all of the proceeds of this nft actually go a hundred percent to support youth impacted by hiv and aids and this is in two forms so one the initial purchase price of the nft and then because nfts are so badass every resale of that nft

2.5 also goes to the cause of hiv and aids and the youth impacted by it there's three rarity levels so there's like a bottom tier of like just 25 nft all the way up to a thousand dollar nft at the rarest level only 25 of those and all of these of course are are super scarce the art is not released yet okay it's not released yet i can't wait to see what these look like but if you want to partake in this at least check it out what you got to do is go sign up i've got the the website in front of me right now but a quick link to that would be bankless dot cc slash m a c capital m capital a capital c

that'll get you there right away uh i'm gonna pick up one of these david because uh it's a good cause man in vitalik's uh blog post about legitimate legitimacy he talked about ways that nft projects can gain legitimacy and it was through donating to causes uh we saw this with people pleasers effort in her nfts like some portion of the proceeds going to uh charity to establish legitimacy a hundred percent of the revenue is going to this charity so extremely legitimate i think is how the conclusion to that yeah very legitimately yeah and this is cool to see companies partaking in this too so it's it's also a crypto saturation story a lot of wins here for everyone um speaking of wins are we getting wins in the market david

let's let's flip to market stuff bitcoin price any wins there on the week yeah we got we got some wins we started the uh the start of the week at 43 000 hit a high of 48 000 of which it almost was at the time of recording except in the last like hour or so we tanked from 47 and a half down to 45.7 thousand dollars still though ryan up seven percent on the week maybe a little bit less maybe like 6.5 percent uh it's a good week it was a good week it's been a good month it's been a good month it's been a really good month like look at this uh and i'll take it i have to say that this year the bearish david weekly roll up which people have definitely tapped into and have been teasing me about uh so far some people

has painted the bottom look some people are calling that a top signal dude i hate to break it to you man but ugh what what's a top signal you mean about the top signal if you uh excuse me sorry bottom signal of you being bearish i'm sorry for the first time ever on a go you go back three to four weeks and you look at the fundamentals of the macro market and tell me how it's in how hard it was to be bullish in that moment like give me a break it was difficult some of us managed to do it though okay david let's talk about eath price uh hopefully we're going up too are we yes yes indeed yes indeed started the week at three thousand fifty dollars hit a high of three thousand four hundred and fifty dollars up four hundred dollars for the

peak but also has kind of retraced in the last few hours here uh we always record these on thursday morning thursday march 31st uh down oh excuse me up nine percent on the week down like two or three percent the last hour to where we are now at roughly about three thousand three hundred ryan you're showing the bitcoin price chart uh just afterwards oops let me flip that uh ether there we go there we go yeah so so chopping around had a really bullish week uh kind of retrace a little bit just now but again up nine percent on the week yeah i was looking at i just look at the shape of the chart it's like that looks a lot like bitcoin about the ratio ratio to bitcoin ratio ratio up up to about 2.2 on the week started last week at 0.07 we

are up to 0.0717 uh 2 up 2 that means i am i'm two percent more bullish how about you that's that's about right that's about right uh there's also marketing we got some some candy charts to show uh in the market monday this week uh put a bunch of charts into the the newsletter and there's just this same pattern that you see across the three most important charts in crypto in my mind which is bitcoin ether and the eth btc ratio uh starting all the way back to i guess i think this this chart starts it really gets bullish in the start of 2021 where bitcoin zoomed from like twenty thousand dollars up to almost 70 thousand dollars and then it went from 70 went down to 36 from 36 went back up to 70 you know ish

i'm kind of rounding these numbers here and then after it hit like 69 the high of 69 thousand dollars and then went back down to 36 000 but now it is again retracing bouncing off that bottom so there's a channel here uh with higher highs and higher lows over time this is a one year long channel and the same channel is seen in the ether price if you scroll down to the ether prices it's the same thing it's the same thing higher highs over time higher lows over time over a really long time frame this is like an 18 month long channel but we bounce right off of that bottom and like you can just if if this channel is something to take guidance from like what is the current top of the channel like for bitcoin it's 75 000 for ether it's 55 200

and the same channel you can see in the eth btc ratio and so if you scroll down once again ryan uh you can see uh yeah just a little bit more uh it's it's there too and so like what happens if the ptc ratio bounces which it did off the floor of like point zero six point zero five five as the absolute bottom again higher lows and higher highs what if it goes up to point zero nine where the top of the channel is like hm question what happened to bearish data david he's nowhere to the scene well like putin putin is absolutely effed he's got no options like ukraine's fundamentally winning there's like peace talks there's peace talks like commodity prices are coming down all of the

bearish reasons have dissipated uh and so like i if you were the person that bought into the fear congratulations that worked out for you look my uh my co-host just makes decisions based on the data and the data has changed right information coming has changed macro looking a bit brighter uh i don't know about like the fed in inflation though i don't know if that's changed that that data point still feels a little bit bearish but but the question there is does that even matter though well sometimes it doesn't matter maybe maybe heavy inflation is actually good for crypto do you want to store your value in in dollars or do you want to store it in uh crypto assets that have nice channels like this um let's talk about the bed index so that's a third a third a third we must be up on

the week it looks like we are bigly yeah actually this is up more than bitcoin and ether defy won the week this week uh up 11 started the week at uh 107 ending the week 128 dollars so defy leading the way this week are you ready to call it d5 season oh god no no i would not ever curse how about how about uh eath gas that's always fun to talk about on a weekly basis we up or down yeah gas prices are up on the week and the last week the average was 22 gwai for the week we are up to 40 up to 40 average gas for the week so gas markets are up again which is a bullish indicator it's always funny to me because i don't know how to feel about gas prices rising

because uh at one level i'm like oh man my ether transaction is going up and at the same time it's like also a bull market signal right block space more valuable yeah yeah revenue going to staking in the future bullish for ether the asset so i'm always of a divided mind with respect to that and i think the market is too market can't figure out whether high eth gas prices are good for ether or bad for ether right it's like people calling it in uh either direction um market sentiment i think market analysis is definitely when gas prices are up ether value is going up i think that's pretty strongly correlated i think that's a i think that's yes and i think that's a that's a bankless

thesis as well that like on the main chain gas fees have to continue to increase over time right and transaction fees will decrease in layer two but they have to continuously increase in uh on ethereum mainnet and that is actually exactly thumbs up though yeah exactly one direction or the other and that is actually the bull case for ether the asset when you run the numbers when it becomes a capital asset anyway we'll get to more of that later but uh let's talk about some other market news uh one is that anchor which is a d5 protocol money market money market borrowing and lending so similar to comp similar to uh ave compound or ave it just topped ave leapfrogged ave with 14 billion in total

locked value you can see it here on d5 llama so there's ave there's anchor only only maker is higher lido and curve those are the three d5 protocols that are higher than anchor at this point and this is all coming off of um this terra explosion this ust explosion that is uh tara's stable coin ust and of course the last two weeks we've been talking about how do kwan and the terra ecosystem is planning to backstop this algorithmic stable coin rather than being backstopped by the meme narrative price of uh the luna token backstopping it with billions of dollars of bitcoin that process has started with these bitcoin buys i put

this tweet out there because i feel like this is a conversation we need to have on bankless is tara ust the future of crypto money or is it a ticking time bomb waiting to explode i think those are two sides of the spectrum maybe the truth is in the middle i'm not sure but i feel like that's an episode we need to have david and uh i think we have some guests line up for that we're in the process of doing that so hopefully an episode next week on this topic yeah wednesday wednesday we're getting we're gonna figure it out we're gonna we're gonna get get the right guess we're gonna have one bull versus one bear we already have had multiple very qualified people very intelligent people well-informed people to raise their hands saying they want to argue either for the bull or the bear

side so we're gonna pick out the best candidates throw them into a zoom together uh and they're gonna fight see what happens they're gonna fight yeah uh and so that's gonna happen on wednesday um and you know just some comments ryan like dokwan on twitter has been like i'm gonna call it icarusing uh he's been icarusing pretty hard uh and like he's been kind of a bully like this has been something that people have noticed it's like dokwan's being a bully on twitter and it has been as a function it seems to be as a function of tara price luna price as luna goes up dokuan gets even more confident just yeah i think i think he's icarus thing man i think i think this is like there's so many top signals right now for tara but what am i what do i know i'm just

neath maxi so there there there is a thing called bull market goggles i think and like your price has exploded in the in the way that it has it's hard not to let that um you know make you feel like you have this sense of invincibility but look this panel is is for us to really discover this this bear in bull markets to understand a bit more about the usc ecosystem arguments on both sides i'm always worried about algorithmic stable coins just in general it's because like all of the past experiments have failed if i had explosion sound on my sound board i would have played it by now they have right in in various ways and maybe this time it's different if it is different let's try to understand how and i do

think that there are models for successful models for algorithmic stable coins out there um it's just let's see i prefer the ones that are maximally trustless yeah uh when we're doing that and and uh certainly transparent anyway we're going to dive into this and hopefully surface both sides of the argument for you guys in bank list so so we can all learn together we'll see if uh this is icarus or if this is like the the next new thing and this time it's different one last comment on this uh uh ryan popquiz who was the last extremely confident person on twitter dokwan put out a tweet by my hand dai will die as in die from maker dao you know he just wants to have ust be the

the perfect decentralized trustless stable coin to dominate the market so he tweets out by my hand die will die so pop quiz who is the last uh extremely confident aggro builder on crypto twitter to uh talk negatively about maker doubt well that that's gotta be danny uh cessna yeah and what happened three weeks later i mean i don't know where's danny you know where is he come on the podcast i don't know where he is i don't know where the frogs are um yeah it does i'm feeling a little bit of that energy yeah right maybe it's different look there are some like personalities that are just like that you know elon musk of the world he's actually like building things but we'll have to see we want to unpack this a little bit more another

