Daily Doots Leaderboard

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989 Dooters - Last Updated February 16, 2024

Rank Username Daily Doots
. superphiz 167
. logristhebard 107
. benido2030 103
. cryptowocurrency 91
. tricky_troll 83
. 696_eth 77
. set1less 77
. hanniabu 69
. syentist 67
. ethical-trade 64
. haurog 60
. kbrot 60
. stablecoin 60
. nixorokish 59
. etheraider 48
. bob-rossi 47
. swagtimusprime 47
. alexiskef 45
. phimarhal 45
. interweaver 44
. the-a-word 44
. austonst 43
. realjohnbmaclemore 42
. pa7x1 41
. okdragonfruit1929 40
. savage-dragon 39
. spacesider 38
. maleficent_plankton 35
. minimalgravitas 35
. pr0nh0li0 34
. rooftopportapotty 32
. thecryptosandbloods 32
. 15kisfud 31
. eggill7227 31
. mrvodnik 30
. liberosist 29
. revanchist1 29
. seamonkey82 29
. ender985 27
. _weboftrust 26
. busterrulezzz 26
. domotheus 26
. papazio 26
. itur_ad_astra 25
. bagogel12 24
. waqwaqattack 24
. -lightfoot 23
. maswasnos 23
. needlerop 23
. ro-_-b 23
. decibels42 22
. hipaces 22
. insidethesimulation 21
. silentjxhn 21
. wolfparking 21
. aaj094 20
. ber10 20
. ethlongmusk 20
. moschus11 20
. not-ngmi 20
. savage_x 20
. coldsnap 19
. 2nice4allthis 18
. chapo_rouge 18
. ethacct 18
. vedran_ 18
. arcadesofantiquity 17
. barthib 17
. im_this_guy 17
. kingleo23 17
. skythe4 17
. sourdoughpretzel4444 17
. thehansgruber 17
. abcoathup 16
. asdafari12 16
. dcinvestor 16
. kudeta 16
. masterroshi9 16
. nikola_j 16
. vvpan 16
. dreth 15
. hblask 15
. sikhsoldiers 15
. thehighflyer 15
. 1l0o 14
. eth10kisfud 14
. krokodilmannchen 14
. oyurukemono 14
. somedaysitsdark 14
. sonotyou 14
. teedeepee 14
. wulkingdead 14
. barleythecat 13
. cheeky-gorilla 13
. dashby1 13
. etherbie 13
. kwadrax 13
. maninthecryptosuit 13
. offmyporch 13
. 2peg2city 12
. luukiemans 12
. mrs_willy 12
. quadraticsharting 12
. replykindly 12
. spontaneousdream 12
. timmerwb 12
. unitedterror 12
. bigglybillbrasky 11
. cemalpersimsek 11
. cutsnek 11
. heringsalat100 11
. keynya 11
. odds-bodkins 11
. pegcity 11
. t0bii 11
. turbojetmegachrist 11
. vuduchyld 11
. ab111292 10
. altsaretrash 10
. bakedent 10
. defirobot 10
. kb1985 10
. mrcatface13 10
. proof-of-lake 10
. 18boro 9
. atyzze 9
. blueberry314e-2 9
. buyethordai 9
. canadiens1993 9
. ch3white10 9
. concernedcustomer33 9
. defacticool 9
. ec265 9
. ev1501 9
. harryzke 9
. magnushansson 9
. mkkoll 9
. nightfallsh4 9
. pbrody 9
. theethmeister 9
. theonlyhodlerincuau 9
. will_dance_for_coins 9
. accountaccumulator 8
. confucius_said 8
. cryptrd285 8
. dray11 8
. edmundedgar 8
. fast_contract 8
. ipeculiarly 8
. iscaacsi 8
. jin366 8
. jumnhy 8
. not_selling_eth 8
. pembull 8
. roargrrrr 8
. showbizza 8
. weedstocks 8
. yeahdave4 8
. ajmonkfish 7
. childsp 7
. corn-potage 7
. cosmiccollusion 7
. doomfuzzslayer 7
. doubtstarsarefire 7
. fiberpunk2077 7
. glittering-duty-4069 7
. jbroja 7
. jmart762 7
. juxtanotherposition 7
. kallukoras 7
. keepontruckinbag 7
. mayneminu 7
. miaviv 7
. pocketwailord 7
. revolutionarysoil11 7
. shiftli 7
. sku 7
. stalslagga 7
. steven_a_mma_goat 7
. thepaypay 7
. vandelay101 7
. wanderingcryptowolf 7
. _etherium 6
. accidental_green 6
. chromes 6
. coinanon 6
. datacruncha 6
. eetherway 6
. eth2353 6
. kukai_walker 6
. lawfultots 6
. llamachef 6
. logic_beach 6
. lops21 6
. monkeyhold99 6
. nefariousnaz 6
. nomad-nuance 6
. offthewall1066 6
. pudgypeng 6
. sal_t_nuts 6
. sfcpfc 6
. thenextbestguess 6
. wholesome_crypto 6
. yeopaa 6
. 404bachee 5
. aaqy 5
. bad_investment 5
. best_coder_na 5
. breeezyyyy 5
. curious-b 5
. danksharting 5
. ecguy1011 5
. el-coco-no 5
. ethdefiance 5
. fatlever2 5
. frenkthetank 5
. geoffbezos 5
. hamberdler 5
. hereimalive 5
. hombredecamote 5
. intmmtsir 5
. kainzilla 5
. kedos25 5
. lazy_physicist 5
. lobsterspider 5
. mirved 5
. mr_cheese_curds 5
. newman513 5
. oldskool47 5
. perleflamme 5
. rapante 5
. rapidlysequencing 5
. red_corneas 5
. sbdw0c 5
. shadowking94 5
. sinnu2s 5
. skidseverywhere 5
. splintercole 5
. strawdar 5
. the_swingman 5
. thefightingtemeraire 5
. themoondancekid 5
. twelvemeatballs 5
. ugottrisomy21 5
. vvander 5
. wanglubaimu 5
. whovillage 5
. wootnasty 5
. zk_snacks 5
. 100acrewood 4
. 16withscars 4
. 18cimal 4
. ambidextrous12 4
. anderspatriksvensson 4
. anguier 4
. baggygravy 4
. bebopnosering 4
. cocleric 4
. degenkolotoure 4
. dinny14 4
. djlywtf 4
. epic_trader 4
. epiphany153 4
. fiah84 4
. friedchickentrailer 4
. gethwethreth 4
. hocilef 4
. i_love_mom 4
. imelia29 4
. johnbmaclemore 4
. labrav 4
. megroovin 4
. need-a-bencil 4
. nevilleharris 4
. nooku 4
. physalisx 4
. plaenar 4
. rumblecat 4
. sabishiifury 4
. sfdao91 4
. shoedollarbill 4
. silver5005 4
. stobie 4
. strtrd 4
. suddenmind 4
. the_statustician 4
. theunderdogrutten 4
. thewalkinglive 4
. thoughts4food 4
. toethmooonguy 4
. tutamtumikia 4
. watch_dominion_now 4
. wegotsumnewbands 4
. 0xboba 3
. aggravating-ear6289 3
. asus_wtf 3
. auseve 3
. badassmotherfker 3
. bbqcaramelbrulee 3
. believeinapathy 3
. bhiitc 3
. breakeizer 3
. candlethief724 3
. chokeman 3
. coin010309 3
. cometothecaml 3
. communist_mini_pesto 3
. cryptonomikon 3
. dataalways 3
. davidahoffman 3
. defijie 3
. dentonnn 3
. diego-d 3
. dvdglch 3
. esoa 3
. ethlinkwin 3
. ethmaxitard 3
. ethnocent 3
. ethsomesense 3
. evanvanness 3
. fheredin 3
. general_illus 3
. gravy_vampire 3
. gumbeat007 3
. hauntedjockstrap88 3
. hipattern 3
. hlpe 3
. iliiililii 3
. imaybeslow 3
. itchy_ad_3659 3
. iwanttobeweve 3
. jbmai 3
. jebediahkholin 3
. kairepaire 3
. kotmynetchup 3
. mhotdemnot 3
. midnightonmars 3
. morganzero 3
. mountainminer 3
. mwiwm 3
. niktak11 3
. nonocoiner 3
. nothingnotnever 3
. nuadhaargetlam 3
. obitwokenobi 3
. oblomov1 3
. ournumber4 3
. phigo50 3
. pinkpuppyball 3
. pinkyandthebrainer 3
. professionaiact 3
. proto-n 3
. readreed 3
. sayno2mids 3
. shitshotdead 3
. sinuio 3
. sm3gh34d 3
. smidge 3
. sorangutan 3
. splinunz 3
. stevieraykatz 3
. survivaleast 3
. syzygy00778 3
. tinfoilheadphones 3
. username_error 3
. wizad23 3
. -darkknight 2
. -filterfeeder- 2
. 0xdepositcontract 2
. 0xtimer 2
. _anedi 2
. allinat40 2
. allmightlove 2
. angelbattles 2
. art__ 2
. atleft 2
. aur3l1us 2
. ausgear1 2
. ayreuan 2
. baerbelleksa 2
. bakindhuman 2
. batmanrockss 2
. bennybennygg 2
. bibilieli 2
. biketourthrowaway 2
. blocksandpixels 2
. braden87 2
. brambrameth 2
. btoast777 2
. bushmage 2
. calaber24p 2
. calvinhedge 2
. captainofthegate 2
. carpathianinsomnia 2
. cash 2
. caterpillarkitchen67 2
. caturday_yet 2
. comfortable_novel_49 2
. consideritwon 2
. cory_eth 2
. crispykfc 2
. crypt0curios 2
. crypto_rasta 2
. cryptomonger 2
. culi122 2
. da3vr 2
. damien_targaryen 2
. damonkey47 2
. danaraya 2
. davethetrousers 2
. deep_archivist 2
. defidude 2
. destreich 2
. dhartz 2
. diligent-mouse3679 2
. dirtyundiesthewhites 2
. dose_of_placebo 2
. doyourduty 2
. dr_lambo_mcmoontard 2
. drogean3 2
. durkalurk 2
. dwdwfeefwffffwef 2
. eddie_eddie 2
. edrews99 2
. educatemybrain 2
. ethdreamer 2
. etherenthousiast10k 2
. experiencegoblintown 2
. fernadopoo 2
. free__will 2
. goatwasher 2
. gulmorgg 2
. hakuna_m4t4t4 2
. hashtagfuzzmaster 2
. hsuke 2
. ican20 2
. imnotthomas 2
. inter_mirifica 2
. itchykittehs 2
. jackfreeman_ 2
. jacoblongesq 2
. jamjodsnaj 2
. jaypeaem 2
. jimyxx 2
. jjohncs1v 2
. johnnydappeth 2
. juankestein 2
. kenzi28 2
. kirill_stakewise 2
. koratickle 2
. kscoleman 2
. larrybob4 2
. laughing-mime 2
. leaguegreedy 2
. leraq 2
. lickmytongue77 2
. llupine 2
. ltwln 2
. lucadonnoh 2
. maconbacon01 2
. maeby_a_bluth 2
. majorpickle01 2
. maskedman24 2
. mattau05 2
. mcmatt05 2
. mediumrarestake 2
. meyamu 2
. mgr37 2
. midoridrops 2
. mister_eth 2
. moderatelytortoise 2
. moneygobye 2
. moneyprintergobrbrrr 2
. morkogoz 2
. namtaru_x 2
. newtosh 2
. nick_badlands 2
. nomadic8893 2
. nyruds 2
. o-l-o 2
. old_world9768 2
. originalbaconslab 2
. perpetualcamel 2
. pooeygusset 2
. productdude 2
. profstrangelove 2
. prostmelone 2
. psullzzz 2
. ptuchinho19 2
. pulisordie 2
. red4141 2
. redditor31415927 2
. reno007 2
. reststoprumble 2
. reuptaken 2
. rhader 2
. robohack 2
. rockjones 2
. romborg 2
. rsblk 2
. samueth_peapks 2
. seanathanwaters 2
. silktouchm 2
. sirrayshio 2
. smegma_farmer 2
. smellymammoths 2
. sn0w_l30pard 2
. sparta89 2
. speedemon92 2
. srirachaferrari 2
. statsticks 2
. stripedbluewallpaper 2
. supermarkit 2
. tech_consultant 2
. temporary-music-5468 2
. theubiquitousbubble 2
. thisisnotlegal 2
. tittyfuckmountain 2
. trent_vanepps 2
. unthinkablecryto 2
. vectorvictorious 2
. vinegar_strokes__ 2
. viners 2
. wanna_know_more 2
. wrekhesh 2
. yadude11 2
. yareane 2
. yourburningpizza 2
. zerotrick 2
. zerotricks 2
. zestykite 2
. —truthseeker— 1
. 0661 1
. 0xcazador 1
. 0xdefiant 1
. 0xrel0aded 1
. 10kethisfud 1
. 5upergeil 1
. 63rd 1
. 66616661666 1
. 69__lol 1
. 917redditor 1
. 9risk 1
. actionpaulson 1
. aelowsson 1
. ahbartsch 1
. airportatheist 1
. aitalianstallion 1
. ali-dabool 1
. andrewmrobbins 1
. andrjor 1
. andykaufmantm 1
. anor_wondo 1
. apoiiocreed 1
. asdafari 1
. associationseveral46 1
. astronautthis 1
. atheartengineer 1
. atleastimnotabanker 1
. attygalle 1
. awardfabrik-sof 1
. bagsmcbaggins 1
. ballsonyah 1
. barkieg 1
. battlepine 1
. bazzravish32 1
. benjamin 1
. bennyggbennyg 1
. bergmannskase 1
. betterstartliving 1
. bigdumbidiot01 1
. bigwiseguy55 1
. bitzgi 1
. blackdowney 1
. blartarus 1
. bleeddonor 1
. blur93 1
. bman0920 1
. bmitch567 1
. bosticetudis 1
. box_of_hornets 1
. brandon_indy13 1
. breakmegently 1
. brent_the_adventurer 1
. brickeaters 1
. broccoleet 1
. bugfrag3 1
. builder_bob23 1
. bullet_king1996 1
. burfdurf 1
. butta_tribot 1
. c0smic_0wl 1
. calistadodd 1
. canadian_stv 1
. canwetalketh 1
. catfoodlover 1
. caymannan 1
. ccgirl21 1
. cheezin05 1
. chicoconcarne 1
. chris_dea 1
. chrismartinasd 1
. cjuha 1
. ckh27 1
. clark_now 1
. claystring 1
. clearlyjustsomeguy 1
. coinedprince 1
. colangelodid911 1
. competitive-regret21 1
. cow_tipping_olympian 1
. cowsclaw 1
. coxenbawls 1
. cozypinetree 1
. cpayyyy 1
. cptnobvs3 1
. crap___shoot 1
. criminalnoodle 1
. crumbumcrumbum 1
. crypolyf 1
. crypt0w0currency 1
. cryptobuddy_1712 1
. cryptojimmy8 1
. cryptomoon2020 1
. cryptopuzzlers 1
. cryptotaxbro 1
. cryptowarjournalist 1
. d-banana-eth 1
. d0ck3r 1
. d0hey 1
. daliroth 1
. danarchist 1
. dangerismyusername 1
. danieltomby 1
. danseidansei 1
. darkestchaos 1
. datadude92 1
. dazzlingbasket 1
. dc-covid-trash 1
. dear_cartoonist5660 1
. deariedearieme 1
. defewit 1
. definoob01 1
. delusionsofether 1
. dennyjets 1
. deppep 1
. detroitlions81 1
. deukey 1
. dim-pap 1
. distant-shores 1
. dizzy_activity 1
. doctor_schmee 1
. doctornoisewaterr 1
. dog_the_explorer 1
. doje_a_vu 1
. domingo_mon 1
. dondochaka 1
. dont_forget_canada 1
. dont_waver 1
. dotslaxx 1
. dpxlumpi 1
. dretherious 1
. drew41 1
. drogean2 1
. dudeeggs 1
. dudermeister 1
. dybsy 1
. dysus1 1
. earthquakequestion 1
. easy_like_sunday 1
. eddyg987 1
. ekapadabak 1
. electricmutiny 1
. elliottmatt 1
. emkoscp 1
. ennygbennyg 1
. epicgoblet 1
. equal-jellyfish1 1
. etereve 1
. eth_scholar 1
. etherduck 1
. ethfan 1
. ethordie 1
. ethrevolution 1
. ethrocketeer 1
. eththermadness 1
. eviljordan 1
. evilphiz 1
. exdedinside 1
. exploreddit 1
. fact_contract 1
. fair_raccoon9333 1
. faithlessnesscold380 1
. fatcateconomist 1
. feichalo 1
. fibrepunk2077 1
. fifthrooter 1
. fiftyfirstsnails 1
. first-flower-3465 1
. fishlover3909 1
. flamesrisehigher 1
. flatpak2021_08_2021 1
. fluffaypenguin 1
. flyinglineman 1
. foodloverfoodhater 1
. forgetitz 1
. fuckmyfate 1
. fuckschickens 1
. fuckswithfire 1
. fuego710 1
. fuglserrand 1
. futureofeverythingz 1
. gand_ji 1
. genz_ofcourse 1
. geppetto123 1
. ggunit1875 1
. giraffenmensch 1
. girlamongstsharks 1
. goobergal97 1
. gou-ranga 1
. gumba_hasselhoff 1
. gurkang 1
. guyfawked 1
. gwenvador 1
. haidren 1
. hairyguch 1
. halzen627 1
. happyfrom2016 1
. hawaii_fact 1
. hawkbit 1
. headwar 1
. healthandwealth365 1
. hehechibby 1
. helponadme1 1
. henrycharles007 1
. hgfyuhbb 1
. highqi 1
. hiredgoon 1
. hodleth 1
. hodlingsteady 1
. hokumbafflegab 1
. holyflatulence 1
. hot_lava_poured_in 1
. hotgirls-eth 1
. i_haven-t_reddit 1
. ianazch 1
. iknowyougotsole 1
. ilovestaplers 1
. import-antigravity 1
. inelukistormking 1
. infer114 1
. infinite-breath8917 1
. infinitemilieu 1
. inhuman_moose 1
. internal-strategy512 1
. ironicspeech 1
. itamarl 1
. its_spelled_iain 1
. itswhatevermannn 1
. izz2011 1
. jade_sorceress 1
. jadenpls 1
. jamcowl 1
. jbgt 1
. jbudz 1
. jenkempuffer 1
. jimjimmyjim-the-1st 1
. jironzo 1
. jokl66 1
. jonace 1
. joshuawakefield 1
. joskye 1
. jrmrx 1
. juanbmaclopez 1
. juustosuikero 1
. juxtaposezen 1
. kaisermerkle 1
. kamikazesexpilot 1
. keeldoteth 1
. keystrokesinyourhead 1
. khad3 1
. kindreply123 1
. kooky-mouse-9216 1
. kristkind 1
. laninsterjr 1
. lanztar 1
. laphroaigrules 1
. laughing__cow 1
. lavop 1
. lawsonm9 1
. ledrsatan 1
. leperen 1
. lifelonghodl 1
. littlebigdondon 1
. loksfox 1
. looselaugh 1
. lostick 1
. lotec 1
. lowievr 1
. loyalmedavid 1
. lpsupercell25 1
. make_me_think 1
. malooky-spooky 1
. mark0pollo 1
. martian0x 1
. masahirox 1
. mathje 1
. matt0x_eth 1
. maxahoy 1
. maxstandard 1
. merklechainsaw 1
. metalsun6 1
. metanull-operator 1
. middle-athlete 1
. mikemx123 1
. mikkeller 1
. momonosquito 1
. movingintoturquoise 1
. mrecon 1
. mrnobodyman 1
. mrnog 1
. mxyz 1
. mylhowse 1
. nagus 1
. neetzscie 1
. nervous_yak_2538 1
. new_start_2020 1
. newone1255 1
. nichlaes 1
. nightshadeemoji 1
. ninjadk 1
. nlnico 1
. no_operation1906 1
. no_speaker8945 1
. nodesinformatziya 1
. nomadic8893- 1
. nomakoa 1
. nomorealcohol2017 1
. notimplementedtype 1
. notios 1
. numuhukumakiakiaia 1
. oakridgefarm 1
. oblvnxknight 1
. oc3anwav3 1
. oldmando 1
. order_book_facts 1
. overcookedchicken 1
. ovitodistati 1
. paddyputthepipedown 1
. palegirlshnnng 1
. pandemoniumpermad 1
. panthoreon 1
. paper-gains 1
. passetisse 1
. pennvic 1
. phillywalsh 1
. phonethic 1
. piezoelectron 1
. pikag 1
. pkickel92 1
. plenix 1
. pnwether66 1
. politicsandcrypto 1
. popsncats 1
. post_orgasm_mind 1
. prais3thesun 1
. projectequal 1
. puzzled_badger 1
. pyroxyze 1
. qwertybop1 1
. randomzileanmain 1
. rayzhueth 1
. realarthurok 1
. recoveringcanuck 1
. redicko 1
. responsiblegrass8080 1
. reterical 1
. revras8 1
. ribilla_ 1
. rickandmowgli 1
. rickshawjojo 1
. ridgerunners 1
. rinmusya 1
. robertloblaw2 1
. roberto250b 1
. samuelshix 1
. samus3015 1
. santamansanta 1
. saturnright 1
. scheistermeister 1
. scribblebutter 1
. scurrox 1
. seat-is-occupied 1
. sepyke 1
. several-listen7915 1
. sexyborisjohnson 1
. shiba_son_of_doge 1
. shittysurgeon 1
. shortstack02 1
. shredthefed 1
. shtafoo 1
. simonlimonsmith 1
. simtrix33 1
. skilhgt 1
. skyy7 1
. slay_the_beast 1
. slocken 1
. slowmushroom741 1
. smithgift 1
. sosayethweall 1
. sp3xl 1
. special-meaning3539 1
. spectacledhero 1
. spinz808 1
. squaredk2 1
. stache1 1
. stoopslife 1
. strictorganization 1
. strongllc 1
. substantial_hurry_25 1
. suburbiton 1
. suclearnub 1
. suicidaleggroll 1
. sure-example-1425 1
. swiss_confederate 1
. swissthoemu 1
. tacitus19 1
. teamredundancyteam 1
. techno-peasant 1
. terminal_laziness 1
. texasblum 1
. thailand_facts 1
. thatguythatguythagay 1
. thatwhichshinesforth 1
. thebestboner 1
. thebitlebowski 1
. thebowlofbeans 1
. thecurious0ne 1
. thehulotribe 1
. thenowl9 1
. theprodigalbootycall 1
. therethno2ndbest 1
. theyeatcheese 1
. thoushaltnotfomo 1
. three-polish-cowboys 1
. thuanjinkee 1
. tigawood 1
. timwmusic 1
. tmturbo 1
. tokenizedhuman 1
. tomr750 1
. toothache0 1
. traumerx 1
. travist85 1
. tricky-troll 1
. troyboltonislife 1
. truthman1990 1
. truuy 1
. tsokos 1
. turtlesaur 1
. txstreet 1
. tyrolf 1
. ubiest 1
. urbandystopia 1
. usesbinkvideo 1
. vacremon2 1
. vashstamp3de 1
. vbuterin 1
. vechain_10_dollars 1
. vegetable-agent-6491 1
. visciousvenison 1
. vitalik-is-jesus 1
. vlatkovr 1
. vsesuk1 1
. washedupdiamond 1
. waste_statement_6404 1
. west_compton 1
. whatup1111 1
. whcrawler 1
. wmsy 1
. wompydonk 1
. yllfigureitout 1
. yogofubi 1
. zamicol 1
. zebradice 1
. zephyrflash12 1
. zkstx 1
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Weekly Doots

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Week #56: February 16, 2024

Listen Live | POAP Checkout

Announcements

The morning trinity

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u/hehechibby

Ethereum

u/Colombian_Meatsmoker

$2847

u/FrenktheTank

0.0544

u/usesbinkvideo

89,350 hodlers subscribed (-17)

Weekly Haiku: u/Jey_s_TeArS

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The next fork in March,

Continously overarch,

Leave the rest to parch.

Shitpost of the week: u/doomfuzzslayer

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Guys I’m really worried. Cardano. You’ve heard of it right? Pretty sure the founder and lead dev - can’t remember his name but he has a dope beard - also the founder of playboy (or maybe it’s one of those boomer porn mags - hustler?) Anyway dude is LEGIT and recently announced they’re moving to ON CHAIN GOVERNANCE! You can’t get more decentralized than that. Pure democracy. Tokens = votes just like in the REAL WORLD. Eth and dare I say Btc need to get their shit together. Btc is a horse and buggy (with shitty suspension). Eth is a stock car (leaking oil). Solana is a space ship (leaky o ring - we know how that ends). Algorand is…sorry lost my train of thought. Cardano tho. They’ve FIGURED IT OUT!

You’re on alert eth devs. The time of autocratic rule will soon be over. On chain governance - pure clean democracy as it should be - is our future.

u/benido2030 was looking for a new EthFinance $STRK delegate and u/panthoreon stepped up!

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u/benido2030:

Argent yesterday announced on twitter (you’ll not see me using that new “brand”) that

The Starknet airdrop is coming soon 🪂

I think Argent and Starknet are in a rather strong partnership. Argent is now a Starknet only wallet (Ethereum etc technically still works, but I think all other chains are “legacy” by now). If they post stuff like that, it’s really close.

We have two members from the community already that would like to be “our” delegate:

They both have been delegates for some time, since Starknet governance is already up and running. This is great, they know how it all works, they are known (both here and within the starknet ecosystem), so these are great people to delegate to.

But I would still like to find a 3rd, “fresh” delegate, someone who has not been a delegate but is familiar with Starknet, wants to go into governance and has the time and energy to listen to this community.

This time I would like to change the process a little. If there are people that want to be a delegate there, feel free to leave a comment. But since last time there was only tricky (and they sadly had to drop out again because of missing free time for such an adventure) I think we could also propose people we feel would make a great delegate. Those members of course have to decide if they want to do it (and potentially starknet is not the best protocol if they are not users/ familiar) but at least we can get a discussion started :)


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u/panthoreon:

So in response to this post from yesterday and the thread on farcaster: I would like to get more involved with the ethereum community, so I would be honored if elected as a delegate for starknet.

I am a non-dev person with a mechanical engineering background, working in the supply chain field with a wide variety of functional experiences like network planning, procurement, demand planning, and logistics. My background equipped me with strong logic-based thinking, process mapping, and root cause analysis / problem solving skills.

As a person, I come from a very humble background that I believe has granted me a more holistic worldview; born and raised in Turkey, where corruption and poor fiscal management are like bread & butter (hence we see a wider adoption of crypto there):

I am very familiar with oppression, I know how it feels to be completely insecure in the midst of a military coup. I know what being tear gassed just for walking on the wrong street feels like. I know first-hand that to a third worlder, blockchain technologies mean a whole lot more in financial sovereignty.

Yet, I have also gained perspective of the Western world as i have been living in US for the past 10+ years, developing my expertise in Supply chain.

A bit on the lighter side; I am a fitness enthusiast and have been a division 1 athlete in the past, I have self-taught art to a pretty serious level (primarily drawing) from imitating Spiderman comic books as a kid, and a huge animal-lover that spends a lot of his time with his two dogs.

I have known about ethereum since the single digit price times but was at the time not interested in “crypto”, seeing only gambling as its usecase back then.

I got more interested as the ecosystem developed and we started seeing real applications of DeFi, when I joined this community and have been a relatively silent reader that contributes every once in a while ever since. I am part of EVMavericks and active in a few other groups on Discord where you can find me under another handle: Aybala.

My real “Aha” moment happened when - thanks to this awesome community - I attended an EY blockchain conference in NYC, and learned about Baseline and the potential applications of zero-knowledge within my industry, supply chain. Ever since, I have been more invested, both financially and timewise, in the overall blockchain ecosystem.

As a non-dev and a non-social media person, there are fewer possibilities to contribute to the ecosystem but being a delegate is something I can do.

I can commit to you all that I would invest the necessary time to ensure the best interests of this group, that I can bring to the table a perspective that is able to empathize and consider a wider ranges of human experience and be meticulous and process-driven in approaching any proposals / initiatives.

I appreciate everyone’s time reading this and the consideration. Let me know if there is anything I can answer for you.

u/HombreDeCamote shares a long journey with a happy ending

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A year ago I lost access to a significant to me amount of ETH. Since then I had been working with developers from Offchain Labs and The Arbitrum Foundation to retrieve the funds. Two weeks ago, following an incredible amount of effort from some big-brained devs, developers from The Arbitrum Foundation deployed retrieval contracts. Unfortunately the contracts were front run which resulted in the ETH being sacrificed and converted to a large block proposer fee. This would be similar to if I dropped a dollar on your front yard and asked you to pass it to me but when you reached out to do so, someone ran between us and grabbed the dollar.

I followed the transactions using a block explorer and noted that white hat hacker c0ffeebabe.eth had also attempted to rescue my funds but was also unable. I learned that c0ffeebabe.eth has used their skills to protect everyday users, in once instance they rescued $5.7M/2879 ETH from hackers and returned every cent/gwei, so I reached out for help. They, and users from this sub, were able to help me confirm that the proposal fee address belonging to Staked, which was recently acquired by Kraken Digital Asset Exchange.

I was able to get in touch with several decision makers at both organizations. I explained the situation and provided documentation to prove the ETH had belonged to me till I lost access. Within a few short days they told me they had decided to return my ETH to me. As far as I know this is the first time a validator has returned a block proposal fee in an instance of theft or exploit , but please correct me if I am wrong. Regardless, I hope that the actions of Staked, Kraken, the Arbitrum Foundation, and OffChain Labs helps to set industry precedent moving forward.

I am incredibly grateful and incredibly lucky for the way this turned out. Without the support, sympathy, and skill of many strangers this outcome would not have been possible. Thank you to all those involved and to members of this community who helped me see this through.

u/Itur_ad_Astra reminds us to keep pushing for execution client change as we are currently in the danger zone

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So, I’ve had an idea about client diversity (and how to push more people to switch clients).

See, we are right now in a “tragedy of the commons” situation, where people CBA to switch from Geth because its usage is falling anyways, so someone else will do it, right?

Plus, psychologically, a 72% Geth dominance looks way better than a 85% Geth dominance. And on top of that, the risk seems lower to just stay on Geth.

But we all know that there’s no difference whether the supermajority client is at 66% or at 90%. A bad block will finalize immeiately, and stakers will lose their stake. Most people on Ethfinance are aware of that.

The risk is the same… right? Well, no.

So, here’s my idea. I think that, if you believe in the dynamics of “Layer 0”, a 66% supermajority is much, much worse than a 90% supermajority for stakers running the supermajority client.

At 90% supermajority, I can easily see the community deciding on either a rollback (yeah, yeah, I know, never again, code is law etc., but let’s be realistic) or accepting the Geth block as the correct one and going forward from there, either with some kind of compensation for Nethermind/Besu clients, or even no compensation.

At 90% supermajority, there would be little discussion and it’s clear to me what would happen. And it’s clearer the higher the Geth dominance is.

However, I think that at 66% things would be way more messier and contentious. This is now the “danger zone” where enough of the community did the right thing and have a strong enough voice, that the outcome of a supermajority client bug will be respected. This is where Geth users find themselves losing their stake.

And they might have a much more quiet voice than they expect. Centralized staking services, which are the ones that are mostly refusing to do the right thing (I’m looking at you, Coinbase and Binance) will just lose someone else’s money, not their own. They got their cut on your profits, they lost your stake, c’est la vie. There might be some lawsuits, they are used to that.

Change your clients. We are far from dealing with this and the situation is still critical.

*Sidenote: I’m very much a layman (albeit a staking one), so I’d like some input if my thinking is wrong.


Something to note with the values on clientdiversity.org is the lower the geth dominance does, the less accurate it is

/- hanniabu

u/superphiz reminds us to be cautious with unnecessary protocol risk

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As of today, Eigenlayer reports 2,470,100 Ether staked. With a total of 30,338,443 Ether staked (according to Hildobby), this represents about 8% of the total staked Eth under withdraw contract addresses developed by Eigenlayer. This is far from the 22% threshold I advocate, but it’s wise to look ahead.

On one hand, I don’t see this as a problem at all. Eigenlayer is cool, and restaking is interesting. I’ve made a small deposit into Eigenlayer and I look forward to seeing what it does.

On the other hand, amassing 8% of the validator withdrawal addresses prior to launch might send some red flags, especially considering that Eigenlayer has indicated that they have no intention of self limiting (It’s somewhere in that chat, I don’t have a time stamp, feel free to offer it).

Why is this concerning? It represents unnecessary protocol risk. Our ultimate mission as stakers is to secure the beacon chain. It’s great if we can eek out extra revenue doing other tasks, but the social contract is to secure the beacon chain. We ought to recognize the real smart contract and governance risks here and recognize that any time we shift the balance and aggregate risk in one large pool we’re posing a threat to the underlying protocol.

As usual, I’m not directing this to you, dear friend, I’m talking about the larger ecosystem risk. I imagine you’re participating in Eigenlayer with less than 300,000 staked Ether and you likely represent less than 1% of the Ether staked on the beacon chain. I’m telling you that large entities who have no commitment to the success of Ethereum may put our network at risk and you ought to be aware of that AND ready to protect the protocol as well as your investment. You don’t have to stand idly by as your work is eroded by anyone.

I’m not asking you to avoid Eigenlayer or any of the cool ancillary platforms that have sprung up around it, I’m asking you to zoom out and recognize the dangers of aggregating risk. This isn’t about Eigenlayer - it’s about ANY risk aggregator who is ever willing to add existential risk to our chain. And I’ll repeat myself: I LIKE the Eigenlayer concept.

u/Tricky_Troll wants to put pressure on certain teams to implement better anti-scam systems

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So, regarding u/HiPattern’s post yesterday about wallet dusting attacks which impersonate the most recent wallet you sent funds to in an effort to make it look like the top wallet in your Etherscan history is yours but it’s actually just a similar wallet which is not yours in an effort to get you to accidentally send funds to their wallet next time you need to send to your previous sender. (Sorry, it’s hard to explain, check out the post if you didn’t get that.)

So currently, people are losing lots of money to these sneaky scams. I could very well see a dark future where I myself let my guard down when selling some ETH to get on the property ladder one day and when I go to transfer the funds to an exchange, I click the wrong account since it’s right there at the top of my wallet’s history and boom. My hopes and dreams of stability in where I live are gone for years to come.

Just imagine thinking you can finally buy a house for your family and then at the last minute one slip up and that whole dream was taken from you. This has happened to people before and it will happen again.

But this is completely avoidable! This is an extremely easy issue to solve. While it would be nice to get everyone to have better OpSec, it’s not going to happen. However, one really minor tweak to Etherscan and it could be solved.

  1. They could add a simple bit of code to either display the Jazzicon/block profile pic next to every wallet address. This way, even though it is small, one could see that the address is different since the colour/design is different.

  2. They could add some code to flag wallets which have similar starting and ending letters. It could be a simple orange warning sign or something which has more info if you have over it or a big banner if you actually click on said wallet.

Best of all, Etherscan is good at this sort of stuff usually. They added a revoke token permissions app to prevent those affected by exploits and that was a much more complicated addition. On the simpler side, they tag known scam wallets as such.

So I’d like this to be a call to action for this community. We have done this before. Previously when we have wanted to get an idea broadcast out to the wider Ethereum community or a certain protocol, we have been able to do it if we all do our part. So please, if anyone knows someone who works for Etherscan or if you have followers/influence on other platforms like Twitter. Please, tell Etherscan to automatically flag dust attack wallets. If we are successful, we could successfully save many people from losing their life savings to this avoidable tragedy.

This is quite possibly one of the easiest changes which could be made to prevent a lot of money from falling into the wrong hands.

Edit: I guess this also should be done in wallets too like MetaMask. So why stop at Etherscan? Let’s make a fuss to every wallet provider which doesn’t have some kind of system to prevent this. It should be as simple as if you shorten wallet addresses, have a kind of warning bubble if there are similar addresses you have previously sent funds to.

u/TheHansGruber is grateful for retroactive public goods funding

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As some of you may know, since the launch of the holesky testnet last September I have been maintaining and testing several thousand genesis validators alongside a dozen or so other meganerds from the rocketpool community. This is in spite of the fact that I almost certainly am responsible for bringing the average IQ of this group down a couple of points.

Over the last few months I have picked up a number of skills required for this sort of thing and I get a great deal of satisfaction knowing I am contributing in a small way to the development and progression of ethereum. I’ll have these guys running for as long as the testnet needs ’em.

Anyway…I am proud to be able to say that, as of yesterday, I have received my first ever retroactive public goods funding from the folks over at ethstaker for operating these validators. Some months ago u/nixorokish posted in here about there being the possibility of a small grant/funding, and I inquired. I have a little extra pep in my step today. It isn’t a huge pile of cash or anything, it’s only meant to cover most of the cost of operating the machines. But it feels like a huge pile of cash to me, because for the first time I have tangible proof that I am, in fact, doing something useful in the space…other than shitposting on CT and farcaster, which I will contrinue to do regardless.

u/OkDragonfruit1929 summarises Ethereum

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Ethereum is not just a cryptocurrency; it’s a platform for decentralized applications, smart contracts, and various decentralized finance projects. This ecosystem supports a wide range of applications, from finance and gaming to art and identity verification and tokenization of real-world assets and tokenization of commodities, offering a utility that goes infinitely beyond what Bitcoin was designed for. Bitcoin primarily serves as digital gold or a store of value, whereas Ethereum aims to be an open, transparent, equitable settlement layer for the entire planet.

The Ethereum network has spawned numerous Layer 2 solutions (L2s) like Optimism, Arbitrum, and zkSync, which aim to scale the network by handling transactions off the main Ethereum chain, thereby increasing throughput and reducing fees. This is in contrast to Bitcoin, which has largely remained focused on Layer 1 (L1) with some off-chain solutions like the Lightning Network, which is dying in front of our eyes. The growth and adoption of L2s arguably add to Ethereum’s utility and value. With zero-knowledge proofs coming sooner than anyone expects, liquidity fragmentation between the L2s and L1 will soon be a thing of the past.

Ethereum’s transition to Proof of Stake (PoS) with the Merge significantly altered its issuance model and energy consumption. In PoS, validators stake ETH to secure the network, which is more energy-efficient than Bitcoin’s Proof of Work (PoW) model. The issuance model under PoS is designed to be fairer and more sustainable, with rewards not exponentially weighted toward the ultra-wealthy with exponentially more computational power, but on rather on a linear model that scales fairly with the amount of ETH staked. This levels the playing field for earning transaction fees and block rewards, contrasting with Bitcoin’s model where mining power concentration can lead to extreme disparities in earning potential where the APR of the ultra-wealthy is magnitudes higher than the APR allotted to the lower 99%.

EIP-1559 introduced a mechanism for burning a portion of transaction fees, reducing the overall supply of ETH over time. This deflationary pressure is unique compared to Bitcoin’s currently inflating supply until it finally caps at 21 million. The fee market mechanism of Ethereum also aims to make transaction fees more predictable.

Ethereum’s ecosystem supports multiple client implementations, fostering a diverse and resilient network. This diversity can reduce the risk of network-wide failures due to bugs in a single client implementation, a contrast to the single point of failure landscape of Bitcoin’s one and only client.

Despite these advantages, the market valuation of ETH compared to BTC has been far too heavily influenced by narrative, “store-of-value” meme-ability, speculation, investor sentiment, and market dynamics. While Ethereum’s technological and ecosystem advancements provide ETH a stronger value proposition, the market has failed to notice.

u/hanniabu warns us of a clever new scam going around

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PSA: New toxic address scam

They register an ENS with your address, such as 0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045.eth (vitalik’s address) so when you search for an address in an app it’ll show in the results, potentially even as the first result as shown here:

https://x.com/haydenzadams/status/1757632516444311937

u/skythe4 breaks the news of the StarkWare airdrop, u/Luukiemans breaks down the distribution, and u/superphiz tells us how to claim and more

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u/skythe4:

itshappening.gif

gm STRK ✨✨✨ Read more: https://medium.com/@StarknetFoundation/introducing-the-starknet-provisions-program-05d03ce13970

https://twitter.com/StarknetFndn/status/1757676598730342761


Let us intro: The Starknet Provisions Program Claiming starts Feb 20, 2024, 12pm UTC Check your eligibility 👇 provisions.starknet.io

https://twitter.com/StarknetFndn/status/1757676600596811928


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u/Luukiemans:

Happy Valentine’s Day stakers ETH Community:

You staked ETH up until the Merge - September 15th, 2022. Note that if you staked via a staking pool or centralized exchange you can’t claim ETH directly through the portal. Your provider should claim the allocated STRK and distribute it to you.

Allocation:


View on Reddit →

u/superphiz:

In case no one has mentioned this, to check your STRK eligibility on an Ethereum address, you have to go to the claim page and click the third tab on the left before you enter the address. This is kind of a confusing ux.

Here’s what the claim page looks like after you click the third tab: https://ibb.co/KVX2C4S

And the claim may be based on your deposit address or your withdrawal address, so check both if you don’t see it.

I think all pre-merge beacon chain depositors are eligible.

Don’t forget to appreciate Starknet for being the first airdrop to show significant support to the solo/home staking community!

Also, it looks like Rocket Pool stakers aren’t able to claim right now, but I’m aware of internal discussions that are very like to conclude with Rocket Pool node operators claiming STRK.

Week #55: February 9, 2024

Livestream Recording | POAP Checkout

Announcements

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/FrenktheTank

$2450.76

u/alexiskef

0.053

Weekly Haiku: u/Jey_s_TeArS

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The next fork in March,

Continously overarch,

Leave the rest to parch.

Shitpost of the week: u/doomfuzzslayer

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I got your points. Meet me on the corner of West 32nd and Buterin at 10 tonight. Dress like you’re leaving the bar early heading home to a WoW raid. Act casual - like you know me. Talk in a Lithuanian accent - my devs don’t like Americans. Bring your seed phrase and pass it when we shake. If you hear somebody with a Swiss accent just keep moving and don’t make eye contact. Our danger word is Cardano. You hear that word. Get the hell out of there. if this works your points will show up within 48 hours. These are loyalty points - for fun. Like maybe we’ll let you on an AMA with the devs some day. We’re NOT doing a token - hear me? Don’t even mention a token. If you do…let’s just say not all airdrops end well if you catch my drift

u/TheHansGruber is looking into cool new staking hardware

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Spent some time at the rack last night. Updating the staking machines, swapping some patch cables, etc. I’ve got a new (to me) managed POE+ switch I’m pretty excited about. Gonna learn how to do vlan stuff for better security, and so I can install some POE cameras. Gotta rent a trenching machine and bury some cable too…not really excited about that part.

In going down the POE rabbit hole I came across a couple of interesting POE devices…including a POE NUC…which is awesome. It’s priced like enterprise grade hardware…because it is. But a fanless, POE NUC that has the processing power to stake, yet is power efficient enough to be able to operate over POE is the dream. I already have the machine I’ll be using as a nodeset operator setup, but I am considering throwing my hat into operation solo staker with etherfi too. If I could just hit one of these lottery blocks people keep talking about I would consider grabbing one of these POE NUCs.

While doing my normal monitoring I noticed that, on mainnet validators, the rewards per epoch have begun to consistently drop below 10,000 gwei…and I wonder if we will ever see 5 figure rewards epochs again. Holesky validators never saw 10xxx gwei rewards…it launched with well over a million validators…I think we have closer to 1.5 million validating currently. These lil guys are receiving 7xxx gwei per epoch. Will we see 1.5 million active validators on mainnet? I’m guessing that might be close to the upper limit of what people will accept as a return on their investment. Depending on what restaking does to overall APR, of course. I don’t have enough info to begin to speculate on that.

The dencun upgrade went boringly (good!) on sepolia, and after updating the holesky machine the consensus client log reads “INFO Ready for Deneb”. Me too, computer. Me too. Mainnet soon after.

(in the voice of the thing): IT’S BLOBBERIN’ TIME

u/benido2030 gives us a comprehensive rundown on restaking

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What is restaking?

I will try to explain using EigenLayer as an example, following up on u/stablecoins post, but also because I have seen a lot of comments/ questions and think the concept isn’t really clear. Please keep in mind that I am also writing this to structure my thoughts, but am not an expert at all, so things here might be wrong. If you spot mistakes, please correct them!

What is the general idea of restaking?

Restaking means that we use capital that is staked to secure Ethereum - both staked ETH in validators but also via LSTs - and also use it to secure something else (and something else).

What kind of things can be secured by restaking?

Basically anything. It could be an oracle. A data availability solution. An L2/ appchain. Anything that needs security.

Why is this needed?

Bootstrapping security for a new protocol is hard, especially if you want the validator set to be decentralized. Eigenlayer wants to be “a marketplace for trust”. On this marketplace protocols that need trust/ security can tap into the already existing staked capital that Ethereum offers and build on that. Eigenlayer’s thesis is that this is way easier than building it on your own. Their argument also builds on web2: Why have your own servers/ authentication etc. when you can just build in the cloud (e.g. AWS) or use Auth0 etc. = existing solutions that allow you to focus on your core product.

Important: the existing solution is not Eigenlayer, but the security offered by stakers / holders of LSTs.

So how does this marketplace = Eigenlayer work?

New protocols that want to build on Eigenlayer basically define what kind of trust/ security they need. This comes down to: Do they want only solo / home stakers to secure their network? Or are LSTs okay as well?

At the same time they define what they are willing to offer for that service: How much are they willing to pay for securing their network? This could be in ETH, their native token etc.

Also they of course define what the restakers have to do to secure the network. This means they provide a software/ client that the restakers have to run to secure the protocol. This is similar to what stakers run with execution and consensus clients to secure Ethereum. All these are called “AVSs”. Actively validated services. Actively. Someone needs to do an action.

Restakers start by either creating an Eigenpod or by depositing LSTs. An Eigenpod is a smart contract that a validator points to. So if a validator wants to exit the beaconchain, the ETH goes to the Eigenpod first. Similarly by depositing LSTs into Eigenlayer you deposit it into a smart contract. If the restaker wants to exit Eigenlayer there is a 7 day period before they can finally really withdraw their assets.

This means that the assets don’t leave the validator or the Eigenlayer smart contract. The secured protocol does not control the assets.

After depositing restakers then opt-in if they are willing to secure the new protocol. They accept the offer made by the protocol, run the client and secure the network and are paid for this service according to the terms.

There will also be operators that run the clients for you. So the restaker deposits, but delegates the actual management of the clients to a 3rd party. In that case you obviously trust someone else to do the job of securing correctly. Just like you do with LSTs or dPoS in other ecosystems. These operators of course ask for a fee to do that.

If they behave according to the protocols rules (= they secure the protocol as intended) they are paid. If they misbehave (=they attack the protocol they are supposed to secure) they can be slashed just like someone could be slashed on the beaconchain.

So how does the slashing work now? If they are caught, the protocol can ask Eigenlayer to slash the restaker. Eigenlayer right now has a “slashing committee” (my term, don’t know if that’s the real name of it). This committee basically checks if the restaker really misbehaved and if the slashing request is fair. So right now a protocol can’t just slash you as a restaker, there is a (centralized!) security mechanism in place.

If the restaker indeed attacked the network, they can’t withdraw their LSTs and the LSTs are slashed. If they have a validator right now (!) no one can force them to exit the validator, so they can continue validating Ethereum. But when they want to exit, they will withdraw to the eigenpod and then the Eigenlayer protocol can slash the portion that is supposed to be slashed before the restaker can withdraw the rest.

I don’t know what happens to the assets that are being slashed. Maybe someone can add that? Are those burned? Going to the protocol that did the slashing? (That would be a strange incentive, but maybe that’s the case)

So where does the yield come from?

First of all: There is no yield by just depositing. Only if you start securing one (or more) protocols, you will receive yield. This also means that right now there is only smart contract risk, no slashing etc.

This yield is what these protocols offer to restakers for their service securing the new protocol. It can be paid in different tokens (or a mix). Could be new issuance. Could be from their treasury. Could be part of the fees they make with the product running on top.

-–

But Benido, this all sounds great, I was told Eigenlayer is a huge risk, I don’t get it, that is like risk free yield on top of risk free yield?

If you were around in spring of 2022, you might remember 3AC (Three Arrows Capital). They were long when the market was going down and at one point lending firms ask for more capital from 3AC. What did 3AC do? They used the same collateral over and over again. So what happened? All lending firms found out that the collateral they thought they could liquidate (“slash”) was posted as collateral with other lenders as well. 3AC basically “restaked” the same collateral over and over again. No lending firm could liquidate the collateral and they all went tits up, the whole market crashed and it was a dark time…

Of course this was off chain and Eigenlayer is onchain. With restaking we know how many times a certain asset is used to secure a certain protocol. But in the end something similar could happen. Deposit asset X once, attack several protocols and all protocols find out that they can’t slash, because it was slashed already.

On top we could see borrowing and lending protocols that allow LRTs (Liquid Restaking Tokens) to be deposited. So an attacker could even borrow against it to acquire more and attack cheaply…

Using the same collateral several times is something that can be abused. Yes, it’s onchain, so more transparent, but that doesn’t make it bullet proof. We will witness attacks. This might lead to a cascade of liquidations and could take down so many protocols… and always remember: These assets started as stake to secure Ethereum, in a worst case scenario ETH’s security might be diminished and attacks might be possible in ways we can’t even imagine today.

-–

I hope this explains restaking, but it might just be more confusing because I am missing things, the structure sucks etc., I don’t know. If you have questions, post them!

u/alexiskef introduces POAP Global, a cool new use case!

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Exciting news for the POAP enthusiasts!

Poap Global, a project which is not officially related to POAP but rather a community project that utilizes the POAP tools, just had their official launch!

(Before publishing this comment, I asked Patricio Worthalter, the POAP founder, regarding the projects legitimacy, and he gave me a thumbs-up: "Yes! We support them. The founder is a valued member of the official POAP curation body. This is a side gig")

So, I went through their website and will try to explain what they are, and what it is that they are launching!

What is Poap Global? It’s a "a groundbreaking extension of the proof of attendance protocol concept operated by hodl labs. Imagine being part of a worldwide irl scavenger hunt. Only in this game, the treasures are unique digital collectibles at every landmark, and the playground is planet earth"

How do you participate? “You can either “****host****” a poap at a location of your choice or travel and collect other people’s poaps!"

Hosts
You can ‘host’ a poap at a location of your choosing. Whether it’s a favorite hiking trail, a landmark, or a hidden gem in your city, you can make it a part of this global game.

So, how can you be a “Host”? Well, there are 3 steps:

  1. Submit location. You first choose a landmark, then design a POAP and submit it..
  2. Purchase a POAP NFC dispenser from their store. This is designed to be installed in proximity to your selected landmark. Visitors will be able to tap their phone against the nfc to instantly receive your special poap for that location.
  3. Program dispenser. When you first receive your dispenser you will be given a menu to select your approved poap and program it to the nfc.

There is also a Global Leaderboard (in the works) to "showcase top explorers and collectors", and a “dynamic globe that pinpoints where all the poaps are hidden”.

Collectors
As a traveler and explorer, you can embark on a journey to collect poaps from various locations hosted by others. It’s a digital treasure hunt that takes you to new and exciting places.

The idea seems to be a perfect use-case on how to further utilize the POAP protocol. I jumped right in and bought a small number of the NFC dispensers.. I plan to “install” them at my home town center and at my local sports teams’ soccer grounds..

u/_WebOfTrust shares their experience as a newcomer to running a node

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Folks here understand and are comfortable running an ethereum node but sharing my learning and experience in running a non-staking node.

There is a learning curve and documentation needs some improvement, knowledge is silod within discord and in some case you are at the mercy of support from dev team. I learned a lot, definetly more comfortable sharing and talking about different clients, node and confident that I can help someone strugling with running a node. This was a test run on my Pi, waiting for proper hardware to test the script again.

Without the support and motivation from the members of this wholesome community, I would not have considered heading in this direction. So, thank you, my dudes.

u/superphiz gives some sound advice around taking worthwhile risks

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Naw, this is pretty wise, even though it means you won’t get an early participant advantage IF restaking is successful.

In 2009, people who took a risk on bitcoin did well.

In 2014, people who took a risk on Ether tokens did well.

In 2015, people who took a risk on The DAO we’re bailed out in a one-time network fork.

In 2017, people who invested in ICOs like EOS lost lots of money on products that never materialized.

There’s really no way to say what will happen with restaking. I’m not convinced that there’s a large enough market to support what’s being built- maybe it will develop or maybe it’ll just trend toward other solutions. All of this is a risk and it’s wise to wait and see. As I’ve said publicly, I’m okay missing a huge win, and I’m going into all of these opportunities with a total of about 1% of my coins. I’m okay with any outcome.

I can sense that a lot of my investment-oriented friends think I’m just being negative, but I’m here for the long term success of Ethereum, not the flavor of the week. Just be who you are 😊

u/Ethical-trade shares some great news on the client diversity front!

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Green day on the client diversity front!

A month ago, Geth’s market share was 84%, yesterday it was 78%, today it is 73%.

And also good news, the 5% difference between yesterday and today went to Nethermind, which makes the execution layer clients list as follows:

Geth - 73%

Besu - 14%

Nethermind - 12%

Erigon - 2%

I’ve not been able to identify the provider(s) that kept their words but I’m hoping one of our experts will soon be able to tell.

u/austonst shares Vitalik’s latest EthResearch post on the gas limit

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Toni and Vitalik put together an ethresear.ch post on increasing the block gas limit. This topic had moment in the spotlight a few weeks ago when Vitalik suggested we might be able to handle a block size increase and kicked off a flood of discussion. I haven’t seen as much social media fuss recently, but with this post we’re getting into the research of if to do it, and how to do so safely. Their strategy for increasing the gas limit? Decreasing it first! Kinda.

The trouble is that large blocks are possibly an issue today, even without an increase. There’s a great figure in the post showing that reorged blocks tended to be almost two times larger (in bytes) than blocks that get finalized. Discussion about confounding factors aside, it does seem to suggest that a naive gas limit increase would hurt consensus health.

But block size comes in a distribution. The biggest blocks are a problem, but the median block size is 14.5x smaller than the maximum possible, very conservatively low. So what Toni and Vitalik are aiming to do is decrease the maximum block size and reduce variance so that we can safely increase the average block size.

With blobs coming up soon, the central idea is to increase the gas cost of calldata, the current way of getting data to the EVM. Increasing the gas cost of calldata means that blocks can hold less before they fill up, so we get a reduction in max block size. Then we could feel safe increasing the gas limit somewhat, presumably making space for more EVM execution, rather than data storage, to occur. And possibly make room for more blobs per slot.

The post has 5 different suggestions for how to do this. Personally, I like multi-dimensional EIP-1559 with a separate market for calldata, but the post argues that may be overly complex.

u/Set1Less warns us about a bad experience with a certain smart wallet

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After many years in crypto. I seem to have run into the first instance of “losing” my wallet which is an account abstraction wallet from Particle Network(Ally.build created for the Linea tasks) created through signing in with email or twitter/discord, but Im unable to recover it for whatever reason. Apparently I may have used a different email or social account but I doubt that - I have tried logging back in with all my accounts and various combos, but it only loads a brand new wallet and not the ones which had the funds in it. The particle network discord is filled with people complaining about losing access to their wallet and the only reply they are getting is “read faq”

If you are a crypto native, using an AA wallet seems rather pointless - not only does it create a dependancy on a centralized wallet provider (another example is people losing access to Argent) but also bugs and or glitches can lead to you losing your wallet

Update: Particle wallet seems to be extremely poorly designed. There are multiple channels on their discord with people complaining about being unable to access their funds. Seems signing in with the original social media/email account sometimes results in a brand new wallet being created, and not the earlier wallet that was in use and funded by users. Whats worse is that the team is not willing to accept there is an issue, but instead seem to hold their ground that everything is working as expected - despite hundreds of users complaining about being locked out of their wallets. The fact that so many people have the same issue in accessing their wallet at the very least requires the wallet team to look at the issue more closely, instead of firing off “Read FAQ” template messages…

Its shameful that Linea are using such operators for points scheme where scores of users are unable to even access the wallet they created earlier.

At this point I can only warn others from using any wallet related to Particle network including Ally.Build

u/696_eth starts a discussion about securing your stack

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Caught up on the last few dayllies and I’ve seen a feel people lose a lot. Can we talk about securing our bags a bit and thinking of how to avoid losing the entire stack? yes, it’s an unpleasant to thing to think about but I’d rather do it and not get rekt completely.

I’ll start with some of the things that I do and remember off the top of my head and feel free to chime in w others.

u/SikhSoldiers shares his latest write up about RocketPool

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It has been a long time since I’ve made a top level post here it feels like. Alas, that’s what medical school does to a person. I am back to share with everyone my first major writing piece in over a year -

Hybrid Theory: Rocket Pool’s Middle Way Between Native Liquid Restaking and Pure Staking.

The Rocket Pool pDAO will soon be voting on allowing, alterning, or denying my proposed integration bounty. This essay outlines why I think it’s a good idea for Rocket Pool, Eigenlayer, and Ethereum writ large.

The broad idea is that we can enable node operators to join Eigenlayer without adding risk to rETH holders if we integrate in a way that retains senior debt for rocket pool. I dub this hybrid restaking. The essay goes through all the different ways people can restake today and outlines their flaws.

Hybrid restaking enables permsionless node operators to be sustainably profit maxi without harming rETH. Rocket Pool node operators could experience many airdrops and yield from different AVS services.

I am happy to answer any (sincere) questions.

https://mirror.xyz/jasperthefriendlyghost.eth/Xv7lLt8SVTfCaFnVie50IvvFrI4-TkQTgZcxb\_omEnA

Week #54: February 2, 2024

Livestream Recording | POAP

Special guest Lucas from PODS, a new way to publish, discover, and own your favorite podcasts.

Announcements

The morning trinity

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u/Tilligan

Ethereum

u/FrenktheTank

$2307.80

u/Equal-Jellyfish1

0.0536

Weekly Haiku: u/Jey_s_TeArS

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The hacker running,

While the tables are turning,

Ether is burning.

Shitpost of the week: u/SeaMonkey82

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Every day thousands of validators are forced to toil away in centralized server farms under the dangerous working conditions of using a supermajority execution layer client. For just 32 ETH, you can give a validator a home and keep their stake safe from harm. Please give today.

u/superphiz updates us on client diversity moves and the Ethfinanciers who are helping us to track the situation. And u/alexiskef chimes in with a positive reply after putting pressure on Consensys.

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u/superphiz:

You should know that the tide toward client diversity is changing dramatically. I’d like to thank the folks who have supported this work and those who have provided great updates here and I’d 100% encourage you to continue engaging in that community service role.

On January 22, 2024, Brian Armstrong from Coinbase responded to DCInvestor to say that he was taking a look at client diversity within Coinbase’s staking operation and they’ll report back in February. If they continue to suggest that other clients aren’t mature enough, we’ll wonder why Coinbase is utilizing open source software without contributing back to the code base as would be expected.

AllNodes, p2p.org, and Anker announced switching to minority clients within the past 24 hours. This switch is a great illustration of how efficiently large operations CAN shift clients if they choose to. The value of these victories, and the contributions by their respective contributors cannot be overstated. Thank you, Allnodes, P2P.org and Anker.

After an initially tone deaf defense, Stakefish seems to be changing its tune a bit, but despite a reference to the responsibility of client diversity, there’s little apparent commitment to make real changes, so lets watch this one closely.

Lido operators represent the largest group of validator operators, and our data suggests that they’re still highly reliant on geth. /u/yorickdowne has been a great advocate for decentralization from within lido, as a node operator for reducing the supermajority client, but the push hasn’t been very successful yet. I’m optimistic that at some point they’ll act in their own best interest.

Hanni Abu’s ClientDiversity.org is our best view into client diversity, and the execution client data currently sourced by word of mouth. While I look forward to more and better data, I deeply appreciate and value this source.

I’d like to send good vibes to everyone who is working on this front, groups like EthStaker, led by /u/nixorokish, Jasper the Friendly Ghost, who is pouring his passion into this [and I sure af hope he’s still thriving in med school], and Anthony Sassano who, through The Daily Gwei, beats this drum CONTINUOUSLY, also /u/interweaver for reaching out to providers and educating about the risks of a majoriy client fault. And perhaps the biggest thanks to /u/hanniabu through EtherAlpha who tirelessly develops data that enables all of us to see the threats ahead of us. Without his efforts we’d be flying blind toward a black hole.

None of this even mentions the deep and detailed academic work and research going into client diversity. Thanks to /u/haurog for providing insight into the academic and EIP efforts.

For my part, I’m continuing to go back to home stakers as the best future for the network. Giving lots of control of the network to third parties with little or nothing at stake is dangerous and undermines the goal of a decentralized network. If you have any way to stake from home, as a solo staker, Rocket Pool operator, DVT operator - whatever - I really encourage you to do that.

I’ve started a very [very] basic document to help us track these events, please feel free to hop in and help develop it as you see fit.


View on Reddit →

u/alexiskef:

😊 More good news on the client diversity front!

About 4 days ago, both u/0xboba and myself (following the news that 🦊/Consensys have began offering their users the ability to stake through their “own” validators), were wondering if anyone knew which Execution (and Consensus) clients Consensys Metamask Staking are using..

So, I contacted Consensys, who directed me to 🦊 support.. I asked the following:

“What are the client combinations (EL/CL) that my validators will be running? I understand from some (very) basic information the MM Staking web page provides, that you”operate diverse validator clients and distributed infrastructure hosted across multiple regions and cloud providers”, but in light of the recent software bugs in Besu and Nethermind, I need to know that my capital is not at risk by depending on a super-majority client like Geth"

They answered by just pointing me to some vague articles on their support page.. I pressed on, asking for details, and they just answered!

"As a company, Consensys is deeply committed to client diversity: we are developing an Execution Layer client (BESU) and a Consensus Layer client (Teku). Consensys Staking infrastructure uses an algorithm to distribute validators across multiple Execution and Consensus Layer clients. On the consensus layer, we run 2 clients for validator duties: Teku and Lighthouse. Our algorithm allocates new validators to Teku or Lighthouse to maintain a 50%-50% split between Teku and Lighthouse across the entire platform. On the execution layer, we currently run the majority of Geth. Our top priority is to increase BESU’s footprint: we aim to reach 50% of BESU in the coming weeks before the end of February. After the Merge, Consensys Staking evaluated the use of BESU and provided feedback and support to improve performances, in order to optimise rewards for End Users. The BESU team worked tirelessly, releasing new features such as a fully flat state DB and other improvements that bring BESU much closer to Geth performances. We started BESU rollout across our platform and will iteratively increase BESU’s footprint to reach 50% of all validators we operate before the end of February 2024. This progressive rollout aims to ensure no or limited performance degradation for our users. Beyond client diversity, Consensys Staking validators are distributed across 2 clouds (Azure, AWS) and 6 regions (2 in the US, 2 in Europe and 2 in Asia)"

😊

u/nixorokish reviews the Keystone hardware wallet and u/alexiskef also chimes in with a review.

View on Reddit →

u/nixorokish:

i tried out the keystone hardware wallet and wrote up some thoughts on it: https://twitter.com/nixorokish/status/1751319725274214825

i had more criticisms than praise and feel pretty lukewarm on it
summary:

I doooo like

kinda wanna try the Hito next. what i REALLY want is for Grid+ to make a smaller, travel-friendly wallet


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u/alexiskef:

Huh! I actually saw your comment during Xmas (the one telling us you were going to try it..) and.. bought one right there and then!

I was actually meaning to ask you about your initial impression!

Personally, I have been more than happy with it. To the point where it has replaced my Ledger play-money wallet!

I too encountered an initial software upgrade problem, but everything worked at my second attempt.

I see what you mean with the too-much-QR codes, however that IS how the device works.. And on that note, I’ll add that both the scanning by the device (of the laptop QR) AND the blurred scanning by my laptop (of the wallet QRs), works flawlessly and super fast.. I find myself going through txs much faster than with my Ledger..

I do agree with you on the “start page” point. It IS quite confusing. I too initially wanted an “anchor” type of screen. Possibly (as you said), with a clear list of my wallets..

However, after reading more on the way the device works, I came across the article which explains the security provisions for multiple wallets.. The device loads each wallet with a different (seed phrase) AND pin. And you can only have one wallet active.. This is quite logical, as only YOU know the number of wallets (seed phrases) that are loaded (but hidden). This wouldn’t be possible with an “anchor” screen.. And even if users did not care for all their wallets to be listed on that screen, they’d still need to input a (different) pin, each and every time they went back onto that screen and selected a wallet..

My screen has not been scratched so far, but I do see your point here.. I am very (too..) careful while using and storing it.. I already ordered the pouch from their website..

I do also like the screen size, the clear signing info, and most importantly the biometrics..

One other thing I have to add, is that I got really really confused when trying to connect it to my (already Ledger-connected) Metamask extension.. As in super confused..

So I downloaded Rabby (thank you u/superphiz), and started fresh.. Everything made sense right there..

u/pa7x1 clarifies the fact that not all slashing is equal.

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Most people confuse the different penalties the protocol may apply, because we tend to be a bit lazy with the penalties and call everything slashing. But there are different penalties. Slashing is just one of them and is almost impossible to trigger by a bug. And even when it happens due to operator mistake it slashes for 1 ETH. Just so you can see it directly, here is a very recent slashing.

https://beaconcha.in/validator/1061987

This validator lost 1 ETH (and a bit extra due to missed attestations after, but rounds to nothing) and is exited. But if there had been a mass slashing affecting many people, then the correlation penalty and inactivity leak kicks in, that’s what can take you to total loss of capital.

So as I was thinking about it these days I noticed that mixing all the penalties under slashing might be partly why we have supermajority issues. Nobody wants to lose money for something they don’t have control of. Much like people tend to fear traveling in airplanes more because the situation is out of your control. So losing your stack because of a bug you have no responsibility of is avoided, and everyone flocks to the client that is perceived safest.

But this is the wrong mental model of the network penalties, the network is not gonna punish you for uncorrelated issues because it’s designed to work under imperfect conditions. So this doesn’t really bother the network. If you have a bug with a very minor client you may be offline and missing attestations a few hours, maybe a day. That’s nothing, penalties for that are very small. You would need to be 60% of the year offline to lose money for inactivity. That’s how small those penalties are, a few hours here and there is not even something you can feel.

But if it loses at least 1/3 of the validators then the protocol gets pissed, because it cannot fulfill its duties. And then punishes, and can punish very heavily. The penalties here are the inactivity leak and the correlation penalty. This is what you should fear.

So the TL;DR of the story is that you shouldn’t fear client bugs per se. You should fear having the same bug as many people, that’s what triggers severe penalties. And the good news is that you have total control over it. You have the choice to not suffer significant loss of capital. It’s entirely on you. Choose minority clients.

u/HairyGuch made a website outlining the latest Ethereum roadmap.

View on Reddit →

Hey all. After Vitalik’s roadmap update, I took a stab at putting all the relevant information I knew of in a single place. Some of the sections remain a WIP, but I’m mostly happy with the layout.

https://ethroadmap.com/

I’m looking for feedback (or even contributors) to help make it better. I have thick skin so feel free to let her rip.

What’s not here that you think would be useful? How would you like to see each section fleshed out more?

u/interweaver shares Rocket School needing some final touches before launch and shares a sneak peek then shifts the focus onto the next hardfork

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Do you run Rocket Pool minipools? Or are you interested in learning how to do so? EVMavericks have spent the past year and a half building Rocket School, a video course about Rocket Pool, and we need your help reviewing or testing it!

See the main post in r/ethstaker here: https://reddit.com/r/ethstaker/comments/1ae56h9/do_you_run_rocket_pool_minipools_or_are_you/

Sneak Peak


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I would highly recommend anyone interested in Ethereum’s upcoming upgrades read Christine Kim’s notes on this week’s ACDC call. They contain a fantastic review of some of the EIPs under consideration for the Prague/Electra small-feature hardfork currently being targeted from the end of 2024, prior to the Verkle fork coming after it.

Only a few relatively small (but important) EIPs have been tentatively scheduled for inclusion; some of the slightly larger ticket items are still under debate, mostly because client devs believe including them would push Prague/Electra into 2025.

https://www.galaxy.com/insights/research/ethereum-all-core-developers-consensus-call-126/

u/LogrisTheBard shines a light on the darker side of this space

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I usually think of the minimum requirements for a PoW system as:

  1. There is basically infinite work to do. We can’t have the consensus of the chain halt because it’s waiting for work to arrive.

  2. Anyone can do work and submit a proof of that work for verification. If this was limited to known entities they could form a cabal that halt or at least slow the chain at will.

  3. Anyone can verify/validate how much work was done objectively (at least statistically). We have to be able to reach consensus on how much to reward each miner. Again, anonymity and open access prevents effective conspiracies.

