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Hey, Bankless Nation. Happy Friday to you. It is the first week of August. David, it's
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roll-up time. This is the EIP 1559 edition, 1559-1559. However you say it, it is the day that
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we have deployed EIP 1559, actually. We will have deployed it one day after you guys
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are listening to this. David, that's pretty exciting, dude. I'm pumped. There is so much to
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talk about and so I'm going to try and refrain from talking about it right now, but it has
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been a long time coming and the fact that EIP 1559 is here and we have things to talk
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about that it's actually live. It's just absolutely stellar and I'm really stoked to get
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into the weekly roll-up this week. Okay, yeah. Do not drink a swig of coffee every time
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you hear EIP 1559 or you will be coffee drunk by this episode. Before we get into the show,
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we got to talk about pool together because it is summertime and it's all time to get into the pool.
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If you don't know pool together, it is a no-loss lottery, which means you put your stablecoins,
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your comp tokens, whatever tokens that pool together accepts into a pool and then you have a chance
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to win the accrued interest that accrues weekly from everyone's collective funds. So you don't lose
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your principle, you might lose your opportunity to cost money, but you also might win everyone
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else's interest as well. It's a fun no-loss lottery on Ethereum. Every single week, roughly 50 to
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$60,000 gets awarded in USDC and that is just the USDC pool. There is usually a drawing every single
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day of the week. They have also recently deployed their polygon implementation where you can deposit
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TUSD tether into the polygon pool together pool together pool and they are also rolling out
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their L2s coming soon in the future. So check them out. There's a link in the show notes so you can
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have fun in the pool. That's a lot of pool time guys. If you haven't yet tried many DeFi apps,
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this is one to try and tell your friends super easy to use and you can't lose. It's a lot of
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you can't lose. So check that out guys. All right, David, you ready to get into Bitcoin markets,
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my friend? Yeah, let's do it. Bitcoin is down on the week starting at the high prices of
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roughly $42,000. Touch the low price of just below $38,000 to where we are currently at right now
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at $39,300 for one Bitcoin. All right, let's talk about ETH price. ETH price doing a little bit of
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the opposite started right around $2,500 on the week and that was roughly about the low
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and it is currently at the high price of roughly $2,800 feels like it's pumping on the news of EIP 1559
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finally going live, which is always kind of funny to me because there's no way you've been
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able to pay attention to a theory without understanding EIP 1559. We talk about it all the time
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and now it's live and now people are buying. It's like weird. Yeah, why did you wait so long?
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Like people who just bought EIP, bought ETH after EIP 1559, like why?
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Anyway, do you think there's some like worry that maybe it wouldn't ship, maybe the hard fork
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wouldn't go right? I have no clue, man, but I mean, I know I wasn't waiting, so.
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We knew this was coming, guys. We also know the merge is coming on the horizon too,
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so that'll be another catalyst in the future. We'll get to a bit more of that later, but let's
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review some more metrics. So, ETH Bitcoin ratio, how's the ETH ratio doing?
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Yeah, listeners will remember last week that we talked about how there was a descending wedge,
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if you want to use again, trader terminology, which I'm not very good at using trader terminology,
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but I'm going to do it anyways. There was a descending wedge that ETH looks like it broke out of
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versus Bitcoin and turns out that that continuation just happened even further this week.
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ETH is above 0.07 ETH per BTC at the price of 0.0712, looking really, really strong, and there's
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a lot of traders that I know, a lot of people that are looking at the ETH BTC ratio, looking like,
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oh, man, it just looks like it's going to resume going higher versus Bitcoin, back to the highs of
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maybe 0.1 ETH, here's BTC, just speculation here, but ETH BTC looking really strong as you would
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expect during EIP 1559 week. Yeah, also not surprising, given these ETH tailwinds, right,
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these ETH catalysts, let's talk about total value locked in DeFi. That is also up on the week.
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I remember hanging in the 50 to 60 billion range now, we're at 70 billion.
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Yeah, that is the theme of markets this week, at least on the Ethereum side of things, is up.
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It's really nice to see that seven number leading a total lot of value back in DeFi. I remember,
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I think the peak that we set back in May was just around 90 billion locked in DeFi. We are back
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up to 70 billion locked in DeFi. All right, let's take a look at the DPI's. This is the DeFi pulse
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index. This tracks in the top DeFi tokens in crypto to give you sense of that. We are up on the
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week as well, David. 18% on the week, 18% green for DPI at the price of $362, which is the local
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high for the week. So congratulations to DPI holders.
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Okay, well, it seems to be ETH season over Bitcoin season. That's what that ratio is telling us,
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but is it DeFi season, David? What are we looking at? Oh, are we below your mount?
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We're below your number. I mean, we'll be like, you know, more shoes hand grenades. It's like,
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we're around my number. We are currently at .128 ETH, ETH, DPI ratio, which means that it is ETH
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season, not necessarily DeFi season. I'm okay with that. Give DeFi a breather for a bit.
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Okay, let's talk about the bed index. So the bed index, of course, composes all of these
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assets together. You get one third Bitcoin, one third ETH, one third DPI, all in one token that
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you have to hold. That is up on the week because all three of those assets are up on the week.
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Where are we right now? We are up 10% on the week started a DPI, excuse me, bed started at $113,
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and we are currently at $130. So that is the summary of the crypto markets at large,
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up 10% on the week. Again, the bed index, the best DeFi crypto index that there ever will be,
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I'm pretty sure. Tell your friends, guys, you just wanted to get exposure to crypto,
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at least the premium assets, the least assets you want to be part of on the bankless journey.
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David, close talk, man. EIP. What do you want to talk about? All right. I look.
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Do we have something to talk about? I know you flew all the way to San Diego last night,
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but you woke up early in the morning to be available for this. It was like, what, five o'clock
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your time? Yeah, woke up at four thirty because Eric Conner and Anthony Sazon were like,
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why isn't the zoom up yet? I'm like, hi, it's an hour before the fork. I guess they were really
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excited to get the ice from up in Rome. Yeah. It's in front of the Christmas tree,
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just like waiting for Santa to come down the gym. They were really excited about this.
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But we're excited too. EIP 1559 got deployed today as part of the London hard fork for Ethereum.
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This is a massive event. There are a slew of other feature updates in that, but EIP 1559 was the
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one we've all been waiting for. That means a number of things. But one thing it definitely means is
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we are burning ETH effective 830 or so. Eastern time this morning we have started burning ETH
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and we will continue to burn ETH until maybe the end of the Ethereum network. Like this is going to
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last into the the future upgrades and it's going to be has become a core part of the protocol.
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And David, there are so many like dashboards where you can see ETH getting burnt in real time
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that I've become addicted to these things. So like here's one etherchain.org slash burn we'd see
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look man, almost 800 ETH burnt only like four and a half hours into this 800 ETH in four and a
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half hours burnt gone. And remind folks why is ETH getting burnt when people are asking the
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question like that seems weird. Why are you burning ETH? Are you like wasting it? Like why is
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this a good thing? Why are you so excited about burning money? Yeah. So here is like kind of a 400
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level bankless content take is that if you listen to our podcast with Vitalik buterin on
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legitimacy the same reason why Bitcoin has a shelling point of zero issuance and a hard cap is
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the same reason why we burn ETH. It is just the best default option because if we didn't burn ETH
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then we would have to figure out where we should send it to who gets it. And that is a very heavy
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political decision that bestows a kingmaker like that's a kingmaker decision like who gets the
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ETH. And so instead of just like deciding who should get all of this ETH which is a ton of money
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or like three billion dollars or three million dollars every like four hours or so it's just
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easiest to say that no one gets it. Or everyone gets it or everyone gets it right because if no one
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gets it then everyone gets it right and everyone I mean like ETH holders which is one of the benefits
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of holding ETH. So EIP1559 changes the way that we allocate ETH when you pay for a transaction.
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You used to pay for a transaction and that money used to go to miners and now instead because we
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have decided that EIP1559 is a stronger security mechanism and an overall UX upgrade for Ethereum
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we've decided that the best thing that we should do is we should burn that ETH and not give it to
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anyone. And if you want to dive deeper into the subject definitely listen to our podcast with
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Hazu EIP1559 and that will go into further depth as to why we burn ETH. And when you Ryan
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you and I talked about this like multiple years ago we really just framed it in a conversation of
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the last puzzle piece the last really important component of Ethereum's monetary policy it makes
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Ethereum more secure it makes ETH are more valuable it's just overall a net beneficial change
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and now it's finally live in the time that I have been ranting we have burned nine more
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ETH. The ticker just went up from 799 to 808 now it's like 810 that is a lot we've burned
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$5,000 in the time that listeners listen to this. All right David remind me we got to check it again
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at the end of the semester or maybe continuously throughout the outside I know we'll empty
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for every five minutes like there's so many places you can you can look at this burn rate this is
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probably my favorite David ultrasound.money go check this out like fantastic memory around this
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ultrasound money not only has the ETH cumulative ETH burn rate but also has a burn leader board
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right so we see like some of these NFT platforms are burning the most ETH right open sea
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a crazy stuff yeah NFTs burning more ETH and defy not not humanatively but just as open
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sees burning more ETH and uniswap like well I'm less mad about my gas fees from NFT launches now
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less mad about that I might be okay with it you can also see it on of course your favorite
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block explorer like ether scan for example and this is cool because you can dig into the actual
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block David he's pulling it up here and you could see the block reward of course that is issuance
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but then you see the amount of ETH burnt on this block which is super cool nice breakdown for you
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and there's so many new metrics in the block explorer now and this is a kind of front running
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what I'm going to say later in the episode with what I'm excited about but there's new things to
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look at which means more things to talk about which makes me so excited more numbers more metrics
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more it's of course it's open and available to anyone I think Micah put together a fantastic
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dashboard on dune analytics we can see ETH burnt per block based fees over time all of this is
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open and available so check that out they'll be in the show notes and this is cool too David we
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just we had this morning our first deflationary Ethereum block you might say our first ultrasound
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Ethereum block because while we issue just over to ETH or so every block according to the protocol
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exactly to ETH exactly to ETH that generally goes to minors we burnt more than we issued
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in this particular block so like the amount burnt per block will fluctuate based on kind of the
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you know the formula and algorithm that's set up in eip1559 in this particular block I'm not
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going to say the number 12 million something you guys can look it up yourselves but there was
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a ETH burnt of 2.078 and ETH block reward of course of two so the net is actually deflationary
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that block now it's not to say Ethereum as a whole is deflationary right now because it's not
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it seems like we're issuing like we're probably burning what would you say 25 or 30 percent
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of proof of work issuance that's about a good estimation I think there's a lot of like settling
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that needs to happen like we are still kind of in this period of a little bit of chaos because like
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minors still have to update like wallets still need to update that's shaken out yeah we so we are
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still settling we are washing this play out in real time and that's going to be one of the fun
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things about the next week is seeing where things settle seeing how full blocks become seeing minors
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get on board seeing wallets get on board because something to talk about is that there's actually
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two transaction types now there's the legacy transaction types and then there's eip1559