similarity is that dokwan also has an invitation out in his twitter dm so come on bank list which he has not yet replied to so there's that well we'll see uh d5 pulse index the dpi this is huge okay this is huge this is an index put together by a d5 protocol called index co-op we're big fans of it dpi is actually part of the bed index as well it's an assortment of the top blue chip defy assets on ethereum it was just listed by gemini as a coin so uh along with you know index itself and maple and fracs and some other coins they are listing the first d5 index and i think david

this is the first defy index to be listed on an exchange pretty big milestone here yeah this is something that the index co-op and just d5 in general has really been looking for for a really really long time it's hard to get liquidity and demand for dpi the d5 index when it's stuck inside of dpi the uh in in stuck inside of defy like you have to actually go buy on unit swap which means you have to take self-custody of it a lot of people want indices products like dpi but they also want it to be inside of their centralized exchange with centralized custody uh and dpi has been around for over a year now and hasn't been able to break into the centralized exchange marketplace uh for for reasons uh there there is some like risk involved because in theory like the index co-op can just

change everything about the dpi so there's some there's some risk involved for centralized exchanges to list this that's why it's been slow but finally we're getting the dpi into gemini so hats off to gemiini thank you for getting out there we love you love you guys uh and just like come on let's let's let's get more going because there's a little this is all let's list them all just listen i mean look a year old but that this does does also demonstrate like lindy effect in uh indexes right like you wouldn't necessarily as an exchange want to list an index product that's like two months old right like 60 days into this thing you have to give it some time to work out the kinks and figure out what it's doing and and i think dpi has reached that point so it should be a

mainstay right gemini lists it all the other exchanges you're gonna have to compete to list it really cool that d5 products are breaking in here um let's talk about germany for a second almost half of germans are now invested in crypto uh hats off to germany the richest country in europe okay yeah and this is great like um i think once you get 50 of your population and this is like 44 almost 50 it's kind of over for anti-crypto regulators it's kind of over because like the people are speaking with their wallets they're voting with their wallets and they're saying we want crypto and so if you try to push through anti-crypto legislation you're going to have a much

stiffer resistance then when you tried to do that in the first decade of crypto when everyone thought it was like scam money and only one percent of the population owned it so to me the most bullish thing is for crypto to a be understood as we've said before but b to be owned that is super bullish so easy yes um yeah uh germany and uh really europe at large has always been i think a little bit ahead of the curve a lot of a lot of uh developers in germany so very strong like just community there um so cool that's cool i uh wish we could get there in the us i don't think we're at 50 yet but this is cool this this might take us there stuff like this this is rac grammy award-winning artists had him on bank

list before do you want to read out this tweet david yeah he goes i've personally made 12.5 eth about 40 000 which is equivalent to almost 10 million plays on spotify rac would have needed 10 million plays on spotify to make forty thousand dollars and he just made 12.5 eath in his uh you know number of drops if you scroll up ryan it'll show up but what he's talking about uh but like his nft drop on sound xyz made ten eat a hundred editions for point one each uh point one eath each for three uh three hundred and ten dollars a piece uh and so in addition to royalties on top of that two point five ethan royalties this would have taken him 10 million plays on spotify now i am a huge uh rac fan and so and i'm actually just since i already

have spotify up i'm going to go to lrac on spotify we're going to see how many plays that he got on his number one song 44 million plays on his number one song uh and so that is and so he's got a number of uh and he's only had three songs above 10 million plays each uh and and that took years for him to establish those plays and he did this in mere minutes uh nfts in crypto and just tokens and decentralized trustless programmatic finance putting money into the hands of artists yeah this is super cool he said this too on the tweet so yes a hundred people generated more income than 9.75 million users let that sink in this harkens back to our conversation we had and i would

encourage listeners to go listen to it if you haven't with lee jin where she talked about forget the a thousand true fans thing a hundred true true fans can make you for you an entity it's like you you can have a narrow fan base of the most 100 like the 100 most passionate people about the thing you're creating completely fund everything you're doing as a creator because these are sort of like the most passionate individuals who are willing to spend any amount and not just spend this amount but actually invest this amount in you because they believe in you this is the power of nfts in the creator economy and i think that's what rac is saying here and demonstrating uh and we there's also we we did a show

with rac meet the nation if you guys want to meet andre great guy great music listen to his music in college um and then also the the episodes that we did with blau also come to mind if you guys are interested in the subject matter super smart guy both of them uh aztecs roll up this is hot 200 no sorry 20k eth in deposits shielded what is aztec why is this hot yeah so aztec is a layer two privacy roll-up it also has a layer one smart contract system but this is i believe yeah this is the layer two twenty thousand ether is now in aztec shielded so that's twenty thousand shielded ether as in private ether this is basically like to take z cash the blockchain but make it into a layer two that's basically what this is uh and

there's some other uh smart contract functioning as well uh and so like this is like tornado cache but even better using zk technology to have private ether transactions which sounds like we're going to be needing even more and more as we go into this highly authoritarian future that we kind of see ahead of us uh so like to remember ryan last i think it was last week or maybe the week before but we were talking about elizabeth warren being super cringe when she was asking uh somebody in congress i'm hearing about like if you have these cross-chain bridges can't you just obfuscate all the ether and like she was making the point that like crypto is making it easy to obfuscate but like she was getting her details wrong about how like crossing bridges or obfuscation anyways it was super cringe she was trying to paint a

narrative the thing i'm a little bit concerned about ryan is like what she was looking for she was attacking she was attacking the wrong source what she thinks crypto all of crypto is is what aztec is building and so like this is a regulator's worst fear it's private layer twos that has complete assurances as to privacy and ownership and payments uh so like once regulators get their minds around zk technology which is going to take a while uh i'm a little bit worried that they're actually going to have some real fodder to fight all right but here's the problem why in the world is it regulators worst fear that citizens actually have privacy on their crypto assets they don't have access to a list of all of the physical property i own they

don't know how much cash i have in my wallet in my physical wallet or gold bars i might have in a vault somewhere in my basement okay uh but they need to know everything about my digital transactions this is like the problem is establishing this as a norm like an outraged norm that elizabeth elizabeth warren and any politician has no right to be angry about privacy of crypto transactions we need to like bust through that as a norm like it's absolutely ludicrous authoritarian and ridiculous that like free private speech in the form of money on the internet would be a thing that's controversial in any western democratic country

you don't need to convince me right i'm sorry the mission is for me i'm not saying that for bankless listeners either i just needed to say that you're totally right that should be the approach i have zero faith that that's going to be the approach exactly same here this is why we need to be active guys we'll get to that when we get to the regulatory section but first man we're going to talk about the sponsors and when we get back oh we got to talk about that breaking news this is happening arenas being purchased by crypto companies we're going to get right into it before we do we want to thank the sponsors that made this episode possible arbitrary is an ethereum layer two scaling solution that's going to completely change how we use device and nfts over 300 projects have already deployed to arbitram and the d5 and nft

ecosystems are growing rapidly some of the coolest and newest nft collections have chosen arbitrarium as their home all the wild d-fire protocols continue to see increased usage and liquidity using arbitrary has never been easier especially with the ability to deposit directly into arbitrarium through all the exchanges including binance ftx hobie and crypto.com once inside you'll notice arbitrary increases ethereum speed by orders of magnitude for a fraction of the cost of the average gas feed if you're a developer who wants low gas fees and instant transactions for your users visit arbitrum dot io developer to start building your dap on arbitro if you're a d-gen many of your favorite dapps on ethereum are already on armatrom with many moving over every day go to bridge.arbitrom.io now to start bridging over your eth and other tokens in order

to experience defy nfts in the way it was always meant to be fast cheap secure and friction free the brave browser is the user first browser for the web3 internet with over 50 million monthly active users control your digital footprint with built-in privacy and ad blocking inside the brave browser you'll find the brave wallet the first secure crypto wallet built natively inside of a web 3 crypto browser web 3 is freedom from big tech and wall street more control and better privacy but there's a weak point in web3 your crypto wallet the brave wall is different bravewall is built natively inside the brave browser no extension required which gives the brave wallet an extra level of security versus other wallets with the brave wallet you can buy store send and swap your crypto

assets and you can even manage your nfts and connect to other wallets and defy apps all from the security of the best privacy browser on the market whether you're new to crypto or a seasoned pro it's time to switch to the brave wallet download brave at brave.com bank list and click the wallet icon to get started ave is the leading decentralized liquidity protocol and now ave v3 is here ave v3 has powerful new features to enable you to get the most out of d5 including isolation mode which allows for many more markets to be launched with more exotic collateral types and also efficiency mode which allows for a higher loan to value ratios and of course portals allowing users to port their ave position across all of the networks that ave operates on like polygon phantom avalanche arbitrary

optimism and harmony the beautiful thing about ave is that it's completely open source decentralized and governed by its community enabling a truly bankless future for us all to get your first crypto collateralized loan get started at ave.com that's aabe.com and also check out the ave protocol governance forums to see what more than a hundred thousand dow members are all robbing about at governance.avey.com all right guys we are back with the releases of the week this is uh this is a hot release david it's been a long time coming ryan look i feel like we should just maybe get right to the press release here because this just dropped this morning this morning okay first day of april this morning wells fargo arena is now the bankless

arena david do you want to read this press release here yeah the arena for the philadelphia flyers and the 76ers is the that arena in philadelphia is now bankless arena we got it we got the name we did it the bankless arena okay first ftx did it mm-hmm then crypto.com now bankless we are just taking it back from this we don't we didn't care about any other arena but it was the wells fargo arena that their naming rights happened to have ended this year and so we submitted the bid we we won the bid uh we was one it's not the biggest naming rights deal we don't have we don't have ftx money we don't have crypto.com money but you know we we were early to eat we have some money

and there you go and so uh wells fargo arena now bankless arena uh six six is f six f yep uh last minute bid as well citadel ceo ken griffin tried to beat us out for this internet video that was a nail biter yeah yeah absolutely but uh managed to do it guys all of the details are here for you in the press release that we just published on bank list so we'll include a link to that but look this is more evidence that crypto is here to stay you know what what should we get next we got an arena what's next oh god i don't know let's get a whole country buy an island start with an island the vanquish island totally worth it hey congratulations man

