ROLLUP: SHIB | WorldCoin | Twitter, Reddit, Disney NFT Platform | Facebook Meta

Transcript

[Music] hey guys happy fourth week of october this is the halloween edition of your weekly roll up david how you doing it's dark over there i can't see you right now yeah they're doing the viewers on youtube are confused as to what's going on and why there's a blank screen in front of them should we do it this is not a mistake right no that's not as much tell them what we're about to tee up what's okay so well i've got my costume on a costume we were supposed to wear costumes yeah we're supposed to wear costumes you forgot your costume well no dude so i knew this i knew you were planning something big okay because when i tweeted you and asked about the uh the roll-up agenda you tweeted me this picture of you and somebody who is like in your apartment applying makeup to

your face so i have no idea what i'm about to see but here's my guess david i think that i'm going to see you as a rendition of your punk okay that's like my best guess i feel like all the hints you've been dropping over the past few weeks i've been pretty explicit about it okay maybe you've been explicit but you have no idea i have no idea i even dressed up yeah you don't know where i've been just playing you this whole time you don't know whether you're going to see crypto punk on the other side i think you bought a 15 amazon uh ninja turtles uh costume which you are currently wearing does that sound like me yes does that sound like something i would do you're saying i would cheap out on like

my nft i would never do that premium nfts all the way so we're going to do this reveal yep we're gonna do this live i've never seen david i haven't seen racine okay all right all right ready three take off the lens cap one here we go oh my god [Laughter] oh my god david oh my that's a little bit more tell me what i look like i'll tell you what you look like okay yeah you look like a ninja oh wait wait wait it's not done you wouldn't you bought your first ever cigarette to have that right now didn't you why'd you know dude i went to the gas station this morning and i'm like give me a pack of cigarettes and they're like what kind i was like i don't i

don't know the ones that you smoke all right so yeah you are certainly a a ninja turtle well actually i think you're just a turtle with with uh a blue blue eye mask on and now you have a cigarette yeah let me show you what i am have you spent time like looking at this look hey that's a pretty good costume that's a pretty good costume yeah it's pretty identical it's pretty good you did a good job you did a good job oh my god okay you look like hershey i see the colors you know you got definitely some whiter face there's a little bit of a mime oh god i can't sorry i can't do this with a

cigarette and put the cigarette down cigarette's over a little bit of a mime vibe no no dude i see okay i see the smile now mm-hmm i see the smile going down okay i see the pixelation i love the hat this is good david yeah it's good man that's your favorite good shout out shout out to haley for putting on makeup on me for my first time ever this is my first time ever wearing makeup that's what i got it's awesome so are you gonna do this again like for actual halloween or is this just for the shows this is just special yeah i know i got to do it tomorrow too uh i'm doing a layer zero with griff green after this and so i have to like take take it off or else he's just gonna you won't care just do it okay you are your punk today i am my

turtle nft my tiny turtle nft and that's just how it is it's halloween they were doing a window washing in my apartment so they had to come into my apartment so i just opened up my door to like talk to the facilities people and i just was wearing this my crypto punk on my face oh my god all right then well uh let's dive in then this is going to be the same roll up right all of the quality you've come to expect except david and i are nfts today so like we're taking this extremely seriously this is the most serious yeah why would we joke about crypto it's the most serious thing on the planet i can't tell if you're smiling anymore i'm always i'm always smiling i'm always smiling everything's funny today all right guys uh first thing before actually what are we gonna cover today david i think

there's three things we got to cover uh first is shib what is going on with his dog it's going nuts all right that's gonna be a big news item also disney nfts are coming question mark disney finally getting in the nft game i feel like somebody tweeted this out i might have tweeted this out a month ago like disney where's your nft game they have so much ip they're getting in coin what is this yeah they listen of course world coin what is this thing it's a new monetary system you actually you know plug your eye into an orb and get coins is that how this works we're gonna dive into all three of those news topics um of course guys we try to cram as much of crypto as we can the week in crypto in your brain in approximately 90 minutes sometimes we go a little bit

over we're not always successful with that but uh before we begin gotta give a shout out to our friends and sponsors at pull together because they have released something pretty awesome that the bankless community should know about and that is v4 of the pull together pools this is a no loss lottery so it has lottery in the in the in the word because you can actually win stuff every week they're giving out a million dollars in prize but the no loss piece makes this a bit more like a savings account so you put savings in you can't actually lose you have an opportunity to win every single week you win prizes uh and effectively you keep your principal pretty awesome what else is special about version four david yeah you the low gas fees on polygon are an absolute

treat and the best thing about v4 is that all of these pools that are spread across all over ethereum are now linked together uh and so they're all one gigantic pool or at least a few fewer number of pools uh i think just uh just four now and so you can actually enter these pools from different parts of ethereum and so if you don't like gas fees because who does you can just go to polygon and and enter in the pool there all right that's awesome thanks to pool together for letting the bankless community know about that uh cigarettes got to go out of my mouth again okay dow punks as well that this is a project that's kind of a spin-off from bankless dow they're doing some minting that's coming that's starting tomorrow i believe actually today and tomorrow depending on if you got in the pre-mint

or not i think these are really cool david what's going on here with dow punks yeah it's the first nft project that is associated directly with a dow uh as we know bank list owl is actually one of the biggest dows out there and there's only a one thousand one hundred and eleven dow punks as well and they're they're pretty dope they're the most realistic looking versions of like profile picture nfts that i've ever seen they're actually humans wearing a tire wearing krypto swag uh and so if you uh are playing in the nft profile picture nfc games uh maybe dow punks might be for you i know i'm gonna get one not only that david do you know you actually get a shirt so this is going to be like whatever nfd you meant you get a shirt print out of the nft as well it's pretty

awesome so it's like a tie into the real world too i mean i'm super excited people know that i like to have the physical relationships with my nfts so i'm very very i think today proved that if anyone doubted david really likes the physical relationship of his he's becoming his nft so anyway i'm in my punk my punk is me i think 111 or something they are minting so if you're interested go check that out as well all right man let's get to the markets uh what is bitcoin telling us this week we higher we lower what are we looking at uh well we ended last week at the high the new all-time high last week and so it's actually been a down week for bitcoin even though it's it's crazy that we are down seven percent on the week in bitcoin and we are still above sixty

thousand dollars that is just fantastic we started the week at sixty three thousand dollars hit a low of fifty eight and a half thousand dollars the high of the week was sixty four thousand dollars and we are currently at sixty one thousand dollars there you go still still good for bitcoin so good even though down week but it's uh it's been a healthy month that's for sure how about ether price of ether what are we looking at ether up one percent on the week start of the week at four thousand one hundred dollars hit a low of three thousand nine hundred and fifty dollars hit a high of four thousand three hundred dollars and we are currently clocking in at four thousand two hundred and twenty dollars again up roughly one percent on the week that's cool man i thought we were gonna get rugged on uh on uh what was this uh

wednesday mm-hmm it's like did you see that massive liquidation yeah oh yeah yeah there was a business yeah ftx or something somebody got liquidated for like 130 million dollars worth of yeah the price of ether on binance i think dropped to like 300 dollars inside of a single candle and then popped right back up caused a bunch of liquidations uh i think people were probably pissed off at that because people got liquidated before they were actually supposed to yeah i saw one like monster wreckage uh liquidation i've never seen like 130 million dollars or something anyway uh good to clear out some of that leverage that foliage and continue the bull run that's where i think we're headed david continuing the bowl around this corner okay what's the ratio looking like because that's an interesting indicator as well we'll run spirits yeah again ever since the

bitcoin etf the bitcoin ether ratio has been up in ether's favor so we're up to point zero six nine on the uh this week i think we ended last week at point zero six four so still again still in that same range that we've been in ever since may but again also painting higher lows with ether versus brick and having a really strong performance there is that counter-intuitive to you would you think that like bitcoin etf would uh reflect in the ratio and eth would be down relative to bitcoin because the opposite seems to be happening right now yeah if we want to put on like the trader narrative hats right now like they're the momentum behind bitcoin after it got its bitcoin etf like traders piled in because oh bitcoin's getting the etf it's gonna pump traders pile in it actually does

pump because traders pile in but then like the buying pressure for bitcoin after the etf just didn't come and so then it fell down below it's it's all-time high and then people are starting to in my mind people are rotating into ethereum because like if bitcoin didn't have the energy to sustain itself but you know what does proof of stake is coming the merge is coming like all the same reasons that people are bullish on ethereum nfts are eating the world and so like i think there's a rotation into ether right now coming out of most of the other blue chips crypto blue chips the equivalent of three happenings people have called this the triple happening right because it's like the equivalent of three bitcoin happenings and ninety percent supply reduction is coming within the next six to nine months so maybe that's starting to get priced in a little bit

although i feel like if that was really priced in we'd already be a whole lot higher right but uh this is good news david i i checked this right before we uh we jumped on and d5 pulse index total locked value in d5 is still above 100 billion my friend two weeks in a row first ever time we've had two back-to-back weeks over a hundred billion pretty exciting to see yeah i've actually uh i think d5 pulse is actually starting to lag behind with a lot of the uh integrations of other apps so there's another website out there called defy llama that other people are using and according to and i tweeted out like hey a billion dollars locked in defy like when we cross one billion dollars locked in defy all of crypto tip twitter absolutely blew up when we crossed a

hundred billion dollars in defy like it was just dead silent i think it's actually just because like d5 pulse is one way to count locked in defy if you go to defy llama we're actually already at like 170 billion dollars excuse me 240 billion dollars it depends what you count right it's like i i actually appreciate d5 pulse and i'm glad we're like using it since the beginning because it's like a a standard metric right because like um i don't know what defy lama counts or these other uh tlv um but like if they're counting stuff that's in binance i don't know that i'd count that right right like why would you count that i mean like do we count all of the you know um liquidity that's custodied on binance itself where on coinbase or at like on gemini i mean so there's

again what's the definition of of d5 so at least with d5 pulse it's consistent but like i take your point i'm not sure that all the projects are reflected here we might be uh above this but i actually appreciate that um d5 pulse is a bit more rigorous than uh than some other sites myself but i guess it's debatable um all right let's talk about the d5 pulse index which is a measure of the value of blue chip defy tokens there's a whole bunch of good defy blue chip tokens inside of this thing what are we looking at on the week yeah start of the week at 342 hit a low of 324 hit a high of 380 dollars and we are currently at 344 dollars overall up just under one percent on the week so mostly

flat well actually i'll actually extrapolate the same exact thing i just said about uh d5 pulse and total value locked dpi as an index for defy it it's actually missing a lot of like the newer tokens like the rari token the ohm token the toke token talk about that aren't we yeah i talked about that in releases a little bit yeah because i think there's some solutions coming down the pike for that 100 um yeah but and and then also like i will say that my point zero one or my point one three bottom call for dpi versus eth i think it would have been sustained it had dpi had ohm and toke and all these other like newer tokens so like oh i will say that i think i think i could you know eke out a victory here david's gonna go back in time and