  4. Validation takes far less time than it took to do the work. A system that relies on massive redundant computation for consensus will have to compensate too much per unit work done to be economically effective in the long run (looking at you Bitcoin).

In my previous post I talked about GenSyn which swapped out useless hashing for useful model training and the economic potential of such a solution. AI training just happens to be a task that meets all these criteria. There is basically infinite demand for AI training. I can think of a few other tasks such as protein folding (folding at home) or private key cracking but most computational tasks don’t meet these criteria and even some of those that do wouldn’t have much economic value. As such, while Gensyn seemed to have a neat idea, it didn’t seem to be a paradigm shift so much as a cool footnote in history. However, what happens if we relax requirement 3 a bit and allow for subjective consensus?

“But Logris, what the hell is subjective consensus?” Glad you asked! Basically it’s group think for deciding on things with no objective answer. The most common example of this is every oracle you’ve ever known. Smart contracts can only refer to chain state. They can’t see BTC price feeds on Kraken for example. All data that is off-chain is subjective from the perspective of the chain. Consensus on that data is decided subjectively by oracles. But not all oracles work alike. Chainlink is optimized for a small number of data streams with high liveness. UMA is optimized for the long-tail of queries with latency that can be measured in days.

The interesting part about UMA in my opinion is they apply a commit-reveal scheme and use stake to keep people honest. All participants submit their data in an encrypted way before a deadline, then submit the decryption keys for that data after the deadline when no answer can be changed. The do something like average the result and people with answers too far from the mean lose some of their stake. The obvious Schelling point for a submission is the truth. Expecting the average to be anything but that requires a conspiracy of submitters to distort the data. Unless you believe such a conspiracy exists, the rational answer to submit is the truest one you can find. All you’re really doing is measuring what you believe everyone else will believe, but in practice this works well when there is an objective answer rather than something either unknown or disputed. You could imagine how this could be used for anything: “Did Trump lose the 2020 election?”. I expect you’d get a very different answer if you shoved that question through this system than if you polled the average US voter. Honestly, I expect you’d get a better one.

So what would happen if you applied something like UMA consensus to a PoW blockchain? Addressing the points above in order.

  1. You would still need a stream of continuous work for miners to do. Either that work has to be submitted by validators or it needs to be self-evident to miners. Nothing here says the work has to actually be useful, just eventually verifiable.

  2. You still need permissionless mining but if the work isn’t self-evident the network may need some type of sampling to throttle the participants which means you’ll need miner stake for Sybil resistance.

  3. Validation would still be permissionless but validators would definitely need stake for subjective consensus to function.

  4. This is basically unchanged but I will note that nothing says payouts in a blockchain have to be immediate. It’s totally fine if people receive their payout a couple days later. That said, you want consensus to happen continuously so you probably want each participant running a program rather than manually voting.

What types of tasks could you now do that you previously couldn’t have? In order of least to highest villainy:

  1. Miners provide DePIn resources like data availability; Validators validate using data sampling.

  2. Miners submit a predictive price of the S&P 500 for the next day; Validators grade it retroactively. If this ever gets competitive it will distort global markets as large players buy and sell to make their predictions come true.

If you’re willing to have the validators create synthetic work to fill in any gaps as well:

  1. Break web2 Sybil resistance. Full multi-model media. Solve Captchas for bots so they can break into accounts easier. Create fake videos and images for KYC for identity thieves. Create explicit photos of Taylor Swift and distribute them on a data availability layer. Create Fake news for Russia to destroy democracies. Entirely peer to peer and anonymously. Destroy society as we know it.

“But Logris, who would create such an evil thing?” Glad you asked! Before you say this is far-fetched and sounds terrible, this is in principle the concept of BitTensor. So, uh, this is happening today and the payouts right now are about $25M a day. Just your heads up that we’re heading into hell!

I know you like the darker stuff /u/nixorokish so here you go!

u/OkDragonfruit1929 introduces one of the up and coming execution clients, Silkworm

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Because of the recent push for client diversity, I’ve been researching a few of the alpha and pre-alpha EL clients in the works, and the Silkworm Ethereum client has me really excited. I’m always looking out for new and innovative projects that can push the technology forward.

Silkworm aims to be the fastest Ethereum client while still maintaining high code quality and readability. That combination really appeals to me - performance without sacrificing robustness or security. The fact that it builds on top of the well-regarded geth/Erigon codebase, but uses a completely different programming language gives me confidence that the developers know what they’re doing.

I also like Silkworm’s use of more modern C++ standards and the libmdbx database engine. Adopting C++20 features and leveraging a high-performance embedded database seems like a recipe for speed.

I’m eager to try it out once testnet builds are available. The documentation around building and testing Silkworm locally is already pretty good.

Overall, I think the team has laid out a compelling technical vision with Silkworm. If they can deliver on faster sync and execution times without reducing decentralization or security, it could be a big win for Ethereum. I’ll be following the project closely as it develops.

u/cheeky-gorilla shares Tim Beiko’s recent proposal

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Tim Beiko published the “Protocol Guild Pledge” yesterday, his quantitative framing for why projects built on Ethereum should donate 1% of their tokens to help onboard and retain Ethereum’s unbelievably talented core protocol contributors:

https://tim.mirror.xyz/srVdVopOFhD_ZoRDR50x8n5wmW3aRJIrNEAkpyQ4_ng

For those who prefer to watch/listen, a great summary by Anthony Sassano: https://www.youtube.com/watch?v=PlSaGTDtDXA&t=715s

Tim’s announcement was front-run by Ether.fi, announcing they’d allocate 1% of their upcoming token to the Guild, and there are a few other (major) projects who are waiting in the wings to make the same announcement! 👀

If you know of any projects that would like to host Protocol Guild for a community call or Spaces, please feel free to DM me here or Twitter or Farcaster!

u/proof-of-lake shares some thoughts on points

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IMO, points have been developing a bad rep mostly for nothing.

(Though I will say, there are two fairly different approaches, and one is worse than the other).

What’s good about points:

-they let teams be explicit about the sorts of user behaviour they want (to drive adoption or growth)

-they allow teams to evolve and develop those goals in a way that supports real-time testing and feedback (so for example, “how will user behaviour change if we tweak these variables and incentives?”)

-they give teams a chance to “claw back” or change these metrics quite rapidly if needed (something that is harder to do if a token incentive program is already live and running)

-they reduce Sybil airdrop farming because they generally relate to actual capital (x time) being put in, or at least, to behaviours that are deemed desirable and useful by the protocol team

-they give users who are keen to pursue a token allocation some transparency, prior to token generation (meaning you can see where you sit overall relative to other users, and you know what behaviours will be “rewarded” and whether your time and effort is being well directed).

For all these reasons, points seem to me to be (on balance) a logical development that has mostly been positive.

However - what I will say is that it begins to cross the line once too much gamification is brought in. By this I mean instances in which teams make their points program too complex, too casino-like, and too demanding: countless fancy ranks and tiers, NFTs and badges, quests, pointless or tangential tasks (daily check-ins??) super aggressive referral programs, etc.

These are the ones that (to me) feel exploitative and annoying. I’d sadly put EtherFi in this category, even though I think the team is legit and the core product makes sense. Orbiter has trended this way too.

Eigenlayer’s points, on the other hand, look simple, justifiable and useful.

So next time you’re thinking about points, start by asking - what’s the point? Sometimes there is one! …but to any devs out there - don’t make it a carnival game, please.

A Huge shoutout to u/Twelvemeatballs for preparing our substidoots 🍎 and maintaining the impeccable use of emoji shorthand ✏️ while Tricky_Troll was on the frontlines ⛺️

Credit to u/usesbinkvideo for the gem of a suggestion “Put that name on a McDonald’s nametag for him”🍟

Week #53: January 26, 2024

Livestream Recording | POAP

Special guest Kevin Owocki joins us from Gitcoin and Green Pill, a network-society that exports regenerative digital infrastructure to the world.

Announcements

Upcoming Guests

The morning trinity

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u/djlywtf

Ethereum

u/jaskidd05

$2225

u/UgotTrisomy21

0.055

u/usesbinkvideo

89,046 hodlers subscribed (+12)

u/bagogel12

497d since The Merge

Weekly Haiku: u/Jey_s_TeArS

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Seek consistency,

More client diversity,

Bring persistency.

Shitpost of the week: u/Ethsomesense

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When you were partying, I studied the blade. When you were having premarital sex, I mastered the blockchain. While you wasted your days on crypto twitter in pursuit of vanity, I farmed eigenlayer points. And now that the world is on fire and the soylana manlets are at the gate you have the audacity to come to me for airdrops.

u/breeezyyyy is really grateful for this community

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Good Morning. I just wanted to say how truly grateful I am for this group from the bottom of my heart.

The folks in here are caring, sincere, curious, and hungry for the truth. In this world we live in, it’s really a rarity to have this quality of human concentrated in one place.

Yesterday I got hacked through my own fault and signed off-chain approval for 2 assets that were drained from my wallet. This was my first time being scammed/hacked.

Somehow, they also managed to pay down a significant portion of my USDC debt [huzzah!] from my AAVE position by withdrawing/paying out to get my ETH- so it did not end up being completely catastrophic. I still don’t fully understand what happened with this piece of the puzzle.

No less than 8-10 people reached out, offered help, pointed me in the right direction, and that means the world to me. I know I’m not getting the tokens back.

Last night I wrapped my head around what happened and tossed back a bunch of beers with friends in real life–nothing like joking about it to get over it mentally.

Just wanted to say thanks again to everyone in here that makes this such an amazing community.

u/waqwaqattack shares a RocketPool update

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I’m here with a new Rocket Pool update!

A few weeks ago, I mentioned the process for new tokenomics had started. We were looking for (and still are, I guess) submissions, and we got over 20! These range from changing collateral systems, new RPL rewards dynamics, MEV theft protections, and much more.

A new committee to analyze the submissions has been created with 5 members. You’re welcome to follow along (and provide feedback on the submissions if you are interested). There are three community members and two team members. They will inspect every submission, rank them, and make suggestions. This process is expected to take place over the next few weeks.

Next, it is likely the new tokenomics will be a blend of the outstanding submissions. We already have one community member share ideas on what they think the new tokenomics for Rocket Pool might look like. This is all still very early, though, and there are going to be many changes and suggestions in the coming weeks.

This whole process has been hugely exciting (for tokenomics nerds like me haha). I’ll let you all know what the outstanding submissions were once we get some clarity on that and what direction the next steps will take.

u/Tricky_Troll discusses the ethics of airdrop farming, u/superphiz and many other provide great responses

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u/Tricky_Troll:

I’m curious as to people’s thoughts on the ethics of airdrop farming after a discussion I had deep in replies yesterday.

Firstly, I have two airdrop farming wallets. I try to stick to projects I like and not get too degenerate. This helps it feel legitimate to me as the original airdrop idea was to give shares and a stake in the platform out to the community. But two wallets? A true sybil resistant system would call me out for that and either penalise me or only reward me once. Is having two wallets being greedy? Maybe. Personally it feels like a rational balance between the following:

On the other hand, to me, the idea of having a dozen wallets or more to farm an airdrop feels wrong. The developers will set a certain amount tokens to the community and if you game their mechanisms and qualify on 10 wallets, then you get 10 slices of the pie instead of 1. This adds 9 more slices to the pie than an anti-sybil minded developer would have ideally intended. Since this has no effect on the total number of tokens in the airdrop, your sybil wallets have eaten into the size of the slices of everyone else. In short, airdrop distributions are a zero sum game and more tokens for you means less for someone else.

Now I’m not trying to virtue signal or shame anyone for having 10 wallets. There’s no ethical code about how much free money someone is entitled to. Furthermore, there is a justifiable and rational argument that since others are sybil attacking, you need to too. After all, you’re not eating into the average Joe’s piece of the pie, you’re eating into the faceless big airdrop farm in China with 1,000 wallets run by a computer program. At the end of the day, it is the developer’s job to ensure that the distribution is sybil resistant and makes it to the community and not the spammers.

This is in the same vein of human coordination problems we face with MEV — an arms race appears to capture economic value as no amount of virtue signalling and solo stalkers opting to build their own blocks will be enough coordination to stop rational actors from doing what makes the most economic sense. In fact, being virtuous just leaves more profit for the “bad” and less values driven actors. So with that said, does that make being virtuous and leaving more value on the table actively counter productive for our values? In the bigger picture, this is why we need things like proposer-builder separation. To remove as many of these mechanisms of value capture which involve some kind of arms race. This is because in these areas of competitive value capture, there is almost always a centralising force over time towards those who are the most successful and in some cases, the most brutal with their tactics (see block proposal timing games for the latest development here).

To get back on the original topic, why two wallets? I guess it’s just the way I was raised to not be too greedy or selfish in a zero sum game. As I said above, I’d be taking more from someone else’s slice. But on the other hand, I’m not lost in an idealistic world. The rational side of my brain sees how the game theory plays out and says farm that airdrop and take a slice out of the big boys’ pie as they’d only spend the money on stupid things anyway. So here I am, somewhere in the middle. I’m definitely putting effort into farming airdrops and with 2 wallets, maybe taking a larger slice than I’m fairly entitled to. However, it is still less than I could get if I really wanted more.

All this is probably a similar reason to why I just want a house in the countryside somewhere and not a gazillion rental properties, a ferrari and a yacht. I would get very marginal enjoyment out of such fancy things and that marginal enjoyment nowhere near equates to the amount of good for others which those millions of dollars could do if they were put to more productive work. After all, spending money tells society where to put its effort. Collectively we get much more from feeding and housing people than we do from vroom vroom shiny car go fast. But still, even 90% of the world aren’t lucky enough to own their own home and live in a safe, stable, country. So at this rate I’ll likely be getting a bigger slice than I’d be fairly entitled to if the world’s resources were split evenly. But in the situation I have been fortunate enough to find myself in, I don’t feel overly greedy and I hope that’s good enough.

Anyway, thanks for reading me share my thought process. I learned a bit just trying to articulate this. So let me know, where do you lie on the scale of u/Superphiz to hyper-capitalist rational actor? Or what are your thoughts on any of the above. In the end this discussion covered way more than I thought it would.


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u/superphiz:

No flowery preamble because my wife is demanding that I get in the shower for a day trip. I do adore you in so many ways tricky, and I’m honored that you consider my positions and our alignment. Here are too many bullet points that will definitely make me late for the shower.

  1. I don’t want anyone to exaggerate my wholesomeness and assume that I am too “good” to airdrop farm or use multiple accounts. I definitely have and will continue to use multiple accounts if it appears that those mundane actions will increase my qualifications for an airdrop.

  2. In general, I see airdrops differently than other people. I don’t typically view airdrops as a benefit to the end recipient, but as a combination of a VC liquidity tool, or an engagement farming technique that allows startups to more easily create a case to VC for additional funding or valuation. I guess what I’m trying to say is that you’re probably not abusing the airdrop, but in most cases I think the airdrop is taking advantage of you by farming you. They’re trying to pump key metrics through farming user activities, this lets them prove to VC that their platform really is worth funding.

  3. My recent pushback against points is along this vein - if you’re farming away for imaginary points but startups are using your metrics as proof of success to VC, then there’s a good chance you’re just straight up being abused. Do you know what VC likes even MORE than users who exert little outflow on a startup? FREE users. If a startup can generate a ton of activity for ZERO cost AND have a rabid user base, they’re going to win big. I really adore big winners, but I want those winners to be good products, not just good incentive farmers.

  4. I’m really just encouraging people to take their own farming to the next level by engaging intelligently with projects that they like rather than being mindless zombies jumping through hoops. I don’t know why, or if it even makes sense, it’s just where I’m at right now.

  5. I feel like EVERYONE thinks I’m targeting eigenlayer, and I’m not. I have hesitancy about Eigenlayer because of its impact on the security layer, and I accept it as a natural evolution of our space. I have no intention or desire to target them for their airdrop mechanism, other than to say, farming for points can be risky and create a house of cards in certain cases.

  6. Regarding the greed issue (ferraris and yachts), I definitely align with you - I want to carve out a fair share and leave enough pie for others, but that doesn’t mean I’m some kind of altruistic monk. I DO enjoy the benefits of wealth and I do hope to continue building wealth, but it’s true that I take a more socialistic approach than many others. I feel like if we build Ethereum to be super powerful and valuable, then we will also benefit from that value; but if all of us focus on greed and extraction now, everyone will suffer in the long run. I prefer to think of cryptocurrency as a nascent project that has 1000x growth potential (platform, not price) if we foster healthy growth, or it can have a quick death if everyone extracts without regenerating.

  7. Finally, I want to remind everyone that value and wealth are represented by more than money. Money is fun, but money is only useful when it’s used in an environment where it can bring you benefit. As a worst case scenario, money was useless in the stone age because it couldn’t bring benefit. I have a real belief that if we bring blockchain developments to fruition, then the entire world will have access to more benefit. NFTs are a horrible (but useful) example of this. Prior to blockchains, you could have billions of dollars, but still no access to NFTs. Money could not provide that benefit because blockchains hadn’t been developed to the extent that they were possible. There are MANY other developments that will be possible in the future if we continue developing this technology, and when we do, our money will be even more useful than it is today because we’ll have access to more value from it through blockchain developments.

u/cryptOwOcurrency explains what would happen if the Nethermind bug happened to Geth

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Assumptions:

If a Nethermind fork happens (this is what actually happened today):

If a Geth fork happens (exactly like what happened today, but just swap geth and nethermind):

TL;DR: Stake with nethermind, a nethermind bug causes you to lose 0.0005 ETH. Stake with geth, a geth bug causes you to lose 28 ETH.

Disclaimer, this is all to the best of my knowledge and I don’t consider myself to be an expert in this.

u/interweaver reminds us how important it is that Ethereum succeeds and how we can protect it as best as possible

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Perfection is an illusion.

No software is perfect.

When a system is built on a software monoculture, it will inevitably fail when that critical software inevitably fails.

When a system is built on a diverse polyculture of software, it becomes resilient enough to not fail overall when any particular piece of supporting software fails.

Ethereum is too important to fail. It’s too important to the future of money and the internet, too important in the fight against Moloch, and too important to the inhabitants of a world that is becoming more and more centralized as time goes on.

If I were on the side of Moloch, if I were going to attack Ethereum, I would do exactly what a sophisticated attacker might indeed be doing: releasing blocks designed to give minority clients issues, in the hope that people would be scared back onto Geth, in hopes of shutting down the nascent polyculture that its proponents have been desperately trying to cultivate before it’s too late.

I would tell people that it’s much more important to avoid the possibility of a few hours of downtime once or twice a year than it is to avoid the permanent destruction of the chain’s Lindy and legitimacy.

You all know Ethereum is too important to fail. Of those of you running nodes or especially staking, most have done the responsible thing and run minority clients.

Don’t let anyone scare you into switching back into the supermajority. Don’t let the occasional minor hiccups distract you from the looming impact of the supermajority bug asteroid that we’re desperately trying to divert from its path towards planet Ethereum before it’s too late.

Embrace the fact that no software is perfect, and that helping run Ethereum will always mean the possibility of unexpected adventures, no matter what software you run. But it’s your choice whether those adventures will be a fun afternoon resyncing your execution client in the good company of your fellow client users, or a less fun loss of every single Ether you staked, while the community fractures around you and all of our dreams for a better, more decentralized future lie in tatters around us.

Choose wisely.

u/pa7x1 shares a list of the largest entities staking with Geth and u/interweaver shares a timeline of Coinbase’s comments on client diversity

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u/pa7x1:

Here is a list of some node operators with a lot of ETH staked using Geth. The easiest way to fix the EL client diversity issue is to knock on their doors and let them know why it matters. If you are staking with them, be aware that your stake is at risk if a bug in Geth would cause a mass slashing. You should unstake with them and let them know why you are doing so.

I have added client teams staking with Lido in there because I find it particularly problematic that they do not lead the charge of client diversity with their example. Them more than anyone should be aware of the risks.

Operator Total ETH Staked Estimated Geth usage
Coinbase 4400000 100%
Kraken 860000 100%
Binance 1000000 100%
Nethermind 10000 68%
Prysmatic Labs 10000 100%
Consensys 10000 100%
Sigma Prime 10000 70%
Kiln (Lido) 10000 100%
Kiln (non-Lido) 790000 100%?
Allnodes 700000 100%
Bitcoin Suisse 550000 100%
Stakefish 370000 100%

These guys together represent 1/3 of all ETH staked. If the do something about it the problem is gone.

Sources:

https://app.hex.tech/8dedcd99-17f4-49d8-944e-4857a355b90a/app/3f7d6967-3ef6-4e69-8f7b-d02d903f045b/latest

https://dune.com/hildobby/eth2-staking

https://execution-diversity.info/

https://www.stakingrewards.com/provider/allnodes


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u/interweaver:

Just to recap Coinbase’s public statements about execution client diversity (to my knowledge):

Viktor Bunin, head of the Protocol Operations team at Coinbase Cloud (Coinbase’s staking infrastructure provider), May 31st, 2022:

Thank you and yes, we’re looking at supporting other execution clients :)

Will Robinson, VP of Engineering, December 9th, 2023:

We do care.

Thank you for the push. Ethereum’s client diversity is one of the most striking manifestations of its commitment to decentralization.

I don’t have a firm commitment to share today, but please know that we hear you, and we’re working on it.

Jesse Pollak, creator of Base and Head of Protocols, December 12th, 2023:

i hear you - lots of internal conversations ongoing. appreciate your patience as we work through it!

Viktor Bunin again, December 12th, 2023:

Thanks! We’re looking into it, but nothing to share at this time.

Will Robinson again, January 2nd, 2024:

We’re going to do it. Timeline is still TBD. I want to under-promise and over-deliver. :-)

Ben Rodriguez, Senior Protocol Specialist, today:

Hi! I’m a Protocol Specialist here. I have been pushing for this and we are actively pursuing it.

And that we’re actively pursuing another execution client

And now Brian Armstrong, CEO, today:

Taking a look

u/hanniabu outlines the aftermath of a hypothetical critical supermajority Geth bug

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Catostrphic.

u/Ber10 shares the Tornado Cash developer legal fundraiser

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2 tornado cash devs that got in legal trouble are looking for donations

https://twitter.com/rstormsf/status/1749490246000238942

links to:

https://wewantjusticedao.org/

and then to:

You can donate Eth and get an NFT.

[https://juicebox.money/@free-pertsev-and-storm](https://juicebox.money/@free-pertsev-and-storm)

Alternatively Go fund me or directly through justicedao.

The precedent set in that legal case might have a significant impact on the future of ethereum.

I dont see any Monero/Zcash donations so far. But maybe that wouldnt be in their best interest anyway.

u/Ender985 writes a post mortem on the recent nethermind incident

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I wanted to write a small post-mortem on the Nethermind incident, as a small solo staker.

Nethermind started having problems around block 19056922. Block sync became more infrequent than usual, there were some missed attestations, but the node somehow kept up. Finally, 1h and 50 minutes later, Nethermind started reporting “No incoming messages from the consensus client that is required for sync” and Prysm “Execution client is not syncinc”, effectively putting the node offline (let’s call this T+0).

I became aware of the issue at about T+45min. Tried restarting the services at T+50min, but quickly found out that this did not resolve the issue. After that, I checked if Eth prices had crashed to see if the whole blockchain had been attacked and brought down, but saw no price action. Then I went on discord, and found out that this was a Nethermind-specific issue.

After reading that a full resync might solve the issue, I rebooted Nethermind into a fresh data dir at T+1h20min, to begin the process. I was shocked to find that at T+2h23min the node was already submitting attestations, only 1h and 3 minutes after starting the sync from scratch. The first time I did this a number of months ago, it took more than 10 hours to get to this point. The node was not fully operational yet (I think block proposals would still have failed), but at least I was back attesting the network.

At around this time the Nethermind team announced that a fix was released (at T+1h40min apparently), but it took a while for the ubuntu repo to propagate the last version. My node was already attesting, so I was in no rush to update. About 1h later, I applied the fix, reverted back to the old database, and the node was fully online again.

In total, the attestation downtime made each validator earn 0.0007 eth less that it would have in normal operating conditions. This comes up to $1.57 per validator at today’s prices, quite literally pocket change. Of course a missed block would have meant a much larger missed cost, but the chances of getting a block within the downtime window were quite low.

All in all, the issue was identified and fixed by the Nethermind devs incredibly quickly for a Sunday evening, and only caused a few hours of downtime. If anything, the speed of the fix only gave me more confidence on the Nethermind team, now that I’ve seen them working under fire. True, if I had been running geth I would have avoided this incident, but if I’d been running geth and there was a similar incident with that client I’d probably have lost most of my eth.

u/haurog shares a blog post about their experience with all of the different staking clients

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A few weeks ago a wrote a blog post about my experience with the various execution and consensus clients as a solo staker and the small differences they have. I never shared it here. It grew out of a longer message I wrote on the gnosis chain discord and it was well received there. It is a personal view so I am definitely missing a few angles, but hopefully there is no wrong information in there. If you think something could/should be improved, please let me know. I wrote it shortly before the Besu bug, so nothing about the recent bugs is discussed. I am still debating if I should add a short section about the bugs, but at the moment I leave it like that.

https://hackmd.io/@haurog/HkS3VqhVa

u/accidental_green releases an automated tool that makes switching clients a breeze

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In pursuit of client diversity, I simplified the open source client-switcher and removed any code that wasn’t absolutely necessary.

It’s now a basic Python script of 439 lines that does the following:

1) Prompt user for inputs and validate inputs:

2) Remove old client and install new client
3) Create new service files, reload daemon, print final results

That’s it! Same process as Somer’s guides just simplified and automated. The switch takes 5 minutes with validators attesting again in ~2 hours (nethermind).

There’s a CLI (terminal) and GUI version to fit various setups and preferences.

It’s all open source, so you can check github or ethstaker to view detailed images and review the code.

I’m working to get it audited asap, but any help in the meantime is appreciated.

Week #52: January 19, 2024

Livestream Recording | POAP

Special guest Mike Silagadze joins us from Ether.Fi, a native liquid restaking protocol.

Announcements

Upcoming Guests

The morning trinity

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u/Fiberpunk2077

Ethereum

u/UgotTrisomy21

$2461

u/PooeyGusset/

0.059

u/usesbinkvideo/

89,027 hodlers subscribed

u/5quat/

490d SM

u/5quat/

799d since ATH (ratiogang)

Weekly Haiku: u/Jey_s_TeArS

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Ether beats the odds,

Upscaling the rollup squads,

Welcome to the blobs.

Shitpost of the week: u/Sourdoughpretzel4444

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Today is a banking holiday in the states and because of that I cannot:

  1. Deposit/withdraw my monies

  2. Receive direct deposits of monies

  3. Have any monies cleared/settled in my accounts

  4. Buy the stonk :(

THE FUTURE OF FRANCIS

u/accidental_green developed an awesome tool to encourage client diversity. With more indepth Here!

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In the spirit of client diversity, I created an open source tool that allows anyone to instantly swap to a minority client with 0 configuration or effort. Just 1 click, new client.

I added a simple GUI, so switching clients can now be done with 0 programming experience in under 30 seconds.

Installation is based on Somer Esat’s guides and works with Geth, Besu, and Nethermind on both mainnet and testnets.

Feel free to check out the ethstaker post or see the details on Github:

These are personal projects that have not been audited, but the code is open source and fairly easy to understand. Any testing or feedback is always appreciated!


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I created an open source validator updater that allows home stakers to update their entire setup in a single click with almost no downtime!

Github repo: https://github.com/accidental-green/validator-updater

Validator Updater Summary:

  1. Select Execution Client to update: (Besu, Geth, Nethermind)
  2. Select Consensus Client to update: (Lighthouse, Nimbus, Prysm, Teku)
  3. Select Update MEV-boost: (Yes or No)
  4. Click “Update” to close the window and return to the terminal

Once complete, restart the services and ensure the validator is still attesting.

The updated binaries are installed at /usr/local/bin to be compatible with Somer Esat’s guides, but can be adapted to work with non-standard installations.

Feel free to review my other validator related repos below:

Validator Install: Fresh Ubuntu to syncing validator in 1 minute
Validator Controller: Validator GUI for easy operation (start, stop, journals, etc)
Client Switcher: Instantly switch between Execution Clients

The code has not been audited, so use with caution. These are all open source community resources, so testing and suggestions are greatly appreciated.

Cheers and Happy Staking!

u/Syentist makes a case for raising the gas limit while u/thewalkinglive and u/16withScars share developer sentiment that we should be more cautious

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u/Syentist:

Going to bring this up again: I strongly think we need to increase the gas limit, and Dencun is probably the best time to co-ordinate around this (although a HF is not needed for validators to increase the gas limit).

A few things to point out again:

  1. The last gas limit increase was early 2021, almost 3 years ago. Cost of SSDs have substantially reduced since then
  2. Most L1 native apps (Maker vaults, ENS, LSTs) have not completed migration to L2s. Partly because we still don’t have a Stage 2 L2 anyways. Which means users are still forced to use the L1, and pay high fees for basic and essential functions like taking a DAI loan or staking ETH for stETH.
  3. We are clearly on the cusp of mainstream attention, especially as an ETH ETFapproval nears in May. Which means we are going to run into exceptionally high gas fees under current settings, and a constant narrative that the “Ethereum chain is unusable”. An entire cohort of new users (probably the largest wave of new on-boarded users to date) will see the ridiculous fees on L1 (and by extension, L2s), see the sub-cent fees on Solana, and simply gravitate to the cheaper narrative. We will unnecessarily lose out on the narrative war, and the Nov-Dec period of scorn to the ethereum community is, I fear, just a prelude.
  4. Most importantly: Vitalik has soft-signalled this twice in the past week. First, in the tweet thread on the roadmap update (when he pointed out gas limit increase doesn’t need a HF and can be done anytime), and secondly and more explicitly, in yesterday’s EF AMA. Now, the problems with increasing the gas limit: State growth, client stability, cost of minimal equipment - *of-fucking-course these variables are playing out in Vitalik’s head*, he has written more on this than pretty much anyone alive. Of course he is aware of it, no? But pragmatic choices need to be made, and that is what I see here in his comments.
  5. Finally, I think it is time the ethereum community and core protocol development process “formalised” a framework for minimum validator specs per fixed cost of fiat. It can’t be based on just vibes. It can’t be that we want to - eventually - run a full validator on the computing power of a microwave (running lightclients is a differnet story). We need a reasonable threshold - something like a full validator should not cos more than $800 to assemble. And every 12 months or so, we review the hardware prices, and if it costs cheaper than $800 (or X threshold) to run a validator, we raise the gas limit (or number of blobs or whatever else).

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u/thewalkinglive:

What problem does increasing the gas limit solve?

Increasing it definitely has a downside. State will grow faster, sync time will get slower quicker, DoS potential will grow. Would be nice to have a number on those.

That said, what does increasing the gas limit net us?

I feel we’re kind of yoloing this. Do we have the monitoring and metrics in place to see how things evolve? If not, IMO we should fist have tooling that can point to the effect of a change before making that change. Otherwise it’s gonna get summed to “look, not dead yet”.

If we had a solid monitoring, we could just bump by 1M, see what happens. Nothing gets wonky, ok, bump by another 1M.

Going 10M in one go hoping nothing will get borked in the next 5 years is a bit too optimistic to my taste. Even though it might as well be the case

- Geth Team Lead - Péter Szilágyi

https://twitter.com/peter_szilagyi/status/1745374731824439531

What are your thoughts on this? It does make sense and I understand why he is annoyed. He is the one who has to deal with the impact of the increase in state size.


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u/16withScars:

On increasing the gas limit, I agree with Francesco and Dankrad (researchers at EF).

My take is similar:

Bumping the gas limit just as EIP-4844 is about to be shipped which already increases storage and network bandwidth costs is a bad idea

this isn’t the right time at all

given the better hardware argument, we should definitely be increasing the size of blobspace (not blockspace). But only after the Deneb HF.

u/benido2030 thinks we should organize around a community $STRK delegate. And then updates the search for an EthFinance/EVMavericks $STRK delegate

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The result from the OP RPGF round 3 is a big motivation for me because it shows me that if we coordinate as a community, we can really get things done and improve the ecosystem.

I believe $STRK is around the corner. The snapshot for the airdrop is in according to an official tweet beginning of December 2023. The last upgrade allows tx to be paid in $STRK (but you obviously still use ETH as well). And afaik $STRK that lived on L1 for a long time now also is briged/ deployed on starknet.

I am also rather sure that $STRK will be a governance token because it is a governance token now and there are delegates participating in governance already, see this vote/ example.

So here are some questions:

  1. Who has used Starknet a lot and knows the ecosystem? (whatever that means, hard to answer tbh)

  2. Who has the time, energy and willingness to act as a delegate for starknet?

I think it would be great if we could informally agree on 1, 2, 3, x delegates that could represent this community in the starknet ecosystem and governance. That obviously doesn’t mean that you can’t delegate your $STRK to someone else outside of this community! But if we agree on candidates beforehand, those potential delegates can setup everything when the token drops.


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So a quick update on the $STRK delegate search I started on Friday:

We have a first candidate: u/Tricky_Troll is interested and I would probably borrow $STRK to delegate even more to him! (I won’t, but I think Tricky is a great first candidate!)

But let’s not stop here, I think we should have 2 or maybe even 3 candidates. First of all it would be great if we as a community had a choice from ETH Finance (and let me get that straight: not because I think Tricky is not a great candidate, as I said I would delegate to Tricky without thinking twice!). More importantly though, I think we will likely - as a community - have a lot of $STRK power that we probably should spread across at least 2 delegates. So I would be really happy to see more people coming forward!

Also u/bob-rossi said that he would be happy to share his experience with people thinking about being a delegate. So if you wanna understand what it is like before you make a decision, feel free to contact him. Maybe a channel in the EVM discord like he suggested also makes sense and maybe other delegates would have a look as well, to share their thoughts. In a best case scenario “our” delegates not only receive voting power from Eth Finance, but maybe the more experienced delegates can tell us how they convinced people to delegate to them!

So: I would be very excited if some people thought about being a delegate and of course best case share their interest here so we can coordinate.

Let’s go!

u/Bob-Rossi will be running for an Arbitrum Grants council spot

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Discussions on the next version of the Arbitrum grants program have been underway and I wanted to share this for two reasons.

  1. It is currently in the Snapshot voting stage. So, if anyone here is involved with projects that are interested in that type of thing it might be a good idea to start coordinating what an application would look like. I don’t believe they have any official application template just yet, but I’d imagine it will be pretty similar to the STIP rounds. This new round already has some changes that should hopefully make it less chaotic then the first STIP grants.

  2. One of the changes is creating a 5-member council that gives a first pass at all applicants. The goal here is to cut down on some of applicant volume so when delegates vote they can be less overwhelmed and have the ability to review the proposals a little more thoroughly. And then they are adding 3 “Applicant Advisor” roles as well. That group can help assist projects with polishing their application for a best chance of success. I wanted to mention that specifically for any projects that may apply, that the assistance is there. Both are an elected and paid position.

Relating to point two… part of my post is to let everyone here know I will be running for one of the council spots. I’m not sure how successful I will be honestly, but I wanted to at least make people here aware since I’m sure many of my delegates come from here. I actually applied a week+ ago, but wanted to wait until voting was closer to ‘announce’.

I’m trying really hard to toe the line between being the overbearing “hey vote for me” guy while still being effective at least getting the word out. So I’ll leave it simply at this - if there are any questions you have for me relating to my application, or even just any thoughts on what a successful council would look like if I got elected, please let me know. And of course, if you do decide to support me always know I will be grateful!

I really, really wish I could link the post… but probably easiest to find more info about the grant program would be going to the Snapshot Vote and clicking the corresponding link to the main Arbitrum governance forum. Then if you are interested in who is running for council, the 17th post in that thread will have a link directly to the “LTI Pilot Program Position Application Thread". Which alternatively can be found by going to the main forum page, clicking under the blue”Dao Grants Program" subsection, and finding that thread near the top. Sorry for the runaround, but Reddit does really make it this much of a pain…

u/Ethical-trade discusses the future of France Finance

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By now I’m sure we’ve all seen Larry Fink, CEO of the world’s largest asset manager Blackrock (with $9 trillion in assets, 3 times France’s entire GDP), saying that the future of france is tokenization of assets “on one single ledger” (source). More specifically, he talked about bonds and stocks.

But what could this “one single ledger” be?

In this other interview, Fink again mentions stepping stones towards tokenization right after speaking about an ether ETF.

Since that I’ve read a few Ethereum detractors saying that there’s no way tokenization of stocks and bonds will happen on mainnet Ethereum, because issuers will need an environment they can control. And this is probably sort of right.

But what they’ll also need is an environment that fully communicates with the leading tokenization platform.

Ethereum currently holds 55% of all of defi’s TVL, here’s your leading platform. That’s the “one single ledger” Fink talks about. And that’s without counting rollups and sidechains. And before a 10x scaling of rollups in a couple of months.

But interoperability and control, how to you reconciliate these two?

In the past banks have created their own permissioned Ethereum clones (Hyperledger, Quorum, … more about these here). They looked like intranet, closed and safe versions of the internet. But have you heard of projects that crossed the chasm and made it to mainnet? I haven’t. Just like intranet, these projects were fun playground but didn’t take advantage of the full potential of Ethereum. What good is a website others can’t reach?

Today, the scaling solution(s) chosen by the Ethereum community happen to be absolutely perfect for reconciliating interoperability with control. A rollup, a volition, a validium or any other hybrid solution is just what’s needed to solve this problem.

You can be part of the ecosystem, but still retain some degree of control.

Not only that but the cost will soon basically be net zero: we can safely expect that launching your own L2 on Ethereum will be as trivial as launching a smart contract: copy some open source code and let stakers manage security for you through Eigenlayer. How much did Hyperledger and Quorum cost to create and operate? I couldn’t find figures but a shitload I’m sure. How much will launching a rollup cost in 2 years? 1,000 or 10,000 less?

I don’t like Fink and probably never will. But it truly amazes me how far we’ve come.

Today, the CEO of the world’s largest asset managers sees the future we’ve seen for years, a future of finance with Ethereum at its core.

u/Defacticool thinks that many are missing the looming product market fit for Ethereum and u/JebediahKholin expands on that

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u/Defacticool:

I wanted to repost the article u/vvpan provided the other day about the progress and interest in tokenising securities by institutional firms.

In this case Brewan Howard.

I wanted to repost it because I really dont think it got the recognition it deserved. You know those “steps” Larry Fink talked about which eventually culminate in full tokenisation of everything. This is the next big step

And as I said I believe this usecase alone, if eventually succesful at scale (such that it picks up a network effect) could swell Ethereum to unfathomable degrees. I truly think this is being slept on by us crypto natives.

This is the “crypto taking over tradfi” moment. This is the “Ethereum is the new internet” moment. If it succeeds.

“Product market fit”? This is it.

I’ve provded an archive link to bypass the paywall and I’ll paste the artivle text too.

https://archive.ph/v4BVk#selection-4891.0-4891.13

https://news.bloomberglaw.com/crypto/brevan-howard-joins-in-on-institutional-push-to-tokenize-funds

Brevan Howard plans to tokenize at least one of its funds through a partnership with a startup backed by Nomura’s Laser Digital, making it the latest financial heavyweight to experiment with putting money on blockchains.

Libre Capital, the startup which includes Laser Digital and the Alan Howard-backed incubator WebN Group as investors, said it will offer zero fees to asset managers who tokenize funds on its namesake platform. Brevan Howard, along with Hamilton Lane, said they’ll be the first asset managers to do so. Libre’s public blockchain technology is supported by Ethereum scaling firm Polygon.

“The tokenisation of funds allows us to offer investors a new way to access our strategies, providing them with optionality, and further develops our platform to serve client needs,” said Natalie Smith, head of strategy and client partnerships group at Brevan Howard, in a release.

Brevan Howard is one of the earliest Wall Street participants in the digital-asset sector. Its digital-currency fund rose 44% last year. Even so, this will still be the Jersey, Channel Islands-based investment firm’s first tokenized fund. The process has been promoted heavily recently as one of the few viable use cases for blockchains. Citigroup estimated the tokenization market could swell to $5 trillion by 2030.

“Ultimately, our goal isn’t to make money on the distribution side,” said Avtar Sehra, CEO and founder of Libre, in an interview. “For us, we want to take the money and the operational costs as close to zero as possible.”

Libre also plans to launch collateralized lending and automated rebalancing of separately managed accounts later in 2024, according to Sehra.

With Libre taking zero fees from fund distributors for tokenization, Sehra anticipated that the company will profit mostly from the lending and SMAs businesses.


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u/JebediahKholin:

I often find myself thinking that eth is a natural solution to a lot of global financial problems. The latest is the fink tokenized asset commentary.

Another was the issue of central banks not having a fast trustless way to trade currencies. To an eth enthusiast, this is an obvious fit - issue currencies as erc20s, and let the trading simply occur in a trustless format.

The imf didn’t even consider this, but instead addressed all kinds of cbdc variants. The obvious problem is that they’re all trusted, and countries simply don’t trust each other enough to use one another’s private chains. The imf briefly addressed bitcoin as a possibility before dismissing it.

I wonder if a lot of this reflexive hostility to eth and permissionless programmable chains is a response to bitcoin and its dominant narrative. Bitcoiners talk about fiat being worthless and central banks as enemies - of course central banks are going to view this with hostility. They view an attack on their fiat as an attack on their sovereignty. The digital gold/SoV approach makes much more sense for how bitcoin is set up, but also is less of a direct challenge.

Anyway, all this to say that closed eth clones are always going to have the problem of being trusted, and if you’re not part of the consortium running the chain, you’re ultimately at their mercy. Now matter how big that consortium is, there will always be some outside it, thereby limiting its network effects.

u/bagogel12 shares the latest exploit and in light of this, u/PhiMarHal shares some pointers on best practice security

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u/bagogel12:

Security alert!

Bungee / socket being exploited.

Revoke contract 0x3a23f943181408eac424116af7b7790c94cb97a5

source Spreek

https://twitter.com/spreekaway/status/1747337879771033632

Edit: Only mainnet exploited, other chains could be exploitable. Same contract on other chains, 0xaDdE7028e7ec226777e5dea5D53F6457C21ec7D6 on zksync era.

Edit2: Afaik if you used bungee you should be fine, as their webapp does only approve the amount you like to send.

Edit3: https://twitter.com/SocketDotTech/status/1747349422730813525 Socket confirmed and paused the contract.

Edit4: Hopefully last edit. Revoke cash has created a tool to easily check. Although contracts are paused, it’s recommended to revoke if your address is affected. It could also happen that you bridged with services like zerion or rainbow. [https://revoke.cash/exploits/socket?chainId=1


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u/PhiMarHal:

Fast reaction from Bungee.

This sent me on a revoke binge regardless. It’s easy to get sloppy for the sake of convenience. The other day I mentioned using Odos rather than other aggregators so I limit my approvals. Of course, this requires actually revoking previous approvals!

I like the idea of a 2 addresses setup, to limit risk. Address A holds all funds. Only ever sends and receives tokens to address B. Address B is the trader. Approves everything, does the swaps, gets into the tokenized positions, transfers everything back to A once each series of operations is done. This protects against many hacks since A holds everything and approves nothing.

However… It’s hard to have the discipline to stick to this. It would be fantastic if there was wallet software to automate this behavior. You “start a session” and this triggers A sending whatever to B, then you operate B as a normal wallet, then as you “close your session” this triggers a transaction of B sending whatever newly acquired funds back to A. Even restricting any action from A that’s not send to B (unless you enter a password to override, or whatever).

Probably hard to build but man I would love this.

u/interweaver discovered and reported a bug in their execution client!

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Guess what, I had a u/seamonkey82 moment today, and helped find a client bug! Story time :D

Some of you may be aware that there’s an ongoing debate about whether Ethereum can handle a slight increase in its block gas limit. This would make L1 gas slightly cheaper by creating more blockspace, at the expense of being harder to keep in sync with the chain for the weakest machines on the network.

The gas limit is currently at 30M units of gas per block (which means 15M units is equilibrium). Some folks are proposing raising it 33%-50%, to e.g. 40M-45M, while others oppose any raises, especially in light of the upcoming EIP-4844, which will raise requirements a bit too.

The fun thing is, individual stakers actually are able to change this number themselves whenever they propose blocks. Unlike many other changes, you don’t need a hardfork to accomplish it. Rather, individual stakers can pick their own “target gas limit”, which their client will attempt to move the gas limit towards. The protocol allows the block gas limit to change by 1/1024th of the previous block’s value, per block. In this way, if the majority of the stake decides on a new number, the value will start random walking its way to that new value, and stick there more firmly the greater the consensus. This mechanism is a holdover from the days of mining, but it’s pretty neat.

Anyway, as a solo staker, I decided to YOLO raise my own limit last month, and set it up to 40M. This involves setting some flags in your execution and consensus clients. I run Besu/Lodestar, and set their flags appropriately.

Since then, I proposed (at least) one MEV-boost block. As expected, that block’s gas limit was 30M + 30M / 1024, i.e. 30029295 units. A slightly less than 0.1% increase over the standard amount. It isn’t much, but it helped make Ethereum L1 slightly cheaper for that block and (indirectly) the next few! Cool, everything’s working!

Since then, I proposed (at least) one locally-built block (I have a min-bid set, like most responsible solo stakers who care about avoiding too much censorship, and it triggered.) As a reminder, locally built blocks are constructed by your execution client, in my case Besu, from the contents of their public mempools.

My locally built block(s), upon examination, looked great, except for one thing! Rather than 30029295 units of gas as expected, and rather than the 30M units of gas I would expect to see if I had misconfigured something, my locally built block(s) had a gas limit of 30001024. WTF? It’s supposed to change by 1/1024 of the parent block, not by 1024!

Some in-depth adventures into the Besu Github later, I confirmed that indeed, there was a bug that was causing all Besu locally built blocks to only be able to shift up or downwards by a maximum of 1024 units of gas, rather than the (at present) 29295 units of gas expected. Put another way, Besu stakers with locally built blocks would only be able to move the gas limit about 3% as fast as locally-building stakers running other execution clients.

Jumping into the Besu Discord, I reported this situation, and worked through it with Matt Nelson, one of the excellent Besu team members who can be found there. He confirmed the bug and figured out the needed fix, and that should be making it into a future Besu version.

So anyway, moral of the story is, just YOLO changing numbers is apparently a great way to find client bugs, with your face :P Hopefully as the gas limit discussion continues, this means Besu stakers will be fully equipped if there is more of a mass movement in the direction of increasing that limit!

u/LogrisTheBard, u/pr0nh0li0, and u/Set1Less comment on the SEC vs Coinbase lawsuit

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u/LogrisTheBard:

I am glued to this Coinbase case today. You couldn’t have asked for a friendlier judge. The judge was practically feeding arguments to Coinbase. Gensler should be screaming at the screen if he’s watching this.

The only argument Coinbase made that bounced seemed to be the major questions doctrine where the judge is hesitant to remove the authority of anyone but Congress to regulate anything about this space.

However, the SEC has completely failed to define why a baseball card or fantasy football team wouldn’t be a security but tokens would. The SEC wants any anon trade on Coinbase to be a security contract if someone promoted it on Twitter. Coinbase wants a security contract to include at minimum some type of contract or legal right. Unless the token includes inherent rights like on-chain governance and a claim to dividends it’s hard to argue you are entering a contract when purchasing a token.


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u/pr0nh0li0:

Promising start to the SEC/Coinbase Trial:

Judge Failla is on fire right out of the gate.

She says to the @SECGov lead lawyer, and I paraphrase: The “DeFi people” gave a “really fine” amicus brief explaining what staking is and what the wallet is used for, “arguably better” than how the Commission explained it in its briefing.”

She also says the @SECGov hasn’t presented an opposing narrative for the legal foundations of Howey in its briefing.

<3 all you “defi people”


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u/Set1Less:

Looks like the SEC is not done losing, they are looking to take another big L in the Coinbase / Staking case

https://x.com/eleanorterrett/status/1747641703626924431

Bruh….

Failla then addresses the Howey Test: “We’ve had a god run. We’ve had 90 years where these securities laws have been able to apply to these markets. But now we have something new.”

Holy smokes, hope the judge rules this way. This is the equivalent of complaining about someone encroaching on your parking spot only to end up losing your home in court

https://x.com/RSSH273/status/1747647514302689553

Favorite moment of argument so far:

SEC — “the tokens themselves are not a security”

Failla — “that’s what the folks in the back table think (Coinbase). And they are wondering why we are here”

Week #51: January 12, 2024

Livestream Recording | POAP

Announcements

Upcoming Guests

The morning trinity

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u/Fiberpunk2077

Ethereum

u/usesbinkvideo

88,973 hodlers subscribed (+17)

u/FrenktheTank

$2620.17

u/alexiskef

0.0567

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Suspens removal,

A court ordered approval,

Not fiducial.

Shitpost of the week: u/Itur_ad_Astra

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OMG! 😭Cant believe ETF is approved ! Thank you SEC team ! ❤️ keep doing the great work. 💪🏻💪🏻💪🏻🚀🚀🚀


Context

u/pr0nh0li0 warns of the scammy state of crypto twitter right now

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Current Twitter experience as a long time crypto user. Seeing this same scam ad for a fake ZKsync airdrop every ~5 tweets, and some other scam ad every other 10 tweets.

Just got this now, my heart’s full of joy, what an amazing day 🌟

lol; At least a/b test the copy scammer guy I really can’t imagine this headline works that well

(I still love crypto Twitter despite how god awful the spam has gotten on the platform)

u/LogrisTheBard covers how Eigen layer is affecting the peg of LSTs 🧠

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So many people hyped into the swETH EigenLayer contract that it has seriously affected the swETH peg. Prior to the EigenLayer deposit opening people were chain minting swETH for Pearls then selling it to ETH at almost a 3% loss. That is to say the market was speculating that the pearl to ETH ratio would be about .0015. As recently as Dec 10th swETH was at about 1.01 swETH/ETH. Right now it’s sitting at almost 1.05 (the native rate is 1.0471). So just holding swETH in the past 4 weeks has made you 4% almost on your ETH (more than an entire year of solo staking). It has also largely drained the swETH liquidity as apparently LPs exited their position to pure swETH and deposited the whole stack into EigenLayer. You can see volume hugely spiked, right around the time TVL halved.

Larger LSTs are less dramatically affected but there’s the same phenomenon are still visible in them. In many cases the lower liquidity has significantly improved the liquidity farming rates. Some of these new combination pools like cbETH/wstETH/rETH are yielding over 12% APR (like 5x solo staking). Even most of the older pools are still at or above 7.5% after accounting for the native appreciation of the LST in their yield.

u/hanniabu explains the risks of EigenLayer

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Note: While Eigen Layer was specifically mentioned, I believe these are inherent risks to all restaking

u/stablecoin updates us on privacy tools

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https://medium.com/@Railgun_Project/the-new-architecture-for-ethereum-privacy-introducing-railgun-v3-21e111fa297e

suggest everyone interested in privacy preserving technology read this update (from early December) around Railgun V3. Railgun is a privacy layer you can deposit to and withdrawal to any address, and now they are going to help incorporate defi onto the privacy layer so all your swaps and farming can be shielded.

Also Nocturne just launched a working product last month (which is I think maybe what spurned this update article, friendly competition), and it’s nice to see privacy projects still building even if the USG is trying to chill everyone away from the space. Vitalik is a known backer of Nocturne as well.

https://app.nocturne.xyz/

[EDIT Nocturne Announcement Article]

https://dailyhodl.com/2023/11/15/nocturne-launches-on-mainnet-to-bring-private-accounts-to-ethereum/

lastly don’t forget that Aztec network is supposed to launch sometime this year. we may have lost Tornado access in the US temporarily, but it didn’t shut it down (not even close) and more and more of these privacy solutions will emerge making it even more and more difficult to deter. at the end of the day blockchain doesn’t work without proper privacy being an option. I urge everyone to learn about and explore these tools.

u/sm3gh34d covers the Besu block bug

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This wasn’t how I intended to spend my Saturday, but it looks like the sub already is aware of the mainnet block that halted besu this morning: https://etherscan.io/txsInternal?block=18947893

What you might not know yet is there is a hotfix release out that prevents this from occurring in the future for similarly crafted blocks. If you are running besu on mainnet, even if you have already addressed the problem and are caught back up to head, you should upgrade to this hotfix release:

https://github.com/hyperledger/besu/releases/tag/23.10.3-hotfix


Besu post-mortem

u/masterRoshi9 discusses one of the original reasons we’re drawn to crypto

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Please excuse this minor pause in bullishness and meme sentiment while I vent a bit and reflect on larger problems.

I often think about how inefficient, backwards, corrupt, and self serving politicians of the world governments are; particularly my own. Without getting specific and political, there are so many obvious problems that politicians refuse to address, or can’t, due to clearly perverse incentives that drive them and make them worse over time. It’s one of the things that’s drawn me most to crypto. The guys at Bankless and others in crypto have stated many times that crypto is speed running the lessons learned from traditional finance. More importantly I think it’s speed running lessons around incentive alignment. When everything is financial, the incentive problems and consequences of system design become much more explicit and quantifiable than they are implied like many of the problems in meat space. Governance issues have been rampant in crypto, don’t get me wrong, but experimentation on a smaller scale creates lessons learned and informative feedback that could ideally be applied to broader government systems.

Unfortunately I often times think that we’re too far gone, or late in this game of informed discovery to be able to actionable apply these learnings to larger legacy systems. I’m not even sure we’ve discovered ways to solve a lot of the problems in crypto let alone the broader physical world. Internally crypto can feel fast moving and iterative at a blazing pace, but it also feels slow to me in aspects like these. I feel that if crypto came about 50 years earlier, we might have had a better shot at rethinking the way we govern as a society; that we’d have been able to take more preventative measures or seen problems coming much earlier as a result.

If there is a hope here, I’m confident it will come from younger generations and the lessons they learn from this industry. Everything is driven by incentives, and game theory should be considered everywhere when governing. Here’s hoping the US and other governments nurture innovation in this space going forward. Despite the scams and problems we have here, it is still the breeding ground for the ideas and minds that have the chance to turn things around. It is for this reason, among many others, that choosing pro-crypto candidates is a much higher stakes battle than I think many people realize, even in our industry. It is one of the most important aspects of candidates I will consider voting for moving forward. Long live crypto. Long live Ethereum. Long live innovation. Long live experimentation.

u/timmerwb shares some thoughts on staking after the Besu incident

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A few further thoughts and opinions on the Besu failure yesterday. I think there is nuance in this situation that got overlooked. But before I begin, let’s get some facts straight - and these are well known and not up for debate:

1) No client should have a super majority.

2) The current, and wholly inappropriate situation with Geth is based on i) it’s code maturity and empirical reliability; ii) a completely unacceptable level of laziness, wrecklessness and short-term greed by large staking entities. (Which is sadly ironic because at least one of those is tied very closely to the overarching security mechanism of PoS - another example of how we cannot simply “code in” all required incentives.)

However, for some stakers, namely solo-stakers (and possibly other smaller, more responsible staking entites), the situation is much less clear. I think it’s fair to say that Geth is indeed a much(?) supererior client to the competition. Should, therefore, a solo-staker take on a more philanthropic role by worrying more about network health by say, running Besu - a less mature client - than their own immediate needs? In terms of measurable risk for them (as far as we can calculate) running Besu would seem to be a disadvantage. E.g. the probability of an event like yesterday for Besu (or NM?) is clearly higher, and their ability to recover from it expediently compared to a larger provider, probably much lower (hence larger losses in time, stress and income). Moreover, as stated at the outset, the systemic risk from the Geth super majority is not driven by solo stakers, and so solo stakers are not meaningfully mitigating that risk by avoiding Geth. (This is like the problem with global warming - we should all try our best, but in reality at this stage, due to the tragedy of the commons, the biggest, and possibly only meaingful improvements can be made by societal policy shift in law).

So, solo-stakers in particular have a question to answer. Should they willingly chose a client that is measureably poorer and riskier for them, basically in support of the “greater good”? Or do they stick with Geth, which is likely to be more reliable for them, and basically push the job of reducing the Geth majority onto the larger stakers (who are clearly much more culpable)? Ultimately, this is something of a subjective choice that boils down to estimates of risk, reliability and person attitude. Yes, Geth could fail in a catastrophic way, but Besu did fail in a catastrophic way. The (empirical) probabilities speak for themselves. Sadly, there is even a worse outcome here, in that (the short sighted) large stakers will now be extremely glad they were running Geth, and not Besu, because imagine having thouands of validators going down on a weekend, with no clear fix for ~24 hours. That would have been extremely costly. Bullet dodged.

In summary, if all clients were demonstrably equally reliabile, the choice of client and question of majority would be more straightforward. But they are not equal at the present time and pragmatism will prevail.


Besu post-mortem

In light of the Besu bug, u/Spacesider found a bug in Lighthouse too!

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Due to the recent Besu issue, I found a bug in the Lighthouse VC.

If you are interested, the full details can be found here > https://github.com/sigp/lighthouse/issues/5044

u/cryptOwOcurrency share some wallet security tips

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As we enter the early stages of the next bull market, please remember to keep your crypto wallet secure. While I can’t get into the specific schemes I use to keep mine secure, here are some general guidelines I follow that have worked for me since I created my first crypto wallet in the early 2010s.

My general paranoia has saved me several times since I started investing in crypto in the early 2010s. Remember, they ARE trying to get your keys. Always. You need to be perfect every time to win, they only need you to fuck up a single time to win, so the game is tilted in their favor. They will never stop, so you have to never stop defending.

u/skythe4 breaks the biggest news of the year only to moments later, bring the news which makes real life seem like a parody of itself

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Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.

The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.

https://twitter.com/SECGov/status/1744829327294837236


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The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.

https://twitter.com/GaryGensler/status/1744833049064288387

You can’t make this stuff up.

In a short and sweet doot, u/coxenbawls explains both the big news and what the market seemed to make of it

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Spot BTC ETF approved. This is good for ETH.

u/KuDeTa expresses his gratitude for the Optimism rPGF Grant and support Aestus received

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As you may/not know, [u/austonst](https://reddit.com/u/austonst] and I run the Aestus relay. To be frank, it’s been a hard hard slog in terms of funding and we’ve paid for the whole thing ourselves out of pocket this last year +. Well. A few months ago u/benido2030 raised this in here and practically pushed me into working through the OP rPGF round 3 process. I had assumed it wasn’t worth it. Today we found out that we’ve just been granted ~100k OP tokens (🤯). That is an ungodly amount of money for our little project. I don’t even know how to begin to say thank you, but none the less thank you, thank you and thank you to him, u/superphiz and everyone else that voted and pushed this through. 🤝

Week #50: January 5, 2024

Livestream Recording | POAP

The morning trinity

View on Reddit →

u/Shitshotdead

ethereum

u/UgotTrisomy21

$2250

u/alexiskef

0.0512

u/usesbinkvideo

88,900 hodlers subscribed (-37)

u/bagogel12

477d since the Merge

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

ETF approved,

Uncertainty quite improved,

Market barely moved.

Shitpost of the week: u/NeedlerOP

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2013 : “Wall street bonuses/chinese new year red envelope money”

2017 : “Institutional Money”

2021 : “ETF inflows right around the corner”

2025 : " 5% pension allocation across the board"

2029 : " Gov. crypto funds for all nations "

2033 : " Vitalik crowned god-emperor of mankind"

2037 : " Fully automated luxury abundant gay space communism crypto utopia as humanity spreads across the stars"

2100 : “ETH/BTC ratio surpasses 0.10 this cycle”

u/consideritwon starts a discussion about Vitalik’s latest ethresearch post

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Saw it mentioned yesterday, but I think Vitalik’s latest thinking on Ethereum’s positioning within the blockchain trilemma design space deserves further discussion. For me this feels like it has the potential to be a large pivot in core Ethereum philosophy and my initial gut feeling is one of discomfort.

Ethereum has up until now allowed anyone with 32 ETH and moderate technical ability to run a validator. At least two of the options discussed by Vitalik in his post would reduce the decentralisation of Ethereum.

The Ethereum community are a pragmatic bunch who don’t see things in black and white. Technical solutions require compromise and decentralisation is a spectrum. Even so abandoning the principle of a relatively small fish being able to validate within the network without having to trust 3rd parties feels like a real departure from a long held value.

u/CaptainOfTheGate covers the best Staking as a Service/SaaS providers

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The Best Staking-as-a-Service (SAAS) Providers

In approximate order, based mostly on their reputation among Redditors (I read more than I post). For each of these, the user controls their withdrawal keys.

Allnodes

It’s $10/month for their Advanced plan, which is the cheapest one that includes MEV (it’s worth the extra $5/month). That’s equivalent to a fee of only 0.16%, close to zero! They’re a top-15% performer on Rated Network over the last 30 days, and mostly use the Teku (a minority client) consensus client; they’re also large, if that gives you comfort: 2.6% of all staked ether.

Ethpool

They charge 15% of MEV (10% for 3 nodes, 8% for 30 nodes). That comes out to about 2.9% of all rewards (so yes, about 18x Allnodes). I can’t find them on Rated Network. They use minority clients: Lighthouse and Nethermind.

Blox Staking

They have a 0% fee forever (not a typo). Their effectiveness rating on Rated Network is below the 50th percentile as I write this. The company behind them is probably more focused on their new SSV Network now. I noticed that their website gets barely any traffic anymore (it ranks in the millions), but Rated Network says they still stake about 0.53% of staked ether, and they have an active Discord. They use mostly Prysm (the most popular consensus client).

Best solution for leftover amounts when you’ve staked all your 32-ETH blocks:

Competition in staking is heating up daily (e.g. with DVT solutions coming online), but I’ll nominate StakeWise v3. You can stake any amount and don’t need to get an LST. You get to choose an operator. Perhaps 4% fees is typical, but I see one offering 1%. Some reputable operators to consider are x (please reply with your opinions).

Some reasons you might want to use SAAS:

You don’t want LSTs because you’d have to generate a capital gain when selling ETH for them; and they have high fees, typically 10% for Lido’s stETH.

You don’t want to solo stake because you may not feel technically competent enough; you may have unreliable internet (or limited capacity) or electricity; or you may not have a stable place for your node (e.g. you’re a digital nomad).

u/superphiz has a smart contract shower thought

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I had a shower thought that I wanted to crank out before I forget it. I probably won’t format it well, just trying to dump the idea.

Smart contracts are the basic building blocks, not the infrastructure of web3.

Smart contracts are more like transistors.. or more realistically simple circuits. They can do very small tasks, but having a box of simple circuits doesn’t really give you extraordinary power. Imagine having a bunch of 555 timer chips - it’s a simple but powerful tool, but by itself it’s not revolutionary.

The power of simple circuits comes when you string a bunch of them together to do something even more powerful.

We’re at the beginning of smart circuit development - when several contracts can work together to complete more powerful functions. From where we’re standing this seems difficult and complex. The Intel 8080 processor had 6000 transistors, but the i9-13xxx series have 25 BILLION. We haven’t even reached the capacity of building a smart circuit that includes 10-20 smart transistors/smart contracts yet.

Another way to imagine this is from an evolutionary perspective. We think about this stuff called Primodial Soup, the idea that a bunch of the right building blocks (amino acids) in the same place at the right time can give rise to more complex biological compounds. Our current primordial soup is the library of smart contracts we’re building now, and in time these basic building blocks will evolve into highly complex organisms.

All of this to say.. we’re at the beginning of all of this. We have the foundational building blocks to build complex contraptions that we can’t even imagine yet, but given the historical context of building blocks that get organized, it’s exceedingly likely that we’re on the cusp of rapid evolution in smart contracts.

u/Revanchist1 discusses Vitaliks post on why our industry sticking to crypto values is so important

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https://vitalik.eth.limo/general/2023/12/28/cypherpunk.html

This is why it’s valuable for Ethereum to have a strong social layer, which vigorously enforces its values in those places where pure incentives can’t - but without creating a notion of “Ethereum alignment” that turns into a new form of political correctness.

I already felt some influencers were wielding “Ethereum alignment” as a weapon to criticize projects and L2s. Sometimes it’s warranted and sometimes you could feel that they were just posturing for their brand. You can feel the “sliminess”…it’s just off putting. Like seeing the the lazer eyes profile pics.

My favorite section is What are some of these values?

Vitalik prefectly describes what brought so many of us into crypto when it was solely BTC and dreams of what crypto could eventually do.

A few years later and the space has evolved so much - taking steps towards achieving some of those grand visions. But in taking those steps, we sacrificed the values that gave crypto any real meaningful value. Why remake the the same thing but worse? The values he outlines in the section are core to crypto and give the space value. Devs need to embrace it and figure a way to make it appealing to consumers. The easy path is centralization. The rewarding path is decentralization.

It is very possible to build things within the crypto ecosystem that do not follow these values. One can build a system that one calls a “layer 2”, but which is actually a highly centralized system secured by a multisig, with no plans to ever switch to something more secure.

One can build an account abstraction system that tries to be “simpler” than ERC-4337, but at the cost of introducing trust assumptions that end up removing the possibility of a public mempool and make it much harder for new builders to join.

One could build an NFT ecosystem where the contents of the NFT are needlessly stored on centralized websites, making it needlessly more fragile than if those compoents are stored on IPFS.

One could build a staking interface that needlessly funnels users toward the already-largest staking pool.

Resisting these pressures is hard, but if we do not do so, then we risk losing the unique value of the crypto ecosystem, and recreating a clone of the existing web2 ecosystem with extra inefficiencies and extra steps.

Beautiful. You could tell it was something that was bothering him for a while now. So much passion and humility in his writing.

u/domingo_mon reflects on why we hold ETH and u/EnvironmentDry1343 shares their thoughts too

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u/domingo_mon:

2023 is coming to a close and I want to reflect on what Ethereum means to this community. I have two questions.

Why do you hold Ether?

What is something that Ethereum could accomplish that you can look back in 50 years and say “I held through the bear because I believed in Ethereum’s …” Or “Ethereum is a success to me because it …”?

For me, I got into crypto in general because I believe that the global financial system is rigged. Anything worth owning became more and more expensive every year, and the dream of owning a home or land became further and further out of reach. It felt like I was on one side of a ballon and my dreams were on the other side. The balloon was being inflated, and it felt like my dreams were literally being inflated away.

Bitcoin struck a chord in me because it espouses transparency, fiscal responsibility, and financial freedom. Here was a money that couldn’t be printed into oblivion. Here was a money that wasn’t first distributed to the mega-banks and the mega-rich where they buy up assets, creating inflation before finally filtering down to us little people. Here was a money that couldn’t be confiscated because the owners embrace ideas that weren’t popular. Here was a money that could be sent across the world at the speed of light, 24/7. Here was a money that was controlled by everyday people and not some nameless, unelected, unaccountable, government bureaucrat.

I believe that Bitcoin ossified too soon, and r/Bitcoin started banning anyone who suggested that the code should be upgraded.

That’s when I found Ethereum. It was a project that had similar characteristics and desires of Bitcoin but, unlike bitcoin, it was going to continue developing. I hope for Ethereum to become a neutral, global settlement layer. I hold Ether because I want to be a part of the money revolution. I want my children to inherit a world with a fair financial system where the average person can get ahead by saving their ether because the value of their ether isn’t being inflated away.


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u/EnvironmentDry1343:

Alright I’ll bite, with the preface that a bunch of this is at least inspired by if not outright copied from posts from other people writing about Ethereum.

For me it is about increased coordination/cooperation. I’d been reading about bitcoin for years and didn’t really care about it because discussion was often centered around antagonism: a big bad ‘They’ that controlled this rigged system versus the persecuted victims seeking a new beginning. To me, btc has always seemed more like religion than anything else.

It wasn’t until I starting reading about Ethereum that I saw the value in the underpinnings of this new religion. Blockchains, when well designed and implemented, allow people to interact/transact without centralized actors.

People get more done when they work together and the history of human progress is in my opinion the history of humans learning how to cooperate more and kill each other less. Unfortunately, working together usually means giving power to a small group of people that oversee things and are given a mandate to make choices on behalf of others. These centralized actors all too often become corrupted, and the biggest man-made disasters would never be possible without a bunch of centralized actors abusing or misusing their power (“lol lets go kill all the sparrows”).

Ethereum obviously is not going to solve the problem of centralized power on its own, but it is one of the few developments that I have seen during my life that allow for improved cooperation without increased centralization. To me, that’s big and that’s worth sticking around for.

It is unfortunately also why I haven’t been as bearish about Ethereum in the past as I am now. A few years ago the question was “How do we implement this new tool in a credibly neutral way?”, a technical question with a relatively easily definable answer. Now the question seems to be “Do we really care about decentralization/credible neutrality or do we just want memecoins?”. To me (and I suspect most others here) the answer is clear but we have some convincing to do in the broader community.