like pass pass on the back thank you to the bankless community uh and everyone that has listened to bankless and all the sponsors for bankless uh we couldn't have done it without you uh you know this is crypto taking over you know we're we're putting our names on places and bankless is next up thank you thank you spf it just has a great ring to it yeah i can't wait to see the flyers play man it's gonna be awesome i love sports anyway we we should we should move on okay because that's a big deal um that's a big deal but there are some other things that are happening in crypto as well apple pay integrating with metamask this is not a super big deal but it feels like a big deal tell us about this yeah so uh this is an integration with wire w-y-r-e right into

metamask and wire has this widget that allows you to buy i think up to like five hundred dollars worth of ether uh using apple pay uh and now it's hooked right into meta mask so you can now get apple pay into metamath to buy ether and other tokens straight from straight from your credit card straight from your debit card using apple pay and so this is i think this is going to be especially useful for activities on layer twos because you know 500 of ether on the layer one uh isn't too useful um but then things like gaming where people don't really care about ether or ethereum but they need to fund their wallet to play games that's going to be really useful this has always been what wire has always been building for towards uh this integration

has been this uh apple pay via wire has been a thing for a while it's just now it's in metamask yeah it's cool it's just greater access to fiat and onboarding that into crypto is awesome uh open c just added solana nfts this week and of course solana nfts shot up in price many of them the floor prices have risen for sure openc calling this the best kept secret in web 3. multi-chain nfts that is a thing now and openc is supporting them whether it's arbitram optimism uh polygon solana avalanche nfts everywhere on all of the chains seems to be the direction we're moving in yeah openc has just is just killing it on the execution layer kind of a bummer that

solana is an evm compatible right because then you have to have an alternative wallet like i have my trustless date openc account where everyone can go check out my nfts and that's my ethereum address for my nfts but that's a different wallet for my solano wallet which i don't have but if i did have one it would be different just because it's not an evm thing but i'm assuming they're eventually going to integrate avalanche and that will be the same wallet um so things like that but anyways open c uh blockchain agnostic uh integrating wherever there is nft demand as you would expect one of the features we were talking about earlier is like how do we get privacy on shade so we're talking about aztec um this is another interesting solution to privacy on chain it's privacy it's also identity polygon just unveiled an identity service that

leverages zk proofs so this is the ability to check credentials of an individual polygon user without revealing private information kind of useful uh also i think my take on this too is that some of these side chains like like in ecosystems like polygons and these layer twos are going to compete by adding on interesting services right so this is like a layer two side chain adding identity as a service on top of their chain of course ethereum doesn't have that natively baked into the protocol

some some chains layer twos might decide to add oracles for instance price oracles i think this is going to be an evolving landscape of all of these layer twos and side chains kind of competing on the feature level in order to to win against the competition because it's a it's a pretty um competitive world out there survival of the fittest and so everyone's trying to carve out their niche in their area and i think adding features like identity are one such way to do that what's your take unlocking and solving identity in ways that developers can build on that and and bill just using that identity primitive is going to unlock so many use cases some we already know about but many many more we don't know about because we haven't had that unlock yet so many people are working on this

polygon's working on this disco.xyz is working on this identity as a primitive is absolutely massive and it's really going to be one of the things that elevates the metaverse to the next level so and this is kind of why some people are starting to meme social summer 2022 they're seeing the writing on the wall as the infrastructure is starting to be built out yet uh i think summer's a little bit early but like social web three it's on the horizon and it's gonna be great yeah it's fascinating to me that all of these features seem to be being built on the execution layer as well like we'll never see an identity service on ethereum main chain we'll probably never see like a centralized oracle service on ethereum main chain either which is in my opinion a good thing correct keeps the protocol base level protocol less complicated uh b and

b formerly binance chain they are launching application specific side chains to reduce network strain so this is b and b chain which is a side chain also launching what's a side chain okay right that's kind of like a semantics thing ryan what is a side shape right and i i i don't personally see um bnb as kind of like competitive with uh more decentralized alter even layer ones but even alternative layer ones it's like like 21 validators all of which are like mostly owned or like somehow carteled by uh bn by binance um so effectively to me this is a side chain some might call it

an alternative layer one semantics but it's funny that they are expanding by launching other side chains right as soon as bnb chain gets congested and demand in too much demand they start to become modular so plus plus one to the modular blockchain thesis uh this is what this is um you know centralized version of modular blockchains probably has a niche to fill i guess that's probably i i i think this is less modular blockchain to me like modular blockchain to me is where you're you're actually like building a stack in modules this is like a network of monolithic blockchains to me you're just like stringing together monolithic block chains as science it's a step it's very it's a small step on the spectrum of modularization

towards the modular side but yeah it's like one step on a very long journey right why not be a layer too i don't know you could do that too they don't want to bend the knee they don't like opera don't like bending knees opera taking a giant leap into web3 they are adding solana polygon starkx and others this is opera the browser it's like a low percentage market share browser it's like you know two percent let's call it browser but what i love about this is um the other web3 friendly browser is brave and now we have opera and we have brave and they're both competing against one another in a race to build features fastest where google chrome just sits there and it's like i have all the markets here i don't have to do anything i don't you know i'm just like the

incumbent here uh and these two operating these two browsers are like battling it out to be the uh the winner of the the web three movement and the change that's happening yeah web3 integrated web 3 native browsers has got to be the way forward in the browser landscape it can't just be with extensions and so i think we are on the very beginnings of like a new age of what a browser actually looks like and like you said it's just opera and just brave and opera is doing things that brave's not doing so like opera kind of like the dark horse crypto like a dark horse browser i guess because they were basically in last in terms of market share they had to kind of do something but they're doing the right things so like nice job nice job i always thought it would be cool for like

a wallet to become big enough to go back in the other direction and like go buy a browser browser or go build a browser or something like this right metamask browser that's a great brand for a browser that be badass i love that uh i don't know anyway it's good to see we're starting to see it um also defy saver so this is an app built on maker they are adding automated stop and loss and take profit options for maker vaults what's cool here is just you know we don't talk about it very much but on all of the base protocols particularly ones that have been around for a long time like maker an entire application infrastructure is being built out on top of these things to make the protocols easier i think we've got something else

on maker later in the episode but it's just cool to see cool yep features being built into d5 more power for the users you'll have to see it raises raises ready for raises raises some big raises this week yeah a layer zero raise one billion dollar valuation yeah ryan i raised a billion dollars for my podcast did you know where do you think we got so that's how you afforded the arena that's exactly right um okay so this is a16z ftx and sequoia leading 135 million dollar round for this layer zero thing what is layer zero uh layer zero is a other than the bankless podcast exploring the culture behind the people behind projects rather than projects themselves is also a blockchain interoperability network it's like sub it's like consider layer zero

as in like you know the subtraining network between blockchains it's kind of a semantics debate as whether it's so that's a layer zero or just a different layer too it's a bridge man it's just a bridge uh but anyways crosstrain composability layer zero enables developers to build decentralized applications that simply weren't possible before says ali a general partner at address and horowitz um but yeah i mean if you believe in the blockchain multi-chain poly chain interoperability world this would be right up your alley this makes a ton of sense um i'm bullish bridges in general bullish bridges you know uh in our conversation with olaf though okay which which that episode is coming yeah unreleased not next monday but the the monday after this is olaf at polychain he actually his thesis was that um

bridges could actually become competitive with layer twos and layer ones and actually host their own applications which was kind of a novel idea to me but maybe explains the aspirations for a one billion dollar evaluation because this is definitely layer two territory now it's like uh a one billion dollar evaluation we already have a unicorn in the bridge world which is pretty uh pretty crazy to see yep congrats to those guys um avalanche they just launched a 100 million dollar creator fund with grimes that's elon musk's uh they still together i think they're i don't know they're married right okay cool yeah i don't know they have a yeah they named they named their kid hella weird yeah yeah but yeah exactly yeah that's

that's all you remember anyway grimes is in it web it's a web3 platform uh what's interesting about this story david uh yeah so this is a 100 million dollar fund coming out of the avax token uh and they are just building out web3 social open op3n uh kind of in the same vein as the web3 social that we talked about just a second ago but also on the panel that we had a hundred million dollar initiative to for creatives to build projects on avalanche as the blockchain network grows his profile with non-crypto natives um that is the story i got some takes about the token right unless you tell me what it takes i mean my only first take is like web3 socials hot this has a little bit of do you remember

when eos the eos platform announced yeah voice right and they bought like a domain name and everything and they invested millions of dollars it wasn't 100 billion dollars at that time it was less now we're at 100 million dollars but what do you think this means for uh for the token for avalanche okay look at that next paragraph uh named the culture catalyst initiative the first of these funded projects paid out of the network's native token avax right so this wasn't a raise really actually this was just a token sale of 100 million dollars of the avax token to fund this initiative ryan do you know the inflation rate for the avalanche blockchain and the avex why don't you tell me because that's hard it's hard to uh divine that i've looked in a few places haven't they don't figure it out yet according to

missouri the avx token is inflating at 26 percent per year and so that means that there in order to sustain its current price 26 of the value of the market cap of avalanche needs to be turned into buying demand for avex's to maintain its current price at the same time they are selling the avax token to fund all these development initiatives you know investments investments into the ecosystem you know you got to you got to invest in yourself to grow out the ecosystem but like i'm just getting flashbacks of the 2017 ethereum ico mania where so many icos had just stockpiles and stockpiles of ether and it that is the reason why ether went from fourteen hundred dollars down to ninety dollars because so many icos had

to sell their ether to pay for taxes just to sell it at all just to give to fund their teams consensus had to do this to stay alive and so like i'm i'm seeing the inflation rate of avax which if missouri is correct at 26.6 percent and they're doing all of these raises by selling the token uh and like there's a that is a lot of selling pressure bro like how is that getting absorbed that's that's the thing i think that um people need to remember that issuance isn't free money it's selling pressure issuance is selling pressure ultimately and at some point that can keep you know catch up to you and so the thing is like i guess maybe less is never not not never do this sort of thing but make sure when you do it you've got to be