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transaction types both types burn ETH but one is just a little bit better for the user one of
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the ones a little bit easier and so it's really up to wallets to update how they allow transactions
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to occur on Ethereum and they should update to the eip1559 over time because that's beneficial to
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the users metamask is now updated my crypto is now updated so people are doing this pretty quickly
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but it's going to take at least a few days for everyone to get on board and synced up with eip1559
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yeah absolutely and so so the net of that is Ethereum is not net deflationary at this moment
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but it is more deflationary so we are burning a you know maybe 25% 30% as David said this will
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take a while to pan out but post merged it's sure looking like things are going to be deflationary
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when that happens that merge referring to is when proof of work gets fully turned off that 4%
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or so issuance per year goes to zero that's going to happen to fly just buzz my hand David
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anyway you were talking about wallets so for the typical user right this is all backwards compatible
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so if you're using metamask and it has not updated then you can just send a transaction the way
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you always change yep no change it might be a bit more expensive relative to using the new transaction
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that David was mentioning but once metamask rolls out they've got a fantastic eip1559 helper page
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to show you how to set transaction priority it's actually I think it's going to be more intuitive
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and easier to use if you're if you're doing that second transaction type the eip1559 transaction
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have you made a transaction yet on a theorem run i haven't oh god it's it's it's like this pseudo
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like speed update it actually feels faster just because like your transaction gets included
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into the next block by almost by by default so like it it's not faster but it feels like it is
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which is kind of actually the more important part yeah that's awesome and like gas fees aren't going
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down as a result right like this is not a improvement in probably in terms of gas fees there's
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some intricacies there that we don't have time to touch again listen to the hazu eip1559 episode
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with bankless yeah absolutely but you notice this David yeah and well you can actually see it
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twice you can see it on the lower right hand side of the screen as well eip1559 is straight up
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trending on Twitter and like think about that for a second that's not a lot of your
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your improvement proposal to this random esoteric little known piece of like internet corner
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which is going to be larger in the future is trending on Twitter eip1559 is on the front page of
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the internet that is absolutely crazy yeah that's really cool and such a yeah strange esoteric name
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what is eip1559 but that's a question they should be asking right now David let's get this
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take from Hayden Adams yeah it's Hayden tweets out it has been two hours since the launch of eip1559
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he tweeted this out a few hours ago and he says uniswap both v2 and v3 is doing its part burning
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80 eth so far again these numbers are already outdated at this rate uniswap alone is burning
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350 thousand eth close to one billion dollars worth per year and then he says congratulations to
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everyone who made eip1559 happened huge win for Ethereum and great great tweet great piece of
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content but also what I want listeners to take take note of is this is just uniswap just uniswap
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is burning 350 thousand eth per year remember just reminder there's roughly around 115 thousand
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or 115 million eth or total and just uniswap is burning a little bit over one third of a million
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ether per year it's just uniswap and so like imagine when there's just more applications imagine
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all the other applications imagine the applications into the future imagine the killer apps that we
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haven't even thought about yet imagine win like completely trustless like composable oracles
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comes online and we can get any data from the world onto Ethereum think about that because imagine
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how much ether we will be burning at that point in time it will be a large number I'm thinking
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about it you know what and this is absolutely a massive upgrade to Ethereum's monetary policy
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and it's kind of the conclusion of a lot of work that a lot of people have been like put in
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the time I just want to give a special bankless shout out and thank you to all of the developers
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in the Ethereum community coordinators you know even even some of the people who are sharing
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gospel and and spreading the news of this and garnering community support this community are
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the people who made this happen and it's like hard to get work done in a way in a decentralized
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community it's also better easier in some other ways and the fact that the Ethereum community pulled
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this off is it's pretty phenomenal pretty exciting I mean this is a live network right like a
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250 billion dollar network and this is a pretty major economic upgrade to it and it took like years
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of literally years of research to come to this point and a ton of work went in so thanks to the
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community thanks to the devs that made this possible thanks to the researchers we did it we did it
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did it fam it the Ethereum upgrade yep 159 upgrade it feels like we are having this 250
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billion dollar jet that we upgraded the engines on while in flight and so like that's kind of
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the degree of complication and that's also the degree of the skills of the developers that we have
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in this community so just like Ryan said thank you for everyone who played a part in getting this
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out the door the world is literally better for it I will make that argument yeah it was super
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cool as by the time when the time we started talking about this let's see how much
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ether we burnt 55 more ether since the last time we brought it up in conversation oh let's just
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keep on doing that every few minutes there you go there you go all right guys moving on from
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EIP 1559 which is hard to do it's very excited about it but we'll be back to it in 21 million
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crypto users all right that's how many crypto users we have this is according to a study put
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out by crypto.com kind of charts crypto users over time the market size of course these are all
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estimates no one could tell for sure not sure the exact you know methodology they used for this
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but it feels ballpark it feels about right and that's an absolutely massive amount of crypto
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users now we say users that's super broad we're talking about anybody who has ever purchased
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a crypto asset this does not defy users these are not people who even necessarily know what they
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bought but these are people who have interacted with maybe purchased a crypto asset possibly done
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something more it's not just a fad 221 million that is starting to become critical mass this is
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moving from like early adopters like the very early stage adopters to kind of this this you know
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mid stage adopters yeah mid stage adopters range 2221 million is not a low number this like you
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said this is got to be like the lowest threshold for what is considered a crypto user right so if you
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like bought 20 dollars worth of Bitcoin on Coinbase and then you then you left it and didn't do
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anything you're a crypto user I'm guessing I would like to know more methodology about how
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crypto.com came about these numbers maybe maybe on the website they have more details the other
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important point to make out is that this is in June 2021 and in January 2021 just six months ago
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it was a 106 million users so we have more than doubled entire like entire user base of this
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entire industry in just six months and so that kind of illustrates kind of how crypto moves in
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waves like it moves in moves in step functions like like nothing will happen for two years and then
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all of a sudden it's an order of magnitude better more order of magnitude more users and Ryan
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221 million users that's a lot of people that can go and make transactions on a theory and burn
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E through the IP 155 now that's right all right let's talk about OpenSea the speaking of more
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burning of ETH OpenSea which is one of the top in the ETH burden charts right now they they
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did this is a tweet from Devon Fincer who's been on the podcast before in 2020 OpenSea did about
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21 million in total transaction volume that's the total for the year in the last two days he's
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tweeting this August first we did 95 million two days 95 million in entire year in 2020
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they only did 21 million the growth curve for NFTs is insane yeah it is insane absolutely going
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bonkers and OpenSea is crushing it yeah no wonder OpenSea had that monster raise not too long go
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NFTs are definitely hot turns out the bear market was this was what I wrote in the market Monday
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this week turns out the NFT bear market was just a meme and it turns out it was an NFT land grab
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opportunity for the people that believed in it and then the market realized it all like all in the
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last like two days that Devon was talking about sadly those two days where OpenSea had such
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insane amount of volume was before EIP 1559 so we didn't burn that ETH but all future volume going
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through OpenSea will indeed burn more ETH look at this this is worth a quick getter to Ethereum
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addresses using DeFi rose 65% last quarter so more ETH addresses going bankless using DeFi
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up in ETH wait is that not what you're gonna say oh okay no no all right guys we will be back with
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some more burning ETH talk but before we do we want to thank the sponsors that made this
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episode possible bankless is proud to be supported by Uniswap Uniswap is a new paradigm in asset
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exchange infrastructure instead of a cumbersome order book system where trades are matched with
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other humans Uniswap is an autonomous piece of software on Ethereum which is what Ryan and I call
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a money robot no human counterparties or centralized intermediaries just autonomous code on Ethereum
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input the token you want to sell and receive the token you want to buy something brand new
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in the Uniswap ecosystem is the Uniswap grants program is now accepting applications for grants
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we have been saying this for a while and we'll say it again dals have money and they are in need
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of labor if you think that you have something to contribute to the Uniswap Dow apply for a grant
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to Uniswap just look at the size of the Uniswap treasury it's almost three billion dollars
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this mountain of capital is looking for labor do you have something of value to contribute to
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the Uniswap Dow no matter how big or small your idea is you can apply for a unigrant at unigrants.org
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and help steer Uniswap in the direction that you think it should go that's exactly what we did
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to get Uniswap to be a sponsor for bankless and you can do the same for your project thank you
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Uniswap for sponsoring bankless the Ave protocol is a decentralized liquidity protocol on Ethereum
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which allows users to supply and borrow certain crypto assets. Ave version 2 has a ton of cool
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features that makes using the Ave protocol even more powerful with Ave you can leverage the full
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power of DeFi money Legos yield and composability all in one application on Ave there are a ton
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of assets that you can supply to the protocol in order to gain yield and all of those same assets
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can also be borrowed from the protocol if you have supplied collateral here you can see me
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borrowing 200 USDC against my portfolio of a number of different DeFi tokens and ease
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I'll choose a variable interest rate because it's a lower rate than the stable interest rate
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option but I could choose the stable interest rate option if I wanted to lock in that interest rate
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in permanently V2 also features the ability for users to swap collateral without having to withdraw
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their assets trade them on Uniswap and then deposit them back into Ave with Ave users can do this
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in one seamless transaction saving you time and gas costs check out the power of Ave at Ave.com
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that's A-A-V-E.com hey guys we are back with the releases Dave there's so much to talk about
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we still have some EIP 1559 to cover but we want to get to regulatory so we're going to burn
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through some of these releases and get to the regulatory section get to the news the first is
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this starkware and so rare are teaming up they are releasing the so rare as a scalability solution
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on starkware so so rare is another NFT project for soccer football in Europe and it's been
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doing super well it's good to see them deploying on layer two with starkware as their scalability tech
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layer two summer continues and so does NFT summer so awesome let's keep going yeah absolutely
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brand new ethereum application now on main net thales a binary options trading platform has
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deployed it's got a seed investment from synthetics so communities seeding other communities so
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that's pretty cool there's a lot to talk about there but unfortunately don't have the time
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if you're interested in binary options trading go to thales THALES dot market and see what it's
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like i have not tried this out yet so if you are a binary option trader ping us on twitter and let
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us know what you think guys speaking of the synthetics world the derivatives world dy dx just
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drop their token this week so this is a governance that's token for dy dx david we've written tactics