retrofit the data and see and see if he was right using the right data of course but uh let's look at this at least it's consistent over time so dpi to you eth the index down again on the week where are we hanging now oh it's on that same linear we're at it's the same rate of downwards that has been on the weekly roll up for the last like four months we are down on the week it's down is that 0.082 it's just down it's just like there's this narrative now that d5 can't really compete with eth because ethan is like sucking in all of the value ultrasound eth and this is um a year ago at this time it was the exact opposite interestingly enough everyone said heath was dead and like d5 is the breakout application but ether as an asset would not accrue value it's funny how it's the

exact opposite right the exact opposite 12 months later and i think i said this last time but i'll reiterate it we're used to seeing indexes in the stock market etfs like just go up up up against the dollar and like the take is that well that's actually just a dollar going down in value not the etf going up in value the take here is that like well we have ultrasound money that's supposed to get more uh scarce as the economy grows and so where like legacy dollar etfs go up in price because the dollar is going down defy indexes go down in eath price because eath is going up i think that makes a ton of sense that's the thing that totally screws with your mind we talked about this a little bit last roll up is like it all depends on what you denominate

things in doesn't it like if you're denominating in dollars it's very different than denominating an ether denominating in bitcoin or even denominating in gold and when you start to change the denomination of your net worth your wealth it totally flips things on its head because yeah i mean are you actually making money if dollars are just going up uh not necessarily anyway uh okay let's talk about the bed index which is a third a third a third bitcoin eth and dpi all three of those smushed together how are we looking at on the week yeah start of the week at 172 hit a low of 157 hit a high of 180 and currently clocking in at 172 again uh up a little bit under one percent on

the week so flat this is why i like this index because it's like it's like kind of balanced yeah it's the turtle of indexes you know just slow and steady wins the race my friend all right and i mean that in the best of ways obviously okay of course you do of course uh look huge milestone for uniswap we're talking about numbers and markets over the weekend uniswap protocol passed 500 billion in total trading volume since its launch in november 2018. three years 500 billion dollars look at this look at this curve up slope up great chart great looking chart every time we talk about unit swap hitting these numbers and like a 20 it's a 20 person team you know like three

years i am blown away that no one is talking about this yeah like why isn't cnbc talking about this why isn't this the startup of like the year like this is a an incredible story about how fast this growth has been it's beyond like blitz scale growth and i still feel like no one's talking about it so it's because no one knows how to talk about it like no one is just talking about so that's so brain breaking that like legacy media companies are just confused god i mean why don't they invite people like us on cnbc i mean like serious people like us very very legitimate people who take their job extremely seriously why don't they put us on air i don't understand this a cnbc if you're

watching dave and i would love to come on your show and even put on as pictured as pictured i won't put on a tie oh my god i'll just put on a tie over my turtle cops another big day for polygon hitting some milestones they just crossed a billion transactions processed in the polygon proof-of-stake chain this is just the beginning says mahalo who is one of the co-founders of polygon they're just continuing to crush it on pretty impressive growth there and he takes congrats to polygon on the polygon team i guess it's the market week of cumulative transactions here one billion transactions is a significant amount uh and this just illustrates uh why we need layer twos layer twos are required for you for adoption and usage

three comma club you know uh so i watched the um your bitcoin debate versus eighth debate i don't know if people caught that but it was great for me to sit in the audience david like i really i enjoyed it like it was literally popcorn time for me while you were making your turtle turtle uh yeah i was stitching it this is not like i didn't buy this on amazon at the store i stitched this together by hand well i was listening to you debate bitcoiners anyway um one of the points i think one of them made at one point in time was like um well look at like look at all of these other chains like a polygon for instance someone's mentioned polygon more transactions than ethereum at this point and i wanted to stand up while i was like stitching away on my

turtle shell and just be like that's how it's supposed to work right right like more transactions should go on side chains and layer twos and ethereum should be for highly economically dense transactions settlements it's a settlement layer it's for settlement yeah right uh which is what they broadcast is what bitcoin is bitcoin is for example exactly yeah exactly i don't understand why anyway um that was a good episode guys by the way if you can catch that go go catch that um also justin drake uh team ether was me and justin drake team bitcoin was dennis porter and munib ali yeah absolutely and it even matched because i had like one tech guy one money economics guy on both sides i thought it was an even match it was a lot of fun uh anyway uh all right we

just passed we just passed eight million eath staked a million east staked a quarter million validators staking on the beacon chain uh ethereum developers have uh talked about how they want to see a minimum of 10 million ether staked to the beacon chain in order to consider ethereum secure and we are approaching 10 million ether and we haven't even merged yet that 10 million ether number is for after the merge not before and we are already getting very very close to that so that's pretty cool another memory lane thing right like a year ago everyone was debating enough steak we needed like half a million eath in order to launch oh yeah are we gonna make it i don't know here we are 8.3 billion 8 million 8.3 million

ether earning 5.4 percent in ether terms 5.4 in ether 250 000 validators um i know you have a take on that later we'll get to that uh okay let's talk about this number as well so this is justin drake your debate companion one billion per day in ethereum fees might not be far-fetched he says okay that sounds astounding only that's only though 16 million per day per shard with 64 shards okay a single shard today which is the main chain that's the monolithic chain that we have in place already does a hundred million per day so if you just assume 64 shards doing a fraction of that 16 of

that each of them doing sick an average of 16 million per day you get a billion dollars in ethereum fees per day which would that be like i guess that would be another 10x yeah just just one more 10x and honestly like what's a single 10x in crypto like we eat 10 x's for breakfast and like the the whole the two what would a billion dollars per day mean david it was sick and well so like we were talking about there's eight uh 8 million 8.3 million ether being staked to a quarter million validators on the beacon chain that means that like 70 30ish percent of that one billion dollars actually starts going to those validators actually starting earning the fees and so the the

incentive to actually spin up a node just like blossoms because of the fees are going to the validators so more money more fees being paid to the validators means more security which means we spin up more validators which again we will revisit put a pin in that because more validators means cool things happen we'll talk about that later it also means ultrasound money i think of how much we're burning in in this case a significant amount 700 million dollars worth of eath a day oh my god i tweeted i tweeted this out too because i you know okay it's riff on justin drake's tweet but here's the tweet some of you guys keep forgetting blockchain sell blocks that's literally the product someone responded and said yeah duh but like i feel like this is a simple

fact that a lot of people forget the whole entire industry is based upon this yes blockchain sell blocks that's what they do okay that's what they do that is their product i apple sells iphones okay google sells advertising and eyeballs facebook same thing what do blockchains sell they sell blocks that is their revenue so if you want to look at the healthy successful products that have product market fit look at how much revenue they're driving from the sales of their block space okay ethereum over the last seven days do you know what it was david 10x bitcoin in terms of the sales volume of its block space the product that it sells is

valued at 10x the value of bitcoin block space and nothing else is close nothing's close to bitcoin in terms of the value of its block space okay people forget this simple fact but everything falls out from this economic security uh ultrasound money falls out from this like the the monetary premium that your asset is able to command the it's the proof of product market fit it's like the security it's the decentral everything falls out of the fact that blockchains sell blocks so if you want to find the winning blockchain sell or find the blockchain that is selling blocks for the highest amount of value it's that simple what blockchain has the

highest quality product and you can tell that by seeing how much people are willing to pay for that block space uh with the crypto world we unlocked the power of immutability uh where we we can make data immutable and we use this immutable data to make immutable transactions because what's more valuable than uh money bid so if we have like this the most uh valuable kind of data we've ever been able to create which is immutable data and the amount of immutable data that we can create is constrained by the system that produces blocks but blocks sell immutable data that's the thing a blockchain does is like oh i have this much amount of immutable data for sale and a blockchain that has that immutable data actually

valued by the market we'll see block space actually consumed and so many many blockchains are out there can sell block space but the it's the quality of the immutability and the utility of that block space that determines the price for it absolutely take it from the turtle take it from the punk folks we know what we're talking about [Laughter] absolutely all right guys we will be back with the hot releases of the week but before we do we want to thank the sponsors that made this episode possible matcha everyone's favorite decks aggregator has just launched an open beta for gasless trading so if you're trading more than five thousand dollars in common eath and wrapped bitcoin pairs then your gas fees on matcha are free and that's why you should be using

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talking about capturing some of the smaller cap up and coming d5 protocols this is called the gonna make it index the growth index gmi uh and i think some folks from the bank list dow proposed that this along with folks from the index co-op and it's basically a i guess lower cap version of the d5 pulse index with a whole bunch of different almost like we've called these before d5 2.0 type protocols so unpack this for us what's in the going to make it index when is it going to be released yeah so there are many uh actual teams that we've actually talked to recently that have tokens here so we we talked to olympus dow so the ohm token is in here we've also recently

talked to the token mac team the toke tokens in here uh perpetual protocol the perp token the dydx token a visor flx and a very large number of others rarity the governor's token of rarities in here uh and these are like the it's just the newer defy tokens and there's actually um a rule in the dpi index that you have to these tokens have to have a certain amount of age to them but that's actually kind of uh as you know that's optimized optimized for for one thing but like a lot of new things on alpha and crypto comes from newer stuff and so they are making the uh the gmi index to capture the newer things that are about d5 yeah i love this i think it'll be a good compliment right so you could own the bed and then you can own a portion of

something like this and that's kind of like all you need um let's talk about this the across protocol has just been announced i i think this is announced for release this looks to me david like another bridge so this uh looks a little bit like a hop or a conex and this is uh across what what are these guys doing no that's exactly right cross l2 uh protocols for asset transfers this is a huge industry so just another way to get across your your money from l1 to l2 l2 to l2 l2 back to l1 or whatever thank you bridge builders yeah literary bridge builders yeah yeah let's talk about this uh argent is one of my favorite wallets has been for the user experience but i think adoption

has been slow because of maintenance gas fees and it's been built on uh ethereum now i don't think they wanted to compromise by going to like a side chain of any sort right like argent has always been like let's be bankless a bankless wallet it looks like they are coming to starknet though this is of course a zk powered uh roll up which is pretty cool um so this is arjun the wallet and then starknet for computation account abstraction so stark net speed plus argent wallet ux equals rocket ship pretty cool uh i haven't seen anything here yet but i know this was in the in the in the works from argent so i'm looking forward to uh to seeing this out in the wild i don't know when it's

coming do you have any more details yeah the the world of smart contract wallets of which arjun is the the future is ultimately smart contract wallets we just have to get there and the world is smart contract wallet is hamstrung by the l1 by the nature of it being slow and expensive um smart contract while it's on layer twos are going to be wallets with superpowers and so i know we're all frustrated about like the metamask ui right now and just like the lack of wallet infrastructure the wallets will take over the world with smart contract wallets on l2 you heard it here on bankless when vitalik talked about this on an episode that we did with him so if you want to peek into that information more there's a show available to you on that absolutely uh also new wallets are coming to the space this is the x-die

wallet what's interesting about this xd5 xd5 excuse me not xdi xd5 wallet uh i think we announced this like two weeks ago or they announced it we reported on it in the weekly rollup what's interesting now is it looks like they're going to have a token associated with this wallet um one conclusion that one implication of this i think is this is probably going to cause a token rush in the wallet scene right so when metamask tokens token we saw this with sushi right so sushi copied uniswap and then released a token and uniswap didn't plan to release a token decided it had to release a token in order to fight back maybe we'll see something similar play out with uh with metamask what are your takes here