strategic you're very strategic and you've got a return on capital story so um but that is a lot of issuance and you know some people might say well this is the problem with ethereum ethereum never does these sorts of investments and that's why more like centralized alternatives like avalanche and terra will overtake ethereum i don't know i i don't know if i'd buy that um i guess we'll have to see what happens i mean they can definitely pay developers way better than the ethereum ecosystem has because of uh like decisions and actions like this and also because they have just a ton of vc backing um if you go look at the avax price track you don't need to pull it up like it doesn't look like there's any selling pressure like it it's a bullish looking chart which is kind of confusing to me like

you don't that is a discrepancy in my mind of the chart looking kind of bullish but there's so much issuance there's so much inflation it's insane yeah we'll see maybe uh i don't know maybe that kind of thing doesn't really catch up to you unless there's a bear market so it shows up in bear markets for sure if if we're back in bull market territory they may have a long runway still um let's talk about this delphi digital they just let a 5 million dollar seed round for another money market protocol called zklend uh this is on i think okay starkware what's this oh uh you know i'm assuming it's like an ave type a compound money market borrowing and lending but zeke on a dk roll up so lower

transaction fees higher speeds uh the things that we all know and love all right there's got to be some consolidation here at some point in time does every single chain every single piece of technology need its own money market or and as as soon as there are zk evms then like things like ave which have been battle tested and hardened and have also been progressing in their own rap road maps can just deploy there too um so lots of competition to be had and you know what happens when there's a lot of competition good things happen for the users that's true that's true um okay let's talk about this last one this is uh yeah nifty chat um i was actually in on this uh full disclosure but they just raised a million dollars and uh nifty chat is kind of cool

because it's it's basically like discord and chat room meets web 3 nfts so you can like kind of go here log in do your nft and then you get like let's say you have a cryptopunk right right it will pull the fact that you have a cryptopunk and create a cryptopunk specific chat room or like mini discord oh cool for you which is kind of neat um there's another there's another uh app that does this too called metal link which i also like but it's kind of cool right it's going to give discord i think run for its money which which needs to start adding some nft features remember they tried to do that and then backed off of it a few months ago right yeah so like can i like put on my crypto punk hat and chat as my crypto punk and then like rip off my crypto

punk mask and put on my mf hat and then chat as a different account is that how this works yeah and it's the idea is trying to bring these communities together too so it's like you and all the crypto punks and if i don't have a crypto punk i can't get in i'm not welcome to chat i'm outside the party man nope no i don't have a cryptocurrency do not have a crypto punk yeah but i do have an mf or so i could come chat with you there uh jobs time this is the time of the week where dave and i remind you to get a job in crypto if you haven't already go get a job in crypto it's fun over here it's a good time we have a good time it's real fun it's real fun we're like we're buying arenas over here what

you too can buy an arena all right let's talk about it a few jobs we're gonna read them out because these are hot a co-founder for an innovative omni chain d5 primitive this is ominous who is the hire to be announced in paris oh okay this sounds too good to be true uh wow so go check out that job description uh massari is highly hiring a blockchain engineer for daos a software engineer for market data cynic is hiring an operations manager smart defy senior product designer senior go rust engineer at syndicate senior full stack engineer syndica senior software engineer airdrop labs product manager at noor nori bankless web developer tropicalis a bankless editor for

bankless as well community manager for bankless academy i could go on we've got uniswap jobs uh you just swap labs listings ethereum foundation listings a whole lot more go check out the bank list job board here's the thing so those are curious uh this is actually how i dance in the club so you'll be able to see that permissionless at our party i can't wait to see that in person uh look this job board really works too this is uh somebody from smart d5 saying bankless was responsible for over 75 of our core team hires across all positions it's pretty cool it felt like using cheat codes you can't leave that part out ryan it felt like using cheat codes yeah so it's awesome just let me know that the the talent that is listening to bankless is significant uh and if you want to tap into some of that talent uh

the jobs board is a place where you can as a talented person post your resume with a talent collective or as a employer and post post your job there's a link in the show notes yeah very cool uh let's keep going here david you ready for news time yeah this is uh this is definitely the news of the week other than the banquet arena big news of the week all right take a breath with me um 600 million dollars probably over 600 million dollars that's like three stadiums this week it's like three seconds yeah the ronin bridge has been exploited for 173 000 eth and 25 million usdc the ronin bridge of course is a side chain that axi has been building out

responsible i think for a lot of axis growth over the last 12 to 18 months uh after it launched like cheap transactions um but what happened here david tell us the story yes so this was not a smart contract exploit this was not a bridge exploit of the actual bridge what happened here was that the this bridge was a multi-sig bridge uh which is relatively common and there was a five of nine multisig that controls the bridge it just so happens that these the private keys this was basically a private key theft so the attacker the exploiter found a way into the the nodes the that actually maintain the keys so rather than just like having these seed phrases written down somewhere the

way that this bridge maintained i'm assuming or at least this is in the spirit of accuracy the details are to be determined but these are like nodes in the cloud and these clouds these nodes these five of nine nodes or the validator nodes for the bridge are verifying transactions making transactions to make this bridge work but the private keys are in the nodes they're in the cloud uh and so the attacker was able to they're they're like in hot wallets they're hot wallets yeah five of them uh and the attacker was able to access the cloud servers the the nodes directly and just basically get five of the nine multi-sig private keys so basically there was no malicious attack there was no just like smart contract exploit the pers the attacker

just got all of the private keys uh and so then he just withdrew all of the ether and usdc down to the main chain uh and so we haven't really seen an attack like that because like it's pretty easy to secure that like this is kind of like 101 security i think well people people remember the last bridge hack which actually wasn't that long ago which was the the wormhole bridge hack and what was that like 200 million dollars this is a bridge from ethereum to solana right um something like that and that was actually a smart contract code hack yes that was about this is this was not that that this was this was uh theft of private keys which is we got your private keys yeah type of hack uh so i think um a lot of implications from that that we should probably uh talk

about the first one ryan pop quiz do layer two rollups have private keys they do not sir they do not have private keys they do have upgrade contracts which is an asterisk so there's well i mean this this is kind of a lesson i think maybe we'll get to the learning lessons later but like this is a lesson on side chain security for the crypto ecosystem um maybe a very difficult lesson to learn but let's talk about this too so hacker goes steals 600 million dollars um the crazy thing about this is like imagine like you're a bank robber and you go and you steal from a bank but like what's the last thing you do well like what you're doing everything you do with that money is like it's as

if you're broadcast right on youtube live streamed like whatever you do so everyone knows what you're doing with the money we can't get to you but like we know what you're about to do we can watch it and that's what's happening we're gonna actually see what this a hacker is doing with the 600 million dollars okay so you're a bank robber you steal 600 million dollars from a bank this is what the attacker does next is he deposits all of this i don't know if all the money but a lot of this money into ftx that's like a bank robber robbing 600 million dollars and going to a different bank and depositing it okay while being livestreamed obviously yeah being live streamed okay so why did the attacker do this uh it's people have come to the conclusion that

this is not just some like novice oh i get to have this money now i'll send it to ftx and to cash it out no what's very likely happening is that the uh account that it was deposited to in ftx was like purchase right it was somebody else's account that they got the password or email address for so they were able to access somebody else's kyc fake id fake id right yeah and then like maybe i don't know what they were doing in there like i can't imagine that they sent it outbound to a bank account because they have to send it to their bank account if they want the money what is more likely happen is they sent it into fdx and then withdrew it from ftx which made it invisible to the chain but it made it very visible to ftx so ftx knows where this money is and

we actually there was a tweet out of sam bankman free that said i acknowledge that this is happening we are investigating and taking action if and where appropriate so like they're up to something um it just doesn't seem like a good strategy though like i don't know like you you go steal from a bank and then you deposit it into another bank and the other bank knows right you know it has your funds for some period of time maybe it's been withdrawn but but sort of knows all of your transaction history can like freeze your account can track this down i don't know if this is a good way to escape with the money and that's kind of the the flaw i guess if you are a black hat crypto hacker right now it's just like it's relative it's not easy to go hack money and crypto but like we see these

things every week this is just one of the biggest but like if you're smart enough to hack are you smart enough to get away with it too get away with the money and somehow withdraw it we haven't seen many hackers complete that last circuit no definitely not the other very interesting thing about this story that is just a complete curveball ryan the the ronin side chain was was exploited this had attacked happened on march 23rd wednesday march 23rd no one noticed until the 29th i forgot about that six days later people no one noticed when somebody tried to withdraw they were like somebody's trying to withdraw my ether and right it's failing yeah right and so the east's not there it's not the bank it's not the the bridge fault anymore right

and so people were probably sending eth into the chain because that was probably fine but like getting back out there was no there was an empty vault uh six days six hundred million dollars went missing for six days crypto there's a joke going around twitter i think kobe was the the spawn of this joke where he says oh yeah i noticed that the ronin sidechain got hacked therefore i went and shorted axi but then the token prompt and it pumped and i got liquidated because no one noticed [Laughter] right exactly sorry sorry for the laughter that's 600 million dollars a lot a lot of people have lost money axi has stated that they are going to reimburse people i don't know how they're going to do that but they have stated that that is

their intentions it's always unfortunate when we see 600 million dollars getting lost um yeah this is just that that that is the reason i'm laughing though is because i expect everyone to be reimbursed i mean axi has massively deep pockets and we've seen this before right with the solana wormhole hack uh everyone was just reimbursed is this ultimately just coming out of a16z is a16z footing the bill for this one i don't know actually i i actually think that um what'll happen is they'll get the money back from the because the black hat hacker will find it's impossible to actually and so we'll cut a deal in some fashion or it'll get frozen i think they'll they'll get their money back but if not yeah then i suppose that comes out of somebody's treasure give 580 million dollars back