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about dy dx number of times most recently recently when they deployed their layer to technology
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i think that was like april or may or so and the good news is they're doing a retrospective
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air drop so if you have ever used dy dx you might be eligible we actually put out what we call an
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alpha alert to bankless premium subscribers on the newsletter with all of the details of this
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retroactive air drop what it includes you can also find some of this information on the dy dx
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website again you're eligible if you paid fees the dy dx and then you have to use layer two it looks
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like they are also receiving some bumps in adoption post governance post governance token launch so
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this again there's a story of kind of the the previous defy summer when the comp token launched
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and comp usage went off the charts this is now also happening with dy dx so go check that out you
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might be eligible for that retrospective air drop there's also there's also a future ways to earn
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dy dx token if you are a liquidity provider and some other things so make sure to check that out
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here's a quick at bankless self-shield we told you this was going to happen like six months ago
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so shout out to the guys in the bankless discord who said that they started using dy dx when we
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when we guessed that dy dx is going to listen airdrop and they got the airdrop because of that so
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sometimes listening to the bankless weekly roll up gives you alpha David one sad part for residents
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of the u.s. is that residents of the u.s. are not eligible for this retrospective air drop so
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this is Jake Travinsky saying I feel so safe and protected in response to Anthony Sassano saying
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the us investors are missing out on this airdrop because of stupid regulations David this doesn't
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feel great that the SEC is protecting us investors from free money I mean they're definitely
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here that to prevent scams and to help make sure that markets are transparent this does not feel
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either of those two objectives that's that's exactly right us investors are people just like the
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rest of the world I was a previous user of dy dx before they implemented the the IP ban so I did not
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get my dy dx tokens which I feel like I should have gotten because like I said I'm a user but I'm glad
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other people were able to get the tokens dy dx unfortunately but also fortunately for them did a
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very good meticulous job of tracking IP addresses and linking that to aetherium addresses and so if
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you're aetherium address what's associated with the us IP address you did not get the airdrop
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and you can thank the SEC for that one there you go in other news bitwise has just launched two new
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DeFi funds one for Uniswap one for Ave so investors who are credit investors because of course
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bitwise is kind of this bridge from old finance to DeFi they can invest in these assets without having
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metamask without taking self custody sort of an easy way to do this through kind of brokerage
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accounts and traditional finance great to see bitwise investing further and expanding further in
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the DeFi space and giving more exposure to two traditional investors there yeah basically this is
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just a wrapper around Ave and uni tokens making them available to accredited investors in the
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trad fi world it's progress I guess but again limited and hampered by regulations so we're
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going to have to we're going to be talking about regulation here in the second round soon yeah I
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feel like we got some access to grind here okay Argent though this is great news Argent one of our
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favorite smart contract wallets they are now going to layer two this has been probably the biggest
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feature this UX problem with with Argent wallet smart contracts wallets in general is high gas
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prices well no longer right now they have a layer to wait list you can enter that they've got
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prizes almost 300 K and crypto sweepstakes to celebrate so it's not out yet but you can enter
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that wait list I can't wait to see what they have in store I'm pretty excited about this one yeah
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also definitely go listen to Vitalik smart contract wallets on layer two that was a fantastic
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episode about why specifically layer two is very good for enabling smart contract wallets I
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was a heavy user of Argent wallet when back in the early days but as soon as gas fees on the
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Ethereum stopped being one way and for the Ethereum like newcomers like it used to be one
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way which is kind of insane now so the Argent works pretty well like gas fees were basically
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nothing and you didn't have to wait too long but now gas fees with Argent are really expensive
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and the transactions take a really long time this is something that really needs layer two to work
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so I'm really excited to see what Argent on layer two is like I'm going to keep us moving David
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rocket pool is going to test net which is super exciting and you decentralized staking protocol
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rocket pool going to test net on August 2nd I hope they can keep shipping there are a lot of
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I think staking organizations that have come up and deployed solutions ahead of them we've
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been super excited about rocket pool because of their their focus on decentralization is good to
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see them progress to test net um David you want to talk about this this is a new eth
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modeler maybe like a wrist modeler some sort what is this yeah this is an e-supply simulator a
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little bit like ultrasound dot money but just feel more things to tinker with a nice little graph
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and so you can change the validator how many validators there are you can change when the
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proof of state activation comes you can change the gas fee and then it will model out the future
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supply of eth for you so don't let anyone tell you that you can't predict the future supply of
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it is capable of being done and you can also see how low that number goes which is where I get
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excited yeah you can model this based on your own assumptions whatever those are also cool David
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in continuation of layer two summer diversify which is a decentralized exchange is now bridging
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directly to polygon which is super cool to see remember ethereum is a economic nexus we have the
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main chain we got layer two we got side chains all those things are going to interconnect with
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each other in different ways and so this is one of those many bridges that just got built you can
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now go straight from polygon to diversify without even touching ethereum uh and so no longer can
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you say that gas prices are an issue because you can just go to the L2 and stay there
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absolutely guys uh David let's get to raises so this just in Missouri which is a crypto media
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company crypto analysis company just launched just released information about their 21 million
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series a funding which is cool in and of itself it's also cool is that another billionaire has joined
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the banks is investing in that series a uh Steve Cohen so you might know him from 0.72 a large
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kind of crypto capital or sorry a large traditional capital firm um in july there was news release
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that 0.72 is hunting for a crypto chief after saying it would be remiss to ignore digital assets so
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it's there it's a link there too again this is the story of of traditional finance at billionaires
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starting to get into crypto and deploy capital there not just in the assets themselves but in some
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of the infrastructure companies in this case in missarius it's kind of cool to see another d5
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protocol sense finance announced their raise of 5.2 million dollars they're saying to add a new
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dimension to d5 so this is essentially creating fixed income types of markets so similar to
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element finance if you're familiar with that uh sense has a kind of a different take on it but also
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building out that a fixed income primitive super exciting to see David uh you want to talk
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about crystal this is a d5 platform that raised 6.1 million what are they up to yeah this is crystal
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out of kyber so kyber moving out of just being the liquidity provider to ethereum to also being a
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kind of a d5 dashboard we've seen a bunch of emergencies of new d5 dashboards out on the scene
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especially as d5 becomes more rich and more complex uh so crystal is going to be a new place to
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interact with all of d5 uh we've been joking about and jim bianco really gets credit for this joke
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is like people are looking for like all right i downloaded coinbase where's the d5 uh and there's
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actually more and more like people out there working to provide the d5 for people and this is uh
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the the new product out of kyber called crystal and let's see where it goes people want their d5
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button where's the d5 button we say it every time but if you were looking for a job in crypto the way
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to check that out of l is through the bankless jobs boards got a lot of fantastic jobs featured there
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senior product manager at immutable gaming crypto gaming company full stack engineer at palette a
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senior solidity engineer at quant finance chief investment officer at yield app a software
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engineer at arbitrum a designer at pool together of course bankless is still looking for its
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editors so there's tons of opportunities to plug in during this uh season this i guess crab season
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bull market season still on but crypto firms are hiring like crazy that crab market with much
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big bull horns big bull horns on that crab all right david you ready to get to the news yeah let's do
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all right man let's start with this um this is the a blog post entitled the road to trustless
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eth-staking we've been doing a lot of deep dives on eth-staking recently we had that
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eth-staking panel one of the uh panelists was from lido and this is a blog post from lido
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they are are kind of moving really quickly in in uh the eth-staking industry and they just rolled
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out this post about becoming more trustless david what's the TLDR of what they're attempting to do
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here yeah basically basically the TLDR is that there is a few low hanging fruit things to be
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become completely trustless as a staking as a service provider and and maybe just to back up as
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as context is there there are two main significant um staking as a service providers that aren't
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just like a centralized exchange one of them is lido which we're talking about now the other one
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is rocket pool which we talked about earlier rocket pool has always had the ethos of being
384
00:36:30.040 --> 00:36:35.560
maximally and completely decentralized without compromise from day one lido has made some sort of
385
00:36:35.560 --> 00:36:41.080
compromises to trustless staking uh by starting with a Dow multi-sick model this is the same critiques
386
00:36:41.080 --> 00:36:45.800
that you know a polygon has been getting for being secured by a multi-sick and rather than being
387
00:36:45.800 --> 00:36:52.520
a protocol but the uh the the ethos behind lido is that well if we wait to become a completely
388
00:36:52.520 --> 00:36:58.840
decentralized protocol the uh the stake the centralized uh exchanges like coinbase and kraken might
389
00:36:58.840 --> 00:37:03.640
gain too much of a lead and that is kind of a threat in of itself and so in order to get out the
390
00:37:03.640 --> 00:37:10.040
door quickly lido started as a Dow with permission validators and now this blog post talks about the
391
00:37:10.040 --> 00:37:16.440
way that they are going to further their trustlessness further their decentralization and turn into
392
00:37:16.440 --> 00:37:20.760
something closer to what their ethos behind rocket pool is and so they talk about the problems that
393
00:37:20.760 --> 00:37:25.640
they have ahead how they are going to tackle them and what the various uh routes towards the
394
00:37:25.640 --> 00:37:31.880
trustless future that they want out of lido it's really awesome to see uh lido have that commitment
395
00:37:31.880 --> 00:37:36.760
have that ethos and so that makes me excited uh there's also some pretty cool cryptographic
396
00:37:36.760 --> 00:37:41.080
ethereum stuff uh shared secret validators is something that i am paying attention to which
397
00:37:41.080 --> 00:37:47.720
has a mention here in the post so if you are interested in seeing how a Dow can turn into a protocol
398
00:37:47.720 --> 00:37:52.360
shared thief validators is one of the uh points here and if you are into that world definitely
399
00:37:52.360 --> 00:37:57.240
check out this blog post it's a very just educational one to read we definitely have to make sure
400
00:37:57.240 --> 00:38:02.600
it's staking remains decentralized remains trustless so this is an initiative we will continue to support
401
00:38:02.600 --> 00:38:10.920
at bankless uh david interesting news zoku who is who go zuko zuko sorry who is the lead founder of
402
00:38:11.560 --> 00:38:16.760
z cash um ask this question on twitter this is a governance question should z cash switch from
403
00:38:16.760 --> 00:38:20.840
proof of work to proof of stake it's kind of interesting here right even that this question is
404
00:38:20.840 --> 00:38:28.680
being posed i have to ask myself does this mean proof of stake has won or is winning like when a
405
00:38:28.680 --> 00:38:36.200
longstanding proof of work uh chain you know raises this question you have to ask yourself why
406
00:38:36.200 --> 00:38:41.240
right totally and zuko the z cash community in the ethereum community have always been really
407
00:38:41.240 --> 00:38:46.520
really close you and i have critiques z cash in the past about like just privacy need its own
408
00:38:46.520 --> 00:38:51.720
l one and to some degree i think this is actually an illustration of that because proof of stake is
409
00:38:51.720 --> 00:38:57.000
just like may it does a leaner consensus algorithm which is just like making the whole thing just
410
00:38:57.000 --> 00:39:01.560
leaner and smaller and more condensed which kind of goes to show that like no you are just trying to
411
00:39:01.560 --> 00:39:06.920
optimize for zero knowledge proofs which should be an app on ethereum that's really a different story
412
00:39:06.920 --> 00:39:11.880
uh i take your point that a longstanding proof of work blockchain and it just started with proof
413
00:39:12.040 --> 00:39:16.600
of work because that's what z cash had to work with at the time is now saying like hey proof of
414
00:39:16.600 --> 00:39:22.520
stake might work better for us and there is definitely a stronger a very strong argument to link
415
00:39:22.520 --> 00:39:27.880
proof of stake with cryptography cryptography is easier with proof of stake um i'm not technical enough
416
00:39:27.880 --> 00:39:31.800
to explain how i did just just my gut take i mean but that was like there's a huge efficiency gain
417
00:39:31.800 --> 00:39:38.040
and that might be it like i know um z cash spends a whole lot of money in in terms of block rewards
418
00:39:38.200 --> 00:39:43.640
in order to fund the security of of of itself z cash and so if you transition to proof of stake
419
00:39:43.640 --> 00:39:48.520