yeah it's one of those things where i don't actually necessarily think that xd5 wallet needs a token but tokens are like steroids right you just inject a growth community in into your application with a token and it's one of the reasons why we think everything is going to have a token in the future um you can have your product and then you can also have your product and a token and that just adds new features and capabilities to it definitely a token arms race going on i think that's what this will propel uh but metamask is hearing users as well particularly ledger users i think that the experience between a ledger hardware wallet which i love and metamask which i also love has not been ideal and i think a lot of folks listening to this will uh will realize that and recognize that there's lots of different updates some

browsers don't work and there's it's difficult because there's multiple parties involved here right there's metamask there's ledger there's chrome apps that you're using there's chrome there's all the browsers like so a lot of parties have to get this right so it's not any one like individual group's fault but metamask is looking to smooth this out it sounds like teaming up with ledger to smooth this out and it's coming soon the new support they say will be entirely in browser seamless connection between ledger and metamask my god i can't wait for that seamless connection please i would love to delete firefox for my computer is that what you have to use yeah i'm asking firefox to use my ledger yeah mm-hmm right i mean chrome is just

completely uh chrome really really like after the industry a little bit uh let's talk about this david this is why optimism which of course is a uh layer two roll-up that we love an optimistic roll-up that we love i think that was a post written by the optimistic uh the optimism team rather what's going on here yeah this is justin j moses from the synthetics team we've had him on the show as well before and he writes a tweet uh talking about why optimism uh which is a take about the release and basically he says that the reason why he likes optimism is because of the whole evm compatibility uh excuse me evm uh equivalence strategy that optimism is going for in contrast to evm compatibility what evm equivalence means

is that the optimistic rollups produced by the optimism team are as close to the evm as possible meaning that a lot of the goddamn it i just realized why you did that meaning that the sorry sorry for the podcast listeners this is very visual show today um meaning that like the evm equivalents means that all of the developer tooling the infrastructure the nodes anything that you need to run an ethereum run ethereum you can also use to run optimism optimistic roll-ups run by optimism so having evm equivalents allows you to port all the network effects of ethereum also to the optimism roll-ups and that is the design uh the design philosophy of

optimism and really just a strategy to make everything into an optimistic roll-up just by latching on to the network effects of ethereum itself uh so the the line that the optimism team likes to give is optimism uh roll-ups from optimism are ethereum they're actually it's not a layer two it's actually just part of the evm at the base chain uh so it's kind of a technical differentiation but the the strategy of evm equivalents i'm really really bullish on would you say david almost that it's like it's like turtles all the way down did you go as far as to say that you can't just like skip to the conclusion of the announcement post and just say that because you're just gonna confuse everyone the way the reason why is turtles all the way down is because uh again evm

equivalents right it's it's ethereum all the way down and the ryan just skipped through the meme at the end of the vlog it's the best it was the best it was my favorite part okay uh i you know no further explanation needed okay ultra scalable ethereum david you wrote a post this week why modular blockchains are the best scaling solution for crypto we also did the state of the nation that was based on this post um i thought it went pretty well we kind of prepared it last minute uh but it you know is very well received what's the tl dr of this post i guess the reason it's in the releases section is because there hasn't been a lot released on modular blockchain design so we did it ourselves this is we we tried to do it ourselves polynya anthony cesano some others in the industry have

been doing this but we tried to wrap it up and package it for you so what's the what's the quick summary here yeah so the whole idea of modular blockchains has actually been around for a while but it's that modular word that really unlock things and and we've talked about this a few times before but the power of naming something of actually ascribing a name to something is really really powerful because once you have a name for something you can actually talk about it and polynya i think maybe maybe it happened elsewhere but really polynei is the one that really surfaced the concept of modular block chains to just to the the twitter sphere the the public knowledge and so uh polynya we it's a pseudo-anonymous writer they write short blog posts and so one thing that we do very very well bankless is that when we

collate a lot of ideas and collapse them into one single blog post and so that is what we did so if you are trying to understand the concept of modular blockchains which is a really really important concept to understand all the the future of crypto is via modular blockchains and i say this line at the very very end if we like went back in in history back to like 2009 and or into a parallel universe and we rolled the dice again about how the crypto industry would pan out it will pan out into modular blockchains 99.9 of the time every single time it'll end up in a modular blockchain design construction and so this blog post goes through why that argument is true and how ethereum is working towards a modular design structure allowing ethereum to become

ultra scalable ethereum so bankless listeners know all about ultra sound bunny ultra sound eth now we have ultra scalable ethereum and these two things go hand in hand i'm actually working on another blog post that talks about the relationship between the positive flywheel effects of ethereum and how the more scalable ethereum becomes actually the more ultrasound ether becomes as a money and the more ultrasound that ether becomes his money the more valuable becomes the more scalable ethereum is allowed to get it's this positive feedback loop that the modular design structure enables that really just is going to propel ethereum into this ultrasound money ultra scalable future and the reason this is really important guys is because it if this thesis holds true it will really inform how you approach the space how you think about

the space how you invest in the space so i think it's a thesis that is under explored in the market right now and very much underrated uh one of the comments we made at the top this post is like we feel like the ultra scalable ethereum story and the scalability of ethereum story is as underrated as ethi asset was back in 2019. you know folks remember from that timeline no one thought eth was worth anything okay trading like 150 people said it was just gas just a utility coin was never going to be a money never going to be a store of value okay that's what the narrative for ethereum scalability is like out there in the market everyone says eath will never

scale they're all of these improving like new uh eath killers that will take its place i think the modular blockchain idea inverts that entire concept flips it on its head so you gotta wrap your mind around that again we have this blog post we have the state of the nation from earlier this week david has even read out the post for you we are if you are an audio listener he's got this post on youtube you could just listen to it into your ears rather than read right we've done all the things like go consume one of these things like what do you want you want me to read it to you do you want to listen to me and ryan talk about it you want to read the blog post i don't know do something all right release time big releases oh my god look at this one parallel this is

a an nft sci-fi card game just raised a cool five at a cool 500 million dollar valuation the card game has not been released 500 million dollar but um massive valuation huge investor behind this this is paradigm david what's the story here yeah when i hear a sci-fi card game i'm thinking something like hearthstone or magic the gathering but now as nfts we've seen this model before with gods unchained from immutable uh i like card games um i play hearthstone every now and then uh and now i really really want to play this thing especially when playing the game might earn me some really dope nfts that i can sell for ether maybe look axe infinity has just blown the doors you know through this entire industry now everyone's piling into these uh

crypto games i think it's going to be a next mega trend the nfts are yeah go ahead the amount that actually infinity moved the needle is absolutely insane it's one of the biggest needle movers i've ever seen ever yeah and it happened so fast it caught a lot of people by surprise which is i think everyone thought well my god we're under allocated now we have to you know pile in um okay what another thing people are finally piling into is funds are piling into nfts what is this story with metaphor capital metaphor capital raises a hundred million dollars to buy up rare nft so it's an nft fund uh very unfortunately put the mechaverse as the thumbnail to their uh the the article that they wrote mecca verse is an nft project it's not doing so hot um really

what happened with this uh it was one of those nft projects that had the like the reveal scheme so everyone would buy the unrevealed mecha verses and then they would reveal them and then turns out like my complaint about the mecha verses was that they were very undifferentiated like the rares looked like the the mids looked like the floors and yeah overall like i just i followed the nft flipper bot so whenever i see somebody flipping nft like a tweet goes out and you just see people just like uh failed fumbled flip fumbled flip going from like people bought it for 60 selling it for like 1.5 eth big oof anyways that's actually a sidequest unrelated metaphor capital invests 100 million dollars in buying rare nfcs including uh things like board ape yacht club and i think of many of the other nfts that that we know today

that's crazy this would be a crazy story like if you told me that you know last year at this time there would be funds that are just dedicated to buying nfts not yeah buying startups or nft infrastructure but 100 million dollars just to purchase nfts like do you see this in the traditional world does anyone buy like picasso or michael like art funds i think so i think there's fractional art platforms but like yeah there's definitely there's actually i don't think have you ever heard of a raise of a hundred billion dollars to just go buy like you know items yeah monets yeah is there like an etf that exists is that a thing hmm i wonder i bet there is no there will be in crypto that's for sure there definitely will be it'll be way easier as well we have the primitives to build it um let's

talk about this as well blockchain infrastructure provider alchemy just clinched a 3.5 billion valuation they raised 250 million our friends at a16z are in on it chris dixon from a16z will be on the podcast on monday we just recorded with him this week so catch that podcast on monday um just yeah anyway alchemy what do they do david they they're basically a lot of the data infrastructure behind all everything you see in in crypto like when your uniswap page loads some of that data is being served by alchemy um you know all of the various defy apps use it as like kind of a data layer um people think that infuria provides a lot of this actually behind the scenes it's

a lot of it's alchemy some of it's the graph as well so this is kind of the not it's not a blockchain layer but it's like a data services layer it's almost like an aws for blockchain specific data and indexing and apis that sort of thing so i can i can understand why it's worth what it's worth i would like to know the business model like how they actually capture value um maybe it's like deal flow if they're routing transactions in the same way that kind of like robin hood sells its flow to to citadel which kind of is an unfortunate analogy but it might work the same either way um they raised 250 million dollars that's a lot of money at a 3.5 billion dollar valuation that's huge yeah i mean they're both they're servicing nfts they're servicing like all so much infrastructure actually

depends on this the back end which is uh which is alchemy which is um i guess cool it's also a little concerning i hope that there's a plan to sort of decentralize decentralized from this stuff too let's talk about this um hype just raised two million dollars i follow on funding round so this is um something that's been i think a lot of folks have been thinking about for a while is like we have nfts right um they're instantiated in the physical world as you can see if you're listening to this there's also a passionate community of nft holders but we don't have a a nft native social media platform do we we just like put it in our twitter profile but there's no way really to like flex or tell the story of the nft or create

an nft specific profile that's what hype is for that's what hype is trying to do it's an nft social media company a social community that's really focusing on the lore of nfts do you want to explain it some more what is this idea of lore behind nfts as well yeah it's like it's basically a social media page for you but not you for your nfts right so like so i loaded up my page i you can yeah and so there are just in the same way that there's twitter handles there are hype handles uh right you can find ryan at hyy dot pe that's the hype website slash rsa for ryan also slash uh david hoffman for me can i like friend you david because i know you guys yeah i haven't had yeah it's david hoffman

he's i'm trying to get ryan to be my friend for years now and like dude i'm doing it now follow yeah yeah yeah so like any time like you get to create stories about your nft he's like yeah yeah now my and if he's going to come visit your nft he's like oh i can post on ryan's nfc well i'll say hey how's your nft doing today my nft is great man how's your punk my turtle's doing great punk's doing lovely it's a good day as always uh and so yeah this is a social media platform for nft so you can go sign up right now and then you can start making posts about your nfts and have a little nft community and it reads directly from the chain so you just plug in your meta mask wallet all the nfts like can be verified i'm

excited to see what they'll actually build here i'm actually excited to um like follow maybe it's other turtles other members of the community see what you're doing see what you're buying like it's going to be a whole social stream for nfts which is really cool disclaimer and i are seed investors and we had to be couldn't couldn't ignore that one uh coin list what are they doing man coinless they're now valued at 1.5 billion dollars they just got a fresh fresh 100 million dollars in funding i think they're up to 75 employees they plan to double what's the what does coinbase coinlist actually do that's where you can uh if your retail you can sort of get in on recent and you're based in the us generally like you can get on in on recent token launches right that's