So I believe in Ethereum’s credible neutrality. If we somehow manage to maintain that for the next 50 years, we’re golden in my opinion.

TLDR: Ethereum is potentially one of the all too few positive recent developments that might bring humanity forward (even if only by a little bit).

u/Pkickel92 asks about how L2s work and u/hanniabu delivers a comprehensive answer

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u/Pkickel92:

I may have a massive misunderstanding on how the L2 to eth chain relationship works/will work, so I was hoping for some clarification.

Currently, I need to bridge my eth over the the L2 chain which costs a relatively high fee. I can then interact with the L2 and eventually bridge back if I choose to. My understanding is that this is the currently the only way L2 talks with L1. Is this correct? If this is the case, I do not see how Ethereum fees will ever get down to the prices of other L1 solutions which I believe is needed for mass/mainstream adoption since we are currently performing about 15 tps.

Is there someway Ethereum (L1) is getting this data in real time that I am missing? If not and you are forced to stay on L2s (more centralized) to have reasonable transaction what is the benefit of this setup over other L1s like Solona, Polkadot, etc.

Any explanation would be greatly appreciated.


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u/hanniabu:

I think your understanding of how the rollups operate. When you bridge the only communication happening is the rollup’s balance sheet is updated to reflect the addition/withdrawal of this transaction.

In terms of consensus, for optimistic rollups (e.g. optimism, arbitrum) all the transactions happening on the rollup are compressed (like a zip file) and verified by L1. For zkrollups (e.g. zksync, scroll) a mathematical proof is created for all the transactions and all L1 has to do is verify the proof.

As L2 blocks get more transactions, the cost per transaction goes down as the shared costs are spread out across more transactions (economies of scale).

(Tangent: The compression of optimistic rollups requires less of the L2 and more of the L1 (and hence more cost). For zkrollups generating the proof requires a lot of effort from the L2, but is very cheap for the L1 to verify.)

L2 blocks don’t happen at the same time as L1. They vary depending on the rollup, but I think most have a target of 2 seconds per block. Ethereum blocks are 12 seconds, so there’s 6 L2 blocks in each L1 block.

So L2s benefit from math and compression for more efficient settlement as well as economies of scale to provide cheaper transactions. This will get even cheaper after the update in the next few months (~april 2024) by creating a separate fee market for L1 blockspace specifically dedicated for L2s. So they no longer need to be competing with L1 transactions for blockspace. This change also makes transactions costs more predictable for rollups, rather than needing to slightly overcharge to account for any potential unexpected gas spikes.

After this update L2 transactions will get cheaper (estimated at up to 1/100th depending on rollup design), falling in the range of a few cents to maybe even less than a penny in some cases.

u/interweaver is still fighting the good fight to diversify the stake. He later shares some results from such good work in action!

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Hey EthFinance, happy 2024! I have some good news to start off the year :D

Something like 15% of all staked Ether is staked through Coinbase, and only a little over a month ago, they posted in a blog post that they’re using 100% Geth to operate that stake.

We’re still in the grips of a Geth client supermajority, with an estimated 75% to 85% of staked Ether using Geth under the hood, so Coinbase’s 15% stake using 100% Geth is a big impediment to bringing that number down below 66%, where we’ll be safe from an instant catastrophic fork if Geth has a forking bug.

Over the last month, some of you who are on Twitter/X may have been following my campaign to tweet every day at Coinbase to try to get them to diversify their Ethereum execution clients. This was partly an informational campaign to make more people aware of the issues supermajority clients like Geth present, and partly a gentle pressure campaign to get Coinbase to consider switching.

Today this campaign led to a clarifying tweet from Will Robinson, VP of Engineering at Coinbase, that Coinbase is definitely planning to diversify their staking execution clients!

There’s no timeline associated with this, so I expect it might still take a few months, but it’s very exciting that they’ve finally publicly confirmed that they are aligned on client diversity, and are working towards that goal internally.

I don’t think my daily tweets changed any internal Coinbase policy; they’ve likely been working on this for a while already. But it did enable us to get a public statement from them on their client diversity plans!

If you’re interested in my (now concluded) tweet campaign, you can see my most recent one here, with links to the previous tweets.

Thanks everyone who supported that campaign, and also for every one of you who’s running a node with minority execution clients! I’m super hopeful that we can finally get Ethereum to a place of full client diversity in 2024, with resilience against any single client’s forking bug.


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Happy 2024, EthFinance!

I made a longer post on this below but it looks like it might be hidden, so I’ll just share the punchline -

Coinbase (or a high-up employee, rather) committed today to diversifying their staked Ether away from supermajority client Geth!

This is amazing news given they’re currently running 100% Geth with 15% of all staked Ether.

I’m considerably more optimistic now that this year will be the year Ethereum achieves full client diversity!

u/MrVodnik shares some key pointers on keeping your funds secure when signing on new websitesd

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Oh, it’s a complex one.

tl;dr; There are two types of approvals. Don’t sign what you don’t understand. Otherwise, you’ll be fine.

Signing is all that your wallet do. If you prepare a signature of a tx, someone else can send this out. So the rule of thumb is - don’t sign anything you don’t understand. I.e., avoid signing “hex” data that is not translatable to human-readable text (e.g. don’t sign “0x2b3cf00321a…” but sign “I agree to terms and services of xyz”).

When it comes to approvals, these are NOT part of the Ethereum protocol! What we come to understand as approvals, is an ERC20 method to allow other parties (mainly contracts) to move your funds. In most (if not all) of legit ERC20 contracts/tokens, it works as expected, and in scamy ones - you don’t care about them anyway. It is good to understand what and how a malicious signature/transaction can do to your funds. Considering above - it can only drain ERC20 that you’ve approved. If you hold more exotic items in your wallet, then its up to you to verify how they act.

When it comes to approvals, there are two main types out there. The first one is the standard “approve” function of the ERC20 spec, which sets on-chain record of whom and for how much, can move the token in question. The second one is “permit2” introduced by Uniswap and slowly adopted by other dApps. It extends standard approval systems and allows off-chain approvals, which I guess is what you’re asking about.

u/benido2030 has the monthly staking update

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Here’s the ninth edition of the monthly staking update
First monthly staking update for 2024. Obviously the state of staking will be something to watch this year. A lot of people expect way more ETH staked, especially if there is an ETH ETF and it is allowed to stake the underlying ETH. Lido dominance will be something to have an eye on. Then there is eigenlayer of course… And maybe if there are some solo staker airdrops, we will also see new inflows from “small guys”. So let’s dive in!

Validator overview - total: 1051685 validators*

The validator set keeps on growing. The growth isn’t crazy and there are also continuous exits every month, but generally speaking number go up. Right now we are at 24,2% of all ETH staked. In my opinion, there’s nothing really “fancy” to see here.

Client diversity numbers**
Consensus

Execution

Client diversity is more or less the same it was at the end of last year. Nimbus slightly gaining share, which is good, but not really important, since Consensus clients are looking okay.
Execution keeps on being an issue. Geth’s share with a constant 84% is still way too high. How can we change that?

  1. Switch from Geth to a minority client. It really isn’t that hard and might have other benefits like a better feature set (e.g. auto pruning), which might help to make a decision.
  2. There is e.g. Arbora.eth on Twitter asking Coinbase to stop using Geth as their sole execution client. Join them, retweet, post, pressure bigger entities to change their setup. I think retweeting is rather low effort, but might help to spread the word.

Pool distribution***

With the launch of Blast Lido was gaining market share last month. This has stopped and interestingly Lido is basically back to 31,x% like before the launch. Now obviously we can’t really tell where it would be without Blast, but my guess is lower and in a best case the launch only pushed it up temporarily and market share will continue to fall.

Obviously we should not rely on the market handling it! If you have (w)stETH please think about withdrawing from Lido and/ or depositing into Diva. If you participate in the “Diva vampire attack” you will not only receive a new LST but also Diva tokens. Interestingly Diva already has 0.4% market share and hasn’t even launched yet. Let’s make that number go up!
All percentages are rounded, so this is not 100% accurate, but should be good enough to show changes in the coming months.
* https://beaconcha.in/validators#all
** https://clientdiversity.org/#distribution
*** https://dune.com/hildobby/eth2-staking

P.S. Completely unrelated, but Murs 3:16 (The 9th Edition) produced by 9th Wonder is imo still one of the best LPs ever. 9th is an incredible producer and I really like Murs flow. He’s probably not the best lyricist, but innovative and even had a track about Bitcoin in like 2016 or 2017.

u/ElectricMutiny shares their story of loss as a warning for each of us to look after our own ETH carefully

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Two days ago I wrote in the daily about how I lost all of my holdings. The next two days were the worst in my grown up life, just hours of hours of despair and sleepless anxiety. The worst part was seeing all of my ETH in that foreign wallet address, so close, yet so far away.

Today is better. The sun is shining. I have my little apartment and my family and friends. I did realise some gains during the last bull run which i reinvested in something safer. And my sister still have her holdings, and I will enjoy seeing her get rich during the upcoming bull. She deserves it.

So take my carelessness, my stupidity, as a warning. If you are not careful, you will get recked.

Week #49: December 29, 2023

Livestream Recording | POAP

Upcoming Guests

The morning trinity

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u/Defacticool

Ethereum

u/FrenktheTank

$2355

u/alexiskef

0.055

Weekly Haiku: u/Jey_s_TeArS

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Turning up the crowd,

Blackrock goes blockchain aloud,

Excitement allowed.

Shitpost of the week: u/superphiz

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Grifting 101

  1. Find the grift. Contrary to popular belief, you never need to start your own grift, just find one that’s in progress and join in.
  2. Fill your bags. It’s EXTREMELY important that you fill BEFORE you shill. If you’re joining the grift too late, you’re only going to be exit liquidity, so it’s important that you join a grift as early as possible. Bonus points here if you’re an accredited investor and you can buy into the grift early before the retail investors (you’re going to need them later!).
  3. Buy the narrative. It doesn’t really matter what the narrative is: “faster than bitcoin”, “cheaper smart contracts”, “tons of partnerships”, “a new banking system”, “Visa-level capacity”. Whatever. It doesn’t matter what the grift is as long as you know it. The BEST grifts include promises of future activity and “unlocks”.
  4. Shill like your life depends on it. This is where you REALLY earn your money. Just like any ponzi, you’ll need to convince EVERYONE to buy into the grift because you need the price to go up and you need tons of exit liquidity so you don’t get dumped on. You’ll need to tap into all the socials you can, and even better if you can get podcast/youtube hits. Use whatever tactics work for you: education, insight, sarcasm, humor.. it doesn’t matter. The goal is just to saturate the ecosystem with discussion about the grift. It doesn’t matter whether the traffic is flattering or not, you’re just looking for saturation. If you do a good job, you’ll get free rent in everyone’s mind AND you’ll amplify the power of the shill.
  5. Wait for the flywheel to kick in. With enough social activity, the flywheel will eventually kick in. This means that the price will go parabolic because the social work has made everyone aware of the grift, and when they see price movement they’ll have fomo and buy in. The MOMENT the flywheel effect kicks in you’ve GOT to be on your toes to prepare your exit. THIS is where retail investors are critical. You’re looking for dudes who want to make a quick buck and put all of their faith in charts. These are the guys who will put their “fun money” into the grift in hopes of maybe buying a car or something with the money they make.
  6. The parabolic spike/game of chicken. Timing here is critical. Venture Capitalists and Angel Investors are primed to dump hard, so since you’re lower on the food chain you’ll need to dump first. This is the game of chicken: you need to dump BEFORE everyone else does. This is pretty easy, take 10x and get the hell out of there - no one wants to be left holding this worthless shit. (If you’re a dumbass, you’ll hold too long and be the exit liquidity. If this happens once, you’ll survive, but if this happens more than once you need to quit grifting - you’re not a grifter, you’re just dumb exit liquidity. )
  7. The crash will come, but you’ll have made a fuckton of money and you’re sitting pretty, but you CAN’T stop now! if you only survive one grift you’ll die poor. The crash requires a lot of continued social activity to SIMULTANEOUSLY convince all of your followers that you were duped just like them, but ALSO that you made a ton of money. You’ve GOT to maintain your credibility if you’re going to grift again. Don’t blow this step! Your followers need to build faith in your ability during this stage.
  8. Okay, so you completed a successful grift! Congratulations!! You might get 5-6 grift cycles out of the same coin if the climate is right. This is harder if the grift had promises of future activity, but those are really sweet because you’ll make a LOT more money on it. Most grifters will take a month off before spending another six month cycle pumping the next grift. In that month off, they’ll re-establish their credibility by promoting solid assets like Ether. So, I mean, grifters really are good folks after all, right?
u/LogrisTheBard explains Gearbox V3

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As ever, I wish we had more discussion around here about app developments on Ethereum rather than… whatever the depressive topics have been the past few days.

In the spirit of being the change I want to see in the world let me plug Gearbox V3. Basically Gearbox is a leverage application that removes the leverage component from the underlying application and allows you to apply leverage using Defi legos on their own. Think of it like ‘modular Defi’. The key insight that enabled leverage is that when you borrow funds, the funds aren’t given to you, they are held in escrow by the protocol so you can’t just run off with them. Now, there’s no sense having the protocol just hold onto borrowed funds. The reason you’re borrowing is to do something. So, since you aren’t being given the funds the protocol has to do that something on your behalf.

For older leverage applications, the something they would do on your behalf was the application. You could use dydx and get leveraged price exposure to an asset but the leverage was tightly coupled to a dex. This leads to liquidity fragmentation. While the nature of the price exposure mechanism changed with apps like GMX, perps still tightly couple the liquidity source for leverage with their application. By contrast, Gearbox allows you to execute leveraged strategies that actually execute against Curve or Uniswap.

To execute a strategy with Gearbox you put up your collateral, borrow the funds required to execute your strategy, and then execute it using a plugin to any Defi application they support. For example if you wanted to go 3x long, you could put up 1x collateral, borrow 3x whatever you’re shorting, swap to 3x of your long asset using any supported Dex, and hold that position while paying interest on the borrow. When plugged into something like Aave this also let’s you do fancy stuff like profit from interest rate spreads or leverage your way into a Curve LP Yearn pool which auto compounds rewards back to you. The potential here is open ended and incredible.

Gearbox v3 does a few cool things. First it allows borrowers to have better granularity on which position is secured by which collateral. The basic idea is they create a smart contract with your name on it that is executed according to a strategy you configure. Second it enables lenders to underwrite their own risk and choose what types of risk their funds are exposed to. This is a common trend I’ve seen lately in Defi. We are steadily moving away from pooling everyone into the same risk bracket and moving towards programmable money where everyone can adjust their own risk.

If you have time I’d suggest you dig in or you know, try it yourself. It’s far more fun to focus on exciting things happening at home than to focus on narrative noise from CT and bring it here.

u/Defacticool shares their experience getting phished so you don’t have to

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Alright so got hacked for the first time

Well “hacked”, I accidentally approved something in metamask that allowed them to take all my eth and one NFT.

Like 24k USD worth in total, which isnt the end of the world luckily enough. Luckily my main stack isnt on this adress.

I got fooled because I was trying to do the Frame airdrop and when looking at their twitter (the correct twitter) a fake frame account with a check mark (thanks for that Elon) were in their replies and I wasnt observant enough.

idiotic of me, but anyway

I still want to utilise this adress to claim airdrops and the like but I obviously cant do so when I have this hanging over it. I’m looking at the approvals checker on etherscan but cant find any approvals I did today or any access given today, so this fraudulent acces/approval isnt there.

Does anyone else know how I do/how I should do to remove their access to my address?

Thanks for any help

Edit: Also I suppose it doesnt matter now so for any interested sleuths heres my address for your perusal: 0x139373F9FFeDCf909518096fC165f3b87fD7046C

After looking over it it doesnt seem like I have any offending approvals. Is it possible for a phisher to have some other kind of access still?

Edit 2: The offending transactions seem to have been these ones, in this chronological order:

https://etherscan.io/tx/0x07344545d7b3e3ce7032dc5319ee9e3dbce291bcdbe3b798982055bb7b6a6567

https://etherscan.io/tx/0x4b7a6c41aed26af4280b24c7da787b0b5732a43e34bf81d6cea79c02857c2bed

https://etherscan.io/tx/0x8c374ec10e5254289a4c224e6dfae6c0a76a0466f0ab4bf7d803844f05c421f3

What I’m worried about now is that the scammer can repeat some function in order to drain my adress again in the future, if I fill it with some ETH for gas for example

If anyone with that are above my hobbyist level of ability could help tell me if anything in these transactions point to this being repeatable I would greatly appreciate it! (or just point me in a helpful direction would be really nice too)

u/haurog has a post about wallet security and phishing protection which you simply can’t miss

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There have been too many people being scammed out of some of their crypto holdings with the recent frame airdrop. The frame airdrop is legit, there are just too many fake claim websites wanting your money. If you use the network please consider installing/enabling transaction previews. These help you understanding what you are actually signing before it gets broadcasted:

Either use:

All of these solutions put another actor in your signing process which could get attacked. Be aware of that. I am also not sure how much information is shared with whom in all these solutions. The additional extensions have served me well in the last months in combination with the frame wallet. I think the Rabby wallet is the most user friendly one, but a bit too paranoid for my taste, especially if you are using very new protocols.

I tested all of these solutions on my go-to scam website I found some time ago, a tornado cash fork, which wants to steal all my funds. All of the above solution told me exactly what I sign and Metamask even wanted to prevent me from visiting the scam site.

u/Qwertybop1 shares a big moment they’re celebrating on-chain!

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https://etherscan.io/tx/0xde92b790ebd82fa73b69b3f1d32d1f5b3d11649971da43e20593c7e7099a0fba

We got married onchain yesterday!

u/strawdar summarises the new ETH research proposal

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So if I’m reading this proposal correctly:

  1. Beacon stakers would no longer receive MEV rewards

  2. MEV relays would sort of be replaced by execution ticket markets. This opens up the possibility to introduce burn on what today is MEV rewards.

  3. Block builders would buy execution tickets and run execution proposers

EDIT: I think I’m making some assumptions on number 3, because the proposal says this is orthogonal to PBS. So number 3 could involve multiple parties or it could not.

EDIT2: Before stakers get up in arms about MEV rewards going away, this proposal would open up a new avenue for speculation on execution tickets: “Explicitly defining an execution proposer lottery allows validators to participate only by choice. If they like the idea of flipping a coin and getting a high-value slot, they are free to buy execution tickets.”

EDIT3: More stuff is sinking in now. You could in theory choose to run your validators in a mode similar to today by configuring them to purchase an execution ticket for each upcoming slot, but the cost of that ticket will be market driven while today they are essentially distributed uniformly and randomly.

u/krokodilmannchen has the latest on the ETF front

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Latest on the ETF front: issuers have until next Friday to amend their filings. The SEC wants cash create only, and AP agreements. Whoever gets these done, will get a “go”.

Also, Blackrock will seed with $10m on January 3rd (subject to change).
Also, they have an Ether ETF filing. ;-)

u/masterRoshi9 shares a grounded investment thesis

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If you frequent crypto Twitter and are feeling doubt about ETH, and FOMO or anger over Solana, it’s worth checking yourself and asking why you’re invested the way you are, and why you feel like that way. Personally speaking the vast majority of my stack is, has been, and will remain ETH because I can hold it and sleep well at night expecting it to go up over time with minimal downside risk relative to other crypto assets. It has arguably the best fundamentals of any asset, not only in crypto, but in any market. On short time horizons it won’t always or even often perform the best, especially in a bull market where narratives rule the day, but it will provide the best risk adjusted returns imo, and wealth preservation can be just as difficult if not more, than capital appreciation. I’m still buying.

 

Having said that, The recent performance of Solana, and other tokens that are purely speculative bets, is a great example of why it pays to be open minded and why it can be helpful to diversify. I maintain a percentage of my portfolio for speculative bets, trading, gambling, etc. Doesn’t work for everyone, you have to be honest and cut yourself off if you’re just burning capital, but it’s fun, curbs FOMO, and ideally lets me capture some additional upside from narratives or short term plays. I missed Solana, but made some gains on WIF, and had some fun shit posting with friends about it in our own internal group chats. Also have some medium-term holds and narratives I plan to dabble in this bull market.

 

It’s easy in crypto, especially if you’re on CT, to feel like you’re in a rat race against everyone else, look at gains someone else has made off of something you consider vaporware, and let it upset you. Even easier to let narratives that ETH is dead and that X-coin with no fundamentals is the future of France upset you. Don’t. If you’ve been here for the bear and have been buying ETH then you’re up too. Normies aren’t even here yet. Enjoy the ride. Be happy for newer or smaller participants coming into money for the first time. This is how crypto grows. Most importantly do not feed into tribal hate. Talking down about the ecosystem that just made users money doesn’t attract participants to our ecosystem or encourage learning, it just pits you against them and feeds into negative sentiment. Be welcoming and focus that energy towards more productive endeavors. Learn from Vitalik. It’s impossible to hate a guy that is perpetually positive towards others. And he does an excellent job framing all of crypto as an “us” vs the them, if I do say so myself. https://x.com/matthuang/status/1738810362022232210

 

In the end I think the Ethereum ecosystem will capture Solana’s moat, but that time is not now. If you too think that time will come, good news, you can position for it. These are my biggest catalysts for ETH this year:

 

Basically what I’m saying is this: we should all be happy that the bull market seems to be back, and that we all have the opportunity to make money again in the coming year. If you disagree and are still bearish than maybe this post isn’t for you. Either way, enjoy the holidays, and may golden showers rain upon /r/ethfinance dailies every week for the next year!

u/Bob-Rossi reflects on a year of delegate representation

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In the spirit of year-end reflection and New Year’s resolutions, I am looking for feedback / suggestions regarding my delegating duties of ARB and HOP I’ve taken on this year. Asking as I’m still relatively new to this and want to improve when I can - don’t be shy or holdback anything in feedback. For some context, my goal has largely been to take on these roles to help get some of the great minds on r/ethfinance a way to feel represented in governance. I’m not sure that has happened to the extent I’ve envisioned, but hopefully I’m making some impact and will grow into that in the future.

Obviously, I have no way to tell who actually delegates to me, but I’m assuming a bulk of the people are those who post here. So figured this was the best place to ask. So in short, do let me know if there are things you think I can improve on or ways you felt I’ve let you down. As well as things I’ve done that you would like to see me keep doing. Even if you aren’t specifically a delegate to me.

Some thoughts / questions of my own:

Voting Transparency — I do try to post DAO updates here both for informational purposes and to keep myself transparent. I know following actually Tally / Snapshot votes is a pain, so I hope this helps. Unfortunately, ARB is a little difficult since the forum links are shadow-banned. I do try to comment in the Arbitrum / HOP forums on my votes where it feels warranted (or on the actual Snapshot votes themselves). No good way around the ARB problem, but I do link the votes and do a summary of decision here to help with that. I also try to wait until a few votes have passed to ‘batch’ my updates and avoid clogging up the daily toooo much, however if people would prefer immediate updates (say, within a few days of the vote ending) I can switch to that.

Voting Participation — I do try to vote on everything that comes up, since that is ultimately the fundamental role here. Regrettably, I did miss a few votes over my time doing this. I think about 5 or 6 overall earlier in the summer across both DAOs. No excuses, and I’ve made sure not to miss stuff going forward. I’ll add, the Arbitrum STIP voting I did probably vote in maybe 1/4th of the total pool of candidates. The structure was a major issue IMO, which I brought up in the DAO forums. Expecting delegates to vet and vote on 100+ projects in that timeframe was impossible, and it does sound like future STIP / LTIPs are making note of that. And I’m not sure many delegates did vote in 100% of those (hats off to those who did). Sort of a one-off, but wanted to clarify that situation, and I do wish in hindsight I took a little more time for that.

Calls — I do try to attend the ARB and HOP calls when I can. I work full time, so it’s as schedule permits (although ARB does record the call and HOP has notes). ARB I’ve been admittedly lacking, but I’ve been better having joined the last 2. This is one of my top goals, to have better attendance here. My Q here is this - do people want updates on this type of thing? Is that too much? It sort of goes along the lines of r/ethfinance input as I’ll discuss below.

r/Ethfinance Input — I know sort of the point of being a delegate is so that people don’t have to worry about day to day minutia. However, I do want to feel out people’s opinion on this. For notable / larger / more controversial topics should I try to reach out for input more? Do people rather just me ‘read the room’ and vote that way. I try to vote in a way that is best for the particular DAOs & the Ethereum chain, but again I want to leverage the mindshare that is here to do that as I am still only human. Also, I want to re-iterate that I welcome people to reach out. that doesn’t happen much, so if there are ways people think I can be more inviting, for a lack of a better word, let me know. I’d love to be able to be a bridge between ideas here and ultimately discussion in front of said DAOS.

Updates — Basically, a mis-mash of the above. I want to walk the line as best I can between over and under updating on issues. So thoughts on this would be appreciated!

Twitter — I don’t really like Twitter, but I made one as I can’t stick my head in the sand. I don’t really use it that much… I’d be curious to those who think if I should use it more? I’m thinking maybe just doing updates there as well for those who follow. I don’t want to dive into CT degeneracy, but I probably should use it as a space to get updates out?

And finally, a thank you! There isn’t a day that goes by where I’m not aware of the number of people that trust me with this. I know governance isn’t that sexy of a thing, but it’s really cool that people feel they can trust their vote with me and that isn’t lost.

u/lotec needs your help to push Coinbase into diversifying their stake

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It would be great if we could give Arbora.eth a bit more publicity for his campaign to have Coinbase switch away from Geth.

https://twitter.com/arboraeth/status/1739856214727557241

u/the_swingman points out the struggle newcomers would have in finding good crypto information

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Interesting you’re saying this today, I was just thinking about how lost a newcomer is in this space. Even if they found this subreddit, (could you imagine the lost faith in crypto if they visited r/cc or even r/Ethereum first?) I’m not so sure it would be obvious this is the place to trust or realize this sub is putting out the most critical/thoughtful info/discussion.

Imagine someone out there today (which I’m sure happens everyday) says, today is the day I’m going to get into crypto. Ugh, I’m getting a migraine just thinking about being that person.

Legitimately, im wondering where that person goes. The options are wild. Crypto Twitter, YouTube, reddit, discord, overall asking Google? Ooof. All of those can be very hit or miss with more misses than hits. Even finding coinbase and reading through their learning center can lead you down the wrong path.

There is just so much to comprehend on a fundamental level, then deciphering what is a quality crypto and why? The space is so polarized. For someone brand new, how quick would they learn the differences between ETH and BTC or XRP for that matter, or literally any other crypto. What’s the chances of them learning about LSDs or even the basics of Defi? Where is the drop off on the learning curve for most people?

Thinking about if I was brand new, jumping into “crypto” today, what would be the most helpful thing for me to learn and understand.. and how would I find it?

Off the top of my head, personally, I would like a flow chart. Something that could help me visualize the crypto space. Maybe a few versions of the flowchart, basic, intermediate, advanced .. clickable keywords that give a popup of basic definitions.

How would I find it? Idk, maybe this is where the Maverick funds do some SEO and try to find it’s way on the first page of Google.

u/benido2030 shares some thoughts on winning and not comparing to others

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Some thoughts on winning

When I was a student, online poker became popular. By chance (I don’t even remember how) I found an online poker school that handed out 50$ for free after passing a quiz. I started playing Fixed Limit on the low low stakes (well, because 50$ isn’t a lot) but learned a lot, became better, moved up. When I reached 5/10$ (still in FL), I couldn’t handle the daily swings anymore. After all I was still a student, had like 750$ a month for everything from rent to food to cloths to drinks. So being in a position of losing 1000 + onanygivenday, basicallywithin30minswastoomuchforme.Iplayed3/6 for a long time, switched to NL at some point and made it to NL200 games, but felt uncomfy again. I think I was a decent player (but nowhere near the best players on the high stakes) and could have moved higher with my bankroll and skill, but never did. I met a lot of high stakes players that made a lot of money (e.g. I am pretty sure I talked to Hasu a few times). A lot of friends made a lot of money just playing mid stakes, not even grinding nose bleeds. Later I lost interest, because I started working and didn’t want to grind at day and night.

As my second job, I joined a startup rather early, just after they had secured the first significant funding. The startup had created a new product, which turned out to be very successful, used the funding to do performance marketing and within 3 years, the company grew from basically 100 to 1000 FTE. A lot of “high profile” people were hired, earning a lot more than I did, despite being assholes, not being a cultural fit and also not delivering any meaningful results. But they were great politically, knew what to say, when to say it and how to impress the (also rather young) founders. I was living the culture, delivering, but earned like 50% and hated everything about the bullshit bingo guys.

When a very good friend of mine quit his job, he still had some free time before his new gig started and he asked me what to do with it. That was at the end of 2017/ beginning of 2018. I said “there’s this crypto thingy, seems to be interesting, maybe dive it?”. We decided to invest 1000$ together. I was still very risk averse and didn’t feel comfortable putting money into something that went up and down so fast, so I was happy we did it together. We bought the literal top in January 2018. Got like 0.7X ETH on a Friday, which made +100$ until Saturday. I still remember the euphoria, that day marked the literal pico top of the cycle. I learned a lot, eventually started living on-chain, but never really participated in farming, cause I still dislike spending ETH for tx I don’t really need to do for a potential airdrop I might or might not receive. I did receive a lot of airdrops, but I am also pretty sure that compared to others here, my airdrops are tiny.

Also I had a neteller credit card connected to my Amazon account and basically ordered stuff for free as a student and bought a new (small) car just after finishing university, because I had made 50k in online poker.

While I was “only” earning 50% of the supposedly high flyers, my salary 2,5xed within 3 years and I had way more money than I needed (and you are probably aware by now, that spending / investing money is not a strength). I also started as a senior role, but at one point managed 150 people and three departments.

While I probably should have invested more, invested earlier, farmed more and should have way more ETH than I have now, I have received a decent amount or airdrops that are a huge boost to my portfolio. More importantly, I have learned a lot, about investing, finance, how poorly I invested before, how many basic concepts I didn’t fully understand and how important it is to make conscious financial decisions.

Don’t compare yourself to the guys that make more money in poker, at work or in crypto. Compare yourself to the guy in the mirror that wouldn’t have played poker, wasn’t lucky to join a growing startup that allowed you to grow a lot in a short amount of time (both financially, but also when it comes to responsibilities and hence your CV), or wouldn’t have invested in crypto because that friend you needed would have said “no”.

If there is one thing that I have learned it’s that comparing usually won’t help you. It usually doesn’t motivate. It actually kills motivation. It gives you a hard time emotionally. Don’t compare yourself to the guy on twitter that brags with that 7digit PnL. Don’t blame yourself for not receiving the next airdrop on 5 wallets instead of one.

Comparing doesn’t make sense, because your risk appetite is unique. If you accept that you are defined by who/ how you are, you will be able to accept outcomes way better. We can’t expect to make millions if we don’t invest a lot (of time, money, ETH). And that’s okay!

Celebrate that one airdrop like it was the lottery. Be happy about your first ETH like it was worth a million. Don’t try to be/ act different then you truly are. And you’ll be winning!

2024 Predictions
Week #48: December 22, 2023

Livestream Recording | POAP

Upcoming Guests

The morning trinity

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u/Fiberpunk2077

Ethereum

u/alexiskef

$2260

u/usesbinkvideo

88,715 hodlers subscribed (+6)

u/bagogel12

Day 463 since The Merge

Weekly Haiku: u/Jey_s_TeArS

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Yes we tokenize,

No you won’t believe your eyes,

New money arise.

Shitpost of the week: u/doomfuzzslayer

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Sold my ETH for a 2020 Honda yesterday. I’m out of crypto entirely now (gladly). I know the used car market has been hot the past year but I’m betting it has some room to run. IF I buy into crypto again (with my used car profits) it’ll be a basket of sub 1000 MC coins with 100x potential and some SOL/AVAX for stability (they’re the new BTC). I’ll be fine with a 10x tho. Regardless Eth is done imo and everyone here is wasting their time. Advice (not financial) get out before the inevitable epic crash and buy something with more upside. Aside from used cats, garbage pail kids (first edition only with stickers intact) are looking strong.

EDIT: meant to say used cars in that last sentence, but used cats also have more potential than ETH so not gonna correct.

EDIT2: meant this whole post is a joke. Bad timing I know but hoping to lighten the mood a bit

u/benido2030 has found 2023 to be their favourite year in crypto

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I am tired. Hyped, cause I believe 2024 will be a good year, but more tired now that it’s still 2023. I think that’s partly the bear market which is exhausting, because I promised myself to learn a lot and pay attention to benefit during the bull market. But probably also just psychology cause the year is coming to an end and humans are strange. It’s an arbitrary date, but still it feels significant, I guess also because of the holidays. In any case this year was my favourite year in crypto. I have learned a lot, developed new interests (eg for the importance and details of governance) and the past 12 months made me feel like home in ETHfinance. I love this community since I joined (2019 or beginning of 2020, don’t remember) but somehow 2023 was special and I would like to thank all of you!

That being said I’ll post less for the next 2 weeks I guess, but I’ll stick around, will read and will be back in 2024. love you all!

u/hanniabu defines some terms which some people seem to be confusing

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There seems to be some confusion around terminology. Maybe the terms have been diluted from when I learned them, but this is how I’d define these terms:

u/haurog explains parallel execution on Solana and some criticisms of its consensus mechanism

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In my understanding the solana parallelism relies on the transaction submitter to tell them what contracts/states they touch. It is assumed that they are honest. The attack vector on the paralellisation then goes like this. Just tell the SVM you are touching all AMM contracts, even if you do pretty much nothing in your transaction. The SVM then cannot process the other AMM swaps in parallel, but has to wait until it has processed yours before it can do the other swaps. You force it in doing at least one step serial. Transactions are cheap, so nothing stoping you spamming the network reserving resources left and right. I do not think one can bring Solana down with such an attack, but it would slow down the SVM quite a bit.

If you want to learn about some real issues with solana in the consensus mechanism they use, there is a recent conference paper by the distributed computing group at the ETH, a university, in Switzerland: https://tik-db.ee.ethz.ch/file/9d40dad802dd12d9ba1f1b7c1759920c/

I only skimmed over it, but here are some juicy bits:

App devs might want to develop on SVM for its speed, but to be honest, there are not that many dApps on Solana, so it seems to be difficult to find dApp devs. They had quite some incentives in 2021 I think to onboard people, but it was a limited success as far as I remember. Maybe now with the renewed speculation they might attract more settlers, but we will see what happens. I guess generally Ethereum people are interested in Solanas tech, because they implemented things which need to be solved on the Ethereum side as well. In my opinion, parallelization is not the bottleneck on Ethereums side just yet, it is probably more important for L2s. The Bottleneck is rather the state size and how it is stored/accessed which needs to be solved before one can reap benefits from a fully parallelized EVM. And I am not aware that Solana has solved that issue, but as always I could be very wrong there.

u/SpontaneousDream has a Coinbase vs the SEC update

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Surprised there isn’t more talk about the SEC decision today against Coinbase’s petition. This is over a year in the making. Essentially, they are going against Coinbase’s view that:

"the Petition’s assertion that application of existing securities statutes and regulations to crypto asset securities, issuers of those securities, and intermediaries in the trading, settlement, and custody of those securities is unworkable

Official SEC release.

Gensler comments.

Coinbase has appealed and will be taking them to court. This will probably be the most important court case in crypto’s history.

In my mind, when Ethereum held its ICO, it was probably security. IANAL but a brief look at the three prongs of the Howey test makes ETH sound like a security offering back then. BUT, Gensler I believe has said before that something can start out as a security and “become decentralized enough” to become a commodity. Don’t quote me on that.

u/TheHansGruber has a staking node update

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It’s been about two and a half months since the holesky testnet re-launch, and all is quiet on the western front. My several thousand holesky validators are choochin’ away with no significant hiccups. Running geth/lighthouse at the moment. Still haven’t gotten around to setting a withdrawal address for them. For some reason I started having a difficult time picking up peers on this machine. Since launch I have been stable at 1round 15 peers, but over the last week that has dropped to 1-2 and sometimes 0 peers. Surprisingly, and this is more of a testament to the design of the network, my average effectiveness hardly dropped at all during this. I remained in the mid to high 80’s.

I did do some changing of my network setup and for a few hours I had the holesky machine connected to both wifi and ethernet…I believe the machine had two IP addresses assigned to it and that may have caused some wires (or em waves?) to cross.

I decided to go ahead and forward the ports associated with the EL/CL applications, something I have not had to do with the rocketpool or solo machines. Both of those machines have 50+ peers running out of the box setups and nothing besides a static IP assigned to them. Anyway, running this setup overnight has brought the machine up to the max specified 50 peers and I foresee no other changes needing to be made as far as networking goes.

The other fun part about all this is that I have finally pulled the trigger on a nice little rackmount setup. Not necessary (by a longshot), but a lot of fun for a self-proclaimed computer enthusiast. Over the last couple years I have collected some rackmount equipment that I have come across for free/cheap. UPS’ that are being tossed just needed a couple new batteries. Gigabit switches that just need a new SFP adapter, etc. Color coding the patch cables and swapping out USB/HDMI/ethernet keystones to make it all look neat and professional. I made a custom mount for a gas spring arm for a monitor on the back of it. There are these cool 1U flip up monitors you can buy that are like 700 quatloos ….yeah….nah….I’ll use my free, collecting dust in a corner monitor instead. I have discovered that any normal computer component becomes 10x more expensive if it has “enterprise” or “rackmount” in the name.

I am trying to convince another local ISP that I am a business so they will install a fiber line directly to me. My understanding is that the install would be free, and the monthly cost would be more than what I am paying now, but not wholly unreasonable considering how much time and bandwidth I use. I have been close to picking up a dream machine pro because of the sale ubiquiti has had on it…apparently they never do discounts…but after perusing through the rest of their hardware if I fall down that rabbit hole it’ll take eth breaking 100K before I can pay off the credit card bill. They’ve got some good lookin’ hardware. That said…if I am a business, then that can all be written off…so less taxes…and there I go talking myself into it again. I’ll stop now.

The nodeset machine is up and running as well, just waiting to be assigned. I am looking forward to that launch next year. There’s a lot to look forward to, and a lot of good work being done combat the biggest threat to ethereum’s credible neutrality. It should remain on everyone’s mind that the priority needs to be the health of the network. Any entity that approaches 33% is a threat to credible neutrality. Doubly so for an entity that says out loud that they do not care and will continue to grow in an attempt to harm the network in pursuit of greater profit.

Just so everyone is clear: there is no debate about this. Let us keep fighting the good fight, less we lose the greatest value prop of ethereum.

I’ll keep the staking machines running. Sip some coffee. Get my steps in. Enjoy the beginnings of the bull and patiently await new ATH’s. Post here, and occasionally degen 100x some coins no one should touch with a ten foot pole. You know…for fun. Because if we don’t remember to have fun doing all these frontier-of-the-internet shenanigans…what’s the point?

u/stablecoin discusses the difference between high and low conviction investors

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weak conviction endlessly follows price pumps, strong conviction requires years of building on ideas and integrating within the ecosystem to deliver on the promise of decentralized uncensorable monetary system that any entity can build on.

there’s a difference and some of you don’t seem to understand. for example is retail going to deposit directly into CRV pools or is retail going to use an app that pays their transaction and draws liquidity from the CRV pools in the background? stop worshiping retail pumps like they mean anything other than CT rotations and drummed up VC exit liquidity.

FTX estate recently announced they are giving people cash equivalent of crypto when Bitcoin was at 16K prices, and keeping the rest (ie spread between 16K and 42K). guess who also happens to have a lot of SOL to pay back their estate in such a generous way? strange how it all works out huh?

u/Nyruds shares the EthFinance farcaster channel

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Someone created an ethFinance channel at Farcaster. Certainly not to replace reddit, but to try to gather like-minded people in a group on Farcaster.

If you’re a user of Farcaster, be sure to join up!

u/austonst has an unfortunate piece of block relay news

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BloXroute have announced that they are no longer accepting block submissions from builders that contain any transactions that interact with OFAC-sanctioned addresses. For now they’ve enabled their OFAC checks on their max profit relay, but obviously this makes it kind of the same as their regulated relay and at some point we’ll see them merge into one.

BloXroute’s max profit relay currently has an inclusion rate (market share? it’s complicated) of ~20%. Turning it into a censoring relay doesn’t mean 20% more overall Ethereum blocks are going to be censoring. It’s more likely that the remaining non-censoring relays will still deliver those blocks, and the impact on Ethereum will be minimal. But clearly this is a trend in the wrong direction for network health.

P.S. reminder that censorship at the builder level is a much bigger concern than censorship at the relay level right now.

u/nixorokish sings the ultrasound team’s praises

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man, this makes me so mad. dude misses a few blocks and sees ultrasound relay being transparent about looking into user issues and engaging with the community and makes a fud post about them on ethstaker… and mixes it in with a good message about bloxroute censorship, so it’s getting upvoted

https://reddit.com/r/ethstaker/comments/18lpd53/update_your_relays_bloxroute_is_now_censoring/

ultrasound is seriously such an amazing team for this space. both justin and alex do a huge amount of work to try to keep projects censorship resistant, including reaching out to staking orgs to ask them to run non-censoring relays, doing censorship resistance research, liaising with businesses on keeping ethereum credibly neutral, communicating with the public, helping users troubleshoot, etc. and the relay works great for most users around the world. the fact that there’s an issue in hong kong and australia is newly discovered, thanks to user feedback. and this brand new user who has never even interacted in the subreddit misses a few blocks and immediately makes a post to shit on them. this is why we can’t have nice things

u/LogrisTheBard discusses the concept of useful proof of work

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Have any of you heard of “useful” proof of work? Now I know most of us here are thoroughly in the proof of stake camp for consensus but at the end of the day all our stake is doing is serving as a basis for Sybil resistance so a bunch of nodes can vote on what the truth is. At the end of the day it’s just majority rules. Ethereum solves Sybil resistance by making participants proof they have something. Bitcoin solves Sybil resistance by making participants prove they spent something. That’s obviously quite wasteful if you spent that something while getting nothing but Sybil resistance in return but what if the work produced something of inherent value?

The most famous form of proof of work is hashing. However, the nature of the work can take many forms so long as the task meets a few basic requirements.

So, are there any other “infinite” demand tasks exist with a statistically verifiable outcome? At least one important one is AI training. At least for certain types of AI you’re basically just tuning an extraordinarily large array of numbers. That tuning works like a search that takes place over many iterations. Each iteration outputs a vector in that space which is basically your proof of work. In a large enough search space, guessing the right direction is basically impossible. So, to get a coherent direction consistently you need to actually do the training work. This is basically the insight of GenSyn.

So, now you spend electricity and rather than getting BTC which is just a proof of spend, you get ownership over the model you helped train. Once you have Sybil resistance through this means you can pile on an EVM, SVM, or whatever you like on top of it. Think of it as swapping out just the consensus client. People do work and prove they are real, real people just vote on the truth of the state machine. Majority still rules.

There are some potential advantages here to decentralization. PoS at least has a cost of the time cost of the capital that is parked there. Useful PoW might have actually no cost if the economic value of what is produced by the work is greater than the spend required to produce it. Also, anyone with a graphics card powerful enough to iterate on the model can participate without having to hold $64k in ETH. The waste of the system is reduced to the verification time on all participants. That can be offset by the transaction costs of the network being secured.

I just thought it was an interesting line of thought worth sharing. There are forms of work outside of AI but this is one that I came across in my consulting work. Also BitTensor had a pretty good primer on the ecosystem of PoW systems if you want to get your head out of the Ethereum ecosystem for a minute.

u/696_eth compares all of the major chains

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What’s good bearfinance. Since I stopped being a decentralization maxi I got to be more free and open minded and explore many other chains, here’s my quick summary.

SOL.

Pros: good fees. Phantom wallet is way better than Metamask and any wallet for any other chain that I’ve experienced. You can still enjoy the defi, NFTs, etc but for low prices so it’s more appealing to masses. All of that is good until you hit their main concern, so let’s get into cons.

Cons: when needed aka when demand comes in the shit doesnt work but even w/o that half of the time my TXs on dexes don’t go thru. I’m assuming when there would be even more demand in the bull run the chain would stop or half of the shit wouldnt work. So yes, the fees are low but the chain doesn’t work. It doesn’t make me feel secure to hold more than a few $k on the chain and I’m sure real world whales wouldn’t want the chain to stop at any time either.

AVAX.

I might’ve gotten to degen there in the wrong time but the fees WERE INSANE. I paid more than Ethereum fees for prices. I don’t know what their adv is and I don’t care, the experience sucks. Oh, and I also have gotten my TX’s failing for unknown reasons while still losing like $10-20 on trying to swap..

Cardano.

Cardano is a poor man’s Solana. Basically all the same shit except it’s even worse. Fees are not as low neither. Sometimes the chain just stops, oh well. People say you wait 1-2 days and try again lmao.

Osmosis (or whatever its called)

I didn’t have a bad experience but I haven’t done much there. I’ve already ran into a few hiccups and I’m assuming there would be more if I explore. Also, it’s also probably working ok cause not much demand and again I think that will change when there’s lots of demand.

BSC

I guess it works but the emphasis on the ‘guess’. Cheap fees but yeah idk.

Bitcoin

30-40min blocks, insane gas fees ($40-50) per tx, no good fucking wallet cause they have their lightning and other ones and there’s taproot and some other shit and it’s all over the place and I need 3 wallets but then I can’t send from different parameters aka lightning, taproot, to each other. Doing NFTs there is a fucking joke, let me tell ya, but free money is free money.


Out of all of these, honestly, SOL is probably the best experience for a normie user. You don’t have to have much money and it generally works relatively well until it doesn’t. Bitcoin has the opposite issue, works poorly awful but it ain’t gonna stop.


ETH L2s

Linea: fees are like mainnet at 30 gwei, wtf is that?

Scroll: fees not too bad but could be better.

Arb1: somewhat better than scroll.

OP, Base: almost 0 fees and quick confirmations. love it!

Zksync: pretty good fees tbh compared to zkrollups and arb1 but high compared to OP stack.

Polygon ZkEVM: similar to zksync I’d say.

Arbitrum nova: similar to OP w almost negligible fees but idk who uses it.

Gnosis scan: similar to Arb nova.

Starknet: fragmented out of Ethereum’s ecosystem, getting there felt worse than to an alt L1, fees are higher and Linea doesnt look that awful with the Starknets presence.

Polygon PoS (sidechain): actually has an ecosystem, fees more similar to Arb1 & zksync when there’s more demand and activity, but usually it’s a few times cheaper. You gotta have matic to use it tho so that’s a downside.

ETH.

Secure. The fees are kinda high, they are ok but def not for the normies. When the demand spikes up and when more demand comes back it is def going to be only for whales or for degens. The chain never stops tho. Gas wars exist but chain works perfectly. Idk, not really much to say, things seem obvious to me. There’s hella liquidity too, there are options like defi that let me do things that I wouldn’t do on the other closest chain by security - Bitcoin, and then compared to that the block times are magnitudes of order faster. ETH definitely wins for me as a settlement layer and makes me feel comfy holding assets there.


Will I still use other chains? Probably.

If I can make free money - sign me up!

Will I still airdrop farm them? Hell yeah, duh?!

Will I store there a significant amount of money? Hell naw, sometimes I’m withdrawing from them faster to my CEX and holding it there cause I trust Kraken more.

That said, I’m looking excited for zkrollups after 4844 upgrade and just looking forward to a more mature ecosystem of Ethereum where scalability is solved thru L2s without compromising the security and decentralization of the settlement layer. Also, we badly new a way better wallet and for front ends to be a nicer experience and at least handle the capacity of the users that Ethereum is gong to attract.


Lastly, I’ll leave you with this.

Decentralization is undervalued until it doesn’t.

u/haurog looks into Solana’s decentralisation

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The discussion in here has gotten a bit out of hand while I was asleep. The ETH sentiment seems to have reached a breaking point, at least for some people. Looks to me like the concentrated marketing and FUD campaigns seems to bear fruit on some. Not surprising, but still sad to see. Someone mentioned Solana nodes, so I share something I realized in a discussion I had on farcaster DMs this week:

Solana has close to 3000 nodes. We do not know how independent they are, but someone asked an interesting question a few days ago: ‘Why does solana have over 10% of its validators in Ogden (Utah)’. It was also mention here in ethfinance, but I cannot find the comment anymore.

When you check the solana decentralization statistics today. Ogden ‘only’ has 133 nodes (5%), but Wichita (Kansas) has 375 (13%). By the way, the Bar chart on the right side still shows Ogden as having 293 231 servers, yesterday it was 304 (or so). So it seems slightly delayed.

If you click on ‘staked nodes’, which are nodes that are also validating, solana has close to 2000. Do not ask me why there are more staking nodes than actual nodes in some locations. Maybe these numbers are filtered in a certain way. Maybe the numbers are just delayed and fast relocations of the nodes gives these weird results. I do not know. 123 of the staking nodes are in Ogden (6%). The bar chart to the right still has Ogden listed with 314 (16%). But now, Wichita seems to have 492 of them, which is a staggering 25% of all solana staking nodes. This in itself is not a healthy number being in one location. What I think is even worse is that it looks like hundreds of nodes have been moved from one location to another within days.

I would interpret that as a single entity has control over a large part of these nodes/validators and moves them around at a whim. It definitely is very fishy. Much decentralization…
Week #47: December 15, 2023

Livestream Recording | POAP

Upcoming Guests

The morning trinity

View on Reddit →

u/OffMyPorch

Ethereum

u/epic_trader

$2,266.44

u/alexiskef

0.053

u/anderspatriksvensson

Current supply: 120,203,798.439280234596606888 ETH and dropping!

u/bagogel12

456 days since the merge

u/Kukai_walker

250 days since last JBM post

Weekly Haiku: u/Jey_s_TeArS

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Many objectives,

Assessing the perspectives,

Blockchain collectives.

Shitpost of the week: u/15kisFUD

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A rumor goes around in insider circles that Michael Saylor bought a second chair

u/Papazio explains how they may have just sent someone down the rabbit hole

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Tiny tid bit of random but potentially interesting information… (emphasis on the potentially)

I spoke to a pension adviser recently, while discussing my assets/plans he assumed that I’d need to sell my ETH to pay for various things. He was blown away at the prospect of permissionless borrowing and even more so at what’s possible with Alchemix.

He was neutral on crypto in general and had a basic understanding of Bitcoin and Ethereum. He asked me to explain Ethereum in a way that he might not have heard before and I said something like ‘a credibly neutral digital settlement layer’. That totally clicked with him. He said that because media/people always focus on the assets themselves, he hadn’t twigged that the asset are valuable because the networks are valuable.

It was a brief but really enjoyable chat about what the technology is and what it enables. He asked me to send some links to defi projects as examples for what can be done using Ethereum. I might have just nudged him down the rabbit hole that we’ve all been down, I hope so.

u/Mrs_Willy finally returns with TA (Terrible Analysis)

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Good evening lovelies. Not logged on for over a year. Good to see some old names still active. Been completely out of the game for a year, life and all that = positive, investing in myself.. Will deffo be on over xmas holidays and in the run up, doing some Terrible Analysis and being silly as usual..

I have no idea about any fundamentals as usual, staking still means having ribeyes in the fridge to me. I can post a pic of a 28 day matured Hereford (UK local) ribeye as my proof of steak. Hope it all went well and eth is saving the planet and buterin being claimed as the second coming of christ etc.

It seems just like last week where the 180 darts memes were in full flow, and you could double your money in the time it takes to go for a piss. I think I nearly virtually got married on here, to someone whose name I can’t remember (small Corey) , but it didn’t happen cos the groom refused to accept DC investor as the vicar. If you are watching, I still love you and require regular suckles from your moobs.

I ditched my premium Trading view acct over a year ago and called up this one yesterday, untouched for a year from my now basic membership , thankfully it keeps the lines drawn, but loses oscillators and fibs.. So here it is. Our beloved Raymond. 4u ratiogang…

But what’s does this mean mrs willy? All I see is slices of pizza everywhere? Well I would urge you to look at the lower green diagonal, rays trusty long term upward support. We now have five touchpoints. I remember ranting on about the significance of xmas period for crypto, aka big movements. So why has ray tickled this every xmas bar one touchpoint since 2017.

Disclaimer : Rays erections can lose you money, but he usually gets viagra for xmas. .

https://www.tradingview.com/x/kNP8iVOi/

u/OkDragonfruit1929 shares an overlooked threat to cryptographic systems

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Most of the discussion around blockchain encryption algorithm security has shifted to concerns around advances in Quantum Computing, however, I fear there is another, less sexy and therefore less popular, but far more dangerous risk lurking in the shadows.

Most encryption protocols that are no longer used weren’t “cracked” by brute forcing, but rather, a fatal flaw or new mathematical concept was discovered which rendered the necessity to brute force the encryption moot.

There are algorithms that, if the flaw had not been discovered, would otherwise take millions of years to “brute force” in the traditional sense, even with modern advances in GPU performance.

One of the most prominent historical examples of this is the encryption algorithm, RC4.

When RC4 was designed by Ron Rivest in 1987, it was considered secure against brute force attacks even with large key lengths. At the time, there were no known “fatal flaws” in the RC4 algorithm itself that would enable shortcuts to finding the encryption key.

However, over time, cryptographers discovered vulnerabilities in RC4 that completely broke the algorithm:

RC4 turned out to have latent mathematical vulnerabilities unknown when it was first introduced. When discovered and properly exploited, these flaws made brute forcing irrelevant - the keys could be recovered much more quickly by exploiting previously undiscovered flaws.

If those flaws had not been uncovered, even with the advanced computing power we have today, untreated RC4 encryption, like Keccak-256, the hashing algorithm used to secure Ethereum, would have otherwise taken millions of years to brute force.

As AI continues to advance, especially in areas like mathematics and cryptography, it raises the risk of AI systems potentially finding vulnerabilities in existing cryptographic primitives that human experts have missed.

An AI system that has been specifically trained in cryptography, number theory, abstract algebra etc… could potentially have capabilities beyond any individual human cryptanalyst. If focused on analyzing something like Keccak-256, the hashing algorithm usedto secure ethereum, it might conceivably find a mathematical weakness.

For the time being, human ingenuity and intuition still often exceeds AI systems, especially in creative realms like developing new cryptographic attack techniques. So I wouldn’t count on AI finding and exploiting flaws in encryption protocols right away within the next year or so.

Leading cryptographers do already actively think about AI safety and robustness in cryptography, so defenses are being developed with AI systems in mind. Things like quantum-resistant cryptography, algorithmic randomness testing, and cryptographic verifiability provide technical means to verify security assumptions even in the face of advanced AI.

However, due to innate biases in human researchers, we may have likely overstated the capabilities of human ingenuity compared to rapidly advancing AI systems. There are a few reasons why AI may surpass humans in cryptanalysis creativity and intuition in the not-so-distant future (perhaps 3-5 years):

The historical compromise of once-secure encryption algorithms like RC4 demonstrates the risks posed by mathematical and cryptanalytic advances. Latent flaws can lurk for years before discoveries in codebreaking render brute force attacks unnecessary. As AI systems continue rapid improvement in areas like cryptography, they may have the scale, lack of bias, and creativity needed to surface new flaws in encryption primitives required for blockchains to remain secure.

u/pa7x1 explains what we seem to have forgotten about previous cycles and what really matters in the bigger picture

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I think people forget easily the despair they felt on other occasions. Can’t even count with the fingers in both hands how many times people were giving up on Ethereum because of Solana, Tezos, EOS, Cardano, Ripple (it was the second biggest coin back 2017ish), Litecoin, Polkadot, Avalanche, BSC, Nano, Algorand, Tron, Iota, and of course Bitcoin. But if you zoom out the trend is clear, the previous challengers tend to irrelevance. Ethereum keeps crawling upwards towards the biggest market cap. The local minima that it sets with respect to Bitcoin keeps going up.

And it has wiped out the floor in terms of adoption metrics that can’t be manipulated with respect to everything else. You should never pay any attention to metrics that can be pumped up at no cost. # active addresses means nothing, they are created for free and this can be automated without any human intervention. It means nothing. Don’t care either about # transactions per se as an adoption metric. These are digitized systems, machines can generate transactions at insane speeds. A transaction here does not necessarily represent economic activity or a change of goods. In the same way moving coins from my left pocket to my right pocket doesn’t constitute economic activity nor bumps GDP numbers. The way you track economic activity in the real world is through VAT (value added tax), the moment someone pays a tax to participate in an economic exchange is the moment you can be pretty damn sure whoever participated in that exchange was willing to do so because it generated value added. The network fees are this type of non-fakeable metric. This is a very real cost to whoever participated in an economic exchange. Guess what, Ethereum wipes the floor. Solana does a measly 100K USD on a good day, Ethereum does 100x that, 10M USD.

Here lies the problem, if you are going to sell a very cheap good with low profit margins. You better sell a lot of it, to make up for it in volume. Solana transactions are very cheap so it generates a lot of potential demand for transactions, but even being this cheap they cannot sell enough to make up for it in volume. Solana would need to scale by x100 from 500 tps to 50000 tps keeping current transaction fees to challenge Ethereum. Or increase transactions fees by 100x, in which case we will see how many of those low value transactions remain on the chain. Or anything in between that makes up for the 100x.

The TVL onchain, which is a bit more gameable than the fees but still can be used as a proxy, is pitiful. There are 900M USD onchain on Solana. That’s not even 1 whale. Ethereum has 30 billion USD just on the L1, and another 16 billion USD on the L2s. All these Solana activity you see on Twitter is most likely completely fake, paid out by VCs or the Solana foundation. Or completely irrelevant users with barely any skin in the game.

https://defillama.com/compare?chains=Ethereum&chains=Solana&chains=Tezos&chains=Tron&chains=Bitcoin&chains=Cardano&tvl=false&volume=false&fees=true&revenue=false&addresses=false&txs=false

Remove the noise, focus on what matters.

u/im_THIS_guy bashes on Ray – but in a valid way (and not how you might expect!)

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It’s time to address the elephant in the room. It’s time to admit that The Ratio© is the worst unit of measure since Fahrenheit.

The flippening is all about ETH market cap overtaking BTC market cap. So, then, why is the Ratio metric comparing price/price instead of market cap / market cap?

The flippening target, on the Ratio, currently stands at 0.16275. Does anyone know that off the top of their head? Is it a nice round number that’s easy to communicate?

The flippening target is a moving target that changes literally every second. Moving targets are absolutely garbage in the business world.

BTC and ETH supply are constantly changing. Thus, a Ratio of 0.05 today is different from a Ratio of 0.05 last month. In fact, a Ratio that stays flat moves us further and further from a flippening, due to ETH’s shrinking supply.

Because the Ratio means different things at different times, based on changing supply, graphs of the Ratio over time are misleading. Any TA performed on those charts is wrong. There would need to be inflation adjusted Ratio charts.

Now the alternative:

A market cap / market cap ratio solves all of this.

No moving target. The flippening target is always 1.00 and always will be.

It’s an easy to remember target and easy to communicate.

It is unaffected by changes in BTC and ETH supply.

The market cap ratio currently sits at 0.33. That tells you exactly what you need to know without any further information. The price of ETH needs to triple to flip BTC. Easy.

The Ratio currently sits at 0.05365. Quick, what does ETH need to do to flip BTC? Better pull up a computer. Because this Ratio tells you literally nothing.

Please, I beg this community to abandon the Ratio. Join me in welcoming the Market Cap Ratio. Think of me as Anders Celsius, introducing a sane metric that’s easier to use and understand.

u/Ethical-trade explains the difference in marketing for industry competitors vs industry leaders

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It’s a common business strategy to go after your competitors’ market shares, because their customers already know the product category, have demonstrated a need for it, and have already been willing to spend for it in the past. Cost per customer acquisition tends to be lower.

But this strategy is only viable if you’re a challenger.

The leader of a niche usually has to market not only its own product, but the entire product category as well. The leader has to grow the market itself.

Recently Coinbase has taken the approach of a leader:

- The recent announcement of a new feature for sending and receiving usdc for free through Coinbase wallet has the potential to be a game changer for adoption.

- The legal battles Coinbase is fighting really do seem to aim at making the situation better for all players, and bringing the fight to public attention through transparency not only ridicules the opponents (the SEC) but also shows alignment with a crypto core value.

- The “update the system” short videos aren’t centered around crypto users pain point specifically, they’re targeting the general population.

Coinbase bets on its (non custodial) wallet. Coinbase bets on Ethereum L2s and by having its own, Base. Coinbase clearly sees in Ethereum what we all see in it, they see the future.

u/Bob-Rossi has an ARB delegate update.

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Recent ARB vote updates:

A vote to Incentivize the “Rage Trade” platform was fairly unanimously voted down, with a ‘No’ vote from myself. This result was pretty expected, as the general consensus was this would better fit within the defined STIP framework.

The Security & Audit Framework passed, moving forward work on setting up a comprehensive request for proposal process for selection of auditors & security-based service providers. I voted ‘Yes’, as I am largely in favor of having service providing decisions be handled as uniformly as possible. The Rage Trade request above is an example of this, where it’s just easier to have frameworks instead of individual requests.

ArbOS Version 11 passed. For those interested, might be best to click the link. A lot of Github PRs to read! I voted Yes, as it felt like a formality more than anything.

I voted ‘Yes’ to extend the timeline for STIP & Backfund STIP funding. In short, longer than expected KYC approval times were really shortening the window grants could payout their ARB. Felt fair to approve this, given how relatively messy the whole process was. Grants that were looking to incentive users may suffer from only being able to provide ARB during a super-short window.

The Tally vote to backpay early Arbitrum community contributors has failed. I did vote Yes for this, but it seems most the No voting came from a place of general approval, but not comfortable with the specific implementation of it. With what seems like broad support for the basic idea, I’ll be curious if a re-worked proposal will come from this.

Currently active is a vote for an experimental trail period of paying active ARB Delegates. I did vote Yes, as I generally am for paying for crypto work where it feels appropriate. There are a lot of metrics that will (hopefully) incentive active DAO participation from delegates. I do wish a larger size of delegates were being paid… I pushed for this, and it was increased from 30 to 50, but would have rather seen more to entice more / new delegates. I understand the criteria, and having a cutoff is good for a DAO this size, but it probably could have been increased further.

This all comes with the caveat that I fully understand what this vote represents - a group of people voting to pay themselves. Not sure if there is ever a good way to handle that, but it the proposer has gone through a lot of revisions from community discussion, so at a minimum it feels to at least not be something thrown together in a hasty attempt at a money grab.

u/hanniabu is following the latest from the federal reserve

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https://twitter.com/KobeissiLetter/status/1735012568291332458

SUMMARY OF FED DECISION (12/13/23):

  1. Fed leaves rates unchanged for third straight meeting

  2. Fed says growth of economy “has slowed” since Q3 2023

  3. Most Fed officials see interest rate cuts in 2024

  4. Median projection shows 3 rate cuts in 2024

  5. Fed sees 4.1% unemployment by end of 2024

  6. Fed sees US GDP growth at 2.6% in 2023 and 1.4% in 2024

The market is pricing in DOUBLE the number of rate cuts in 2024 than the Fed projects.

We could see a repeat of the pre-covid run, covid dump, then bull run. I’ll go ahead and call ~$3.6k top before a rate cut dump down to about where we are now, and then the real bull run starts.

u/Revanchist1 explains the significance of the FRAX x PayPal partnership

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tricky told me to repost it since it got flagged by automod. I’ll remove the links but try my best to still make sure you can find the source.

Fraxchain testnet is Live

An ETH L2 that will use frxETH as the native token as opposed ot native ETH. Due to the dual nature of their staked ETH model, the more frxETH that is not staked means increased APR for their staked ETH derivative - sfrxETH.

Also a portion of transaction fees on Fraxchain will be sent to veFXS holders as rewards.

Afterwards Frax aims to launch their frxBTC product afterwards. I’m really interested in how Frax will keep the BTC peg while still being decentralized, like they claim.

From Sam:

Launch frxBTC after Fraxchain so that Frax Finance also issues a BTC-pegged stablecoin everywhere else outside of the Bitcoin blockchain and starts accumulating monetary premium in DeFi.

In my opinion, the best part of the FRAX ecosystem is that Frax is their biggest customer. They build products that Frax will use and benefit from. Similar to Amazon and AWS, turning their biggest expense into their greatest earners.

FRAX and PayPal Collaboration.

I find it interesting to see a US company partake in the CRV wars and DeFi as a whole. It’s incredibly cool to see a partnership forming between TradFi and DeFi. PayPal slowly testing the benefits of liquidity dApps like curve, convex, and Frax.

Frax received $10million pyUSD from an associated PayPal address and a governance proposal was submitted to Frax.

FRAX Finance Governance FIP-307

Summary:

This proposal seeks to officially whitelist PayPal USD (PYUSD) into the Frax Curve Automated Market Operator (AMO). This action aims to enhance the diversity and utility of the Frax ecosystem by integrating a stablecoin linked to a major financial service provider.

Background and Motivations:

The inclusion of PYUSD in the Frax Curve AMO will broaden the range of stablecoins within our ecosystem, providing users with more options and enhancing the overall resilience of the platform.

PayPal is a globally recognized financial services provider. The integration of PYUSD can leverage this reputation, potentially attracting new users who trust PayPal’s brand and services. The demand for stablecoins continues to grow within the DeFi space. By adding PYUSD, we are meeting this demand and ensuring our platform remains competitive and relevant.

Here’s a great $PYUSD blog post I found concerning the levels of safety with regards to customer protections.

Google “JPKoning PayPal” it should be the first link. Worth the quick read

Title: There are now two types of PayPal dollars, and one is better than the other

If you listen to Congresswoman Maxine Waters, who in response to PayPal’s announcement fretted that PayPal’s crypto-based dollars would not able to “guarantee consumer protections,” you’d assume the traditional non-crypto version is the safer one. And I think that fits with most peoples’ preconceptions of crypto.

Not so, oddly enough. It’s the PayPal dollars hosted on crypto databases that are the safer of the two, if not along every dimension, at least in terms of the degree to which customers are protected by: 1) the quality of underlying assets; 2) their seniority (or ranking relative to other creditors); and 3) transparency.

[PYUSD collateral] must be recorded on two separate days each month, or 24 times per year…these attestation reports must be prepared by an independent auditor. The only way to get vetted financial information about the assets backing traditional PayPal [accounts] is to read its audited financial statements, which come out just once a year. For the rest of the twelve months, customers are left in the dark.

The fact that one type of PayPal dollar ([PYUSD]) has robust protections while the other is only haphazardly protected, and only because the first is managed with a crypto database and not a traditional database, seems incredibly arbitrary to me."

The entire blog post is worth a read and is relatively short. It’s really interesting that the stablecoin regulations have ended up creating a safer asset for customers.

u/somedaysitsdark finds hope here

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This place, this garden that we have here, we grow hope in it. Hope thrives here. It’s actually difficult to find places where hope grows, and many of us don’t even notice it.

Week #46: December 8, 2023

Livestream Recording | No POAP

Upcoming Guests

The morning trinity

View on Reddit →

u/0xBOBA

Ethereum

u/usesbinkvideo

88,620 hodlers subscribed (+18)

u/FrenktheTank

$2377,80

u/TimbukNine

0.0548

u/Mirved

Number go up!

Weekly Haiku: u/Jey_s_TeArS

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Harvesting the fruits,

Showing them bankers the boots,

Through fire and lawsuits.

Shitpost of the week: u/Itur_ad_Astra

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Just imagine. ETH flips BTC in the span of a few months.

Then Saylor comes out and announces that he slowly unloaded his position and converted it to ETH.

Million.

Dollar.

Validators.

u/superphiz shares news of a major bug on Binance Smart Chain and what it means for Ethereum

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Binance Smart Chain may have entered a fork condition because of a bug introduced into bsc-geth.

https://twitter.com/superphiz/status/1730239018619613667

I’d like to draw your attention to what this COULD mean for binance chain, and why it’s important for us to learn from it. To be clear, I didn’t study the binance incident, I’m taking a general lesson from what MIGHT have happened, and definitely editorializing to hammer the point. Please don’t tell me I’m wrong about the incident, I’m applying this to our chain and I don’t care about BSC.

It looks like bsc-geth, a majority client on Binance Smart Chain could have introduced a bug that was enshrined in the chain because bsc-geth is a majority client. bsc-erigon has been unable to follow the new canonical bsc chain because it did not accept this bugged version of the bsc chain.

There are two potential corrections:

  1. Introduce the same bug into bsc-erigon and make the wrong chain the canonical chain (with minimal disruption in the chain, but maximum social disruption)

  2. Undo/Redo/Slash/Roll-back bsc chain to correct the error in the chain and move forward with a correct state, but resulting in devastating chain consequences.

This should be a HUGE red flag to Ethereans that solidifies our concerns about client majorities. If geth introduced a bug into our execution layer we’d be in the exact same predicament.

How do we prevent it? By using minority clients, EVEN if they’re more buggy and/or less performant.