you you don't have to spend as much maybe like one tenth the amount it's kind of estimates with uh
420
00:39:48.520 --> 00:39:53.480
that Justin Drake gives for a switch from proof of work to proof of stake so we'll see how that goes
421
00:39:53.480 --> 00:39:58.760
David let's talk NFT stuff because that is a big story this week as well crypto punks are just
422
00:39:58.760 --> 00:40:06.280
pumping crypto punks price rise 53% in a week after ethereum whales feeding frenzy that is the
423
00:40:06.280 --> 00:40:11.080
title half of the top ten crypto punks have been sold over the past two days this happened last
424
00:40:11.080 --> 00:40:15.400
week what is going on in the crypto punk world yeah this is what i wrote about again in the market
425
00:40:15.400 --> 00:40:20.440
Monday there was uh people thought it was the NFT bear market but the convicted knew that it was
426
00:40:20.440 --> 00:40:25.720
an NFT like land grab opportunity and so there was a bunch of people that were bullish on NFTs that
427
00:40:25.720 --> 00:40:32.280
were buying up the cheap NFTs as people left the NFT like mania from from earlier uh and then
428
00:40:32.280 --> 00:40:36.840
enough people realized what was going on that NFTs weren't actually bearish and they were quite
429
00:40:36.840 --> 00:40:41.560
bullish and then all of a sudden the market kind of all realized it at once and people descended upon
430
00:40:41.560 --> 00:40:47.960
first crypto punks which were kind of like the you know a Bitcoin of NFTs the OG NFTs uh and uh
431
00:40:47.960 --> 00:40:54.680
that's the crypto punks got bought up first uh the first event that happened was that uh Gary v
432
00:40:54.680 --> 00:41:00.840
paid two point seven million dollars for a knitted cap ape uh and then he tweeted out uh
433
00:41:00.920 --> 00:41:05.640
something something like here we go or something and then and then people connected it and that kind
434
00:41:05.640 --> 00:41:11.880
of uh kicked off the frenzy i was part of that frenzy i got the phomo so i bought my crypto punk
435
00:41:11.880 --> 00:41:16.360
right after uh right out right out right after i saw this frenzy like pick up because i kind of felt
436
00:41:16.360 --> 00:41:20.360
i was part of that like i was part of that uh environment where people thought that NFTs were
437
00:41:20.360 --> 00:41:25.560
bearish uh and then realized that everyone else is also bullish on NFTs so i phomoed into a punk
438
00:41:25.560 --> 00:41:31.480
and i phomoed into a punk friday morning and the and the punk mania just absolutely continued for
439
00:41:31.480 --> 00:41:37.800
the next like 48 72 hours where if you go there there's a dune dune analytics dashboard for punks
440
00:41:37.800 --> 00:41:43.080
that compared all time volume and just the the last week of volume is like three times higher than
441
00:41:43.080 --> 00:41:48.440
any other candle there's a and there's and then millions and millions of dollars got purchased
442
00:41:48.440 --> 00:41:54.920
or got spent on on uh crypto punks after Gary v but the the ape knitted cap NFT for two point
443
00:41:54.920 --> 00:42:01.560
seven million another ape gold chain crypto punk got sold for five point five million uh an alien
444
00:42:01.560 --> 00:42:07.240
punk got bought yesterday for a thousand ether and new alien crypto punk got listed available to be
445
00:42:07.240 --> 00:42:12.600
sold for 90 million we'll see if that gets purchased and then we also saw three arrows capital
446
00:42:12.600 --> 00:42:18.040
come in throwing a bunch of money of crypto punks in art blocks and some other NFT projects we saw
447
00:42:18.040 --> 00:42:23.080
the floor price which is the lowest price that you can buy a specific NFT for for so many different
448
00:42:23.080 --> 00:42:29.400
NFT projects run up uh board apes got purchased like art blocks got purchased uh cool cats got
449
00:42:29.400 --> 00:42:34.840
purchased uh and so there was just a bunch of reallocation rotation into the NFT industry and that
450
00:42:34.840 --> 00:42:39.400
all happened last weekend is still kind of happening to this day you ever going to sell your crypto
451
00:42:39.400 --> 00:42:45.000
punk david so i realized like right after i bought my crypto punks like great i got a crypto
452
00:42:45.000 --> 00:42:48.600
punk now i'm really bullish crypto punk now i'm going to put it as my avatar and now i realize
453
00:42:48.600 --> 00:42:54.600
that i only have one and i can't ever sell it because i it's i it's my only one it's become
454
00:42:54.600 --> 00:42:58.760
it's like it's it's part of me now and so i can't ever sell my one crypto punk so i bought
455
00:42:58.760 --> 00:43:02.840
relatively expensive crypto punk and now i can't ever sell it so you do expect this to appreciate
456
00:43:02.840 --> 00:43:08.760
over time right in ether terms yes in ether terms oh absolutely absolutely ether terms and ether
457
00:43:08.760 --> 00:43:14.200
terms totally more bullish crypto punks than he wow ether crypto punks are just wrapped ether
458
00:43:16.120 --> 00:43:24.680
interesting uh wrapped ether in pixel form is uh it's okay i guess okay cool um yeah anything else
459
00:43:24.680 --> 00:43:33.480
on crypto punks um bullish bullish i'm talking about this more more NFTs uh polygon has become a sponsor
460
00:43:33.960 --> 00:43:42.040
of the new york nix that seems super big what um wow do york nix consider account so i say sponsor
461
00:43:43.160 --> 00:43:47.640
probably yeah you said sponsor yeah proud proud to power the nft collection are they're powering
462
00:43:47.640 --> 00:43:53.160
that nft collection yes that's a sponsor but yes so they are powering so new york nix are using
463
00:43:53.160 --> 00:43:58.040
polygon tech in order to deploy NFTs that's what this looks like absolutely while we're talking
464
00:43:58.040 --> 00:44:02.520
NFTs david uh tell me about treverse what is that at treverse i've heard i haven't played this
465
00:44:02.520 --> 00:44:08.600
myself this is a new game on ethereum that is uh token enabled uh it i've heard this described as
466
00:44:08.600 --> 00:44:14.200
like a runescape a new runescape which i definitely played when i was younger uh and it is a token
467
00:44:14.200 --> 00:44:20.280
enabled game played to win actually infinity type game uh and uh while this is kind of in its
468
00:44:20.280 --> 00:44:24.440
early stages just wanted to call attention to this if you want to explore the play to earn games
469
00:44:24.440 --> 00:44:29.480
version of ethereum side of ethereum uh check out treverse uh the twitter account is the treverse
470
00:44:29.880 --> 00:44:35.640
all right david let's talk regulatory uh you want to start with the infrastructure bill man so
471
00:44:35.640 --> 00:44:42.280
this infrastructure bill has been just huge um seems like there's momentum to pass it uh and the
472
00:44:42.280 --> 00:44:48.600
problem with it is there was a provision that got added to the infrastructure bill bill in part
473
00:44:48.600 --> 00:44:55.160
of the pay for section that putted some handcuffs i'll say um some just stringent requests
474
00:44:55.160 --> 00:45:02.040
unrealistic requests on crypto in particular attacks reporting of crypto that could extend to
475
00:45:02.040 --> 00:45:09.640
individual wallets maybe wallet providers uh maybe uh um maybe exchanges like uniswap um doing
476
00:45:09.640 --> 00:45:16.040
things that none of these protocols actually have the capability to report like the requirements uh
477
00:45:16.040 --> 00:45:22.520
don't even make sense in the bill and so there was a huge crypto rally and pushback against this
478
00:45:22.520 --> 00:45:27.480
we had folks from coin center for example uh working with with senators to try to
479
00:45:27.480 --> 00:45:33.560
change this information change this um this bill i have it amended and uh looks like there's
480
00:45:33.560 --> 00:45:38.280
some progress here one could you update us on what that progresses yeah first off just just
481
00:45:38.280 --> 00:45:44.920
to reiterate the bill made anybody that ever provided any service to any user of any cryptocurrency
482
00:45:44.920 --> 00:45:50.040
it labeled them as a broker which means that they had to do reporting on all of their users which
483
00:45:50.120 --> 00:45:54.760
to some degree is really really hard and not even relevant and then best case scenario and then
484
00:45:54.760 --> 00:45:59.320
worst case scenarios actually straight up impossible right so like that it would make metamask
485
00:45:59.320 --> 00:46:03.960
defined as a broker which means metamask would have to do reporting requirements uh Jerry
486
00:46:03.960 --> 00:46:10.200
Brito who is at coin center um he he tweeted out uh that they have made improvements into the language
487
00:46:10.200 --> 00:46:15.320
and so they were able to exclude validators which means like node operators are no longer required
488
00:46:15.320 --> 00:46:20.760
to report uh hardware and and software uh while it's no longer required to report so that's like
489
00:46:20.760 --> 00:46:26.040
ledger and metamask um there's still many more things many more battles to be had to make this
490
00:46:27.320 --> 00:46:32.600
legislation make any sense at all but it's made a step in the right direction we've had
491
00:46:32.600 --> 00:46:37.720
i've heard some interesting takes about um you just straight up the logistics of this the other
492
00:46:37.720 --> 00:46:42.600
thing about this david is it's it's really nice to see some us senators on our side so senator
493
00:46:42.600 --> 00:46:48.680
widened senator lumus senator to me uh they were part of working through this amendment changing
494
00:46:48.680 --> 00:46:52.680
the language working with coin center to really understand the crypto industry so we do have some
495
00:46:52.680 --> 00:46:58.200
senators that are crypto sympathetic and seem to understand this and of course senator lumus
496
00:46:58.200 --> 00:47:05.000
was uh the individual who in Wyoming had uh some Dow legislation passed in her home state so
497
00:47:05.000 --> 00:47:10.760
that's cool to see that said i mean this is a great example of the crypto industry kind of rallying
498
00:47:10.760 --> 00:47:16.040
and saying like pushing back against this i heard tons of people call senators um like tweet about
499
00:47:16.040 --> 00:47:22.920
this uh you know um write letters this sort of thing write emails this sort of thing and i think
500
00:47:22.920 --> 00:47:28.200
part and parcel like part of that action was actually why we were able to get this amendment
501
00:47:28.200 --> 00:47:34.280
language in place um it was definitely put out there as a a fire alarm like everybody in crypto
502
00:47:34.280 --> 00:47:39.400
come react to this and make sure that this this legislation doesn't go forward and at the end of
503
00:47:39.400 --> 00:47:44.280
the day it seems like it is being resolved there's still some action that people can take to
504
00:47:44.280 --> 00:47:49.800
call their senators in fact we have a link in the show notes um to call your senator to save crypto
505
00:47:49.800 --> 00:47:54.680
and make sure that this uh this doesn't happen that this amendment does go through and i'm curious
506
00:47:54.680 --> 00:48:00.280
to hear your perspective on this david you feel like this is um this is a crypto success story
507
00:48:00.280 --> 00:48:07.400
or do you feel like at some level this is um i don't know a bit of a of a false alarm or like we
508
00:48:08.200 --> 00:48:12.760
were overly worried the crypto industry was overly worried about you know
509
00:48:14.680 --> 00:48:19.320
language that was going to be changed at some at some stage anyway and there was you know too
510
00:48:19.320 --> 00:48:24.600
much regulatory thought going on what's your take on this yeah so the the take that i've kind of
511
00:48:24.600 --> 00:48:29.080
agree with but i'm not really highly convicted in this in this belief is that the legislation was
512
00:48:29.080 --> 00:48:34.760
so incredibly just nonsensical and like and i feel like you could see this in the markets because
513
00:48:34.760 --> 00:48:39.800
the markets did not negatively react to and the legislation that could like in theory completely
514
00:48:39.800 --> 00:48:46.760
break the industry but the legislation was so bad was so uninformed was so like nonsensical didn't
515
00:48:46.760 --> 00:48:53.320
even make sense that like as soon as like regulators would try to enforce this legislation they would
516
00:48:53.320 --> 00:48:58.440
realize what absolute like shitstorm they accidentally caused for themselves imagine going to like
517
00:48:58.440 --> 00:49:03.560
Dan Finley at Metamask and saying hey Dan Finley like give us the all of the like reporting
518
00:49:03.560 --> 00:49:08.440
tax details of like all like 50 million of your users which you don't collect tax information
519
00:49:08.440 --> 00:49:13.560
zones by default like it is and that's just one example right like the ledger doesn't know
520
00:49:13.560 --> 00:49:18.680
what your addresses are in your ledger like ledger can't report so it can provide you the wallet
521
00:49:18.680 --> 00:49:22.360
and therefore in theory it should be a broker in providing that information to regulators but it
522
00:49:22.360 --> 00:49:28.200
has no idea so like to some degree this regulation was so incredibly nonsensical that as soon as
523
00:49:28.200 --> 00:49:33.960
any enforcement attempt would come it would be so easy to defend in court it would be so easy
524
00:49:33.960 --> 00:49:37.880
like regulators would just be overwhelmed with what to do and that's why I think the markets
525
00:49:37.880 --> 00:49:43.560
didn't react because the nonsensical nature of this was so incredibly crazy that like it was
526
00:49:43.560 --> 00:49:48.200
going to be impossible to be even forced anyways it didn't seem malicious it just seemed inept
527
00:49:48.200 --> 00:49:53.800
it seemed you know it seemed like just straight up like what's the word uh inept it's a great word
528
00:49:53.800 --> 00:49:59.480
inept it's a great word right and so to some degree well like you know very very important efforts
529
00:49:59.480 --> 00:50:04.840
were taken to rally the community to get good legislation in and we should always as an industry
530
00:50:04.840 --> 00:50:12.120
always get good legislation in when we can it was I'm very glad to see that crypto the crypto community
531
00:50:12.120 --> 00:50:18.440
the crypto industry rose to the occasion and actively participated in governance over a nation
532
00:50:18.520 --> 00:50:24.280
state which impacts our industry our industry is kind of branded as they like this anti-state
533
00:50:24.280 --> 00:50:30.440
anti-regulation anti-government like industry and like to be fair like the crypto world is the
534
00:50:30.440 --> 00:50:36.920
straight up anti-regulo non and anti-nation state is it really anti it's a non-nation state
535
00:50:36.920 --> 00:50:42.600
technology so like that's what you get it's extra it's extra nation state right like non non bias
536
00:50:42.600 --> 00:50:48.440
to the nation say it just is and the crypto crypto community regardless of that branding showed up
537
00:50:48.440 --> 00:50:55.720
to like senators telephone showed up to to like where regulation gets done and participated
538
00:50:55.720 --> 00:51:00.840
and so that makes me bullish on the community when we need to we will rally and get what we need to
539
00:51:00.840 --> 00:51:07.480
done that being said was this a not a drill or was this a drill and it's one of those things where like
540
00:51:07.560 --> 00:51:12.840
if this wasn't a drill we acted accordingly and we kind of turned it into a nothing burger
541
00:51:12.840 --> 00:51:17.160
at the end of the day I think that's like 18 yeah I mean it's like you have to treat every
542
00:51:17.160 --> 00:51:22.040
fire drill as if it's real because one of them like will be real right so you have to react to
543
00:51:22.040 --> 00:51:26.280
everyone I'm really proud of what the crypto community has accomplished guys but still
544
00:51:27.320 --> 00:51:31.320
we'll have a link in the show notes for fightforyourfuture.org where you can contact your
545
00:51:31.320 --> 00:51:37.160
senator it's like pre-made information they will help you through the process to make sure
546
00:51:37.160 --> 00:51:42.360
this amendment sticks in crypto but like I think part of the reason we're so worried David is
547
00:51:42.360 --> 00:51:47.640
because it just seems like coming out of us lawmakers they just don't understand this asset class
548
00:51:47.640 --> 00:51:54.760
at all so this is a headline from Senator Livingham Lauren she said crypto markets might need
549
00:51:54.760 --> 00:52:00.760
bailout someday without the proper regulation so you know she's making the case essentially that
550
00:52:00.760 --> 00:52:06.120
hey if we don't regulate crypto tax US taxpayers are going to be on the hook the next time crypto
551
00:52:06.120 --> 00:52:13.720
wants a bailout bailout and I'm like what like no literally the opposite you're thinking of banks
552
00:52:13.720 --> 00:52:20.200
right Elizabeth Warren banks are the groups that need bailouts crypto has never asked can't even ask
553
00:52:20.200 --> 00:52:28.600
right for to ask the odd system I wouldn't dare ask regulators for a bailout like but like how could
554
00:52:28.600 --> 00:52:34.440
that work I just it's just a fundamental mismatch understanding if this is part of the reason
555
00:52:35.000 --> 00:52:41.400
you're you're saying this is a case you're making to support crypto regulation because crypto
556
00:52:41.400 --> 00:52:48.520
regulation might need bailouts some days like no I mean we've gone through 95% 99% price drops
557
00:52:49.480 --> 00:52:54.600
not asking for a bailout DeFi gets hacked all of the time no bailouts was there a bailout for
558
00:52:54.600 --> 00:53:00.600
Mount Gawks David like no bailouts are coming we know that everyone in crypto knows that and
559
00:53:00.600 --> 00:53:07.080
that is a feature it is not a bug that's absolutely right it's a feature we need inside of our
560
00:53:07.080 --> 00:53:12.520
existing financial system this is why we're going crypto is because big banks and a plutocrats
561
00:53:12.520 --> 00:53:17.080
in all the guard cannot be billed that bailed out that's why we're doing this so it's like
562
00:53:17.720 --> 00:53:23.080
swing and a miss man totally with on the point absolutely why we're worried just why we're worried
563
00:53:23.080 --> 00:53:27.640
this just like gives you such a great insight into the inner workings of Elizabeth Warren's brain
564
00:53:27.640 --> 00:53:34.200
thinking just like oh they might need a bailout like that is straight up like put like in inner inner
565
00:53:34.200 --> 00:53:41.400
circle just like incumbents paying off regulators the reason why bailouts happened is because people
566
00:53:41.400 --> 00:53:47.320
who are insiders were able to make them happen who is literally the not insiders of the world is
567
00:53:47.320 --> 00:53:53.400
the crypto people we are the outside that's why we are here we are too proud of an industry to
568
00:53:53.400 --> 00:53:58.680
ask for regulations we would never want them in the first place we are building our protocols
569
00:53:58.680 --> 00:54:04.600
to be regulation resistant and bailout unnecessary like the whole point and so like the fact that
570
00:54:04.600 --> 00:54:10.200
Elizabeth Warren even would associate like bailouts with crypto just tells you what mindset she's in
571
00:54:10.200 --> 00:54:15.640
she is in an MMT mindset she's in a nanny state mindset she thinks that we're going to ask for
572
00:54:16.200 --> 00:54:22.040
for for for bailouts and therefore we deserve regulation we really we want neither of those things
573
00:54:22.040 --> 00:54:26.680
we don't need bailouts we get rug pulled and then we carry on the next day that's what it means
574
00:54:26.680 --> 00:54:31.960
to be a crypto person like it just puts you too much insight into how Elizabeth Warren doesn't
575
00:54:31.960 --> 00:54:36.760
understand at all what this the ethos of this industry is and she's using this whole like oh they're
576
00:54:36.760 --> 00:54:41.800
going to ask for a bailout we know we need to regulate them I you know what I you know I also want