and have 20 million dollars it's your life is going to be the same yeah black hats it's easy don't be greedy okay congrats congrats yeah you'd be you pulled it off give it back take take the 20 million dollars or whatever number you can settle with and then have a good life well uh some people are worried because this is not the only side chain of course with a bridge there are many one of which is polygon yeah and so this is from oops account muted uh chris black i also have a muted uh by the way polygon is secured by a five of nine multi-sig just like the ronin network he says and they've refused many many times to answer any questions about how these keys are secured somebody from the

polygon team that's a legitimate concern okay if this can happen to ronan can this happen to polygon in the same way why don't you read the response david yeah this is uh somebody who's on the polygon team so is inform like has actual information about this c-i-s-o chief and security officer or something something i don't know it says polygon keys are secured in a very different way than ronin all polygon keys are on offline hardware wallets like a ledger not on a server connected to the internet which is the vehicle for exploit of the ronin sidechain for that storage cold storage good good like how it should be for that reason it's impossible to do a ronin-like attack on polygon uh and the the this person continues on in the next tweet uh no

backup is stored digitally on a device connected to the internet unfortunately there's no way for me to prove this to you so you just have to take my word for it so like obviously the just have to take my word for it is kind of like a hotline and when in trustless in trustless crypto like we don't want to trust people it just needs to be the way that it is but also we can't have the details of the polygon security mechanism public on twitter because then that just informs the attackers on how to do it so it's appropriate that this is not information that's publicly known because then that is a risk vector so in my mind the current state of polygon security if it is indeed an offline cold storage wallets that like perhaps not all of the multi-600s know the locations of the other multi-sig

signers that makes sense uh there is as far as we can tell the security for polygon is grade a level security they've done it right and they're taking it seriously um yeah it's got to be better than ronin but also i think there are some learning lessons here right and the top learning lesson for everyone listening is side chains do not inherit the security of the base chain okay so let me just repeat that for a second side chains do not inherit the security of the base chain so if you move your assets from something like ethereum to another chain and if that's a side chain realize that you are incurring some risk

in that in that move in that transaction you are now in a different security paradigm than you were and i think this this is just like i'm very careful with what i do on side chains right it's like i know some of the risks and i'm not going to be like putting my net worth on a side chain or significant amount of my net worth on a side chain at this point in time and i think at some level the same goes for for layer twos i mean they don't have the lindy so just be careful where you're moving your your money and your assets um the second thing i i think i took away from this is again a reflection that it's really really hard for hackers to get away with chain with with funds on

chain right so um like in this case i don't know that the hacker's gonna be able to get away with it and they they really weren't in the wormhill cold case either and then the third thing i don't know if this is a good lesson for us to take away but it is a lesson that the market's taking away is that if the chain is capitalized well enough the pockets are deep enough you got some of that vc money you got a nice treasury then when something bad happens oftentimes people get reimbursed is that a good thing is that a bad thing like i'm happy for the scenario but it does set a precedent where people sort of expect to be reimbursed and we tend to become more reliant on this this trust dependency here some people say

that's a feature some people that it's a bug i think it depends i sure wouldn't want to see that on a layer one chain i guess on a side chain maybe that's a that's a compromise that uh that you're willing to make but i do get worried when everyone expects a bail starts to expect a bailout there's a big enough you know amount of money that's lost where it can't be bailed out i guess i guess it's appropriate for bailouts to happen in the beginning stages of this whole bridging bridge or ecosystem yeah as bridges get more hardened as users get more informed we would probably simultaneously expect uh bailouts to happen less and less and less but we're at the very beginning stages so i guess bailouts are appropriate um but we don't know if there's a bailout coming on this one that is i think that's just

speculation yeah it's a promise from axi but yeah we don't know the mechanics of it so just so yeah just to wrap up this conversation just some market chatter the ronin token the ron token uh was two dollars and forty cents before the hack and it is now currently at one dollar seventy cents one dollar seventy so down like 30-ish percent not not that crazy for how big of a loss it was the axs token kind of unfaced really it's kind of it's mostly just down four percent it's up nine percent in seven days uh which is a little bit nuts but it peaked at 72 dollars and then the hack happened and now it's at like 63 look this is the market telling us it's not really worried about this event yeah mark is saying it's gonna get resolved

yeah uh without without big loss is a big incident yeah that's that's a big that's a big hack all right let's move on let's talk about some ethereum stuff david i think it's time to clear out some uh misconceptions here and we want to do a few misconceptions the first there's some misconceptions going on about the merge right now and uh we're going through a a tweet thread from uh trent van epps but i think we're gonna focus on maybe five things five misconceptions the merge uh do you wanna take the first one yeah the first one is that stakers get unburnt fees and so not all of ether is burnt in a transaction fee uh and in proof of stake it's about uh it actually doesn't change uh versus proof of

workforce a proof of sake eip1559 on average burns about 75 percent of the transaction fee in the future stakers will get this thirty percent so unburnt fees tips on the execution layer will be sent to stakers that's pretty awesome i don't know that many people know that post merge if you stake you actually get those tips you get the transaction fees passive income um in addition in addition to new ether that's minted as a block reward you also get 30 of all transaction fees which in bull markets can be very significant absolutely um the second thing wanted to highlight this is a misconception a lot of people think that once they uh once the merge happens that they will be able to withdraw their eth from the staking contract uh-uh can't

not post merge okay not immediately post merge i should say so staking an eth right now is a one-way ticket it still will be post-merge you will not be able to withdraw your eth post-merge there will be another update that happens i don't know this could be three months later six months later six is long estimation that i've heard yeah so we'll have to see how long it takes but at that point in time you'll be able to withdraw not immediately i think there's some pros to this which is uh a lot of people are saying well post merged a bunch of the stake death is going to get sold no it's still going to be locked it's going to be locked up but also keep in mind that when you stake that eth is going to be locked it's a one-way ticket you're not going to be able to withdraw

your post-merge so that's the second misconception to clear up yeah the alpha here is that post-merge there is zero net new ether introduced into the secondary market the block reward issuance is going to stakers which is locked because they can't withdraw the fees are going to stakers which is locked because they can't withdraw the reason why they can't withdraw is just reduce complexity uh one step at a time this is a very big deal to merge to proof of stake and so we're just keeping it simple doing one thing at a time letting things sit letting things stabilize and then merge the withdrawals will be unlocked roughly six months later uh in that time in those that six months staking this the yield on staking goes from like five percent to probably like 15 percent and the demand to stake will be 3xed because the yields are

going to be three times higher and so there's going to be three times more demand to stake ether pull ether out of the secondary market to stake it and no ability to withdraw for six months um bullish bullish i think so as well why don't you take the the next one number three the third misconception the merge will not reduce gas fees i think people got this conflated when we started talking about ethereum two versus ethereum one and once we merge we're at ethereum two that's no longer the case sharding will reduce gas fees but that's later that is phase two this is currently phase one which is the merge so the merge is not going to reduce gas fees i'll take the next one this is just a reminder i think if you've been listening to bankless you probably know this but the eth issuance

is about to drop from 4.3 in proof of work to 0.43 that's a smaller number it's crazy that's a lot 4.3 to 0.43 this is far lower than bitcoin like post happenings it'll take the lowest of any blockchain by lowest of any blockchain and at 0.43 a significant portion of that is going to be burnt that's where we get to ultrasound money deflationary eth as an asset because if the amount of eve burnt exceeds four point three percent then we're in deflationary territory negative eth burnt uh on the year so think about that four point three percent to point four three percent that is the eth

issuance in the post-merge world here you want to do some comparisons ryan the current eth issuance rate inflation rate is 4.3 as you just said solana is a little bit above 9 in inflation rate and avalanche as we said earlier is at 26 inflation rate both solana and avalanche are proof of stake but their much higher issuance rate comes from their uh the model the the centralized monolithic blockchains that they have they have so much throughput that they need to issue a ton of currency in order to secure that very high rate of block space issuance more the more you create block space the the more you have to spend on security because you have more block space to secure because they are very very high throughput blockchains because they're centralized they have to issue a

ton ether ethereum is is much more much more limited in block space because we want to maintain decentralization at the base layer that's how you do that therefore it doesn't have to issue as much so it's as low as 4.3 percent the point though ryan of why i'm doing this is that this is comparison 4.3 of ethereum in proof of work mode in comparison to other proof-of-stake blockchains and so when ethereum joins salon and avalanche in proof of stake it's going to be 0.43 percent inflation rate on ether versus solana's inflation rate of nine percent versus uh avalanche's inflation rate of twenty six percent these are we are in different categories it's different economics man and that's not including the burn that's not including the burn

let's talk about the the fifth misconception and uh why don't you do this last one oh yeah this is a good one running a node post merged does not require any eth you can be either a staking validating node and you can add transactions to the blockchain or you can be a listening node and you can uh send your own transactions to the mempool via your own node but you do not in order to run your own node you do not need to add any eth to it it is free and accessible to anyone to run a node uh do you know that's not actually true ryan for avalanche i know i'm trying to not be an east maxie here but like in order to run a note on avalanche and be a validation you have to be a validator in order to access the mempool and see

what's going on in the mempool to participate in yeah you have to stake at avalanche tokens which is reminiscent to order flow for people that own the shares of the network it's a it's a it's concerning to me as to the gating of that information away from the public because the public can't run their own avalanche node yeah i am also concerned about that but this point is really important because some people say oh well it's going to cost thousands of dollars worth of ether to write a note no it's not it's just cost hardware and anyone can run it from a consumer machine uh that's by the way always been a case yes anyone can run a node on ethereum today just go download geth and set it up um dapnode or something else david you know what's cool about this

these misconceptions is they're starting to fade on the institutional side okay so people are starting to get it i don't have a bloomberg terminal or a subscription or whatever is required but uh there is now an analyst at bloomberg who covers ethereum and he is writing some fire content about ethereum uh and there are a few articles that someone forwarded me this week this is one on the how ethereum is transitioning to a global asset this article absolutely nails it uh there's another article on how the dcf model suggests the network asset for ethereum eth is undervalued we just did some episodes with ryan alice and