Why? We have about 4.5 execution clients right now: geth, nethermind, besu, erigon, and reth (rust Ethereum). If each of those clients has ~20% - ~25% of the share, ANY one of them could fail or introduce a bug and the network will shit a brick but keep going on the right chain, essentially falling to 75% efficiency until that bug is fixed in that single client.

AS IT STANDS, geth has 84% of the execution chain market share. If geth introduces any bug into the chain, it will become the canonical chain, and the other 3.5 clients representing 16% of the chain will just be ignored.

THIS is why client diversity on both the execution AND consensus layers is so important. See https://clientdiversity.org/ for more info.

If you’re not familiar with the design principles of Ethereum, one point you should know is that in Ethereum, the spec leads the implementation, the implementation doesn’t lead the spec. This can take awhile to understand, but it essentially means that we design the chain carefully, then write code to support that spec; we don’t write production code and then try to write documentation explaining what that code does.

u/eth2353 shares concerns about Coinbase’s staking ecosystem

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Coinbase announced support for partial ETH staking through the Coinbase Wallet in their blog yesterday. While this is great for enabling access to staking yield to more people, in the same blog post they openly admit they only use Geth as their execution client (not sure if they ever confirmed it like this before, but everyone kind of knew). As the largest single staking entity (running around 15% of staked ETH) this is incredibly irresponsible behavior and they should be called out for it. I believe it is at this point in time a bigger issue than Lido having about 30%.

If you have your ETH staked with Coinbase, move to a better alternative for the network (e.g. Rocket Pool / StakeWise V3 / …). Reach out to Coinbase if you’re a customer. They have had so much time to improve their operations yet chose not to so far.

I think Coinbase is doing great things for the crypto ecosystem in general, especially in the US, but this is something that just needs to be improved and there is no excuse not to. They could almost single-handedly lower Geth’s dominance to a point where it’s a non-issue. It is currently believed to be around 80-85%, take away Coinbase’s 15% and we’re almost below 66% which is the bare minimum we need to reach to be safe from supermajority bugs.

u/lawfultots has the latest from the Gemini Earn bankruptcy case

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Pretty big week for the Genesis(/Gemini Earn) bankruptcy, TLDR is that the judge has approved them to move forward with a vote on the recovery plan. If the vote passes in January people will start getting their assets back.

https://www.gemini.com/earn

I haven’t been able to find any details on the % recovery users should I expect from this deal, expect that to come out in the following weeks.

One thing I’m curious about is the the composition of the assets that are owed, and the composition of the funds Genesis/DCG have on hand to fund this recovery with. Anybody know the breakdown of what assets were tied up in this bankruptcy as far as USD/stables/ETH/BTC?

I’m wondering because there are billions tied up in this bankruptcy and if they had to exchange a significant amount of cash for ETH/BTC that could be meaningful buy pressure in crypto markets. Although I think a significant chunk of what they are providing is GBTC, and I suspect a large proportion of assets owed are USD/stables so I doubt its that big of a deal.

u/Revanchist1 went camping, hence the bull run

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I went hiking at Zion National Park in Utah for the last week. Landed back last night, and woke up to this beautiful pump. I should have known ETH was waiting for someone to be out in nature to pump. Here are some poorly taken pics.

You’re welcome.

First hike we did was the Angels Landing hike, which was surprisingly easy despite all the reviews saying it’s one of the harder national park hikes. The Chain section was exciting and was the most fun I’ve had hiking.

Utah is such a beautiful state and everyone was very kind to us! Will definitely try to visit again to see the other national parks there.

u/edmundedgar educates us on some Reddit scammer tactics

View on Reddit →

Crypto scammers really seem to have upped their bot game lately. Previously you’d usually have 10s of upvotes on a scam post. Now we’re routinely seeing hundreds, for example this comment posted 9 hours ago on a dead ethstaker thread has 200 upvotes.

You’d think reddit could detect stuff like this but apparently no.

[Scam comment] https://reddit.com/r/ethstaker/comments/12srco7/rocket_pool_vs_lido_vs_stakewise/kbluf57/

u/EvanVanNess shares his take on the moderation of the Ethereum subreddit. With some great follow up replies

View on Reddit →

re: “let’s just clean up r/ethereum”

It’s probably fair to say that I hold a decent bit of soft power in r/ethereum policy, as I’m the longest-tenured moderator who does any modding, plus I literally was 98%+ of all mod actions in 2018-2019 until I added twigwam. Most of the mods are inactive, even the ones who have been added recently.

As the above may suggest, I care about r/ethereum, even gave an entire EthCC speech on it once upon a time.

i’m also from the time when everyone in Ethereum was angry about r/bitcoin censorship tyranny by Theymos. Even mild mannered people you might not expect like Phil Daian. Early Ethereum was quite fervent about free speech on Reddit.

Then came the DAO fork, and I got censored a few times for things not even close to being censor-worthy (in my view) though it was an emotional time for everyone and some temp mods had been added. I wasn’t a mod then. IMHO the censorship was part of what led to ETC. We didn’t feel heard.

fundamentally r/ethereum is never going to go back to being the way it was. We don’t have the tools necessary, and the deeply technical community will never come back. Ethfinance exists, and most of y’all prefer to hang out here, rather than there. Ethereum is magnitudes of magnitudes bigger than when people first started complaining about the quality of r/ethereum declining in 2014.

u/-DarkKnight shares a lesson they learned the hard way so that you don’t have to

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These few weeks when the market has been pumping is making me really sad and anxious…

Here’s my story,

I joined 2021 bull, and bought BTC, ETH, and various shitcoins.

Thankfully quite early on in late 2021 I learnt about ETH with the upcoming merge.

Sometime around 2022 I coverted all my positions to ETH, but with the bear I had already lost a considerable amount of money. I then started buying more and at its peak in mid-late 2022 I had managed to save 24 ETH - all my life savings.

Then after the FTX crash I lost more in fiat terms, and I started taking more riskier bets. I tried trading LTFs and lost a lot of ETH. This made me irrational and I started converting ETH to Alts, first sound ones such as RPL, but later as I tried making back what I lost I started taking stupid and risky bets by coverting my stack into shitcoins hoping I can try and get back what I lost.

This was it, I lost the majority of my stack here.

This was a very expensive lesson for me not to trade. I dont think I can stomach buying anything ther than ETH now. Now I’ve started to accumulate with a measly 1.6E so far but the price rise is making accumulation even difficult 😢

I hope this was a useful lesson to you all as it was for me. Wanted to warn others here not to thread the same part I did as CT and seeing others with huge profits can make you do risky things.

u/PhiMarHal warns of a potentially widespread vulnerability

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Certain thirdweb contracts deployed before the 20th of November were vulnerable:

https://blog.thirdweb.com/security-vulnerability/

thirdweb is a framework for low-code smart contract deployments. I’m not sure how many projects use them, but they’re a name that comes up often in the dev spheres. I’d guess the less technical projects are more likely to be users here, NFTs moreso than DeFi.

Building code abstractions in web3 is no small task. The more flexible you make your framework, the more attack vectors. Catastrophic bugs cannot be patched on a whim like in web2.

edit: we might get an idea of the vuln in question, even without being programmers, by checking the common dependencies in the affected contract list. I’d guess it’s tied to the ERC2771 upgradeable import, which has something to do with metatransactions. Maybe something allowing an exploiter to pose as a trusted relayer? I would love to understand enough to know.

u/im_THIS_guy reflects on previous ratio struggles and prepares us for a rough ride ahead but eventual payoff wwhile, u/696_eth focuses more on fundamentals

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u/im_THIS_guy:

If you think this is bad, the first time BTC hit $44k, back in early 2021, the price of ETH was just $1770.

BTC had already more than doubled its prior ATH, while ETH was barely above its prior ATH.

This sub was losing its shit. ETH was dead. Then, things got worse. 6 more weeks of ratio bleed. The price of ETH dropped 10%! while BTC kept pumping, up 17%. How incredibly demoralizing.

Then something interesting happened. Over the next 6 weeks, BTC was flat and ETH pumped 365%! Oh my.

This market will wear you down. You’ll want to give up and switch from ETH to something that’s pumping. That’s when the rocket takes off. I guarantee you plenty of people switched from ETH to BTC right before the ratio popped from 0.3 to 0.8 that spring of 2021.


View on Reddit →

u/696_eth:

Honestly if someone has held both then they should understand how more valuable and practical ETH is and the ratio doesn’t even phase them much probably altho I’m the one who converted majority of my BTC stack at around 0.067, so yes I’m underwater on that decision, for now but not forever.

No matter the ratio my ethereum printrr stil goes brrrr.

No matter the ratio I can go ahead and get loans within minutes and get liquidity for IRL without selling my assets and triggering a tax nightmare.

No matter the ratio there are 10000, hell probably even way more, different projects and amazing developments that are going in the ecosystem that I can go and explore.

No matter the ratio the community has so many interesting topics to talk about between themselves.

No matter the ratio there are way more opportunities that exist and show up for me in this ecosystem.

No matter the ratio I can get other assets such as NFTs, providing me with an alternative leveraged investment on my position.

No matter the ratio I can randomly get hundreds, if not thousands, of $$$ airdropped to me.

No matter the ratio I can go ahead and build on top of my assets that live on Ethereum.

No matter the ratio Ethereum captures my attention more than Bitcoin ever has.

u/MinimalGravitas shares their experience with voting in the latest Optimism Retroactive Public Goods Funding round and u/nixorokish shares who she voted for

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u/MinimalGravitas:

Finished with my Optimism RetroPGF ballot, finally! Allocated to a little under 300 projects (out of about 650 that passed through the initial filtering).

Honestly, this was a ludicrous amount of work, and I’m very glad we had such a long time to do it (4 weeks). The process of assesing and evaluating has probably consumed about 40 hours (rather than the 8 estimated at the beginning, lol).

Projects need to get onto 17 ballots to qualify for anything, then will they recieve the median amount from those ballots. To see which projects have got how many ballots so far check out:

https://www.growthepie.xyz/optimism-retropgf-3

It’s been quite sad to see the amount that some projects have felt forced to shill themselves to badgeholders, and also that it seems to have worked which will encourage more of it in the future. Just one example that I saw was Sonne, a fork of Compound, whose token holders clearly brigaded the OP Discord and now has reached quorum. How is a DeFi lending platform, with a token, a ‘Public Good’? I have no idea, but they are far from the only example.

Lefteris has been trying to point out that some of the projects which most quickly reached 17 ballots are things which really don’t need an extra injection of funds due to huge amounts of VC funding.

An example of this that I find particularly egrigious would be Synthetix, who not only received $20M in VC funding this year, but previously received 9M OP… of which they then used about 2M to give themselves a huge amount of governance power…

https://gov.optimism.io/t/synthetix-ambassadors-phase-0-delegation-2m-op-tokens/3726

… and then used that voting power to nominate their ambassador as a RetroPGF badgeholder:

https://snapshot.org/#/opcollective.eth/proposal/0x22d4c3ab56832de58c1774d1a0aeb61ba6dde8b16c0f8382f85d8935f3ee1f11

Synthetix are obviously huge in the Optimism ecosystem, and generate a lot of value… but I wouldn’t suggest they are the most worthy recipients of ‘public goods’ funding.

Anyway, governance is never perfect, Moloch is always present, and I’m sure we can learn and iterate over time. For now at least, I’ve done my allocations and so should have a little more time for commenting here again!


View on Reddit →

u/nixorokish:

Optimism RPGF round ends tomorrow - I have to cast my ballot - anyone want to tell me if I’m missing anything super important?

Focusing on things that don’t necessarily have an influencer for brand awareness - love Carl’s “Popular NPM packages” list, added a lot of those. And of course, staking tooling, infra, etc cuz Optimism doesn’t exist without Ethereum’s validators

Discriminating against things that have been well-known in the ecosystem for years but I can’t find significant progress that they’ve made in the past couple years… I find that some projects coast on reputation

Also added in some high-producing educators and data analytics providers

sidenote: I can’t vote for EthStaker cuz bias

special shoutout to u/minimalgravitas for the staking list!

Week #45: December 1, 2023

Livestream Recording | POAP

Upcoming Guests

Announcements

The morning trinity

View on Reddit →

u/5quat

Ethereum

u/usesbinkvideo

88,557 hodlers subscribed (+5)

u/FrenktheTank

$2092.06

u/TimbukNine

0.05432

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

A tale incomplete,

Where banks can not compete,

No one hits delete.

Shitpost of the week: u/seat-is-occupied

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altcoin nostalgia series, part 01: Oyster Pearl (PRL)

In this series, I want to take you on a trip through some of the most interesting shitcoins from the past.

Oyster Pearl wanted to revolutionize online advertising and give website owners an alternative and private way to monetize their content. The idea was that website owners could insert one line of code, and visitors would contribute their spare computing power and storage space to support the protocol. In return, they would earn PRL tokens. The data would be stored on the iota tangle. There was also a second coin called Shell (SHL).

PRL was extremely hyped in 2017. Right before the binance listing, one of the team members did some insider trading. The anonymous founder bruno block wasn’t cool with that and rug pulled the whole project, minting and dumping more PRL coins.

After that, some team members founded Opacity (OPQ) and airdropped tokens to PRL holders, the project also died. Bruno founded a new scammy project called Akoya (AKYE) and airdropped tokens as well. Of course it died. There were some mental health issues involved ($5,000 banana). Apparently, he was caught on a yacht with safes full of gold bars. Amir Bruno Elmaani got 4 years in prison for tax evasion.

u/PhiMarHal shares a deep dive on the Kyber exploit

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Deep dive by Doug Colkitt on the Kyber exploit: https://twitter.com/0xdoug/status/1727613541115429314

Careful manipulation to make the pool believe it has more liquidity than it does, then extract real funds through this phantom liquidity.

I don’t want to kick anyone while they’re down, the Kyber guys are good devs working hard and let’s hope for a good resolution. FWIW the hacker has signaled through blockchain messages he would be willing to talk today. https://etherscan.io/tx/0x7a8912583520304ce2364fa165dafe94461a91ab2dcf45dab942e296594dc40a

But, musing about security in the abstract… I have to say, I felt for a long while the engineering in Kyber seemed overcomplicated. I once got stuck in one of their farms, and without the team solving it for me, I would have been screwed. This is different from Uniswap or Aave where you can figure out the contracts on your own as an intermediate user.

Complex protocols have greater attack surface.

Sanity checks like 1-block delays on TVL sensitive actions seem like low hanging fruits to avoid catastrophic exploits. Kills flashloan abuse, for starters.

I get that those are tough calls, how do you implement such edge case checks without hurting genuine composability? But surely there must be some threshold of liquidity past which we have reasonable confidence no legitimate use would occur, because of slippage.

but then again, the concentrated liquidity design implies all of the liquidity in one tick can very well be a legitimate swap…

Basic x * y = k as per Uniswap v2 may have been capital inefficient, yet the simplicity was elegant in more ways than one.

I’m glad I don’t work on AMMs!

u/eth2353 shares Stakewise’s upcoming upgrade

View on Reddit →

Just wanted to let the good folks in here know StakeWise’s V3 launch is just around the corner. The V2-V3 contract migration proposal is live on their governance forum and the snapshot vote has reached quorum with 100% approval for now.

Their V3 architecture brings some big advantages, e.g. solo stakers can create their own (private if they like) vault and mint an LST against it. If you want to get a feel for what it will look like, I suggest you browse through the testnet vaults at https://testnet.stakewise.io/ .

It took more than a year since their V3 announcement to get to this stage and I’m proud to have contributed in a small way myself as well by adding remote signer support to their operator service.

Even though this post may feel like it, I am not in any way affiliated with StakeWise, I just appreciate all of the work that went into this and I haven’t seen this be discussed in recent days. This gives stakers who can’t stake at home a lot more choice and will hopefully help keep Lido’s power in check.

u/stablecoin answers some questions about Chainlink’s CCIP

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  1. Does this potentially solve liquidity fragmentation?

Basically it should unlock all possible liquidity on all chains if it integrates CCIP into the protocol functions, Synthetix (SNX) is doing just that for helping to launch sUSD liquidity products on top of Base and Arbitrum I believe. Like many things, protocols need to be built from the ground up or upgraded to support it.

  1. Does this effectively move the security from ethereum to chainlink? or would it be better to say it moves security from a lot of shitty bridges to chainlink which is arguably an improvement.

It more or less just replaces bridges and the biggest security improvement is you can remove honeypots that are the bridge contracts. No longer do you need to store all the assets into one place, with one potential vulnerability always looming. If you attack the Chainlink feeds/CCIP features it is going to be more like to having to attack all the ETH nodes to get your unsanctioned blockchain instruction in. Chainlink node distribution will help secure bridging as long as the feeds are also proven to be secure.

u/waqwaqattack shares the latest Lido fuckery

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Lido are up to fuckery again.

In this twitter post https://x.com/nero_eth/status/1728680630773575956, Nero shows how a lido node operator, p2p.org (run by a lido cofounder), has announced it will start waiting to produce blocks. There’s a function called ‘getheader’ that the block proposer is supposed to call at time = 0, but node operators have until time = 4 seconds to help home operators who might have latency issues.

By waiting to call that function, they will get up to 4 seconds more of mev into their blocks.

The impact this will have is they’ll further centralise the ethereum network to orgs who have the ability to still produce blocks while waiting the longest amount of time - home operators or decentralised services would not be able to wait so long because they’re more likely to fail in block production. People will go to services that give them the best yield in LSTs without thinking about the potential impact on the ethereum network.

Lido literally have a golden goose in their possession, but they’re killing it. It’s extremely shortsighted, and it might have horrendous impacts for the rest of us stakers.

Please speak out against this!

u/bagogel12 has an update from the KyberSwap hack

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KyberSwap fell victim to a sophisticated exploit amounting to approximately $50 million on November 23, as reported by rekt.news (https://rekt.news/kyberswap-rekt/) .

This incident involved an in-depth comprehension of the underlying code to exploit it (u/PhiMarHal reported already the technical details). The exploiter displayed a peculiar level of psychopathic behavior, leaving on-chain messages throughout the exploit to explain their actions. The final message they left was:

“Dear Kyberswap Developers, Employees, DAO members and LPs,
Negotiations will start in a few hours when I am fully rested.
Thank you.”

KyberSwap chose to extend a 10% bounty to the hacker, with 90% intended for restitution.

What makes this incident even more disturbing is the fact that during the hack, a MEV bot operator was able to capture $5.7 M from Kyber by frontrunning the exploiter.

The deal has now been struck for the return of 90%, with the remaining 10% awarded to the frontrun bot operator (tweet). Morale does not seem to exist in the crypto landscape.

The situation draws parallels to the Euler hack, evoking a sense of déjà vu for those who have experienced similar events. Notably, the exploiter received a message from the origninal Euler Finance Exploiter wallet, shilling some meme coin (I don’t link it).

In the midst of difficult circumstances, it is important not to lose hope and to expect the best possible outcome. Christmas is soon. Speaking from the experiance as a victim of the Euler hack myself, navigating the aftermath won’t be easy.

I hope those among our community who have been impacted by the Ethfinancier incident can navigate through their losses with resilience (comments in the daily). Resilience and risk management remains a key virtue in the crypto realm. Remember, don’t put all your eggs or ETH in one defi protocol.

u/stablecoin shares news of EthereumGPT and u/johnnydappeth suggests one for ethfinance

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u/stablecoin:

Someone built an Ethereum trained ChatGPT for developers and stakers. Looks like you have to have an OpenAI subscription account to use it though, and they are currently paused from new signups.

I built Ethereum GPT, which was trained with the Consensus layer API specifications. If you’re a builder looking to access specific data or just have a question about staking, try my fren:

https://chat.openai.com/g/g-T3pQLJpwi-ethereum-gpt

X link: https://x.com/Butta_eth/status/1729088377700671798


View on Reddit →

u/johnnydappeth:

u/stablecoin‘s post today got me thinking about developing an EthFinanceGPT that can answer newcomers’ questions, respond to FAQs, dispel FUDs, and overall encapsulate the spirit of EthFinance to provide unbiased guidance. For those of you who don’t know, GPTs are specialized tools capable of retrieving facts from an external knowledge base. This allows LLMs to utilize that information to generate answers. They can also follow instructions provided by the creator and have API access, as well as internet access, including an image generation tool.

We have a plethora of content that can serve as the knowledge base, such as the Daily Doots, the EVMavericks Discord, ETF forums, blog posts by prominent users, educational content, discussions on decentralization, tokenomics, technical analysis, Twitter posts, and even memes. A curated knowledge base can be provided to a community-funded GPT, and perhaps even a Reddit bot could be created to interact with this GPT through posts.

Unfortunately, I only have time to read through the dailies, so I won’t be able to spearhead this effort. However, if someone else is interested in pursuing this, please feel free to do so.

u/ajmonkfish brings very sad news from a long time contributor and later explains how it happened

View on Reddit →

Welp guys, it’s been fun, looks like my private key was compromised and my wallet was drained. No idea how my key got compromised.

About 7 hours ago (fast asleep at this time) some crook opened up my wallet, drained my aave position and absconded with about 15 eth and 600 dollars worth of shitcoins.

That’s all I had left.

https://etherscan.io/address/0x0d06340e5424EA2DE37E5A1d2f410f6A0b40D58a

RIP me.


View on Reddit →

Thank you all very much for your kind words and advice.

In case you missed my earlier post, my wallet got drained by a nasty man and unfortunately I had 15 eth in an aave position and about 800 dollars of shitcoins I had recently fomoed into.

Gone, never to be seen again.

I have a separate PC for crypto stuff and I thought this was enough to keep me safe.

Wrong. So very wrong.

I clicked on a dodgy “update chrome” link on my work laptop yesterday, not realizing that I had sync turned on in chrome, meaning metamask (and my seed phrase vault) were on there.

That’s the only way I can think this has happened.

Please, use me as a cautionary tale and be more careful with your crypto.

Here’s the address that got drained in the wee hours of this morning and when I was getting my kids ready for school/nursery.

https://etherscan.io/address/0x0d06340e5424ea2de37e5a1d2f410f6a0b40d58a

Feel free to do some sleuthing, it’s beyond me I’m afraid.

Peace.

u/timmerwb reminds us how tried and tested cold wallet seed phrases are for security and u/theethmeister shares their own diversification strategy for secure storage

View on Reddit →

u/timmerwb:

At risk of tediously adding to the security discussion, risk is always an interesting subject. YMMV but in the several years I’ve been involved in crypto, IIRC, among all the countless losses, hacks, exploits, compromises and thefts that have occurred, of between 4 and 9 $figures in value, (and some of which have sadly involved members of our community), I don’t believe a single one has involved the loss, discovery or theft of a physical passphrase, including a physical hardware wallet. It’s worth adding that during the Ledger leak, which included numerous active names and address (lol - it’s still hard to believe), there was mucho concern about wrench attacks. Again, AFAIK, not a single compromise occurred directly because of that leak, and not a single physical theft was attempted (although clearly email addresses got phished to death after that).

As such, the risk of loss is overwhelmingly associated with getting phished, or (usually mistakenly) storing credentials, including CEX accounts, on hot computers. For most people, best practice and good basic digital hygiene will ensure your crypto is safe.

Remember that security is an on-going process. If you create a new wallet, generating the seed or passwords is not the first step. You should already know what the wallet will be used for, the associated risks, how you are going to secure it and how you will maintain that security. Don’t be tempted to “jot down” the seed temporarily etc. Give yourself time to learn and understand the process before committing funds. Stay safe out there.


View on Reddit →

u/theethmeister:

To add to the discussion below about crypto security, my personal approach is to have about 20% in CEX and the rest split up among several (hardware) wallets, so if any single wallet gets compromised I can somewhat triangulate the cause of the hack. If you use Trezor you can create multiple wallets on one device using the passphrase function which in concept should protect you if your main seed phrase gets leaked or discovered.

If you do need to use Metamask you can create a separate wallet solely for your Trezor and don’t have to store your seeds in an online vault. This should maintain the security of the hardware wallet while also allowing interoperability with dapps. Unfortunately Metamask seems to be the most compatible with dapps but because it’s the most popular is a highly visible target for hackers/viruses.

Lastly, as to my CEX allocation I know “not your keys, not your coins” but having a sizeable amount gives me a higher transaction and withdrawal limit. Also if I need to liquidate assets quickly I can do so on my phone without having to tinker with my Trezor. Knocks on wood I haven’t had to re-verify my account and perform KYC for the past 4 years. Always make sure to whitelist your withdrawal addresses.

u/ro-_-b is bullish on Ethereum’s soul

View on Reddit →

A cryptocurrency is more than just an economic platform. Even though it has properties as some commodities it’s not just a commodity. Ideally there is a purpose, values and culture.

Beside the protocol we need the social consensus. People that keep up the values such as decentralization. In that sense it’s like a religion. People need to believe in it. And in order for people to believe certain properties need to be satisfied. And when you believe in something you naturally start to evangelize.

Whatever Vitalik has said in public was genuine and well thought through. There are so many people that speak for Ethereum and hold up its values. Whenever somebody of these does something harmful the community holds them accountable.

In my view the same standards are not met by other cryptocurrencies, definitely not by Soylano.

Ethereum has a soul. It’s more than just an ultrasound decentralized smart contract platform.

And for these reasons it has cultural relevance. A tokenized meme very often derives its value from being on Ethereum. And everyone who creates digital art wants to have it issued on the most pristine platform.

I’m certainly among the worst people to keep up these values. But I do rest assured because I know that there are many other people better than me precisely doing that and they’re doing it very well.

So all this cultural relevance, this community ethos and these people that have conviction and believe in Ethereum make me bullish long term. Because in the end precisely these values is all we need to succeed. Roar 🦁!

u/DegenKoloToure updates on the Kyber exploit and u/_WebOfTrust shares the latest message>

View on Reddit →

u/DegenKoloToure:

Kyber exploiter:

"Dear Kyberswap Executives, Employees, Token Holders and LPs,

I said I was willing to negotiate. In return, I have received (mostly) threats, deadlines, and general unfriendliness from the executive team. That’s ok, I don’t mind.

I have prepared a statement concerning our (potential) treaty. I plan to release it on Nov. 30 at Noon UTC, sharp.

Under the assumption that I am treated with further hostility, we can reschedule for a later date, when we all feel more civil. You need only say the word.

If not, we proceed as planned on Nov. 30.

Thank you."

https://etherscan.io/tx/0x5c27d8e9248608f36b028a945f3d6ff31244ab45eb89e1d1a631f608a36454a1


View on Reddit →](https://reddit.com/r/ethfinance/comments/187bfcu/comment/kbe94lv/)

u/_WebOfTrust:

Okey…this is a must read. New message from Kyber exploiter, their demands are not like others we have seen and interested to see how the story developed.

Between Hacker and Kyber, users funds are at stake.

https://twitter.com/TheDEFIac/status/1730196414154608785

Edit - c +v below

To ALL relevant and/or interested parties,

I thank you for your attention and patience during this uncertain time for Kyber (the protocol/DAO) as well as Kyber (the company). Below I have delineated a treaty for us to agree to.

My demands are as follows:

Once my demands have been met, I will provide the following:

This is my best offer. This is my only offer. I require my demands to be met by December 10, otherwise, the treaty falls through.

Additionally, should I be contacted by agents from any of the 206 sovereignties, concerning the trades I placed on Kyber, the treaty falls through. In this case, rebates will total to exactly 0.

Kyber is one of the original and longest-running DeFi protocols. No one wants to see it go under.

To assist with this transition of leadership, I may be contacted on telegram: @Kyber_Director

Thank you.

Week #44: November 24, 2023

Listen Live | POAP

The morning trinity

View on Reddit →

u/LeagueGreedy

Ethereum

u/wordlemcgee

$2070.65

u/usesbinkvideo

88,530 hodlers subscribed (+5)

u/FrenktheTank

0.0554

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Flash loan imbiber,

Liquidity in Kyber,

Oracle briber.

Shitpost of the week: u/Vandelay101

View on Reddit →

Just finished a nice run through the woods. It just occurred to me that I am front-running the pounds I am about to put on tomorrow, the next day, and the day after that. I’m also mulling over my turkey fulfillment thesis and adjusting my risk appetite accordingly.

u/eetherway asks a great question about how we feel about different UXs

View on Reddit →

To all the experienced blockchain users: As we witness improvements in user experience, particularly in wallet interfaces, do you feel apprehensive when using wallets or dapps that offer a more streamlined, Web2-like account creation and management process?

I’ve noticed that some users, especially in the Influence community, are apprehensive about creating new accounts or using accounts that are set up with an email.

Both Argent and Braavos, the current wallets on StarkNet, that are users interact with, utilize account abstraction, enabling and introducing features that I believe are crucial for bringing the next billion users to blockchain. Yet, this ease of use can sometimes be met with skepticism from existing users. I’m keen to hear your perspectives on this.

u/Samueth_Peapks is ready to see some non-speculative adoption

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Should we be surprised at the speed with which the ecosystem has encountered a new wave of toxic tribal bickering? No, because compared to the end of the last cycle nothing has materially changed. There has been scaling progress but it is not finished by any means, and e.g. UX is as trash as ever etc.

ETFs are said to be around the corner, but the type of demand they represent is the same kind we are familiar with. Speculative, cyclical demand. Only now it’s in a tax free wrapper! Don’t get me wrong, the level of incremental increase in demand could be substantial, but i contend it will not change the dynamics of the crypto ecosystem. So if nothing has changed, we should not expect the nature of the next cycle to have changed. One slight difference is that at this time, the remaining market participants are certainly feeling less flush than they were in the heady days of 2021. Hence the rabid zero sum thinking we see amongst us (well, mainly twitter). At this point we all know the drill, some new and useless protocol or project will make 1000x returns for the few people who rolled the dice early, and many more will volunteer themselves as exit liquidity.

Crypto has absolutely nailed the speculative use case; we do not need, and personally I am not interested in, any more. Games, quests, ponzis, whatever it is, it is all ultimately a waste of time, representing only a desperate grab for each others capital. What I think we crave, and what I am sitting here quietly waiting for, is utility. Yes, this is a 2017 era discussion, but nothing has changed since then. Large, non-speculative, non cyclical, fucking boring. Something that you would do anyway, even in a bear market, or if fees have increased a bit. Something that does not require a funny name for people to use. Something that companies or people will use due to economic gravity rather than hoping number goes up.

Are these use cases possible? I believe so, so I guess I was incorrect to say that I am done with speculation. I’m still hopeful that blockchains can be used for e.g. supply chains, or something else like that. Why? because with something like this, crypto potentially has the ability to translate economies of scale away from large corporations, and to empower small businesses. Fewer bosses - ace! Not zero sum - ace!

Not all problems need to be solved to open up utility. E.g. a business use case will rely less on UX than a consumer use case. The type of demand I am talking about probably only cares about a few things (assuming the chain being used has the requisite functionality), and secure block space is premier amongst them. Ethereum represents the best potential holistic solution to all of these problems, probably via some L2 solution, primarily because of the strength of its network. Network effects are powerful, if they were not then twitter would be 6 feet under by now. These reasons are why I have read the daily most days since early 2021. I am interested in client diversity, network health etc. Things of that nature are the means by which we create fertile soil for the future. And when the time comes we’ll be glad that infrastructure has outpaced the current level of demand in the system.

u/superphiz shares the “Stake from Home” Gitcoin collection for those looking to donate to public goods which keep the beacon chain decentralised

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Gitcoin invited me to develop a bundle for Grants Round 19, and I developed the Stake from Home bundle. These 14 projects make contributions that empower individuals to run nodes and stake from home, and I strongly urge you to make a donation on gitcoin to the bundle. I’m familiar with all of the projects enough to vouch for them (on varying levels), and I’m excited for each of them to succeed.

If you don’t know how gitcoin funding works: It’s based on a concept called “quadratic funding”, the simple premise is that the number of individual donors guides matched funds more than the amount anyone gives. So 100 people who give $1 each gets matched A LOT more than 1 person who gives $100. The moral of the story is that many hands make light work, so please go donate.

u/haurog shares how his opinion on Lido has changed over time

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Yes, economic incentives generally favours centralisation and monopols. That is the way things go. Societies try (or not) to find rules and regulations to fight against this general flaw in most modern economic systems. There are a lot of examples where societies failed to do so and have now very few monopolistic suppliers they cannot really break up anymore. There are also examples were societies managed to stop monopolistic set-ups in their track and these then are generally better off compared to societies which did not manage to do that in these specific industrial sectors.

The case with Lido, I did not really have an issue with them for a long time. My simple approach was “If they can break Ethereum it was meant to be broken”. I did not judge them to be a bad actor in the space.

Nowadays I see them as a pretty ruthless actor in the space strategically gobbling up key figures and projects that make them dependent on Lido and do their bidding. At the same time they are spreading false narratives about why they are destined to win. Like “liquidity begets liquity” which automatically leads to them winning. What actually happens is that in the background they have actors (Karpatkey anyone?) making sure that steth dominance is not really threatened. They preach open and free markets, but actually do backroom deals to achieve their goal.

They also spread the narrative of being the wall against CEX staking and funnily mention a time where CEX staking had more inflow than them as the reason for it. Actually, this was as far as I remember a just a 2 weeks period in spring of 2022 where this was actually true. Again they are gaslighting the community.

They made so much money in the last 3 years, which is understandable because it is a good product. But now they can simply direct their faucet at anyone they want and more or less buy them, or a project. This is especially dangerous during the bear market where everyone is looking for funding.

Same with the current proposal, in the first sentence the state decentralisation is the goal, but the rest of the proposal is a direct attack on the current relatively okayishly decentralised staker landscape. They love decentralisation as long as it is under their control…

Do I think Lido should be slashed rather today than tomorrow? No, definitely not, but I see them as a threat for the Ethereum ecosystem as they do not even try to hide behind a nice facade anymore.

u/austonst sums up the last day of DevConnect

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Devconnect Day 9 (Yesterday)

The last day of Devconnect! The schedule does technically extend through Sunday, but that’s just the final day of the coworking space and the ETHGlobal hackathon. I had considered doing a little bit of sightseeing in the morning, but it was raining decently hard and I would have been pretty pressured for time, so I decided against it. Instead I just went straight to the day’s main event: censorship.wtf .

As you might expect, censorship.wtf was all about censorship: what are the problems and potential solutions, particularly as it pertains to Ethereum of course. The day was literally packed: between 11:00 and ~18:00 there were non-stop 20-minute talks scheduled. Not a single break, you just had to pick which talk excited you the least so you could cut out some time for a bathroom break and snacks. Using acronym “censorship resistance”=CR The content was mostly pretty good:

I guess I’ll do a final recap tomorrow. Flying out first thing in the morning back to the other side of the planet. Going to be a long trip.

u/Fast_Contract explains why they’re running RocketPool nodes

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I think block/mev rewards will be crazy when the next bull starts. If these etfs really are approved, and tradfi money starts flowing in, I want to maximize my chances of winning that lottery. Solo staking I had a 96% chance of getting a proposal every 2 months. Now I have that same chance every 2 weeks. Sure joining the smoothing pool is probably safer, but holding eth as is, is already a lottery ticket to me so why not really play it.

I also re-evaluated the reason I’m in eth, and that’s decentralization. I think rocketpool is an essential key to that. By dividing my stake up into as many 8eth pools as I can, I’m allowing a few hundred eth from other people to also be staked. Looking at reth mints, the demand is definitely there for reth, and with the houston upgrade, I think the demand for node operators will grow. I kinda hate Lido. I think they’re everything that’s bad about crypto and capitalism. Un-restrained growth perhaps at the expense of the entire ecosystem. Rocketpool is the opposite of that and I think more people should support it.

The “stake eth on behalf” thing in Houston is particularly interesting. I can see DAOs finally putting their eth treasuries to work. Also the rpl rewards rework is interesting, because it will hopefully reward/keep those at lower collateral rates above that 10% line.

51% of rpl is staked. The only real sell pressure is from node operators getting out. I thought that cascade would happen weeks ago, but everyone seems content to keep their stake. Even on rewards day it seems like most rpl just gets restaked right back into the system…

If I’m interpreting things correctly, most of the remaining un-staked RPL is rpl v1. RPL v1 has basically no liquidity, no movement. These people are just sitting on their rpl, they haven’t even converted to v2? That kinda removes a lot more supply from the market in my mind…

u/Itur_ad_Astra thinks we’re stepping into the next era of crypto.

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Fellow Ethfinanciers…

It’s weird that the market did not move today. I’d expect one last dump as a farewell. Oh well, there’s plenty of time for that later. It’s strange, because I feel what we witnessed today, was the end of the Wild West of cryptocurrency. The Napster Era is over, and soon, with the approval of the ETFs, the banking products, and the inflow of crypto “users”, the iPod era will dawn. Nicely packaged, user friendly crypto products, ranging from tokenized stocks (registered and KYC’d strictly, of course) to JPMorgan limited edition Apple^^TM NFTs, barely holding any of the values that make crypto what it is.

The markets will soon start going up, much higher and faster than most anticipate, and I truly believe that Ethereum will be one of the winners. Droves of tourists will soon follow. Most of these people won’t have the slightest idea what “keys” are, how you swap on DExes, or even what a smart contract does (It’s probably something with AI in it).

Those of you that believe in something more than making money, remember why crypto exists. There are some values that are a net good for the world and need to live. The more of those carry over to TradFi, the better we’ll all be.

I might be neither a crypto OG or an Ethereum veteran, but it has been an honor going through this bear with you.

Onwards!

u/RickandMowgli shares a collection of thoughts on regulation.

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Just a rambling vibes take here. 1) CZ has always been a bad actor in crypto. He proposed rolling back the Bitcoin blockchain (doesn’t matter your thoughts on btc, this is a huge red flag of not being decentralization aligned). BNB chain is a centralized scam vessel. He’s clearly been commingling funds and pumping bnb, been calling it forever and you don’t need a lawsuit discovery to see it.

So overall this is a good day for crypto. SBF and CZ characters are hugely damaging to the space. Frankly the CEX world is the 1 place where SEC SHOULD be active and cracking down to make sure FTX like theft of user funds never happens again.

They are also attacking kraken and coinbase for “unregistered securities” which is complete nonsense.

Let’s remember what these securities laws are meant to do. They’re meant to provide transparency to protect investors. Instead we’ve gotten onerous requirements not at all designed for the modern characteristics of crypto entities that has massively stifled innovation and investment especially in the US.

Everyone remembers ICOs negatively because they were so boom bust but actually tons of innovation came out of them and it democratized access to super early stage investing to the crypto community. Now after the harsh and chaotic securities enforcements pretty much only VCs are getting super early stage tokens. It’s already a reproduction of the private company market where VC has locked out the huge gains from early stage companies from retail investors.

The best world would be where the SEC protects us from SBF CEX and only comes down on true fraud (bitconnect, luna, etc) in the decentralized space. while allowing more experimental types of daos, etc to exist (especially when they are inherently transparent like many already are).

u/djlywtf shares their experience at DevConnect

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devconnect istanbul is my first crypto related summit, and due to my location it’s also my first experience meeting with people in crypto community irl

devconnect was huge, filled with people of different backgrounds and interests, startups and independent developers that share their knowledge and vision to different problems. i met many interesting people, such as nice people from zksync (hello jack hamer, albiona, alex gluchowski, sasha vlasov, and many others whose name i didn’t ask), cool independent infrastructure builders that i’d rather keep anonymous, ilia polosukhin from near, guys from EF (by the way u/domotheus we didn’t even shake hands wtf) and rollups teams. i listened speech of many popular founders and devs - vitalik, kartik talwar, sandy peng, jordi baylina, etc etc

it was so interesting to listen to all these speeches despite the fact that i already knew a lot of what they were about :P it’s all about people that have fire in their eyes and are ready to share all their knowledge to everyone at any cost

i also participated in my first hackathon. unfortunately i got sick in the first day and had to code in the hotel, so i missed many opportunities such as finding help from sponsors (yo zksync your compiler is terrible fix it pls) and generally being inside of this unique work atmosphere, but i still made something. in fact i spent 20 hours straight on coding at my first hackathon ever solo without any sleep while being sick af so i think the fact that i at least impressed judges is already somewhat achievement :)

and all this is in the huge beautiful city of istanbul that charges you with emotions every day and hour. i walked like 25k+ steps there every day before devconnect started and i wasn’t even tired. people there are always ready to help you even when you don’t ask and don’t ask anything in exchange. prices in locals’ shops are always “negotiable” if you know your own worth xD public transport is really great with almost perfect coverage, istanbulkart is a great system that helps you to avoid so much brainfuck while travelling

all this showed me how boiling and energetic 24/7 the life in the ethereum community and made me even more confident in that we do everything right. that’s why i’m bullish!

u/CaptainOfTheGate describes more casual ways of getting privacy on Ethereum

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“Casual” privacy apps

Did you know that there are Ethereum apps that can give you a basic level of anonymity, without having to use a dedicated privacy app? Say you just want to keep people from knowing all your holdings by knowing your ENS name, these would work good. Not so good if you were doing something illegal, as a simple court order could reveal the connection between accounts.

The major apps in this category, I believe, are the StarkEx single-app rollups. You can deposit from one address and withdraw from another. Only the StarkEx operator can see that it’s the same person. For example, see Privacy on rhino.fi for their explanation of how it works.

There may well be other apps in this category as well (let us know if you’re aware of others). For example, I’ve read that ParaSwap allows different deposit and withdrawal addresses, though I don’t know if it’s equivalent to the StarkEx rollups in this regard.

You can see all the StarkEx rullups on L2Beat. Use Select stack to filter for just the StarkEx rollups. You can then click through to the individual projects to see how much TVL they have for the token you’re planning to anonymize, e.g. USDC or ETH (I believe dYdX has the most stablecoins and Sorare has the most ether).

Of course, you could use a regular privacy protocol instead. Tornado is sanctioned for US users, however, and others could be in the future, or maybe you just don’t want to appear suspicious by using a privacy protocol. I haven’t checked, but I assume Tornado still has the most volume. Some other projects I’ve heard about are: Railgun (a lot of mentions here recently), Aztec (highly regarded, but will be deprecated next year as they work on their programmable privacy rollup), Nocturne (new), Firn (sounds terrific but new), and Houdini Swap (seen mentioned here a few times).

Week #43: November 17, 2023

Livestream Recording | POAP Checkout

The morning trinity

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u/the-A-word

Ethereum

u/696_eth

0.054

u/Zeebrasurfer

1968

Weekly Haiku: u/Jey_s_TeArS

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Shorting looked so wise,

Yet it turned out otherwise,

Ether still on the rise.

Shitpost of the week: u/ToEthMooonGuy

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#To ETH Mooon!!! ┗(°0°)┛

u/superphiz reminds us of some critical bull market preparation

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You need to have a written plan about when you will take profits.

Print it out, sign it, and hang it on your wall as a reminder.

This is fun, but no one can predict what tomorrow might look like.

Most of all, don’t fall into the trap of people who would convince you to have diamond hands. They want you to be exit liquidity.

u/PhiMarHal laments on the frustrations of centralised services

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Every now and then, I forget how stressful centralization is. Mostly thanks to avoidance. With forgetfulness comes confidence, so I try again, and I’m quickly reminded of the cons.

I wanted to use Coinbase to hop from a rollup to another without paying bridge fees. Now they’re holding my outbound transaction hostage, with an enigmatic Pending. Contacting support nets me people escalating my problem to a “specialist team”, which is meant to email me but apparently not in a rush to do so.

What’s going on? Who knows. Complete black box. I suppose so are thirdparty bridges, in a sense… Yet I find the experience distinctively different. The dynamic changes when you use a protocol with a Discord channel where developers and knowledgeable users will interact with you. There’s more visibility into their processes than with a corporate company presenting you with an interface where nothing suggests the exact nature of the problem, and support is outsourced to a call center where employees might do their best but simply aren’t equipped to deal with the matter or deviate from a script.

I suppose that will be my booster shot against sending meaningful sums to a CEX, even as transit.

EDIT: followup, the transfer went through a few hours later. Whew!

u/the_statustician is grateful for this gift

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We are here, we are few but confident. This is crypto and it’s epic. This is generational craziness that is a unique opportunity.

We should be grateful for this gift.

It marches on even as Powell attempts to tighten and restrain.

It’s astonishing to watch, I am happy to be here. I missed buying many lows, I missed selling many highs. But my god the thesis is the same as before and don’t forget it…it is written in stone and it will not change for many many eras. It is beautiful and simple.

Insofar as the disintermediation of a middleman will return value to a party and counterparty, then the market demands that such innovation take place to improve efficiency.

That is why we are here. There will be many scams along the way, there will be lots of trial and error, there will be SBFs and Hoskinson’s. But we are here to rush gold in a gold rush for digital gold that will upend the traditional social and economic order.

Enjoy the ride, the big boys are coming.

u/austonst provides daily updates on DevConnect

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Devconnect Day 1

Greetings from Istanbul! I’m at Staking Summit to start off my week (and change) of Devconnect fun times. I’m not going to give as detailed a daily summary as I’ve done for ETHDenver, but hope to give a little insight into what’s happening.

Devconnect is a collection of independent events organized in the same week and in the same city. There’s going to be a general coworking space opening up on Monday and available through the week, but most actual events are only 1-2 days long. Staking Summit is getting started a little “early”, but seems to have gotten decent attendance.

Staking Summit has one stage with a series of talks and panels, a breakout area for occasional workshops, a lot of room for projects to set up booths, and a pretty nice spread of snacks. The event is advertised as being about PoS and staking in general, not just about ETH. I get the impression that some attendees are interested in staking as a financial vehicle, just as a place you can put capital to earn yield without caring too much about what it means. But not too much of that. Saw a lot of familiar faces already, met new folks too.

Most talks were kinda simple. A few things of note:

(Posted this an hour ago, looks like it got deleted somehow? Taking out the links in hope it gets through the filters this time… EDIT: Yep, this one worked. Reddit hates links to conference webpages apparently.)


Devconnect Day 2 Devconnect Day 3 Devconnect Day 4 Devconnect Day 5 Devconnect Day 6 Devconnect Day 7

u/Revanchist1 has some really simple pro-tips for DEx users to avoid MEV!

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Here’s some cool tips for people who may not know.

I mainly use the metadex swap by the DeFi llama folks.

https://swap.defillama.com/

Obviously don’t click my link and just start using it. It’s the right link but practice some safety and look for an official source.

It works by querying multiple DEX aggregators, comparing their quotes and gas costs and allows you to choose the best one.

They charge no fee, so when you make a swap you are getting the exact same result that you’d get from swapping through an aggregator’s UI directly.

As for MEVs and sandwich attacks, everyone making trades on chain should be using an MEV blocking rpc.

Find one here:

https://chainlist.org/?search=Eth

Not all are MEV blockers. The ones I know at a glance are - Llama, Flashbots, MEVblocker. whichever has the lowest latency for you.

It’s easy to quickly change rpcs on desktop and there’s no need to get sandwiched by Jared every time you want to trade shitcoins.

u/vvpan shares them and u/hanniabu fighting the good fight in another forum, explaining the usefulness of blockchain’s innovations

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In a thread about blockchain on Hacker News, a place with high level of blockchain skepticism (/u/hanniabu is there too fighting the good fight), somebody asked me:

Can you describe to me what the main point of “blockchain technology” is? What is there to innovate in terms of its core function?

I took the challenge to heart and wrote out this little post. I am worried that one cannot be exhaustive enough, but there it is.

* Transaction throughput

* Efficiency - allowing small scale players to participate in verification and block production.* Inter-chain communication - some networks are explicitly designed as connected swarms of chains (Cosmos and polkadot for example) and some are evolving in that direction outside of the protocol level (Ethereum). How one executes transactions that span the networks is an ongoing research topic.

* Privacy - how to execute transactions in private. How to attest that something is true, say that you have a certain credential, without exposing your account information. Blockchain has been why zero knowledge (and now homo-morphic encryption) cryptography are becoming an active field of research.

* Identity, authentication, account recovery. - these tie into cryptography but generally research on applied cryptography with good UX. For example the first time I’ve seen social-recovery accounts with any amount of usage (now a feature in Apple accounts) was in a blockchain application.

* Monetary research - far from everybody involved in crypto believes that a fixed-supply rare item makes for good money. “Fiat” money is basically a “token” with governance attached to it. This has lead to a wave of experimentation with other forms of tokens - ones that are algorithmically tied to other assets, ones that are backed by an organization, local currencies, etc.

* Organizational research - since smart contracts can effectively be transparent community banks there’s has been a plethora of experiments with building organizations that manage their own treasuries. Horizontalism, organizational transparency and cooperation is something that’s been at the core of many crypto projects, the idea being that something cannot be both a reliable public good and controlled by a single party. It’s not an easy task, but some cool organizations have come out of this. For an example look at pocket: https://forum.pokt.network/t/messari-pocket-dao-exploring-proof-of-participation-governance/3857

In general, even if the blockchain experiment will fail it has given the world an ideological and technical boost.

u/SeaMonkey82 is still the unsung hero tinkering on the testnets

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Daily Holesky:
Reported a logging bug with Lighthouse and sproul had already created a PR to fix it.

I’ve been playing with the stakelocal grafana dashboard more, and continuing to provide feedback to metanull. One key configuration change I had to do to tone down the spamming of errors in the syslog was to omit the txpool module from ethereum-metrics-exporter for Nethermind and Besu. This is because Besu doesn’t support txpool_status and ethereum-metrics-exporter doesn’t know how to handle the integer values that Nethermind returns for txpool_status. I’ve created a GitHub issue for this. Another conundrum I ran into was that the external validator and address links were working fine on my mainnet machine, but on my testnet machine, every / in links was being changed to %2F rendering them broken. It took me a while to realize that I had used the .deb install method for grafana on the testnet machine instead of adding the repo where it stays up-to-date, so grafana-server was still on v9.5.1 instead of v10.2.0. Upgrading to the current version fixed the issue.

Something that was brought to my attention once I had the dashboard set up for all supported client pairs is that erigon is failing to honor the --maxpeers flag, so I reported that to their team.

u/Fiberpunk2077 is trying to understand the implications of EIP-4844. and u/djlywtf has a great reply

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u/Fiberpunk2077:

I hope they don’t mind, but I must summon the great minds to help me understand the implications of 4844: u/domotheus u/swagtimusprime u/Liberosist

I asked some questions a few days ago around this, but I still don’t understand what 4844 will do to L2 smart contracts and the data they hold with the ~18 day pruning.

To my very basic understanding, once 4844 goes live, rollups will use a new transaction type (blob) to commit the rollup data to L1 (instead of calldata). However, by using the blob transaction, the rollup data may be pruned/purged after ~18 days (whether it actually will or not is another thing). I’ve read that this blob data is meant for data availability, not data storage, but I don’t understand what that means practically.

So this leaves me with many questions of what this means for smart contracts on L2’s, and I can’t get my mind around it. I think perhaps I’m getting confused between historical blob data for any given moment in time and storage of the current blockchain state (e.g., does the L2 store the current state?). Hopefully these dumb questions will help clear it up for me:

  1. Post 4844, if I deploy a contract on an L2, will that be committed via a blob transaction? Or will L2’s know it’s a contract and use calldata instead? If it uses the blob transaction, does that mean the entire contract could be purged and not exist anymore?
  2. If the contract does survive pruning, does it mean the data itself may be purged? For example, if I store an address for payment in a contract, could it suddenly be purged after 18 days and then the address is 0x0, effectively sending payment to the burn address?!
  3. If data in contracts do get purged, does that mean the contract could be in some half available/half purged state if data is written to the contract over periods of time?
  4. Somewhat unrelated, but can an L2 call an L1 smart contract?

I know I must be thinking about this incorrectly, because if any of this is true, I feel it’s going to massively hamper L2 adoption and usability; that, or I’m missing some other big piece of the puzzle to mitigate this.

I also assume with full danksharding, the data pruning will be greatly lengthened, so perhaps this is a temporary issue?

Any clarity you can provide would be very much appreciated!


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u/djlywtf:

dom’s honorary nephew here

nothing in rollups state is ever pruned. currently, all transactions (or state diffs) are posted on calldata and thus are stored forever. when you run a rollup node, you can reconstruct the state yourself from this data on L1.

after 4844, you won’t be able to reconstruct the state from L1 data (unless someone stores all blobs). instead, you follow latest merkle root or anything that belongs only to the latest state (even hash of sqlite database), stored in the contract on L1 and updated each proven batch (ZK proved or challenge time ended). you can be sure that this data about current state is accurate, because it was proven in the past when you weren’t around from the data which WAS available then. then, you download the state from anyone with a rollup node. you’ll get it if at least 1/N rollup node is honest, because its data will match merkle root or db hash or anything

temporary blobs purpose is to be used by sequencers that prove rollup batch and then update current state “signature” (it can be whatever works, most simple example is merkle root). nodes don’t need to store all transactions to reconstruct the state, because they can prove if the latest state that they receive from rollups nodes is actually valid on L1

for example, someone on zk rollup proposes the batch with transactions, sending it in the blob storage. now, everyone has all these txs for the next 18 days. sequencer/s start to generate the ZK proof to this batch, and when they’re done, they send it on L1 contract, it executes this ZK proof using commitment to the blob (fixed size thing that belongs to the blob and that they can access on EVM; don’t ask me how it works this is cryptography magic), and updates merkle root based on what state these txs changed. now this data can be safely pruned and nothing will break, but we also have optimistic rollups that have to wait for the challenge time, so we hold it for 18 days instead of say 2 hours

u/Bob-Rossi provides us an Arbitrum delegate update

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Recent ARB vote updates:

Using 100M of ARB funds for “Staking” passed the temperature check on Snapshot. The proposal would take 100m of DAO treasury and pay it out over holders who lock their ARB for 1 year. I voted no for this, as I don’t think it adds much value to Arbitrum’s chain and essentially is just paying people not to sell. Any economic value added is temporary, and likely would be out-performed by other projects. We shall see where this goes, as while it passed, there were a decent amount of no votes.

The DAO voted to start an RFP process for security proposals. I voted for this, as I prefer to see these types of things be standardized when people apply to allow for an even playing field.

The “Arbitrum Coalition” vote failed. This looked to have a group of delegates to be hands on with DAO proposals. Basically coordination and reviewing of proposals at certain stages. I voted no on this, as some of the council also had a large share of voting power. My fear being it would create a centralizing effect. I’m not opposed to the broad idea, but there needed to be stronger separate of powers here — ideally those on the council had no voting power. I think this failed as a lot of other delegates felt similar to me.

The STIP grants that pass the yes/no voting, but did not meet the 50 million threshold were voted to be backfunded. Honestly, this was a tough one for me. I wasn’t a huge fan of back funding projects, especially because of the precedent it will set. However, IMO the DAO really dropped the ball on the first grant round with how it was set up. I’m not sure punishing the ones that passed, but failed to be as popular, is really great when it’s more the DAOs fault for a poor setup. So in the spirit of the original proposal, I voted to pass but wouldn’t be doing this again if a future round finds this issue. I’ll add, the spend was going from 50 million to 71 million. Which didn’t seem overly outrageous, and was actually in line with original ARB amounts proposed until it was reduced from 75 Million to 50 Million.

To those possibly concerned, LIDO did fail their yes/no vote so it wouldn’t get funded with this round either.

u/MinimalGravitas warns us of the latest scammer tactic

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New scammer tactic on an /ethereum staking thread.

Posted a link to a fake staking service (Block Scape) which they immediately upvoted with ~30 bots. I called it out in a reply. So far so normal.

They then deleted their original comment, blocked me so that I can’t report them or reply again and then upvoted the new one. Very annoying strategy.

Stay safe out there, and if anyone wants to do a favour and report the scammer then please do!

[Edit, and of course they are now using their bots to downvote my top level comment calling them out.]

Week #42: Novmber 10, 2023

No Livestream | No POAP

Weekly Doots →
Week #41: October 27, 2023

Listen Live | POAP

Announcements

The morning trinity

View on Reddit →

u/alexiskef

✨E✨t✨h✨e✨r✨e✨u✨m✨

u/FrenktheTank

0.0526

u/Zeebrasurfer

$1783

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

For a crust of bread,

Hunting the next airdrop shred,

Keeping us all fed.

Shitpost of the week: u/Yeopaa

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I’ve held my silence for too long.

In my country the word ‘doot’ means vagina.

It’s also slang for currency, 1 Doot = £1.

A common jibe here is ‘Smell yer doot mate.’

u/benido2030 is continuing their effort to make EthFinance a governance powerhouse

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A few days ago I made my “Let’s make ETH Finance a Governance Powerhouse” post. First of all thank you for the positive feedback both with comments and upvotes! I have been thinking some more about it and even though there wasn’t a real pushback, I would like to update it and cut it down to three steps.

  1. Coordinate
  2. Delegate
  3. Communicate

After reading my own post a couple of times, I asked myself. “How would you respond to this if this was posted by someone else?” My gut feeling: It’s a good idea, but it’s too complex. We need to start with an MVP for governance and coordination. Hence, here’s a short “Minimum viable coordination” (MVC) update:

1) Coordinate

Once an airdrop is announced, we try to coordinate as fast as possible.

We collect potential delegates from this community. Members can both announce their motivation to be a delegate for the protocol and members can suggest other members.

We publish a list of “aligned” delegates that are close to this community, but not daily active.

We try to focus on a few delegates to make sure “our” delegates have a lot of tokens delegated and hence governance power.

Obviously everyone is still free to become a delegate, but if we can achieve to agree on e.g. 2-3 “official” candidates that focus on one protocol, this would have a lot of benefits. My suggestion is also to that the “official” delegates should be delegates for one protocol only. My best educated guess is that the time needed for “good”/“professional” governance will be up only and in the future being a delegate for 2+ protocols will be very hard.

2) Delegate

Well, this part is easy. We delegate our tokens to our “official” delegates.

Why is it an extra step? Just to emphasize that it’s coordination first and delegation second. Or in other words: I think it would be very beneficial if we all be patient. Don’t claim on day one since most of the time the delegation is part of the claiming process. Let’s try to make sure we really had some time to agree on candidates.

3) Communicate

This is happening already, but we should do this as much as possible. Tag your delegates if you have question/ feedback. Or as a delegate: Talk to the community, ask for feedback if you are a delegate.

The delegates are our ears and eyes for that protocol. E.g. I would have missed the LDO proposal, but I am very happy it was discussed here. We need this kind of activity to inform the community, align and coordinate even better than before.

I think this MVC is way better than the first one. Yeah, reporting sounds cool, but it might be overblown (and corporate?). And yes, preparation for a potential airdrop sure makes sense, but could also be a lot of work for something that never happens. Let’s try to coordinate ad-hoc when there is a need. If that works out, we can always improve and add more steps.

Airdrops are usually a big news and my guess would be that members that are mostly reading here will come to ETHFinance on these days. By definition I will not know what most of those lurkers will think of my suggest or do when we need to coordinate, but allow me to state this: You are the majority of this community and you all - as a group of lurkers - probably have more governance tokens than the active / posting members. I would really appreciate your silent coordination by reading and silent acting by delegating your tokens to a delegate from the community!

u/jtnichol reflects on how EthFinance dodged a bullet with Reddit’s community points

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Reddit is sunsetting community points across cryptocurrency ethrader, and Fortnite BR… I don’t know what the next move will be for the project as a whole, but I’m still very very happy. We did not get involved with such a centralized mess of points and karma

Moon price dumped big time prior to the announcement also which speculated the moderators had inside her information this was going to happen on /r/cryptocurrency and Fortnitebr specifically.

that’s all speculation based on a tweet I’ve ever had that. Showed the timing of everything. /u/spacesider hear anything like that?

https://x.com/DegenerateNews/status/1714353397330002253?s=20

Edit…ethtrader too https://reddit.com/r/ethtrader/s/mxYAn7ShXP

Double edit… holy shit looking through those subs and the amount of fighting and pissed off people over something we all knew years ago, was going to ruin the Reddit experience.

passing up that opportunity was the best thing moderators here could’ve done because it is a complete train wreck now over there in those other subs .

also, Reddit red hats have just created such a catastrophe by not seeing this through or figuring out the token mechanics of it …. they basically told the moderators it was going to be over in a month and that was that. They should’ve just rugged everybody equally the same time but they didn’t.

and just don’t understand why they didn’t put more effort into figuring out the token mechanics. Who knows it was probably because of all the discord pump groups that are being talked about as well with the vote manipulation. Color me shocked. … maybe it was a regulatory thing…. who knows but there was not enough effort to see it through after such a long, hard road of picking out which layer two to use, etc..

Watch those communities evaporate quickly. I have no doubt they will probably see a good 75 to 80% less traffic because of all the click farm activity and Discord vote manipulation tactics.

u/Spacesider explains his perspective of the Reddit Moons rug as an r/CC mod

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There was a post in yesterdays daily regarding Reddit community points and JT tagged me and asked for my input, and I have only seen the post just now, so I will follow up in today’s daily for greater visibility /u/jtnichol


Basically, we were both privately and abruptly told by the admins that community points are getting killed and they will be no more in just a few weeks. 1 hour later the admins shared this information to the wider community. So /r/CryptoCurrency mods knew about this before everyone else, as well as the mods also over at /r/FortNiteBR and /r/ethtrader too as they also have RCP. (Reddit community points).

Well, some mods used this private information to their own personal advantage and decided to sell, because the price was going to obviously crash when it was to be made public one hour later.. Some more information in that link.

It’s also been reported on two big websites if anyone want additional details.

https://www.theblock.co/post/258476/pair-of-reddit-mods-appear-to-have-sold-off-tokens-ahead-of-announcement-to-terminate-blockchain-based-program

https://cointelegraph.com/news/reddit-mods-dumped-tokens-hours-before-blockchain-program-termination

This is really not a good look and I have absolutely no idea what (If any) potential consequences of this is going to be. My personal thoughts on the matter?

When RCP’s were first announced (Around half a year prior to me becoming a mod), I voiced my concerns as a comment on the announcement.

Many years and countless hours later from everyone involved, I must say that it is still sad to see it go because this could have been a huge opportunity for Reddit to make web 3 way more mainstream than it currently is. So this is probably going to set things back a bit for us. I guess Reddit are only focused on money though and if it initiatives like this can’t bring them in more money (Probably due to rumours about how they want to IPO), then they will be axed to make things look prettier for investors. So probably the entire Reddit platform might go in an entirely new direction.

We did ask if the smart contract could potentially get handed over to the mods for us to continue in our own capacity, but the admins haven’t said anything back to us about this.

I guess now that upvotes are not monetised anymore there will be a big drop in comments and in theory an increase in quality, as all the people who participated only to farm karma will now (hopefully) move onto other more productive things. I guess time will tell!

u/silentjxhn shares an excerpt from an artist who praises the advantages of NFT art

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I find this so fucking weird. The artists that have branched into NFTs love it from what it seems.

I get 100% of the primary sales. Galleries take 50%. For the entire month of July I sold a teeshirt. $20. [Reddit’s Collectable Avatar] program allows me to make art every day.

…before this project I was pretty against NFTs for all the obvious reasons that most people are. Mainly the predatory, mlm scamming structure that turned a lot of people off to them. But people need to know that this project is far more like patreon, your purchase goes right to the artist. You see an artist you like and want to aid them? you throw them a couple bucks. To be honest seeing the resales was even a surprise to me. But I don’t see it that different than any other form of investing, it’s all numbers on a screen to me. I would, however encourage people to not get over their heads and play it safe. Please don’t gamble your life away.

I actually intend to recycle my earnings into putting on art shows and installations myself. I’m sick of begging galleries for attention, I’m just gunna rent out warehouses and do it myself and invite the public to see. Not only did this program free me from the extreme stress of trying to make rent, it allows me to circumvent the dusty old gate keeping artworld and do what I want to: to show the whole world my art. This program is dope as shit.

u/domotheus does an AMA on statelessness and verkle trees

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I’m currently writing an article about statelessness/verkle trees, trying to do the same thing I did for blobspace where I start from the very ground up to explain the problem and the solution.

I guess most ethfinanciers are already familiar with a good chunk of the “from the ground up” section, but it doesn’t hurt to see where some confusion remains. So I’m trying something here: AMA about statelessness and stuff and I’ll try to answer and it’ll be mutually beneficial and what not

u/TheCryptosAndBloods finds an excerpt which sums up an all too common occurrence

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Excerpt below from a newsletter I get called The Defi Edge - it is uncanny how exactly it describes me and my behaviour in the last 2 cycles. Like he could literally have been writing my story.

Anyone else do this?

Waiting patiently for the next cycle to (I hope) do what I didn’t, the first two times:

“Have you ever heard that it takes roughly 3 Crypto cycles before you”make it"?

You’re an idiot in the 1st cycle. You’re figuring out all the basic concepts. You trust influencers a little bit more than you should.

4 years later…

You’re smarter in the 2nd cycle, but you become a little too overconfident. You think, “This time, it’s different.” You’re not taking profits like you should and mis-time the market cycle.

4 years later…

The 3rd cycle. You either “make it,” or you repeat the same mistakes. Notice the 4 years part.

This isn’t League of Legends or Chess, where you can play every day if you want to. The bull market tends to come once every 4 years on average. So, your “feedback loops” are slower."

u/FernadoPoo has a call to action for Americans

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The US Government is Trying to Kill Crypto latest Bankless podcast.

If you are a U.S. citizen, give the IRS and Treasury what for using the AI tool https://treasuryraid.lexpunk.army/

You have seven days.

u/696_eth talks about the fun aspect of solo staking

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I’m surprised staking hasn’t gotten more degen light. All you see is like 3.7% APR when you solo stake bluh bluh. Yes, that’s helpful and that’s too intellectual.

Why wouldnt we just make it intellectual cause we can calc averages etc etc and move on? well that’s how I did it too but staking isnt just that for humans.

Let me explain a bit more.

Staking has consistent rewards which are quite negligible unless you are a whale but you get some passive income and that feels stable, secure and good and it can even attract the crowd that does FatFIRE and all that stuff in tradfi.

However, there’s more to staking. There’s a sync committee which is again more stable gains while you are there yet the key part is that it’s random occurrence in one’s process.

And the ultimate form of dopamine rewarding would be a block proposal. Timing of that is random (yes there’s a probability the same way there’s a probability in blackjack or roulette) and on top of that - the reward is random! So you are basically having a chance at winning the lottery (also way better chances than in real lottery) and you get to play it for free!! Well, kind of. You have to stake.

So unless you are a big corporate entity or in a smoothing pool (altho that would still apply to some degree but not so much), just the possibility of having stability (thru regular attestations) + some occasional bonus for doing the job well (sync comm) + free lotto tickets that can be lifechanging (block proposals) !!! I feel like if more people knew this was the case instead of just boring APY part they might’ve been staking purely in hopes of degening in a smart way (since you lotto tickets are free) and helping out the decentralization in the process.

Anyways, im curious what has your experience been like? do you feel some excitement staking or at least whenever you get notifications about sync comm + proposing blocks? if not, how does it make you feel then?

u/anderspatriksvensson is withdrawing their stETH and explains the process

View on Reddit →

I am moving out of Lido and decided to “Withdraw” instead of trade out my stEth. They say this may take 1-4 days. Anyone build any good way to more accurately predict when my withdrawal will take place and be ready to claim? I’m patient but just wondering if there’s a better estimate somewhere…

EDIT: Little more research. So Lido creates an NFT that is minted the second you create a withdraw request. The NFT is then “transferred” and burned once the eth is ready to claim and claimed. So with a little bit of guessing, you can see when the last “transfer” was and how long it took between their mint and the transfer and guesstimate. Example of one that has been minted and transferred. About 5 days and 9 hours from request withdraw to being claimed. Of course it might have been ready at 4 days and it took 1 day and 9 hours for the user to claim it… Anyway, I wait patiently :) I feel better doing a withdraw and knowing the stETH is being burned instead of transferred onto someone else.

Week #40: October 20, 2023

Livestream Recording | POAP

Guest appearance by Greg Di Prisco, Co-Founder of Ajna, a noncustodialand permissionless lending protocol that requires no governance or external price feeds.

Announcements

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/5quat

$1584

u/696_eth

0.054

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Warping not bridging,

EVM is not judging,

Just network switching.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 860,027 (+2,531)

Pending validators: Joining 0, leaving 0


Since I have started tracking this

151 days have passed

The amount of active validators has increased from 572,820 to 860,027 (+287,207)

The amount of staked ether has increased from 18,330,053 to 27,520,638 (+9,190,585)

Which is around 14,228,587,979$ in USD value using today’s Ethereum price.

Shitpost of the week: u/superphiz

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Making a pilgrimage to see the burial site of our beloved, Gary the Cow today.

Edit: I arrived!

u/MinimalGravitas has some thoughts after the community pushback against Lido’s Arbitrum DAO proposal

View on Reddit →

Thoughts on the victory over Lido in Arbitrum’s STIP round (apologies for a bit of a brain dump):

1) Today - We should celebrate, be grateful and allow ourselves the happy vibes of the ‘good’ side winning. We’ve won a battle, but as I said a couple of weeks ago this is going to be a long war. One of the best ways to build resilience to keep grinding is to pay attention to the rewards your brain gives you when you win.