577
00:54:41.800 --> 00:54:50.520
to lend the hand of like hey come learn about this to us senators I don't trust it like I don't
578
00:54:50.520 --> 00:54:59.080
know but like I just want them to know that this open finance thing is not a way to escape like regulation
579
00:54:59.080 --> 00:55:05.160
like you know this brings me to maybe the Gary Gensler letter and we should talk about this
580
00:55:05.800 --> 00:55:12.040
you know for a minute but like so Gary Gensler put out a so he's the new SEC chair
581
00:55:12.040 --> 00:55:18.600
and he put out a new a letter and I think this was a speech given at the Aspen security forum
582
00:55:18.600 --> 00:55:24.840
and there are some concerning things in here you know one of the things he said that that stuck
583
00:55:24.840 --> 00:55:31.800
with me is that some people in crypto are trying to shirk the legal system and that is the reason
584
00:55:31.800 --> 00:55:38.040
why they use crypto like David I don't see very much of that at all like that just we're not trying
585
00:55:38.040 --> 00:55:43.880
to shirk the legal system in crypto we're trying to shirk the shitty banking system that we have in
586
00:55:43.880 --> 00:55:51.880
place like if the banking system was better and if it was if it was digital if it had the features
587
00:55:51.880 --> 00:55:57.640
that crypto had like we would be using the banking system right it's because the banking system
588
00:55:57.640 --> 00:56:03.320
failed that this bottom up movement is happening that's that's one thing that stuck out for me
589
00:56:03.320 --> 00:56:07.160
from this letter but what are some of the other things for for you David one point that I'll make
590
00:56:07.160 --> 00:56:14.200
on that is like one of the reasons why there's this inherent like like tie to to being anti-regulation
591
00:56:14.200 --> 00:56:20.600
is that banks the incumbents are making the regulations to protect themselves and so if we want
592
00:56:20.600 --> 00:56:25.000
to be anti-regulation we don't want to be anti-regulation we want to be anti-banks we're just
593
00:56:25.000 --> 00:56:30.200
frustrated that banks are buying regulations that they want that protect them and so who do you
594
00:56:30.200 --> 00:56:33.880
think they turn everything into banks they turn everything into banks they they take away our
595
00:56:33.880 --> 00:56:39.320
individualism they take away our self-sovereignty and then they just extort us that's the natural
596
00:56:39.320 --> 00:56:44.760
organic pattern of banks over the centuries and that's what we want to get away from and so let's
597
00:56:44.760 --> 00:56:50.200
make good crypto regulation happening this and this was my last rant on the last weekly roll-up
598
00:56:50.280 --> 00:56:57.320
is that we the crypto industry would love fantastic good precise clean regulation please
599
00:56:57.320 --> 00:57:03.080
provide that regulate us in an educated fashion so you can come get your tax money but if you come
600
00:57:03.080 --> 00:57:08.520
and regulate us by saying that any wallet provider or any node is a is a broker and needs to
601
00:57:08.520 --> 00:57:12.760
provide information you're not going to get any tax money because it's nonsensical and you're
602
00:57:12.760 --> 00:57:17.480
just going to effort up and then there's going to be resistance so we should shake hands we should
603
00:57:17.480 --> 00:57:21.560
rally behind people like Jake Chervinsky and the other lawyers in this space who are informing
604
00:57:21.560 --> 00:57:26.440
regulators about how to properly do this so that the regulators can get the tax money from this
605
00:57:26.440 --> 00:57:30.680
industry that they want to pay for the infrastructure bill just do it right rather than come in heavy
606
00:57:30.680 --> 00:57:36.120
handed I think the mistake that that this tax bill made was thinking that like the crypto people
607
00:57:36.120 --> 00:57:40.120
are just like this corner of the internet they don't care about society they don't care about
608
00:57:40.120 --> 00:57:44.520
government and we'll just tax them just because we can and we'll bully them like oh no wrong
609
00:57:44.520 --> 00:57:48.840
crypto people are some of the most and like politically engaged people on this planet because
610
00:57:48.840 --> 00:57:52.360
people think that this is a money of revolution and money in finance and it totally is but this
611
00:57:52.360 --> 00:57:57.480
is also a political revolution these are all political people in this industry social revolution
612
00:57:57.480 --> 00:58:01.080
we're fighting for hearts and minds here and I think the big question with this Gary Gensler
613
00:58:01.080 --> 00:58:07.000
letter is like he's the new SEC chair taking over from Jake Clayton the question is is he crypto
614
00:58:07.000 --> 00:58:11.960
friendly or not so there's some takes around the crypto universe on the back of this letter like
615
00:58:11.960 --> 00:58:18.680
he mentioned uh uh Gary Gensler mentioned that he agrees with the previous SEC chair that
616
00:58:18.680 --> 00:58:25.640
most ICOs he said in the letter are probably securities right so that was one point that stuck out
617
00:58:25.640 --> 00:58:30.840
there are a few other points here but here's a take from Nick Carter somebody asked him like
618
00:58:30.840 --> 00:58:36.200
what's your explanation like how do you what what do you think of this letter and he said it's not
619
00:58:36.200 --> 00:58:41.640
clear that the SEC can actually fulfill its agenda given current resources but at minimum
620
00:58:41.640 --> 00:58:48.760
a crackdown on exchanges both onshore and offshore might be coming this is sort of what he took
621
00:58:48.760 --> 00:58:56.200
from Gary Gensler's letter he also said Gary Gensler it seemed was expressing a need for
622
00:58:56.200 --> 00:59:01.400
additional legislation so it could be the case that the SEC actually doesn't have the power or
623
00:59:01.400 --> 00:59:07.400
authority to do some of the things that that Gary Gensler is suggesting but there were some more
624
00:59:07.400 --> 00:59:14.360
upbeat takes here even so this is a take from a you know crypto twitter lawyer Preston burn
625
00:59:14.360 --> 00:59:18.600
what did what did Preston think about this yeah and this I've heard this sentiment echoed by
626
00:59:18.600 --> 00:59:22.440
other lawyers as well is that Preston said that Gensler's speech today was straight down the middle
627
00:59:22.440 --> 00:59:27.800
and entirely consistent with what more conservative legal advice in this space has been for years
628
00:59:27.800 --> 00:59:33.240
this guy at the top 100% understand script oh we knew that and and Preston finishes saying I
629
00:59:33.240 --> 00:59:38.520
think this is actually bullish for prospects like big the Bitcoin ETF and so if you were what
630
00:59:38.520 --> 00:59:42.440
he's saying is that there has been generally like more conservative legal advice in this space
631
00:59:42.440 --> 00:59:47.000
and if you were following that legal advice than Gary Gensler's not doing anything unexpected for
632
00:59:47.000 --> 00:59:52.840
you and so like no erratic ICOs like you know know your customers don't sell the US investors
633
00:59:52.840 --> 00:59:57.720
sadly and but then I think the take here is that Gary Gensler he's going to be a stickler he's
634
00:59:57.720 --> 01:00:02.360
going to be strict it's going to be a bit of a hard ass and he's going to let this industry progress
635
01:00:02.360 --> 01:00:08.040
forward at the same time which fine well I'll I'll take it I'll take it yeah it's definitely not
636
01:00:08.040 --> 01:00:14.920
the worst it could be for sure this is a headline in in Bloomberg saying Gensler signals pathway
637
01:00:14.920 --> 01:00:21.240
for a Bitcoin ETF with tough rules this is from partially from his speech and I think the key clip
638
01:00:21.240 --> 01:00:28.360
here is this Gensler is hinting that he'd like to see a filing this is an ETF filing all of the
639
01:00:28.360 --> 01:00:34.040
previous ETF filings have been denied for a Bitcoin ETF but he's hinting he'd like to see a filing
640
01:00:34.040 --> 01:00:40.840
that seeks approval through a 1940s law that governs mutual funds most of the pending applications
641
01:00:40.840 --> 01:00:46.280
have been filed under 1930s law it's back to your point about like being a stickler right like it's
642
01:00:46.280 --> 01:00:51.560
like hey if you fill out the right forms and you do it the right way then I'll give it to you
643
01:00:51.560 --> 01:00:57.080
but you have to do it the right way right this is maybe the signal that he's sending to crypto
644
01:00:57.080 --> 01:01:02.440
in addition to the signal of like I want more legislation in this space unless he gets the
645
01:01:02.440 --> 01:01:07.960
legislation I'm not sure how much more the SEC is going to be able to do right and I think
646
01:01:08.440 --> 01:01:13.800
another very telling comment towards the bottom of this article is he says we don't have enough
647
01:01:13.800 --> 01:01:18.840
investor protection in crypto Gary Gensler said it's more like the Wild West and this definitely
648
01:01:18.840 --> 01:01:24.040
shows you the difference in mindset and disposition of people in crypto because he's saying this
649
01:01:24.040 --> 01:01:28.600
it's more like the Wild West as if it's a bad thing and Ryan you finish off every single
650
01:01:28.600 --> 01:01:33.960
bankless episode is we are heading west it's not for everyone but we are glad you are with us
651
01:01:33.960 --> 01:01:39.160
on the bankless journey and so kind of yes we don't have enough investor protection in crypto
652
01:01:39.160 --> 01:01:43.640
to sometime sometimes to some people when you say the words investor protection we hear incumbent
653
01:01:43.640 --> 01:01:50.680
protection not investor protection exactly it exactly it and we like the Wild West it's fun out
654
01:01:50.760 --> 01:01:57.000
here there's 10,000 x gains and red pulls who knows what comes next but we're here for it because
655
01:01:57.000 --> 01:02:02.280
we're self-sovereign and we're individuals in control of our own money it is the Wild West but
656
01:02:02.280 --> 01:02:07.160
we do have an investor protection that they don't see they think investor protection means like
657
01:02:08.040 --> 01:02:14.840
like regulatory action and new legal codes right like investor protection is an open source
658
01:02:14.840 --> 01:02:19.720
transparent financial system where you can view source in every asset you can see exactly
659
01:02:19.800 --> 01:02:25.080
what's inside of it that's investor protection right so yeah it's the Wild West but you know what
660
01:02:25.080 --> 01:02:32.360
I'll take that over the closed like financial system where I have no idea how the money is moving
661
01:02:32.360 --> 01:02:37.320
right like this is all open this is transparent that is our investor protection I wish they
662
01:02:37.320 --> 01:02:41.800
would acknowledge that more in some of these statements you know Senator Warren and even Gary
663
01:02:41.800 --> 01:02:47.720
Gensler's like take some of the good like that is coming out of this system we've built a more
664
01:02:47.800 --> 01:02:52.760
transparent financial system from the ground up and regulators again should be falling over
665
01:02:52.760 --> 01:02:57.080
themselves in support of a system like this it's going to make their jobs easier you know what the
666
01:02:57.080 --> 01:03:03.560
best investor investor protections are is is financial services built by code where no one is
667
01:03:03.560 --> 01:03:09.400
allowed to break the rules and so that code is enforced equally transparently across everyone
668
01:03:09.400 --> 01:03:14.520
and so there's no at the whole point about a theorem is that no one is the admin everyone
669
01:03:14.520 --> 01:03:20.120
is a user everyone is treated equally everyone can audit the code that is the best investor
670
01:03:20.120 --> 01:03:26.680
protections that money can buy it's code protecting like investor protections is a human to human
671
01:03:26.680 --> 01:03:31.160
thing where like oh there's like privileged information somebody has somebody like big wealthy
672
01:03:31.160 --> 01:03:35.000
whale has privileged information entices a lot of retail people and then and then rug pulls them
673
01:03:35.000 --> 01:03:40.520
and takes all their money in code if we can enforce that against that and I've never been rug
674
01:03:40.520 --> 01:03:46.040
pulled I've stuck to the the major defi apps like compound maker and on a I've never been rug
675
01:03:46.040 --> 01:03:52.920
pulled code has protected me from rug pulls and also my own due diligence and so to some degree
676
01:03:52.920 --> 01:03:57.640
like there's going to be the same tricks in every single financial market and we need to avoid
677
01:03:57.640 --> 01:04:03.320
scammers and fraudsters and all that but the lack of appreciation for the fact that code is protecting
678
01:04:03.320 --> 01:04:09.800
all of us is frustrating and but I also understand that's a complicated subject yeah I agree all right
679
01:04:09.800 --> 01:04:14.120
so that's what the take the U.S. is is taking right now it's a little bit of this a little bit of
680
01:04:14.120 --> 01:04:20.360
that some vitriol against crypto maybe some support kind of wishy washi definitely not a policy
681
01:04:20.360 --> 01:04:26.920
towards crypto yet but China definitely has a policy to crypto and that's I want crypto out of here
682
01:04:26.920 --> 01:04:31.480
we want crypto outside of our borders they've been putting pressure on minors on exchanges we've
683
01:04:31.480 --> 01:04:37.960
talked about that in in the past and they say the PBOC that's the people's Bank of China saying
684
01:04:37.960 --> 01:04:43.000
it's going to continue to keep high pressure on crypto trading David I just want to highlight
685
01:04:43.000 --> 01:04:47.800
our podcast that's coming out on Monday it's already available if you are a bankless premium
686
01:04:47.800 --> 01:04:53.400
member you can listen this podcast now we recorded it last week this is with a gentleman by the name
687
01:04:53.400 --> 01:04:59.000
of Richard Turin who wrote a book called cashless all about what China is doing their plans for
688
01:04:59.000 --> 01:05:03.640
digital currency a digital currency revolution as he calls it in China and something that's
689
01:05:03.640 --> 01:05:09.480
interesting that I learned from this book and from the podcast is that China's digital currency
690
01:05:09.480 --> 01:05:16.680
strategy is explicitly a deterrent against crypto currency okay they don't want capital flight
691
01:05:16.680 --> 01:05:23.560
they don't want a free money system that is outside of the PBOC's control inside of their borders
692
01:05:23.560 --> 01:05:31.480
so in addition to pushing it out they're actually trying to build a controlled centralized
693
01:05:31.480 --> 01:05:38.200
crypto alternative this is the China central the bank digital currency essentially it's
694
01:05:38.200 --> 01:05:45.080
explicitly part of their strategy instead of like not replacing it with you know they're replacing
695
01:05:45.080 --> 01:05:50.120
all of the crypto stuff with something that looks a little bit like crypto is digital in the same
696
01:05:50.120 --> 01:05:54.360
way but it's completely controlled and centralized that's their approach and it's a pretty smart
697
01:05:54.360 --> 01:06:00.680
approach if you are a you know centralized a you know authoritarian kind of power and you want to
698
01:06:00.680 --> 01:06:06.520
go down this route so anyway I opening podcasts fantastic podcasts I think we need to learn about
699
01:06:06.520 --> 01:06:13.720
China's approach because it's going to make waves in terms of what the US does next as well and
700
01:06:13.720 --> 01:06:18.280
it's going to be pretty important to the world yeah I can't recommend this podcast enough it opened
701
01:06:18.280 --> 01:06:23.560
my eyes to what really the true story is behind the China Chinese central bank digital currency and
702
01:06:23.560 --> 01:06:28.440
if you thought the last section made you like question a regulators competency about how to
703
01:06:28.440 --> 01:06:36.280
approach DeFi listening to this will make you question it even more yes how is all over it China's
704
01:06:36.280 --> 01:06:41.640
all over the central bank digital currency the recently the there was a I can't remember what it was
705
01:06:41.640 --> 01:06:45.880
but their contracts dude yeah they have smart contracts coming and meanwhile like not too long ago
706
01:06:45.880 --> 01:06:51.880
there was like a US banking regulations panel that talked that was headlined crypto currencies what
707
01:06:51.880 --> 01:06:57.480
are they even good for meanwhile China saw crypto and applied it to the central bank digital currency
708
01:06:57.560 --> 01:07:01.960
and is releasing one of the most powerful forces that this world has ever seen in decades
709
01:07:02.680 --> 01:07:08.920
as in the east and then meanwhile in the west people are questioning if if crypto is even useful
710
01:07:08.920 --> 01:07:13.960
is it just a fad and then just allocating like terrible regulation to it when they when they have
711
01:07:13.960 --> 01:07:21.560
forced themselves into a corner where their only option is to leverage DeFi in do combat Chinese
712
01:07:21.560 --> 01:07:25.720
bank digital currency I need to stop we're also going to explode well look man this is what happens
713
01:07:25.720 --> 01:07:31.240
when your average center is 65 years old right is exactly what it's nice nice um all right let's
714
01:07:31.240 --> 01:07:36.920
move on David so we got to burn through this all right well front is offering grayscale bitcoin
715
01:07:36.920 --> 01:07:42.200
trust that is a robo lender well front a lot of people use pretty cool to see them doing that
716
01:07:42.200 --> 01:07:49.320
as continuation of the story also Germany institutions they are allowed to hold I think up to 20
717
01:07:49.320 --> 01:07:54.680
million in crypto now so Germany is coming down the pike with some crypto friendly regulation
718
01:07:54.680 --> 01:08:00.680
legislation it's kind of cool you want to get this last one David yeah Richard no excuse me
719
01:08:00.680 --> 01:08:07.480
Ricardo Spagney the one of the original members of Manero not the OG Manero person because that's
720
01:08:07.480 --> 01:08:13.480
a very interesting story was actually arrested for things unrelated to crypto apparently defrauded
721
01:08:13.480 --> 01:08:19.160
a company in South Africa and was extradited to South Africa so basically he's considered basically
722
01:08:19.160 --> 01:08:22.920
the founder of Manero even on the technically inaccurate got arrested for unrelated to crypto
723
01:08:22.920 --> 01:08:27.080
reasons which is an interesting side quest of a story look there's still some shady people in
724
01:08:27.080 --> 01:08:32.600
crypto definitely have to acknowledge that for the regulators listing in here okay guys we're
725
01:08:32.600 --> 01:08:35.960
going to get to the takes in just a minute but before we do we want to thank the sponsors that
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all right guys and we are back into the ecosystem takes that have come out in the last week this
758
01:11:26.360 --> 01:11:30.600
one comes from Eric Conner who has a bunch of screenshots from a different Bitcoin Maxis and he
759
01:11:30.600 --> 01:11:36.680
says the bitcoin community has gotten so pathetic that they have actively begged regulators to
760
01:11:36.680 --> 01:11:41.880
classify eth as a security this has been going on for four years and then he has some examples
761
01:11:41.880 --> 01:11:46.920
and so he has some examples of you know some of the most like maximalist of the max bitcoin maxi
762
01:11:46.920 --> 01:11:55.400
camp samson mow from block stream Neil Jacobs Pierce Pierce came in for his last name talking
763
01:11:55.400 --> 01:12:00.600
all about how ether is a security and making jokes about how ethers are security and then asking
764
01:12:00.600 --> 01:12:05.640
Gary Gensler to classify eth as a security and i want the listeners to and here's why i feel so
765
01:12:05.640 --> 01:12:09.960