that's where i mostly know coin list um coinless coinless is one of the companies that came around during the ico era and wanted to be like picks and troubles for icos and then actually made it through the bear market right and and actually made it all the way through and so then coin lines it's basically a token launch platform and it has like right uh it's just in services and infrastructure minting your token compliance kyc um you know uh uh capital uh collection all that stuff purchase anything from coinless no i get all my tokens from uniswap yeah i i registered i think i've done a few things but not too much but a ton of people have and um you know many of these launches have actually worked out very well for them so yes not surprised at this listing all right that that's our raises for the

week now it's our weekly reminder to tell you to get a job and get a job listen to the turtle get a job listen what the turtle tells you the turtle's telling you to get a job that might be a good idea this is this is uh serious business here in crypto we are building the future and there are a lot of fantastic jobs that are available for you head of ethereum research at immutable oh my god that is a dream job crypto gaming right ethereum right research layer layer twos like research that just means you go and learn stuff like that's the coolest job ever uh a head of research at immutable ahead of tokens as well jobs ever the master of coin is that

what that is um community builder and evangelist at dexable that sounds cool lead engineer at hat stop finance community manager at uh you say it e grana nam igram i'm a cto as well and general counsel there's jobs for lawyers here smart defy finance and operations smart d5 senior back end engineer smart defy uh blockchain cto merit community manager uh argonne founding blockchain engineer highlight senior software engineer popcorn also community lead at popcorn there's something for everyone here look at all those community lead you just go and hang out with your bros in the discord that's your job that's got to be the best job ever being a community lead

right like your job is to be popular in a community i'll do that okay i'll do that in my spare time uh anyway i don't know how many job future jobs that is but the bagless job board just keeps on growing guys um as we always say take a look at that job board sign up for it you can get these messages so we don't have to bother you every single week by telling you to get a job in crypto even though we'll keep doing it yep yep if you sign up i guarantee you a crypto job is more fun than your non-crypto drop yeah it's just got to be you can wear this to work come on what could be better all right let's talk about the big items of the week we gotta start with disney so we're gonna hit disney what else we

gonna hit uh oh [ __ ] oh my god and world champion okay let's start with disney disney's going to nfts what's happening here yeah the uh so there are a bunch of these like nft firms that are popping up and i think the way that this works is like the vv vevay is this new nft like uh like i think it's like an agency more or less i think it's a collection of likes like sales marketing tech infrastructure it's like another type of bridge right yeah it's another type of bridge like hey disney you have all this ip we could we will help you actually turn that ip into digital merchandise which is basically what nfts are so uh vive is announcing that disney will offer non-fungible tokens entities of its characters as part of its promotion uh so like think of it as like anything

that has merch merch has ip behind it right spongebob merch like whatever merch uh what is an nft other than digital merch right that's all it is it's all it is it's digital merch and a whole bunch of fans that want to buy it right uh and so disney's coming into the world of selling digital merch because apparently people buy digital merch uh so things like marvel uh dc comics superman james bond star trek back to the future cartoon network all of these things are going to get nfts mickey mousey and it's like imagine owning the mickey mouse star wars dude yeah disney has everything yeah uh there and there's a un uh i don't know if this is completely true but there's a speculation that uh um vv is built on immutable x which is a

starkware based uh layer two that settles on ethereum so mickey mouse coming to it that's also looking for a head of token that's also looking for and so uh you know mickey mouse on the ethereum l1 one day man the the can you imagine being in a disney boardroom and being like let's look at our balance sheet and all of the assets that we have okay and then looking at your ip your intellectual property all of the brands that you own that is the core asset of disney the unmonetized ip yeah and then all of these various ways to make money on top of that intellectual property right it's like and then it buys in new intellectual property that things that can make more money on and then seeing this nft opportunity right

what is the business case like for that right if you're disney oh my god now we can issue and sell nfts and we don't have to build anything in the physical world we don't need supply chains which are broken anyways we don't need supply chains we don't need like more plastic toys we can actually like just distribute digitally and there's very little like uh variable cost for these things i mean every i'm shocked it's taken disney this long to get to this point right there's so much to unpack here like there's like the narrative of like it's actually this is really good for societies because we can like be consumers and do our consumer things without actually like wasting plastic

and physical materials and atoms going into the ocean we can just like and disney's got to be so confused they're like we just mint these things and people buy them i guess let me let me ask you this how long do you think it's going to take for disney to open a theme park in the metaverse oh my god that's a really good question holy [ __ ] uh as soon as the metaverse like arrives yeah five years yeah i have to say yeah that sounds right three to five years yeah three to five years because we get the debt time you don't need to actually build the thing you just pay a bunch of coders to make it in the internet it's amazing this is this is the future this is what's going to happen this is just a small step but like um you don't

gotta sign like a liability waiver like you don't need lawyers like people don't listen the media institutions are coming is that a narrative we can use yeah i mean i feel like that's what's happening then ft's all right let's talk about ship that's the other big story it just dominated it crushed so ship what is ship first people are like don't understand this thing it's a dog i don't understand it either yeah it's a dog token you do understand you don't understand why it's going up but like what is it it's just a meme isn't it what is that i don't know how it's like i can mention token called like some sort of doggy token i don't know how shib got so much traction in that it did but like it's b it was basically just a derivative of doge after dog started pumping a lot of

dogs tokens came out shib being the leader and for some reason they just collected a lot of meme power and a lot of traders and like the amount of volume that went into these ship markets this week was absolutely insane billions just flipping billions of dollars it flipped yeah right like they're not even a billionaire supporting this thing the amount of money like so much of this trading volume happened on coinbase uh because these are all like u.s retail apes um oh yeah tick tock tick tock is a great answer as to how this happened like apparently yeah okay the very low denomination of ship of 0.0078 cents per coin is very very low so like you buy like a

dollar of these things and you have a billion of them and so people like to think that them well i'm a billionaire now because i have like a billion ship tokens and people legitimately think this thing's going to a dollar yeah people actually think this is right and so like it should be like a trillion dollar market cap something absolutely insane yeah uh and so ship like could pull up the chart ryan the the chart movement of it is absolutely nuts uh yeah just hit just hit refresh this is uh the trading view chart um shipped to uh yeah zoom out to yeah at the one year yeah i'd go and go oh yeah three three months oh my god dude it goes that is it the denominated in dollars right and so it started the year it started this pump at point zero zero

zero zero zero five cents and then around september it jumped it did like a six x and then it would go we ended up at like point zero zero zero three we are currently this in market cap like what's this market yeah maybe you can you might be able to type in in the left hand corner ship market cap that might show up i don't know though okay that's i mean but it is it is the market cap hit the log button because you can only really view this thing in log in the bottom right corner there you go that doesn't even it it doesn't even change it doesn't even move it's absolutely insane uh so yeah just like again insane amounts of volume all piled into ship i don't know why it happened but it happened uh shiv just like dominated the markets this week are you

mad about it or do you not care uh it's just frustrating how much volume is going into these things and like i got i literally got four text messages from people not in my like crypto transfer or anything like hey like do i sell this [ __ ] that i bought and i'm like yes yes you absolutely sell that how do you not sell that but if you told someone that in the beginning of october david they'd hate you right now well i mean because it's gone like but they didn't text me because it didn't pump yeah if you if you're texting me about whether you should sell shipping the answer is yes the answer is yes yeah that that's the top signal somebody's texting you four people four people yeah it's like dude i've been trying to get you to buy ether for like four years you bought

shib without asking without telling me about it like god damn it okay but people are people can be right in the short in the short run and they can be very right in the short run look at this uh person right this person had a wallet purchased uh this is an ethereum address eight hundred eight thousand dollars worth of ship in in last august you know dog token yolo purchase 8 000. yeah like 8 000. whatever whatever it's now worth 5.7 billion dollars that's so [ __ ] insane so crazy from 8 000 to 5.7 billion dollars in 400 days we might actually be looking at the greatest individual trade of all time and it's a ship coin it's a meme token

we haven't talked about it at all on bankless like i don't know how much liquidity there actually is like i don't think the guy could actually sell five point seven billion dollars but he could get us still a lot of money it's still a fantastic he could probably get a billion yeah he could probably probably get a bit of only eight billion dollars can come out of the ship market and still be sustainable maybe or maybe once this kind of moves if they see this address who knows but right you can get hundreds of millions anyway let's call it that yeah great trade no matter no matter what you're doing so like what does this teach us david fundamentals are dead i guess so is everything stop listening to bankless advice we clearly cannot find the ship markets look

yeah look at you know this is uh yeah i i don't know what to say coinbase is number one in the app store it's because how they advertise themselves trade btc eath and ship is in the title of the coinbase application on the three greatest assets of all time digital assets our industry can bring you bitcoin eth [Laughter] buy now folks meme coins are gonna meme though this is partially why i'm actually not that mad because like if you're buying shib um i mean shib is not actually pretending to be something it's not i'll say that about [ __ ] that's true okay it's just a dog token this is what i actually appreciated about

doge it's just like it's kind of intellectually honest it's he it's here to be a meme and it's here to go up and a lot of people get wrecked by it but like it's not trying to pretend it's something it's not it's just a meme so i actually appreciate that at least also unlike though just built on ethereum so what's that where's the meme index we got to buy that um here's if you're an eath holder uh and you missed out on shib um it burnt 2 000 ether in the last seven days yeah two thousand so it's an erc20 token right that's the difference okay doge's got its own chain has to provide its own security ship actually leverages the security of

ethereum and every time a token is purchased sold uh transacted on the ethereum network it burns eth which is interesting so here's my take on this okay so like this is why you won't get hot tips on what dog coins what means to buy like because quite honestly guys we don't know yeah all right like we just don't know and here's the other truth nobody does no one does all right like i don't think anybody does for for the one ship that's successful how many meme coins have crashed and burned and gone to like zero and how many like millions of dollars have people lost on these things right or like tens of millions

hundreds of millions okay so my our strategy is to keep buying the things it's like it's like you buy the infrastructure it's the warren buffett just be warren buffett in crypto okay you buy the infrastructure you buy the things that are lasting i'm gonna keep buying eth because shib is built on top of eth although every meme all memes come into eath they pump and dump they're going to be burning some eath right and ether is something that uh is going to be lasting is sustaining does have fundamentals and you don't really have to like guess so that's this dumb turtle strategy but you know what do i know yeah you're just a dumb turtle but i mean i'm also doing the same thing so there's

that uh yeah so we'll see what the next one is david do you think how do you think this ends let me ask you that before we go to the you think this is like up only the fact that it flipped doge gives it a bunch of lindy so i think ship is it's here to stay man it's it's meme is officially stuck flipping eath next we will take the week off if that happens yeah no roll up on that weekend if that happens uh third news item of the week world coin a new cryptocurrency that will be fairly distributed this is what sam altman says world coin got a lot of i think like negative attention oh yeah in the crypto native world very nice but it got lots of mainstream attention i'll definitely