2) Tomorrow - If you harassed a delegate to get them to vote, or to change their vote or whatever then reach back out to them over the next few days. Everyone likes it when you say thanks, and everyone prefers it when they don’t feel like you forget about them after you’ve got what you wanted.

If delegates voted no after you messaged them, or even if no one contacted them then why not message them to suggest they take a look in EthFinance of Reddit? Sales teams and political lobbying groups take people out to dinner to keep them on side, maybe our equivalent to that would be inviting delegates here… I honestly think that The Daily is a more valuable Ethereum community than any Discord or Telegram group, so why not leverage some of that value to buy goodwill from DAO delegates who have shown themselves to be at least somewhat aligned to the cause of protecting Ethereum L1.

3) Next Week - With Lido losing here, being vampire attacked, and the threat they pose being discussed in multiple Ethereum podcasts recently it’s a good time to press the advantage. Up the ‘social pressure’ (which it turns out can be quite useful after all) by calling out their attempts at spin and damage control. u/hanniabu has set a great example of doing this. Their representative who proposed the Arbitrum request was on Twitter claiming the results were ‘razor tight’, so don’t let them control the narrative.

In a dogfight one of the ways you beat an opponent is by overwhelming their Cognitive Load, give them too many things to think about to be able to effectively counter all of them. Lido have a lot to think about at the moment so we’d be throwing away an advantage if we let the pressure up too much.

4) The Future - We need to get more coordinated. We’ve got delegates in lots of DAOs but can we find more? Can we start compiling resources of delegates that might not be part of EthFinance but can be relied upon to recognize the threat Lido represents if they come knocking for funds and integrations? Can we start predicting where they might go next and reach out to delegates in other DAOs before any decisions even get put to them?

u/_WebOfTrust has discussed the possibility of changes to constitutions that would prevent these kinds of funding requests for Lido even coming to the proposal stage, what would that look like and what DAO’s might take it up?

How can we keep respected Ethereum media discussing this? Obviously some members (like u/EvanVanNess) are already working on that, I’m sure we can try to keep the focus on for some others too. The Bankless guys used to frequent here sometimes and have had a recent episode with Danny Ryan as well as promoted Diva’s Vampire attack, lets praise and promote those positive actions to encourage them to do more.

We need to get to grips with how important votes in the ecosystem work, before the final day of their decisions - it was pretty funny the number of different interpretations as to how Arbitrum’s pass/fail was decided, I certainly didn’t understand it until yesterday evening. It worked out fine this time, but we can learn from that and do better next time.

Because there will be a next time. Ultimately I believe that competition from other staking protocols is going to be the solution to getting Lido below 22%, but that won’t happen quickly, and Lido will fight hard to grow as much as they can before other options can catch up. The social layer is not the long term way to get this fixed, but is is a tool we have now and may be the best we have to defend our network for the near future - so lets learn from this victory and hone the abilities we have so that we can hold the line and push back for as long as we need to. I’ve never felt more optimistic that it’s possible for us to do so.

u/Tricky_Troll adjusts the personal reputations of delegators

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Governance token holders everywhere, particularly ARB holders or even OP and other governance token holders who delegate — now is a good time to ask yourself if you are happy with who you have delegated your tokens to. After the recent Lido ARB proposal, some names I once knew have either gone up or down in my personal reputation. It may be worth checking all protocols which you delegate your tokens on and check your delegate’s track record and change or speak up if necessary.

Changes of who I see as reputable.

Reputation gain: +++

Reputation Loss: —

Name and shame/praise baby. Who’d I miss?

u/RooftopPortaPotty updates us on their project PreservationDAO

View on Reddit →

Piggybacking on all the recent discussions regarding DAOs here, I aim to provide another perspective.

Two years ago I resolved to, along with the invaluable work of other ethfinanciers, launch PreservationDAO. Our aim is to preserve habitat by purchasing land of significant ecological value using funds generated by on-chain donations.

The landscape of Ethereum has obviously changed drastically since then, but our ideas and general plans were compiled by the great /u/haurog, and can be found at https://github.com/preservationdao/preservationdao.

We were quickly met with a wide array of challenges and obstacles. Some of these issues have likely been solved to some extent by this point.

I will assume that any interested members have read the linked github page. The following will be an attempt to address some of these challenges, and to detail solutions where available.

  1. I personally lacked the funds necessary to get this project off the ground. Unfortunately, this has not changed.

  2. We felt it wrong to launch an environmentally-oriented project on a proof of work chain. Post-merge, this is a non-issue. However, we may still want to choose a L2 to avoid high gas fees.

  3. I spent quite a long time trying to find an appropriate law firm to help create a land-owning, on-chain, 501 (c) (3) organization, to no avail.

  4. Ensuring that the meatspace treasury has no ability to embezzle funds is paramount, and I dont see a clear solution.

  5. With a non-transferable ERC-20(or NFT?) that is distributed to donators, who may then vote for lands to purchase, how do we mitigate sybil attacks?

  6. Ensuring that qualified contributors are able to make their donations tax-exempt is a priority. This project must not be limited to properties within the US.

  7. What assets should we accept as donations? There are many downsides to market selling ETH in order to purchase property.

I implore any interested ethfinanciers to contribute in any way possible.

I would love to see this comment receive significant traction. Otherwise, PreservationDAO can be re-shelved until we have a clear path to success laid out.

u/696_eth shares the potential that JP Morgan sees in this space

View on Reddit →

Original source


JP Morgan Onyx on Digital Identity in Web3

They have a video and are doing a 4-article series.

The first one - The Big Shift - was released back in 2022.

Let’s see what they understand.

New web - new rules.

New verification methods that are more secure, trustworthy and easier to use.

Prior to the blockchain and even so far, the digital online world has been copying the physical world leading to many issues around identity pieces:

• unsecured communication

• inefficient and dangerous practices

• stolen identities

• much more

Web3 - introduces new possibilities.

They clearly understand how web1 changed the world through e-commerce and how web2 sparked innovation through the rise of social networks and user-generated content.

What about web3? It brings the pieces of:

Decentralized system:

• Digital ownership of your data

• Ownership of your assets

• Flips the relationship between companies and users

& many more possibilities

• Adds more cross-platform utility

• Adds provenance

• Adds immutability

That means web3 can bring another magnitude of innovation:

• Streamlining online business models (less friction for users)

• Saving time (reduce verification times)

• Making proving easier, more secure and private

• Reducing costs and unlocking more liquidity (faster and transparent public services)

For all of that to work we need to Update our Digital Identity.

That’s where Decentralized Digital Identity comes with a range of benefits:

• Sovereignty (you have control and choice of your data)

• Security (no points of failure)

• Immutable and irrefutable (highly trustworthy information)

While all of that sounds good, it’s a very complex challenge to bring all the pieces together.

This leads us to their second article - Assessing Web3’s Identity Building Blocks - was published sometime in 2023.

First of all, they are reiterating their points from the first article.

But now they are getting a bit more specific and tangible.

Starting with an overview of the digital identity landscape and highlighting 4 essential building blocks.

  1. Identifiers aka everyday tags:

• Names

• Email addresses

• Accounts numbers

• Social handles

& many more

Web3 ones are:

Ethereum Naming Service (ENS)

• Turns 42-character Ethereum public address into a human-readable name

• Represents multifaceted identity

• Includes a variety of blockchains

• Utilizes offchain information

• Includes website URLs (domains)

• All other identifiers

All of that is in one name!

— &Lens handle*

• A user profile on the social graph of Lenster, Lenstube, etc

Other naming services as identifiers (Unstoppable Domains and others)

DIDs (Decentralized identifiers) are fundamental blocks of the self-sovereign identity (SSI):

• uniqueness (no confusion)

• provability (proof of ownership)

• portability (owned by an owner and cannot be deleted, cross-platform usage)

It’s just a sneak peek and more is coming in the next article!

  1. Identity attributes (attestations of facts or data points):

Examples:

Proof of Humanity (PoH) - Ethereum-based social identity verification system

Soulbound tokens (SBT) - public, permanent, non-transferable NFTs that can represent a person’s digital identity attributes onchain.

Verifiable Credentials (VCs) - A W3C data model for sharing and verifying identity credentials that can be stored offchain allowing for privacy and scalability.

  1. Reputation

It is a key part of one’s identity and makes us who we are.

POAP (Proof of Attendance Protocol) is a notable example of this.

  1. Digital collectibles and assets

NFTs contributing to one’s identity:

• profile pictures (PFPs)

• digital art

• in-game items

• membership NFTs

& more

Digital Identity can bring all the pieces together.

To gain scale and mass adoption, it’s crucial for wallets to enable a seamless building of one’s digital identity.

Account Abstraction (AA) solves some of those challenges.

Combining 4 of the essential blocks (Identifiers, Identity attributes, Reputation, and Digital collectibles & assets) with one another, can form a holistic identity.

Onyx’s experience with Decentralized Digital Identity:

• observing the DID space from 2017

• identified use cases

• built concept solutions

• explored digital identity for institutions on public blockchains and experimented with VC and DID technology through a collaboration with the Monetary Authority of Singapore and SBI Digital Asset Holdings

• remain open-minded and continue exploring other methodologies for a variety of use cases

The conclusion of this article leads back to their digital identity part of the site.

They have a range of documents on other web3 and crypto-related topics.

It is obvious, that they are not thinking about Digital Identity in isolation as they are aware of nuance niches within web3 such as metaverse, DeFi, and even real-world assets.

They clearly articulate how it can be helpful for:

• online interactions (ownership, portability, security)

• creators (by moving platforms)

• gamers (asset-interoperability)

• real-world applications

In navigating the rich space of Web3, JP Morgan Onyx lays a strong emphasis on the transformative power of Decentralized Digital Identity. Their explorations highlight the potential that comes with blending digital identity with emerging tech realms like metaverse, DeFi, GameFi, SocialFi and the tangible world itself.

What else do you already see that JP Morgan Onyx still doesn’t?

u/benido2030 and u/Juankestein share their biggest learnings about investing and their resulting strategy

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u/benido2030:

This is one of my biggest learnings: it’s so easy to spend ETH in a bull market. So many cool narratives. So many people making a quick buck.

And to be fair: you should be experimenting because that’s how you learn. But you should also keep in mind that every buy diminishes your ETH stack. Your long term bet. The asset that will not go to zero next bear.

So I think a budget for experiments works well. Don’t spend more than the budget and you’re good.


View on Reddit →

u/Juankestein:

Around 3 years ago I realized this. EVERYONE wants your BTC and ETH.

Just hold BTC and ETH and forget about it, that’s probably the most boring strategy but also the most rewarding and less stressful…

My Plan for 2025 is to convert all the 2017 and 2021 shitcoins into BTC, ETH, USDC and maybe another token I want to bet on.

u/benido2030 wants to make EthFinance a governance powerhouse

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Let’s make ETH Finance a governance powerhouse

In the light of the lido threat and their ARB request this community has shown a brilliant reaction. The topic was heavily discussed, delegates coordinated and a lot of great posts have been made. u/minimalgravitas made this post last week and I would like to add some thoughts with regards to “The Future” since I completely agree that we need to coordinate even more than ever before.

Some assumptions before I start outlining my thoughts

So how can we coordinate more/ better to become a governance powerhouse? I think we need to be structured and prepared beforehand. I also think that for now (let’s call it “phase one”) we should also limit ourselves to the current community. Still this will be a huge change and will probably need people dedicating a good amount of time to make things happen.

Step 1: Analysis/ Identification:

This step needs to be done both internally and externally. These steps should happen regularly to be prepared for e.g. an airdrop, possibly every 3 to 6 months (tbd), but potentially also ad-hoc.Internally: We need to understand our members strengths, interests and availability. Some questions I would ask to identify potential delegates: Who is capable of representing ETH Finance as a delegate? Is the member focussed on a certain topic/ category? Is the member a delegate already? Is the member free and willing to work as a delegate? I think people should both be able to suggest other members, but also apply as a delegate.Externally: We need to understand which protocols / categories of protocols are critical to ETHs health, both direct and indirect. Direct in this case means e.g. relevant for ETH’s security and / or decentralization. Indirect could mean because of a large treasury and its economic power.So let me give you an example:I think the EigenLayer airdrop will happen at one point in time in the future. Let’s assume the token is a governance token. A lot of smart people see Restaking as a potential threat to Ethereum’s security. Hence I think we should try to make sure there is (at least!) one community delegate for EigenLayer.We should identify capable and willing members now to make sure once the airdrop happens we can act fast. Personal opinion to make it even more concrete: I would suggest u/hanniabu for EigenLayer delegate because I believe restaking is critical and believe that they have proven themself in the past couple of weeks both on reddit, but also on twitter.Best case we can identify up to 3 delegates per critical protocol so that we can act fast. Down the road we would basically have a table that serves as an overview of potential delegates per category.

Example:

Step 2: Coordination and delegation

This step will usually be helpful after a token launch/ airdrop. It basically formalizes step 1.After a token launch announcement we try to understand our “power”, so try to get a feeling for our power by estimating our token allocation (this will be fun, cause it will be so hard to estimate lurkers and their allocations). Based on this we agree on a number of delegates.After that we ask the potential candidates if they are still interested and confirm 1-x “official” delegates. The process? To be defined! Most likely via reddit, maybe an extra post? The daily?Important: obviously everyone is still free to run as a delegate even if they are not the “official” community delegate. Also everyone is still free to delegate to a completely different delegate. We can’t tell people to not run as a delegate and we can’t force people to delegate to the community’s candidate.From my point of view the goal of this step is to delegate as many tokens as possible to the “official” candidate to make sure our representatives have power. I think it’s better to have 3 candidates with 1M tokens each than to have 30 candidates with 100k tokens (or even less because people choose external candidates).But why would you do that? This is where step 3 comes in:

Step 3: Collecting feedback

I think we have a big advantage over other delegates: We can crowdsource feedback. Or in other words your delegates will usually understand your position (because you post it or upvote those comments that summarize your position in the best way possible) and will best case act based on the feedback.So what should the process look like? I think there are two possible ways.Delegate driven: The delegate will usually be aware of important topics, discussions and votes. They could either publish their position on a certain topic in the daily or they could ask for feedback if they have no idea/ position yet. I think this is the best scenario, but this might not work all the time. Delegates might not see a certain vote as critical as the community, might not have enough time to check all discussions proactively etc.Community driven: So the community members could tag the delegate to express their view on a certain issue. I think this has already worked pretty well the past couple of weeks and is already part of the community DNA.Based on the feedback the delegate forms their opinion and votes. Important: The delegate is of course (?) free to make the decision they think is best. The community feedback is a suggestion on how to vote, but not binding. If people are unhappy with the delegate they are free to redelegate (see step 5).

Step 4: Reporting

I think it would be beautiful if there was some kind of “reporting” back to the community. This could be a summary of the votes of the past, feedback the delegate got in the process (cause the delegate will likely be in touch with other delegates), information about other delegates that have a similar stance as we are and generally things the delegate thinks are important.The goal would be to learn what delegates have learned and allow for some “behind the scenes” for interested members. This reporting could be a written report, but maybe some delegates would also be open to join the weekly EVM meeting in Discord.

Step 5: Evaluation and (re)delegation

The last step is evaluating the delegate’s actions and potentially redelegation. In a best case scenario the evaluation just results in… nothing. People are happy, feel that the delegate did a great job and represented this community well. But we obviously have to accept that this won’t be true all the time. Redelegation could happen if a member goes inactive, votes/acts against the community’s values/ interest, etc.To be honest I don’t know how often this should be done, maybe once a year and whenever there are big decisions? In the end this is what some members have been documenting the past couple of days with external delegates and changes in reputation.

u/_WebOfTrust shares Vitalik’s message to those watching his every action

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“Regular reminder:
If you see an article saying”Vitalik sends XXX ETH to [exchange]“, it’s not actually me selling, it’s almost always me donating to some charity or nonprofit or other project, and the recipient selling because, well, they have to cover expenses.
I haven’t”sold" ETH for personal gain since 2018."

https://warpcast.com/vitalik.eth/0xb8ccf84d

Mad respect for Vitalik, all the onchain alert on twitter of him selling and causing panic while its all just donation to charity.

u/hanniabu has a call to action

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Time to promote decentralized LSTs to be added to Eigen Layer nexthttps://twitter.com/eigenlayer/status/1714331518775279990

Here is how you can get involved:

  1. A snapshot of all LST holders listed above, any that get added, and current Restakers will be taken on Oct 20th.
  2. Each wallet gets 1 vote for every $USD worth of tokens staked.
  3. LST teams will showcase their merits, declare pre-commitments, and campaign over the next week.
  4. LSTs that accumulate more than 15k ETH in votes will be added to EigenLayer for restaking in the subsequent months, added by the number of votes from highest to lowest.Key Dates:🫰Snapshot: Oct 20th📝 Submissions by LSTs: Oct 20th-25th🗳️ Voting by LST holders: Oct 25th - Nov 1

LSTs currently included and whether they are decentralized or not:

It seems the one we should support the most is Stakewise’s SETH2, so if anyone has that you should set a reminder to vote starting October 25th. Unfortunately there’s only a supply of 85k ETH since their old v2 implementation has been paused, so there’s limited voting power.

But the good thing is that you can also vote if you have any ETH restaked. I’ve reached out to Diva to petition for their inclusion.

-–

Edit:

https://twitter.com/eigenlayer/status/1714331527025476017

As for voting - you decide the stage! Decide on which L2 the competition should take place. Cast your vote now!🗳️ Deadline: October 20th before the contest launches.

Current poll results:

Base - 34.2% | Arbitrum - 54.9% | Polygon - 7.5% | Mantle - 3.4%

u/TheCryptosAndBloods calls out Uniswap for their recent bold move

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Have we done the new UNI fee stuff?

How Uniswap Labs (the VC funded company) is adding a 0.15% fee to the (primary) frontend it controls, as well as their wallet app? It’s 3x the long awaited fee switch for UNI token holders, going entirely to benefit the company.

And they have announced it the day after they pushed through a vote approving $50 million in funding (by dumping the UNI token) for the Labs company by the Uniswap Foundation/DAO - with zero explanation of what it is for or what it’ll be used for - just an opaque ($46 million for 2 years please - we’ll use it well, pretty please).

It’s just incredibly brazen. Uniswap is a fantastic product but my god the incentive misalignment between the team and VCs (who want to drive value to the company equity which they own more of and which has fewer regulatory hassles) and token holders is crazy (team and VCs also own a ton of UNI of course but they own more of the company and would prefer to monetize the company, especially since it doesn’t have regulatory hassles for them like the token - BUT, they will use their voting power to block any attempts to turn the fee switch on for UNI holders, to avoid aforesaid regulatory hassles for them - all while disingenuously talking about how UNI holders can vote to turn on the fee switch if they want).

Why do people hold UNI anymore after the relentless screwing of token holders by the team/VCs/company?

Like I said - Uniswap is a great product but the team/VC/founders leave awful taste in the mouth with their greed and screwing of token holders. Also there were some very unpleasant allegations about Hayden screwing over early investors and people who helped him bootstrap and not giving them the equity they were promised etc last year - think there was a long Twitter thread by Ric Burton? I think I need to emphasize that we only heard Ric Burton’s side of the story and every story has two sides, but it all sounded quite plausible and in line with the kind of ethos that Uniswap Labs has now..

u/superphiz self-examines Ethereum’s current situation

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Self-examination is critical for long term success. Everyone has been in the dumps about the ratio, but instead of lamenting it we ought to be asking what we can do to improve Ethereum.

Maybe it’s not our fault. Doesn’t matter.

Maybe bitcoin just had the first mover advantage. Doesn’t matter.

Maybe the value is flowing into bitcoin because they’ll have the first spot etf. Doesn’t matter.

What DOES matter is what the Ethereum community and developers are doing in the face of that. Ethereum is 10x more technically sound than bitcoin, so what can we do to stop suffering through the leak?

We can celebrate our victories and focus on the path forward.

Now. What are you celebrating? What have I missed? What can we do better? THESE are the questions we need to ask as we accept agency over our current situation.

Week #39: October 13, 2023

Livestream Recording | POAP

Guest appearance by Billy Luedtke from Intuition, a project that aims to have identity for everything on the blockchain

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/FrenktheTank

0.0576

u/TimbukNine

$1539

Weekly Haiku: u/Jey_s_TeArS

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Who wants a T-Bill?

Why not a savings account?

Staking is the thrill.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Active validators: 857,496 (+2,070)

Pending validators: Joining ~500, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/MinimalGravitas

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You need a story before bed Phiz.

To punish Ethereum, Moloch created a woman named TheCommunity, molded to look like the beautiful goddess Aphrodite.

Zeus brought her to Earth to be Ethereum’s’ wife. He was taken with her beauty and wanted to marry her, despite his developer’s warnings of the god’s trickery.

As a wedding present, Zeus gave TheCommunity a box, telling her never to open it. But as Zeus knew, TheCommunity was degen, she couldn’t stay away from the box and the urge to open it overcame her. Terrible things flew out of the box: centralization, MEV, scams, Bitcoin maxis, disinformation, LSTs, charlatans, and exploits. All of life’s miseries let out into the world.

As quick as she could, TheCommunity slammed the lid of the box back down. The last thing remaining inside of the box was Hope.

Ever since, Ethereans have been able to hold onto this hope in order to survive the wickedness that TheCommunity had let out.

u/TheHansGruber shares their last week of validating on the Holesky testnet

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1 week of holesky testnet operations. 50 thousand genesis validators split across 15 or so giga nerds from the rocketpool discord. I have several thousand running on a Ryzen 5 5560U, 32GB @ 3200, 2TB NVME. CPU is tuned to 25W in the bios. I’ve got the wattmeter hooked up now and will be monitoring total system usage and see what it averages out to. Goal is to tune as low as possible without borking something. Current usage is about 37w, but it just booted back up and is syncing. Mainnet NUCs are around 15w. Still, kinda crazy to think one could secure $150,000,000 worth of the ethereum network…for 37 watts. It’s like…a medium sized solar panel and battery/inverter setup could do this for years. Greenpeace eat your heart out.

Something I didn’t consider before operating this node was the time it takes to load keys. It’s basically instantaneous with a couple validators. With several thousand it takes 30+ mins. Gotta reboot? It’s 30+ mins before everything is kosher again. Ethstats not reporting? A quick eth docker down/up cycle takes 10 seconds. But then 30+ minutes to load the keys. Actually, this makes me think I should try just restarting the execution container instead of the whole shebang and see if that works for ethstats. I am still learning the ins and outs of ethdocker…but it is definitely one of the easiest ways to run a node at home.

Sync aggregation is climbing and nearing 90%. It was hanging out in the 70’s last week.

I have started tracking the data usage now as well. With 1.4 million + total validators on the network, rx and tx is way, way up. Initial estimates are several TB per month, even with not a lot of activity on the network yet.

Mainnet nodes are around or under 1TB/month, depending on max peers and whatnot.

Random side note: about an hour ago one of /u/superphiz’s validators proposed a 3 eth block….straight to the smoothie pool. Thanks phiz! My non proposing, freeloading minipools appreciate the help.

u/Bob-Rossi urges ARB token holders to vote on a slef-interested Lido proposal

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If you own any ARB, I’d urge you to vote in the LIDO grant proposal - https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x6b89b74c259d2cc5979c46be6cfe2ae20f9485eee728a628f56930db644da985

I know DAO governance isn’t very sexy, but it’s really just going to take 2 minutes of your time for something I know the majority of this sub feels strongly about. The TL;DR is that Lido is looking to get ARB from one of the grant programs running. They are requesting 4 Million ARB - which is about $3.6 million dollars worth today. Essentially to use it to increase liquidity of the their liquid staking token on the Arbitrum chain. I am voting no (I listed why on the forum, I’d link but it’s blocked on Reddit), for reasons I’m sure you can all guess. But I’ll also add their request is for 8% of the entire grant program (was 10%, they lowered it after a ton of negative feedback).

Also, reposting a request from earlier in the week - here. Simply wanted to get it at a different time of the day / before the weekend in case it was missed before due to timing.

u/mikkeller shares their ETH thesis in a standalone post

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Made a long ETH thesis stand alone post, like a once every couple of years post, check it out: https://reddit.com/r/ethfinance/comments/171xvd3/how_eth_will_hit_100k_then_1m_why_it_will_and_the/

u/TheCryptosAndBloods asks for comments on a crypto critic’s latest release and u/TurboJetMegaChrist makes a fair judgement

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u/TheCryptosAndBloods:

Has anyone read the new Zeke Faux (Bloomberg reporter) crypto book? Number Go Up?

Judging by the blurb (calling crypto a $3 trillion delusion) and the kind of people praising it on Twitter (lot of mainstream media reporters and anti crypto activists), my tentative feeling is that it’s just a masturbatory fantasy for the “I always knew crypto is scam and I’m glad it’s finally dead” crowd.

Can anyone tell me if it is actually worth reading, and if it is just a polemic anti crypto rant (fair enough the guy is entitled to his opinions) or if there are actually factual inaccuracies and misleading content?


View on Reddit →

u/TurboJetMegaChrist:

I listened to Laura Shin interview him.

For what it’s worth, he did not sound anything like the mindless critics that point to FTX, Celsius, and 3AC as representative of crypto values. I think he raises the very real issues that anyone in this daily thread would gladly acknowledge. The difference is that he thinks they’re intractable issues, and we think solving them is inevitable.

u/LogrisTheBard describes economic coercive systems

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I’ve written several times about economic coercive systems before. I’m trying to polish a more simple way to introduce this concept and how blockchains help form these systems.

To start with, let’s create an evil smart contract whose only goal is to grow the set of participants in it. The only thing we need for this to work is a way of turning money into something universally unpleasant to a target actor. In the simplest case I’ll just suggest an assassination contract. Next, we create an evil conspiracy of initial participants to fund this contract. All the contract has to do is target some unlucky sap who isn’t in the contract yet, inform them of a pending assassination contract, and tell them to join us or die. Joining us includes streaming money to the contract so that the contract can grow faster. If the target dies, then the ratio of participants to non-participants still marginally increases. Now we run this until everyone remaining is in compliance with the contract rules.

This describes a minimum viable memetic rule system. The penalty obviously doesn’t have to be assassination. It just has to be enough that for whomever the current target is, they are incentivized to join according to their objective function. The penalty I describe in my human coordination post is economic isolation rather than assassination.

The initial participants expose themselves to economic pain from the fees they pay to the contract. This is the cost of expanding the size of the network and punishing defection. The value-add of this cost depends on the value of each new participant of the network. Due to Metcalfe’s Law we expect a super-linear value-add for each new participant as the network grows. Therefore, there is critical mass of initial participants required to bootstrap such a solution, but once that is reached the stable equilibrium of the system is to dominate.

Contrast this to networks that tend to fall apart or fail to achieve their goals because there is no leverage against defectors. For example, boycotts fail to work because all the negative consequences are directed at the seller, not at anyone defecting from the boycott. Strikes fail when scabs are brought in whom the strikers have no leverage against. A blockchain solution can have universal leverage because it acts on the unified monetary rail, which is quite unique.

Now, in this simple evil smart contract, there is no inherent value to the network (Metcalf value f(n) = 0). But in economic systems, there is. We can layer other rules into this base memetic rule system that can result in a net positive situation for the initial actors on a long enough horizon. The rules can include things like environmental protection, nuclear disarmament, or UBI.

Once widely adopted, the result is a class of fail-deadly system that punishes both those that disregard the coercive rules and those who don’t participate in punishing said defectors. There will always be some players like North Korea who choose to try to go it alone. The goal of an economic coercive system is to try to make them as poor and disconnected as possible to either minimize the harm they can do or compel them to join the coercive network and play by its rules.

Btw, if my evil contract sounds insane, it’s basically just taxation + the police that enforce taxation by throwing you in jail instead of killing you. If you say you’d never join such as system, you already have joined such a system.

u/MinimalGravitas has an important Arbitrum delegate update relating to Lido

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The big Lido incentive funding request on Arbitrum is currently about 2/3 against.

https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x6b89b74c259d2cc5979c46be6cfe2ae20f9485eee728a628f56930db644da985

Thanks to my delegate u/bobrossi for voting already. Ethereum ecosystem OG Griff Green has voted ‘no’ as well.

If your delegate hasn’t yet voted then get in touch with them. Some of the biggest delegates (like L2Beat and Olympio) haven’t voted yet, so there is still a chance this gets passed - which would mean 4 million ARB tokens being used to incentivize Lido’s LSTs.

Also shout out to u/hanniabu who has probably put the most work into pushing back on this one.

u/superphiz outlines his staking values

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A few days ago I shared Diva’s vampire attack against Lido and someone asked what my incentives were. It got me thinking why people are skeptical of my motives when the things I share seem so obvious to me. It causes me to realize that the criteria I evaluate projects with may not be as clear to everyone as they are to me, and I wanted to de-mystify that by sharing the ways I look at staking projects. I’ve been developing these ideas since around 2018, so they’re old hat to me, but I want you to have the same framework I have.

Alignment - Is the product aligned with the success of Ethereum, or is it a “business proposition”? This can be REALLY hard to figure out, but I pretty much listen to the first words out of a project lead’s mouth: Are they talking about improving Ethereum or maximizing TVL & profit? The answer to these questions tell whether a project is a public good or a windfall opportunity for investors. I DO support investor rewards, but they ought to be within reason, and the ultimate benefactor should be the network and its users.

Longevity - I look for projects that have been around long enough to know what they’re getting into. This is why I’m a terrible angel investor. Young projects don’t have this acumen, and I’m not smart enough to determine whether they’ll develop it in time. Longevity is one of the reasons I continue to support Stakewise - they’ve continued to grow and develop their product over many years.

Permissionless Node Operation - This is a HUGE requirement for me. Growth of the Ethereum network requires that as many as people as possible run validators and nodes, and I only support projects who allow any person who is willing to put up a bond, or split a Decentralized Validator Technology (DVT) validator to participate. I believe that successful staking platforms should encourage home node operation and provide multi-client support so that the operator can choose from any consensus or execution client pair.

Operators must have a stake - Operators need to have skin in the game, this means that if they’re staking for an Liquid Staking Derivative (LSD) they ALSO need to have their own Ether on the line. This is because staking is actually a voting process on the network. If an operator doesn’t have any stake, they’re getting paid regardless of whether the network thrives or fails, but if they have Ether locked in that validator they’re far more likely to make decisions that benefit the network.

Self-Limiting - Any project I get excited about must support a self-limit to 22%. I don’t care if they’ll never get there, this is basically a commitment to say, “We’re going to put the success of Ethereum above all else.”

Minimal Complexity - I’m deterred by extreme complexity, and adding complexity increases smart contract risk and lowers the odds that people will figure out how it works. Now, to be honest, some projects APPEAR to be complex because they’re doing something new, but they may be doing this in the most simple way possible. I have to confess that if I hear inclusion of an NFT in a staking pool scheme I’m generally turned off due to complexity.

Fully Trustless - Staking funds need to be controlled end-to-end by a smart contract, not any form of multisig. This means that when you enter as a permissionless validator, your funds are received and managed by smart contract logic that delegates other people’s Ether to you, and when you exit, those Ether need to be returned to a smart contract that distributes them fairly. This process ought to be as transparent as possible. This DOES add REAL smart contract risk, but it’s superior to human controlled wallets.

Open Source - Staking platforms should release code for public audit and as a public good. Our core values include open source software and we must adhere to this as we grow.

So, yeah. These are my values and the ways I evaluate a staking platform. It’s why my list is so short, currently I support Rocket Pool, Diva, and Stakewise v3. You may be right to point out that my high standards have enabled shady operators to expand more quickly than quality operators can proliferate, but if we’re going to build a healthy network the community and stakeholders must choose the best providers.

u/nixorokish is watching the contentious Arbitrum grants proposal by Lido

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dang this dao governance vote is the most contentious i’ve seen in a while.

https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x6b89b74c259d2cc5979c46be6cfe2ae20f9485eee728a628f56930db644da985

Thanks u/hanniabu for making noise about it. i had to go remember if i even have tokens and then had to go check who my delegate was. u/bob-rossi so, uh, which way you votin? you’re my delegate :D

u/benido2030 reflects on the last 2 years

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Last cycle peaked in November 21. it’s October 23. almost 2 years. Obviously we didn’t know immediately at that time the top was in, but in the end it’s been 2 years of pain, crab and more pain and more crab. A lot of people have left and I can understand them.

I don’t know when things will change. I don’t even know what needs to change. If we knew it would be too easy, but we all know it’s not. But I am sure that something will change at some point in the future and those days will be rewarding.

I guess those who are left here have survived at least one cycle and learned a lot. I was thinking about a „my learnings from last bull run“ post. Are people interested? I would be grateful if some experienced people shared their thoughts and learnings cause we probably all make different mistakes and I think that would help me a lot!

u/cheeky-gorilla shares a cool new thing for genesis stakers

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Did you know you can easily prove you’re a genesis staker without revealing your associated addresses?

You can see my proofs here, and also generate your own: https://www.creddd.xyz/user/cheekygorilla0x

This was developed by Personae Labs as a way to “bring more verified pseudonymity into the world”, and to help “onchain actors make use of their clout”.

I.e. demonstrate your qualifications before wading head-first into the spicy LSD debate :P

Check out Personae’s Twitter (Nitter) threads on their proof system here:

https://nitter.net/personae\_labs/status/1705237623093264851

https://nitter.net/personae\_labs/status/1711773693289054368

Week #38: October 6, 2023

Livestream Recording | POAP

Guest appearance by James Carnley from EVM File System (EFS), an onchain database allowing trustless access to collaboratively built data and applications. View presentation →

The morning trinity

View on Reddit →

u/Fiberpunk2077

Ethereum

u/Equal-Jellyfish1

$1620

u/696_eth

0.059

Weekly Haiku: u/Jey_s_TeArS

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Waking up sober,

That year won’t be mediocre,

Let’s start uptober.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Active validators: 842,416 (+974)

Pending validators: Joining 7k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

The Fact: u/Thailand_Facts

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In 1732 the world’s most populous city* was Ayutthaya in what is now Thailand, with a population estimated at 1 million. It was the seat of the Ayutthaya Kingdom, which reigned from 1351 to 1767.

The city could support such a large population because of the prodigious rice production just up the Chao Phraya River. The kingdom was a maritime power that traded surplus grain for luxuries and finished goods, establishing itself as one of the three great powers of Asia alongside Vijayanagar and China.

By 1732, however, its political power was in a slow decline and the capital was destroyed after a 14-month seige by the Burmese. Today, Phra Nakhom Si Ayutthaya is home to 50,830 people and a UNESCO world heritage site in the old city.

Shitpost of the week: u/Sourdoughpretzel4444

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May it be remembered, NAY written, that upon the 5th of October 2023, thine fellow Ethfinanciers banded together and struck upon thy holiest of dailies a communal post of shits. A shitty post that shall only be shat every now and then, yet still necessarily be shat. For it was written. And if it was written, then it must be so. And for everyone who wrote thine holiest of words, may you be blessED for all of Ethternity.

In the name of Vitalik, Dencun, And the holy trilemma

ETHEREUM

u/superphiz and u/18boro fill us in on Diva

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u/superphiz:

Diva has launched two community votes that will have a great bearing on their future:

  1. Self-limiting Diva - Should DIVA self-limit to 22%? As a living network, most aligned parties recognize the value in maintaining a healthy balance of operators. This stewardship reduces the viability of attacks and increases the long term resilience of the network. Providers who adopt self-limiting signal their alignment with Ethereum.

  2. Adopt Diva Staking DAO Community Guidelines - These are general guidelines for how the DIVA DAO ought to work, these guidelines make great sense to me and I support them.

You may also be interested to know that DIVA is in the process of vampiring stake away from the largest LST as Danny Ryan suggested in this very valuable talk with /u/evanvanness. Because of my own desire for conflict avoidance, I won’t say much about it, but you can find details here and I believe that /u/nixorokish is eager to talk about it.


View on Reddit →

u/18boro:

Diva, the ETH staking protocol, initiated an interesting vault a few days ago, where you can deposit ETH, or even better, stETH, and accumulate diva as well as the underlying rewards that’s included in stETH. When diva officially launches the stETH will be converted to divaETH ,or whatever they decide to call it, hopefully not dETH :). It’s a sort of vampire attack on stETH, which we obv need more of. So if you sit on stETH, wash off your sins with this one simple trick. The protocol hasn’t officially launched yet and there is no UI which shows your farming rewards and such. The short story is, stakers are divided in tranches based on how early they are, and the earlier tranches receive more diva per ETH/stETH staked than the later. This is obviously risky, it is a novel protocol, but at least the staking is done through enzyme, which has existed several years already.

Here is the staking UI: https://diva.enzyme.finance/#vaults

Here is the detailed proposal, which was executed: https://www.tally.xyz/gov/diva/proposal/45468458207916765916984557235161596151150976178275597160417224501662414206717

u/benido2030 and u/KuDeTa of Aestus relay discus MEV relays being public goods

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u/benido2030:

I just read this post thanks to the daily doots. I was expecting something like it, cause it was basically announced in the Empire podcast episode 2 days ago.

I know there is a high chance relays at one point will be gone, cause they will be enshrined. But this will not happen any time soon. So we need relays for some more years, but they don’t make any money.

In my opinion relays = public goods. Public goods need funding. Who can we turn to to get some grants to make sure we can keep or even increase the number of relays? Which protocols have (retroactive) public goods funding? Which delegates do we have to pressure to get funds? What else can we do to improve the situation?


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u/KuDeTa:

u/austonst and I run the aestus relay.

I agree - relays are probably here to stay in some form for years. While enshrined PBS would be great, it’s worth reiterating Auston’s point: making it unbypassable by design is a highly desirable goal.

MEV is a latency game, and centralised MEV platforms like relays are likely to always have a latency advantage over an in-protocol gossip network. This delta in latency is a delta in profit, and so if ePBS can’t ever compete with out of protocol PBS (relays, SUAVE, etc), excepting significant adoption by staking pools (etc) seems unrealistic. At that point it’s utility in the protocol is somewhat compromised.

My sense is that the EF and community are unlikely to move forward until we find a design that meets this unbypassability requirement. It may well be that the current line of research has truly reached a dead end and a fresh approach is required. Unfortunately, It also creates problems for related ambitions such as MEV-burn.

Central public goods funding in the relay space is fraught with administrative and political complexity. Views over censorship are particularly tricky and fundraising is a bit of a nightmare.

On one hand, Aestus is a relatively baby relay - on the other, we are regularly responsible for ~3% of Ethereum blocks. Who should pay to keep our lights on? It may be that relays need to form a market and charge a modest fee to validators. I’d be intrigued to know what ethfinance think about that.

u/SeaMonkey82 is going hard testing on Holesky, not all heroes wear capes

View on Reddit →

Daily Holesky:

Manually configured remote keystores in nimbus v23.9.1 appear to be broken. Log states that the validator is loaded, but it never begins attesting.

--network holesky on ethereumjs now uses the correct genesis, but still seems to be failing to serve deposit logs.

I ended up deleting and recreating the slashing protection database for web3signer in postgres. Having already configured the same validators using web3signer on Holesky v1, none of my validators were able to start attesting when they became active.

Spotted a bug on beaconcha.in. In the Attestation Assignments mouseover for the validator, Executed includes the two Scheduled slots. This was easy to spot when several of my Holesky validators have yet to attest.

I will eventually need to upgrade my storage array for Holesky, but more pressingly, I probably need to upgrade my CPU. With 30 client pairs, the 15 minute load average on my Threadripper 3960X is consitently well above the recommended one-per-thread of 48.

A lot has happened in the last ~36 hours, and there are probably several notable things I’m forgetting right now. I need a nap.

Holesky validator dashboard and links to validators by client pair

u/benido2030 is rallying the community around public goods funding!

View on Reddit →

I really believe in this community. It’s my favorite place and I love the people writing and reading. But I feel we can do more, if we improved coordination. There is so much (financial, vocal, emotional) power that we are not really using yet.

u/austonst both announced that Blocknative has shut down their MEV relay and explained why it’s concerning. Blocknative’s Matt Cutler basically explained the reasons for this in this Empire podcast episode. It comes down to “relays don’t make money, but cost money” (and Blocknative is a company with investors that expect returns - and relays have negative returns).

So what are relays and why are they important? Relays are important for PBS aka proposer builder separation, MEV capturing and specifically for MEV-boost. MEV is every everywhere. Users make transactions and generate MEV opportunities. These transactions are analyzed by searchers, who insert (e.g. add before or after the tx) their own transactions and forward them to builders. Builders collect all tx (from searchers, but also the public mempool) and build blocks with the highest value. Builders then basically forward the blocks to validators (via MEV-boost, a solution outside of the protocol) including the ETH denominated reward they are willing to pay if there block is chosen/ proposed. This is where relays come into play. They relay the blocks and make sure the validator gets paid and the network can’t be attacked. As basically always in Ethereum, decentralization is key, so we need multiple relays. PBS doesn’t work without relays, but there are no revenues, no revenue share, no nothing for relay devs/ operators. Searchers, builders and validators make money, relays are basically the only infra in the MEV supply chain that we expect to work without getting paid.

There are some theories why a small fee wouldn’t work (builders would only use free relays, hence relays with a rev-cut would be excluded most of the time etc.). So in my opinion (retroactive) public goods funding (PGF) is the best way to get it done.

Here’s where this sub comes in! I would like to

- use this communities knowledge to identify potential sources for PGF

- see if we as a community can influence how funding/ grants are distributed (e.g. if governance tokens we all own can vote for an application)

- use our voices to spread the word about the importance of relays and why funding is essential

For example there is Optimism’s RPGF. If Ethereum doesn’t work, OP as an ETH L2 doesn’t work. In my opinion it’s a nobrainer that u/austonst and u/kudeta (who run the aestus relay) should receive OP funding, but we all know that’s not how it works. But if our OP delegates (u/liberosist, u/_weboftrust, u/minimalgravitas, u/pseudotheos and more) coordinated, I am sure their voices can make a change.

I have no idea how the EVM treasury is doing, but maybe we as EVMs can come together and think about ways to support relays in general and the aestus relay specifically.

u/kudeta: You said yesterday that applying for all these grants and funding was complex and a lot of effort. If you want me to help, I am more than happy to e.g. sign-up in the name of the aestus relay for the OP RPGF round 3 and / or gitcoin grants. I have never done something like that, so it might not be perfect but of course I would coordinate with you to make sure the aestus relay is presented in the correct way (on every level). Obviously this would be completely free for you.

u/MinimalGravitas wants to see some more community pushback and comments on the Lido Arbitrum grant proposal

View on Reddit →

Paging u/bob-rossi, u/dmihal and any other Arbitrum delegates.

I’m interested in seeing some commentary from EthFinance’s representatives over on the Arbitrum governance forum with regards to the request from Lido for 5 million ARB tokens to, as hanniabu so perfectly puts it, bankroll Lido’s attack on the network.

Using the influence we have across different DAOs seems like a simple no-brainer way we can help protect Ethereum from capture. We held off their proposal on Optimism last year, I would love to see the same again this time.

[Insert stirring backing track, e.g. From Hell To Glory by End of Silence]

If you don’t want your DAO to pay to incentivize the growth of Lido then now is the time to say so.

This is a moment when governance can really matter. When the social layer actually has a decent amount of power. When you can make a difference to the future of this ecosystem.

It takes some courage to put yourself in the firing line, to voice an opinion against one of the most powerful entities in Ethereum. It maybe feels like a foolhardy risk to stand in the way of a juggernaut worth billions of dollars, but the alternative is that everyone rolls over and lets the credible neutrality of our network be stolen away, and with it will go the possible future of Ethereum as the base layer for not just the financial system but for global coordination.

We must not let Moloch win.

The cold war with Lido will be long and hard, and this is just one of many battles, but it is the one we can impact now, and it is one we can win.

Ultimate victory depends on us not losing every battle. It depends on us not giving up anything without a fight. And we must be victorious, because in the long run, without victory there can be no survival for the dream of a future that Ethereum represents.

[Music reaches crescendo, screen fades to black and soundtrack rolls into roaring Merlin Spitfire engines tearing past and into the distance…]


Arbitrum Proposal →

u/etherbie shares a cool new base layer privacy EIP and u/haurog explains it

View on Reddit →

u/etherbie:

Damn. Eip 7503 burn and remint sounds amazing for privacy. I don’t know how govts are gonna react to this though….. I think the correct answer is “Who gives a f@ck” ……. interesting times though


View on Reddit →

u/haurog:

It is even better, almost any address can be a burn address. You just have to proof that you know a short number whose hash is equal to the public address. This means there is no possibility for the sender to be sanctioned as there is no on chain proof that the address you sent ETH to is a burn address. The receiver side is a different story, there it is as far as I know obvious that the funds received used this scheme. The last all core devs call had a longer discussion about it and one person advocated to be more cautious and not to use these kind of zk circuits on L1 just yet as they are rather untested and previous iterations of similar schemes had bugs. In the longer run this scheme is definitely so amazing and I am a big believer that privacy needs to be part of the base layer.


EIP 7503 →

u/Dreth warns of the friend.tech sim swap

View on Reddit →

People getting sim swapped and drained in friend.tech, be careful

https://x.com/darengb/status/1709021872178729409

I was just SIM swapped and robbed of 22 ETH via @friendtech

The 34 of my own keys that I owned were sold, rugging anyone who held my key, all the other keys I owned were sold, and the rest of the ETH in my wallet was drained.

If your Twitter account is doxxed to your real name, your phone number can be found, and this could happen to you.

Earlier today I started getting spammed with phone calls every minute, which caused me to put my phone on silent (which I guess was the point) so I did not see the text from Verizon telling me that someone was trying to access my account. It happened very quickly, Verizon barely gave me any time to respond.

I opened FriendTech and thought there was a bug because my Chat was empty, I tried looking at Octav and then saw someone else’s tweet about SIM swapping on FT and that’s when I realized what had happened.

Tagging anyone who held my key here, I’m so sorry about this, I know that it looks like I rugged you all, and I’m not sure how to prove that I did not. I am devastated.

https://x.com/zachxbt/status/1709031117121003710

got swim swapped for 20+ ETH (they drained my http://friend.tech)… stay vigilant out there bros

set a PIN on your sim even if you don’t think you need to

sorry for the x links, it’s where i saw it

u/reno007 starts a conversation on the next big use case to drive value to ETH with a lot of amazing replies

View on Reddit →

For those confident we’ll have another bullrun, what will drive the eth price up? Previously we had ICOs, then defi/yield farming and then NFTs. Is there anything left? Also fees will be lower due to L2s which may actually be negative for the eth price unless L2 activity goes 100x.

u/2Nice4AllThis has a motivational speech for us on our digital voyage

View on Reddit →

Hear ye, hear ye, valiant ethfinancers and mavs alike!

In the age where brave explorers charted unknown seas and distant shores, pioneers sought realms untraveled and dreams untold. So too do thee, devoted custodians of Ethereum, navigate a bear most relentless and the intricate dance of the crab market.

But be of stout heart! Though the bear casts shadows and the crab sidesteps, Ethereum’s beacon shines unwavering. As history reminds: after the stormiest nights, dawn’s embrace is most warm. Thus shall the Ether rise, unyielding and proud, amidst these tempests.

Stand firm, intrepid ethereans! Let not the market’s capricious winds sway thy resolve. As a new horizon beckons, Ethereum’s legacy shall illuminate the ages, its tale a beacon for all who venture in the digital realm.

In unity and steadfast spirit,

Thine ally in the digital voyage.

Week #37: September 29, 2023

Livestream Recording | No POAP

Weekly Doots →
Week #36: September 22, 2023

Livestream Recording | POAP

The morning trinity

View on Reddit →

u/ScribbleButter

Ethereum?

u/hanniabu

$1595

u/the-A-word

0.059

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Elliptic signing,

With or without mining,

Quietly shining.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 812,379 (+2,545)

Pending validators: Joining 27.2k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/PhiMarHal

View on Reddit →

Sing Muse, of Justin, brave founder hailed,

Who saw the crypto market begin to fail. As Bitcoin and altcoins together crashed,

Investors panicked, portfolios all dashed.

But Justin held on, like Atlas of crypto lore,

Supporting coins galore against all odds and more.

His steely vision and iron-willed determination

Gave desperate holders glimmers of elation.

When Bitcoin fell below 20K again,

Justin boosted morale, quelling women and men.

“Have faith!” he cried, “I shall stop this loss!”

Rallying his allies whatever the cost.

Across exchanges and threads Justin’s voice rang out,

Buying the dip without hint of doubt.

For the whole bear he carried the market’s weight,

Enduring the pressure of whales and fate.

So The Sun’s legend shall endure through the ages

For His Excellency fought market wages.

For crypto to thrive again as it one day must,

Stalwarts like Justin in it place their trust.

u/haurog shares the things he is looking forward to

View on Reddit →

ethfinance activity seems to be in a bear market as well and the crab gets to some people. Nevertheless, I still am very positive about the next few months in Ethereum. Here are a few things I am looking forward to:

u/nixorokish breaks the news of the staking deposit churn limit EIP being included in the next hard fork

View on Reddit →

The decision was made during the ACD call today to include EIP-7514 in Dencun, which sets a max churn limit for the activation queue (note: does not affect the exit queue).

What’s been happening up until now is that the more validators that are in the set, the faster they can get added (the math is here: https://benjaminion.xyz/eth2-annotated-spec/phase0/beacon-chain/#get_validator_churn_limit).

This keeps the network stable and makes the size of the validator set somewhat predictable. Since the validator set has been growing a lot since Shapella, this number is getting bigger and bigger and the network is growing faster and faster. EIP-7514 caps the number of validators that can be added each epoch at 8.

I believe that there could be some controversy about this over the next few days because it was created and added quickly but Dankrad published a post today on why he supports it and he says everything more eloquently and with more context than I could, so have a read of his post here: https://notes.ethereum.org/@dankrad/churn-limit

u/jenkempuffer shares an interesting new EIP

View on Reddit →

https://eips.ethereum.org/EIPS/eip-7503

This EIP is interesting.

Base layer privacy is definitely something that’s needed for adoption imo. Especially as forensic tools and tracking get better over time and transaction data remains on-chain forever it will be easier to dox and link wallets. Hard to see regular people wanting to use Ethereum if that’s the case.

Private ETH defs a good thing but maybe this EIP will introduce some additional risk (minting and burning ETH at base layer might have previously unthought of attack vectors). I’m not big brained enough to interrogate the code.

Anyone here have some thoughts on this EIP?

u/LowieVR starts a discussion about Ethereum’s long term future regarding ETH issuance and gets some great replies

View on Reddit →

Anybody got some wise predictions on gas fees in the future? Seems right now that gas fees are low, which makes eth inflationary, which makes it not a ‘sound business’ anymore according to https://tokenterminal.com/leaderboards/earnings in past 7 days.

u/cryptOwOcurrency warns of the latest trend in Twitter scams

View on Reddit →

Twitter scams are getting more and more elaborate.

The latest one is where they create a fake @MetaMask twitter account, then take a whole month to build up their post history by copying every post of the real MetaMask account. During this month, they also gradually build their follower count through bots. Of course, Twitter does not detect any of this activity as suspicious because they have entirely lost the plot.

If you were to glance at the twitter account, you’d see an account with tens of thousands of “followers” and a post history that scrolls on and on for many pages. Looks pretty damn close to the real MetaMask account.

Stay safe.

u/Tricky_Troll gives Gary the middle finger

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Gary Gensler is what is wrong with America. Here we have a man, who clearly has a good grasp on blockchain as evidenced by his history teaching it at MIT. Yet despite this, he decides to completely contradict his previous teachings in favour of at best furthering his own personal political ambitions and at worst outright corruption in an effort by an invisible hand to stamp out crypto.

Classic 4th turning and fall of empires stuff right here. The ubiquity of wealth and excess surrounding him and his generation throughout their lifetime has left those that wish to participate in politics and influence devoid of values upon which his once great nation was built. In place of these values are the primal instincts of greed, power, pleasure and self preservation which are the fruits which can be attained from corrupting such rich and powerful institutions. These people are devoid of morals and will lead us down the path towards authoritarianism and collapse as seen time and time again throughout history, Rome and Weimar Germany being the most obvious.

In short, fuck you Gary, this is all your fault.

^(Obviously there is a degree of hyperbole here as there are other factors at play too like demographics, but at the same time the writing is on the wall and despite having learned from history, I can’t wait to watch it play out in a very similar way again thanks to those who haven’t learned from history. While that may be a call for me to step up and try to be one of the great men in history, I’m not convinced that my qualifications are up to scratch. I should’ve studied politics or something.)

u/vedran_ checks in after a few months away

View on Reddit →

Yo ETH fam! I’ve been away from crypto for a few months, but not like I expect you to remember me. Today I’ve been scanning L2 landscape changes, DeFi and airdrop hunting possibilities.

Base took off fast, my golly. First in TPS today, third in TVL. How did that come about? Did they mention an airdrop? How stable is it? I get that fraud proofs are not developed yet.

I’m a fan of single-side LPing. No impermanent loss for me, thank you very much for offering. I see there are some new possibilities for it on zkSync Era: EraLend, Reactorfusion, ZeroLend. Cool! APY on ETH and USDC is <2%, but it’s nice to park some spare tokens, waiting for an airdrop.

Rhino.fi surprised me pleasantly. 10% APY on ETH in one pool. Left some ETH there a few months ago - I’m not disappointed.

I’d like to use this opportunity to thank Optimism!

I see it’s a bit gloomy in here. As somebody who’s been in the game for quite a while now - this is the easiest bear ever! We are above 2018 ATH ^^if ^^you ^^ignore ^^inflation. But most importantly, development is phenomenal! L1s becoming L2s on Ethereum! You mentioned Canto, Celo, Fantom, Gnosis yesterday. Just waiting on Solana and Cardano to pull the trigger. Ethereum has become what it promised to be. Front page of L2beat is a thing of beauty! We are cemented, baby! This may very well kill ETH killer narrative in the next bull.

u/LogrisTheBard continues his detailed discussion of governance tokens

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I wrote recently about multicameral governance designs. The responses that have come up in response to that post have taken 2 forms:

  1. Isn’t this going to devalue the governance token? What is the point of a governance token that only has a minority power over governance? I talk about that here.

  2. Voter participation sucks and we need to concentrate power to make anything work around here. Let’s dive in to that.

Most DAOs today have a voter participation rate of less than 20%. Even when delegation is supported the delegates themselves aren’t all particularly great at participation and need a cat herder to get much done. The exceptions to this rule are DAOs where there are regular votes and where voters get paid extra by voting.

Two examples that come to mind for this are Kyber Network and Curve. Kyber Network directly rewards voter participation. You can see the rewards for current and past votes here. Curve is a bit more indirect in that only a subset of governance decisions come with monetary compensation and that compensation is indirect through bribes. This one is a more complicated topic I dive into a bit here.

An interesting footnote about the Curve participation is the ve system and admin fees that are optimized by pairing veCRV with liquidity has led to liquid lockers (yCRV, sdCRV, cvxCRV, etc) to optimize revenue. These liquid lockers have a side effect of concentrating voting power. As a consequence of that Curve has outstanding voter participation amongst its tokens but a relatively low Nakamoto coefficient.

One clear lesson that stands out from both of the above examples is voters participate better if there are regular votes that they are paid to show up and participate in. Outside of the obvious incentive alignment that comes with compensating voter participation, voter participation increases when:

  1. Voting is cost-minimized

  2. Their vote is perceived as being more impactful on the outcome

  3. They have something to lose

Drawing a parallel to elections to nation states. US voters are more active when:

  1. Their state supports voting by mail and other mechanisms to make voting more convenient

  2. They live in a swing state or a state without first-past-the-post electoral college rules

  3. They are voting on an issue that affects them more personally (e.g. women vote more actively when abortion is a hot topic). Bribery is seasonal along the same lines (e.g. the NRA donates more when gun rights are a hot topic).

For blockchains, cost minimization is a matter of off-chain message signatures rather than L1 transactions like Maker has. There’s not much we can do for the second point without concentrating power and sacrificing voter participation but contentious votes having higher participation is a natural phenomenon.

The last thing we can do is create something to lose for each vote. This comes in two flavors. First, we can use bonded KPIs to attach something at stake to each vote. The basic concept of a bonded KPI is simple. You bond your influence against a prediction during a commit round each cycle (e.g. quarterly, yearly, etc). The bonded influence is the only influence eligible to vote. Your vote goes into effect immediately but your prediction is kept secret during the cycle. At the end of the cycle, everyone reveals their prediction by posting a decryption key. Then a decentralized one-shot oracle like UMA provides a value for the metric. The bonded influence is redistributed based on the relative accuracy of everyone’s predictions. Finally everyone claims their influence from the bonded KPI and the next cycle begins. The result is that influence will trend towards those best at making predictions. I suggest the skill of making accurate predictions is correlated with competence at voting well. When combined with a value-aligning selection criteria for initial influence to bond, we end up solving the stated goal of selecting a rational, informed, value-aligned set of voters that vote on the most important issues of the day.

This system breaks down where someone can have enough influence over the metric to predict that very bad things will happen, ensure they do, and be rewarded for doing so. This is similar to how “assassin” prediction markets work or why we don’t let athletes bet to lose their own match. In that case I’d suggest the DAO might just have to dissolve that governing body and form a new one without that bad actor. It’s a thorny problem for sure.

The second flavor is an inactivity leak for not voting. For tradable tokens this isn’t viable unless you somehow ensure all forms of LP token (e.g. Uniswap NFTs, Aave aTokens, etc) are also eligible to vote. However, this system is more viable when influence is not an ERC-20 token. In that case, getting influence in a governing body is a bonus perk of something external to the governing body. Once you’re in, unless you’re doing active work for the governing body your relative influence should decay. In broad terms the active work of a governing body is to continually do the things the issuance selection criteria select for and to vote well. I think it’s therefore fair that if someone is voting poorly (see KPI above) or not using their voting power regularly they should lose that influence. A DAO is ill-served by having a large voter base of inactive/inattentive voters, even if they delegate. Measuring voting activity is much easier than measuring vote quality.

An implementation of inactivity could resemble something like Ethereum’s where the higher the percentage of the existing voters are inactive the higher the turnover of influence should be. This creates something of a market-based approach to encourage voter participation. The end result is create higher turnover of the governing body to one consisting of active participants and then to pay them for the hard work of voting well. By the numbers we have, this is how you actually build a DAO and not just a fundraising mechanism.

u/ajmonkfish shares an article from our very own u/pbrody

View on Reddit →

Great little article by u/pbrody on coindesk today.

https://www.coindesk.com/consensus-magazine/2023/09/19/eventually-we-are-all-ethereum/

TLDR; All your chains are belong to us, om nom nom.

u/PhiMarHal summarises a tweet thread on the Lido problem

View on Reddit →

This tweet by Ryan Berckmans is a great summary of the Lido situation, in my opinion.

https://twitter.com/ryanberckmans/status/1704192307270975643

It boils down to two logical inconsistencies:

  1. no CEX is in the run to dominate staking. Data doesn’t support that theory. To assert it as fact is gaslighting.

  2. if a winner-takes-most structure is inevitable, why is Lido spending enormous LDO bribes through the entire ecosystem to this day?

The data here is even more damning than for CEXes. No LSD is a credible competitor to the tune suggested (a winner-takes-most scenario does not merely imply a competitor would catch up, it would also suggest that competitor’s size towers over Lido at least to the current extent Lido towers over the competition).

As long as those logical inconsistencies are core points of the Lido thesis, there is a problem with Lido.

Week #35: September 15, 2023

Livestream Recording | POAP Checkout

Announcements - Tickets for Staking Gathering at Devconnect Istanbul are now available featuring speakers such as Danny Ryan, Justin Drake, Sreeram Kannan, Michael Sproul, Jim McDonald, and many more.

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/alexiskef

1629

u/696_eth

0.061

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

There’s nothing to hide,

Privacy can’t be applied,

As you’ve never lied.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 796,700 (+2,353)

Pending validators: Joining 36.2k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/cryptOwOcurrency

View on Reddit →

Vitalik’s twitter account was hacked. It’s all over. Everyone please start panicking.

This is lesser-known, but Ethereum’s consensus mechanism depends on a Twitter integration with Vitalik’s account, so it’s likely the Ethereum chain will halt within a few hours. I don’t know if the client teams will be able to implement a workaround for the Twitter dependency in time - Ethereum’s Twitter integration was supposed to be removed as a vestigial feature in the Merge fork but I guess the devs didn’t get around to it.

I really hope Charles Hoskinson still has access to the manual override key and is willing to use it to recover the chain. The only other person I know of with the Ethereum admin key is Sam Bankman-Fried, and he won’t be able to save us this time for obvious reasons.

If we can’t get either of those admin keys, we’ll have to ask Elon Musk to go into Vitalik’s account to turn Ethereum off and back on again for us. Please send thoughts and prayers everyone. ❤️

u/SikhSoldiers points out that Lido is going against one of its core principles set forth by Paradigm

View on Reddit →

It boils my blood that @LidoFinance thinks fit to go against one of the founding lido principles set forward by @paradigm.

Governance is and always has been the existential risk that Lido presents. Dual governance is a bandaid solution, not any kind of permanent one and is very fallible.

As long as LDO governance can control the validator registry, LDO should not exceed roughly 33% of the network. There is no hard line here because the threat isn’t based on any hard line.

The threat is that LDO slowly gains a subversive power over Ethereum due to its ability to threaten node operators with the boot, a very powerful threat that @gakonst rightfully points out all those years ago.

The staking router and the coming forced exits upgrades will further exacerbate the issue. Both will increase the power of LDO token holders over the node operators. Forced exits especially worries me as it has been touted as their solution for keeping their permissioned node operators in line.

Governance is a weakness, the existence of a threat is the problem itself. We cannot rely on LDO holders to be good stewards, not even with stETH veto power.

The apathy and bureaucracy of DAO governance is too powerful a deterrent for vetos to reliably work. The only solution is to remove the threat completely.

Georgios goes on to write “If said pool is sufficiently governance-minimized, it could possibly win the entire market without causing any systemic risk for Ethereum.”

Where’s the minimization frens???

ln April of 2022 I published a now deleted thread called “A Case against stETH” where I explained why neither DVT nor social scores for permisionless node operators would work to scale their node operators set fast enough for the rate that they were growing their stake.

The entire thread stands true today. The recent @NethermindEth report suggests using a Kleros court to judge Sybil cases. That’s a joke when nation states are out here human trafficking and dedicating billions to hacking/exploits/evading Sybil detection. If Lido messes up their Sybil implementation, we could find ourselves with 10-15% of all Eth staked sitting in North Korea in a Sybil farm of node operators with 0 capital bond.

Lido should self limit not because of any consensus attacks, they should self limit because $stETH is growing faster than they can decentralize and research ways to safely introduce permisionless nodes without jeopardizing the network.

Don’t let their campaign fool you, @LidoFinance has not shed any of its governance functionality—in fact it plans on growing it.

This is the danger of $stETH dominance.

https://www.paradigm.xyz/2021/04/on-staking-pools-and-staking-derivatives

https://web.archive.org/web/20220414205449/https://twitter.com/Jasper_ETH/status/1514708562244784131

u/benido2030 shares their favourite recent podcast episodes

View on Reddit →

+++ Benido’s favorite podcasts episodes +++
Some weeks ago I started publishing some podcast recommendations featuring interesting episodes. Since I enjoy podcasts I thought it might be a service to the community to highlight those I really liked (or maybe disliked? Let’s see what the future brings). It’s not a real summary, so if my thoughts make you curious, you might want to jump in to listen to the full episode. They are always linked in the headline.
Here is a list of all the past posts:

Benidos favorite podcasts no.1

Benidos favorite podcasts no.2

Benidos favorite podcasts no.3

Now here are the new ones I really liked from the past couple of weeks. Interestingly they are all very technical and let me be honest… I sometimes couldn’t really follow the guests/ hosts. I think they are all great, but in these cases I would really recommend taking some dedicated podcast time with 100% focus.

Bankless: Scaling Ethereum To The Next Level with zkEVM feat. Justin Drake and Brian Retford

Maybe you remember a post from u/liberosist talking about the different types of zkEVMs there are (I tried to find it but couldn’t). This podcast basically talks (partially) about this. Since this is fairly technical topic, it’s moderated by Justin Drake and RSA is more or less downgraded to listener.

This includes how L1 might become a zkEVM in the future based on some of the developments in the L2 landscape and the positive side effects this might have (e.g. lower hardware reqs for validators).

I think this episode is pretty good and a great addition to the sci-fi roadmap episode from ethcc since it’s very forward looking, but in the end this is why we are here, right?

Epicenter: Frontier Research - Solving Ethereum’s MEV Problem feat. Stephane Gosselin

This episode is a pretty good one if you are into MEV. Stephane Gosselin was one of the flashbots founders and has left the project some months ago. In this episode he talks a little about the MEV landscape, his impact and how he would rate it (interesting answer here!). On top he gives some insights into his new venture “Frontier Research”.

One major topic is RFQ = request for quotes and intents, but they also tackle PBS, MEV burn etc.

I think you need a pretty decent understanding of MEV to be able to follow this episode. If you do, this is 60 minutes+ of very good content, especially since Stephane knows flashbots, but is not 100% aligned, but going down a new (and much needed?) experimental road.

Uncommon Core 2.0 - An Incomplete Guide to PBS feat. Mike Neuder and Chris Hager

PBS or proposer builder separation has been around since a year or so. This episode features Mike Neuder (from the EF) and Chris Hager (from Flashbots), which is a pretty good panel since it the main parties involved came together.

The first hour or so is a discussion, the second part is a followup discussion with only Hasu and Jon. My take away: PBS is a design philosophy/ space. What does this mean? When I first learned about it I basically thought PBS was designed, the scope was clear and we only needed implementation. I think the conclusion after this episode is that this is not the case. There are a lot of different implementations possible and it’s not even clear if ePBS (enshrined PBS) is the way to go.

u/eth10kisfud since we talked about MEV burn yesterday. This is the episode that led to my answer.


Benido, this sucks, this is all so technical, why didn’t you include a podcast I can just listen to on my way to work or in the gym and if I blink I can just continue listening? Well I am glad you asked, because I got you covered!

Bonus: The Chopping Block - Coinbase’s Paul Grewal on Why the SEC Is Going After Crypto So Aggressively

This Chopping Block episode is a pretty good summary about “The SEC vs Crypto and Coinbase”. I liked it a lot because I think Paul Grewal is a pretty cool guest (Paul is Coinbase’ Chief Legal Officer) and he pretty transparently explains why Coinbase acts in the way it does.

I am not sure the speculation about Gary Gensler’s motivation is the best approach, but the rest of it is a very good summary and includes some industry insights that I think are a very interesting and if you didn’t follow as closely this episode is the one you wanna listen to.

This is it for today, but I already have picked one podcast episode for the fifth edition! Let’s go!

u/Newman513 talks about methods to mitigate issues from the ever growing validator set

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See some chatter in here today about the late-stage proposal to limit the validator churn limit for inclusion in Deneb. I’ve been following this relatively closely since I think that this has the potential to brew into a CAT5 storm for the 250 of us that are terminally online and plugged into Ethereum development drama.

I first became aware of “the issue” during ACD 113 (bad news always comes on the 13th) - tl;dr on the issue (parroting Christine Kim, because she can summarize better than I can):

A large validator set size is undesirable because this increases the computational burden on validator nodes and creates complications for implementing future code changes such as single slot finality.

Without a countermeasure in the next 9-10 months to address validator set size growth, @mkalinin2 said that the computational load on nodes could increase 3x with the increased volume of messaging on the networking layer.

What are some possible solutions?

Looks like option 3 is being pursued in the short-term, if only to buy more time. I think that this is a phenomenal example of just how fragile Ethereum is, and why even 7+ years in it’s critical to be mindful of introducing systems on top of the protocol that bring with him considerable unknown unknowns! Think Eigenlayer - love the potential innovation, but a stage-gated slow rollout to understand the intricacies of the interdependencies that new primitives introduce is preferable to me, and I’d argue responsible, particularly when building on top of something so unsteady that’s managed to command as much economic importance as Ethereum has since it’s inception.

Will get off my soap box - y’all are on the same page. Hopefully the summary & sources are helpful!

https://www.galaxy.com/insights/research/ethereum-all-core-developers-consensus-call-113/ https://twitter.com/christine_dkim/status/1679873847665868800 https://www.galaxy.com/insights/research/ethereum-all-core-developers-consensus-call-117/ https://twitter.com/philngo_/status/1699805844748030383

u/LogrisTheBard has another great discussion on DAO governance

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I wrote recently about multicameral governance designs. The responses that have come up in response to this post have taken 2 forms:

  1. Voter participation sucks and we need to concentrate power to make anything work around here. I’ll address that a bit in a different post.
  2. Isn’t this going to devalue the governance token? What is the point of a governance token that only has a minority power over governance?