passionate about this i want the listeners to think about it the SEC is supposed to protect
766
01:12:10.680 --> 01:12:17.240
protect individuals investor protections who is protected if ether gets classified as a security
767
01:12:17.240 --> 01:12:22.920
or is if ether gets protect classified as a security is this just bitcoin maxi
768
01:12:22.920 --> 01:12:28.680
less being really happy that the second largest biggest threat to bitcoin is being classified as
769
01:12:28.680 --> 01:12:33.960
a security like who is it are they do they care about investor protections or are they trying to
770
01:12:34.040 --> 01:12:39.240
like you know cope with the fact that a theorem is extremely successful and so i really just want
771
01:12:39.240 --> 01:12:44.280
to shame on bitcoin maxis who are trying to protect their own bags by begging Gary Gensler to
772
01:12:44.280 --> 01:12:49.400
classify ether as a security when they should be talking focusing on themselves focusing on their own
773
01:12:49.400 --> 01:12:54.120
merits focusing on their own blockchain rather than looking over the fence and being jealous about
774
01:12:54.120 --> 01:12:58.760
all the cool things happening on a theorem and they get jealous about it and so they beg Gary Gensler
775
01:12:58.760 --> 01:13:03.080
to classify eth as a security because they're insecure about their bags that's my take about
776
01:13:03.080 --> 01:13:08.680
ariks take about the bitcoin maxi takes yeah and ultimately like i i would just say like it doesn't
777
01:13:08.680 --> 01:13:15.560
really matter what they think right they don't get this embarrassing this the cftc chair also pushed
778
01:13:15.560 --> 01:13:19.960
pushed back in general and this is partially in response to i think Gary Gensler's comments about
779
01:13:20.760 --> 01:13:27.240
certain iCOs being securities and he said hey like many cryptos are actually commodities and
780
01:13:28.120 --> 01:13:33.880
that cc has no jurisdiction over the things that are commodities bitcoin is a commodity cftc is
781
01:13:33.880 --> 01:13:40.200
set as much so as ether the cftc is as set as much so i'm not even sure why this is a conversation
782
01:13:40.200 --> 01:13:46.600
like maybe you could have this conversation in certainly 2015 2016 maybe 2017 but like
783
01:13:47.240 --> 01:13:55.160
this conversation has already been had right like it's over it's done the cftc you know are the
784
01:13:55.720 --> 01:14:02.520
regulators for ether the asset and bitcoin maxi don't get to decide so it just seems like a bunch of
785
01:14:02.520 --> 01:14:09.240
cope and i don't know man massive cope massive cope this is a stand samson mow is the guy behind
786
01:14:09.240 --> 01:14:14.440
liquid which is basically trying to be the ethereum version of bitcoin as a sidechain which is
787
01:14:14.440 --> 01:14:18.920
already just compromised on the values but like big big corners are known for being the the
788
01:14:19.560 --> 01:14:25.640
the crypt the cipher punks who are very anti regulation extreme like extremely nation state they're
789
01:14:25.640 --> 01:14:29.480
one of the anti nation state there's one of the reasons why this whole entire industry has that
790
01:14:29.480 --> 01:14:33.800
branding in the first place even though i don't agree with it yet they are begging the nation state
791
01:14:33.800 --> 01:14:40.120
to protect their incumbent investments by classifying eth as a security to me it's no different than
792
01:14:40.120 --> 01:14:46.360
the bankers having like regulation against like the same against our industry trying to protect them
793
01:14:46.360 --> 01:14:50.600
the bitcoin maxi's just trying to do it for their own purposes it's just embarrassing it's a
794
01:14:50.600 --> 01:14:54.840
compromise on their values compromise on their ethos and it's just a bad look for the space
795
01:14:55.800 --> 01:15:02.040
yeah i agree ultimately won't amounts anything yep i agree it's a bad look uh david let's let's take
796
01:15:02.040 --> 01:15:06.920
Jeff dormans takes what's his take away from everything that's going on so all of the news he
797
01:15:06.920 --> 01:15:12.600
said his internal slack is blowing up with tons of positive information about crypto but also
798
01:15:12.600 --> 01:15:17.960
negative information about crypto what's his take away david yeah care uh Jeff dorman we had him
799
01:15:17.960 --> 01:15:22.280
on to talk about uh coin base when coin base wouldn't public that was a fantastic episode his take
800
01:15:22.280 --> 01:15:28.600
away is that doesn't matter positive negative news every single news outlet and investor in the world
801
01:15:28.600 --> 01:15:33.720
is not now talking about digital assets every single day and he finishes this is up with betting
802
01:15:33.720 --> 01:15:38.760
against growth from here it would be insane and so this is why i've been saying like regulation
803
01:15:38.760 --> 01:15:43.800
it's finally here and it's bullish it doesn't matter what it is good regulation bad regulation
804
01:15:43.800 --> 01:15:48.680
we prefer good regulation it's bullish either way just because the attention is on the space
805
01:15:48.680 --> 01:15:53.880
they're not ignoring crypto any longer they're forced to reckon with it and that is bullish for
806
01:15:53.880 --> 01:15:59.640
the space for sure um let's do this take it's kind of a regulatory take i suppose but this is from
807
01:15:59.640 --> 01:16:06.040
just a young finance futures trading not allowed in germany in italy is one of the biggest
808
01:16:06.040 --> 01:16:11.800
advertisements for defy this year i could not agree more that finance squeeze we've been talking
809
01:16:11.800 --> 01:16:17.400
about right or finance has to delist assets uh is not available in certain countries that's just
810
01:16:17.400 --> 01:16:23.560
pointing the world to defy this is why we need defy we need something that is outside of the borders
811
01:16:23.560 --> 01:16:29.800
of a nation state that doesn't have a geographic jurisdiction or a geographic location that's just
812
01:16:29.880 --> 01:16:36.120
public freely available to anyone with an internet connection huge advertisement for defy
813
01:16:36.120 --> 01:16:41.320
and this also largely impacts finance smart chain just as well because the only on ramp to
814
01:16:41.320 --> 01:16:46.040
finance smart chain is through finance and so finance gets restricted finance smart chain gets
815
01:16:46.040 --> 01:16:50.680
restricted which is why we were always harping on finance smart chain in the first place because it's
816
01:16:50.680 --> 01:16:56.280
just of masquerading as decentralized even though it's actually not yep absolutely uh let's see
817
01:16:56.360 --> 01:17:01.560
this next take this is from tasha she has a whole thread about this i just thought it was a fantastic
818
01:17:01.560 --> 01:17:07.560
thread um and the crux of it is this maybe i'll read the first a twitter so the us is in big trouble
819
01:17:07.560 --> 01:17:13.560
with twin deficits and high debt we know that but few realize that fed issue digital currency us
820
01:17:13.560 --> 01:17:21.000
detoken can change the fate of america how she says grab a coffee and read on do not have time
821
01:17:21.000 --> 01:17:26.280
to read the entire thread but she makes the case that actually the biggest export from the us
822
01:17:26.280 --> 01:17:32.040
is not technology exports not a manufacturing export it's not like military arms dealing you
823
01:17:32.040 --> 01:17:39.080
know the biggest export is david a dollar the us dollar that's what the us is exporting to the world
824
01:17:39.080 --> 01:17:45.560
right now everybody wants the us dollar right now that's not necessarily a long term product
825
01:17:45.560 --> 01:17:52.600
so tasha says we might have like 15 to 20 years or so left to go on the us dollars reserve currency
826
01:17:52.600 --> 01:17:58.760
status but she said we the us should use that uh well well it well it can essentially and create
827
01:17:58.760 --> 01:18:04.920
it central bank digital currency of some some sort support crypto in some way and export this to
828
01:18:04.920 --> 01:18:10.520
the world to stay ahead if they don't per previous conversation man china will and they're in
829
01:18:10.520 --> 01:18:16.120
it to win it us has this asset why not use it uh they absolutely should i thought it's a brilliant
830
01:18:16.120 --> 01:18:21.800
take will include that thread in the in the show notes here the TLDR is that the american empire has
831
01:18:21.800 --> 01:18:28.360
its interests and it can use crypto to leverage those interests rather than fighting it and if it
832
01:18:28.360 --> 01:18:34.600
does choose to fight it is just going to hasten its own demise absolutely um all right david oh this
833
01:18:34.600 --> 01:18:39.480
is a good one yeah i thought this is like so we've been talking about eip 1559 by the way david how
834
01:18:39.560 --> 01:18:45.720
how much we burnt since the the start of this recording well you're looking that up i think eip 1559
835
01:18:45.720 --> 01:18:54.120
i said this uh is the ultimate jujitsu move for ethereum why because in order to copy it competitors
836
01:18:54.120 --> 01:18:59.560
have to get the one thing they've never had and that is actual block space demand david so you can't
837
01:18:59.560 --> 01:19:05.560
copy and paste this eip 1559 feature like sure you can start burning some of your transaction fees
838
01:19:05.560 --> 01:19:10.840
but you have to have transaction fees to burn in order for it to be meaningful now you're about
839
01:19:10.840 --> 01:19:15.000
to tell me the the number of eth that were that has been burnt since the beginning of this episode how
840
01:19:15.000 --> 01:19:21.560
much is it yes uh i'm gonna say it was eight hundred and eighty since when since we last talked i
841
01:19:21.560 --> 01:19:26.520
believe how much how much do you think is that now we're i think okay so i said two hundred well
842
01:19:26.520 --> 01:19:31.160
nine hundred and fifty how about that so gas prices have jumped significantly since then gas
843
01:19:31.160 --> 01:19:35.720
prices currently two hundred and seventy seven so something's going on yikes well and the most
844
01:19:35.720 --> 01:19:42.520
recent block that just got mine burned five ether we are at fifteen fifteen hundred ether we are at
845
01:19:42.520 --> 01:19:46.840
fifteen hundred ether what happened for the last few i don't know something's going on something's
846
01:19:46.840 --> 01:19:53.080
going on check the price and if teed yeah holy shit like is it up or down i have no clue but yeah
847
01:19:53.080 --> 01:19:57.720
uh for the last like ten twenty all the block all the blocks that i can see right now have burned
848
01:19:57.880 --> 01:20:03.640
more ether than issued that's insane that's insane what i don't know what's going on but bullish bullish
849
01:20:03.640 --> 01:20:08.280
okay i mean and and here's the thing that's not the price price is stable the thing that's impossible
850
01:20:08.280 --> 01:20:12.760
to emulate and the reason why this is a gigancy move for a theorem versus all ethikiller's other
851
01:20:12.760 --> 01:20:19.240
competitors is ethereum's biggest strength blocks based demand people will pay to get a transaction
852
01:20:19.240 --> 01:20:24.440
in and they've been building this for the last five or six years it's already flippant a bitcoin
853
01:20:24.440 --> 01:20:30.600
by far on that count um you like no other chain is even close in terms of transaction volume right
854
01:20:30.600 --> 01:20:37.720
like in terms of block space uh revenue or demand um ethereum is the only chain that can essentially pull
855
01:20:37.720 --> 01:20:45.560
off eip fifteen five nine and lose it and pump it into it's uh it's asset so dude game set match
856
01:20:45.560 --> 01:20:49.880
right i mean like you got to work hard and get that block space demand that's how you compete against
857
01:20:49.880 --> 01:20:53.720
uh ethereum if you want to do that yeah the the avalanche community has always been teasing a
858
01:20:53.720 --> 01:20:58.680
theory about how they implemented eip one five five nine on avalanche like nine months ago
859
01:20:58.680 --> 01:21:02.840
and in the first three hours of eip one five five nine going live on ethereum
860
01:21:03.640 --> 01:21:09.400
ethmore ether was burned then in all of nine months of avalanches eip one five five nine being live
861
01:21:09.400 --> 01:21:14.200
right and so like cool you guys got it first but like when as it takes two seconds for us to catch
862
01:21:14.200 --> 01:21:18.760
up with you once it goes live and that's the power of block space demand you got to put the hard
863
01:21:18.760 --> 01:21:23.800
work in and the hard work is block space demand uh so get there let's let's see this last take
864
01:21:23.800 --> 01:21:29.560
from hasu david once you read it out yeah hasu says success is a muscle every important upgrade that
865
01:21:29.560 --> 01:21:34.120
ethereum has successfully merged the beacon chain now eip one five five nine increases the
866
01:21:34.120 --> 01:21:39.240
chance that future important upgrades the merge charting block proposer slash builder separation
867
01:21:39.240 --> 01:21:45.080
will also be successful another way of framing it eth prices in a ton of execution risk i know
868
01:21:45.160 --> 01:21:49.880
because i was that was a big part of my own thesis every milestone makes that execution risk go
869
01:21:49.880 --> 01:21:54.760
down this is what we have been saying on bankless forever if you're cool with execution risk buy
870
01:21:54.760 --> 01:22:01.160
eth early but every time we successfully hard fork that execution risk goes down right and so you
871
01:22:01.160 --> 01:22:06.680
should plan for that accordingly in your valuation of ether and honestly at this point with the
872
01:22:06.680 --> 01:22:12.440
the beacon chain behind us in eip one five five nine behind us two very complicated updates in the
873
01:22:12.440 --> 01:22:18.360
rear view mirror the last major update is the merge and like maybe charting but like not that major
874
01:22:18.360 --> 01:22:24.280
in very distant off into the future like how much execution risk is left before people fomo and maybe
875
01:22:24.280 --> 01:22:29.480
that's why people have been definitely fomoing into ether right after eip one five five nine went
876
01:22:29.480 --> 01:22:36.920
live and ether went from 26 to 2800 in just a an hour or so success as a muscle ethereum is proven
877
01:22:36.920 --> 01:22:42.360
out that it executes upon its roadmap maybe late but it does execute and so betting against the
878
01:22:42.360 --> 01:22:47.800
ethereum at this point is just completely irrational again in my opinion in my there you go got
879
01:22:47.800 --> 01:22:54.840
nothing ad david what's exciting this week for you eip one five five nine sir i would like to go
880
01:22:54.840 --> 01:22:59.880
back two years and say like there was there was a time where eip one five five nine got introduced
881
01:22:59.880 --> 01:23:06.520
a few people like latched on to it you me anthony sazano air Connor who introduced it dc investor
882
01:23:06.520 --> 01:23:11.960
few others they all saw the power in this we all like road articles we made podcasts we tweeted
883
01:23:11.960 --> 01:23:17.320
about it we tried to do our best to shout from the rooftops like this is coming and now it's
884
01:23:17.320 --> 01:23:23.800
finally here which makes me feel really good is one important step forward to ether as ultra sound
885
01:23:23.800 --> 01:23:28.520
money and what really excites me that's specific and nuance other than just saying eip one five five
886
01:23:28.520 --> 01:23:35.160
nine is here is that eip one five nine has so much metric surface area that are so many new metrics
887
01:23:35.160 --> 01:23:40.360
that have come alive now that eip one five five nine is here ethburn rate the base fee the tip
888
01:23:40.360 --> 01:23:46.360
amounts like block the the how full the block is there's so many things and numbers and variables
889
01:23:46.360 --> 01:23:52.920
to talk about and honestly like what gives more people more confidence in in an unknown asset are
890
01:23:52.920 --> 01:23:58.520
like numbers and metrics to like consume and analyze and discuss and not only that it gives new
891
01:23:58.520 --> 01:24:02.600
people confidence it gives older people like us more things to talk about this is what i said
892
01:24:02.600 --> 01:24:06.760
earlier there's so many more metrics that we get to talk about on the weekly roll-up so like we're
893
01:24:06.760 --> 01:24:10.920
going to go back and like talk about how much eth is burn is probably going to be part of the
894
01:24:10.920 --> 01:24:16.040
the every single week since we last talked about how much eth was burned we're burned 70 more
895
01:24:16.040 --> 01:24:23.880
eth so that's pretty cool and so all of these metrics are legitimizing in of themselves even though
896
01:24:23.880 --> 01:24:28.040
we literally invented them out of thin air like we just the industry invented this thing called
897
01:24:28.040 --> 01:24:32.920
crypto economics ethereum invented this thing called eip one five five nine now we've invented
898
01:24:32.920 --> 01:24:37.160
this metric called ethburn rate and now because we get to talk about it it's legitimizing it's a
899
01:24:37.160 --> 01:24:42.120
cool people get to talk about it i can't i can't wait to read all about it in Goldman Sachs next
900
01:24:42.120 --> 01:24:46.920
white paper on why you should invest in e we see burn metrics right in these in these like analyst
901
01:24:46.920 --> 01:24:52.040
papers now super cool yeah right i think i have a guess what you're excited about why don't you tell me
902
01:24:52.280 --> 01:24:58.760
look man it's got to be eip 1559 really eip 1559 roll-up and i'm just going to riff on what you said
903
01:24:58.760 --> 01:25:08.200
i feel like you know coming off of the the 2017 uh 2018 crash right um like everyone i think a lot
904
01:25:08.200 --> 01:25:13.560
of people have recognized that the ethereum network was amazing and there was this whole mantra
905
01:25:13.560 --> 01:25:19.560
of ethereum not eth like ethereum the network is amazing ethiasat who cares that thing sucks
906
01:25:19.640 --> 01:25:23.800
by bitcoin instead just a means to an end and like some of us
907
01:25:24.600 --> 01:25:32.120
felt like that was a massive mistake right like a like it didn't even make sense doesn't make
908
01:25:32.120 --> 01:25:39.000
economic sense if you are striving to become a strong highly secure economic network you need the
909
01:25:39.000 --> 01:25:44.440
price of eth to reflect that as well that's where you get your economic security and so we pushed
910
01:25:44.440 --> 01:25:50.280
back against that um i think there was this concept david you remember of economic abstraction right
911
01:25:50.280 --> 01:25:55.080
the idea that we don't even need eth to even pay for minors why is it even there it can collapse to
912
01:25:55.080 --> 01:26:00.920
basically zero and no one would care we can use stablecoin or maybe bitcoin to pay minors we pushed
913
01:26:00.920 --> 01:26:08.600
against that well now we no longer have economic abstraction like i think we've never had it in reality
914
01:26:08.600 --> 01:26:15.080
but the protocol has enshrined you know what's the uh opposite of you know abstraction like
915
01:26:15.080 --> 01:26:20.840
concreteness yeah now the economic concreteness of eth the asset i don't think that means
916
01:26:20.840 --> 01:26:25.960
plastic i don't think it's going to stick either but like that's what we have and this is um
917
01:26:26.920 --> 01:26:32.040
this is really exciting because i think there's been a renewed emphasis at the protocol level on eth
918
01:26:32.040 --> 01:26:39.720
the asset that we've been pushing for since uh 2018 2019 2020 2021 now it's here it's being baked
919
01:26:39.720 --> 01:26:44.920
into the protocol and it's just super exciting to see and like this is why it's important is because
920
01:26:44.920 --> 01:26:50.600
the endgame we want to build a bankless open financial system for everyone uh and in order to do
921
01:26:50.600 --> 01:26:56.600