say that but what is the experiment trying to do yeah we've seen a few of these experiments be attempted before there was this initiative q back in 2018 that tried to do the same thing basically it wants to verifiably distribute the same amount of money currency new tokens new cryptocurrency to everyone so everyone receives the exact same amount across the whole entire globe and so this requires uh anti-sybil attacks right so like you can't just like spin up a bunch of stock puppets you can't i just distribute everything to uh like all the ethereum addresses because i own multiple ethereum addresses so they need to verify that when they give this currency they give the same amount to every single person they don't actually allow people to get it twice and so the way that they're doing that

is with this weird orb hardware thing that like scans people's irises and so it uses a retina scan to check out your iris and and make sure that it never gave you any crypto before before you got your retina scanned yeah and so like apparently that is they've gotten a lot of people to get their irises scanned so they can get this free crypto right uh and so like they're using the this orb as a mechanism to not to verifiably give everyone the same amount of crypto without giving any one person more than one share of crypto because they check all the irises against each other i think you can see why crypto twitter got pretty upset about this whole thing uh why uh just like giving up your irises for for some crypto here your air

drops yeah give you dumber things for air drops let's just let us register your dna so we can so we can give you crypto like this i actually i don't know the privacy implications of this are they like are they deleting it is it just using cash is it just for unique identification i i don't know those details yeah no yeah they apparently they they scan the the retina they turn it into a hash they delete the actual scanned retina but they keep the hash and so that's why it's private also but like it's just very very dubious in my mind um it is also called the world coin right that's a bad name i mean that that's going to get some resistance on you just crypto twitter very 2017 very 2017-ish well it sounds like it just sounds like

something mark zuckerberg would come up with right and uh so there's that but here's some of the flip side of this okay so the flip side is i go back to an eval tweet that really you know struck me i think you tweeted this in 2017 2018 like crypto has tried a lot of monetary experiments and generally it's it's trying sort of the the uh the ground up hard money type of experiments through bitcoin and ether right but but the hardest part about money is actually distribution and in crypto we've never tried a civil resistant distribution mechanism right it's like what if we could distribute this to a billion people around the world and seed start up a money that way okay like

we couldn't do that with with uh bitcoin because while it was fair distribution it wasn't like accessible to many people you had to be sort of nerdy you had to like like follow the right forms be in the right internet chat rooms like run a minor all of these like nerdy difficult things so the distribution wasn't very wide it was maybe fair but it wasn't wide and so what about a monetary experiment in crypto where we're distributing this thing as widely as possible and ceding a non-sovereign money that way so that's why the experiment like i'm not ready to like go the crypto twitter and totally dismiss it like i actually want to hear more the other thing that is interesting to me is this does not feel like uh

uh we're building a better blockchain hi we're in crypto we're here to build a better layer one uh type of experiment which you've seen play out so many times in the past which just like frustrates and annoys me they're actually building this on a layer too okay ethereum's secured layer two they're building this on um some kind of a rollup i don't know the details of this it's called hubble i believe i've never heard of that um but there's some cool tech behind it right so they can actually compress and get uh that this this is an erc20 token so it's a it's a coin on ethereum i think transaction costs are gonna cost like three cents three to six cents per transaction again all fully secured by ethereum on this rollup so some of

their technical decisions are actually kind of cool so on the one hand you've got like world coin and you've got like put insert your eye here on the other you've got maybe there's some opportunity to do a new monetary experiment that is distributed beyond just kind of the geeks and nerds that are into crypto today and also it's built on uh layer two so they're not trying to like create their own blockchain and um you know fix crypto that way um this is an interesting take by uh by token tax why don't you read this one little joke so this is the uh the uh trade offer meme format in a tweet the trade offer is we get your eyeballs you get a taxable event

because if you receive an airdrop you receive a taxable event so you're giving up your data and then you get a taxable event i will agree with you that the pursuit of what they're trying to do i think is noble and it's a very viable experiment to run there's just that inevitable friction of like all right like the in order to achieve completely fair distribution you have to verify the uniqueness of each human and verifying the uniqueness of each human requires some sort of data or property about how that human is unique who that person is so you are inherently going into the private lives of that individual because you need to establish uniqueness um it's one of those things that like maybe the experiment's unique but just getting there it's just too damn hard i think the other morning

they gave crypto twitter a bad taste and smells when this first releases it was just chock full of vcs it was just the only vc's all vcs in the funding of this and there were no kind of crypto native type outreaches like not a lot of community development yet so we'll see how that emerges but here's the thing i think we should give them a fair shot on bankless if they decide to come on the show at some point in time and uh like just hear kind of the pros and cons i'd be interested to dive into their layer two technology and hear more about that so um i'm not ready to completely dismiss it but i'm also not ready to get my eyeball scanned yet yeah the thing is like how do vcs benefit from this when it's inherently a global distribution right like do they have their own supply of

the coin at the same time as they're trying to have this equitable distribution like how do they have questions right how do they get upside here yeah definitely so many questions uh guys those are your three news items of the day let's get into some other news items as well our friends at goldman sachs they just figured out that has its advantages over traditional finance um that's what they said they created a report that said d5 is great that's amazing from goldman sachs david thanks would you have ever thought i would never never ever well i mean one day but i guess it's happening a lot sooner than i expected why are they doing this do you think why are they doing this because they know d5 is about to come eat their lunch they have to come to terms with it they remember so goldman sachs actually

they invested in uh in our friend uh eric peters firm maybe that's why i subliminally subconsciously called them friends uh they filled their bags and now they're chilling nice good strategy good tragedy good strategy fill your bags first and then then chill is the strategy polygon okay so i think hacks have been a theme this week in the uh the ethereum ecosystem polygon just dodged an 850 million dollar hack a white hat discovered this in advance uh they paid out the white hat a two million dollar bounty for finding that critical vulnerability the largest bounty has ever paid ever to anyone well-deserved yeah well deserved like two yeah congrats like set the record for highest bounty paid to that one guy uh or girl

uh so congratulations to that white hacker thank you for not thank you for taking the two million dollars rather than the 850 million dollars we appreciate that it's it's an interesting trade i'm glad that um they're being paid so well for these things because like you know it's let's say you had let's say you had no morality no ethics were not involved and you're just doing like an expected value analysis and you have like 850 million on one hand but like you have to live a completely right i guess pseudonymous life maybe make sure that you're covering your tracks like can you actually get away with 850 million dollars or on the other side you get two million dollars you're a hero free and clear what choice do you make no morals david which one would you do oh no no morals

no morals david what would he do yeah see like the cumbersome of living a life with 850 million dollars that i can't use like is it actually worth 850 million dollars if you can't actually like buy a house with it because you can't actually send that outbound like right right yeah and like i i i i'm a person that enjoys being liked uh and so i'll take i'll take the praise of doing the noble thing i would do that too yeah i mean like just no morals ryan would do that to you like i would rather than live like a drug lord i mean who wants to i mean i don't know uh i wouldn't want to live on the land like that so mo money more problems that's right especially when it's stolen money not that i would know okay i'm not uh a

hacker um never done anything of the sort cream finance was exploited though for 130 million dollars here's the other half of the story [Laughter] a black hat so hacker in one year let us know how your life's going are you living like a drug lord right now are you wearing a turtle costume to like be in disguise um all right but so okay this is actually serious we shouldn't be laughing about this because people lost some money um cream finance it it is a i guess it's not a first tier defy yeah it's a it's a compound it's an ave but here's the third year it goes after the long hill of assets which is inherently where the risk comes in

and they've been hacked before there have been issues before this is the biggest one though 130 million dollars and i'm not sure how this is going to be resolved i think the story is is still developing but i think i saw the message okay this is this is uh what the the attacker wrote um babe lucky iron bank lucky cream not why dev incest bad don't do that was the cryptic message they received hackers are weird i don't know oh i mean maybe so the hacker isn't an english speaker but they wrote in english for some reason i don't know okay or maybe they're trying to like disguise yeah there's incest bad don't do i don't think that's a mistranslation i think that's just being weird okay uh anyway uh yeah bad news for cream um

i think this is another like every once in a while we get these things in d5 and it's just another realization that you have to be careful okay like uh this is uh i thought cyrus had a great tweet about this in my opinion dapps that i'm willing to put greater than 50 percent of my total net worth into in no order number one maker well he he previously worked at maker so do know that yes okay but also in well that that's actually a good sign then right yeah sure because he's seen all the skeletons he knows that the bodies are buried i guess maker ave compound curve uniswap those are the five right so there are tiers of safety inside of even even d5 right so we always end the show with this like d5 is risky you could

lose what you put in be careful we're headed west all right but like some d5 is far riskier than other d5 as well and there are some applications in defy that have reached the point at which not that they're unhackable but they are someone like cyrus who's on the inside he's willing to put in 50 or greater of his total net worth and i probably feel the same about these protocols uh i don't know if you would add any to this list david or like would you agree with this list i definitely do agree with that list that's th these are the applications like consider like home these are the applications that i use and everything you feel familiar with uh and there's a lot of like people ask often ask me like how do i actually evaluate a defy app at the risk of a

default app if i don't know how to code and i actually made a talk in paper about this uh so if you want to go to youtube and type in settlement assurances and the protocol sync thesis at the ethereal virtual summit i thought i gave the equation of time value locked where you just take the value that's been deposited into some of these applications and then you look at how long that value's been there so there's two variables how much value and how much time and the more and more a protocol just lives with having a bunch of money inside of it is an indication of how safe these things are and the these five applications that cyrus lists off have an insanely high time value locked measurement so they've had a lot of money in there for a lot of time without exploits and so these are

generally a nice litmus test for how secure an app is uh cream not that young or not that old like it was built in defy summer and not that much total value locked in it and also spread over a large amount of assets so the risk is all there so these are the nice little like uh quick mental calculations you can make to understand how to evaluate your app i totally agree i totally agree with that metric as well a couple other i guess uh you know caveats too is often if one of these major protocols upgrades the the lindy can sort of reset a little bit right so you gotta be careful with uh a version two of uniswap versus versus a version three because they could be a little different the other thing that uh has a bit of a different risk profile is say using

uniswap on a layer two versus using it on mainnet right so we just saw a sidechain like polygon with a hack in it in it itself so it's not as safe as as on mainnet so there's some stratifications of this but uh yeah i totally agree with uh with that metric that's the best way you can tell i mean you can also judge layer twos by the same metric right how much deposit onto layer two is for how much time exactly um let's talk nfts i've read it doing some stuff in the nft space what are they doing yeah we've always known that reddit is very very very ethereum friendly and they've been working uh with i think arbitrarily won the reddit scaling bake off and now they are integrating tokens into reddit there already are like rewards and like little icons that you can reward posters and

commenters uh i think now they're that's actually the the problem with those little icons that you pay for is like they're just super inflationary right yeah and so that's right maybe now like with reddit and actually like scarce rewards scarcely sell them you can't do anything with them yeah like who cares yeah once they become nfts though it really opens up the world of like actually incentivizing good content and like when you actually receive a reward that actually means something because it's actually an nft uh so cool so reddit the biggest social media network one of the biggest social media networks ever uh one of the most trafficked websites ever is getting ethereum to have its back end for nfts it's fantastic also i read uh recently they're actually one of the least um valuable social