others on the dcf model we did our dcf model with justin drake over a year ago yes we did that over a year ago our conclusion was that i think ether might be undervalued this is what this analyst says too conservatively ether could be worth 6 hundred well you plug in whatever numbers in the dcf and you spit something out but it's sure a lot higher than it is today depending on the the numbers you put in but like any obvious number it'll be higher and then here's an entire bloomberg article on the the merge how the merge will be a super catalyst i guess all this to say is the institutions are starting to get it it's funny to me because we've been talking about the the value proposition ethan's a triple point money for like probably two years i would say like longer than that if you

go back but on bankless for about two years and it's interesting to me to see kind of the lag time of like institutions starting to get on board and starting to understand this these narratives this is um from our friends at one river asset management and they they bought one of the biggest bitcoin buys in history about a year and a half ago it's like they are uh an institutional hedge fund who is now very crypto focused uh this is what they say about ether ether is being transformed into a low-risk bond asset and it is cheap remember ethereum the internet bond remember all those articles we wrote about remember what we were talking about i remember uh the largest institutional investors are now saying it okay is increasingly clear this is a quote that the future of finance runs on

ethereum with eth as a reserve asset to the ecosystem the institutions are now repeating it uh the narrative is cementing still an early set of institutions but it's out there now um we did our job one of the things i've been hammering about as to one of the most underappreciated aspects of proof of stake with eip1559 and basically ethereum versus bitcoin is like bitcoin is really hard to value it's hard to put like numbers and models around demand for bitcoin uh it's just like do you take it on faith that people value this is really the bitcoin investment thesis with it with ethereum you have the issuance rate you have the burn rate you have the stake rate you have like active addresses for

in d5 you have demand for ether in d5 there's so many metrics and numbers especially when like there's first off the appropriate numbers to actually make a dcf analysis which is very comfy zone for institutions but the sheer number of just things to measure metrics for ether of the asset just is enabling institutions to be comfortable it makes it feel like it's in their wheelhouse which kind of is and it's definitely one of the most bullish things about ether it's like you can actually reason about it with metrics and numbers rather than just like uh assuming that there's going to be sufficient demand for an asset yeah they're like oh yeah we know bonds we know we know equities and we know capital assets oh and this thing performs like a bond like an equity like

a capital asset okay we can value that thing and oops when we plug it in the spreadsheet it spits out a much higher price than the price of eth now that's what's going on look at that we look at the words that they use low risk bond asset and it is i know that's all you need to know that's all you need to know uh let's keep moving though because the merges is coming there's still a lot of misconceptions about this transition from proof of stake to proof of work and i hope bankless listeners got a chance to tune into our episode with lynn alden and justin drake that was kind of a debate on the merits of both sides uh we put together and you wrote a post on bankless this week that dives into four misconceptions about proof of stake versus proof of work and i think this is

information that's worth getting out there why don't we hit all four of these points david what's the first one yeah the first one is uh the rich do not get richer in proof of stake this is a common critique of proof of stake is that it's a rich get richer system and actually it's completely the opposite the fact that yield is baked into the asset allows everyone in the world to democratize access to the upside so there there is no difference in rate of return for somebody that invests one billion dollars into ether versus one million dollars into ether versus a thousand dollars everyone gets the same rate of return and actually in proof of work it's actually the that is the actual rich get richer system because of

how much complexity and middlemen there are between one dollar of capital and proof of work getting translated into one dollar worth of hash power you got to invest in the asics you got to invest in the mining facilities you got to get the the asics through the supply chains you got to have relationships with manufacturers you got to power your facility you have to cool your facility and all of these things have respond to economies of scale and that is ex means that there's significant competition around bitcoin miners which bitcoin is really like but it is actually indoctrinating who can invest more capital into proof of work most so that's a misconception number one the next one is that proof of stake uh is is like equity money and proof of work is commodity money these are mental models

but like in terms of actual definitions it's not empirical there are no empirical definitions so i go through this and i actually make the claim that ether has both commodity-like and equity-like characteristics and bitcoin has mostly neither uh and i explained in the article about that so that's number two uh proof of stake does not give governance powers to stakeholders there is a difference between on-chain governance and token vote governance and proof of stake these are different things there are systems that are have on-chain governance like uh tezos and decred uh and tezos is proof of stake decred is a hybrid proof of work proof of stake but the consensus mechanism and on-chain governance are completely different things and ethereum does not have on-chain governance and lastly dealing with 51 attacks how does a

proof-of-work system deal with a 51 attack if the time comes basically the answer is if somebody can generate enough hash power to ha 51 attack a proof-of-work network they have enough hash power to do it infinite in forever so if the honest miners can't source enough honest hash power to overcome that 51 attack that proof of work chain is dead because the attacker has enough hash power to attack it into into infinity the exact opposite thing is true with proof of stake where if somebody is attacking the proof of stake network because ether is registered to ethereum unlike asics ether is actually at a specific ethereum address the network can identify who is the attacking address where is the attacking

eth coming from and we can coordinate around a fork to do something about that whether it's forcibly exiting them from the validator queue or slashing their ether it's just so much easier to discover and route around an attacker in proof of say than it is proof of work uh so those are the four big misconceptions that i address in this article i did my best to make this extremely digestible so i highly encourage everyone to go read it if you are trying to get your learn on about why the hell we're doing this whole proof of sake thing in the first place i think there is a difference between sort of an opinion on proof of stake versus proof of work and which produces a better money i think there can be some variation in opinion there but there's also some fact that i think uh you lay out in these

misconceptions right it's like it's a fact that proof of stake is not more rich get richer than proof of work right and it's like empirically a fact that proof of work can lead to economies of scale that help the rich to get richer so i think it's important when you're looking at this to like separate the the fact versus the opinion and uh you know some of these misconceptions can be refuted just with like hey have you actually thought deeply about this and here here are the facts as we lay them out now there are some disadvantages with proof of um proof-of-stake versus proof of work like weak subjectivity there's like some more uh deeper deeper answers to some of

these things but i don't think these misconceptions actually hold up under any scrutiny anyway go take a dig go take a look at that uh david let's flip to some nft stuff a few things happened this week number one is tiffany and company apparently they just acquired an nft so tiffany and company tiffany rings diamond rings and nfts i guess this is the same nft that uh budweiser bought like this is one of the rocket ones where you can kind of build your own rocket and each one has their own different brand this seems so off-brand for tiffany but you know the metaverse is weird so all right cool do you think somebody's like there's some consultant out there who's like hey i have my uh you know 10 easy steps to how a corporation can enter the nft game and like lays out

exactly the strategy for what they should buy first could you imagine now being that consultant like imagine this nft on a powerpoint like all right like tiffany board of directors like we're gonna first we need a rocket we're gonna buy this nft for the podcast listeners this is a kind of a shittily drawn excuse my language a poorly drawn hand-drawn rocket with different components looks like a flash game from like the late the early thousands uh and now it's part of tiffany and company yeah well next is uh the consultant recommends you buy a crypto punk or a board ape that's what you should do next or a stadium [Laughter] uh budweiser they have beer dot eath cans look at this man oh that's a real can i thought that was photoshopped

nah that's a real candy oh i gotta get one of those i don't know where you can get these okay this is an nft beer fest so i don't think they're cranking these out of the factory i don't think you can go to your supermarket and buy these but they do exist beer dot eth king of nfts budweiser going all in with their dot ether dress right if you if i saw a beer.eth uh on a beer can in like my local like supermarket i would just absolutely die that would be way too cool it might actually get me to drink a budweiser oh my god it says the king of nfts on it i know that's great that's great i know oh there's a gm badge there's a gm badge right in the middle where right yeah right in the center that's great just

well done whoever is doing it well budweiser is just killing the nft game they totally are totally putting craft beers to shame okay just crack open a bud uh bitcoin stuff okay macro strategy macro strategy strategy yeah macro strategy a 205 million dollar loan to do what to buy bitcoin i saw this title i was like who is macro strategy is this a typo well it turns out it's a subsidiary of microstrategy it's michael saylor again he's here he's got a subsidiary of microstrategy and when they asked him what we should name it michael he said macro strategy and he's using that to buy more bitcoin of

course dollar cost averaging in it's the perfect name it's the perfect name yeah it's michael saylor living up to his his total chadness 205 million dollars on a loan worth of bitcoin uh i do still think that'll pay off for him um let's talk about this there was a campaign that launched this week called change the code not the climate you've heard bitcoin fuels the climate crisis but did you know a software code change could clean it up wow that sounds enticing what can i do how can i upgrade bitcoin and get rid of the environmental waste is that a way to do that uh this is the campaign estimates show bitcoin uses more electricity than all of sweden i mean at a surface level this is super damning right bitcoin alone

could help warm the planet by more than two degrees i'd love to see the details on that one bitcoin is uh resurrecting fossil fuels a software code could change it could fix it by 99 why aren't they doing it right like at a surface if you're kind of mainstream if you're sort of an army you already don't like crypto because you don't own any you've heard some bad things and you read this you're like this is terrible right i hate bitcoin right this is the campaign that is being pushed out and guess who's funding it in part uh greenpeace of course e wg but also ripple the ripple foundation oh those bastards oh

ripple is in on it uh if you're anyone who's ever tried down there has been a friend to the industry like think again okay well so give me your take on all of this what do you think about this okay so when i was when i was reading i was like wow this is feels like it's coming from somebody who knows something about the industry right like like a bitcoin maxis would point to this and be like because it labels ethereum like why aren't why isn't bitcoin doing proof of stake like ethereum is it's like oh this is like a probably like interpreted as like a narrative attack against bitcoin by ethereums it turns out it's ripple wow i didn't know that uh yeah it's ripple my take on my take on this is that it is uh really really probably spinning a lot of