that we need high security right we need uh the economic bandwidth to support all of the world's
922
01:26:56.600 --> 01:27:02.200
assets all of the world's transactions and uh man that shinken armor that ethad we're ahead of
923
01:27:02.200 --> 01:27:08.680
great network didn't have a great asset completely like equalizing here right now you got the you
924
01:27:08.680 --> 01:27:13.640
got the yin in the a you got a great network you also have a fantastic asset and people are starting
925
01:27:13.640 --> 01:27:17.480
to realize that and i think they'll realize it more as those metrics are going to be displayed
926
01:27:17.480 --> 01:27:22.200
everywhere and we're going to keep refreshing those burn pages to see how much eth that we're
927
01:27:22.200 --> 01:27:27.160
going to birch and then it's onward towards the merge that's the next live stream we're doing David
928
01:27:27.960 --> 01:27:32.200
in the live stream this morning last question for you uh did you hear the dates what did like the
929
01:27:32.200 --> 01:27:38.040
anticipated dates for the eth to merge and the end of proof of work what do you think that's going
930
01:27:38.040 --> 01:27:43.960
to be yeah Justin Drake who's uh famous for giving out dates a little bit ahead of consensus said
931
01:27:43.960 --> 01:27:49.480
q1 2022 which is the date i've been giving out more or less if we hit it in q1 2022 that would be
932
01:27:49.560 --> 01:27:55.800
actually well the first uh hard fork that we actually got on schedule for some reason maybe i'm
933
01:27:55.800 --> 01:28:02.520
naive i actually believe in it um so q1 2022 all right you know i thought uh we had a good shot of
934
01:28:02.520 --> 01:28:08.840
hitting july uh for eip 1559 and that was like some early estimate like two months off so still
935
01:28:08.840 --> 01:28:14.600
pretty close right and i think this is going to be if it's not q1 2022 it's got to be q2 right
936
01:28:14.600 --> 01:28:19.000
it's going to be really close to q1 anyway just like jazzy who said success is a muscle and now
937
01:28:19.000 --> 01:28:23.240
our core developers are getting better and better and better at hitting hard fork deadlines
938
01:28:23.240 --> 01:28:27.080
yeah totally even though there's not there's not there's on a deadline but like not delaying too much
939
01:28:27.800 --> 01:28:31.640
David let's talk meme of the week man what is the meme of the week i'm going to share my screen
940
01:28:31.640 --> 01:28:36.760
this is one from robert lester and some of the defi builders some of the crypto native builders
941
01:28:36.760 --> 01:28:41.800
right so robert lester randomly treats out who is in crypto in new york city right this second
942
01:28:41.880 --> 01:28:46.920
and wearing blue wearing blue i need you for a mission and then later haiden adam's tweets out
943
01:28:46.920 --> 01:28:53.000
this photo how it started and then new photo how's it going so the first photo is that that weird
944
01:28:53.000 --> 01:28:58.200
meme going around of bill marie plus three other actors kind of just like all awkwardly standing
945
01:28:58.200 --> 01:29:04.040
weirdly plus with increasing outfits and there's this one lady in this like very very vibrant
946
01:29:04.040 --> 01:29:08.840
fiery blue suit uh look like an absolute rock star and then like everyone kind of has their own
947
01:29:08.840 --> 01:29:13.480
deal going on nothing really makes any sense feeling on this is definitely a vibe going on definitely
948
01:29:13.480 --> 01:29:17.720
a vibe every if there's looks like there's four vibes going on for every four actors and then
949
01:29:18.280 --> 01:29:23.880
and then robert uh and uh excuse me haiden adam's tweet this tweets this out we got from from left
950
01:29:23.880 --> 01:29:28.440
to right we got haiden adam's we got cane from synthetics we got james johnson from pleaser dale
951
01:29:28.440 --> 01:29:33.880
and then we got robert leshner on the right and they are just recreating the meme which is hilarious
952
01:29:33.880 --> 01:29:40.040
because this is a decentralized industry cane is from australia haiden is from new york robert
953
01:29:40.040 --> 01:29:45.320
leshner i'm pretty sure it's from san francisco uh and they they all made they all made it happen
954
01:29:46.280 --> 01:29:51.880
and then interestingly uh cane was the only person that had a white haired crypto punk before
955
01:29:51.880 --> 01:29:56.680
this image but for some reason they all decided to buy white haired crypto punks and put it as their
956
01:29:56.680 --> 01:30:01.000
avatar and so now this is the white haired crypto punks moment the other cool interesting like a
957
01:30:01.000 --> 01:30:05.720
little bit little easter egg in this photo is that bill marie for some reason is wearing two watches
958
01:30:05.720 --> 01:30:11.560
and so is robert leshner the person that's bill marie's correlate yeah robert leshner got two washes on
959
01:30:11.560 --> 01:30:16.840
it was just i think this is a fun little moment uh when when robert leshner tweets out who's in
960
01:30:16.840 --> 01:30:21.000
new york city wearing blue right this moment we get james johnson showing up looking like an
961
01:30:21.000 --> 01:30:26.680
absolute g in a blue suit uh i thought that was pretty cool yeah that's awesome all right guys
962
01:30:26.680 --> 01:30:33.240
this has been the weekly roll up special edition e ip 15 5 9 as always none of this was financial
963
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advice ethos risky crypto is risky all of defy is risky you could definitely lose what you put in but
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01:30:39.400 --> 01:30:46.520
we are headed west and we like it we're okay with heading west uh thanks for joining us on the
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01:30:46.520 --> 01:30:52.120
bank list journey see later hey we hope you enjoyed the video if you did head over to bankless
966
01:30:52.120 --> 01:30:57.720
hq right now to develop your crypto investing skills and learn how to free yourself from banks and
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and weekly roll ups where we summarize the week in crypto and other fantastic content thanks everyone
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01:31:35.320 --> 01:31:39.000
for watching and being on the journey as we build out the bankless nation
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00:00:00.000 --> 00:00:12.120
Hey, Bankless Nation. Happy Friday to you. It is the first week of August. David, it's
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roll-up time. This is the EIP 1559 edition, 1559-1559. However you say it, it is the day that
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we have deployed EIP 1559, actually. We will have deployed it one day after you guys
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are listening to this. David, that's pretty exciting, dude. I'm pumped. There is so much to
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talk about and so I'm going to try and refrain from talking about it right now, but it has
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been a long time coming and the fact that EIP 1559 is here and we have things to talk
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about that it's actually live. It's just absolutely stellar and I'm really stoked to get
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into the weekly roll-up this week. Okay, yeah. Do not drink a swig of coffee every time
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you hear EIP 1559 or you will be coffee drunk by this episode. Before we get into the show,
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we got to talk about pool together because it is summertime and it's all time to get into the pool.
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If you don't know pool together, it is a no-loss lottery, which means you put your stablecoins,
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your comp tokens, whatever tokens that pool together accepts into a pool and then you have a chance
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to win the accrued interest that accrues weekly from everyone's collective funds. So you don't lose
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your principle, you might lose your opportunity to cost money, but you also might win everyone
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else's interest as well. It's a fun no-loss lottery on Ethereum. Every single week, roughly 50 to
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$60,000 gets awarded in USDC and that is just the USDC pool. There is usually a drawing every single
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day of the week. They have also recently deployed their polygon implementation where you can deposit
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TUSD tether into the polygon pool together pool together pool and they are also rolling out
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their L2s coming soon in the future. So check them out. There's a link in the show notes so you can
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have fun in the pool. That's a lot of pool time guys. If you haven't yet tried many DeFi apps,
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this is one to try and tell your friends super easy to use and you can't lose. It's a lot of
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you can't lose. So check that out guys. All right, David, you ready to get into Bitcoin markets,
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my friend? Yeah, let's do it. Bitcoin is down on the week starting at the high prices of
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roughly $42,000. Touch the low price of just below $38,000 to where we are currently at right now
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at $39,300 for one Bitcoin. All right, let's talk about ETH price. ETH price doing a little bit of
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the opposite started right around $2,500 on the week and that was roughly about the low
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and it is currently at the high price of roughly $2,800 feels like it's pumping on the news of EIP 1559
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finally going live, which is always kind of funny to me because there's no way you've been
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able to pay attention to a theory without understanding EIP 1559. We talk about it all the time
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and now it's live and now people are buying. It's like weird. Yeah, why did you wait so long?
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Like people who just bought EIP, bought ETH after EIP 1559, like why?
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Anyway, do you think there's some like worry that maybe it wouldn't ship, maybe the hard fork
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wouldn't go right? I have no clue, man, but I mean, I know I wasn't waiting, so.
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We knew this was coming, guys. We also know the merge is coming on the horizon too,
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so that'll be another catalyst in the future. We'll get to a bit more of that later, but let's
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review some more metrics. So, ETH Bitcoin ratio, how's the ETH ratio doing?
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Yeah, listeners will remember last week that we talked about how there was a descending wedge,
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if you want to use again, trader terminology, which I'm not very good at using trader terminology,
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but I'm going to do it anyways. There was a descending wedge that ETH looks like it broke out of
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versus Bitcoin and turns out that that continuation just happened even further this week.
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ETH is above 0.07 ETH per BTC at the price of 0.0712, looking really, really strong, and there's
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a lot of traders that I know, a lot of people that are looking at the ETH BTC ratio, looking like,
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oh, man, it just looks like it's going to resume going higher versus Bitcoin, back to the highs of
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maybe 0.1 ETH, here's BTC, just speculation here, but ETH BTC looking really strong as you would
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expect during EIP 1559 week. Yeah, also not surprising, given these ETH tailwinds, right,
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these ETH catalysts, let's talk about total value locked in DeFi. That is also up on the week.
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I remember hanging in the 50 to 60 billion range now, we're at 70 billion.
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Yeah, that is the theme of markets this week, at least on the Ethereum side of things, is up.
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It's really nice to see that seven number leading a total lot of value back in DeFi. I remember,
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I think the peak that we set back in May was just around 90 billion locked in DeFi. We are back
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up to 70 billion locked in DeFi. All right, let's take a look at the DPI's. This is the DeFi pulse
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index. This tracks in the top DeFi tokens in crypto to give you sense of that. We are up on the
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week as well, David. 18% on the week, 18% green for DPI at the price of $362, which is the local
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high for the week. So congratulations to DPI holders.
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Okay, well, it seems to be ETH season over Bitcoin season. That's what that ratio is telling us,
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but is it DeFi season, David? What are we looking at? Oh, are we below your mount?
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We're below your number. I mean, we'll be like, you know, more shoes hand grenades. It's like,
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we're around my number. We are currently at .128 ETH, ETH, DPI ratio, which means that it is ETH
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season, not necessarily DeFi season. I'm okay with that. Give DeFi a breather for a bit.
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Okay, let's talk about the bed index. So the bed index, of course, composes all of these
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assets together. You get one third Bitcoin, one third ETH, one third DPI, all in one token that
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you have to hold. That is up on the week because all three of those assets are up on the week.
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Where are we right now? We are up 10% on the week started a DPI, excuse me, bed started at $113,
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and we are currently at $130. So that is the summary of the crypto markets at large,
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up 10% on the week. Again, the bed index, the best DeFi crypto index that there ever will be,
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I'm pretty sure. Tell your friends, guys, you just wanted to get exposure to crypto,
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at least the premium assets, the least assets you want to be part of on the bankless journey.
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David, close talk, man. EIP. What do you want to talk about? All right. I look.
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Do we have something to talk about? I know you flew all the way to San Diego last night,
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but you woke up early in the morning to be available for this. It was like, what, five o'clock
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your time? Yeah, woke up at four thirty because Eric Conner and Anthony Sazon were like,
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why isn't the zoom up yet? I'm like, hi, it's an hour before the fork. I guess they were really
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excited to get the ice from up in Rome. Yeah. It's in front of the Christmas tree,
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just like waiting for Santa to come down the gym. They were really excited about this.
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But we're excited too. EIP 1559 got deployed today as part of the London hard fork for Ethereum.
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This is a massive event. There are a slew of other feature updates in that, but EIP 1559 was the
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one we've all been waiting for. That means a number of things. But one thing it definitely means is
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we are burning ETH effective 830 or so. Eastern time this morning we have started burning ETH
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and we will continue to burn ETH until maybe the end of the Ethereum network. Like this is going to
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last into the the future upgrades and it's going to be has become a core part of the protocol.
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And David, there are so many like dashboards where you can see ETH getting burnt in real time
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that I've become addicted to these things. So like here's one etherchain.org slash burn we'd see
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look man, almost 800 ETH burnt only like four and a half hours into this 800 ETH in four and a
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half hours burnt gone. And remind folks why is ETH getting burnt when people are asking the
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question like that seems weird. Why are you burning ETH? Are you like wasting it? Like why is
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this a good thing? Why are you so excited about burning money? Yeah. So here is like kind of a 400
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level bankless content take is that if you listen to our podcast with Vitalik buterin on
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legitimacy the same reason why Bitcoin has a shelling point of zero issuance and a hard cap is
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the same reason why we burn ETH. It is just the best default option because if we didn't burn ETH
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then we would have to figure out where we should send it to who gets it. And that is a very heavy
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political decision that bestows a kingmaker like that's a kingmaker decision like who gets the
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ETH. And so instead of just like deciding who should get all of this ETH which is a ton of money
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or like three billion dollars or three million dollars every like four hours or so it's just
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easiest to say that no one gets it. Or everyone gets it or everyone gets it right because if no one
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gets it then everyone gets it right and everyone I mean like ETH holders which is one of the benefits
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of holding ETH. So EIP1559 changes the way that we allocate ETH when you pay for a transaction.