media networks per user right right because they just said yeah reddit users are making a joke and they're like hey we're the least valuable users of any social media platform out there this was a reddit post i was reading the other day and it's true so the cool thing about this though is for reddit why are they moving into web3 so quickly it's because they have the most to gain versus these other social media platforms that have these legacy web 2 models and i think reddit is realizing that and they could gain big from this nft and token emergence and by adopting web3 early and there's a ton of overlap with like the structure of reddit and the nature of like ethereum communities like every subreddit is a community every dow is a community every token is a community there's all communities all the way down they're all

doubt like yeah they're all dao's right this is subreddit and they're they're also um fairly permissionless like anyone can kind of spin up a new subreddit yeah so i expect the integration between reddit and ethereum to just be a very long story me too uh this is a story that's just starting which is twitter's integration with nfts we started talking about this about a month ago but um what are the updates here yeah so instead of just having a verified nft which is what we talked about last time it looks like they're creating a whole new tab in twitter so for people familiar with twitter you have the tweets you have the tweets and replies column you have the media column and then you have likes it looks like they are adding a collectibles and so you can just look big at that right that's huge that's like very very core

features in into like your twitter profile so like you can just go to the collectibles tab and you can see all the nfts that you own uh which i'm assuming would be verified uh so it's just another like nft gallery inside of like your twitter app this is going to this is the bold case for nfts by the way web 2 just basically adopts nfts and then they saturate even further so like that's why pfps are so valuable if we have this collectibles tab where we can put all of our nfts do we have to take our nfts off of our picture because it's already there i think no i think the nfts in your picture like will be uh verifiable too yeah right like right what i'm saying is the check mark if there's a gallery for

viewing your nfts like do you really need an nft as your profile picture anymore can we just all go back to being humans now you don't want to go back do you absolutely would you go back no did you ever change i am my punk my punk is me i could tell you look you're starting to look resemble your point more and more every day i don't know what it is uh all right let's talk about this wordpress nft auction plugin powered by zora okay so wordpress is like the biggest open source website um tooling in the world uh everyone uses most products most websites are wordpress websites yeah now they have plugins for nfts yeah just like printer like printing press for nft is connected right into zora really good alignment i think because azor is like the most open source aligned out of all the nft

platform so it makes sense that they hook right into wordpress the amount of nfts that are about to be minted in 2022 is absolutely insane another institution that's coming to crypto is the web 2 institution they are coming to crypto in a big way uh so is photoshop so is adobe what's happening here david yeah so uh any user of a photoshop will know that you when you are finished with a file you can export it as a particular file type apparently photoshop will get a prepare as nft option i don't know what that means but that has i think some sort of verified file ability with like you can claim that you are actually the first person to make the jpeg using photoshop i think it's like an intern i

think that's the vibe uh but i don't know uh nft feature is going into software these days guys that's just in one week right all this stuff's happening the biggest software applications in the world now adopting nft is now adopting crypto um pretty crazy pretty insane uh yeah this is more on the uh the adobe thing um i make all of my memes in photoshop so i think when i really export these memes i'll just like export them as nfts i guess that's that's very professional sir photoshop memes wow okay that's the only thing the condom the economist last week we mentioned that they were selling the economist cover guess how much it sold for not enough one thousand dollars lower than it should have been they sold it for 419 000 missing the

classic 420 000 but but whatever yeah good haul that's amazing right 420 000 ish uh for you know and again as we pointed out last time this is this is going to be the first of many everyone's going to be selling their their um iconic magazine titles as nfts magazine covers as nfts after this so the economist had their meeting where like all right we're going to do a defy like a crypto cover right and like one person in that meeting was like you know what we should do we should nft it boom 420 thousand dollar idea like bam like who who saw that coming i hope that guy got a raise or that girl got a raise you know definitely worth it um take ten percent cut next time

or just work for a dow where you get rewarded uh for these contributions okay bitcoin uh what's bitcoin doing some firefighters the pension firefighters pension are purchasing bitcoin that's pretty cool and ether yep and ether too yeah okay oh wow okay um wherever you see bitcoin you see ether these days this fund has invested 25 million dollars into crypto this is the first u.s public pension plan people are familiar with pension plans they have a lot of money a whole lot of money in fact that is the vast majority of wealth in the u.s aside from like individuals uh you know rich like mega billionaires a lot of the money of the middle class of the working

class is held inside of these big pension plans and now the pension plans who are historically very conservative are starting to invest in crypto makes sense i'm glad the firefighters are first you know there may be more a bit less risk averse good job firefighters firefighters all right el salvador what did they just do uh they bought 420 more bitcoins 420 we like the 420 number yay uh recent this recent purchase brings the latin american nation stash to about 1 120 bitcoins so el salvador laser eyes stack and sat still el salvador okay um we talked about the implications of that many times no need to get into it but let's talk a little bit about regulatory

stuff so coinbase is spending eight hundred thousand dollars on lobbying in the third quarter that's how much they spent in the third quarter so that's one quarter so i'm glad to see that coinbase is getting involved to help educate and protect this industry from aggressors in dc it's fantastic i hope that number increases over time so this is just a tiny fraction of revenue um but if you took even just like point one percent of the total market cap of crypto the total revenue of crypto and applied that to lobbying in the u.s what kind of a difference would that make do you think yeah we have money printers we can make money we should

just funnel that money into fighting for having the ability to keep the money printers that we made this is i mean i guess i hate that we have to do this but this is gonna be how the game is played this is what andrew yang said in the podcast like he's like i'm here to tell you that lobbying works that spending money in washington actually works and i wish that wasn't the case i wish the protocol would change but like that's how the game is played so good job coinbase i hope we continue to spend in dc i guess that's what we're going to have to do also this was an interesting story david uh can you maybe give give us some context so this is a story that came out of missouri mainnet you were actually there when it happened so what was the story

and then what's happening now yeah so doe kwon of tara was on an escalator down to give his talk at mainnet and waiting for him at the bottom of the escalator were a bunch of suits and ties with a subpoena so they served him his subpoena at missouri mainnet people thought like what did they do that because like they knew that he was going to be on united states soil and so they took this opportunity to serve him did they do it inside of main net to flex and like scare the industry anyways uh do kwan has uh done the reverse uno card and dokwan is now suing the sec i actually don't know why do you know why he's doing the sec yeah he's saying that basically i i i this is the the entire um you know

document that that defines i i think he's basically saying the sec was completely out of line not within its rights to uh to approach him like that and apprehend him in public at maynet conference and the the lawyer goes over the case as to as to why that's the case why it's an infringement on dokuan's rights why it is a breach of power by the sec and i gotta say some of these points make a lot of sense again i'm not a lawyer i don't know how this will stand up but like what a mad lab move right i'm like you're subpoena you're subpoenaing me at cc no i'm suing you i'll see you in court i'm reminded of the uh insanity wolf meme that was like five ten years ago

from the old days so she's like sue's the sec like bold strategy i i hope it works out for him yeah you know he's got some points uh but uh not gonna make friends and influence people at the sec that's for sure but look i don't know i don't know how i feel about this i mean maybe some pushback is warranted for this sort of thing regardless this kind of stuff's gonna end up in court so you bully us no we bully you we have lawyers too uh mastercard says any bank or merchant on its vast network can soon offer its crystal it's cr offer crypto services so visa's been hard in the game lately i guess mastercard now following suit

going down the crypto rabbit hole starting to offer crypto payment options to all of its merchants and customers pretty cool yeah just just a reminder visa mastercard these are payment networks they're not specific about any currency they are payment commerce like messaging networks you can put any currency you want on mastercard uh and so mastercard wants more than just the dollars it wants bitcoin and other cryptos yeah it's also i think it's going to use stable coins as well we're actually going to have some folks from visa on the show later in november to talk about uh some some of the plans for visa and um talk about the d5 mullet david that's what we do um some regulation rumors as well a lot of people in treasury are talking about apparently some rumors they're talking

about a push from gary gensler and others in the sec and treasury to increase the amount of regulatory scrutiny uh on stable coins in particular so it feels very much to me like the eye of sauron has sort of turned towards stable coins i'm like personally i'm glad it's like not fully on defy right now and they've given bitcoin and eth kind of a pass with with the etf but it definitely feels like the eye of sauron is turning on stable coins and that's going to be a next target i'm not sure how that's going to play out um the sec apparently is claiming some jurisdiction some folks even at the cftc want jurisdiction um there's talk of

making like essentially making stable coin issuers apply by bank rules so fdi and c insurance and all of these other things and of course there's not a lot of clarity in this industry so i don't know how this is all going to play out seems like various regulatory bodies are all fighting for some jurisdiction here uh david do you have any takes um no no takes here yeah i i think this goes back to um you know basically our our conversation with um with eric peters where he was like hey in the short run this sort of stuff is going to happen but in the long run nation states will get on board with this and have to capitulate and so like i'm less worried about this is another

example of probably regulatory fud that's all going to be okay for crypto we'll keep marching on yeah the regulation's going to happen and the crypto world will exist exactly as it intends to regardless uh just gotta wait and watch it happen speaking of eric peters david let's talk about this real quick what did what did eric peter say on our podcast is being reported in crypto media yeah eric peter says crypto is the most interesting macro opportunity and investment of the recent of eric's recent title that he ever knows of uh and so eric peters again on the podcast a very big deal in the legacy world so when they were buying uh bitcoin and ether they were keeping it a secret because they knew that once it got out that uh one river capital management was buying crypto it would

you know like it would be a shot heard around the world as soon as it was announced bitcoin set its all-time highs of like 50 63 000 like earlier this year uh and so uh people listen to eric peters and eric peters on this podcast that i listened to called bankless said that uh crypto is the most interesting macro investment uh uh ever do you know that was one of my favorite podcasts that we've done this year i was i i just thought it was phenomenal it was really great podcast um yeah and uh you know eric is uh definitely leading the charge in the traditional institutional world here last thing for you and then we will get to takes of the week a leading d5 prediction market poly market is said to be under investigation by the cftc they're also in talks to raise money at

a 1 billion valuation that's an interesting contrast isn't it right yeah the uh alleged uh thing that the cftc is saying about polymark is that it's letting customers improperly trade swaps or binary options and it should be registered with the agency so it's basically just finding them or under investigation for just not registering um which they probably don't want to do anyways just kind of kind of you know regulators cracking down and uh crypto companies raising war chests to fight that and i think this all gets resolved in the courts yeah hopefully is it gonna here's how this is gonna end up again i don't know anything but like it's gonna be like a two three four million dollar fine and they just raised at a billion dollar valuation so like okay like oh

yeah you think that that that's kind of what we've seen traditionally right um and the cftc is in the sec the cftc is nice [Laughter] yeah um all right guys we will be back with the takes of the week and some more but before we do we want to thank the sponsors that made this episode possible arbitram is an ethereum scaling solution that's going to completely change how we use defy and nfts and now it's live and has over a hundred projects deployed gas fees on ethereum l1 suck too many people want to use ethereum and it doesn't have enough capacity for all of us and that's why teams like arbitrary have been hard at work developing layer two solutions that makes transactions on ethereum cheap and instant arbitrary increases ethereum's throughput by orders of magnitude at a fraction of the cost of