I’d like to take a few paragraphs to discuss what I think the rights and responsibilities of permissionlessly tradable governance tokens should be in a multicameral governance structure.

Among most modern DAO designs there is usually a singular governance token. This token usually serves two purposes. The first, as the name implies, is it acts as a force in governance. The second is it serves as a fundraising tool potentially by multiple mechanisms such as ICO, bond, inflation schedules, or call options. There are a few other minor uses as well that I go into here. When people buy this token they do so with the expectation that they have a claim upon the future profit of the system the DAO governs. Ultimately, greed fueled speculation is what gives governance tokens most of their tradable value.

The abysmal governance participation we see for most DAOs today is a strong indication that the governance power of governance tokens is not the primary source of their demand. Therefore, adopting a multicameral governance structure and diluting this governance power should not overly affect the usefulness of a governance token as a fundraising mechanism.

That said, care must be taken to protect the contractual rights of the governance token for its primary purpose. If clarity on this is not provided, investor confidence will wane, and the DAO will quickly find itself unable to raise funds by issuing tokens. At that point the DAO either must have a self-sufficient product, rely on charity from necessary participants, or watch as necessary participants stop doing their necessary work and the system fails.

One guarantee the DAO can provide to the governance token holders is to escrow the treasury funds directly within the governance token governing body (the capital module). System profit should be automatically sent to the treasury. At minimum, since each governing body controls its own state, this gives the token holders the ability to revoke token approval to these funds to the parent DAO. This guarantees those token holders a contractual right to the treasury should the DAO dissolve or they want to revolt. All they have to do is pass a policy to pay out the treasury to themselves.

Another guarantee the DAO can provide the governance token holders is to make it very difficult for the parent DAO to change any fund flow related policies without their approval. The capital module needs to have confidence that their power over the purse can’t be whimsically revoked. Different types of proposals in the parent DAO can potentially have different rules required to ratify them. This is also consistent with granting governance power over topics to those it affects the most. The governance token holders are those most affected by changes to monetary flows and should have a greater say on changing certain parameters related to that than other governing bodies. This satisfies a design goal of fairness.

The last guarantees all come from the ability of each governing body to maintain its own internal state. The parent DAO can only invoke functions on the governing body contract that it allows. Any control over these matters the capital module grants to the parent DAO are inherently revocable. This gives the capital module ultimate control over the issuance of the governance token and all matters dependent on that such as how to incentivize liquidity depth for the token, how to structure bonds, its inflation schedule, etc.

In summary, it is my belief that so long as the governance token holders have faith in the future revenue of the system and their claim right to it the token should retain value. So long as it has value it can serve its primary purpose as a fundraising mechanism. I don’t believe diluting the governance power of these tokens will destroy their value, but I do think it can lead to a DAO that is more resilient and likely to succeed in the long term for reasons stated in my previous post. The main ingredient we’re missing to try this somewhere is a guinea pig and a fairly small software package. I think it’s a much better direction than what Rune is doing to Maker with “neural tokenomics” for example.

u/somedaysitsdark starts a discussion after a recent block proposal

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I posted this to the EVM discord, but figured it would be healthy to blast here too:

I proposed my fourth block recently 🥳. But because my mev-boost min-bid is set to .05, if I don’t receive any bids higher than .05 my client builds the block itself. That is working fine, so far 3/4 of my blocks have been homemade. But, my most recent block had my first tornado cash transaction in it.

I’m just annoyed by regulatory lack of clarity on whether or not I should care as a US operator.

I could run mev-boost with no min-bid and point it at only ofac compliant relays is what the government might say in the future?

What happens eventually once we have proposer builder separation? That’s the plan right? I’m not super familiar with how that works.

If US validators ‘currently’ aren’t held to KYC regulations- which I believe is accurate, then we shouldn’t care at all even if someone wants to transact with an OFAC-list address? Maybe that is a bad assumption.

If I need to be OFAC compliant, then I need to know for sure. That way I can either just do it, or move my server out of the country? Would that even be sufficient? Even Coinbase still validates non-compliant transactions, or so I’ve heard, I haven’t actually confirmed this. I’m gonna go look.

According to this blurb, they run some validators without mev-boost deliberately to prevent censorship: https://www.coinbase.com/cloud/discover/news/earn-pbs-enabled-mev-rewards-with-coinbase-cloud

Prime and retail Coinbase users are opted in to mev-boost automatically btw.

Just starting to peep etherscan to see what the big exchanges are doing:

Recent Kraken block (18122994) with tornado cash transaction

Recent Binance block (18121064) with tornado cash transaction

Recent Coinbase block (18120973) with tornado cash transaction

Most I’m finding are Lido blocks, but that is hardly surprising.

u/TheHansGruber and u/FutureofEverythingz checking in from Permissionless 2023

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u/TheHansGruber:

I’m here. Venue is awesome, probably a little bigger than necessary but it’s better to have the space then not. The main talks haven’t had any real alpha so far, lots of wagmi and “down bad, haha” talk. The regulatory panel was fun to watch, but again, no pertinent info was learned. It was inferred that for any reasonable change in the regulatory situation, Gary would litteraly have to just wake up on the “right side of the bed” one day. And no one on the panel suggested they thought it was likely. Legislation (in the US) needs to be passed. Rep. Emmer was hopeful on this.

Swag game has not been as good as ethdenver or devcon. But we are in the depths of the bear, so…..

Rainey street crawl was last night. I’m not a bankless citizen so I didn’t go to their closed event. Had a Hella good waygu smash burger at a place across the street though.

Overall, it’s still fun to be spending a few days with so many like minded people in a fun town. Bear market conferences are the best for this reason. Only the real degens are here. If any actual news or info is discovered I’ll be sure to drop it in here.

Next year’s permissionless is on the books for October 9th-11th 2024 in salt lake city.


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u/FutureofEverythingz:

Hanging out with u/the-A-word and u/jtnichols at Permissionless II. Taste testing some early offerings from JT’s smoker and talking DAOs, solo staking, and the history of r/ethfinance. No reason to go to the main event like I planned, too much fun.

👋 I’m a 🇨🇦 and longtime ETH community member currently building sobol.io Also am early contributor to BanklessDAO plus tons of other DAO communities (total DAO need).

Nice to find the daily because my Twitter feed is pure noise. Thanks for the gift of gud BBQ and good vibes today 🙏

u/asdafari12 comments on the pros and cons of possible government actions

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I would rather the US not allow spot ETFs than red-tape defi, which is basically what is happening with the proposed rules that are perhaps impossible to follow. ETFs are probably great for price action but they aren’t crypto.

I remember how excited I was in 2020 about synthetic stocks, defi, insurance, gambling and other use cases happening on Ethereum. Now we know that synthetic stocks are a massive regulatory no-no. I am overall happy about what is possible in defi but it looks like all frontends will require KYC in the future (for US users at least). We are lucky that an exception was made for validators. They wanted KYC of all TXs, which is obviously not possible. That’s one of my issues, it has become obvious that regulation doesn’t come from a fair, logical and neutral point. It’s a bit of a circus and impossible to guess what will come.

u/alexiskef introduces MetaMask snaps

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🦊 I just got a Metamask email, informing me that Metamask Snaps Open Beta is live!

🔥 Here is the announcement on the MM Blog 🔥

MetaMask Snaps allows users to customize their MetaMask wallet. But what is a Snap? Individual Snaps are features and functionalities created by third-party developers that you can install directly into your wallet.

Metamask says that: All Snaps available in the directory today have been audited by the Metamask team and third parties. Our decision to have an allowlist was made both out of an abundance of caution, and because we have ideas for how to add additional safety for a permissionless model that will take longer to implement. Over time, we plan to open up the auditing process to create a fully permissionless platform."

More info can be found on the Snaps FAQ

Users can now install 30+ Snaps across three main categories:

1)Transaction Insights

Saferoot, Assets Risk Detection, Forta, Kleros Scout, Threat Intel, Blockfence, Wallet Guard,Tenderly TX Preview

2) Interoperability

Solana Wallet, Algorand Wallet, Sui Wallet, UniPass, StarkNet, EthSign Keychain, Tezos Wallet, Leap Cosmos Wallet, Connect by Drift, Vega Protocol, CubeSigner, MinaPortal, Aptos Wallet, Rarime, Cosmos Extension, Identify, Masca, Arweave Wallet, Zion, Partisia Blockchain, ShapeShift Multichain, Sign in with XMTP, Casper Manager

3) Notifications

Walletchat.fun, Push V1

edit: tried to install Forta, failed. Tried to install Arweave wallet, worked flawlessly!

u/haurog looks into the future of Gnosis chain

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Some time ago we had a discussion here about gnosis chain and its future. Today I watched two talks from DAPPCON23 by two gnosis developers/researchers. They seem to look into possibilities of becoming a validium L2 to Ethereum. This is all very exploratory and nothing has been set in stone. As far as I understand they could write checkpoints to Ethereum and keep the validators as is for data availability. This seems to need a lot of more work and especially making it trustless seems to be a bit tricky. The approach they are looking into now seems to be more taxing to the validators as they would need also need to be able to verify the Ethereum chain at the same time. There seems to be some ways around it though. Ethereums future looks quite good to me, everyone thinks about becoming a rollup/L2.

The first talk is by Philippe Schommers and talks generally about the future of gnosis chain towards the end he talks about possibilities of turning gnosis chain into an L2.

The second talk is by dapplion which describes in detail the approach they are looking into at the moment.

I hope the youtube links work as the videos are still streaming youtube seems not to like to link to a timestamp directly. It worked for me.

Week #34: September 8, 2023

Livestream Recording | POAP Checkout

Guest appearance by Lantern Finance, a KYC American-based staking provider.

Upcoming Guests

The morning trinity

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u/hehechibby

Ethereum

u/UgotTrisomy21

$1649

u/Vinegar_Strokes__

0.0627

Weekly Haiku: u/Jey_s_TeArS

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Ever since the merge,

Block production converge,

Distrust too may surge.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Active validators: 780,933 (+2,004)

Pending validators: Joining 44.4k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/-FilterFeeder-

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There once was a burly crustacean

who would not brook a price aberration.

It made the charts boring,

so instead of just snoring

I packed up and went on vacation.

u/barthib shares some big news which was almost missed by this sub!

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This forum must be very dead to totally ignore this nice news:

U.S. Court calls ETH a commodity while tossing investor suit against Uniswap

u/MinimalGravitas posts their idea for reducing Lido risk on Ethresear.ch and u/nomad-nuance replied with their thoughts

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u/MinimalGravitas:

I’ve finally turned my idea for reducing the risk of Lido’s dominance into a post on Eth Research:

https://ethresear.ch/t/reducing-lst-dominance-risk-by-decoupling-attestation-weight-from-attestation-rewards/16523

Have never posted anything in the ‘proper’ Ethereum forums before, and so feeling very intimidated. Thank you to those who gave me confidence that it’s possibly not a completely moronic concept!


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u/nomad-nuance:

My biggest issue with this is they could get rich quicker, then flip to control ethereum quicker and or after something goes wrong for them

You need to add something that stops that possibility imo

Something like locking in some or all of these mega validators stake for that extra reward, so that they are basically in service to eth in order to continue earning rewards to make back their locked stake.

And even with that, that semi only puts the problem back 20-50 years imo

Mostly thinking about 3% apr (y?) and also they would likely have to pay back their customers?

u/tricky_troll my man has it been 10 days?

u/Set1Less shares MakerDAO’s latest questionable move and u/hanniabu adds on by criticising the move

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u/Set1Less:

MakeDAO wants to launch their own chain….and its a fork of SoLaNo. Lol

Honestly thought it was parody at first.

https://forum.makerdao.com/t/explore-a-fork-of-the-solana-codebase-for-newchain/21822


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u/hanniabu:

Maker is a husk of its former self. Rune can’t help but introduce more and more centralization. The endgame is value capture.

The most important reason for why NewChain is needed, is that it will allow the ecosystem to use hard forks to gracefully recover from the most severe form of governance attacks or technical failures.

Ah yes, lets move to a LESS SECURE chain to protect against governance attack 🤡

The second reason is that the Solana ecosystem has proven its resilience

This keeps getting better, all that downtime really prove ReSiLiEnCe

The third reason is that there already exists examples of the Solana codebase being forked and adapted to act as appchains

There already exists examples of rollup codebases being forked and adapted to act as appchains

u/Syentist explains why he is surprised that there hasn’t been more eyebrow raising in response to Maker’s recent move which effectively made them an unregistered money market fund

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Maker has deposited north of $1.2 billion of the $ backing DAI into US treasuries. The yield on the US treasuries is paid back to DAI holders who have deposited to the DSR contract. That is a near text book definition of a money market fund, except an unregistered version.

“But KYC is inherently evil. We should fight it when we can”. Ethereum already allows for two people to send and receive ETH with each other (=to transact) without intermediaries and without KYC. But if you are literally investing in a financial instrument offered by the US government, it’s hard to understand why we can or should bypass clear cut laws which exist for the rest of the members of society.

And the absence of KYC is only a small part of the problem to me. The bigger part is the pure unregulated nature of this enterprise. Rune is one acid trip in the Himalayas away from suddenly deciding the solution to world inequality is to arbitrarily donate half the USG bonds to some charity. I’m not joking - the Maker core team is, at best, chaotic neutral, with emphasis on chaotic. It’s insane for a $4.5bil stablecoin to rely on a group of centralized chaotic actors. And this is where registration of money market funds comes into play. You have designated legal responsibilities to core organisational members who’s details are known to the feds, you have clear auditing rules and what can and can’t be done with customer funds, and customers have clear legal recourse if or when the custodians behave outside of these narrow rules. Right now, DAI holders get ZERO of those clear cut protections.

And lastly, NONE of this fits within the original ethos nor objective of Maker, as an Ethereum centric decentralised stablecoin. Nothing in today’s Maker is decentralised nor fitting the core ethos of Ethereum, despite the team and the project having leached off credibility from the Ethereum ecosystem to bootstrap themselves to the current position as a major defi protocol. For example if Jump or Binance came up with a protocol with similar shenanigans to that exhibited by Rune and Maker today, it would at best, be a short term pump and dump excercise, not a protocol which attracts and retains billions in TVL over a long term. The only reason Maker manages to do that is because it managed to successfully leach credibility from the Ethereum ecosystem, before pivoting into the present circus. /end rant

u/coinanon updates us on account abstraction standards

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I’m trying to understand the current state and the near future of account abstraction. From what I understand, there are two competing standards: the Safe (formerly Gnosis Safe) architecture and the newer ERC-6900 architecture. Having one standard seems important because it will enable dapps and developers to create plugins/modules for AA wallets (automatic DCA, freeze certain assets, spending limits per “session key”, etc).

It’s very cool and I believe that it has a future (especially on L2s with cheaper fees soon), but which architecture will win? The Safe team is well-respected, but it sounds like ERC-6900 has some advantages.

Does anyone know the latest? Is the developer mindshare leaning one way right now?

This was a good primer on the different architectures: https://mirror.xyz/konradkopp.eth/7Q3TrMFgx2VbZRKa7UEaisIMjimpMABiqGYo00T9egA

u/nixorokish rebuts a pro-Lido argument

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nonsense.

The counter-argument here is of course that threatening to throttle and/or fork out Lido, if it doesn’t adhere to the will of a handful of core devs/researchers/influencers, is the surest way to kill any notion of better and safer property rights

Psyops to convince people that the “will of the people” is to hand over governance to Lido DAO when not even a supermajority of LDO token holders really want this (https://twitter.com/DrNickA/status/1697610036841726414) - the delegates who vote with the most LDO just overshadow everybody else

Sacha is trying to paint “a handful of core devs/researchers/influencers” as an elite group trying to maintain power. In reality, these are the hundreds of people who are building the Ethereum protocol layer and are trying to make it impossible for anyone to capture the Ethereum consensus layer. Like I said, psyops.

My personal perspective here is that it would be extremely irresponsible for Lido to gain a dominant market share without first significantly improving its resilience to long-term tail-risks – and reducing the impact of those tail-risks on the Ethereum protocol

“Yeah for sure Lido in its current form shouldn’t control Ethereum. But I think it eventually should and will, it just needs some tweaking before it’s ready”

I think it bears repeating here that Lido is not a single entity. It is a co-ordination layer between a multitude of stakers and node operators.

It is 31 operators who can be removed at any point by one entity: the Lido DAO. Which is swung by a few majority delegates. Many operators receive a significant portion of their income from being Lido operators - the threat of losing this income is a source of influence you can’t ignore.


Sacha’s whole deal is coming up with long-winded posts that masquerade as research to justify Lido DAO governance expansion. Start with a conclusion and build arguments to meet up with it. He writes in a way that often impresses people into thinking it might be a good argument but he never actually gives us new information - he’s not looking for an answer or doing research, he’s just finding new ways to say “It’s okay for Lido to eventually become the middleman between you and Ethereum.”

u/696_eth made a big step in their solo staking journey - they made a beacon chain deposit!

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Staking: Finale

I’m proud to say that I’m officially a Beacon chain depositor!

I started my journey in late November, early December last year. After researching and getting all the parts and setting up NUC I took quite a long pause. It was still on my mind even though I wasn’t following through with that. As I finished addressing more critical priorities in my life earlier this year I knew it was the time to do it. It looked honestly impossible but I trusted that with the help of this community, EVMavericks and my friends that I would be able to achieve the feat! Staking aligns with my long-term financial goals as well as with with the future of Ethereum that I want to see and I wanted to do my part. Running minority clients too to promote the health of Ethereum.

Big thanks to Haurog for basically handholding me, thanks to everyone here and EVMavericks discord for answering my many newbie questions, shoutout to Ethstaker for helping me out too, also to a few of my friends from the Dopest private chats and to so many other people who were willing to lend a hand but I already had enough support. I took my time to understand, learn, experiment and to feel relatively comfortable. I’m sure it’s not fully done yet as I might be sweating when I pass the entry queue but so far everything has been looking good. There’s still a few things to set up bandwith wise for me and in terms of how to monitor (so far I have grafana and just look at beaconchain site).

Not sure what else to add but if I remember something I’ll add later. if you also have questions, lmk!

Can’t wait for my money printer to go brrrr and print me blocks w 69E rewards!!!

u/PhiMarHal outlines a big opportunity for web 3

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Google lets scammers buy adspace and makes no effort to moderate this.

Twitter is letting spambots run free as long as they pay $8 for a blue checkmark or $1000 for a gold one.

Discord is adding a feature to let you hide links so they redirect to a different place.

There is a fundamental incentive problem with the law ruling big service providers should have no accountability whatsoever for the content they host. Let criminals use your platform AND get paid for it? Why shouldn’t they take that deal.

This is especially inane when said platforms do take moderation actions for various ideological or political motives. You’re either a neutral service provider, or you have administrative rights and exercise editorial content. Can’t have both. In the latter case, you should be help responsible for your content, and sorry but not sorry if this doesn’t play well with big-tech business model of harvesting value generated by user content while running only minimum human intervention.

There is an obvious answer here. If these platforms were run as credibly neutral infrastructure, as part of distributed ledgers nobody can unilaterally censor… Those laws regarding lack of accountability would make sense.

The mainstream Internet as it exists today makes no sense as web2 whereas it would be sensible as web3.

u/ThatGuyThatGuyThagay brainstorms some solutions to the Lido problem and u/cryptOwOcurrency adds to it with a great reply

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u/ThatGuyThatGuyThagay:

I see the solution to Lido problem as follows:

  1. Reduce the advantage of pooling by burning MEV - all validators, get equal beacon chain rewards. Solo validators have advantage over pool, because of LST fee.

  2. Protocol level smoothing of block proposals or similar, same way in PoW, people use pools not because it gets the bigger rewards, but because they get them more consistent.

  3. Make solo staking more accessible. (how comes there is still no double-click executable on windows that get you staking in no time? Even shitcoins have them).


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u/cryptOwOcurrency:

Protocol level smoothing of block proposals or similar, same way in PoW, people use pools not because it gets the bigger rewards, but because they get them more consistent.

Block proposals themselves really don’t earn a lot of consensus income - only about two weeks worth of attestations.

Once the impact of MEV is removed from proposal income (due to MEV smoothing pools and/or MEV burn), I don’t think block proposals will need smoothing. That’s a good thing!

Make solo staking more accessible. (how comes there is still no double-click executable on windows that get you staking in no time? Even shitcoins have them).

I agree on this. Back in the early days of Bitcoin, I used to keep my Bitcoin client running in the background to help provide bandwidth to the network (and keep my wallet in sync!). You would just double-click the Windows executable and then forget it in the system tray. GPU mining was like that, too.

It should be just as easy to stake on Ethereum. The process should go like this:

  1. Double click installer exe. Install.

  2. Run. Wizard prompts you to choose consensus and execution clients, with a short blurb about each one and a note about client diversity.

  3. You get kicked out into the main UI. Your clients are now syncing. There’s a little progress bar that shows how long till they’re synced enough to be staking-ready.

  4. When sync is done, you click the little “plus” button at the corner of the main UI, to add new validators.

  5. (For first time adding validators only) - Wizard generates staking seed phrase, prompts you to write it down, forces you to retype it.

  6. Wizard prompts you to enter the amount of validators you wish to add, previews how much ETH you need.

  7. Wizard prompts you for the withdrawal address you want to use for these validators.

  8. Wizard generates deposit data json file, prompts you to upload it and deposit ETH using the Staking Launchpad.

  9. Wizard reads the blockchain directly and recognizes your Staking Launchpad deposits. Kicks you back out into the main UI where you can see the pending status of your validators, along with an estimate of when they will be through the queue.

  10. Once they’re through the entry queue, the app basically acts like a native version of beaconcha.in, showing your attestations and effectiveness, proposals, income graph, stuff like that.

u/cryptOwOcurrency explains a cool little defensive measure in the Ethereum protocol which protects against 51% attacks

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Hey it just occurred to me - a 51% attack is not actually profitable to Lido in terms of ETH, at least in the short term. I forgot about this little quirk (smart design decision) in the Ethereum protocol:

The reason why no validators receive attestation rewards during an inactivity leak is once again due to the possibility of discouragement attacks. An attacker might deliberately drive the beacon chain into an inactivity leak, perhaps by a combination of censorship and denial of service attack on other validators. This would cause the non-participants to suffer the leak, while the attacker continues to attest normally. We need to increase the cost to the attacker in this scenario, which we do by not rewarding attestations at all during an inactivity leak.

So by 51% attacking Ethereum, LST pool providers would be hurting the LST’s own holders (and their reputation for making profit) by forgoing staking rewards for the duration of the attack. People would obviously rush to try to pull their money out, or at least they should.

An attacker could avoid this mechanism by attacking with 66% of the stake. 66% is the point at which an attacker can attack the chain without forgoing short-term staking rewards.

I just wanted to share this, because it’s a factor I had forgotten about, and it throws a curveball at any 51-66% attacker.

Week #33: September 1, 2023

Livestream Recording | POAP

Announcements

Upcoming Guests

The morning trinity

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u/SplinterCole

Ethereum

u/UgotTrisomy21

🦀🦀🦀$1648 🦀🦀🦀

u/696_eth

0.063

Weekly Haiku: u/Jey_s_TeArS

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The charts start to bend,

Hello candle my old friend,

The pullbacks will mend.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Active validators: 765,591 (+2,071)

Pending validators: Joining 54.4k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/cryptOwOcurrency

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Zero Knowledge Proof explanations really be like

Example 1: Peggy plays a simple game with two colored balls.

Example 2: Peggy plays with a Where’s Waldo book.

Example 3: Peggy calculates the solution’s hash in the last round; i.e., H(914783256) = 0515. She then rewrites it as a decimal number, i.e., 0515 = 1301, and applies the mapping; i.e., 1301 mod 27 = 5. She proceeds to translate 5 to row i = 6 for the next query and adds the solution of row i = 6, i.e., 256391478, to the proof string. Last, she attaches the hashes of the Merkle tree nodes needed to check whether the result matches the commitment to P.

u/haurog doesn’t accept the Lido narrative and u/nixorokish reiterates the kind of threat Lido poses

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u/haurog:

I find it the most interesting that the Lido narrative: ´there will only be one LST and because of that it is better it is us (Lido) than any even more centralized player´ is so readily accepted by many people. This narrative enables Lido to aggressively grow through dubious means like the karpatkey partnership. Karpatkey manages many large DAO treasuries and apparently karpatkey bought steth with these treasuries and blocked adding other LSTs. Only after public outcry some DAOs intervened and now hold a more diverse LST portfolio.

In my opinion, accepting this narrative makes people complacent and fall in line behind Lido, because the alternative, e.g. binance dominating the staking market, is obviously a worse outcome. Lido propagates this statement because it helps them to justify their means. It becomes a self fulfilling prophecy which again helps Lido. It is not surprising that Lido now aggressively spreads this narrative again on various platforms like bell curve podcast, bankless and twitter. Lido is well connected and they can place their narrative quite effectively in the space.

Does the narrative actually make sense? At the core the narrative is ´The dominant LST has the most integrations and the largest network effect´ and due to this all ETH will flow to it. In essence it reduces the complexity of staking products to one or two quantities and argues the end state lies at the edge, i.e. one dominating LST. This pushes people into becoming convex thinkers, which in this case helps Lido to divide up the market ‘You either support us or you support big centralized exchanges’. The simplicity of the narrative to me is similar to some very simplified arguments by (hobby) economists which are then surprised that actual market data contradicts them. They then argue that people are not ‘rational’ actors. But what actually happens is they dumbed down the complexity of a system to a level which makes it easily calculable but the outcome of this simplified system does not match reality anymore because they unknowingly removed some essential mechanics.

Even the market itself does not support the Lido narrative If you look at market data, like the recent glassnode insights report. Lido grew by 54% since January 2023, and rocket pools rETH grew by 157%. How is this even possible because I thought according to their narrative they would win automatically because of network effects. rETH is by pretty much all quantifiable means an inferior product: Lower network effect, lower liquidity, fewer integrations, lower yield. People now even pay a premium to own rETH. Is it because people are stupid? I would argue that the simple convex thinking of the Lido narrative removed a lot of the actual complex decision making of market participants and that is why the Lido narrative should at least be questioned or even rejected outright.

But why does Lido dominate. They were the first LST. Making staking accessible for everyone. They are less centralized than Binance, Coinbase and Kraken. They did not really have any competition in the market until about 1 year after the Beacon chain launch when Rocket Pool started. And now there are alternatives, some better, some worse and new entrants will come. Sure, due to historical reasons Lido will be the larges LST for years to come, but I am personally not convinced that they will inevitably reach 90% market share because of network effects alone.

And now to a more personal note. Does it make a difference for me to buy an LST from an established player compared to a new entrant? Yes definitely. Storing my ETH in a tested smart contract has its value. Having access to degen plays is great. Being able to borrow money against my LSTs is necessary. But does it make a difference if the established player has over 30% dominance or 3%. Not really. rETH has enough liquidity and integrations for me with just about having 4% of the staking market share. The marginal utility of network effects of a larger LST protocol is already pretty close to zero and other parameters, like systemic risks, become more important.

TL;DR: The Lido narrative of ‘There will only be one LST’ has been spread quite efficiently by Lido. This simple narrative leaves out nuance and makes the community complacent. Even the market itself does not seem to support the narrative. Be careful accepting or spreading it further.


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u/nixorokish:

to reiterate something that seems confusing to casual users:

Lido’s threat is not a threat on top of Ethereum. It’s not about centralizing the economy running on top of it, it’s not about a widespread smart contract risk (though it does add that, too).

This is what the strategy leader at Lido (Hasu) laid out on his recent Bankless episode:

  1. Solo staking will trend down to <1% of the network
  2. Liquid staking is the superior form of staking and all staking will migrate there
  3. LSTs will converge to a single LST

The result of this is that 99% of Ethereum’s validators are controlled by Lido. That means that Ethereum is governed by the Lido DAO. The Lido DAO can choose to censor, blacklist, or finalize whatever they want on the chain. They become vulnerable to government pressure or human corruptibility to do these things. They can pressure their very small operator set to do these things in the shadows (especially once forced exits are implemented).

This fundamentally changes what Ethereum is. It becomes the Lido DAO chain. Might as well use BNB chain at that point. Ethereum’s validator set is absolutely core to its decentralization, permissionlessness, and credible neutrality.

u/alexiskef educates us on EIP-4844 with u/domotheus’s latest blog post on blob space

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🔥 Blobspace 101, by Domothy 🔥

Copy/pasting the authors own intro: “this article aims to approach the concept of blobspace, from the ground up. We will go through a quick overview of the problem of scaling a blockchain and how the concept of blobspace is the answer that Ethereum is betting on. Then we will delve into the more technical aspects of blobspace, first from the perspective of EIP-4844, since it’s about to roll out, and then we’ll quickly look into what “full danksharding” will entail in the future."

u/SikhSoldiers comments on comparisons made between Lido and Bitcoin mining pools

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This was a response lower but I think it merits a full text. Lido situation often gets compared to the bleak bitcoin mining pool situation where 3 pools account for >75% of all hashpower.

I think the lido situation is actually worse than bitcoin mining pools.

Switching hashpower between pools is easy, switching stake from one LST to another requires the entry and exit queues which are multiple months long and thus entrench one lst. Eg. If lido went corrupt and starting doing reorgs to steal MEV then the rate at which they lose stake is limited by Ethereum consensus. Further, there’s actual economic irrationality to switch away since lido earns more in this paradigm (assuming no user activated slash).

The point being is that there are no economics that inhibit mining pools and this has been proved through voluntary self limitations.

Ethereum is struggling with this.

u/bagogel12 created a dystopian Ethereum/Lido theatre script

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Act 1: Uncertainty Unveiled

(Scene: A bustling virtual realm resembling Ethereum’s landscape. Characters Lido, Operator A, Operator B, and DSA Representative are present.)

Lido: (Addressing the audience) The enigma of the future looms over Ethereum like a shadow. The path ahead is hazy, as we navigate uncharted waters.

Operator A: (Whispering to Operator B) Have you heard the rumors about DSA’s interference?

Operator B: (Nodding) Yes, word is they want to certify operators with their software. It’s like handing control to a new sheriff.

(Enter DSA Representative)

DSA Representative: (Authoritatively) Ladies and gentlemen, allow me to introduce the new era of certified staking. The Divided State of America demands compliance with our guidelines. Only those who bear the badge of “certified operator” shall stake and govern the network.

Act 2: Compliance and Consequences

(Scene: Lido’s assembly hall. Lido and a group of Operators are in discussion.)

Lido: (Addressing the Operators) We stand at a crossroads. DSA’s decree is clear, and we must decide how to respond.

Operator A: (Raising a hand) What about those of us who don’t wish to comply with DSA’s terms?

Lido: (Serious) Dissent is a luxury we can’t afford. Compliance is the path we’ve chosen, for now.

Operator B: (Angrily) So, we relinquish our autonomy to become mere pawns?

Lido: (Solemnly) Our choice is stark, yet we must weigh the consequences.

(Operators mumble among themselves.)

Act 3: The Shadows of Cartelization(Scene: Ethereum’s digital realm, depicting bustling stakers and traders.)

Operator A: (Defiantly) I can’t ignore my principles. I’m unstaking.

Operator B: (Worried) But the queue to restake is overwhelming, not to mention the enticing profits we’d be leaving behind.

Lido: (Observing with a sinister grin) As DSA’s grip tightens, chaos unfolds.(Operators reluctantly withdraw, some out of principle, others due to sheer inconvenience.)

Narrator: (Voiceover) The Ethereum ecosystem stands at a precipice, as Lido’s influence swells, furthering the consolidation of power.

(Lido’s dominance continues to grow, its ominous shadow looming larger over Ethereum.)

Operator A: (Resolute) We can’t let this tyranny persist. A fork is our last resort.

Operator B: (Doubtful) But Lido’s stranglehold is formidable, and with DSA’s support…

(Lido faces a pivotal decision: Embrace cartelization or confront dissent.)

Lido: (Calculating) The road ahead is murky, but our grip on power is undeniable. Ethereum shall bend to our will.

(Curtain falls, shrouding Ethereum’s future in an unsettling darkness of cartelization and control.)

u/Tricky_Troll defends of Gitcoin while u/STRTRD brings in the context behind the post along with some of their own thoughts

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u/Tricky_Troll:

This comment was a reply made on a comment with little attention at the end of yesterday’s daily so I am sharing it now. Basically, in light of people complaining that “Gitcoin lost its way”, often pointing to the use of money from Shell in one funding round and another controversy around funding for minority groups in the ecosystem, here is my counter argument.

One could argue that Gitcoin is doing what it was designed to as a protocol. It’s supposed to be modular for many different types of funding rounds with many different organisations. Funding from Shell, funding for minority demographics etc. This is all controversial due to your subjective opinion on what you want Gitcoin to be. Well the Gitcoin vision was for it to grow up and become a protocol for all, not to remain a niche technical Ethereum native app. Much like how there are many Linux distros for whatever niche you want, this is a feature and not a bug.

Just because I don’t like the fact that Ubuntu exists and adds telemetry to an ecosystem which is generally much more private than other operating systems, doesn’t mean I see Ubuntu or Linux as a failure. Of course not, Ubuntu invites newbies into the ecosystem and if they want to progress from there they can. Meanwhile, there are privacy focused distros and ones which stick to core OG Linux community values. Same goes for Gitcoin.


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u/STRTRD:

Here is the whole comment thread for the context: https://reddit.com/r/ethfinance/comments/163cqkk/comment/jy5cw5i/

u/keynya counter argument:

I do not know what OP thinks but if you want to focus on the negative I have a few points:

Took them a year to revamp their website which only now is usable again.

They spent a lot of effort to have gitcoin rounds on Fantom which barely had anything useful to support instead of integrating L2s. The last rounds were therefore super expensive to contribute. Only now they support optimism.

The last few rounds were invite only, which probably hurt new devs and teams because they were excluded from gitcoin.

At the start of this round all DAI contributions failed. People lost quite a bit of money with failed transactions and the website said ˋdonation successfullˋ. I you looked at the earliest failed transactions they were probably from the gitcoin team. They knew about the problem and still enabled DAI contributions. No idea why.

Why waste developers time on running your own L2, the PGN networks? It does not make sense to me, We have enough very good L2s by now why make your own.

The whole Shell collaboration was a PR disaster.

There was also a diversity round in spring where one of the judges also had a project in the round. This round was special and the judges had extra power over who gets the money. This judge was a very controversial figure in the space already and they nevertheless took her on. The whole situation was as also a pr disaster.

All these points above tell me there is a lack of control, oversight and quality standards in the gitcoin organisational structure.

With all the list of negative points I have to say I personally still love gitcoin rounds. The website now is so much better than last year. They are in my view a pillar of our space and I love donating to projects I use.

I’d like to touch on Gitcoin and their passport with which they are trying to become decentralised proof of human/anti-sybil standard while constantly changing stamps to accomodate whatever new KYC-grab your ETH shady project they partner with like Proof of humanity, Civic etc.

Other stamps are connect your social networks, like sybils have problems with that.

One of the stamps is GTC staking, stake our coin to prove you are human?

Complete antithesis to web3 and it is getting a lot of praise.

u/lanternfinance shares their project for thosewho find solo staking a bit too daunting

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SHOUT OUT TO EV Maverick /u/lanternfinance because his team is building something I think many would and should be interested in if solo staking scares the shit out of you.

If you live in any of these states, would you be open to chatting with a team called Lantern Finance? Staking as a Service. Pure play staking service provider.

They are launching October and looking for early people in these states to talk to about participating in a feedback session.

Right now, though, they want to talk to some folks about their journey and history and get feedback on their current experiences/struggles with staking.

They are doing SAAS using KYC through Persona, custody through BitGo for custody with insurance, and are building a simple and effective U.S. based service complete with tech support/phone support etc. They have onboarded a team of around 8 iirc.

Super easy to talk to and I hope some of you can line up a quick meeting. Highly recommend even if you aren’t from these states. I’m planning on joining the early feedback cohort in October and I hope some of you can too. (this meeting isn’t about investing! Just about experience with staking in general they want to know what features to focus on)

If you want to reach out: prince@lantern.finance and jung@lantern.finance

Prince was at Hodlercon Super nice fella!

From the team: “Lantern Finance is a US-based, pure-play ETH staking solution. We’re focusing on security, peace of mind and ease of use for staking. We’re looking to do ~30 minute user research interviews where we get insights on what an ideal staking solution looks like for them. We also want to understand their crypto journey, what they like/dislike about their existing platforms, and feedback on what we’re building.”

u/coinanon breaks the good news and u/Papazio adds some detail

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u/coinanon:

Uniswap wins lawsuit accusing them of being liable for scam tokens: https://decrypt.co/154312/uniswap-lawsuit-dismissed-defi-crypto-exchange-not-liable-for-scam-tokens


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u/Papazio:

This is dope!

An important distinction between the smart contracts deployed by Uniswap and the actual token contracts and pools launched by the scammers. The judge concluded that Uniswap’s contracts cannot be inherently illegal, the issue is with whomever made a scam token and then scammed people with it. Watch out SEC, this is coming your way.

Here’s some choice bits:

Judge Falia’s decision said that smart contracts underlying the exchange’s core functions should be viewed separately from code underpinning liquidity pools, which are drafted by token issuers and enable newly created tokens to trade.

“These foundational contracts are distinctive from the token contracts unique to each pool and drafted by issuers,” Judge Falia wrote. “The contracts relevant to Plaintiffs’ claims are not these overarching codes provided by Defendants, but rather the pair or token contracts drafted by the issuers themselves.”

u/cryptOwOcurrency becomes a full on FUD-fighter, rebutting some claims made in a podcast

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Here are the claims made about Ethereum between those time stamps, and my rating for each one.

JP Morgan owns a lot of crucial Ethereum infrastructure - MOSTLY FALSE

While JP Morgan does have some financial ties to Ethereum infrastructure, they don’t “own a lot”. JP Morgan owns less than 10% of Consensys (Consensys is the parent company for Metamask, Infura, Besu and Teku). Of course while Metamask and Infura are both influential and widely used, they are not the only games in town and they are not “crucial” to Ethereum’s survival. And while 10% may be enough to demand a board seat and sway some close votes, it’s a far cry from “owning infrastructure” in the sense that it’s under their thumb.

JP Morgan dollarized the Ethereum network - FALSE

Circle (USDC) and Tether (USDT) did the most to dollarize Ethereum, imo. Circle is owned in part by the venture capital arms of several big banks, but I could not find JP Morgan Chase listed as one of them in any VC announcement. Tether is privately owned by 4 rich dudes.

Stablecoins represent more value on the Ethereum blockchain than ETH itself - FALSE

By roughly adding up the top dozen stablecoins on CoinGecko, Ethereum’s stablecoin market cap is less than $150B. Compare this to ETH’s market cap of $204B.

JP Morgan and Citigroup basically own the NY Fed - MOSTLY FALSE

There is no ownership in a corporate sense. While banks are required to “own” shares of the Federal Reserve, the Federal Reserve answers to their Board which is directly accountable to Congress, and profits are never distributed to shareholders. It’s a strange corporate structure, but that’s government agencies for you. Many consider Congress to be bought and paid for by private interests though in the end, so that’s why this only earns a rating of “mostly” false.

Elon Musk bad - TRUE

Week #32: August 25, 2023

Livestream Recording | POAP

Announcements

The morning trinity

View on Reddit →

u/Kitchen-Pudding8750

Ethereum

u/Zeebrasurfer

$1649

u/the-A-word

0.063

Weekly Haiku: u/Jey_s_TeArS

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Ask your reporter,

On to the final quarter,

Supply gets shorter.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Active validators: 751,257 (+1,812)

Pending validators: Joining 58.6k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/savage-dragon

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Ben Cowen is calling for eth coming home again.


u/intothecryptoverse (Ben Cowen):

Honestly it’s comical that people even listen to that guy

u/SikhSoldiers compares the pros and cons of on-chain vs off-chain swaps

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Cowswap is awesome. You generally get the best price for execution and you have gas abstracted away. It’s so good that uniswap is more or less copying them for univ4

However, the Coincidence of Wants that CoW is famed for is an off chain matching system. If we have the largest dex in the space move liquidity / market making off chain, we will be making a huge shift towards a lunarpunk ethos in perhaps a negative way.

Onchain liquidity numbers have been super transparent and is the basis for most risk analysis. I’ve gotten reth accepted as collateral on many different lending platforms and have read through a number of analyses. The one common point across all of these platforms has been proof of lasting liquidity. In fact, it was this consistent request across protocols for probable liquidity that formed the basis for reth having liquidity incentives to begin with - we needed to prove reth was liquid.

Back to the issue at hand, when market makers move off chain they will no longer be sourcing from onchain LPs. There was a tweet a few days ago (if I wasn’t banned I’d find it) that showed only a small handful of people provided most of the ETH/usd liquidity on uni. If these people decided to become searchers in the cowswap or univ4 system, then they wouldn’t have public liquidity and slippage would become hard to predict.

I am very favorable towards privacy in certain cases; public liquidation levels is dumb as fuck. However, onchain liquidity is like a global proof of reserves. The whole world benefits by being able to have reasonable ideas about slippage.

Perhaps we can get the best of both worlds. It’s not unreasonable for these off chain market makers to have to post zk proofs of their holdings on chain somehow. It doesn’t have to be individualized since we only care about the picture globally. This system would also warn people when liquidity vanishes which is an issue otherwise.

Not to mention SUAVE makes this whole problem worse by abstracting liquidity at the block building level

u/ethacct celebrates their cake day by reflecting on the last 7 years…

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it’s my cake day 🥳

seven years ago I realized I was posting too much crypto stuff on my main account, so i decided to make an ‘ethereum account’ instead. these days my main account is long gone, and i have fully become ethereum account 🫡

bear market things + life changes mean i haven’t been around as much, but still lurking here from time to time, and still shitposting on twitter/X/whatever it’s called now. I’ll be back when there’s exciting stuff to talk about again (pricewise or techwise or both).

u/pa7x1 shares a mental model of scaling via L2s vs scaling the L1

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A few days ago someone asked on /r/ethereum what’s the advantage of scaling via L2 vs L1. I started drafting my response but life got in the way and couldn’t give a timely answer. I will instead post it here, most of you will understand well this topic. But it might benefit someone that didn’t think about the problem in these terms or give you another way to explain it to newcomers.

Here is a very simple mental model to understand the scalability trilemma, or why blockchains don’t scale in a trivial/naive manner.

The scalability trilemma basically states that from the following 3 properties; decentralization, security, scalability. A blockchain can only pick two. The moment you try to attain the other, you start to give up some of the other properties.

The easiest way to see why is to understand the two trivial/naive ways to scale a system. They are called horizontal and vertical scalability. Horizontal scalability is, in essence, adding more instances of the machine to solve the problem in parallel. For instance, your CPU has multiple cores to scale it horizontally. Vertical scalability is about adding more resources to a single instance, to make it able to process more per unit of time. More memory, faster CPU, faster internet connection…

The thing is that these 2 techniques are directly at odds with the other 2 properties of the trilemma. Vertical scalability is at odds with decentralization. And horizontal scalability is at odds with security.

In essence, if you make the requirements to run a node bigger (vertical scalability) you make it harder and harder for anyone that wants to run an instance. Instead of being able to run it in a consumer grade PC, you will have to run in an AWS intance, or a mainframe. Or whatever ridiculous machine you need to validate Solana. So if you simply increase the resources needed to run a node you end up centralizing the network. This is what Avalanche, Solana, and various other alt-L1s that promised to have solved scalability did. They are just giving up decentralization for scalability.

And horizontal scalability essentially requires splitting the network in shards, each of which validates different sets of transactions, so you can validate in parallel. But if you do this in a naive manner, it’s obvious that the security of the network suffers because the cost to attack each shard is proportionally smaller as there are less validators verifying the transactions.

The roll-up roadmap is a non-naive way to scale the network. It uses sophisticated cryptographic techniques to build compressed proofs of computation, that basically enable to scale the same blockspace by many orders of magnitude, as many transactions can be batched together and posted in a compressed form. It also enables parallel (sharded) execution, you can have multiple roll-ups each of which executes transactions in parallel, without sacrificing the security of the network.

u/PhiMarHal, u/superphiz, and u/Tricky_Troll share their different takes on friend.tech

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u/PhiMarHal:

Every good ponzi, by lasting long enough, hits a moment of capitulation. At that point, initial haters are swayed by its resilience, and join in despite their misgivings.

If the ponzi is especially good, this moment is properly enhanced by an announcement. Lever capitulation into full-blown FOMO.

I believe we hit that moment yesterday with friend.tech. The Paradigm stuff, airdrop points. My timeline is filled with otherwise reasonable people hopping on board.

“But why, Phi, why do you call friend.tech a ponzi? I’m having fun. They’re going to release more features. Social tokens are the future.”

My own perspective comes down to simple math.

The price curve for shares is supply squared. Goes up fast, goes down faster. You get that high initial growth, tricking your brain into extrapolation, even though in reality it’s pricing people out; then once sentiment turns and people dump, you’ll get a catastrophic fall, with everyone and especially late buyers scrambling to get out.

Platform fees are 5% on every trade. Open up your calculator app and type $1000. Multiply it by 0.95. Then do that same operation again and again. See how much money you have left after 3 trades, 5 trades, 10 trades; see how much value is extracted from the userbase by the developers.

You add these two together, you have a recipe for a heavily negative sum game. The money is siphoned away from the system no matter what, a minimum of 10% (in + out), and more the longer you stay in and trade.

I’m a reckless gambler myself. I’m not going to tell you you can’t have fun in a ponzi, I’m not going to talk to you about morality. But I would tell you this is one of those times where don’t-put-any-money-you’re-unwilling-to-lose should apply strongly. It will come crashing down, and there will be many more losers than winners; the math makes this inevitable.

Any money you put in friend.tech is a greater’s fool theory bet where the odds are stacked against you.


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u/superphiz:

In 2013 I was part of a local bitcorn group. We had this one member, “Tammy” [not his real name], who attended every meeting and always contributed to really insightful discussion. The thing was, Tammy never bought bitcorn or any of the altcoins that were springing up the time. He explained that if he never bought coins he could never get scammed. He prided himself on understanding the fundamentals of every coin, and he was very sharp at identifying potential weaknesses of different coins. But he never bought in. To this day, I’m still not sure he has every held crypto.

My point is that it’s no fun to participate in crypto if you avoid new things. It’s no fun to sit on the sidelines and point out flaws. I don’t want anyone to blow their stack, and I’m very honest about what I believe are valuable tools, and what I think are fads, but it’s OKAY to check out fads. Could you imagine still being unwilling to hold jpg NFTs because they’re just pictures? Pretty much anyone who holds that view is still living in 2019.

So I urge EthFinance to relax a little bit, stop being so scared of things that are likely to be fads and just check them out with care and caution. I have a group of fad enthusiasts and we’ve explored three fads this month and all of them have been a ton of fun.

Give yourself time to grow if you need it. Skip this one, no harm, but commit to sticking a pinky toe in the next thing just so you can enjoy the ride.


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u/Tricky_Troll:

Not going to lie, I’m getting pretty sick of the nuance free takes about Friend.tech. It seems like everyone either convinced it is the future and super disruptive or a basically just a ponzi scheme. Can we please get some nuance in here?

IQBellCurveWojakMeme.jpeg

Low IQ end of the curve: Woah I can buy shares in my favourite influencers! This is the future!!!11!!1!!!!

Mid curve normie take: “iT’s jUsT a PonZi ScHemE”

Big brain take: “This is both an innovative platform and an app with major hurdles and design flaws to adoption. It has unique utility like token gated chat rooms which will almost certainly be valuable in the future on some kind of future platform but it might not be this one. Friend.tech has many weaknesses and in particular it uses a highly volatile uniswap V1/2 based curve for pricing of influencer shares. As a result prices fluctuate wildly and will leave many users with a sour taste in their mouth when they get dumped on. This is a big hurdle to mainstream adoption and the price dumps are why all the normies leave and talk shit about crypto in a bear market. 95% of people don’t want to speculate on this shit. Furthermore, there is also an enormous 5% fee on all trades which quickly bleeds users of their investments if they trade regularly.”

Edit: I agree with a lot of your takes in the replies, my point isn’t that any one of them is wrong, just that your nuanced takes are what I have been wanting more of and less one sentence posts whining about it or shilling it.

u/Fheredin is interested in a hypothetical decentralized Wikipedia and u/OkDragonfruit1929 has some great thoughts

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u/Fheredin:

So…is anyone interested in brainstorming a decentralized alternative to Wikipedia?

If you aren’t familiar, Brian Lunduke just posted this video on Wikipedia’s finances.

TL;DR? Wikipedia’s expenses are roughly a third of their revenues; the difference goes to “charities” which have some strange political ties.

I wasn’t born yesterday. A defacto information platform like Wikipedia donating 2/3rds of its revenue to political entities is going to end with Wikipedia itself censoring opinions to protect their donation streams, and perhaps to curry favor with politicians.

Things get even worse when you consider Lunduke’s previous financial investigation. Mozilla gets most of its revenue from–drumroll, please–Google. I swear, Big Tech has monetary incest problems which make FTX look solvent.


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u/OkDragonfruit1929:

Any Ethereum L2 based decentralized Wikipedia alternative should focus first and foremost on censorship resistance. Financial incentives are secondary.

Censorship resistance should be the top priority to prevent the platform from censoring opinions and information based on pressures from outside entities purchasing the right to edit articles. Without proper censorship resistance, the alternative Ethereum L2 based Wikipedia alternative will quickly fall into the same issues as Wikipedia, where donations and political ties influence what information is allowed or promoted on the platform.

Wikipedia donates 2/3 of its revenues to outside organizations, many with concerning political connections. This creates a dangerous incentive for Wikipedia to censor information to protect donation revenue streams or curry political favor. The power to control information is far too valuable enough as it is without adding the possiblity of profiting if some sort of cookie-cutter financial DeFi game is uesd and applied to a wikipedia alternative on an Ethereum L2.

If the alternative platform relies on tokenizing as a way to weight one user’s edits over another, the incentives could lead to censorship and conflicts of interest around what information is allowed or promoted. Financial rewards or incentives for users should be secondary to creating a platform resistant to all forms of censorship and bias. Rewards based on “truthfulness” could easily turn into subjective censorship.

Any form of censorship, no matter how well-intentioned, can be exploited to silence dissenting opinions and shape narratives. Maintaining censorship resistance should be the highest priority.

Without proper incentives and protections, all platforms, even L2 Ethereum dApps, are vulnerable to becoming tools of censorship. The alternative must be designed from the ground up to resist this.

u/benido2030 is structuring the community made EthFinance Bull Case for Ethereum.

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As stated last Friday, this week I have started to structure all of your feedback for a potential “EthFinance Bull Case for Ethereum” post, which could also be used for a short video.

Ethereum the network

Ether the asset

Some comments:

  1. These are obviously just bullets, so I’ll add detailed thoughts once we all agree on the structure and I am not sure this is the best structure yet. For example you could add a third a third category with “Narratives” which could include the “ETH is green” or “Risk free yield” bullets. Also something like “Use Cases” probably could be its own category as well. Looking forward to your thoughts and potential changes you would like to see!
  2. I have tried to write about Ethereum and ETH, so in a way that’s not comparing it to any other network/ asset. I really liked these statements made on Friday, but have rephrased them.
  3. I have added my own points, so some bullets are "new.
  4. If you feel your points are not fully covered or inadequately worded in these bullets, feel free to drop a comment and suggest a change

Next steps (from my point of view, but also happy to receive feedback when it comes to the process!) would be to collect your feedback, change the structure/ reorganize all arguments, enhance every bullet or even split them to make sure everything is covered. After that I will start drafting short paragraphs for each point, but also encourage all of you to draft a bull case yourself or at least pick your favorite point(s) and draft a small text for those.

u/Set1Less shares some sad news for another Tornado Cash dev

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Tornado Cash founder arrested by FBI….

https://home.treasury.gov/news/press-releases/jy1702

God Speed brothers. We will pour a drink when Kim Jong takes your revenge


u/cryptOwOcurrency:

The power and integrity of sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List but also from OFAC’s willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish but to bring about a positive change in behavior.

Lol. When does the Treasury think they will see “a positive change in behavior” on the part of the immutable EVM code that resides at 0xd90e2f?

u/stevieraykatz shares a quiet win for the ecosystem

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Three of the top 15 eth burning/gas consuming contracts on mainnet are L2s. That’s such a quiet win for the scaling space and it’s JUST beginning.

– This has been your daily dose of hopium

Week #31: August 18, 2023

Livestream Recording | POAP

Announcements

The morning trinity

View on Reddit →

u/kraftverk_

Ethereum

u/UgotTrisomy21

$1672

u/Dray11

0.0634

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

One more layer two,

DeBank is now coming through,

Price surge avenue.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Active validators: 735,915 (+2,069)

Pending validators: Joining 61.3k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: nixorokish

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how to move crypto through a CEX when you usually just transact onchain:

  1. Do a test transaction to your newly generated CEX address (don’t reuse old ones!). Check to see if balance has updated. Forget that CEXs take a while to see the transaction. Refresh. Refresh. Refresh.
  2. Stare at screen for 30 seconds and then move on to something else while you wait
  3. Remember 6 hours later that you were doing something when you come across the window in your tabs
  4. Repeat
u/hanniabu shares Coinbase being based AF

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Coinbase will be operating a few hundred Rocket Pool minipools

https://twitter.com/cbventures/status/1689639117016137734

We know the Rocket Pool team shares this belief and we’re delighted to support them via active participation in their Oracle DAO and using ETH from our corporate balance sheet to operate several hundred nodes on the Rocket Pool network alongside our friends Unit_410.

u/_WebOfTrust thinks new Safe feature could be the future of wallets

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Exciting development from wallet space from Safe

New experimental feature unlocked!
Social Login: Sign up with Google or Apple ID on Safe {Mobile} iOS.

https://twitter.com/safe/status/1689313162817093633

not only we can create new social wallet but we can also migrate existing wallet, no seed phrases hassle and could help onboard folks with limited technical knowledge.

out of curiosity, i look and found this EIP-7212

https://ethereum-magicians.org/t/eip-7212-precompiled-for-secp256r1-curve-support/14789

From proposal “Many hardware and software solutions use this elliptic curve as signing algorithms, such as TLS, DNSSEC, Apple’s Secure Enclave, Passkeys, Android Keystore, and Yubikey, which can be used in the EVM.

Lot of math and havent digested the whole thread but future of wallet management looks bright.

u/etheraider has a call to action for the latest EVM project!

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For those who didnt see 2 days ago EVMavericks kicked off a novel idea to create a community sourced decentralized art collection around a central theme!

To my knowledge this would be the first of its kind, right now we have close to 40 people/artists that have committed to creating art for the project. Would be awesome to hit 100 and showcase a unique robust collection in Ethereum!

Any and all funds raised from it would go towards whatever initiative the artists decide on.

One of the members just suggested a broad theme, “Decentralization”, so that or something like it may be what we go with!

I personally am excited to see all the different takes/art styles/perspectives on something abstract like “decentralization”, would make for a pretty compelling artistic experiment!

If youre interested in participating and contributing art join the discord (dont need an EVM)and head over the public untitled art channel and hit the thumbs up on the first message!

u/OkDragonfruit1929 just had a bunch of firsts worth sharing!

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Just wanted to share my excitement - today’s been full of firsts for me! I used the Arch User Repository for the first time to build frame-eth from source, and successfully used the Frame Wallet and managed to bridge to Base. But wait, there’s more… I also minted my very first Base NFT! 🎨🔥

I’ve been hearing a lot about Frame wallet, and I figured with the official launch of Base, I could use this as an opportunity to test out two new tech innovations at the same time. Finally took to the Arch User Repository and installed the latest Frame wallet from source and it’s genuinely a feeling I can’t quite put into words. The whole process was much smoother than I expected, and I’m really excited about the potential of decentralized tech.

For anyone still on the fence, just dive in! The waters are fine, and the learning experience is invaluable. 😊

Cheers to firsts! 🥂

u/Nomadic8893 critiques the current state of L2s and u/PhiMarHal replies with coming solutions

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u/Nomadic8893:

From a user experience standpoint and someone who identifies as both a “normie” but also has slightly bit above average knowledge of crypto/blockchains, imma just say it: L2s UX is a mess.

You’re expecting the TikTok/plug and play/ iPhone and iPad generation to know how to setup Metamask, to bridge over ETH to one of 10+ L2s, do DeFi/NFT with fragmented liquidity amongst the layer 2s and 8 versions of AAVE/Uniswap/Sushiswap/Blur/OpenSea, wait 8 days to bridge back to mainnet, and keep up with whats possible to do on different L2s….? Don’t even have to get the point about lack of decentralization on the L2s.

It seems to me the current structure of the Ethereum blockchain enforces favorable tokenomics on the layer 1 (capped blockspace and throughput, deflationary issuance, hardening of ETH) while giving users an option to opt into a low gas fee/high throughput environment, which on the face of things, is ideal, best of both worlds. But in reality, I feel that it severely degrades the user experience, creates multiple friction points, and ultimately deters Ethereum from any sort of mass adoption, mainly catering to the crypto-crowd. Hope I’m wrong and Ethereum thrives, but this user complexity is, for me, is one of the largest issues that Ethereum has to contend with for long term expansion and adoption.


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u/PhiMarHal:

Personally, I expect most people to experience blockchain through account abstraction, and for the driver to be a dapp rather than a blockchain/rollup.

i.e. you’re on Base mainnet because you’re playing words3.xyz, but really you don’t even need to know you’re on Base mainnet. You hold a Reddit NFT but you don’t even know it’s a NFT, or where it exists.

Even in the EOA world of today, this is smoothed out on wallets like Rabby handling the network switching quite smoothly.

As for those dapps existing on different places, I think that existence is pretty fungible. It doesn’t matter to me if Uniswap liquidity is fragmented when I can technically get the same execution price within 0.1% of general market price. More exotic assets will have to pick and choose, but then I wouldn’t expect normal people to invest in esoteric tokens.

To me, getting to subcent fees while maintaining essential decentralization, security and credible neutrality properties is more important. Perceived user complexity is mostly a consequence of the space exploring many venues to this day.

u/the_swingman shares their thoughts on a few things

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Hope everyone is hanging in there and keeping your heads up. Bearish/crabish times can sometimes feel like an extended hunger pit in your stomach. This too shall pass and brighter days will come, rest assured.

I started up my weekly buys again back when we last touched the 1700s and will continue to do so for better or worse, until we are out of the crab range above 2k with solid seeming resistance.

Fam and friends who hold ETH will periodically check in, fishing for price predictions from me.. I tell them the same thing over and over, that I don’t expect any meaningful positive price action (anywhere near ATH) to happen until US inflation is tamed, fed fund rates are cut down to a more normal rate, and not during any sort of recession because of rate cuts. We need to be out of those woods before I feel the sentiment will change with risk assets.

Tall order but that order will be filled. And as some have speculated here, the soonest I think that’s going to happen would be sometime in 2025. Obviously just a best guess and honestly, an optimistic guess in my point of view. Time passing without catastrophic events happening in crypto would be a blessing. We need time to heal the wounds of the great Terra/Luna collapse and all the subsequent fallout that was left in the aftermath. We’re already starting to see some closure type things happening.. Mashinsky arrest, SBF back to jail, some blockfi funds are being returned, etc.. while we still have far to go, Gemini still in the lurch with Earn, SEC drama and so forth. Time will sort all of these things out and I believe for the better.

Meanwhile, growth is ongoing in our space, another time dependent variable. Mistakes will be learned from, innovation is inevitable all in good time.

Personally, somewhat recently, I’ve been working on some lifestyle changes.. which started with getting a check up at the doctors. Blood pressure, cholesterol, diet, exercise.. all very important to keep up on. I even grabbed an oura ring to help monitor sleeping habits. I feel as though I’m training mentally and physically for the next bull run lol. But in all seriousness, it feels great to trend in a healthy direction. I work for myself, so keeping motivated and energy levels up are a persistent goal. I’ve also been traveling with more frequency and doing my best to travel with friends. The times I get to vacation a bit with friends, I realize they need it just as much as I do. Anyways..

Lastly, I might not chime in here much but I certainly read the daily everyday and have since long before the migration to r/ethfiance . I very much appreciate this community and the effort of those who do take the time to post in here. Thank you all!

u/magnushansson looks back on a recent big achievement of theirs

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Hello r/ethfinance!

As summer draws to a close, I find myself reflecting on the incredible journey I’ve taken this season. I’m thrilled to share that I have successfully defended my PhD thesis titled “Decentralized Finance and Central Bank Communication”, with a primary focus on the market microstructure of DEXes. This achievement was by no means a solo endeavor, and I owe a significant debt of gratitude to this community.

Throughout the research process, the insights, discussions, and support from r/ethfinance have been invaluable. Many of the comments here have enriched my understanding and shaped my perspectives on the evolving landscape of decentralized finance.

I’m excited to start a new chapter as an Assistant Professor at Stockholm Business School. In this role, I will continue to dive deep into the intersection of market microstructure and DeFi, fueled by the passion and knowledge I’ve gained from this community.

In essence, I wanted to take a moment to express my gratitude to every member who posed challenging questions, shared enlightening resources, or simply offered words of encouragement. Thank you! / Magnus

u/nixorokish noticed a shift in Ethereum “competitors” and u/LogrisTheBard shares insights into system design

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u/nixorokish:

this is an interesting shift - we’ve moved on from serious competitors trying to replace Ethereum’s L1 and now we’re looking at entities trying to become Ethereum on top of Ethereum. the provider that becomes ubiquitous and that people build on top of - Eigenlayer, Lido v2, DVT protocols creating their own spec - they’re all trying to become the dominant layer that people must use

Lido v2 believes that all liquid staking will eventually happen with stETH because defi markets want to converge to a single liquid staking token, so any staking protocol will just need to use Lido to open up a pool (“module”) and they can optionally issue their own token in addition to stETH. Eigenlayer wants to be the layer that protocols use to bootstrap services. SSV, Obol - they want to build a DVT protocol that every other provider conforms to (multi client architecture, but clients must use their spec).

but all of them are doing it in a way that’s antithetical to the reason (imo) for Ethereum’s success - its credible neutrality and the fact that no one is the overlord here. In the example with DVT - multi client architecture is good, but not if the parent structure is centralized or not credibly neutral. They’re all trying to capture what wasn’t captured when Ethereum’s model was developed. Humans are corruptible - DAOs are not the answer that makes something decentralized - does a serious competitor to Lido develop something that looks like Lido v2 (and Stakewise V3) but actually decentralized?


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u/LogrisTheBard:

In my consulting work I bring up these topics a lot when I encounter any type of hostage collateral in system design. If the service is chain-adjacent I usually bring up Eigen Layer. If it’s an L1 I bring up running their L1 as an L2/L3 on Ethereum. I’ve done this for over a dozen projects. If it’s an app on chain I bring up LST collateral. I have never received a sound technical argument against this suggestion. Their argument is predictably about retaining token utility because they own a bag and want it to be worth more. When I bring up vampire attacks, the usual and sole response is that a social moat will protect them. This feels like wishful thinking to me. These approaches are going to devour the crypto space in the next decade. When we see the first vampire attack of something like Chainlink succeed where an attacker just forks their code and changes the collateral it will send off a tidal wave of copycats just like YFI did to liquidity farming with Sushi, Curve, Harvest, Aave, Kyber Rainmaker, etc. Eventually, layers of interest bearing collateral with different risk tradeoffs will be the only hostage collateral and every chain but the top few that can pay for their own security will settle on those few top chains.

I think the LST space is actually fragmenting and isn’t likely to consolidate. It will look like the stablecoin space where there are dozens/hundreds of LSTs. Ideally Lido will be subject to repeated and sustained vampire attacks and will just service as a gateway into staking. I do think there will be actually decentralized LSTs but I think it’s too late in the game for them to dominate. That ship has sailed, Rocketpool was our best chance and they blew the opportunity by not using the oDAO RPL rewards for liquidity farming to bootstrap themselves to massive adoption.

u/OkDragonfruit1929 is shocked by a recent big step towards mainstream adoption

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So… I just minted a “Stand with crypto” NFT with my VISA debit card and I finally understand why VISA letting you pay gas fees with your VISA card is such a big deal!

No need for anyone to create an exchange account and buy ETH, it just works in the background!

I am absolutely stoked about the convenience of using a VISA debit card to directly mint an NFT without the need for creating an exchange account and purchasing ETH (Ethereum) separately. This approach makes the process more user-friendly and accessible to individuals who might not be familiar with cryptocurrency exchanges or the technical aspects of buying and using Ethereum.

Using a debit or credit card to directly mint NFTs simplifies the process by abstracting away the steps involved in acquiring cryptocurrency like Ethereum and then using it to pay for minting fees or NFT creation.

It’s a step towards mainstream adoption by reducing the barrier to entry and allowing more people to participate in the NFT space.

u/superphiz stands up for himself in front of a disingenuous accusation

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it really guts me to come here and find myself getting shit on. You don’t have to know me, you don’t have to trust me, but I’m proud to say that every action I’ve ever taken has been in the best interest of promoting greater security and decentralization of the beacon chain. I have never acted in any way contrary to these values and it’s offensive that the same people keep dragging my name. YES, I accepted the role of oDAO member for Rocket Pool, a role that I am STILL very proud of, and YES, I got a lot of money for it, just like the other 18 odao members who participated in the protocol the way it was designed. YES, I voted to reduce that and have encourage further development of RP in a way that doesn’t require an oDAO at all. You know what else I did? I proudly promoted a platform that has onboarded over 3000 nodes to the Ethereum network. And I’ll do it again if I can. I’m not going to get shit on like a little bitch by people who haven’t done shit to bring success to our network. I would STILL accept fair money for my time to support and promote other projects that are highly aligned with our goals, and I’ll never mince words about projects who risk our future. Sorry. Getting a little heated here.

Week #30: August 11, 2023

Livestream Recording | No POAP

Weekly Doots →
Week #29: August 4, 2023

Livestream Recording | POAP

The morning trinity

View on Reddit →

u/alexiskef

✨E✨t✨h✨e✨r✨e✨u✨m✨

u/696_eth

0.062

u/wolfparking

$1833

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Vyper labyrinth,

Compiler masonry tricks,

Curve pools broke a plinth.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 706,796 (+1,631)

Pending validators: Joining 75.5k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/Glittering-Duty-4069

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Consider this: The SEC (Securities and Exchange Consideration) Consideration deliberating on whethere they should once again reconsider their previous considerations considering to consider reconsidering ETH ETF for deliberation and consideration.

u/cryptOwOcurrency has your daily dose of hopium

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I held my tongue back in that thread, but I found that sentiment bizarre too. If ETH development were basically dead like Bitcoin I could maybe understand the logic of the market capping out soon, but ETH is still a rapidly developing and improving technology, and still has a lot of not only adoption but simple low-hanging improvements in market efficiency in front of it. Even if core Ethereum development completely halted today, ETH would still have at least another market cycle worth of juice in it.

There still aren’t any ETFs in the US. Big brokerages only just launched crypto custody less than a couple months ago. Roll-ups and zk tech still aren’t mature yet. The general public still thinks NFTs are an environmental nightmare. It’s been less than a year since the last PoW block was mined on Ethereum, and barely three months since its literal consensus system was completed! The queue isn’t even clear yet, for god’s sake!

These are probably a lot of the same people who called for $10k last cycle. Now that we’ve been crabbing for a while, they get all depressed and doom-and-gloom. When the bull market picks up again, they’re probably going to start calling for $20k+. Then we’ll top out at like $16k and they’ll watch their generational paper gains slip through their fingers again.

u/Set1Less has an update on the struggling US stablecoin bill

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Anyone following the Congress stablecoin bill?

That seems to have died today too. The law just created a legal structure for stablecoins (with actual legal protection) and allowed businesses to use stablecoins, but the bill has died

Good threads on it:

https://twitter.com/JBSDC/status/1684589699564728320

https://twitter.com/JBSDC/status/1684570863432257538

So fucked up…. even a stablecoin bill cant pass. A proper crypto bill is just DOA

u/bleeddonor covers the relevant Mullvad VPN situation for stakers who use a VPN

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It appears that some of you aren’t aware of what happened with Mullvad.

Mullvad is a VPN outfit located in Sweden, which has strong privacy laws.

Mullvad gets raided by the police who want user data:

https://www.hackread.com/mullvad-vpn-office-raided-police-user-data/

Mullvad frustrates that effort by not having any user data.