narrative and it's probably way more not true than it is true for sure at the same time the rest of the world is totally ready to hear this they this narrative just resonates so hard and so even if it's wrong it's it's i'm conflicted on this because like if if bitcoin was what bitcoiners would believe it to be a lot of this stuff could actually become true like imagine if bitcoin was a 100 trillion dollar network like and it's still proof of work it would be consuming an absolutely insane amount of energy uh and so like that is true what is not true is that like there's any amount of evidence that bitcoin the network is putting is increasing the average global temperature there's no evidence to that um and so this is really just a

narrative campaign oh god it's ripple like this is goddamn bastards it doesn't it does look it doesn't show like the totality of the picture like the um the the drying industry just like drying your clothes it consumes more electricity output the entire industry than bitcoin has in its existence right it's just stuff like this benchmarks you don't really see it's not telling the full story uh it's it you know can you just click a button and upgrade a software code to reduce bitcoin's energy use by night no you can't it's not that simple right it's not bitcoin is resurrecting fossil fuels maybe maybe in some places but like in others it's incentivizing actual green uh usage photo usage yeah so this

is ridiculous but here's the thing um i guess when you're thinking about the narrative battle that we're all fighting i'm just we just talked about proof of stake i'm very glad that crypto proof of stake does not have to fight right these types of battles yeah it's one of those things where like i i i'm very frustrated with ripple for doing this but at the same time like yo bitcoiners this is your fight to fight like good luck we you know ethereum has six more months yeah i don't know three more months i don't know we'll see three to six four months yeah it's not even fighting it though it's just like uh we're gonna switch okay so here's here's a great tweet out of missouri here's what i'm saying with tumble dryers look at this less than bitcoin yeah this image is a little fuzzy so

i'll read it out carbon emissions of bitcoin compared to other industries uh for bitcoin 41 uh million tons of co2 per year or something gold industry 122 to bitcoin's 41. global banking 130 to bitcoins 41. uh tumble dryers 53 to bitcoin's 41. so do you do you wash your clothes or do you wash you know dry your clothes in a dryer because you are producing more and are consuming more energy than you don't have to yeah aviation industry 1982 to bitcoin's 41. so like what are we really being concerned about here yeah i think i think there's some takes here of course but again

remember the leave brittany alone memes like leave bitcoin alone yeah there's an element of that for sure but also big corners good luck nick carter which that's what's the best for you wouldn't want that yeah no that's that's a hard thing to defend proof of proof of work i think over the next decade for sure um but we have other battles to fight in the regulatory front and i think one of the main battles that everyone in crypto should be concerned with is this attack on our bankless wallets on non-custodial wallets here's the fight that bitcoiners don't have to fight but they should also yeah well they don't i guess well they do they like bitcoiners want their private key access of course but i guess so i was mainly referring to d5 but yeah this is super this is super important okay uh so last

week a coinbase user in canada sent me this letter and this is a email rather from coinbase starting on april 4th coinbase will introduce some changes required by canadian regulators specifically when you send crypto to another financial entity or money services business then transactions over a hundred or sorry a thousand canadian dollars we legally require you to ask for the information about the recipient of that transactions their name and address this is this is like the question i have so this is first on the menu aml kyc they want to know who you're sending funds to if it's over a thousand dollars but what's next on the

menu just disable withdrawals to crypto while it's all together right like they could very easily do this this is a nexus to do this with um with crypto banks essentially and my concern is that governments like the canadian government want to trap crypto into the existing financial prison system that we have digital financial prison systems panopticon where they get to monitor all of the transactions and with a click of a button they can shut them down that is not a good system there's not the bankless decentralized finance money for the system that uh that we were fighting for i think some canadian politicians to be fair are pushing back uh on this so this is one um he his name is uh pierre uh uh uh puliev i think come on mr candidate okay

come on uh poliev i think this guy has a good shot from what i've been told at uh becoming canada's next leader in canada's conservative party i'm not sure to what extent that's true but look at this campaign let's make canada the blockchain capital of the world right this is going to be the new division in politics is are you pro or anti-crypto and it's going to be is going to be the incumbents who are already politicians that's going to be anti-crypto and it's going to be the newer politicians they're going to be pro crypto and this doesn't break down in left and right to me like a progressive candidate in the us wrote a fantastic um editorial piece on why the left should embrace web 3 and embrace crypto this week that i read too

so that's that's a counter for us but the eu as well they're coming down against unhosted wallets this is just uh breaking today i believe what's happening here yeah the tweet says from patrick hanson the econ and libe committees i don't know what that is of the eu parliament voted in favor of the ftr compromises dne that crack down on unhosted wallets entire regulation drafted to be voted on later today but will certainly go through breakdown of the vote and more updates in this thread um basically the eu voting to to basically control unhosted wallets restrict withdrawals to unhosted wallets oh god the unhosted wallet thing that's basically like a is your wallet custodied by an institution that has an

address i don't like that yeah they don't like unhosted wallets it's it's such like a nanny state things like oh you need to have a wallet that is taken care of by somebody else like no i don't i can host my own wallet that's kind of the point of crypto uh exactly it's um yeah it's a terrible so this hasn't gone through yet but i i'm not sure the the process for which this sort of thing becomes a law in the eu but it's on its way and another example of kind of a a regulators and government officials not liking unhosted wallets and the battle that's ahead uh patrick hansen ends it like this um this information comes straight of the ep i will share an official link overview of the vote here asap we have lost the battle that's this

but this is far from over so there's still some steps in the process through which we could get something like this shut down but you could see it right last week we were talking about some of this talk in the u.s from elizabeth warren wanting to do similar types of actions now we're seeing in canada we're seeing in the eu as well this is the sec who has come up with this very expansive definition of the term exchange and they it's very unclear what an exchange actually includes like is it is it code is it a non-custodial wallet is it something like uniswap something in d5 the language that they're trying to put in place in the proposed rule in the u.s

is very unclear and so there is uh they've asked for comments i think there's like maybe 20 days remaining 30 days of comments this is some action we can take is actually to comment against this we'll include a link in the show notes where you could tell the sec don't create more uncertainty for for defy but the language around what's in exchange and what's not is incredibly unclear and i think it's also unclear by design so i don't know we don't know if this is more of the same kind of uh energy of a rejection non-custodial wallet but it sort of feels like it and in all of these places i almost feel like um you know the boat's kind of leaking and people in the crypto industry are like where's the leak we're just trying to bail it out we're just trying to get the water out of the of

the boat and we have to do this on a weekly basis like they're just kind of wearing wearing us down there's always a something that's trying to slip by and get past yeah they they're the number of things that they can do is probably more than we can probably patch the holes for so the solution for this has always been to build our way out of it uh which is what we are doing germany 50 yeah with crypto that's how we do this that's how we do this uh what's the story david in good news maker dao is hooking up with traditional bank what's that mean yeah so maker dao is really innovating in ways that other organizations uh are not and they're taking this very real-world approach of getting real-world assets into maker dao

through a combination of just like llc's and trusts to uh custody real world uh property and then have that these loans be using the maker dao system loans generated against these real-world assets no one else is doing this and it's one of the most bullish things about maker dao that no one really understands uh there is controversy about maker dao as in like it's kind of like the banked version of defy but i would contend that it's actually quite decentralized in the model that they are doing this uh but you know there is so much value out in the real world and the only organization that is going after that to put that into tvl inside of inside of contracts is maker so you go to like something like defy llama and

you look at like ave it's got ether and uni tokens and link tokens inside of its its balance sheets only maker has real world property real world real estate inside of its vaults with a die back it backs die backing it or no backing die uh yeah so like it is it's it's in a league of its own and maker is in my mind one of the most underappreciated things in d5 this is kind of uh i think your words are like it's a back end for banks right what's cool about this is um this this small bank based in the suburbs of philadelphia it's a 151 year old community bank it's not one of the big ones not like a a wells fargo or in hsbc it's just you're kind of a community bank local community bank they are

trying to put 500 million dollars in assets inside of makers so you could lend and borrow against that and that would be collateral forms of basis for dye so it's creating some innovation for some of these you know credit unions and banks that are are much smaller and it's sort of a bridge for these banks to defy which is uh which is really cool so yeah i'm i'm i think this is a counter force against all of the regulatory scrutiny and pressure is just like hey look at the value that we can drive the efficiency we can bring to our financial markets these small banks are able to use these deep fry protocols and um provide benefits to the world and this is in stark contrast to like the algorithmic

stable coins of the world which are kind of backed by a fractional reserve backed by nothing to some some portion of them or aren't fully but fully backed like this is a direct in my mind the equal and opposite force for that where it's backed by extremely real things and that 50 million dollar loan that this hbv bank is asking for that there's going to be something there's like going to be a steep fee with that like the real the risk of real world assets is going to come with a maker adaptability fee and uh tbd on what that number is but that's 50 million dollars which the mkr token is going to get burned as a function of that stability fee there's going to be some sort of interest rate on 500 million dollars and it's going to go to burning mkr um that's kind of cool i'm just excited

that we get to see all these experiments play out right as i've long said with maker and so we will be covering all of this and more in a live stream happening today friday for the listener uh make or doubt like i said i think is one of the most underappreciated things because of the existence of the centralized foundation of maker dao they haven't been able to market themselves in the way that other organizations have so we're giving three dow members a chance to give the most bullish case for maker dow and mkr that is happening as a live stream 9 a.m pacific 12 uh p.m eastern time today friday as you are listening to this so if you want to hear the case and so why maker dao is so fundamentally bullish we're going to hear it from three dao community members who are bullish mk art

i think you should ask him if dokwan is going to kill dai i think i will guys we will be back with the races of the week but before we do we want to thank the sponsors that made this episode possible if you're trying to grow and preserve your crypto wealth optimizing your taxes is just as lucrative as trying to find the next hidden gem alto ira can help you invest in crypto in tax advantage ways to help you preserve your hard earned money also crypto ira lets you invest in more than 150 coins and tokens with all the same tax advantages of an ira they make it easy to fund your alternative ira or crypto ira via your 401k or by contributing directly from your bank account there is no setup or account fees and is all you need to do to invest in crypto tax-free let me repeat that