what we are used to paying when interacting with arbitrary you can get the performance of a centralized exchange while tapping into ethereum's level of security and decentralization this is why people are calling this ethereum's broadband moment where we get to add performance onto decentralization and security if you're a developer and you want to save on gas costs and overall make a better user experience go to developers.offchainlabs.com to get started building on arbitrom and if you're a user keep an eye out for your favorite defy apps being built aren't arbitrary many default applications on the ethereum l1 are migrating over to layer twos like arbitrary and some are even skipping over the layer ones entirely and deploying directly on layer two there's so many apps coming online to arbitrarily so go to bridge.arbitrum.io now and start

bridging over your eth or any of the tokens listed and start having the d5 or nfc experience that you've always wanted living a bankless life requires taking control over your own private keys not your keys not your crypto that's why so many in the bankless nation already have their ledger hardware wallet which makes proper private key management a breeze but the ledger ecosystem is much more than just a secure hardware wallet ledger is the combination of the ledger hardware wallet and the ledger live app and if you're used to seeing all of your crypto services and favorite device apps all in one spot ledger live is where you want to be not only does ledger let you buy your crypto assets straight from the app but it also hooks into all of the default apps and services that you're used to

using ledger live you can stake your ethan lido swap on dexes like paraswap or display your nfts with rainbow you can also use wallet connect inside of ledger live to connect to all the other defy apps that keep coming online defy never stops growing and the ledger live app grows alongside with it so click the link in the show notes to see all of the defy apps that ledger live has and stay tuned as more apps come online and if you don't have a ledger hardware wallet what are you even waiting for go to ledger.com grab a ledger download ledger live and get all of your defy apps all in one space all right guys we are back with the takes of the week the turtle and the punk are here to give you the freshest takes in crypto david let's start with

the punk take this is your take this is all about the modular blockchain and kind of the handshake between eth as ultrasound money and ethereum as ultrasound scalability what's the feedback loop here when what's the tweet yeah this is this is why the ultra scalable ethereum design structure is so so incredibly awesome um in in in the modular design thesis with sharding when you add more proof of stake validators when more people spin up 32 32 each and spin up a validator the more people that do that the more validators there are the more shards that we can add to the ethereum blockchain right so if we double the number of validators we can just have more shards which actually associates ethereum's security and

decentralization with its scale meaning it can become more secure more decentralized while also becoming more scalable this is the big unlock previously we had the blockchain trilemma where you say like well if you want to be decentralized you have to sacrifice scale with sharding it it inverts it where we get more decentralization we actually add more scale okay so more validators get spin up we get more shards providing more data if we get more data on the shards like the because rollups compress data and before they deploy it down to the l1 shards so what adding one megabyte of data down to the ethereum l1 adds like a gigabyte of data onto a rollup because it's compressed so when you add any amount of small amount of data to the ethereum l1 you add orders of magnitude

more data to the ethereum l2s which makes transactions go faster you can do more of them they're cheaper they go faster so faster cheaper roll-ups that allows for creating net new economic activity we talk about how congestion and ethereum pushes economic activity elsewhere it goes on to polygon it goes on to solana well when you actually recapture those things by having super fast cheap transactions you create more net economic activity that is happening on ethereum more net economic activity it means more fees for validators because more total fees are being pushed down to the l1 if we have more fees for validators you have a larger incentive to spin up a new validator because you are getting more ether denominated apy on your validators and so when there's more fees being paid

to validators more validators will spin up we started this whole thread at this point where if you start up more validators you get more data charts which adds to more scale of the roll-ups which adds more economic activity which has more fees with adds more proof-of-stake validates which adds more data the positive feedback loop is absolutely insane and so really the growth of ethereum as it grows in decentralization it becomes more scalable the cool thing about this is that when we have a bunch of fees i don't include this in the tweet but when you have a bunch of fees because of the economic activity you're making ether more valuable which increases the value of what is being paid out to validators and so because of ultra-scalable ethereum we make ether more scarce and because ether is more valuable you have

the incentive to spin up more nodes and so ultrasound money me ultra scalable ethereum your your your identical sibling your one one is the network one's the money and they are both ultra so that is where we are today so make it simple for this uh this turtle here david you tell me we should buy ethan oh yeah you're telling me ethan has a good investment here yeah uh-huh and not only is a fantastic investment investment but ethereum is a fantastic platform to hold that investment on this is not investment advice of course never is but you can infer what you like by the bullishness of that statement um this is ron paul he is not bullish on the fed never has been i'll read the tweet out

by creating many trillions of new dollars out of thin air the fed set in motion in economic disaster the warnings are over inflation is now here every excuse will be offered up as the reason for the economic pain don't don't be deceived the unconstitutional fed is the reason ron paul has always been like long been saying this that um the fed is basically inflating money supply i feel like a lot of people were listening to this message in 2000 after 2008 crisis and thought inflation was imminent and were kind of proven wrong in a way because they thought cpi inflation was imminent but they were actually like retrospectively proven right because money supply inflation actually happened

and asset price inflation happened as well and now we're starting to see the inflation that everybody else notices and everyone else calls inflation which is actually like consumer price index inflation and so now a bunch of people are saying like hey see we told you you know the chickens would come home to roost we told you that this was going to happen and ron paul of course is blaming the central banks and the fed i don't think he's wrong uh but you know yeah what's your take on this i really just like the color of the unconstitutional fed uh we didn't we didn't elect the fed we didn't we don't as a democracy get to choose the monetary policy that the fed bestows upon us we also by the way didn't elect any members of the sec um

it's a nice reminder that like money is a public good and it's actually been captured by like 12 dudes behind closed doors and yeah andre not yelling it's not part of the governance protocol of the united the republic of the united states we are governed by we are not we are governed by the central bank and we are governed without representation in the government in the central bank here's another take that i think uh is related this is jack dorsey saying hyperinflation is going to change everything it's happening this this term hyperinflation it's a big word so yeah it's a big word a lot of people were angry at his use of this word said it was like hyperbole he said it was exaggeration said he was just pumping his uh his bitcoin bags um

i i have maybe a kind of a nuanced take where i partially agree but partially disagree but what's your take it's it's very polarizing right like hyperinflation causes fear it's it's a scary thing like a hyperinflation basically is a broken economy like your economy cannot function your money no longer works money no longer works right so therefore nothing works that's exactly right um hyperinflation is a bold claim because that's talking about like oh basically the destruction of the united states economy which would be the destruction of the entire world uh so it's it's yeah it's a it's a big deal to make this sort of thing um and i think the reason why he can make this kind of claim is because inflation has been really really low for a very long amount of time and so markets and basically entire entire economy has operated under like a less

than two percent paradigm for a decade now and so if we ever saw like larger than that which we are currently seeing that it breaks a lot of things uh and so that's kind of why he gets to say hyperinflation in my mind yeah i my take on it is like hyperinflation still is too it's too much right it's too alarmist for what's going on like you don't have to use that word i think when people think of hyperinflation they think of like you know zimbabwe you know crisis and people using wheelbarrows of money to just buy their daily goods and like using money as wallpaper and like completely broken i don't think that's where the us is headed and i think it's a bit of hyperbole to think that overnight the dollar is like suddenly going to be like a collapse absent the

us losing a major war i don't see that happening that said that doesn't mean there won't be very high levels of consumer price index inflation i just don't think of that as as like hyperinflation like the money is just kind of dying overnight right but i think we could get to like double-digit cpi right for instance which would break a lot of people's brains that's a really high number yeah and some people would say well that is hyperinflation so it is kind of a subjective definition of what hyperinflation i guess is um but interesting that people are like just blatantly tweeting this in uh in 2021 right now you know inflation is here is because this can be tweeted with a lot of a lot of support by a major ceo agreed i think hyper

hyperinflation we can say that it arrives when like people really start moving uh talking about not storing their money in dollars anymore so like taking their paychecks and then turning it into something else that is in my mind hyperinflation which i've been doing ever since 2017. um this is uh this is kind of my take on some of the some of the talk about inflation it's just this take on fiat fiat only works because no one actually no knows how fiat really works right this is fine for decades then crypto came crypto pays people to learn about how money actually works it's gamified economics and when a new generation learns how money really works do you think they'll hold crypto or fiat right david you hold crypto crypto fiat crypto

only crypto as much crypto as possible to pay your bills yeah and part of the reason like and like i feel the same way and the reason why is because i actually learned about money and i wouldn't have learned about money if bitcoin and ether didn't pay me to go learn about money like in by pay me i mean a tremendous amount of upside in terms of like figuring out what the next monetary regime is and in order to figure that out you actually have to understand the nature of money i think older generations just take money for granted like they don't actually have to think about it it's not a thing that actually matters to them because they lived in a stasis monetary regime we live in a transition period where monetary regimes are not in stasis they

are changing like things are happening this is a different time period and what's also happening is now that crypto's here it is gamifying it is like rewarding you to go learn what money actually is and the more people who learn what money is the less they'll trust fiat and then the less people who trust fiat it's like the reverse of what you just said that positive feedback loop for for ether it's like an unwinding of that right which is actually like i am i love many of andrew yang's policies right and i love is particularly his governance protocol policies i i worry a little bit about ubi right like it's not that i don't um believe in that as a wealth distribution function like i

think it could service that but like what if it also serves to collapse faith in fiat what what do you lose as the nation state and like um like if you if you do that if you cause that and people are suddenly getting checks where does it come from well it comes from the money printer unless you're like taxing this if you're just printing that ubi then maybe that further erodes faith and money so yeah i think crypto is just unravel is going to start unraveling the entire fiat experiment and uh maybe that does lead to some hyperinflation i don't know it's not in the u.s but you know we'll see it would be interesting to run the a b test as to like inflation in this world as it currently stands with crypto and then also without crypto like what if the crypto industry didn't

actually exist and we had covid and we had the money printer go burr they're probably a lot less inflation because you the like you say like you you talk about how like crypto comes and it teaches people about money but also importantly it's an exit it's an escape hatch out of fiat money right and so that escape hatch actually can leak out a lot of value and cause the hyperinflation simply by having the option to sell your dollars and buy bitcoin and buy ether buy ship uh like you can you actually create the hyperinflation that is actually the narrative that bitcoiners like run with like like they say hey the dollar is going to to hyperinflate one day buy bitcoin so you can protect yourself from that the mere actual existence of bitcoin can actually make it a self-fulfilling prophecy right because it can actually cause the the inflation

that is being discussed yeah totally there there's an ape in the middle of you know wall street uh coinbase is the number one app rampant inflation like what do all of these things have right in common right it's they it's it's all kind of the story of crypto um let's talk about this steak this is uh from from matt matt matt huang from uh paradigm he goes stocks are worth a hundred dollars print a lot of money now stocks are worth two hundred dollars tax the unrealized gain of a hundred dollars rinse and repeat and so this is kind of like the very pernicious nature of like the association between uh having the ability to print money and also having the ability to tax money uh we are unburdening the economy unburdening our massive debt by printing our way out of

it by just devaluing the debt but at the same time in order to actually fund the government like they need taxes uh and so there's this very insipidus like uh method of taxation which is going on which is like we'll just pump out a bunch of money to pay for things and then all your asset prices are going to go up because we inflated the money but now that we made the asset prices go up we're going to tax your unrealized gains there's that conversation going around in congress about like taxing unrealized capital gains that's a huge change that would be a massive change yeah how the tax regime works so that's like if your assets go up you actually have to pay the taxes on your assets even if you didn't sell them which is crazy i think it's only being confined to like the top