A little over a month later Mullvad is forced to withdraw their forwarded-ports service, which I’m sure some of you know is what you want to have if you’re trying to run a node over a VPN:

https://mullvad.net/en/blog/2023/5/29/removing-the-support-for-forwarded-ports/

Not privy to the exact details of course, but it isn’t rocket science to anyone who has been online for any length of time and relates to controversial political content, you poison the well. Suddenly somebody starts using a forwarded port for child porn, the complaint is made, and now the police come back to Mullvad asking for proof they weren’t they weren’t the ones who produced it. Or something like that.

Result? Anyone here who was using Mullvad as their VPN for staking now has to a) find another VPN and b) wonder how long it will be before the same proposition is made to that vendor.

u/pr0nh0li0 points out the wrong ETH supply values on major websites

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None of Coingecko, Coinmarketcap, Coinmetrics, or Bitinfocharts have the right supply listed for ETH. They seem to be either accounting for new issuance but not burns, and/or they may be double counting ETH that has been withdrawn (as technically the ETH doesn’t ever actually leave the staking deposit contract, but is instead re-minted at a 1-1 rate when “withdrawn”). It’s almost been a year since the merge and almost 4 months since withdrawals were enabled. How have they not addressed this? Each of these sites has supply listed somewhere between ~120,700,000 and ~120,800,000.

CryptoQuant seemingly has the opposite problem–accounts for burns but not new issuance under PoS (supply is under 119MM according to them).

Etherscan and Ultrasound.Money seem to get it the most correct (although it could also be noted that Etherscan has a slightly lower total supply than Ultrasound.Money).

Would be nice if we could get some consistency here. To be fair, the set up for the withdrawal contract and BeaconChain make it a bit of a mess of accounting, but I feel like there should be some more urgency to address this issue at the big metrics sites.

u/Syentist complains about the SEC and u/edmundedgar has a fair balancing take

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u/Syentist:

The SEC writes a not-so-subtle letter threatening accounting firms against working with the crypto industry, including dangling the threat of legal liabilities

Some unelected fuckface sitting in a federal agency with no legislative backing from Congress is able to threaten private service providers to cut out a legitimate American industry, using the full weight of the American government to back his threats. Raw, unelected power.

Just as with the FDIC shutting down some banks because they are associated with crypto services, and deciding to save others which are not. Just as with Operation Chokehold 1.0 and 2.0. Unelected, authoritarian power from the Administrative State, trampling on American rights.

Watching the Supreme Court castrate these federal agencies ruling by ruling is one of the few bright spots in politics rn.


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u/edmundedgar:

Always read the actual thing, not the twitter crypto influencer’s summary of the thing.

https://www.sec.gov/news/statement/munter-statement-crypto-072723

We’ve had some really shady cases like the Tether attestations where they’ve engaged auditing companies to do “attestations” that are deliberately designed to make people think their money is safe, while leaving loopholes so they don’t have to actually keep the money safe. With Tether they literally wired the money from Bitfinex into a bank account, had the auditor certify that it was all there, then wired it right back out. Tether made a bunch of statements to make people think they’d been audited, and we only found out about it because the New York regulator figured out what was happening and got the information into a public filing. This is the SEC saying, if you do an attestation that isn’t an audit, you have to be honest about what it proves, and if the client starts lying about what it proves then you have to speak up about it or you could have legal liability too.

I know it’s complicated to have to fight on two fronts because we need to defend ourselves against the regulators as well as the scammers but can we please stop reflexively taking the side of the scammers who keep trying to scam people all the time?

u/Kallukoras breaks news of the Curve hack. Then u/skythe4 and u/bagogel12 outlines some of the collateral damage. Finally, u/LogrisTheBard gives us an ELI5 on how it happened.

View on Reddit →

u/Kallukoras:

32m crv drained:

https://twitter.com/Blockanalia/status/1685732007400079360

Sad 8year anniversary for ETH with one of the main (bluechip) DEFI projects getting rekt hard and spreading to projects having pools there.


View on Reddit →

u/skythe4:

Alchemix got hit by this reentry bug too today and it doesn’t seem to be a white hat sadly:

https://twitter.com/spreekaway/status/1685686694811496448

Seems that ALCX exploit confirmed NOT a whitehat :(


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u/bagogel12:

So many more:

https://twitter.com/vyperlang/status/1685692973051498497

PSA: Vyper versions 0.2.15, 0.2.16 and 0.3.0 are vulnerable to malfunctioning reentrancy locks. The investigation is ongoing but any project relying on these versions should immediately reach out to us.

Jpged 10M (frontrun by MEV bot) https://twitter.com/peckshield/status/1685645064364822530

Hi @JPEGd_69, you may want to take a look: https://etherscan.io/tx/0xa84aa065ce61dbb1eb50ab6ae67fc31a9da50dd2c74eefd561661bfce2f1620c

Metronome 1.6M https://twitter.com/spreekaway/status/1685669149911990273

Another curve pool (this time Metronome Synth ETH) hit by a similar exploit for $1.6m profit

Curve just tweeted: https://twitter.com/CurveFinance/status/1685696639325933568

To be clear - the dangerous combination was the affected vyper version AND using pure ETH


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u/LogrisTheBard:

Peckshield Twitter has some info. It’s a bug with certain versions of the Vyper compiler. Main victim right now are certain ETH based Curve pools. Newer pools (like most LST pools) are unaffected just because the Vyper compiler was newer at that time. I’m surprised that when Vyper changed this code they didn’t see a bug in the old code and notify people.

u/asdafari12 discusses the regulatory threat

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https://reddit.com/r/CryptoCurrency/comments/15da5v5/us_house_committee_passes_keep_your_coins_act_to/

This is why I check r/cc from time to time, that and sometimes the “story” posts interest me. Their knowledge of crypto is very superficial but they are often on-track with general news.

So apparently “protect self-custody” passed in a committee (every republican voted in favor and every democrat against). I am not from the US so didn’t understand how the process works and I see few do on reddit, but it is basically like this. After a committee approval, it then needs to be passed in Congress, by a majority. Then in the Senate by 60% and then Biden needs to actually sign it. He can veto and it would then take a 2/3 vote to overturn, vetoes are rare (Biden has 6).

The regulation side probably interests me more than most here. So far, Ethereum is mostly only used for Defi today, not gaming, betting, insurance, tokenization of real world assets etc. NFTs is maybe the second use case but doesn’t interest me. If defi were banned or I thought it would be, I wouldn’t hold ETH anymore since I thought other assets would appreciate more. For example, I never bought any Monero, it’s a regulatory nightmare imo. The US market is the most important because it has the most capital, being a large country and a lot of foreign investments. We buy stock in your companies (mostly tech), I doubt you invest much in foreign companies.

Very often, the western world also try to follow, or even copy US regulation. I used to be interested in flying drones and in 2021 my country (Sweden), introduced new laws that were an exact copy of the US rules. You have the nice round number 400 feet as height limit, we have 120 meters, which is the equivalent in feet and we adopted the rest too. If you sanction Iran, our companies have to comply, if you close your country due to Corona, we do the same (which I think was the correct decision). There are so many things we would never do first, but if you do it, we do it too. You lose a little bit of faith in your politicians when you become aware of this. We have clear and decent crypto rules, but they could change quickly from outside pressure. We are still a progressive country with few “backwards thinkers”, so that compensates a bit though.

I don’t think the US will ban defi, I think it is more likely than in 2020, but I think more red tape is coming and some of it can be impossible to live up to for Americans. Like KYC on all defi protocols, making private wallets (sometimes called unhosted/dark wallets) illegal, whitelist/blacklist of dapps. I am not seeing good regulation be passed in the US that will prevent the next FTX, the next stable coin crash, clarify uncertainties or allow companies to use defi. Imo, the Ds are against good regulation that is passed by Rs and in favor of bad regulation that will hurt defi. “You want to vote on a bill to make stablecoins less of a blackbox? Fuck no, every D go out of the room so we don’t have quorum and can’t vote on it” - it’s a clown show. A couple of days ago the Senate (D majority) passed a really bad bill that would make controllers or large investors of protocols responsible for what happens on them and require bank-like AML. If North Korean hackers used Uniswap, there are no controllers but they could go after Uniswap labs, if it passes. The Rocketpool oDAO be responsible over their products. Maybe a dapp gets hacked, they could probably go after the devs working on it and punish them.

Hopefully this might lead to something good and make Defi more anonymous and less centralized than today. As Voorhees said, if there are controllers, it’s not defi. But yea, if Blackrock enters, even with a defi ban in practice, maybe none of this “matters”, price wise.

u/hanniabu shares the big news from the IRS

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https://nitter.net/TheCryptoCPA/status/1686098439979798528

Today, the IRS issued a Rev. Rul. 2023-14 saying that PoS staking rewards are taxed at the time you gain dominion & control (D&C) over the token.

D&C occurs when you can sell, exchange or sell the reward.

If the tokens are “locked”, you won’t have D&C so there’s no income to be reported on your taxes.

https://www.irs.gov/pub/irs-drop/rr-23-14.pdf

u/doctor_schmee breaks down Hex and it’s recent charges from regulators

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Bloomberg Opinion article on whether index funds should be illegal discussed Richard Heart and his alleged fraud if anyone is interested in reading below:

Hex

Here is an economic system, or a system anyway:

  1. I make up a crypto token called MattCoin. I can issue an unlimited amount of MattCoins, since I made them up.
  2. I sell them to people for money.
  3. You can use MattCoins to make term deposits, with me: You can give me back your MattCoins and I will keep them for some specified time period (say, a year), and at the end of the period I will hand them back to you with interest.
  4. The interest is paid in MattCoins.
  5. The interest rate is high, say, 38% per year.
  6. This is the only thing you can do with the MattCoins. They’re not useful for payments, they don’t run smart contracts on a blockchain, all you can do is trade them on crypto exchanges and deposit them for a 38% yield paid in kind.

So you pay me $100 for 100 MattCoins, you deposit them with me for a year, and at the end of the year I give you back 138 MattCoins.

At the end of the year, how much would you expect your 138 MattCoins to be worth? I think the main options are [1] :

  1. $138. You put in $100 for 100 MattCoins, meaning that they are worth $1 each, and in a year you get back 138 MattCoins. If they are still worth $1 each, then 138 MattCoins are worth $138.
  2. $100. You put in $100 for some MattCoins, absolutely no economic activity happened, and in a year you get back 138 MattCoins. This is like a stock split: You had 100 shares of a pot worth $100, now you have 138 shares of a pot worth $100, each share is worth less but the pot hasn’t changed.
  3. $0. You put in $100 for some MattCoins, absolutely no economic activity happened or will ever happen, in a year you get back 138 MattCoins, but I keep the $100 and you don’t get to exchange your 138 MattCoins for real money again. There is not actually a pot with $100 in it; I just took the $100! You put in $100 and got back a pile of magic beans that are not redeemable for anything. The pile grew bigger over the year, but it remains worthless.
  4. More than $138. You put in $100 for 100 MattCoins, those MattCoins offered a 38% yield, other people see that 38% yield and said “I want some of that,” they buy some MattCoins, the price of MattCoin rises, still other people see the rising price and say “ooh I want some of that,” the price rises further, it’s a virtuous cycle, eventually each MattCoin is worth like $10,000 and your 138 MattCoins make you a millionaire.

I think that Answer 3 is the standard answer that traditional financial analysis would give you: You bought an electronic token with no cash flows ever, so it’s worth zero. I am drawn to this traditional analysis, but it has not really worked all that well for understanding crypto.

I think that Answer 4 is the standard answer that crypto would give you. This is a completely accepted mechanism of crypto finance: You have some token, the main thing that the token does is generate more tokens, you call those additional tokens “yield,” people are attracted to the yield, they buy the token and its price goes up. The “yield” does not come from any economic activity in the real world; it just comes from printing more tokens. “Ponzinomics,” people sometimes say. Loosely speaking, this is the thought process behind crypto “Ponzicoins” like OlympusDAO and Wonderland. Loosely speaking, it is the thought process behind many algorithmic stablecoins like TerraUSD. Loosely speaking, it is the thought process that Sam Bankman-Fried once described to me on Odd Lots: “You start with a company that builds a box and in practice this box, they probably dress it up to look like a life-changing, you know, world-altering protocol that’s gonna replace all the big banks in 38 days or whatever. Maybe for now actually ignore what it does or pretend it does literally nothing. It’s just a box.”

u/hanniabu has a call to action for the EVMavericks

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I have a call to action for EVMavericks.

Something I’d love to see and I think EVM is aptly positioned for is to fill a gap I’m constantly seeing mentioned: digestible updates on what’s happening in the ecosystem.

  1. Map out the various different sectors (defi, NFTs, L2s, modular chains, RWAs, social, gaming, infrastructure, staking, development, security, etc)
  2. Assign 2-3 people to each sector (some may need sub-sectors)
  3. Those people will focus on monitoring what’s going on in that space….new projects, updates, airdrop potential, etc
  4. Have a separate channel for each sector/sub-sector to drop these updates
  5. Have an additional person per sector/sub-sector to organize and condense those feeds and assign pre-defined metadata to each of the updates (new project, project update, airdrop, etc)
  6. Have another 2-3 people collate that info into weekly summaries

From here you can monetize it to create an revenue stream which can then be used to pay contributors, grow the treasury, and fund more projects. How to monetize?

  1. Start out offering this newsletter for free, this will help gain exposure/following as you get the process down and subsequent steps
  2. Move to a freemium service similar to Bankless, where you offer more basic info for free and have the rest behind a paywall. Substack can be used for this.

This platform can then be used to:

Week #28: July 28, 2023

Livestream Recording | POAP

The morning trinity

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u/wolfparking

Ethereum

u/UgotTrisomy21

$1864

u/696_eth

0.063

Weekly Haiku: u/Jey_s_TeArS

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zk washing spy,

Scan the center of your eye,

Earn until you cry.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Active validators: 693,231 (+2,032)

Pending validators: Joining 80.9k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: cryptOwOcurrency

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Congratulations Cardano for releasing their first DEX today! You can now swap tokens without full reliance on a third party.

https://np.reddit.com/r/cardano/comments/15976z4/spectrum_finance_cardanos_first_fully_open_source/jtdoqgs/

Creating this DEX appears to be the culmination of years of hard research, study, and academic achievement. It pays to take your time to do things right the first time without rushing.

Sometimes I wish we had DEXes on Ethereum. They sound like a really neat technology.

u/haurog discusses Gnosis chain’s recent developments and future roadmap

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u/shiftly linked to a gnosis chain talk yesterday by Frederieke Ernst, a gnosis co-founder were she talked about L2s, Rollups and Sidechains. I watched it on livestream yesterday as I am generally interested in the gnosis ecosystem and their chain. Shiftly mentioned being surprised by the vision of gnosis chain as they have thought it being more like an incentiviced testnet.

I am financially and technically invested by being a solo validator on gnosis chain. So take any positive sentiment I have with a grain of salt. The history of gnosis chain is quite an interesting one. It was born as xdai chain as one of the earlier EVM compatible alt L1 chains. The interesting thing they did was not having their own coin, but using xDAI, bridged DAI, as the base token to pay for gas. No own token meant no speculative frenzy in the last bull run. They developed rather quietly the only bigger deal they made was with POAP in 2020, that is why all our POAPs life on there now. And thanks to xDAI chain POAPs can often be minted for free as the gas costs are pretty negligible and are being paid by POAP. I still remember the pre xDAI chain POAPs which sometimes would have cost me $50 to mint.

In Summer 2021 Gnosis got interested in xDAI chain and took them over. xDAI chain rebranded to Gnosis chain. They started changing the consensus layer from a more permissioned set to a permissionless Ethereum approach. For this they started using the GNO token as a mandatory staking token. One validator costs 1 GNO, which is about $120. Much cheaper than Ethereum. There are about 130000 validators on Gnosis chain, about 6 times less than on Ethereum, but the economic security is obviously much lower due to only 1 GNO being staked per validator compared to 32 ETH for a single Ethereum validator. There are some large staking as a service providers, but nevertheless there are a substantial number of solo stakers, making the gnosis chain pretty decentralized. Unfortunately, I do not have any statistics available, as the websites I used before are defunct since a few months ago.

Now to the vision. The following description is how I understand it and is from public sources I read over the last 2 years. Generally, I think it is very hard for any alternative L1 to have a value proposition as Rollups most probably will eat their lunch sooner or later. At the same time the Gnosis founders have been in the crypto space for so long, I assume they know what they are doing and how hard it is to have a value proposition. At first, their idea was for Gnosis chain to be like an incentivized testnet, like Kusama is to Polkadot. The idea was to first test hard forks on Gnosis chain and then deploy to mainnet. Reality threw a wrench in that idea, the merge on Gnosis chain was a few months after the Ethereum merge, same with the shapella hard fork which will be in 2 weeks on Gnosis chain.

This brings me to the talk linked by u/shiftly yesterday, which describes the new vision I have not seen described before. I definitely have seen more critical talks by Gnosis chain people aginst rollups in the last few months but did not really know why. The Gnosis team pivoted Gnosis chain to being more of Cosmos like ecosystem around Ethereum. They build a trustless bridge to and from Ethereum. And also gnosis pay will make jumping from the various chains as simple and trustless as possible.

Will it work out? I have no idea. Rollups for me have been the big disappointment of 2021 and 2022 and still are far away from the final version of being as trustless and decentralized. On the other hand Optimism and Arbitrum have become pretty reliable for everyday use and various ZK rollups are coming out left and right. Nevertheless, for me Gnosis chain is a hedge against the Rollup vision not working out as fast as necessary. Gnosis chain might be able to get some more usage in the coming years. Will Gnosis chain end up as a rollup on Ethereum? Maybe. But even then, due to the decentralized validator base, they might have a headstart for sequencer decentralization compared to othe rollups which first have to achieve that.

Tldr: Gnosis chain, formerly known as xDAI chain, pivoted in the last few months to a more Cosmos like vision for the Ethereum space consisting of EVM chains connected to each other by trustless bridges. Will it work out? Who knows.

u/Bob-Rossi has some delegate updates on Arbitrum and HOP

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Little Arbitrum DAO update for everyone as a delegate. I’m assuming ARB links are still shadow-banned, but want to get the picture across regardless.

There has been push over the last month or so to get some type of grants framework started with the DAO. Two of the big proposals were Plurality Labs and Questbook.

Plurarlity Labs is looking to start a grants program over multiple phases. Initially running the program, but with an end goal of phasing themselves out once a way to run grants on-chain is solved. I voted “For” this proposal (Snapshot) and it has narrowly passed. The DAO has been slow to start and somewhat directionless, so I’m hoping this will help with that. While grants will be handed out with this project, the scope is more about the big picture process that develops over the long term.

Questbook was originally tied in with Plurality Labs, but split off into it’s own request. It has a similar goal - a method to run grant programs - albeit with a more focused approach. They have a system they have implemented with other projects they are looking to bring to the ARB DAO. I have been, I guess, ‘sponsoring (?)’ Questbook as I have been working with them to post the Snapshot / Tally votes. Snapshop has passed (Snapshot) and the Tally Vote (Tally) has just started up. I’ve voted “For” on this, as once again I think the grant projects are good for the space and like to see different ideas take a stab at growing the Aribtrum space. Having talked to the people there it seems like a good project!

An additional note. If Questbook passes, keep an eye out if you want to get involved. There will be a two week window where knowledgably crypto-ians can apply to be a Domain Allocator. Essentially, you would take over 1 of 4 target grant domains (Gaming / Developer Tooling on NOVA / New Protocol Ideas / Education, Community Growth and Events) to help decide if projects can get grant money. It is a paid role, so something to think about if your into that. There are details in the votes.


View on Reddit →

It’s been a minute since I made any HOP updates too! Not too much since I last posted, a lot of housekeeping votes (multisig refills, sybil hunter airdrops). Of note tho:

u/hanniabu is drumming up support for getting Lenster to add Reddit-like threads and mod tools

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https://lenster.xyz/posts/0x0d-0x03ea-DA-27346e91

What feature do you want if u/lenster have communities 👥?

If you have an account it’d be great to show support for reddit-like threads and mod tools. You probably won’t be able to comment on this post but there’s a few comments that say something similar that you can like to give a sentiment boost such as this one: https://lenster.xyz/posts/0x1d6e-0x092a-DA-0563fbdf

u/Syentist explains a potential use case to send ETH and OP skyward

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Worldcoin goes live as a member of the Superchain today.

Im not fully sold on an eye ball scanning billionaire, but it’s undeniable that Sam Altman is one of the hottest names in tech at the moment, and him using a very ethereum-centric product for a digital identity solution coupled to a financial system (literally what we have been harping about for years) is pretty…interesting. For eg they are not just simply using the OP Superchain, they are even spending effort on shipping 4844 along with Base

It’s also screamingly obvious that online presence (social media, financial txs etc) need to be tied to some form of identity to prevent bot spam, and even worse, AI powered bot spam. So if this triggers a gradual “aha” moment among the tech zeitgeist, that decentralised and interconnected identity + social media + financial systems running on Ethereum are a very elegant solution to the problems of today…it could be unbelievably bullish for ETH and OP.

Or it could be one of those retrospectively ridiculous ideas which were born and died in the depths of bear markets. We shall see soon enough.

Edit: big V dropped a blog post on biometric proof of person hood today!. Worldcoin team is listed in the acknowledgement line so some synchrony there. Reading through it, I’m more convinced than ever that Proof of Person hood/decentralised identity will cross the Rubicon and get recognized as an important “legitimate” mainstream usecase of public ledgers (and of Ethereum, specifically).

u/benido2030 shares their latest favourite podcast episodes

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+++ Benido’s favorite podcasts episodes +++
Some weeks ago, someone here asked for podcast recommendations and interesting episodes. Since I enjoy podcasts I thought it might be a service to the community to highlight those I really liked (or maybe disliked? Let’s see what the future brings). The first edition was okay I think, so here’s the second Top3.
Bell Curve: Is Liquid Staking a Winner-takes-all market? feat Hasu

This episode is interesting. It’s part of the “LST Season” of Bell Curve and the first episode after the kickoff. As most of you are probably aware Hasu is a advisor to Lido and was not really in favor of self limiting when the discussion popped up last year (or beginning of this year? I can’t remember).

What’s interesting here is that Hasu explains his arguments and assumptions about the staking/ LST market (e.g. CEXes and how they could capture a massive share withouth necessarily being ETH aligned, because it’s just one business for them). I followed the discussion back in the days, but didn’t really understand where he was coming from and understand him better now. I think we have to distinguish between his comments with regards to the market (“staking/ liquid staking is a winner takes all market) and specific LST providers/ protocols. He made a very interesting comment (apparently for the first time) where he basically says”its crucial ETH stays decentralized and the criticism towards Lido is correct".

LSTs will be huge, listening to this one is a good time investment, even if you don’t agree with Hasu in the end.

Uncommon Core (2.0): The Reboot feat Jon Charbonneau

Don’t worry, this one is not so much about Hasu :) It’s the first episode of Uncommon Core after 1.5 years, this time featuring Jon Charbonneau instead of Zhu Su (who apparently couldn’t make it).

Jon is also front and center in this episode. He is introduced and interviewed, his CV is interesting (though his statement that he’s in crypto “since just one year” is kind of funny, since he had been interested before, but now he’s full time. But if full time is a req, most of us aren’t into crypto…).

Jon is an interesting guy, since he is not really part of any crypto tribe, but seems to be rather ETH focussed. Since he is rather new and neutral, his point of view is interesting. I made some comments the past couple of days about L2 (de)centralization and most of those were inspired by this episode. I think he is not idealistic and I also don’t see him as a “decentralization maxi”, hence some of his positions will probably clash with some of us, but I also think it’s good to discuss counter arguments. Mostly because of this I highly recommend this episode (and probably also to follow Jon on Twitter).

Epicenter Podcast: Ethereum - MEV, Staking Derivatives and Privacy feat Vitalik

This guest doesn’t need an introduction. I picked this episode, cause it’s from EthCC, so last week, and probably VB’s latest thoughts.

It’s a good interview, nothing too crazy (though there was one comment that I didn’t understand, but can’t recall what the topic was and hence also can’t ask you to explain to me, FML), but still a very good interview.

I also picked it, cause I made a comment in the daily some time ago asking if there shouldn’t be a protocol that allows you to borrow against your validator. I even stated that “It’s probably way trickier than I make it seem?”… and yes, that’s the case. And the issue is not tech, it’s an attack vector with regards to security. Since you could basically borrow against your validator, setup more validators (repeat) and/ or basically attack the network “for free” (you’ll be slashed, but you have like 80% of the ETH value back in USD or so). Vitalik mentions this in a slightly different context, but this was a crazy moment (and I have to say I should have thought about this back when I made the comment 2 months ago).

So… this is it, these were in my opinion the best podcast episodes of the past weeks. The XRP case/ decision was also a very important topic and picked up in a lot of podcasts, but I don’t think it was as good as these 3.

I think I’ll be back mid August with 3 new episodes, since then I’ll be back from vacation and will listen to more podcasts on the way to work.

u/wolfparking updates us on CBDCs

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Nice compilation of info on this site looking into the world of CBDCs. Interesting to see World economic dominance and powers changing gears around trade and the implications it might have for the US dollar. The article states that it is important to note that some countries build CBDCs in order to attempt to limit the United States’ ability to track cross-border flows and enforce sanctions. In the long term, the absence of US regulations and standards setting can have large geopolitical consequences, especially if China and other countries maintain their first-mover advantage in the development of CBDCs.

Russia just cemented their plans to create a digital national currency Digital Ruble. They were one of the last of the BRICS economic markets group to legislate and finalize a CBDC project; South Africa now being the last to implement plans and is still trialing different models before committing to a project. Under the above mentioned bill, Russians will be able to make payments and transfers from their digital wallets, which would be within the central bank’s platform or that of one of its partner banks. On the other hand, the CBDC can only be used for payments or transfers, not loans or deposits, according to the central bank. Testing will begin next month.

Brazil still hasn’t released their CBDC although it should come out sometime later next year in 2024.

India’s pilot program is ramping up. The India central bank aims to reach a target of one million CBDC transactions per day by the end of this year from 5000-10,000 currently. e-Rupee Article

China’s digital Yuan coin hits $249 Billion in transactions so far this year. LINK

Currently 130 countries, representing 98 percent of global GDP, are exploring a CBDC. In May 2020, only 35 countries were considering a CBDC. A new high of 64 countries are in an advanced phase of exploration (development, pilot, or launch).

u/accidental_green created an open source tool for client migration!

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I created an open source tool that allows anyone running Geth to instantly swap to a minority client with 0 configuration or effort. Just 1 click, new client.

Switch to/from any execution client (Geth, Besu, Nethermind) to any other, as well as remove and reinstall a broken client. Instructions on Github and more info in the ethstaker post.

Feel free to check out my other open source Ethereum projects:

Instant Validator - Install a full validator from fresh Ubuntu in minutes
Validator Updater - Instantly update your Execution and Consensus client to latest version

I plan to do more projects like this, so let me know if you have any ideas to help improve the staking experience!

u/Hocilef covers the zkSync SyncSwap exploit

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from Syncswap twitter "We would like to inform you of a security incident with EraLendu/Era_Lend a lending platform on zkSync Era.The EraLend team has detected and confirmed a cyber attack on their platform at (UTC) 2023/07/25 09:27:21.

The attack has already been contained, and the threat actor is no longer able to continue their actions, as per the official announcement from EraLend. The EraLend team is currently collaborating with cross-chain bridge partners and zkSync to prevent any further potential asset outflows.

Only USDC deposits on EraLend were affected by this incident.All other assets remain secure and unaffected, including SyncSwap USDC/ETH LP supplied on EraLend. However, it’s recommended to withdraw your supplied LP on EraLend if any until things are sorted out to avoid further issues. There is no need to withdraw from SyncSwap protocol as it’s not involved in the incident.

TL;DR - EraLend has been attacked and caused certain losses for EraLend USDC depositors. SyncSwap protocol is not involved; SyncSwap LP supplied on EraLend remains secure but you should withdraw them from EraLend.

Please follow updates from EraLend’s official Discord server and Twitter to keep up-to-date, and beware of scams! We hope everyone can stay SAFU"

u/logic_beach shares his 365th daily robot artwork NFT

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RobotADay

Logic_Bot 365

2023/7/26

“FIN”

https://opensea.io/assets/ethereum/0x0447433bd197f03be984a6053241ae8d347c5539/350

When I first started drawing Logic_Bots, I was working in a regular 9-5 job and wanted to break into the web3 ecosystem. So I took the plunge, quit my job, and started focusing on Ethereum (etc.) full time. Since that first bot drop, I have found a solid footing in web3 and don’t plan on leaving anytime soon! I have learned a ton and have still lots to learn/build.

Thank you to the awesome web3 community who have supported me and everyone else who put up with me!

🤖💙✌️

u/RooftopPortaPotty explains Google’s latest plans to try and monopolise the internet

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Hanni, I appreciate your asking!

To start off, I have not heard of this before you shared it. This is going to be a long rambling of my thoughts and opinions.

This idea seems to be an absolute desecration of privacy on the internet. How would this even work when using an anonymizing service such as tor?

Google does have a long history of introducing new things that are not actual HTTP specs, purely as a way of forcing users to switch to chrome as their web browser.

Of course there are already solutions such as captchas, javascript checks, and services such as cloudflare which attempt to detect and prevent bots from interacting with web servers. That said, Web Environment Integrity seems to completely obliterate the usual flow of the world wide web.

Having such a centralized service(however the attesting API is implemented) is a devastating breach of trust of the client(though, servers should never trust clients). Who even controls this API? Google?

It seems that this idea could be utilized by servers regardless of infrastructure, which in some cases(such as enterprise intranet), may provide enhanced server-side security.

I absolutely agree with vivaldi that this is nothing more than DRM forced by web servers onto clients. Much more troubling is their note of the following,

It is also interesting to note that the first use case listed is about ensuring that interactions with ads are genuine

which leads me to believe that this has been created solely for Google’s ad business(after all, they are nothing more than a giant advertiser).

With chromium’s market dominance, widespread implementation of this monstrosity would most certainly lead to the demise of competing browsers.

The github link states ‘Don’t enable new cross-site user tracking capabilities through attestation.’ as a goal. This is completely contradictory to the goal of Web Environment Integrity, which is to gain as much information about a client as possible, and share it with servers.

Another goal is ‘Allow web servers to evaluate the authenticity of the device and honest representation’ honest lmao yeah fucking right google is honest.

‘Continue to allow web browsers to browse the Web without attestation’ they just admitted that there is no point to this service. If it is avoidable, then whats it for?

‘Enforce or interfere with browser functionality, including plugins and extensions.’ They know damn well that it will interfere with any functionality that doesnt play by their rules.

Every one of their ‘example use cases’ are laughable.

‘Detect compromised devices where user data would be at risk’ is especially ridiculous, as protecting the client is the opposite of WEI’s intended purpose. How would they even detect compromised devices where the compromised device is making a seemingly normal request?

The ‘how it works’ section is completely devoid of substance. Consider the following:

  1. The website of a dapp uses googleapis, gstatic, etc for their operations.
  2. Google retains an innumerable amount of data points regarding a user and their browser.
  3. Google blacklists a ‘browser’(still not sure how that would work, and neither do the authors of this trash idea, as is apparent) for interacting with anything crypto related.

Ok I honestly cant take this any longer. Whoever whipped this up clearly knows enough to know that this idea is evil.

I only see 4 goals of this project:

  1. Make google ads inescapable.
  2. Gain as much information of users of competing browsers as possible
  3. Blacklist those users, and force them to use chrome
  4. Ensure that google is the final arbiter of internet-worthiness

Wish I could say its surprising…

Week #27: July 14, 2023

Livestream Recording | POAP

The morning trinity

View on Reddit →

u/Etereve

Ethereum

u/https://reddit.com/user/wolfparking/

$2007

u/696_eth

0.064

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Recession looming,

Interest rates still glooming,

Ether keeps blooming.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Pending validators: Joining 82.2k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Once again, I am off camping - See you all in the few days!

Shitpost of the week: ArcadesOfAntiquity

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> be me

> open Chrome

> "oh, metamask has updated"

> new interface layout, looks significantly less janky

> go to copy my account address so I can paste it into some web3 site

> the copy address function doesn't work now

> "okay, I'll just open the explorer page and copy the address there"

> "oh, metamask removed the explorer page link and replaced it with a link to its own portfolio app, which doesn't display the address by default and just asks me to connect my wallet"

seriously, the metamask team seems to possess a special kind of stupid

I’ve put it off for too long… my new task is to abandon metamask completely

u/Tricky_Troll asks for others’ experiences after some recent ChatGPT developments

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https://reddit.com/r/ChatGPT/comments/14ruui2/i_use_chatgpt_for_hours_everyday_and_can_say_100/

I use chatGPT for hours everyday and can say 100% it’s been nerfed over the last month or so. As an example it can’t solve the same types of css problems that it could before. Imagine if you were talking to someone everyday and their iq suddenly dropped 20%, you’d notice. People are noticing.

A few general examples are an inability to do basic css anymore, and the copy it writes is so obviously written by a bot, whereas before it could do both really easily. To the people that will say you’ve gotten lazy and write bad prompts now, I make basic marketing websites for a living, i literally reuse the same prompts over and over, on the same topics, and it’s performance at the same tasks has markedly decreased, still collecting the same 20 dollars from me every month though!

Is this the beginning of AI’s descent into the trough of disillusionment just like 2018 crypto? Whether it be due to OpenAI making changes for safety or cost savings, or increasing pollution of the data set with AI generated data leading to a kind of AI inbreeding, it’s hard to say what’s causing it but I’d love to hear if others have also noticed the same thing.

u/cryptOwOcurrency answers some staking questions

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Here’s an expanded and fixed version that should help clarify.

  1. One validator is randomly assigned to propose during a particular 12-second slot.
  2. This validator proposes a block, either generated by them or a relay. (If they don’t propose a block, no one else gets to. The slot is “missed” with no block in it. Because there is only one validator assigned to each slot, there can never be 2 competing blocks. If a single validator proposes more than one block during their assigned slot, they are slashed.)
  3. All nodes, both staking and non-staking, verify for themselves that the block is valid. After verification, they pass the block on to yet more nodes, and so on through the gossip network until every node on the network has a copy of the block.
  4. Other validators attest the block is valid. These votes are counted/aggregated by yet other validators. The block reaches 2/3 votes, and is finalized. These messages echo back through the network, updating staking and non-staking nodes alike as to what the most recent finalized block is.

With this in mind, please rephrase any additional questions you have, and I can do the best to help answer them!

u/Set1Less covers a couple of the newer web 3 wallets

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Re-installed Frame wallet to give it a spin, vs my main wallet now Rabby extension. Using both via a Ledger HW Wallet. Embarked on this mainly since another user had mentioned that Rabby was tracking wallet installs, so I wanted to explore another wallet that didnt track users, but still offered the same functions.

As compared with an earlier install, now Frame seems to connect well with most apps. However it still lacks a lot of features .

Rabby is still way more functional for someone like me who makes many txn every day, on multiple chains/L2s. From wallet security perspective, it has inbuilt transaction simulation results which show the changes to your wallet. (example for a dex swap txn it would show 0.1 eth out, 185 usdc in etc…) So you can visualize exactly what your transaction is doing before approving it. Rabby also has many other security features like warnings when interacting with a new contract for the first time, approval limit warnings, inbuilt approval revoke interface etc. Compared to this, Frame seems rather bare bones

On the downside Rabby is clearly tracking users via an identifier number given to each install of the extension, without any opt out. As reported by u/RooftopPortaPotty

The hunt for the best wallet continues. If Frame can add these security features, it would beat Rabby hands down for me

u/LogrisTheBard educates us on the tragedy of the commons

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Today I’d like to talk about another tool from Moloch’s Toolbox. This one is like the inverse of first-mover disadvantage and it’s probably the best known pattern of coordination failure. Of course I’m talking about Tragedy of the Commons. Formally, there is a known Pareto Optimum but each actor is free to defect from that strategy and personally profit by doing so at the expense of all other actors. Common outcomes from this coordination failure are things like nature ecosystem collapses from activities like overfishing, market collapses from raced selling into a price inelastic market, and famine.

By this definition, there are many examples of things that are not commonly considered “Commons” that nevertheless fall into this category of problem such as the famous Prisoner’s Dilemma. The “commons” in this case is reduced jail time. In this scenario each actor is free to defect from the optimal solution and snitch to the police and reduce their personal prison time while increasing the total prison time. The net result is all actors inevitably defect and the system collapses to the worst possible value (what is the antonym of Pareto optimum called?).

To correct the incentives you have to change the local calculus of each actor. Recognizing that each actor is likely to locally optimize, you have to add external incentives for complying or external penalties for defecting from the Pareto Optimum. Typical solutions to this problem resemble fail-deadly deterrence systems which admittedly isn’t a source of optimism for humanity. A less seemingly insane variation of this requires that all actors submit to an common arbiter such as a government that makes defecting illegal but this solution breaks down when they don’t share a nationality.

Let’s look at fixing the prisoner’s dilemma as an example. If, prior to the crime, each criminal had to put up a hostage then their local optimum is to risk the longer prison sentence to protect their hostage. They would be willing to do this because they also know this is true of the criminal in the other room so they can rest assured that the other criminal will also comply rather than defect. After they get out of prison with their minimum sentences they can have their hostage back so it ultimately cost them nothing to enter this agreement (the hostage experience notwithstanding).

What I like about this solution is that it can be applied as a layer on top of existing systems without having to otherwise change those systems. For example, the criminals can enter this agreement without changing the dynamics between the criminals and the police and can do so without the consent of the police.

The example above breaks down in two situations:

  1. There are actors outside the contract system. In the prisoner’s dilemma, what do the criminals do to secure the cooperation of an outside witness? How do you prevent overfishing from countries that refuse to pass or enforce laws preventing ships from their nation from overfishing?

  2. The actors have nothing to use as a hostage.

To address the first case, the hostage you stake has to be something you can weaponize. For example, the criminals could stake a large sum of capital instead of a loved one. As long as the stake can be used to apply negative incentives against external actors somehow, you can use it to fix local incentives. For example, the criminals could make a conditional assassination contract against any witnesses and leak the information about this contract to the witness before they speak to the police or testify in court. This solution can be combined with a dead man’s switch so no active actions are required by the criminals to enforce it.

In the second case, you have to find some kind of negative outcome to enforce. The most common stake-of-last-resort example is the safety or life of the defector. For example, in The Dark Knight, The Joker made each criminal literally implant bombs into themselves. Assuming we can bootstrap reputation systems, reputation is a much saner collateral for less extreme use cases. That’s basically all your credit score is when Visa grants you a credit line without collateral. I like the idea of using reputation collateral better than having to implant oracle controlled bombs into everyone before we would have a chance at fighting climate change in any case.

u/wolfparking shares their RocketPool staking experience

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What a day!

After waiting 49 days in the queues (Rocketpool and then Beaconchain) my mini-8s were scheduled to go active online at 1am this morning. During the entire day I checked my logs several times and felt confident everything looked good to go. Set an alarm and I slept right through it. Woke up 2 hours later and logged in to see how things looked. Failure. No attestations. Losing Eth. Fortunately, the friendly people in the Rocketpool discord immediately identified the problem and I was up and running within an hour. Fast forward to just a bit ago and I got a proposal! Not a huge amount, but still my APR is at 42% on one of my minis. Day 1! So tired, but gawdamn I feel like I’ve won a little lottery!

Anyway, no one really here to share this with, except you fantastic people!

u/dentonnn just got hired with a bonus!

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Crazy update! I saw an open position on crypto-twitter and messaged for shits and giggles. Got an interview off it, hit off really well…and told the interviewer I am a node operator, read ethfinance, fan of the green pill, and watch youtube videos of MEV.

Few days later…received an offer with a 20% pay rise, a fully remote role, working on blockchain infrastructure!

Just wanna let you all know that I am so grateful for all of you! I absolutely would not have gotten the job without learning from you all, so thank you for this awesome community!

u/Dray11 is finally releasing their new NFT project!

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Just to let everyone know, following on from my initial post the other week, the mint is now live!

All mint proceeds and any subsequent royalties will be donated to charity, which will be decided on by the holders.

Worked super hard on the this for the last few months so just hoping all that effort translates into a good amount being raised and donated to charity

Appreciate anyone who’s able to help

Mint here:

https://www.autominter.com/mint/649c1151c70555000ed2ad58

u/T0Bii explains MEV for those who are out of the loop

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Not sure if trolling since I’ve seen you around for a while, but just in case someone comes around with no idea of MEV:

MEV = maximum extractable value is the reward a block builder can get by ordering transactions in a way that profit them.

Example: Someone makes a buy transaction on uniswap with up to 5% allowed slippage (bad idea). A bot will see this and create two further transactions. One to buy the same token (increases the price) and one to sell it again.

The the bot will submit a transaction bundle containing their buy transaction (increasing price), the victims buy transaction (increasing price) and their sell transaction (profiting from increased price) in this exact order.

This is called a sandwich attack and will earn them some money.

But other bots will be doing the same thing, so in order to actually be the one included in the block, they’ll also promise some money to whoever builds the block.

The money extracted by the bot and the reward for the validator is called MEV.

There are a lot of different kinds of MEV. Bad MEV like sandwich attacks, “good” MEV like DEX arbitrage which result in efficient markets.

In order to profit from MEV you could a) build a MEV bot (very very high effort) b) solo stake ETH (reasonable effort, high capital investment), buy LSDs like rETH.

This is very simplified, there are a lot of nuances around MEV. Feel free to research proposer-builder separation (PBS) and flashbots.

u/Yeopaa covers a major change in Google Play store policy regarding NFTs

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Google Play Changes Policy on Tokenized Digital Assets, Allowing NFTs in Apps and Games

https://www.coindesk.com/web3/2023/07/12/google-play-changes-policy-on-tokenized-digital-assets-allowing-nfts-in-apps-and-games/

Week #26: July 7, 2023

Livestream Recording | POAP

Guest appearance by Frisson from Tally, an on-chain DAO framework.

Announcements

The morning trinity

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u/johnnydappeth

Ethereum

u/Yeopaa

$1910

€1761

£1503

u/696_eth

0.062

Weekly Haiku: u/Jey_s_TeArS

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Indexer in RUST,

Beyond reorgs and their dust,

In good code we trust.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Pending validators: Joining 87.1k, leaving ~100

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

I am going camping for the next 3 days, so no updates until the 10th!

Shitpost of the week: u/Tricky_Troll

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On this day, 247 years ago, history began. Nothing of importance ever happened before then. Happy 4th July everyone. 🇺🇸

Obviously /s on the first bit

u/cheeky-gorilla reminds us to contribute to the latest clr funding round!

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The 9th clr.fund round is open with a $56k matching pool for Ethereum-based public goods!

There’s all sorts of cool projects in there e.g. for stakers (Ethereum on ARM, EthStaker, Stereum, Rhino Review), core protocol development (Protocol Guild, ethers.js), different FOSS (LexDAO chatbot, rotki) and meetups (mainly in Latin America, e.g. Ethereum Lima).

Remember that even a small donation matters! Clr.fund uses quadratic funding to allocate funds from the matching pool to projects, meaning projects with many small donations get more from the matching pool than projects with fewer, larger donations!

18 days left to participate, gas prices are relatively low again so might be a good time to contribute! 🫶

u/Set1Less explains Coinbase’s latest move in their lawsuit with the SEC

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Dismissal is not realistic right away, but Coinbase still makes compelling arguments.

Mainly centered around the fact that even in 2021 confirmation hearing, Gensler says SEC doesnt have legislative authority to regulate crypto exchanges. Before SEC, even as a professor Gensler has said the same thing many times. Pre- gensler, Hinman speech is cited where SEC indicates even an ICO coin though a security at the time of issuance can eventually become decentralised and no longer a security

Then out of nowhere in 2022, contrary to Genslers own testimony and SEC’s earlier position, the SEC came up with the “come in and register” mandate, that every token is a security, and started suing various exchanges without even once engage in any rule making. All of this without any new law from Congress. Coinbase bring up Major questions Doctrine which means significant unresolved questions are not down to agency interpretation but require actual lawmaking

There is an outside chance that the judge decides to throw SEC’s case out. But even otherwise, I fully expect Coinbase to litigate this to circuit appeal and then to SCOTUS where the SEC is on a much weaker footing and Coinbase can win a lot of key battles

u/Syentist and u/pr0nh0li0 discuss US supreme court cases

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u/Syentist:

With today’s Supreme Court decision on the student loan relief plan (which, for the record, I find unfortunate, so spare me the downvotes), it’s extremely likely that the SEC case against Coinbase would be dismissed if it escalated to the supreme court, under their Major Questions Doctrine

The administrative state is being gutted by this Supreme Court, for better or for worse (depending on which side of the aisle your views are). If Gensler had any sense, he would push his party members in Congress to work with the Repubs to have some form of regulations passed, instead of watching the agencies’ jurisidictipm eroded by the courts bit by bit. But political ambitions mask common sense, so no chance of that happening sadly.


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u/pr0nh0li0:

Lotta big news out of the SCOTUS today but just want to point out something lesser noticed that was just announced that could have big implications for crypto (and a ton of other things for that matter). They announced they would hear Jarkesy v. SEC in the fall session.

It raises a few issues, but one of the most important elements of this case is that the plaintiff alleges that his constitutional right to fair trial was violated, or as the fifth circuit put it when it opined in favor of the plaintiff:

The SEC “often acts as both prosecutor and judge, and its decisions have broad consequences for personal liberty and property” … that “flies in the face of “the Constitution,” which “constrains the SEC’s powers by protecting individual rights and the prerogatives of the other branches of government.”

I actually have mixed feelings about this one. On the one hand, I think yes, it’s clear the SEC and some other agencies overreach and make some decisions outside of their purview. On the other hand, this could have HUGE implications for all federal agencies, and could make a lot of important federal organizations like the FDA, EPA and FCC pretty toothless. Not to suggest that these institutions are perfect or even particularly good by any means, I just have a fear of how things could look if we neutered them even further and relied on the courts to adjudicate every single violation. No system is perfect but the latter system would be incredibly bogged down and inefficient.

Pretty good white paper summarizing and discussing some of the implications here

u/oldskool47 wants us all to stick together despite the Reddit drama

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My Fellow Ethereans,

I would like to beg every one of you to stick it out here on Reddit. I’m a boomer who doesn’t add value, but I’ll be staying put. I joined Reddit in 2014 to participate in r/bitcoin (lol) and I feel like this is my home, with our family. reddit on the browser, let’s give it a chance? Pretty please?

Signed,

u/oldskool47


Editor’s note: If there’s one thing good waffles do, it’s stick together.

u/shiftli shares a hack to keep 3rd party Reddit apps working on Android

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To all Android users who are unsatisfied with the official Reddit app or the RiF hack:

RedReader is a very usable open source Reddit client for Android that got a “non-commercial accessibility exemption” and continues to work for the time being. It’s available on Play Store and also F-Droid, if you prefer to avoid google.

u/Tricky_Troll starts a discussion about the concerning UK online safety bill

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Do any Brits want to weigh in on the Online Safety Bill which is getting closer and closer to passing? There’s a good outline of it here if you’re out of the loop: https://proton.me/blog/online-safety-bill

TL;DR:

The Online Safety Bill is currently working its way through the UK parliament, and it’s expected to be passed into law this autumn. This wide-reaching piece of legislation would force any “user-to-user service” (such as TikTok, Facebook, and Twitter) or search engine that’s available online in the UK to protect all its users from illegal content and children from potentially harmful content.

Clause 110 of the Online Safety Bill would allow the UK government to require any “user-to-user service” to use “accredited technology” to identify and remove child sexual abuse material (CSAM) or terrorist content “whether communicated publicly or privately by means of the service”.

In plain English, clause 110 would give the UK government broad powers that would allow it to require any online service available in the UK to monitor all user-generated content on its platform, including its users’ private messages.

This is a problem for end-to-end encrypted services, which can’t access their users’ content.

While UK lawmakers have stated they don’t want to ban end-to-end encryption, the only ways an end-to-end encrypted service could comply with the bill are:

  • Remove its end-to-end encryption

  • Weaken its end-to-end encryption

  • Install client-side scanning

  • Cease providing service in the UK

UPDATE March 6, 2023: Removed a reference to the Online Safety Bill applying to “large” companies. In fact, it would apply to companies of all sizes, placing a large technical burden on many medium-sized and small businesses.

I find this extremely concerning. Apps like Signal and WhatsApp have pledged not to weaken their encryption for such legislation and Signal will straight up leave the UK.

Regarding my personal situation, my lovely girlfriend lives in the UK and I am finishing a degree in NZ for the next year. After that, I plan to move to live with her since she isn’t really able to move to NZ in the next few years but long term is a different story. But I genuinely don’t want to move to the UK if this goes in to force and it’s either illegal to use encrypted messaging apps or not possible to privately communicate with Brits. I know that might seem extreme and I realise that it would be naive to assume such legislation would never come to NZ but for now that’s not the case. Plus of course it seems like Apple and Google want to implement client side scanning anyway.

But for me, privacy is a hill worth dying on (well not literally but it’s worth fighting hard for and moving to a quiet place in the middle of nowhere for). The way I see it, you cannot have a free democratic society without privacy. Though there may be a slight caveat for if the surveillance tools involve open source client side scanning with transparent and effective detection software but let’s face it, that’s not how it will be done. There are already too many stories of false positives and cases of guilty until proven innocent and it’s clear that legislators are either too stupid to understand the technical problems with backdooring encryption or are malicious and just want more surveillance.

I’ve got nothing to hide. If you visit me in person you’re more than welcome to go through all of my private messages and emails as long as you’re only looking at them with your own eyes. I genuinely don’t care. But I do care about people being able to hide perfectly normal things if they need to- it’s human nature. Plus, in a democracy, there will be things you need to hide to prevent malicious capture of the government by bad actors. This means privacy is worth it even if it means criminals will hide things too (though they’ll do that regardless of if there is mass surveillance or not- only normal people lose if legislation like this passes).

Am I going insane or is the average Joe too distracted, complacent and/or stupid to realise how big of an issue such legislation is?

Oh, and if you disagree with me, I’d love to hear why. Having strong opinions is pretty stupid if you’re never open to criticism and dissent.

u/ecguy1011 reminds us that it’s our last chance to contribute to the KZG ceremony

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https://twitter.com/CarlBeek/status/1675839250225405952

"announcing the final round of of contributions to the KZG ceremony.

if you haven’t contributed yet, now’s the time: - the minimum number of transactions has been lowered to 8 - the blacklist was just cleared - contribtutions will close 23-07-23"

https://ceremony.ethereum.org/

u/barthib updates us on the debate around the 32 ETH validator limit

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There is a disadvantage to this great improvement though: you stop receiving your rewards every 5 days. If you want to extract your yield periodically, you have to unstake and sell and restake regularly.

With all the delays implied, during which you get 0 APR, is it worth compounding? You can already compound by buying rETH or using an exchange, without locking your rewards nor unstaking.

Due to this drawback, will whales and exchanges really use this new system ? I doubt it , so I doubt that the number of validators will significantly decrease (which is the goal).

I’m afraid that we will end up with either rotating validators (the first idea suggested long ago to solve the problem) or a simple onboarding halt at 1M validators: the system stops processing the entry queue which grows and is only advanced each time an active validator exits.

u/bagogel12 has a PSA for anyone affected by the Orbiter Finance discord hack

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Orbiter commits to refund some losses of their discord hack some weeks ago. Probably not a full compensation but something you could get. (I have not checked their discord, am on mobile I assume the tweet is honest and not another scam)

I remember some of this community were victim of the hack. If you remember the name, can we tag them?

https://twitter.com/Orbiter_Finance/status/1676478549627371521

u/stablecoin has a reminder for Gnosis chain stakers

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Get your Gnosis nodes ready for Shapella (withdrawals)! Happening Aug 1 (UTC) according to Lighthouse.

Priest Witherspoon Latest

Summary This is a low-priority release for Mainnet, Goerli and Sepolia users. >However, this release schedules the Capella upgrade for Gnosis (#4433) on UTC Tue 01/08/2023, 11:34:20, therefore this release is high-priority for Gnosis users.

https://github.com/sigp/lighthouse/releases

Week #25: June 30, 2023

Livestream Recording | POAP

Guest appearance by Gravning Amundsen, Co-Founder of Firn Protocol, a zero-knowledge privacy platform.

Announcements

The morning trinity

View on Reddit →

u/Hocilef

Ethereum

u/OurNumber4

$1888

u/696_eth

0.061

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Data location,

The storage destination,

Blockchain in motion.

The Queue: u/Spacesider

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Your daily beacon chain dose.

Pending validators: Joining 93.2k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/NeedlerOP

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I’m a free market kind of guy but these are some real shitcoins

u/bman0920 built an awesome EVMavericks themed game for the buildathon

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[original comment deleted by user 😢, pls stahp et]


Gameplay preview:


From ZombieBP on Discord:

Hey everyone, if anyone is interested. my EVMavericks Origins level is now live and available to play on Unity Play!

Couple things;

Have fun, I hope you can beat my level haha. There are exactly 32 Ethereum (in-game) tokens in the game level. See if you can collect them all.

https://play.unity.com/mg/other/webgl-builds-354807

u/Liberosist is watching the piece falling into place

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We’re roughly halfway through the journey I described in A Vision of Ethereum - 2025

Running behind schedule, but at the same time, I think the pieces are falling into place. We need better integration of smart wallets across L2s and their apps, and there’s progress being made there. One area where there’s been very little progress in the last couple of years is in the application layer - but that might be OK, even with the existing applications and usecases live or in development there’s plenty to grow as UX improves to what’s described in that post.

u/benido2030 appreciates the hidden talents in this community

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You know what’s one of the best part about this community, at least for me? There is not only a lot of knowledge, but also so much talent. I don’t stalk people (really, I don’t… or do I?), but when you follow EVMs on twitter and check their bios… oh my… so many cool projects in the bios, big names etc.

So some time ago I started following this account on twitter, because despite not having an EVM PFP the name sounded familiar. Turns out I was right, it’s u/heyheeyheeey

So they started posting pics and we started DMing, because I love the art. Some posts are about NFTs from another collection, but they started experimenting with generative art themselves and imo they are very very talented. Apparently I am not the only one that loves it and soon (August 7th) heeey will launch their collection “bright” on Art Blocks. Yes, you read that right, Art Blocks.

So, save or buy some ETH cause we are going to mint some jpgs in August. And if we don’t, then I am even happier cause that means heeey’s art was so in demand that they are rich now because of a rather high mint price. In any case just being featured on Art Blocks is a great achievement, so congratz heeey!

Wanna know more and see why I am so exciting? Follow them on twitter or check their new homepage: https://heeey.art/

u/LogrisTheBard reminds us of the long term vision

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The most beautiful thing about mankind isn’t his ability to understand the world as it is, it is to imagine the world as it isn’t and shape it. The denizens of the deepest parts of The Rabbit Hole, the areas furthest from common understanding, are dreamers. They can imagine a world where you are in control of your data instead of monopolistic companies, where identity theft is practically impossible, and where your data isn’t monetized and weaponized against you. They can imagine a world where you can contribute to common efforts, at whatever cadence you want, and receive fair rather than predatory compensation by doing so. They can imagine a world where honesty is rewarded, where reputation carries more weight than money on deciding things that matter, and where the best amongst us are elevated and empowered to maximize their potential. They can imagine a world where those harming us are held accountable, where violence is only required as a response to violence, and where there is always a pathway to redemption for those willing. They can imagine a world where coordination seems easy, where the actions of humanity are in alignment with our values, and where we are free to act together to shape the world of our dreams without asking permission to do so.

I can cite specific teams, projects, and people who are imagining all these things and shaping the world in small and large ways to bring their imagination to life. There is technology behind all of these things. It is developing right here, right now, even in the bear market when sentiment is at its lowest. They are making it real as much as they are able to in a largely uncaring and cynical world where every incentive is aligned to enshrine the status quo. In the face of active hatred from the willfully ignorant, in the face of oppression, threats, and violence by the government, the best amongst us are doing these things anyway.

To those of you sticking it out right now after seeing a Tornado Cash dev get locked up without charges for over a year, after seeing the SEC work with SBF but sue Coinbase, and seeing scams proliferate and society turn against you, you are heroes too. The institutions all want us to have to ask permission. They want that so they can say no, grant control to their donors, and protect the status quo. I dislike the status quo; that’s what makes me a dreamer. So I say no thank you to them. This technology cannot be bottled and stolen by Nestle and the like. It cannot be captured by a court order or an unelected bureaucrat somewhere. In the game we are playing, every country has a chance to defect from a strategy of oppression and reap economic rewards for doing so. The impacts of what we are building today will be realized over many generations, but society grows great when people plant trees they will never live to sit in the shade of. So we are dreaming of forests… and planting trees.

u/Papazio is not impressed with a major shortfall of most centralised exchanges

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How has no CEX yet enabled a full history statement?!

Coinbase allows you to generate a report of all transactions in a nice pdf with your account details, but cannot include deposits and withdrawals.

Kraken allows you to download a full ledger of all kinds of transactions/deposits/withdrawals etc, but only as a spreadsheet without account details.

Another one I use is similar to Kraken but cannot do a full account history, only up to one year at a time.

How is it so hard for these companies to put together an account statement function that can include all of the above?!

Edit: WOW! Holy fuck the incompetence.

Speaking with Coinbase chat support, they send me a link to a document… a gain/loss report of ANOTHER PERSON’S account! Including their full name and email address. Presumably that person has my details now too. WTAF!

Edit 2: As soon as I pointed out what had happened, the initial customer service agent did not respond and passed me to someone else. The second agent tried to ignore the data breach but eventually said that as far as they could see my data was not shared. They provided some further advice to find my deposit/withdrawal history which entailed logging out of my account… that ended the secure chat (which I suspect was a ploy to get rid of me). So I began another chat with a third agent who looked into the issue and asked for the name of the user’s data I was sent, they then escalated it and I’m awaiting next comms from Coinbase. In the meantime I have contacted a law firm to discuss what’s happened, I’m not normally one to pursue mistakes by customer service agents but this is a serious data breach and it was initially handled extremely poorly.

u/etheraider shares the EVMaverick buildathon results

View on Reddit →

Buidlathon results are in!

We actually finished with an unprecedented 3-way tie between rETH Skimmer, Lidont, and EVMavericks Origins (the game)! Each project has received a little over 3 ETH each to help build out their vision!

Of course this is just the beginning for these projects, if you are looking to get involved/give input please reach out to the builders!

The entire goal of the competition was to encourage builders to take the leap and build something new and Im happy to say we accomplished that mission!

Congratulations to the winners!

u/Yeopaa explains the difference between EY’s “____fall” products

View on Reddit →

EY’s Starfall responds to privacy concerns on the public blockchain. This transition is enabled by EY’s open-source contributions, Nightfall and Starlight. Nightfall enables confidential transfers of tokens between companies, while Starlight allows enterprises to implement unique business logic on the blockchain; the source code for both is available publicly. In addition, EY announced Starfall, which ties both open-source contributions together. It aligns smart contracts with transactions in Nightfall, enabling a single privacy environment while allowing unique business rules for each relationship. Interestingly, Starfall is proprietary to EY; it’s EY’s secret sauce.

View on Reddit →

u/Dray11 shares their upcoming charity NFT project 🎨

View on Reddit →

Hi everyone, can understand if this post maybe ends up being removed but I’ve posted a couple updates here on it during the last few months about a charity motivated project I had been working on; a small collection of NFTs where all proceeds recieved from the mint and subsequent royalties will go towards charities voted on entirely by the holders.

If ok with the Mods and there’s any interest from people in this sub then will post some links for further details on the the mint and the project.

EDIT

Seems to be at least a little interest so adding some details here:

Project name is Duck x Pop

Will be Minting on Polygon via Autominter here on July 10th

You can see more details and a sneak peak of the artwork on twitter here

u/696_eth has the EVMavericks weekly

View on Reddit →

EVMavericks Weekly #24: June 19-25, 2023 | Homepage - EVMavericks Weekly

Twitter Thread

🦁Everything you need to know about the last week in EVMavericks in less than 69.6 seconds 👇

  1. Buidlathon projects were presented, judged on aaaaand… we have ended up with a 3 way tie! Each projects gets 3.06E!

  2. roar-y revamps DAO EVMavreciks Site highlighting EVM milestones and current activity

  3. mtitus6 shares this useful site for those with validators

  4. Ethfinance Weekly Doots #23 with our guest Pablo Villalba from Diva Labs

Security reminder: here’s a few guides

Additionally, if you are in EVMavericks discord, we have a security channel. You can literally mute everything else but that channel and only get notifications from there.

Week #24: June 23, 2023

Livestream Recording | No POAP

Weekly Doots →
Week #23: June 16, 2023

Livestream Recording | POAP

Guest appearance by Kevin Owocki from Green Pill and supermodular.

The morning trinity

View on Reddit →

u/0xBOBA

Ethereum

u/Yeopaa

£1304

u/nixorokish

0.065

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Cypher punks in Prague,

Defending the crypto flag,

Pride is in the bag.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Pending validators: Joining 93.5k, leaving 0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/Bob-Rossi

View on Reddit →

Job sends email about no longer having the option of being full remote.

“Ahh, time to retire. Surely all that ETH I bought 7 years ago will cover it.”

Opens Coingecko

“Ahh, time to call a therapist.”

u/hanniabu keeps building awesome things for us

View on Reddit →

PSA

https://ethfinance.org/ now redirects to the current daily thread.

For the new reddit design, you can use https://new.ethfinance.org/, but it doesn’t work on mobile because of a bug that incompetent reddit hasn’t fixed yet.

Why?

  1. It’s convenient because the daily thread is where the action is but the link is different every day (u/superphiz will always be on the right page now)
  2. If the community ends up moving to another platform due to these Reddit changes, you’ll be able to find out where we are from this URL
  3. If we eventually end up going with a protocol-based solution, this URL can serve as a directory for the various frontend options
u/the_swingman assesses Ethereum’s security-ness

View on Reddit →

While I believe most of us here already deduce that Ethereum is not a security. I’ll share some of my thoughts and thought process on the matter.. sorry in advance if this is a bit scattered and long..

Ethereum is in a constant state of evolution. Sounds obvious to us, but that concept probably isn’t so obvious to people not as well versed in the functionality of Ethereum. When I say this, I am thinking of a court room full of jurors, lawyers, a judge, etc. I am thinking about law makers, house of representatives and the senate; congress. Just listening in on recent hearings lets us know that there are a lot of people in powerful positions who are either un/ill informed or just flat out have a different agenda when it comes to cryptocurrency, let alone Ethereum. Etheruems’ constant state of evolution is important to note because while I believe Ethereum can get close to a final form, even then, there will be new frontiers and boundaries that I think Ethereum can explore and expand on to.

Each stage of evolution in Ethereum has attracted different collectives of people. In the beginning, the idea of Ethereum in its simplest form, thought to be a programable Bitcoin-like entity; a decentralized smart contract platform that extended the capabilities of blockchain technology. If you read Vitaliks whitepaper, a lot of eye opening ideas were conceptualized, and the first question on your mind if you wanted to be involved/interreact was, how do I acquire some Ethereum. In the early groups of Ethereum enthusiasts, you had builders/creators, investor/speculators, researchers and general crypto enthusiasts who saw that whitepaper as groundbreaking.

I don’t believe it was as black and white as:

    A. I am an investor. 
  
    B. I invest to make money. 
  
    C. If I invest in Ethereum, I expect to make a profit.

The intial ICO wasn’t a VC pitch, or promoted to a room full of investors with the promise of profit. It was however, a way to start funding projects on this new platform in exchange for giving people a way to interact with the network/platform by holding/using ETH as well as the potential for growth in value.

Society/Capitalism would argue that a profit expectation was present, especially if you were to compare the scenario to Bitcoin and Bitcoins historical growth in value at the time. While that may be inherent, it would be very difficult to prove that expectation as an absolute.

Eventually, when a court is deciding on how to classify ETH, and the court is reviewing the intital allocations of Ethereum and the intent behind those allocations, although probably more centralized in nature than we’d all prefer it to have been, I believe there will be enough transparancy to make strong arguements against the criteria of the howey test. Especially if the current environment of Ethereum is to be considered.

With all of the latest developments of Ethereum; Defi, NFTs, DApps, DAOs, Tokenization/Crowdfunding, Supply Chain Management, Web3, etc. Todays Ethereum attracts a new collective of people, while fulfilling the initial vision of Ethereum. I personally know people who are indirectly involved with Ethereum and didn’t purchase ETH with an expectation of direct profit, but were more interested in acquiring a loan or an NFT. Point is, there is a rather large and expanding ecosystem and community in Ethereum, one that makes the ETH token a utility in order to move about/participate within said ecosystem and community. As Ethereum continues to scale and more dApps and use cases come to surface, it will be increasingly difficult to classify Ethereum as a security.

Basic principles of that would signal a non security are: Ethereum has always prioritized decentralization and is decentralized. Ethereum has always been developed open-source and has been community driven and the ETH token was primarily designed as a utility token to interact with smart contracts and is still used that way today.

The regulators can try to apply old tests and laws to Ethereum, but I believe the outcome will be adapted tests and perhaps new laws likely favorable to Ethereum. I am as much an investor as I am someone who just uses Ethereum for utility at this point. I have open defi loans, I have NFTs, I have contributed to DAOs and use dApps. These law suits were a long time coming (it seems like the markets feel this way too) and my (our) real hope we end up with actual framework and clarity with path forward for innovation in the US and to finally be rid of regulation by enforcement that triggers these nasty FUD headlines.

@Kbrot welcomes us to Kbin

View on kbin →

Hi all and welcome to kbin and m/ethfinance, our temporary-and-maybe-someday-more home while reddit learns its lesson.

I didn’t get a chance to reply to everyone in the previous thread, but I did read. Please feel free to ask me any questions about kbin, Lemmy, the fediverse, and I’ll try to answer. I’ve spent quite a few days now exploring it. I also encourage fediverse users to chime in, whether it’s from Mastodon experience or somewhere else.

The dev (@ernest@kbin.social) is lovely, responsive, and working hard right now. Feel free to chip in with suggestions at m/kbinmeta or if you have web dev experience, maybe consider reaching out directly to help.

No doubt you’re all noticing kbin is slow. It’s good to remember that the beauty of federated (decentralized) servers is also in the initial brutality. Servers can be run by anyone (great!) but servers must be run by someone (oof). Ernest is one guy, spinning up a server for refugees of a global conglomerate. It’s partly why I tried – and will keep trying – to open a server of our own.

I’d encourage everyone to have a little patience, be extra kind and gracious, and at worst, take a little time away from the screen if it’s crawling. They’re planning a large infrastructure change next week. In the meantime, try to enjoy the brave new world here. We haven’t had a truly “new” website to explore in many years. It’s kinda exciting!

Now back to the memes, lines, and triangles.

@Chromes takes decentralization seriously and is now a solo staker!

View on kbin →

Checking in after my post about taking the plunge the other day. Spun up my validator and deposited. Took me, in total, about 10 hours (yes, really). I’m “Pending” on beaconcha.in.

I wrote down a lot of what I felt and did while trying to get it all together. I’m still kind of shell-shocked by the whole experience and I’m sure I’ll talk a lot more about it later. What I’ll say for now is that even the “for dummies” version of setting up a validator is significantly more intimidating and intense than most people think it is.

I’m proud of myself for (hopefully) successfully doing it, but even doing it on easy mode (dappnode) had a lot of issues, things that I didn’t fully understand, or things that almost had me giving up (I gave up about 3 times and then went right back to it after 5 minutes of having given up).

To be absolutely clear, that’s no one’s fault but mine. I’m absolutely tech illiterate, but, sadly, I’m actually probably more tech-y than most people. So I do think we have a long way to go before this sort of thing becomes something non-tech can just pick up and do. Things that I think most here take for granted are very scary or even indecipherable to someone like me.

That actually brings me to something that this whole reddit fiasco has me thinking about. One of the great strengths of crypto and eth in particular is the layer 0 stuff. It leads to great communities like this or Ethstaker. We have Reddits and Discords which are filled with people willing and eager to help. The problem is that it seems like it may have led to less focus on delivering a user-manual that makes sense to a new user who has no idea what they’re doing. Communities are great for fixing problems, but it seems like we rely on a nebulous social network to teach the basics. Even the best guides I found seemed to assume a lot of knowledge and I generally had 3-5 “1 stop shop” guides open at once as I did this.

The good thing with how tough it was was that, if everything works out and I start validating in a month and a half (thanks Celsius), I’ll really feel like I earned it.

@minimalgravitas calls out Ripple exec on misleading through omission

View on kbin →

An incredibly simple example of how to mislead by omission…

A Tweet by Stuart Alderoty, Chief Legal Officer at Ripple.

10/ On June 4, Hinman wrote that he didn’t see a “need to regulate ETH as a security” and would call Buterin later that week to confirm “our understanding.”