again you can invest in crypto tax-free diversify like the pros and trade without tax headaches open an alto crypto ira to invest in crypto tax free just go to autoira.com bankless that's a-l-t-o-i-r-a-dot-com bankless and start investing in crypto today the layer two era is upon us ethereum's layer two ecosystem is growing every day and we need bridges to be fast and efficient in order to live a layer two life across is the fastest cheapest and most secure cross-chain bridge with across you don't have to worry about the long wait times or high fees to get your assets to the chain of your choice assets are bridged and available for use almost instantaneously across bridges are powered by uma's optimistic oracle

to securely transfer tokens from layer 2 back to ethereum a token proposal is being deliberated as we speak in the across forum where community members will decide on the token distribution you can have your part of across the story by joining the discord and becoming a co-founder and helping to design the fair fair launch of a cross if you want to bridge your assets quickly and securely go to across.to to bridge your assets between ethereum optimism arbitrarum or boba networks maker dow is the og d5 protocol the maker dao produces dai the industry's most battle tested and resilient stable coin using maker you don't need to sell your collateral if you need liquidity instead you can spin up a maker vault and use your collateral to mint die directly with maker the power to mint

new money is in your hands the maker protocol is extremely hardened and operated by one of the most experienced dows in existence they've been here since the beginning they've seen it all and so you can mint die with the assurance that your collateral is safe soon maker will be present on all chains and l2s so minting dye can take place on oasis.app xerion zapper or any other d5 protocol that you use follow maker on twitter maker dow and learn from the oldest and most resilient down existence [Music] all right guys we are back with the takes of the week this is uh from someone on the institutional side mike mcglon he says what why don't you read this out david yeah demand is increasing supply is declining and ethereum's position at

the epicenter of the digitization of finance and money so just further price appreciation ethereum the denominator for nfts and the top platform for tokenization is becoming the collateral of the internet this is a good take this is nothing new to bankless listeners but the cool thing about this is this is coming from tradfi that's why we're talking about this this is a trad five guy mike mcglone uh who's at bloomberg 46 000 followers on twitter probably none of those followers are the same followers that we have on crypto twitter those are brand new followers and we got trad five people speaking bankless language about ether people are waking up traffic is waking up bankless quoting bloomberg quoting bankless that's what this looks like um

let's uh talk about this this is a reddit thread that i ran into this week and something about it resonated for me um so it was this or at least caught my attention uh yes i am in it for the money i don't care what people think cryptocurrency from the perspective of a male in his 30s that's the title of the post the poster goes on to describe the conditions today there's no wage growth no prospects in many countries constant financial crisis that keep hitting and hitting us from all sides now inflation is going to melt our savings that's if we're lucky enough to have savings in the first place education system that's a joke in most countries crippling debts high costs of living rents going up and up and up and so on crypto for a lot of

us is the only way out the only way to be able to afford a house or a flat in the future so yeah you bet i'm in it for the money and i don't give a damn what people think priority number one for me is to provide for my family what do you think about this i'm in it for the money a hundred percent that's why i'm in crypto it's because there's no better way to get money for someone who's like early in their life like all of the other opportunities have been already extracted what do you think about this take oh god i could talk about this for hours he talks about so many things and i'll just reiterate them no job prospects constant financial crises new inflation melting savings crippling debts high costs of livings

rents going up so yeah he needs to be about the money but the system that is creating all of these things is a result of the centralized captured financial system that we are leaving and the reason why crypto works is because why crypto number is going to go up and why this guy's going to make money is because crypto is fixing all of those problems one of those problems is not having any money one of the best uk use cases of crypto ryan is number go up uh and so that is the first thing that solves so many people's lives with crypto uh one of the number go up is the most freeing thing possible and so like being in it for the money is the bootloader to talk about everything else about crypto crypto's not here to make

you rich it's here to set you free but in order to be free it really really helps to be rich and so that is like the first step and so once this guy finally gets rich off of crypto he's going to start to realize that the the and this is what kevin owaki talks about with regenerative crypto economics the cool the reason why crypto works is because we're all in it for the money and these it's instead of the old banking system the old government system the old institutions capturing us everyone being here in it for the money is actually enabling for these systems to work bitcoin is secured because people are greedy and they need to they need to mine bitcoin ethereum works because people are greedy and they want to take as much ether as possible uh the in the systems these

democratized systems where everyone wants to be greedy and for number to go up is how this industry is powered there's why there's energy in daos there's why there's energy and ethereum there's why there's energy in behind the unit swapped out uh this crypt this is why crypto works and so this is always the first step in people's journey into into getting into crypto first you're here for the money then you get the money and then you understand the values behind how this industry is powered we got to get you wealthy before we get you healthy that's uh god why did i say all of that look man it's like this is the first step to freedom right you said we said it before that crypto is a journey towards freedom and you can't have financial freedom unless you

have some level of financial independence but the thing is like i think the important thing to remember is like sometimes um you know we've said it before decentralization is kind of a luxury for the wealthy right i think decentralization hopefully becomes more important to people over time but at first like the way you got into crypto the way i got into crypto it was very much about like how is this an opportunity to achieve some level of financial freedom and it's totally fine if you're in it for the money at least at first just don't stop yes when you have the money right then be in it for everyone else lend a hand downward don't pull up the ladder help other people decentralization is a public good for everyone that keeps this

system uh free of corruption and cancer and corrosion and that's definitely what we need so it's almost like david my expectations are higher for people who know better and have been in this industry for a long time and a lot of when we get like a little bit maybe preachy on decentralization it's not talking to people who haven't like made it in crypto yet and are just trying to get wealthy it's talking to people who are here already wealthy and like know better know that if we don't create systems that are sustainable in the future there is no future for this industry and it won't do the good capital g that we think it can oh the way that you said that where like you're kicking the ladder out as you go that's that's a really important point and that's why after you get yours it's

important to reach your hand down and pull someone else up with you and a way to do that is to promote decentralization because that is how these systems are going to generate wealth for our kids and our kids kids so this guy needs to focus on getting as much money as possible because like he said his number one concern is providing for his family once he has done that he can consider it has the luxury to consider more things and it's and going from uh number going up on bitcoin and ether because these assets are decentralized to turning into promoting centralized systems is akin to getting yours and then shutting the door behind you so that's why once you get yours you got to promote values there you go

uh how many jobs you have in crypto this is a great tweet actually i love this tweet um the three in web 3 stands for three full-time jobs that's the tweet hey what do you think about that how many jobs you have when you can work for 50 dowels there is no limit as to what you can do and sometimes when you work for multiple dowels you can do work that is doing work for multiple dowels at once really blend blurring the lines between what's job and what's not a job yeah we tell you to get a job in crypto we're not telling you to be less busy i mean you have to be more busy yeah when you get a job in crypto that's a good point that's a good point um all right proof of stake will go down in history as one

of the most democratizing forces of power that has ever been invented i feel like i read that from someone this week great quote uh david whoever said that is a genius just complete genius what's uh what did that that genius mean by this quote yeah ryan you earlier you tweeted out this week and you flashed on the screen what is what is the entire point of crypto what is the point of crypto and i said pushing power to the margins that's what we were just talking about with decentralization the way that crypto works is over the long term the structural balance of crypto is stable so that future generations do not feel disenfranchised and the way that we do that is we push power into the individual who are always at the margins you got the institutions at the center you got the individuals at the at the

margins crypto is here to put power at the margins david i think uh we're going to skip what we're excited about this week because i know we're both excited about the same thing yeah i know it's super obvious yeah uh bankless arena i've always wanted my name on an arena um but i think i'll settle for bankless name on it it's way better way better uh so let's just jump to the meme of the week and there was a lot of meme fodder this week that we could get into uh but this is the one we chose because this is the iconic will smith slap chris rock week that kind of shook the world i uh i woke up to this on monday and i was like wait what happened it was crazy can you believe that

happened first of all yeah no that was a surprise that was a surprise it was a little bit refreshing here's some just like good old classic hollywood drama slapstick don't don't promote violence but like if i have to choose between the drama of the week being will smith slapping kevin rose and russia invading ukraine i'll go wait wait will smith slapping kevin rose oh excuse me sorry kevin rose who is who's the guy who's the guy that got chris chris rock i don't know why i said kevin rose that's funny uh it has nothing to do with kevin rose uh yeah like a little bit more light-hearted of you know you know drama in the newsfeed anyways like this is of bitcoin slapping the out of

the bear bear market's over so that's why this meme of the week and uh ryan you have a fantastic caption i'm gonna swear here so cover your cover your kids ears keep my coin out of your mouth i can't believe you said that at the uh oscars man that's hilarious um guys that's it for the weekly roll up i hope you enjoyed we're going to get to the moment of zen stumping you got to stick around for it but of course gotta end with our disclaimers as usual none of this has been financial advice bitcoin eth and d5 they're all risky you could lose what you put in but we are headed west this is the frontier it's not for everyone but we're glad you're with us on the bankless journey thanks a lot yo hey guys uh you guys with nfts hey

what's up man uh yeah we're building right now we're really just bridging the gap between web two and web three oh i'm building we're really just bridging the gap between one two and one three we're building i'm just hanging out with my boys over here they're they're speaking uh i'm not speaking because you know i'm just busy uh building hey we hope you enjoyed the video if you did head over to bankless hq right now to develop your crypto investing skills and learn how to free yourself from banks and gain your financial independence we recommend joining our daily newsletter podcast and community as a bankless premium subscriber to get the most out of your bankless experience you'll get access to

our market analysis our alpha leaks and exclusive content and even the bankless token for airdrops raffles and unlocks if you're interested in crypto the bankless community is where you want to be click the link in the description to become a bankless premium subscriber today also don't forget to subscribe to the channel for in-depth interviews with industry leaders ask me anythings and weekly rollups where we summarize the week in crypto and other fantastic content thanks everyone for watching and being on the journey as we build out the bankless nation