700 richest people in the united states but still as like a it's kind of a slippery slope like first it's the top one percent then it's the top 10 percent then it's everyone and like you your wealth is just taxed inherently do you own something well like now you have to give some something to the government uh so don't don't like the dynamics going on right now yeah there's a lot there right so like i think what what congress some in congress are trying to react to is this massive wealth inequality where it feels like billionaires are barely getting taxed right and rather than raise tax capital gains they're talking about this ability to tax unrealized capital gains because if you raise capital gains you just incentivize people like jeff bezos to stop selling and they're not even selling anymore they're just collateralizing that equity

he collateralizes his equity and then he borrows against us so he never realizes a taxable gain like and i see that loophole right that so so people are saying well what if we tax unrealized gains but what are the downstream implications and ramifications of taxing unrealized gains but there's also i think the sub point this goes back to our conversation with eric peters he's just like hey if crypto takes off and fiat starts to collapse the government's still going to get theirs yeah and you know how they're going to do that they're going to raise taxes on some winning element of the economy and if you don't pay those taxes they'll throw you in jail remember governments still have the ability to put people in cages and they have you know

unlimited uh resources yeah resources to do that and they have like basically violence we've given them the stick of violence um that that's kind of the faustian bargain we've made with with our governments and so you know i i wouldn't be surprised if this kind of tax policy starts to gain in in popularity in this uh in the over the next decade i don't i don't know what it means for for everything but uh yeah it's uh the government will try to get it theirs that's for sure i i said this in the eric peters debris fruit so all the premium subscribers to bankless heard this and but for all the free subscribers i'll say it here uh i hope that the way that they tax crypto is via the off ramps so if you have a bunch of gains and you sell your money into

dollars for your bank account they'll tax you then and so they should put that tax there so that it just incentivizes everyone to go into the world of crypto and only stay and stays there i think that's the best path forward oh yeah uh we'll have to see i mean there's so much that needs to get resolved in this decade uh including this including this surveillance this is awesome uh so to talk about this this is um so that's the facebook whistleblower that talked about hey that there's like this internal structure at facebook that uh everyone in facebook knows that it's tearing apart the scenes of society and everyone's okay with that inside of facebook so that was the whistleblower it's like basically a facebook knows that it's bad for like mental health it's bad for society uh and they and then she also says like and

everyone knows that and they aren't doing choosing to do anything about it so that was like this was big news this was very big right like she was on francis was on 60 minutes talking about this and like you know facebook was freaking out and all sorts of things so go on so the tweet says the facebook whistleblower says she doesn't need financial support uh everyone's trying to give her financial support for being a whistleblower i guess uh because she doesn't need financial support because she bought crypto at the right time she is in puerto rico in part to join her crypto friends who are there taking seeking as a tax shelter you don't have to pay any capital gains in puerto rico the cool thing about this is that like well crypto is also web three like red three is part of this whole thing and so the

web three world funded the the the lady that blew the whistle about the web 2 world it was it's like it's perfect it's perfect it's such a great story web web 3 really is taking down a web too it's it's already happening um i wonder what her thoughts would be on web3's ability to actually create a um a different incentive mechanism for the social media surveillance that's going on um let's talk about this this is a tweet from blau it's him at a concert looking like he's performing in front of thousands of people yeah it looks like a massive conference since uh it's not a conference concert uh and so yeah it's a selfie he's not taking the photo but it's blau in front of just a massive crowd and then he tweets out this photo and he just says one day they'll all own

nfts damn right they will blow part of the fan experiment experience uh yeah absolutely okay david let's talk about what you're excited about this week other than the physical manifestation of your crypto punk what do you have for us uh i'm excited about two things uh first thing uh nftnyc on sunday i pack my bags going into new york for the whole week for nfc nyc so if you're out there make sure to find me i will won't be looking like my punk um but uh how will we know who you are i have no i have no clue i'll be carrying around an ipad and maybe i can get ryan to join me at times but on the ipad oh my god yeah i'll zoom in for you and then i i already talked about this but i'm just the last time i was this excited about

ether and ethereum it was we were on the cusp of like the whole ultrasound money revolution and like nothing's really different anymore except for the fact that like we are progressing in the ethereum's roadmap but having the ability to name something is really really powerful and i think with ultra scalable ethereum go read the blog post we can finally talk about the way that ethereum has gone after its scaling strategy so i'm just really really excited just to see like it's going to be ultra ultra scalable ethereum it was ultra scalable ethereum week this week it'll be ultra scalable ethereum next week ultra scalable ethereum now and forever uh and i think i'm just excited to see this like work its way into the brains of people in the same way that ultrasound money did ultra scalable

ethereum as following in its footsteps that's what that's what i'm excited about definitely a powerful narrative i share that excitement david ryan what are you excited about i am really excited about crypto games in the metaverse okay so uh we had a great conversation with chris dixon he talked about and you'll hear this on the podcast on monday he talked about what crypto gives you the ability to own your own inventory and move it from website to website right this idea of owning your own inventory that is the primitive we've unlocked with crypto and i think that that new property right that hasn't been available on the internet that digital property right is now available to us and this is what's going to create the metaverse but in the near run i think the metaverse will probably emerge uh through gaming crypto

gaming like these virtual worlds right like i think ready player one is not that wrong in that a lot of the metaverse at first will feel like an immersive gaming type experience and we're starting to see some some of that activity start like i think the crypto gaming industry is just in its first inning like axi was the first breakout success now we're gonna see an entire new wave of crypto games i'm super excited about in particular i'm excited about crypto games on layer two okay because i think that unlocks something special so we're seeing crypto games being built on immutable they have x yeah this is a roll-up uh we're also seeing crypto games starting to emerge on uh starkware's new solution which is cool there's two that i know of um i'm also

excited about this other experiment which is like bottom up building where you actually start with the inventory and you build the game around the inventory you start with the inventory you create a dao you create a community and the community kind of builds the game okay so like loot started to pioneer this um there's also a game called dope wars this is doing like a loop id loot idea but it's like grand theft auto kind of loot rather than like fantasy world loot and they're doing it on layer two which is super interesting i've no idea if these experiments will be successful but this is a new model uh for the world and again it starts in crypto gaming turns into a metaverse and all of these people will be defy pilled in the process they will start to do their

banking on crypto this will be good and synergistic with uh defy and it all leads back to ether as money i mean like so uh watch the chris dixon video uh show on monday for some more details on some of this stuff but um i've been messing around with some things this week in kind of that space and i just see the very first seedling of the metaverse uh starting to emerge and uh i think some big unlocks are coming in the future too so that's what i'm excited about i'm as excited as anyone when it comes to the metaverse but for the sake of the conversation i'll i'll be the the devil's advocate here i'm actually kind of worried that like these because the the mass of the

the market cap the total addressable market cap of crypto game is absolutely massive it's in the the we talked about this with ariana simpson like games are going to be the new economies and with this this just means you're going to be paid to play these games going to make them really really financially incentivized to play these games what happens to the world when like we can just make our money playing games like are we going to stop don't do anything real yeah what else do we do we stopped going to work like we i'm just gonna shut down bank list because i'm having way too much fun playing this game and i'm making plenty of money doing it like well what are we doing now david are we doing anything productive are we like are we playing a game well i mean no i'm

not literally playing wasd games i'm talking about actual wp i know but like i guess like what is the difference between like what is the definition of like adding value like i i have a lot of fun doing this right this doesn't feel like a job this kind of feels like a game and oh my god like if we think about it like from a meta perspective you and i play games all day we talk to our friends in discord groups and we collect coins right right and we tell people about those coins like we're kind of playing a game in a way right but that's different than what i was going after and we're very privileged because we're in the crypto space imagine like all of the broken supply chain people there's lack of ship shipping containers there's not enough

labor at the ports like what happened we have a shortage of labor and what happens when that shortage of labor gets ten times worse because the metaverse is paying a bunch of people to play games like so you're you're worried about like this idea of like escapism and people aren't like we still need physical things right there still needs to be real human interaction we still got to grow the food yeah we still we'll still need all these things and but what what happens if everyone is like uh just plugged into a computer and um yeah i i get that take too i think i think it's a cool future like i want that future to happen but i'm just worried that there's going to be a lot of industries that get gutted because of the magnitude of crypto gaming yeah that's for sure and at the same

time there also needs to be a whole bunch of new jobs for human beings right well uh art like artificial intelligence and you know you know takes takes so many of the jobs that we're doing today anyway that's it takes the week guys let's get to the meme of the week and close this down david so mean of the week what's the first one we're looking at here uh i think we only have one this week uh this one i i made this when uh when luke uh at bankless tweeted out uh after reading the ultra modular ultra scalable ethereum the modular blockchain thesis uh lucha says like uh can you scroll up so i can actually just read it um he goes i don't know about you folks but at some point all this stuff just starts to become obvious really stoked to be

taking the journey with bankless and i read that tweet i'm like oh it must be so nice coming into the world of crypto in 2021 where things have just been like digested and like put into like articles and mental models but coming into the world of crypto in 2017 was an absolute [ __ ] show no one knew what was true no one knew what was real everything was like there was competing narratives competing technologies like poly train like you know crosstrain blah blah blah blah and so i decided to slap together this this meme uh where this is this is the army man protecting the sleeping child from a bunch of like raining grenades and knives uh the reigning grenades knives are titled a bunch of confusing [ __ ] uh and then the sorry for the language uh and then the army man is

bankless uh and so it's a little self-con congratulatory but uh that's what we try and do at bank this is there's a lot of just crazy [ __ ] out in the industry and we try and sift through the mess and make sure that we don't let confusing [ __ ] hit the ears of anyone are you worried though that we're protecting people from the ships of the world and they could be making insane gains well podcasts are permissionless so they are free to listen to a different podcast yeah that's true we do try our best though we try to parse and like figure out what the truth of these situations are oh there are two that are two members here's the second meme of the week what's this david uh yeah this is a ryan sean adams classic i've now learned where he slaps on a headline onto a

picture of a regulator uh and everyone believes it and that's kind of the sad part the uh the comment here or the caption is uh regulators worried that crypto might improve banking system quote crypto might put the banks out of business uh and then the tweet is i'm worried that crypto might improve things this is a depiction of janet yellen as well as a central banker a lot of people thought this was real but you know the fact that everyone assumes this is the meme is the real problem that's what we'd say guys this has been a special halloween edition i think this is the last time you will see me in an nft turtle costume anytime soon i don't know if we'll be seeing the the crypto punk again david you have plans for this uh yeah maybe i do take my crypto punch to nfc nyco

being a good company i feel like you probably should guys none of this of course was financial advice ethan is risky defy is risky so shib 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 and now a moment of zen if you had 24 hours with me and i couldn't say no what would we do i just released bonding together on the bankless newsletter and so we are going to read it together let's dive right in back in 2017 i discovered that my gaming computer with a single amd gpu could produce roughly five dollars a day in mining this thing called eth i thought

that was pretty cool 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 bank list 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