Emphasis is added by me, because that section is one of the things causing the XRP bagholders to tweet about ‘#ETHGate’.

https://twitter.com/s_alderoty/status/1668601236344692737

It is clearly written to imply a shady agreement between Hinman and Buterin. However, in context the quote from the e-mail reads:

We also have a call with Buterin later this week to confirm our understanding of how the Ethereum Foundation operates.

So what this bellend is insinuating indicates some dodgy deal, is actually just a reference to a call checking some information.

I really do hate the way spreading disinfo is seen as a perfectly acceptable tactic by assholes to get what they want. If you don’t strive for truth then you do not deserve to have people listen to you, but so many people don’t really want truth, they just want feel special for knowing about a conspiracy and to believe things that will pump their bags.

@kingleo23 is glad the Prometheum nonsense got called out in the US house hearing

View on kbin →

Glad the Prometheum nonsense got called out in the hearing today.

https://twitter.com/AlexanderGrieve/status/1668764481252478979

https://twitter.com/EugeneProko/status/1668745089164935168

Quite obviously a live action role play exercise

https://twitter.com/SGJohnsson/status/1668747275550740482

u/busterrulezzz reminds us of some of the good things Reddit has done for web 3

View on Reddit →

I get all the drama around Reddit API, but I want to point out something : so far, Reddit is by far the social network that is the most crypto-friendly. They onboarded millions of normies eith their Vault, community tokens and Digital Collectibles.

Just something to keep in mind while our community ponder its options.

u/PhiMarHal has your daily hit of hopium

View on Reddit →

I got your hopium, fam.

Tech is more solid than ever. Rollups make great strides, each in their own direction. Transactions get cheaper, design space extends.

AI is complementary with crypto. AI is the content engine. Crypto is the curation engine. An abundance, an infinity of content makes curating this content for relevance that much more important.

Innovation is happening at the app layer. Uniswap v4 was announced yesterday. Autonomous worlds is picking up as a concept.

We are right where we were in 2019. With everyone declaring crypto dead, and usecases “nobody” expected about to mature in a couple of years.

In a vacuum, I would add that however, we can’t be sure this will be reflected in the price as the last ATH went quite high. But this is where the real hopium shot comes in: great future multipliers are forged in the despair of many. When perception hits maximum pain while reality speaks of fundamental soundness still, those are the times of asymmetric opportunities.

In the end I’m just another wanker on the Internet, but I bought ETH today. I wasn’t a buyer for the past 3 months. This is financial advice.

u/Dysus1 keeps us in the US regulatory loop

View on Reddit →

For those who missed it…regarding Crypto Clarity in the US:

Hearing Entitled: The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem (https://www.youtube.com/watch?v=dr9GD8hdD_U) Opening Statements occur at -Time Stamp: 41:39.

Some observed discussion points I found of interest:

Week #22: June 9, 2023

Livestream Recording | POAP

Guest appearance by Matt Finestone, former lead of Gamestop NFT and currently head of Taiko.xyz, a decentralized and Ethereum-equivalent ZK-Rollup.

Announcements

The morning trinity

View on Reddit →

u/Hocilef

Ethereum

u/maninthecryptosuit

$1838

u/wolfparking

0.069

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Go after Binance,

Stomp down when you do your dance,

Lead to no advance.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Pending validators: Joining 96k leaving ~100

-Entry queue +900 from yesterday’s number - New entry queue ATH. -It will take just over 45 day and a half days for the entry queue to clear -In just under 24 days the amount of daily validators that can both enter or exit will be increased from 2025 to 2250.

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: MinimalGravitas

View on Reddit →

Oh dear gang, with all the drama around Binance and the price crashing we’re seeing a big spike in stakers pulling out their validators. The exit queue is up to 8 minutes!

u/nixorokish has an important PSA for stakers

View on Reddit →

EthStaker published a blog post to do a call to action for execution client diversity - Nethermind and Besu are ready for adoption in home operators but also for large scale staking operations as yorickdowne, who’s part of EthStaker, notes with his setup testing for Cryptomanufaktur.

Geth controls ~87% of the network right now a bug would be a catastrophic situation - say a bug happened where Geth produced an invalid block - most validators would follow it and we’d have to resort to one of three choices at the social layer:

  1. Penalize and slash 87% of validators
  2. Exit 87% of validators
  3. Go with an invalid chain

Any option we chose would shake people’s faith in the immutability of Ethereum. The first one would be a massive amount of capital loss. And this is just one of three types of bugs - the most unlikely type of a bug, a double-signing event caused by a bug in Geth, would cause a total slash of 87% of validators. I mean all of it, people running Geth would lose their entire stake.

Super unlikely bugs but we’re ready for it and I’m sure that Geth is ready for the people to take the pressure off of them!

https://paragraph.xyz/@ethstaker/execution-client-diversity

u/alexiskef dissects the fake Orbiter Finance airdrop

View on Reddit →

🕵🏻 Dissecting the FAKE Orbiter “Airdrop” announcement that u/Dreth warned everyone about earlier on:

🚨 “Due to major success of our”Orbiter Pilots NFT Series“, we have decided to launch our token $ORB” ☠️

👉 Grammatically wrong: Missing “the”.. As in: “due to THE major success”

👉 Logically wrong: Why would a company suddenly “decide” to launch an airdrop based on the success (?) of an NFT Series?

🚨 *“We will be giving away 5,000,000 $ORB tokens, which will be distributed to anyone who claims from June 1st - June 3rd”*☠️

👉 when announcing Airdrops, legit projects release extensive information on their token allocation. Usually multiple pages long, filled with all kinds of relevant information. NOT just a plain number..

👉 .. and they don’t distribute their token to.. “anyone who claims..”

🚨 “There is only a limited amount of token so act fast!” ☠️

👉 here they try to create a sense of urgency, to make you act before you think, before you notice all these red flags.. Also, notice the spelling mistake (token instead of tokens)

🚨 “Those who receive the tokens will be whitelisted to use our newest staking feature” ☠️

👉 here they are baiting (“whitelisted”) you again, trying to shift your attention from all the red flags by promising “new products” that can give you with extra yield/rewards..

🚨 “Any gas spent on claiming the tokens will be refunded via Orbiter Finance’s Smart Contract” ☠️

👉 in other words: “Don’t worry about high Gas!! Go one and claim NOW!! We’ll refund everything!!”. I.e. don’t wait, don’t look further into the legitimacy of this! Go ahead and hastily ignore any sense of “danger”, and sigh these txs NOW!

🚨 Claim $ORB here: https://orbiter DOT pm/ ☠️

👉 DOT PM? Using the “orbiter” brand to lure you into a fake sense of security. But dot pm? WTF is that??

🚨 PILOTS! Our distribution is now 77% claimed 🛸 ☠️

👉 the number keeps “going up”.. First 66%, then 77%, and so on.. QUICK, ACT FAST (AND DON’T STOP TO THINK) TOKENS ARE RUNNING OUT!!

u/Ethical-trade has made a proper document on the dire Lido situation

View on Reddit →

Thanks a bunch for signaling your support to prevent Lido from harming Ethereum’s decentralization yesterday. I’m glad to see that this problem is as important to you as it is to me.

I’ve gathered all the information we’ve shared so far in a google document that automod prevents me from sharing, so here’s a pdf.

Feel free to add comments wherever needed and let’s start fighting for this.

Edit: I also tweeted the doc with a new hashtag: #Lidont which has its own logo in the doc.

The document contains quotes from u/hanniabu u/etherenum u/MinimalGravitas

u/stablecoin educates us on Gnosis Chain validators

View on Reddit →

Have to give my public support for Gnosis chain after a few posters recommended I run a node on my spare staking PC.

You can spin up a validating node with just 1 $GNO token. It’s the base token for the network collateral /staking, but funnily enough you need xDAI to pay fees so make sure to also transfer in $1.0 in dai to your deposit address.

You can stake like a whale too if you wanted, for about $7500 you can run 64 nodes that’ll probably net you 10-20 block rewards per day. Yield is around 16% which is just high inflation rewards, and so far there’s nothing in block rewards because tx are too cheap and there’s no MEV boost I don’t think. Gnosis Chain also hasn’t had their withdrawal fork yet so your locking up a little bit longer than ETH right now, but there’s no entrance queue either to earning.

The reason for the recommended is it uses the same software clients as ETH (geth, nethermind, lighthouse, prysm, maybe a few others now but not all are supported just yet). It’s literally a mini-me ETH network with its consensus and execution separated, using the same software clients you just select the Gnosis chain in your startup flags. I used Somer Esat guides to do all this, and just cross referenced the official setup guide from the Gnosis website (below).

If you are curious about staking at home, or looking to enhance your own Etherum node operating skills, running a Gnosis node is like training or studying using real money. For me that always forces me to take it seriously and even enjoy the process more, in addition to leveling up my own skills. You just get a good a feel for how the clients interact with eachother, and also how well your node links up to the network and other nodes. If you really mess up, then you are only out $116 per node rather than $60k. Plus, you are helping to decentralize transactions on a low cost Etherum aligned EVM sidechain. This further broadens the reach of EVM smart contract developers and gives you something constructive to do during 🦀 szn.

https://www.gnosis.io

https://someresat.medium.com

u/T0Bii covers the Reddit API pricing drama

View on Reddit →

Ya’ll probably already heard about the reddit api pricing drama, but for those who didn’t: Reddit is getting greedy and is going to charge a ridiculous amount of money for the use of their API, thereby driving third party clients out of business.

There’s not much information about who will have to pay for what etc., but assuming that every API request will have to be paid for, this is the calculation I’m making for the u/nitter_not_twitter bot:

I’m currently checking the subreddit 6x per minute. I could reduce this to something like once every 5 minutes and I suppose it would still provide a good UX.

That’d be 12 requests per hour, 288 per day and 8640 per month.
The bot answered 170x in the past month as well so we’re at 8810 requests per month, or ~106k requests a year.
According to what we know, reddit wants to charge $12k for 50 million requests. That’s $0.00024 per request or ~$25 for the 106k/year.

25$/year for running a very small bot at 12 checks per hour instead of the current 360 checks per hour (which would be insanely costly).

I can afford that without a problem, assuming reddit will offer packages that small and at the same price.

But this still shows how insane the API pricing is.

Without 3rd party apps I’ll not be here as often as I currently am and this might be true for a lot of people here as well.

Maybe we should also think about joining the prostest: <https://reddit.com/r/Save3rdPartyApps/comments/13yh0jf/dont_let_reddit_kill_3rd_party_apps/ > Here’s a list of already participating subreddits: https://reddit.com/r/ModCoord/comments/1401qw5/incomplete_and_growing_list_of_participating/

u/KBrot sets up an awesome Reddit alternative for us!

View on Reddit →

Alright, well here ya go. Our own little reddit alternative.

Welcome to EVM Lemmy. Our home away from home when we take down reddit on the 12th.

See below, then… Play around. Make some shit. Post some shit. I’ll polish it up as we go.

Remember I’ve never admin’d a site in my life so… Anything and everything is subject to me trying to fix an issue and accidentally deleting all our data so… yeah, screenshot anything important anyone says.

SOME. CAVEATS.

Obviously, you’ll notice it’s on http only not https. Because I can’t get the damn SSL cert to work. So, NO serious info should be entered here beyond your usual junk email and a junk password. It’s PROBABLY just me with access to the data but like, idfk, it’s http, trust nothing. Please just meme around and try to break the site, and skip entering your banking information and private keys.

Then if anyone can kindly explain why the http://url works in every browser of mine EXCEPT my main Brave browser, I’d appreciate it. Edge is fine. Firefox is fine. In fact, I can access it in a Brave Private window, just not the main. Why? What setting is on blocking http? Hell, I can even do it from Brave on my phone, same wifi network and pihole DNS and everything. Confused, I am.

And it’s also not actually federated because it’s 99% me not being able to figure it out yet and 1% apparently there’s some outbound DNS issue with Lemmy instances the devs are working on. Idk.

tl;dr servers are hard. yall need to be paid more.

Cheers.


UPDATE:

View on Reddit →

Despite the best efforts of fellow redditors, I have to call it quits for now on the Lemmy instance. I’m just not smart enough. Perhaps I’ll return to it.

In the meantime, please find our ethfinance alternative at https://kbin.social/m/ethfinance. It’s all set up and ready to go, and it’s federated. Think of Kbin as the scrappy newcomer ProtonMail to Lemmy’s Gmail.

I’ll leave it at that on here, but I’m happy to help people tour the fediverse in the Daily on Kbin. We’ll waive the “on topic” rule for a few days so folks can acclimate.

u/austonst shares a recent EthResearch post about beaconchain security

View on Reddit →

New ethresear.ch post by mike neuder, francesco d’amato, aditya asgaonkar, and justin drake.

Increase the MAX_EFFECTIVE_BALANCE – a modest proposal

Also see their notes on security.

Summarizing briefly, this change would keep the 32 ETH minimum for a validator, but increase the maximum by some factor (possibly 64x to a max of 2048 ETH). Probability of selection for various duties e.g. sync committee would be weighted based on balance. Operators running multiple validators would not have them aggregated forcibly, but could opt in to have their validators merged.

The authors argue the following benefits:


As with any protocol design choice, there are some tradeoffs involved. Already a couple of good criticisms in the replies which are worth a read.

u/haurog is feeling quite positive on Ethereum

View on Reddit →

I am feeling quite positive on ETH and Ethereum:

These are uncertain times, I have no idea which branch of the US government lashes out and attacks crypto next, but I am just feeling positive about the non-reaction of the market and the future ahead for Ethereum.

u/kainzilla speculates on the SEC’s plan

View on Reddit →

This isn’t designed to be FUD, but rather to be realistic about what I expect to happen. Just to be clear, I expect this plan to fail at some stage along the way, because I think they let it run too long and it’s likely no longer stoppable:

It’s crystal clear they’re working towards an agenda to shut down crypto as a whole. Tbh I don’t give a shit if it’s because “hur dur global banking cabal” or “oh fuck the USD is going to collapse if we don’t try to shut this down” or “I’m old and fucking stupid and I hate this cryptkeeper blogchain technology”, because the reasons are irrelevant; just know that they’re working with a coordinated plan here and Ethereum is on the hit list. Be realistic about the struggles that are coming.

u/696_eth reflects on a one year old ratio reminder

View on Reddit →

A few weeks ago I received a reminder to my sale of majority of my BTC to ETH.

At that time in 2022, btc - $30k, eth - $2000, ray - 0.067.

2023 prices, btc - $26k, eth - $1800, ray - 0.067.

So was that decision good for me and my future?

Some quick reflections combined with guesses-predictions on how things might turn out.

It’s getting pretty long and my flow is a bit off so here’s a few btc related takes.

And if you made it till here, here’s my last important point.

I’m going to end this here, thanks for coming to my imperfect TED Talk.

All the best,

696.eth

Week #21: June 2, 2023

Livestream Recording | POAP

Guest appearance by Brendan Shakeshaft and Joe Van Loon, founders of Auditware. Auditware specializes in performing smart contract audits and building security tooling. Their flagship product Audit Wizard (currently in alpha) is the ultimate web3 security tool, allowing you to audit your smart contracts with ease.

The morning trinity

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u/Vinegar_Strokes__

Ethereum

u/TimbukNine

$1,889.56

u/696_eth

0.0696

Weekly Haiku: u/Jey_s_TeArS

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Trustless sequencing,

Let data compression sing,

Rollups be dancing.

Queue update: u/Spacesider

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Your daily beacon chain dose.

Pending validators: Joining 78.5k, leaving ~10

These figures are based on the entry and exit queue at the time of posting

https://validatorqueue.com/

Shitpost of the week: u/IlIIIlIlII

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Volatility so dead I don’t even have any memes to post.


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u/696_eth:

no memes?

we waiting

they don’t know

no memes to post

we feel you homie

memes?

what happened

later

u/o-l-o explains how a Trezor randomly generates a seed phrase

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With trezor, you can read through their code and understand how they generate seeds.

Someone has already done this: https://medium.com/@brandonarvanaghi/analyzing-trezor-firmware-mnemonic-seed-generation-for-bitcoin-and-ethereum-4b03fbaad24d

You’ll notice that that article calls out that the default ‘random32’ isn’t suitable for production (and the code itself wanes you of this), so you’ll need to find out where Trezor implements ‘random32’. This is my first time looking through their code and it seems that the insecure implementation is the default implementation in their firmware, but I assume they replace that somewhere. Perhaps someone more familiar can point us to the newest RNG code because THIS IS A VERY IMPORTANT POINT TO CLEAR UP.

They do have a legacy firmware that has its own ‘random32’ implementation: https://github.com/trezor/trezor-firmware/blob/92045275fb79e532a5b9a86732c1b3206ef3bba4/legacy/rng.c#L27

You’ll notice that that code uses a few “RNG_” variables to produce it’s number, so the next step is to find out what those are.

We know that Trezor uses a Cortex-m4 Arm chip, and this is C code, so we can look at the chip datashet to understand what those do, or we can cheat and look at OpenCM docs: https://libopencm3.org/docs/latest/stm32f2/html/group__rng__file.html

You’d also want to go to the datasheet for the STM32F205xx to see that it has a “true random generator” hardware module.

That all looks really good, and I’ve heard that the modern Trezor firmware also includes static ram and host device data into it’s RNG, but I’m not familiar enough with their code to hunt that down at the moment.

u/Itswhatevermannn shares the cool new project that have been building

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Hey guys, lurker here who’s been working on a project in his free time: https://betonchain.gg/

To keep it brief, I started out running a Chainlink node, deploying jobs and a consumer to update odds and game results data from an API I wrote to aggregate results and odds across various bookies. Eventually the goal became to offer the most competitive betting experience in terms of odds, privacy and transparency, while decentralizing the bookmaker by sourcing house liquidity from a community which receives house profits back. Soon after launch I aim to add support for futures and integrate player friendly tools such as contracts for auto-hedging parlays.

The platform is currently on Sepolia, if anyone is interested in testing the DApp please drop an address and I can send over some test USDC/USDT/DAI to place bets with. Hopefully there’s not too many bugs! I am considering launching polygonzkEVM but not sure yet.

Appreciate any feedback from you fine gents and ladies!

PS: If anyone has insight into raising funds, please let me know, hope to make this my full time job. Thanks again!

u/asus_wtf has the China news and it’s not a ban?!

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Beijing releases white paper for web3 innovation and development

https://www.theblock.co/post/232404/beijing-web3-white-paper

“…Dubbed the”Web3 Innovation and Development White Paper (2023)," the document states that web3 technology is an “inevitable trend for future Internet industry development,”…”

“The commission aims to construct Beijing as a global innovation hub for the digital economy.”

“ The white paper reportedly states that Beijing aims to strengthen policy support and accelerate technological breakthroughs to promote the web3 industry.”

u/superphiz thinks we are hitting a staking inflection point

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I think we’re hitting an inflection point where staking is the “cool” thing to do with Ether. Lots of folks predicted that this would happen but no one really knew when. I’m basing this on two factors:

  1. The deposit queue is growing at an accelerating rate despite long wait times.
  2. The price of Eth is beginning to inch up against the flow of other assets.

The logical interpretation of this is that the supply squeeze delivered by staking & burning is finally upon us.

Does this mean Ethereum is successful?

Nope. Not even close. We saw something similar happen with Dash in 2018 (dash spiked when their staking program reached critical mass), but Dash couldn’t keep the gains. The only way Ether will lock in this success is if we build valuable products on top of a credibly neutral and decentralized network. If you’re hearing this, but not acting on it, you’re a bad puppy 😜

u/busterrulezzz experiences the Bitcoin BRC-20 and Ordinals user experience

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I took a deep breath and tipped my toes into Ordinals and BRC-20 yesterday. UX is terrible, it took 12 hours (!) to process my bridging transaction from BTC mainnet to Stacks, and depositing into my trading wallet took about 10 minutes. It’s a very, very long time when you’re used to Ethereum. Xverse wallet is even worse than MetaMask in terms of showing human-readable information, and all swaps are done either via order books or P2P bulk sales.

The experience is not welcoming for a newcomer. I’ve been doing DeFi daily for the last 2 years, and I had to look around for hours before I was comfortable enough to do a transaction.

However, I think BRC-20s and Ordinals have a decent chance of becoming more popular in the next few months. I am not tech-savvy enough to understand the hurdles facing a better UX - until yesterday I thought an ETH NFT collection could be bridged back-and-forth to BTC… But I could definitely see how people could pile on Bitcoin DeFi projects.

Ethereum isn’t threatened by this, in my opinion. It is so far ahead in terms of development… Bitcoin looks like a 28k modem, while Ethereum is 5G. Still, I decided to allocate a small portion of my trading wallet to it. I feel kinda dirty using a PoW chain, but hey, ride the wave, don’t fight it, as they say.

u/BramBramEth is thinking about take on the next part of their web 3 journey

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Hey ! Seems like I’m going to be let go at work soonish (Which is a good thing, my job got less and less technical over the years and I miss that part a lot). I’m a cryptographer with quite good skills in programming in a range of languages, so I was considering having a bit of fun for a couple years working in the ETH ecosystem. What I’m looking for is technical challenge.

What are my options ? My thoughts so far :

Any other options you can think of ? I’m just in the process of evaluating my opions right now as the switch won’t be before a couple months.

u/nightfallsh4 reminds us of another cool use for your hardware wallets

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Just a reminder to everyone if you don’t know already.

Both Ledger and Trezor device support Fido U2F, which means you can use your ledger or trezor as a security key (2FA) to login to your online accounts.

Of course if you are not comfortable taking your hardware wallet with you everywhere, maybe consider using it for online accounts you’ll only login from your home or in a safe place. But according to your specific threat model you can use HWs as 2FA security partially or fully in your online activities.

You can use them to secure your CEX accounts, email, password manager etc. And if you loose or break your device you can always restore it with the seed phrases in another device and all your 2FA security keys will be recovered as well.

Using a security key as 2FA for your online accounts greatly increases your general security online. And almost impossible to hack into your accounts remotely.

Before you implement that be sure to go through the ledger and trezor articles about using their respective U2F features.

Trezor also supports FIDO2 standard for passwordless login but it’s not as widely adopted yet like U2F.

Edit:- here is trezor’s article on using U2F- https://trezor.io/learn/a/what-is-u2f

Here is the ledger’s article - https://www.ledger.com/fido-u2f

If you’re moving away from ledger as your hardware wallet, you can atleast use it as a 2FA security key to secure your online accounts.

u/hanniabu is building awesome tools yet again

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https://twitter.com/hanni_abu/status/1663605190543523840

I wasn’t happy with existing solutions to monitor validator entry/exit queues so I built this https://validatorqueue.com.

This dashboard shows the entry/exit queue, wait times, total active validators, and historical values.

Thank you beaconcha_in for providing the data ❤️

u/Bob-Rossi discusses the addition of rETH to HOP Protocol

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Not sure if posted yesterday, but even if it was it’s worth repeating. HOP bridge now supports rETH, with joint liquidity incentivization by HOP & RocketPool DAOs.

https://twitter.com/HopProtocol/status/1663669978405691392

This is the first liquid staking token bridge (of any protocol) and I’m hopeful HOP can add more. Anyone who is in a LST community that has shown interest in getting a bridge set up let me / HOP know. When this was being voted on it seemed there was interest in adding more.

u/Ethical-trade discusses the dire Lido situation

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The Lido situation:

When Prysm contributed to centralization by having too high of a share in the consensus client market, the community launched an initiative aiming at reducing that.
This worked fantastically and Prysm went from more than 66% to now being second behind Lighthouse.

No real initiative has been launched in the case of Lido yet. There is no real equivalent to clientdiversity.org today, with explanations, educational material, and guides to switch to less centralized options. There is no real pressure by the community.

Are we really passively waiting for the 33% validator share limit to be crossed in order to start doing anything?? Will one more percent really make a difference? As a reminder, Vitalik suggested that no entity should control more than 15% of all validators. Lido already controls twice the stake Vitalik considers to be too much.

On May 22 2022, u/superphiz wrote that community action should start at a 22% share. With its 32%, Lido has now 50% more than that and yet no action has been seen.

To our Ethfinance friend u/hanniabu who created clientdiversity.org (big thanks for that): is there a similar website planned for staking providers? rated.network just doesn’t do the education job. Please let me and us know if there is anything we can do to help.

Feel free to share any idea about what we could do to.

This problem won’t just solve itself, there needs to be a community initiative.

Week #20: May 26, 2023

Livestream Recording | POAP

Guest appearance by Rhett Shipp from Gravita Protocol, a decentralized borrowing protocol.

The morning trinity

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u/Vinegar_Strokes__

Ethereum

u/NeedlerOP

$1805

u/696_eth

0.068

Weekly Haiku: u/Jey_s_TeArS

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Tax crypto traders,

The debt ceiling deal breakers,

Rug pulling raiders.

Queue update: u/Spacesider

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Your daily beacon chain dose.

Pending validators: Joining 72.9k, leaving 0

These figures are based on the entry and exit queue at the time of posting

Shitpost of the week: u/somedaysitsdark

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It wouldn’t take much volume from Fidelity to cancel out the… checks notes… negative ETH issuance

Shitpost of the week, part deux

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u/monkeyhold99:

Ethereum is the only digital asset in the world that is all of the below:

Traditional finance people and most normies still have not figured this out. I know we’ve come a long way since 2015, but I really believe we are super early adopters here. Will be interesting to look back on these threads in 5, 10, 15 years time.


View on Reddit →

u/ajmonkfish:

Let’s rearrange that and get a catchy acronym.

Secure Trustless Useful Permissionless Productive Immutable Decentralized

ETH is STUPPID!

Great work everyone, take the rest of the day off.

u/cryptOwOcurrency explains why you shouldn’t burn your scam NFTs

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Imagine an Ethereum spam token as a small piece of land in the middle of the desert that has a big sign planted in it saying “/u/barthib owns this”. You have no idea who put the sign there, and the land is obviously worthless, so why would you bother driving out into the desert to try to claim it or to take down the sign?

TL;DR Hide it. Don’t interact with it or try to “get rid of it”.

Conceptually speaking, Ethereum tokens (including NFTs) don’t exist “in” your address like ETH does. They exist “in” their own token contract that maintains its own separate ledger. This contract’s code is determined entirely by the creator of the NFT.

When your wallet software checks your address for tokens, what it’s basically doing (through a couple levels of indirection) is pinging the smart contract that the token creator published, asking it “does this address own any of your token? If so, which one(s) does it own?” The token’s creator can, if they wish, tell the contract to respond to this inquiry with literally anything. They could tell your wallet that you own an amount of their token equal to the current block number, or randomize every day the tokens the contract says you own, if they wanted to.

When you interact with a token, your wallet is reaching out to the token contract and running the code defined there by the creator of the token, which can also be anything they want. So a situation like this could occur:

Edit: A classic scam is where they code the contract to revert/fail your transaction with a custom error message that includes the address of their scam website in it, telling you to go there for “support” on their token. You see your failed transaction with their custom error message when you go on Etherscan to check whether your transaction went through. So you visit their website and get on their support live chat, and they feed you some bullshit about you needing to install a wallet upgrade from a dodgy .exe file, or that your wallet is corrupted and you need to send them your seed phrase to fix it. Then they clean you out.

u/JayPeaEm shares an update from Japan

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Grüezi EthFinance 😁

Been away in Japan 🇯🇵 the last 4.5-weeks or so for vacation. Didn’t use the phone much, went camping, did jiu jitsu, was a cornerman for an MMA fighter, went to a baseball game, sumo; just reconnecting and seeing how the ecosystem is.

I’m always here in the shadows doing my best to secure the Blockchain, provide liquidity, and help along newbies when I can.

Love you all, keep being ambassadors, and keep helping any- and everyone who asks for it!

Pröschtli 🍻

u/FrenktheTank shares a PSA for Google Authenticator users

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Heads up for everyone using Google Authenticator 2FA app. While this might be old needs, the update was pushed around the end of April, this was new to me, so maybe some fellow EthFinanciers might find this useful.

This morning I opened my Google Authenticator app to find out that is needed an update. The update included a back up of the authenticator codes into my google account.
When I explored this a bit I found this:

‘With this update we’re rolling out a solution to this problem, making one time codes more durable by storing them safely in users’ Google Account. This change means users are better protected from lockout and that services can rely on users retaining access, increasing both convenience and security.’

Really, how can they think this is save. The whole point is to have a second step besides your standard login option like Gmail. What’s the point of storing your 2FA codes in a google account that when it gets compromised, your 2FA codes are compromised as well.

There is still the option to keep using the authenticator without the backup feature.

Remember, when it comes to online security, the ultimate responsibility lies with none other than ourselves. Stay vigilant, take proactive measures, and empower yourself to safeguard your digital presence.

u/pbrody wrote a book about Ethereum!

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Hi everyone…I just got the final cover for my book back. I’ve written a little book about Ethereum!! Specifically about WHY Ethereum is the future of business. It’s called (no surprise) “Ethereum for Business”. If you would like to pre-order it, the paper copy should be in your hands in about 2 weeks as we’re nicely ahead of the official schedule and orders for eBooks on Amazon or Apple will follow in another 2-3 weeks. I’ll do a top-level post on why I wrote the book and what it’s about on the official release day.

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u/juxtanotherposition has an EVMavericks oDAO update

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EVMavericks Rocket Pool oDAO update

There was a meeting planned for Monday but too many people could not make it last minute. A few of us had an unstructured discussion mostly about the costs of setting up and running an oDAO node and necessary archive node. u/haurog calculated some of the costs using on-chain activity and is willing to share a doc once complete and here’s another great resource (oDAO tab).
We’d like to maximize participation for those interested in working on the project, so please enter your availability for the next meeting here:

https://www.when2meet.com/?20153310-SNPGH

Enter a name (pw optional) and click Sign In, then select your available meeting times so we can schedule it.
If Discord meetings do not work for everyone we may consider using Zoom or other tool. Whether active on Discord or Reddit-only user, all are welcome and encouraged to join the effort.

u/LogrisTheBard thinks now is a good time to familiarise yourself with Curve

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With crvUSD finally launching in earnest now would be a good time to at least familiarize yourself with the Curve ecosystem if you haven’t. It’s still the second highest volume DEX and might have just launched a way to double its income.

There’s a lot to unpack here:

I do suggest you spend a few hours and familiarize with this system if you haven’t because it is the baseline so many other projects derive their tokenomics from.

u/Bob-Rossi has a delegate update

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Not sure if it’s been posted yet, but the delegate week started yesterday. If you own any DAO tokens, it’s a great time reconsider who you are delegating too. Or even better, if you are on the fence about being a delegate might be a good time to jump into it!

Some more info here - https://delegationweek.com/ & if you are looking for a list of r/ethfinance delegates check out the daily doots page here - https://dailydoots.com/#delegates

If you own any HOP, now would be a good time to consider delegating - whether that is to someone new or just re-affirming with the person you already delegate too. They are using some of the grant funds to encourage people to re-delegate (or delegate if they aren’t at all) See - https://forum.hop.exchange/t/grant-proposal-delegation-week/878/11. Not a huge amount, and I’m not sure if those are the final numbers, but at a minimum should cover some gas costs + some beer money.

u/Itur_ad_Astra reflects on a famous crypto saying

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Crypto wasn’t invented to make you rich…

I’ve been in Ethfinance for a few years, and every year, I understand this a little bit more. I joined before the big bull, made some profits, but you don’t make life-chaging amounts of money by investing spare change as a broke college student. So I obviously didn’t sell during the crazy highs. This year is the year in which I’ll be calling myself an “Etherean” for more than I was calling myself a “Bitcoiner”.

…It was invented to set you free.

I’ve got to say, I “converted” to Eth at a good time. Not a good time financially, but at a time where I was disillusioned with Bitcoin. I had heard about Ethereum much earlier, but ignored it, as it was obvious to me that Bitcoiners would not leave the biggest and best coin with zero improvements over multiple years, riding on the first-mover advantage alone. What a rabbit hole the Ethereum ecosystem was! What an insane potential of improving the way we interact with wealth and capital and as a result the human condition!

…But it will make you rich anyway.

If this part ever comes true, I’m ready, but I hope it’s not overnight. I don’t know if my mental health can take another insane bull, but I suspect that the next one might be even wilder. At least inflation and time have changed my definition of “life-changing money”. In any case… DCA on!

u/2Nice4AllThis is trying to explain Ethereum for dummies

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I’m working on a few crypto beginner’s tutorials, with the main goal being to simplify information and for a better learning experience. Ideally, a lot of users don’t actually need long explanations of how blockchain and dapps work and just want to know how to use them.

Interestingly I wanted to compare simple transacting as copying and pasting an address, and I thought to compare this to being as easy as copying and pasting an IBAN number for digital banking transactions (like in many EU countries). But then it occurred to me that in the US, peer to peer banking transactions are still impossible (which is pathetic), so this reason alone makes explaining this way harder than it should be.

Just a funny observation. What could be a better metaphor for explaining transactions in a “crypto for dummies” kind of way? I was considering using email addresses as a metaphor, but I don’t think it’s the best way.

Also, is lack of p2p banking a problem that fednow is trying to solve? It should be a crime how far behind the US is due to lacking simple digital transactions as a standard feature for all bank accounts. Anyway, people generally understand PayPal and Venmo, but trying to explain crypto transactions automatically sounds way more technical if you’re not already familiar with similar concepts.

u/jtnichol is officially GreenPilled

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I’ve taken some work with Supermodular.xyz and Greenpilled via Kevin Owocki!

My role currently will be creating video content for a variety of platforms and help spread the work to Regenerative crypto economics and human coordination. Here’s couple channels to follow when you get a moment.

Thanks /u/owocki for the amazing opportunity. Onward!

YouTube: https://youtu.be/UShoIJmSNok

Twitter: https://twitter.com/supermodularxyz

There is so much ethos aligned with Ethfinance and I couldn’t be happier to have the chance to help contribute to the vision of this incredible community.

I’ve been diving in on the Greenpilled podcast and will be making so much shorts content with great quotes from great minds. Mind blast incoming!

Cheers and Big Hugs from GreenPilled City

Week #19: May 19, 2023

Livestream Recording | POAP

Guest appearance by DCinvestor, an early pioneer in the Ethereum community on Reddit and was a huge part of Ethtrader and Ethfinance. You can find him on Twitter, discussing Ethereum, NFTs, AI & more. https://twitter.com/iamDCinvestor

The morning trinity

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u/Vinegar_Strokes__

Ethereum

u/696_eth

$1805

u/nixorokish

0.067

Weekly Haiku: u/Jey_s_TeArS

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The Ether city,

Its client diversity,

Mutuality.

Shitpost of the week: u/Set1Less

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Doots for yesterday:

u/Spacesider gives an update on the queue

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So around this time last year I posted a daily update about the beacon chain queue.

So here we go again for round 2!

Pending validators: Joining 50.3k, leaving <100


Some extra stats for when I reference this post at a later time

Active validators - 572,820

Staked ether - 18,330,053

u/Maleficent_Plankton does a deep-dive on ERC-20 vs BRC-20 tokens

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##What is the difference between a BRC-20 token and an ERC-20 token?

Expanded from my comment in /r/ethereum

####TL;DR:

BRC-20 is completely different than ERC-20. It has a similar name, which is very misleading because it works nothing like it.

Both are meant to be fungible.


##What is an ERC-20 token?

An ERC-20 token requires a complete smart contract with a full set of code that describes how the token operates.

All ERC-20 tokens must have these function names and parameters.

Only their names and parameters must match. A function’s code does NOT have to match the description of its name

I could make a valid (but scammy) ERC-20 token where the “transfer()” function actually mints tokens, and where the “approve()” function instead burns a large amount of your transferred Ether. And that would be technically valid as long as the code specifies it.

##What is a BRC-20 token?

First off … documentation on the BRC-20 standard absolutely sucks: https://domo-2.gitbook.io/brc-20-experiment/

I thought it was a joke, but that’s the full token standard documentation.

Some more info:

BRC-20 is just a short JSON object (a simple data structure) and does not contain any functions. It’s based on ordinal theory and relies on the ordinal nodes to operate on it and provide it with standard functions.

It only works with ordinal-compatible taproot addresses.

Here is the standard format of a BRC-20 token:

This is what the entire ORDI token deployment looks like:

{ 
  "p": "brc-20",
  "op": "deploy",
  "tick": "ordi",
  "max": "21000000",
  "lim": "1000"
}

Here is the format of a Transfer function:

To transfer, it takes 2 steps:

  1. Inscribe the transfer function to yourself
  2. Send the inscription from your wallet to the other address

Swaps require an off-chain 3rd-party to complete, so they’re not safe at the moment. It remains to be seen if you can build trustless DeFi around BRC-20 tokens.

Some other interesting facts about BRC-20 tokens:

u/cryptOwOcurrency breaks the news on finality issues and u/OkDragonfruit1929 adds details

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u/cryptOwOcurrency:

Epoch 200,553 only had 40% voting participation!

I can’t wait to read the post-mortem for this one. What could it possibly have been?


View on Reddit →

u/OkDragonfruit1929:

It wasn’t catastrophic, but it easily could have been a serious, but recoverable, issue if it had persisted. Epoch 200,553 only had 40% voting participation, which means only 40% of validators selected at random for block creation were actively confirming new blocks. Normally, the participation rate should be much higher, so this could indicate a problem with the network.

Start of the problem: https://beaconcha.in/epoch/200551

Peak of the problem: https://beaconcha.in/epoch/200553

Recovery started: https://beaconcha.in/epoch/200554

Normalization achieved: https://beaconcha.in/epoch/200556

We need a thorough post-mortem before we can be sure everything is okay though, because a rogue event like this happening for no explainable reason would not be very confidence inducing.

u/superphiz updates on the loss of finality the other day, u/OkDragonfruit1929 gives an ELI5, and phiz follows up with more analysis

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u/superphiz:

A tiny update on the loss of finality yesterday: The culprit still isn’t clear.

Some people have suggested Prysm caused the issue because they were hit hard by lost attestations and high loads, but this is very likely a side-effect of the turbulence rather than a cause. Terence described some optimizations they were making as a result of the turbulence, but that’s not an admission of fault.

I initially threw shade on MEV-boost because of my distrust for that stack, but there’s no evidence suggesting they are involved in any way.

The investigation is ongoing and the outcomes will be published in a detailed postmortem.

Terence just posted another update, but keep in mind, that this isn’t a finding of fault, they’re just exploring the incident.

Most clients (except Lighthouse) were hit hard by this, but Prysm stands out because they have a high representation of validators.


View on Reddit →

u/OkDragonfruit1929:

Terence just posted another update

, but keep in mind, that this isn’t a finding of fault, they’re just exploring the incident.

Here’s my best attempt at an ELI5:

CL clients were getting a lot of attestations (which are like votes or confirmations from other nodes) about older transactions that didn’t include the latest updates. This is like getting a lot of mail about old news that doesn’t include recent important events.

Because the nodes that sent these attestations didn’t have all the information for the recent transactions, CL clients had to spend a lot of time and resources to catch up. This is similar to how you’d spend a lot of time and effort researching recent events if you only had old newspapers. This caused the CL clients to work too hard and run out of resources, leading to issues like the system slowing down or even crashing.

During this time, a small problem in the Prysm system (which likely exists in other clients as well) was found that made it use the wrong information when trying to organize transactions. It’s like sorting mail into the wrong categories because you’re using an outdated list.

The Prysm team is working on improvements to prevent these issues from happening again. They’re improving the system’s memory management, and they’re going to implement similar logic which right now only exists in Lighthouse CL clients where they filter out unviable attestations (like disregarding old news that’s no longer relevant). The Prysm dev team plans to release these improvements next week.

So, in summary, the Prysm nodes were overwhelmed with outdated information, which led to system issues and revealed a minor bug. The Prysm dev team is now working on fixes and improvements. I am hopeful other CL clients follow suit and implement similar fixes.


View on Reddit →

u/superphiz:

Some analysis threads are starting to come in from the loss of finality event on 5/11/2023, I’ll try to link them here as I become aware of them. (Feel free to share as well)

u/wolfparking has a synopsis on the US House of Reps crypto meeting

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##Summary/Highlight of US House of Reps session: Future of Digital Assets.

Pleasantly surprised by most of what was discussed. Almost all the guest speakers had excellent ideas and explanations in the discussion. However, each person was allocated only 5 min at a time, so it was somewhat limiting. Please excuse me if some of this is a little raw. It is a 3 hr meeting and I don’t have the time atm to format it correctly due to my excessive fiat mining op (work).

Intros of Committee and Guest Speakers:

Mr Johnson: Must be a bipartisan effort for a promising tech/market. Conflict between securities and commodities laws. Most of the G20 countries are ahead of us. We want to be the leader in this tech/industry.

Ms Caraveo: Digital asset activity grows, but so does non-compliance. Any legislation requires increased funding of CFTC.

Mr Hill: Can this industry thrive here in the US? Many Democrats calling for common sense legislation for months (not just a partisan issue). Can’t trust offshore exchanges (FTX), so we need to work on laws here for US exchanges. 

Mr McHenry: We want a collab of CFTC and SEC to make laws and close regulatory gaps to protect consumers.

Guest speakers

Durgee: I’m the only non-attorney here. Already there are conflicting laws against other existing laws for crypto from the SEC and CFTC. This is a developing tech innovation that happens to be a digital currency as well. Adoption at this stage is not a tech problem, it’s a human conditioning issue. A 13 year old in their lifetime has grown up with BTC and only known a world with crypto in their life.

Mr Santori: Kraken is well established in the US and the world. Europe has more effective rules from tested principles unlike the US. Gaps in US have created litigation that doesn’t protect consumers. Mandates needed to protect us: https://www.youtube.com/live/gwJ1QAwP7UE?t=43m21s

Mr Massad: Confusion about commodity/security classification of crypto worsens the gap problem. How can we apply Howey test without this info? We need to pass a compliance law directing CFTC and SEC (or SRO; self regulating agency) to create laws and enforce them, without rewriting commodities and securities laws. Regardless of your stance on crypto we need this framework to protect consumers.

Mr Blaugrand: If investors could have traded digital assets on an exchange that was regulated like the NY Stock exchange, FTX situation wouldn’t have happened. We can use the established rules we already have and apply it to crypto with these 4 rules: https://www.youtube.com/live/gwJ1QAwP7UE?t=58m34s

Mr Steil (WI): We still have no path forward for regulation, even after Gensler’s meeting with Congress. Congress is ready to do the job. How do we not miss out vs overseas? W/Shoenberger: Switzerland made it very clear to define security/commodities. It gave them legal security and clarity that allowed them to proceed successfully. This framework that they provided certainly provided the legal certainty to be headquartered there and to have legal clarity around the classification instantly. W/Durgee: The rest of the world has more stability and growth in every avenue of crypto. 3x as much investments vs the US in some markets.

Mr Lucas: US is great because we embrace innovatio. w/Santori: G20 markets are ahead of us and are sophisticated. Kraken is expanding there, but we can’t deploy the same resources here in the US due to these regulatory gaps. Lucas: what SEC rules need altering for exchanges to succeed? W/Blaugrand: SEC needs an onramp with regulation so exchanges can grow in the US. They don’t because of regulatory vagueness. W/Satori: Flexibility of crypto is a perk. Broker/dealer construct can interact directly with consumers. We could limit exchanges and even close down exchanges after hours.

The negative:

Lynch (Mass): Not regulatory ambiguity; it’s mass non compliance with existing laws. Don’t argue security vs commodities, we should instead focus on intermediaries (exchanges, lenders, and wallet users). SEC is clear, consistent, efficient, and prevails in every 140 cases. crypto industry has failed. No separate regulatory regime necessary for crypto. claimed that creating new legislation for digital assets seems “redundant and unnecessary” given that the financial system’s current securities laws have “sustained massive innovation in our financial system for decades.”

Mr Casten: What return would I had if I invested in 12 cryptos during a time vs S&P (60% profit)? Loss 46% of investment, how is this a supposed way to close wealth inequality gap? W/Durgee: accredited vs credited access is important. Mr Casten: I’m happy to debate truth not lies. Everything stated here beginning to sound like SBF and FTX, what’s the distinction? Sounds like you want to regulate crypto with the least funded organization.

Mr Sherman: Buttcoin mod? An ignorant person’s lack of ability to learn anything new. Fossil garbage opinion. Uses term “crypto bro”. questioned whether digital assets should even have a future in the United States. He referred to cryptocurrencies as a “hidden money system that diverts capital investment from useful industries, and whose announced purpose is to defeat sanctions and tax laws. Crypto bros make money literally by making money, and they’ve made over a trillion dollars. They’ll accuse the U.S. government of making money out of thin air. Maybe we do, but we’re the U.S. government.”

Threaten Web3 Anonymity:

Mr Davidson (Chairman Housing subcommittee): Gensler’s hotel California’s regulation provides no path to exit/leave. Who should have the power of exit from intermediaries (power to have self custody)? w/Santori: Who is best placed to collect KYC info? Kraken is well paced to do that and doesn’t require KYC for every transaction, but we could do that if required.

Dr Foster (IL): Estimates of 95% trades are fake or wash trades in derivatives. How can we have a regulated futures market with this fraud and manipulation? What alternative to KYC at all levels is there to avoid fraud? W/Satori: Kraken provides this as a portal. Foster: we can’t stop BTC on the dark web with that. At a wallet level we must have mandatory monitoring with licensing like automobiles. Trusted digital identity from the government. W/Kulkin: CFTC had auth it could conduct surveillance under the rules and jurisdiction of the exchange thereby acting as an SRO in addition to the CFTC/NFA.

Conclusion

McHenry: Even if there is nothing of value in crypto, you would still need enforceable rights and protections already found in regulations and laws in the US. Must come together in bipartisan manner to protect investors.

5 days for additional legislation questions and responses granted from the panel. Plans for another hearing this month made.

Last month, McHenry said he expects that the President will have signed some piece of crypto legislation into law within the next 12 months.

u/T0Bii starts a discussion about different client pairs and the finality issues

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Anyone else here whose validators had no problems during the finality issues?

What clients are you running?

What are your hardware specs?

I missed an average of 1 attestation per validator that day and my inclusion distance was around 0-1 as well. I’m running Nethermind/Nimbus.

But I saw a big increase in CPU and bandwidth use, between 2 and 3x of the usual average, spikes even higher.

That’s not a problem for my staking machine, but if others had similar spikes, I can totally see why many had issues.

u/Ethical-trade comments on the communication between EVMavericks and EthFinance and u/juxtanotherposition shares some notes from EVMavericks oDAO meeting

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u/Ethical-trade:

Respectful criticism:

I’m a bit disappointed to see that despite the idea of the the ManeNet DAO joining Rocket Pool’s oDAO having emerged from r/ethfinance and having received great support from r/ethfinance, all of the conversation has now moved over to Discord.

I realize that this is a very specific topic and most of the conversation shouldn’t happen in r/ethfinance. But it would still be great to discuss ideas in this sub too when needed, and keep the entire community informed of the latest news.

For example, did you know that there’s a proposal being drafted that has been in the making for a week? Or that a dedicated meeting happened on Friday?

Like many others I don’t like Discord, I find it messy and a pain to follow so I don’t use it. Maybe I’m just too old for the “chat” format.

Would it be possible for one of you Discord guys to keep us informed in here from time to time? I’m sure many here would love to be kept in the loop and even contribute.

r/ethfinance gave birth to the ManeNet DAO after all, and all EVMavericks were Ethfinancers before becoming lions.


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u/juxtanotherposition:

In the spirit of sharing more from EVM Discord to r/ethfinance and about the example that brought it up, I shared my notes from the 1st Discord Call about the oDAO on Discord, but haven’t shared them here yet:

I was taking notes for myself and I’ve put that into Pastebin (unlisted) (https://pastebin.com/nrmwEyGg). I’m sure there are lots of errors, incomplete thoughts, and typos.

Also, I tend to ignore Discord except for something I’m very interested in (like the oDAO). So I sympathize with the comment poster. As an EVM holder, I’m loyal to the dailies, but not the Discord. So I miss some EVM things when they don’t make it back here. h/t u/Ethical-trade

u/Spacesider shares how his node dealt with the beacon chain finality issues

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So while I was gone and there was all that drama with the beacon chain, my Teku node got caught up in it and fatally crashed and was completely offline.

However…. I run a second Ethereum “stack” with Lighthouse as the consensus client, which the validator process switched over to and was able to carry on with no downtime like nothing even happened.

I was able to recover the Teku node in my own time, and once it was back in sync the validator process automatically switched back over to it as the primary endpoint.

Client diversity is awesome!

u/maninthecryptosuit explains the big Ledger drama

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Just found this confirmation:

Ledger co-founder Nicolas Bacca confirms the seed phrase leaves the device (may only be applicable to Nano X.)

The device sends encrypted shards of your seed to different companies if you decide to use the service. You can of course still choose to backup it yourself.

But 2 days ago the same co-founder said:

Your keys are always stored on your device and never leave it

That’s what Ledger has been claiming for years as well.

If we assume the chap wasn’t lying 2 days ago, that means the new firmware ( one screenshot shows 2.2.1 for Nano X ) that just rolled out activates the backdoor “ability” to extract the seed.

More info: Wired article says:

Ledger is preparing to launch a new service called Ledger Recover that splits a wallet recovery phrase—basically, a human-readable form of the private key—into three encrypted shards and distributes them to three custodians: Ledger, crypto custody firm Coincover, and code escrow company EscrowTech.  If somebody loses their recovery phrase, two of the three shards can be combined—pending an ID check—to regain access to the locked funds. Essentially, Ledger Recover is an additional safety net; for the price of $9.99 a month, it takes the jeopardy out of crypto’s version of stuffing dollars under the mattress. It’ll be available in the UK, EU, US, and Canada and come to other territories later in the year.

Ledger CEO Tweeted it out as well.

Why this is an issue - even if Ledger now cancels their new seed cloud backup service (because backlash), and says they will never make a firmware update use this hitherto unannounced “ability”, the mere presence of this backdoor means that bad actors/governments may be interested in it. I guess this is what we get for trusting a company that kept its software closed-source.

My next steps:

u/FriedChickenTrailer compares the best, most secure Ledger alternatives

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With ledger (potentially) going full retard again, I’m updating myself on what hardware wallets are available in the market right now. Looking forward to if anyone has other suggestions, additions or corrections to my high-level assessments below.

I’ve been using this list for discovery (trying to narrow down the list of 387 wallets): https://walletscrutiny.com/?verdict=reproducible&platform=hardware

There is an insane amount of options in the market, but very few can fit these requirements;

I’ve discarded a bunch of products (e.g. ngrave) that have little to no information about their device or the software that runs on it.

What I’ve found that (superficially) gets closest to the requirements (in no particular order);

trezor

keystone

cypherock

Bitbox02

keepkey

Grid+ Lattice1 (closed source)

u/Bob-Rossi discusses DAO delegation and reminds us of our duties!

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To those who own governance tokens / participate in governance, you should check out Tally’s governance-week. They are coordinating with a bunch of DAOs to encourage people to delegate or periodically revisit your delegated tokens. A great place for ethfinancers to start is looking at https://dailydoots.com/#delegates to find out who on this forum is a delegate.

The HOP bridge protocol is one of the partners and will be providing some funds from the grant pool to support Tally on this project. The exact details on how they will incentivize is not finalized yet - initial discussions where subsiding gas fees, but looks like it might be shifting to a distribution to those who participate (the forum discussion is here). Either way, I’m happy to see HOP providing support!

That all said, whatever governance token you own please consider usings this week as a chance to re-visit your delegated tokens. It’s an important step for the health of a DAO, as set it and forget delegating can stagnate a DAO’s leadership and create a barrier to entry for new delegates to join in. And if you are looking to become a delegate this may be a great opportunity to jump in!

Week #18: May 5, 2023

Livestream Recording | POAP

Announcements

Guest appearance by Daniel, founder of Swell. Swell is a non-custodial liquid staking protocol

The morning trinity

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u/alexiskef

✨E✨t✨h✨e✨r✨e✨u✨m✨

u/wolfparking

1900

u/696_eth

0.064

Weekly Haiku: u/Jey_s_TeArS

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Another one comes,

Another bank bites the dust,

More ethers combust.

Today in Ethereum: u/ZeroTricks

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On this day…

In 2022:

In 2021:

In 2020:

In 2019:

In 2018:

In 2017:

In 2016:


compiled with love

Shitpost of the week: 18boro

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Of the last 500 verified contracts on ethereum, 86 contains the word pepe. Probably a good sell signal :).

https://etherscan.io/contractsVerified

u/nixorokish shares the amazing new EthStaker websit

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If you’ve ever visited EthStaker’s website before, you’ll have seen that it was… largely unnavigable. Well - we wanted to build a new, open source one, so we put out a call on r/ethstaker to see if we could find someone from the community, familiar with staking, to help us do it. u/hanniabu is awesome and did it!

So now EthStaker has a new open source website!! Feedback would be most appreciated, especially from ethfinanciers. What would help you find the info you want about staking? I didn’t love giving people discord and subreddit links when they asked for resources, so I’m pretty stoked to be able to give them a website where everything is aggregated.

I’m also gonna post a series of ‘beginner guide to staking’ blog posts over the next couple weeks (at https://ethstaker.cc/blog), would REALLY love feedback on that from someone who sorta knows what staking is but wants to know more. Mostly for readability

u/696_eth discusses a new entrant in the decentralised liquid staking game

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I looked into DIVA and wrote a twitter thread about them yesterday.

Here’s a quick summary for Ethfinance:

The key points is that I’ve learned is that combines liquid staking with DVT. Since it uses a smart contract to pool funds it can be as low as 1E. Honestly, I’m waiting for a bit more info after their testnet releases to see how it pricesly protects against penalties and bad actors and why 1E would be safe. Also, not enough info on Node Operators and right now you would not be able to run one on the testnet.

Side note. SWISE vaults might be in a similar vein I guess.

Diva’s site

An extra useful article

Please correct me if I misunderstood something or if you wanna educate me more, this was a new concept for me so it was a bit hard wrapping my head around it when figuring out how diva is planning to make it work not just in a theoretical way.

u/Tricky_Troll makes an analogy about crypto legislation

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It’s the 1920s, you’re starting to see these fancy new self-propelled horseless carriages or “cars” pop up everywhere. They look really cool but they’re also quite dangerous. This is what the kerfuffle is about in the congress at the moment. Everyone knows that we need to protect people from the maniacs on the road. But astute observers also realise that we also need to protect the innovation and economic advantage these new-fangled machines provide.

Lawmakers are split on what to do. Representative Emmer thinks we need new laws. “Rules of the road” for all to comply with. Rules which all road users must follow specifically designed to create order out of the chaos on the road while still allowing for fast, efficient travel. But senator Warren disagrees. She thinks these new machines should be treated like horses under the ancient 1839 “Horse and Carriage act”. She doesn’t care that horses are slow, living creatures which need to eat, sleep and poop while cars are fast, furious and can run all day. She insists that these roads were built for horses and that makes anything on those roads a horse, dammit!

Don’t be like senator Warren.

Edit: If anyone with some clout on Twitter wants to screenshot this and run with it, go for it. Or if you reckon you can take the idea and shorten it down to the Twitter character limit, that would be impressive so go for it.

u/keystrokesinyourhead shares a RocketPool criticism while u/Datacruncha explains RocketPool’s oDAO

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u/keystrokesinyourhead:

Chris Blec posted on twitter and called out rocketpool. However… hes actually right?

https://twitter.com/ChrisBlec/status/1652498398459699202

I looked into oDAO and it is exactly what he describes it as.

Everything more and more just feels like decentralization theater…

The fact that it is invite only is despicable and counter to any ethos regarding decentralization.


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u/Datacruncha:

Ethereum’s consensus layer and execution layer currently don’t talk to each other so you need oracles for something like rocket pool. The odao does all the oracle work for rocket pool and upgrades the smart contracts. They can technically collude and cause massive damage so the best way to prevent this is to overpay and only include trusted people. Yes, the work is fairly easy and not worth half a million a year and everyone wants a spot. Thankfully, a lot of the money goes to fund client teams which helps ethereum run and keeps it decentralized. 4 spots are allocated to the rocket pool team to help fund development. Sassal donates all his earnings.

Eventually, there will be less of a need for the odao with upgrades to Ethereum like eip 4788. If anyone has any technical or economic suggestions about the odao they can post in the rocket pool forum or the research section on discord. Please note, it takes very little effort to criticize and substantial amounts of time and coordinated effort to come up with working solutions.

u/etheraider kicks off the EVMavericks buildathon!

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Hey everyone! 🦁 buidlathon is officially kicking off and the competition will run for a full 7 weeks starting today! 🎉 If you are interested in participating. head on over to the EVMavericks discord and hop into the 🦁│buidlathon channel and ask to be assigned the Buidlathon role! 🏃‍♂️ (No EVM Required)

Projects will be judged on their overall utility/ingenuity/technicals and the potential benefit they bring to web3!

General criteria for projects is as follows:

  1. Has to use some aspect of web3
  2. Need to have a product or service that is useable for alpha test release
  3. Need to provide a statement on how your project benefits public goods/what does your project provide to the community
  4. Valid project must be anything technical/non-technical that further advances ethereum education/utility/infrastructure/services
  5. Projects >1 month in progress are not eligible to participate.

Upon conclusion of the competition on June 19th 2023, participants will demo/present/showcase their projects to the community and the voting will begin!

A panel of 4 technical/web3 judges 🧑‍⚖️ along with a DAO-wide snapshot vote (5th judge) will decide who will rule them all and win the grand prize! If you are interested in contributing in other ways (helping promote the buidlathon, being a judge in the competition, other ways) dont hesitate to reach out in the channel!

Here’s your chance to make your mark in the community and get 💰 while doing it! Happy buidling!🔨

u/MerkleChainsaw is looking for real adoption and u/silentjxhn makes a great list of examples

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u/MerkleChainsaw:

Long term, I’m very positive that Ethereum will eventually dominate the crypto space and that it will address most major technical challenges, even if it takes another decade or two. I’m pessimistic about crypto overall though.

I’m still on the sidelines because I’m having trouble seeing how crypto overall will achieve true adoption anytime soon. I define “true adoption” very narrowly as significant demand for ETH to be used for some external purpose other than crypto speculation or facilitating crypto speculation. So for example providing DEX liquidity, staking/validation, and issuing most tokens or NFTs don’t count since the demand is mostly based on putting fiat into crypto hoping to get more fiat out. Things that do count include airline or concert ticket NFTs, using ETH contracts for supply chain tracking or audit, and so on. In these cases someone is willing to buy ETH because they can use it to solve an actual problem. I think most other successful technologies were solving real world problems by this stage in their development.

Where can this adoption come from? After all the scams, fraud, and hacks I’d have trouble convincing any company board to use public blockchains beyond maybe an NFT cash grab offering, if for no better reason than avoiding the reputation risk and liability from using crypto. Even a simple use case like accepting stablecoins as payment is tough because every major stablecoin has depegged at some point.

Though it’s small, I think EVMavericks is an example of true adoption. Demand for most people is based on “I’d like to be a member of a club” rather than “I’d like to sell this JPG for a profit”. Maybe some Reddit avatars count in this category as well?

Is there anything on the horizon that I’m missing? Financially I want to buy ETH because it has an asymmetric distribution of returns, and I believe Ethereum is one of the only projects in crypto being designed with good intentions and a long term focus. On the other hand I’m increasingly having trouble seeing where enough new demand will come from to justify a $220B valuation.


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u/silentjxhn:

u/benido2030 has a monthly staking update

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Here’s your new monthly staking update:

Validator overview - total: 619346 validators*

Client diversity numbers**

Pool distribution***

My goal is to show how things develop and answer questions like “How many validators will secure the network by EOY if net new validators are constant”, “Is client diversity improving” and “How is the dynamic between centralized pools and decentralized stakers”.

If you think something very important is missing, let me know and I’ll add it today or tomorrow, so we can work with it in June. Best case share your source, so I know where to find the stats.

This post will contain more information and probably some conclusions in the future, I hope this will be a good summary and help for those who don’t check numbers regularly (I basically didn’t do it and could not tell you how things are developing right now)

Some comments and sources:

All percentages are rounded, so this is not 100% accurate, but should be good enough to show changes in the coming months.

* https://beaconcha.in/validators#all

** https://clientdiversity.org/#distribution

*** https://beaconcha.in/pools

P.S. I wanted to do this yesterday, cause it was the first of the month, but I had no time cause of the bank holiday and also I was too stupid yesterday… So let’s pretend today’s numbers are those from May 1st.

u/Ethical-trade has a cool idea for EVMavericks

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Here’s an idea: EVMavericks’ ManeNet DAO becoming a Rocket Pool oDAO member.

Aren’t we an ideal and trustworthy partner that highly values decentralization?

Edit: just realized how unwelcoming this post must feel to any new member. So let’s explain a few things for our most recent friends:

A while back r/ethfinance launched its own NFT collection, EVMavericks and used the occasion to launch a DAO, the ManeNet DAO. From its website: “ManeNet DAO advances the decentralized Ethereum Web3 ecosystem by aligning shared member incentives with funding, developing, and promoting public goods and education”

Rocket Pool is a liquid staking protocol, and the oDAO is “the group of special Rocket Pool nodes that are responsible for the administrative duties required by the protocol that cannot be achieved by Smart Contracts due to technical limitations”. The “o” in oDAO stands for “oracle”.

So basically the idea here is to have an r/ethfinance native DAO help Rocket Pool with some of its duties. This job pays rather well, and the money could, according to the ManeNet DAO’s mission, be used to advance the decentralized Ethereum Web3 ecosystem.

u/waqwaqattack proposed EVMavericks joining the oDAO to the RocketPool community on RocketFuel

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Yesterday, u/Ethical-trade made a post about how the EVmavricks should join Rocket Pool’s oDAO. I loved that post so much, I covered it in today’s Rocket Fuel - making the case that I strongly support them joining.

I support ManeNet DAO joining the oDAO so strongly that, in the episode, I made the offer of lending the DAO the 1750 RPL needed to cover the bond if they are selected.

Also, I wore my EVMavricks t-shirt especially for this episode!
You can watch it here: https://twitter.com/waqwaqattack/status/1653776527203475458

u/Ender985 has the latest innovations in NFT finance!

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Meanwhile, in NFT-land…

Blur, the incumbent NFT marketplace, just announced Blend: a peer-to-peer lending and borrowing platform that lets users leverage their NFTs as collateral to borrow ETH. These loans are perpetual (no expiration price or date), at fixed rate. The twist? Lenders can call the loan at any time, triggering a Dutch auction for a new lender to step in and take over the loan.

But wait, there’s more! Blend also announced a Buy Now, Pay Later (BNPL) feature, enabling users to “buy” their favourite NFTs with just a 20% down payment, while the rest is borrowed from a lending pool. I wrote “buy”, because until the price is paid in full, the user can’t do anything with the NFT, except for listing it in Blur’s marketplace (ie try to sell it back and profit from the move).

As always, with great financialization comes even greater risks. Borrowing ETH to “buy” an NFT (BNPL) means going long on leverage (you profit if the price of the NFT rises). Borrowing an NFT and immediately sell it for ETH (Blend) means leveraging short (you profit if price falls). The result: when NFT values fluctuate in the opposite of the “expected” direction, users will quickly face liquidations.

We will soon see the impact of this development on collection prices. While leverage markets can help stabilise price fluctuations, they can also create massive liquidation cascades, so I’d expect some days of wild rides are ahead.

Week #17: April 28, 2023

Livestream Recording | POAP

Announcements

Guest appearance by Evin McMullen, cofounder of Disco. Disco is your personal data backpack, making data and reputation portable across web2 apps, web3 dapps, IRL, and more. Evin is also cofounder of DAO Jones and inkDAO and an advisor to Boys Club, The Melon, and Graph Paper Ventures.

The morning trinity

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u/the-A-word

ETHEREUM

$1913

.065

Weekly Haiku: u/Jey_s_TeArS

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Good blockchain actors,

Suing the regulators,

Stifling detractors.

Shitpost of the week: 1l0o

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Famous Crypto Last Words:

Today in Ethereum: u/ZeroTricks

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On this day…

In 2022:

In 2021:

In 2020:

In 2019:

In 2018:

In 2017:

In 2016:


compiled with love

u/SabishiiFury shares regulatory news out of a policy leader at Coinbase

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“The European Parliament’s adoption of MiCA today is a pivotal moment for the crypto industry in the region, and the work of European policymakers should be seen as exemplary,” said Tom Duff Gordon, Vice President of International Policy at Coinbase. “The region is recognising the potential and societal promise that emerging technology can provide. The EU is stepping up to the mark, while other notable jurisdictions are struggling to provide a solid, cohesive regulatory framework that gives clarity to a burgeoning innovative industry.”

https://decrypt.co/137339/european-parliament-approves-mica-law

Lol feel the burn

u/Nonocoiner shares a disconcerting story reminding us to stay on high alert for scams

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User Plastic-Resource-989 just posted a fake twitter link on r/cc about Uniswap announcing they experienced a hack.

The visual link was twitter.com, the actual link to twitter.cn.com

They messed up, as the link endpoint didn’t work.

It looked like some bots were quickly responding, no one seemed to have noticed the link didn’t even work.

Edit: the post has already been removed.

u/696_eth reflects on one year in NFTs

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As I mentioned in the previous day it was 1 year in NFTs for me a few days ago and I’m taking that opportunity to reflect on the last year (& maybe a bit more) and on a variety of topics and experiences. I’m also going to repost them here and maybe something resonates here and there. Of course, I’m starting it with Ethfinance!


1 Year in NFTs: Ethfinance

I start my reflecting on 1 Year in NFTs from Ethfinance.

r/Ethfinance - subreddit that has influenced my Ethereum journey greatly, and thus - my NFT journey.

But how is it exactly connected?

I’ve heard more and more about Ethereum as some of my online internet friends started exploring other chains besides bitcoin. Ethereum was one of the most promising ones. Eventually I ended up hearing more and more about it and I thought it was time to start looking into it. I do not remember exactly how but I did find r/ethfinance sometime in the middle of 2020.

The discussion was amazing compared to the r/ bitcoinmarket’s daily that I had been frequenting for years. Not only people were talking about the tech, it was the majority of the talk there. Quite a contrast compared to only ‘number go up’ in the btc daily.

Fast forward to March 2022, there’s now talks about this NFT project - EVMavericks. Most active people where whitelisted. I had not. Why? Even though I’d been quite a frequent visitor - I was a lurker. Luckily, I made a few comments over the few years and that was enough to get on an additional list and then winning a raffle solidified my involvement.

Nowadays I still visit the Ethfinance daily, almost on a daily basis. Sometimes I get too busy with life. It’s still a wonderful place to ask questions, hear about new developments, be alerted about important topics, see the stories of community members and learn something new everyday.

After being one of the most active members in the EVMavericks discord and being still quite a strong lurker and even turning into a slight poster on Ethfinance, I can share a few of my observations.

I personally prefer the pace of the discord as it’s more of a live chat and closer to a real time conversation. Ethfinance has a higher quality and lower noise. Yet it doesn’t do one thing very well for me and I’d bet especially for the people who are lurking - involving you in being part of the community. You see, sometimes folks like me who are new and not technical have really nothing substantial to contribute. And even though some of us are still asking some questions from time to time which I believe are still valuable contributions, it just does not complete the puzzle. And I believe each of us has something to offer and we can learn something new from each other. And this is where discord comes in and that is what it allows you to do, and I feel that EVMavericks degen chat, in particular, is prime example of bringing folks together. It’s a glue. Still maybe for some but not others.

Now I’m not going to go into pros and cons of each platform but one more thing I will mention is that the subreddit is a nice free resource for new folks. And I feel the vibe is especially geared for people who are, hopefully, going to make it financially as well as being the ones who are understanding and embracing many aspects of the technology and tools that we discover and build.

Next up: reflecting on EVMavericks.

u/696_eth continues their 1 year in review series

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1 Year in NFTs: Twitter Followers (4/21/2022-present)

I never really cared about Twitter prior to this point. I created an IRL account like 10ish years ago but never really used it. When it comes to crypto, most of my time was spent on Reddit - r/ethfinance.

Now, I’m not sure why I created this account, but it seems to be a day after I minted my Maverick. I know there’s usually lots of excitement during the early days (the honey moon phase), and people were eager to bond together and roar about the lion pride. Anyway, I ended up creating an account and following all the Mavs the EVMavericks account was following. One thing that was still weird to me is that so many web3 or crypto projects use Twitter, which is a full web2 platform that can and has rugged some of my friends’ accounts before. My account has been locked multiple times for no reason until you add your phone number, etc. to unlock it. One click on their end - you are gone.

Over time, and after getting more into ENS, I started caring more. I’ve changed sides of caring and not caring so many times now that I don’t remember all the details, but I do know the important parts. What I’ve come to and what I hold nowadays is that I am able to hold both of the sides of caring and not caring at the same time. I personally don’t care about it at all. When I’m in nature, when I’m doing things outside, when I’m engaged in the things that matter, and