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You used to pay for a transaction and that money used to go to miners and now instead because we
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have decided that EIP1559 is a stronger security mechanism and an overall UX upgrade for Ethereum
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we've decided that the best thing that we should do is we should burn that ETH and not give it to
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anyone. And if you want to dive deeper into the subject definitely listen to our podcast with
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Hazu EIP1559 and that will go into further depth as to why we burn ETH. And when you Ryan
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you and I talked about this like multiple years ago we really just framed it in a conversation of
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the last puzzle piece the last really important component of Ethereum's monetary policy it makes
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Ethereum more secure it makes ETH are more valuable it's just overall a net beneficial change
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and now it's finally live in the time that I have been ranting we have burned nine more
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ETH. The ticker just went up from 799 to 808 now it's like 810 that is a lot we've burned
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$5,000 in the time that listeners listen to this. All right David remind me we got to check it again
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at the end of the semester or maybe continuously throughout the outside I know we'll empty
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for every five minutes like there's so many places you can you can look at this burn rate this is
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probably my favorite David ultrasound.money go check this out like fantastic memory around this
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ultrasound money not only has the ETH cumulative ETH burn rate but also has a burn leader board
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right so we see like some of these NFT platforms are burning the most ETH right open sea
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a crazy stuff yeah NFTs burning more ETH and defy not not humanatively but just as open
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sees burning more ETH and uniswap like well I'm less mad about my gas fees from NFT launches now
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less mad about that I might be okay with it you can also see it on of course your favorite
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block explorer like ether scan for example and this is cool because you can dig into the actual
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block David he's pulling it up here and you could see the block reward of course that is issuance
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but then you see the amount of ETH burnt on this block which is super cool nice breakdown for you
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and there's so many new metrics in the block explorer now and this is a kind of front running
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what I'm going to say later in the episode with what I'm excited about but there's new things to
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look at which means more things to talk about which makes me so excited more numbers more metrics
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more it's of course it's open and available to anyone I think Micah put together a fantastic
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dashboard on dune analytics we can see ETH burnt per block based fees over time all of this is
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open and available so check that out they'll be in the show notes and this is cool too David we
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just we had this morning our first deflationary Ethereum block you might say our first ultrasound
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Ethereum block because while we issue just over to ETH or so every block according to the protocol
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exactly to ETH exactly to ETH that generally goes to minors we burnt more than we issued
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in this particular block so like the amount burnt per block will fluctuate based on kind of the
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you know the formula and algorithm that's set up in eip1559 in this particular block I'm not
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going to say the number 12 million something you guys can look it up yourselves but there was
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a ETH burnt of 2.078 and ETH block reward of course of two so the net is actually deflationary
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that block now it's not to say Ethereum as a whole is deflationary right now because it's not
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it seems like we're issuing like we're probably burning what would you say 25 or 30 percent
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of proof of work issuance that's about a good estimation I think there's a lot of like settling
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that needs to happen like we are still kind of in this period of a little bit of chaos because like
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minors still have to update like wallets still need to update that's shaken out yeah we so we are
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still settling we are washing this play out in real time and that's going to be one of the fun
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things about the next week is seeing where things settle seeing how full blocks become seeing minors
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get on board seeing wallets get on board because something to talk about is that there's actually
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two transaction types now there's the legacy transaction types and then there's eip1559
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transaction types both types burn ETH but one is just a little bit better for the user one of
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the ones a little bit easier and so it's really up to wallets to update how they allow transactions
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to occur on Ethereum and they should update to the eip1559 over time because that's beneficial to
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the users metamask is now updated my crypto is now updated so people are doing this pretty quickly
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but it's going to take at least a few days for everyone to get on board and synced up with eip1559
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yeah absolutely and so so the net of that is Ethereum is not net deflationary at this moment
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but it is more deflationary so we are burning a you know maybe 25% 30% as David said this will
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take a while to pan out but post merged it's sure looking like things are going to be deflationary
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when that happens that merge referring to is when proof of work gets fully turned off that 4%
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or so issuance per year goes to zero that's going to happen to fly just buzz my hand David
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anyway you were talking about wallets so for the typical user right this is all backwards compatible
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so if you're using metamask and it has not updated then you can just send a transaction the way
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you always change yep no change it might be a bit more expensive relative to using the new transaction
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that David was mentioning but once metamask rolls out they've got a fantastic eip1559 helper page
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to show you how to set transaction priority it's actually I think it's going to be more intuitive
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and easier to use if you're if you're doing that second transaction type the eip1559 transaction
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have you made a transaction yet on a theorem run i haven't oh god it's it's it's like this pseudo
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like speed update it actually feels faster just because like your transaction gets included
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into the next block by almost by by default so like it it's not faster but it feels like it is
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which is kind of actually the more important part yeah that's awesome and like gas fees aren't going
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down as a result right like this is not a improvement in probably in terms of gas fees there's
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some intricacies there that we don't have time to touch again listen to the hazu eip1559 episode
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with bankless yeah absolutely but you notice this David yeah and well you can actually see it
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twice you can see it on the lower right hand side of the screen as well eip1559 is straight up
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trending on Twitter and like think about that for a second that's not a lot of your
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your improvement proposal to this random esoteric little known piece of like internet corner
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which is going to be larger in the future is trending on Twitter eip1559 is on the front page of
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the internet that is absolutely crazy yeah that's really cool and such a yeah strange esoteric name
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what is eip1559 but that's a question they should be asking right now David let's get this
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take from Hayden Adams yeah it's Hayden tweets out it has been two hours since the launch of eip1559
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he tweeted this out a few hours ago and he says uniswap both v2 and v3 is doing its part burning
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80 eth so far again these numbers are already outdated at this rate uniswap alone is burning
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350 thousand eth close to one billion dollars worth per year and then he says congratulations to
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everyone who made eip1559 happened huge win for Ethereum and great great tweet great piece of
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content but also what I want listeners to take take note of is this is just uniswap just uniswap
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is burning 350 thousand eth per year remember just reminder there's roughly around 115 thousand
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or 115 million eth or total and just uniswap is burning a little bit over one third of a million
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ether per year it's just uniswap and so like imagine when there's just more applications imagine
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all the other applications imagine the applications into the future imagine the killer apps that we
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haven't even thought about yet imagine win like completely trustless like composable oracles
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comes online and we can get any data from the world onto Ethereum think about that because imagine
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how much ether we will be burning at that point in time it will be a large number I'm thinking
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about it you know what and this is absolutely a massive upgrade to Ethereum's monetary policy
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and it's kind of the conclusion of a lot of work that a lot of people have been like put in
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the time I just want to give a special bankless shout out and thank you to all of the developers
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in the Ethereum community coordinators you know even even some of the people who are sharing
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gospel and and spreading the news of this and garnering community support this community are
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the people who made this happen and it's like hard to get work done in a way in a decentralized
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community it's also better easier in some other ways and the fact that the Ethereum community pulled
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this off is it's pretty phenomenal pretty exciting I mean this is a live network right like a
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250 billion dollar network and this is a pretty major economic upgrade to it and it took like years
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of literally years of research to come to this point and a ton of work went in so thanks to the
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community thanks to the devs that made this possible thanks to the researchers we did it we did it
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did it fam it the Ethereum upgrade yep 159 upgrade it feels like we are having this 250
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billion dollar jet that we upgraded the engines on while in flight and so like that's kind of
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the degree of complication and that's also the degree of the skills of the developers that we have
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in this community so just like Ryan said thank you for everyone who played a part in getting this
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out the door the world is literally better for it I will make that argument yeah it was super
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cool as by the time when the time we started talking about this let's see how much
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ether we burnt 55 more ether since the last time we brought it up in conversation oh let's just
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keep on doing that every few minutes there you go there you go all right guys moving on from
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EIP 1559 which is hard to do it's very excited about it but we'll be back to it in 21 million
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crypto users all right that's how many crypto users we have this is according to a study put
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out by crypto.com kind of charts crypto users over time the market size of course these are all
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estimates no one could tell for sure not sure the exact you know methodology they used for this
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but it feels ballpark it feels about right and that's an absolutely massive amount of crypto
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users now we say users that's super broad we're talking about anybody who has ever purchased
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a crypto asset this does not defy users these are not people who even necessarily know what they
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bought but these are people who have interacted with maybe purchased a crypto asset possibly done
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something more it's not just a fad 221 million that is starting to become critical mass this is
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moving from like early adopters like the very early stage adopters to kind of this this you know
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mid stage adopters yeah mid stage adopters range 2221 million is not a low number this like you
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said this is got to be like the lowest threshold for what is considered a crypto user right so if you
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like bought 20 dollars worth of Bitcoin on Coinbase and then you then you left it and didn't do
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anything you're a crypto user I'm guessing I would like to know more methodology about how
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crypto.com came about these numbers maybe maybe on the website they have more details the other
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important point to make out is that this is in June 2021 and in January 2021 just six months ago
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it was a 106 million users so we have more than doubled entire like entire user base of this
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entire industry in just six months and so that kind of illustrates kind of how crypto moves in
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waves like it moves in moves in step functions like like nothing will happen for two years and then
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all of a sudden it's an order of magnitude better more order of magnitude more users and Ryan
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221 million users that's a lot of people that can go and make transactions on a theory and burn
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E through the IP 155 now that's right all right let's talk about OpenSea the speaking of more
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burning of ETH OpenSea which is one of the top in the ETH burden charts right now they they
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did this is a tweet from Devon Fincer who's been on the podcast before in 2020 OpenSea did about
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21 million in total transaction volume that's the total for the year in the last two days he's
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tweeting this August first we did 95 million two days 95 million in entire year in 2020
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they only did 21 million the growth curve for NFTs is insane yeah it is insane absolutely going
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bonkers and OpenSea is crushing it yeah no wonder OpenSea had that monster raise not too long go
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NFTs are definitely hot turns out the bear market was this was what I wrote in the market Monday
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this week turns out the NFT bear market was just a meme and it turns out it was an NFT land grab
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opportunity for the people that believed in it and then the market realized it all like all in the
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last like two days that Devon was talking about sadly those two days where OpenSea had such
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insane amount of volume was before EIP 1559 so we didn't burn that ETH but all future volume going
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through OpenSea will indeed burn more ETH look at this this is worth a quick getter to Ethereum
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addresses using DeFi rose 65% last quarter so more ETH addresses going bankless using DeFi
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up in ETH wait is that not what you're gonna say oh okay no no all right guys we will be back with
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some more burning ETH talk but before we do we want to thank the sponsors that made this
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episode possible bankless is proud to be supported by Uniswap Uniswap is a new paradigm in asset
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exchange infrastructure instead of a cumbersome order book system where trades are matched with
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other humans Uniswap is an autonomous piece of software on Ethereum which is what Ryan and I call
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a money robot no human counterparties or centralized intermediaries just autonomous code on Ethereum
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input the token you want to sell and receive the token you want to buy something brand new
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in the Uniswap ecosystem is the Uniswap grants program is now accepting applications for grants
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we have been saying this for a while and we'll say it again dals have money and they are in need
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of labor if you think that you have something to contribute to the Uniswap Dow apply for a grant
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to Uniswap just look at the size of the Uniswap treasury it's almost three billion dollars
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this mountain of capital is looking for labor do you have something of value to contribute to
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the Uniswap Dow no matter how big or small your idea is you can apply for a unigrant at unigrants.org
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and help steer Uniswap in the direction that you think it should go that's exactly what we did
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to get Uniswap to be a sponsor for bankless and you can do the same for your project thank you
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Uniswap for sponsoring bankless the Ave protocol is a decentralized liquidity protocol on Ethereum
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which allows users to supply and borrow certain crypto assets. Ave version 2 has a ton of cool
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features that makes using the Ave protocol even more powerful with Ave you can leverage the full
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power of DeFi money Legos yield and composability all in one application on Ave there are a ton
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of assets that you can supply to the protocol in order to gain yield and all of those same assets
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can also be borrowed from the protocol if you have supplied collateral here you can see me
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borrowing 200 USDC against my portfolio of a number of different DeFi tokens and ease
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I'll choose a variable interest rate because it's a lower rate than the stable interest rate
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option but I could choose the stable interest rate option if I wanted to lock in that interest rate
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in permanently V2 also features the ability for users to swap collateral without having to withdraw
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their assets trade them on Uniswap and then deposit them back into Ave with Ave users can do this
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in one seamless transaction saving you time and gas costs check out the power of Ave at Ave.com
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that's A-A-V-E.com hey guys we are back with the releases Dave there's so much to talk about
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we still have some EIP 1559 to cover but we want to get to regulatory so we're going to burn
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through some of these releases and get to the regulatory section get to the news the first is
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this starkware and so rare are teaming up they are releasing the so rare as a scalability solution
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on starkware so so rare is another NFT project for soccer football in Europe and it's been
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doing super well it's good to see them deploying on layer two with starkware as their scalability tech
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layer two summer continues and so does NFT summer so awesome let's keep going yeah absolutely
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brand new ethereum application now on main net thales a binary options trading platform has
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deployed it's got a seed investment from synthetics so communities seeding other communities so
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that's pretty cool there's a lot to talk about there but unfortunately don't have the time
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if you're interested in binary options trading go to thales THALES dot market and see what it's
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like i have not tried this out yet so if you are a binary option trader ping us on twitter and let
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us know what you think guys speaking of the synthetics world the derivatives world dy dx just
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drop their token this week so this is a governance that's token for dy dx david we've written tactics
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about dy dx number of times most recently recently when they deployed their layer to technology
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i think that was like april or may or so and the good news is they're doing a retrospective
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air drop so if you have ever used dy dx you might be eligible we actually put out what we call an
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alpha alert to bankless premium subscribers on the newsletter with all of the details of this
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retroactive air drop what it includes you can also find some of this information on the dy dx
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website again you're eligible if you paid fees the dy dx and then you have to use layer two it looks
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like they are also receiving some bumps in adoption post governance post governance token launch so
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this again there's a story of kind of the the previous defy summer when the comp token launched
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and comp usage went off the charts this is now also happening with dy dx so go check that out you
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might be eligible for that retrospective air drop there's also there's also a future ways to earn
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dy dx token if you are a liquidity provider and some other things so make sure to check that out
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here's a quick at bankless self-shield we told you this was going to happen like six months ago
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so shout out to the guys in the bankless discord who said that they started using dy dx when we
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when we guessed that dy dx is going to listen airdrop and they got the airdrop because of that so
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sometimes listening to the bankless weekly roll up gives you alpha David one sad part for residents
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of the u.s. is that residents of the u.s. are not eligible for this retrospective air drop so
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this is Jake Travinsky saying I feel so safe and protected in response to Anthony Sassano saying
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the us investors are missing out on this airdrop because of stupid regulations David this doesn't
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feel great that the SEC is protecting us investors from free money I mean they're definitely
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here that to prevent scams and to help make sure that markets are transparent this does not feel
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either of those two objectives that's that's exactly right us investors are people just like the
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rest of the world I was a previous user of dy dx before they implemented the the IP ban so I did not
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get my dy dx tokens which I feel like I should have gotten because like I said I'm a user but I'm glad
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other people were able to get the tokens dy dx unfortunately but also fortunately for them did a
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very good meticulous job of tracking IP addresses and linking that to aetherium addresses and so if
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you're aetherium address what's associated with the us IP address you did not get the airdrop
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and you can thank the SEC for that one there you go in other news bitwise has just launched two new
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DeFi funds one for Uniswap one for Ave so investors who are credit investors because of course
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bitwise is kind of this bridge from old finance to DeFi they can invest in these assets without having
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metamask without taking self custody sort of an easy way to do this through kind of brokerage
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accounts and traditional finance great to see bitwise investing further and expanding further in
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the DeFi space and giving more exposure to two traditional investors there yeah basically this is
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just a wrapper around Ave and uni tokens making them available to accredited investors in the
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trad fi world it's progress I guess but again limited and hampered by regulations so we're
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going to have to we're going to be talking about regulation here in the second round soon yeah I
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feel like we got some access to grind here okay Argent though this is great news Argent one of our
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favorite smart contract wallets they are now going to layer two this has been probably the biggest
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feature this UX problem with with Argent wallet smart contracts wallets in general is high gas
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prices well no longer right now they have a layer to wait list you can enter that they've got
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prizes almost 300 K and crypto sweepstakes to celebrate so it's not out yet but you can enter
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that wait list I can't wait to see what they have in store I'm pretty excited about this one yeah
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also definitely go listen to Vitalik smart contract wallets on layer two that was a fantastic
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episode about why specifically layer two is very good for enabling smart contract wallets I
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was a heavy user of Argent wallet when back in the early days but as soon as gas fees on the
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Ethereum stopped being one way and for the Ethereum like newcomers like it used to be one
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way which is kind of insane now so the Argent works pretty well like gas fees were basically
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nothing and you didn't have to wait too long but now gas fees with Argent are really expensive
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and the transactions take a really long time this is something that really needs layer two to work
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so I'm really excited to see what Argent on layer two is like I'm going to keep us moving David
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rocket pool is going to test net which is super exciting and you decentralized staking protocol
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rocket pool going to test net on August 2nd I hope they can keep shipping there are a lot of
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I think staking organizations that have come up and deployed solutions ahead of them we've
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been super excited about rocket pool because of their their focus on decentralization is good to
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see them progress to test net um David you want to talk about this this is a new eth
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modeler maybe like a wrist modeler some sort what is this yeah this is an e-supply simulator a
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little bit like ultrasound dot money but just feel more things to tinker with a nice little graph
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and so you can change the validator how many validators there are you can change when the
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proof of state activation comes you can change the gas fee and then it will model out the future
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supply of eth for you so don't let anyone tell you that you can't predict the future supply of
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it is capable of being done and you can also see how low that number goes which is where I get
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excited yeah you can model this based on your own assumptions whatever those are also cool David
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in continuation of layer two summer diversify which is a decentralized exchange is now bridging
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directly to polygon which is super cool to see remember ethereum is a economic nexus we have the
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main chain we got layer two we got side chains all those things are going to interconnect with
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each other in different ways and so this is one of those many bridges that just got built you can
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now go straight from polygon to diversify without even touching ethereum uh and so no longer can
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you say that gas prices are an issue because you can just go to the L2 and stay there
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absolutely guys uh David let's get to raises so this just in Missouri which is a crypto media
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company crypto analysis company just launched just released information about their 21 million
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series a funding which is cool in and of itself it's also cool is that another billionaire has joined
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the banks is investing in that series a uh Steve Cohen so you might know him from 0.72 a large
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kind of crypto capital or sorry a large traditional capital firm um in july there was news release
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that 0.72 is hunting for a crypto chief after saying it would be remiss to ignore digital assets so
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it's there it's a link there too again this is the story of of traditional finance at billionaires
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starting to get into crypto and deploy capital there not just in the assets themselves but in some
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of the infrastructure companies in this case in missarius it's kind of cool to see another d5
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protocol sense finance announced their raise of 5.2 million dollars they're saying to add a new
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dimension to d5 so this is essentially creating fixed income types of markets so similar to
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element finance if you're familiar with that uh sense has a kind of a different take on it but also
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building out that a fixed income primitive super exciting to see David uh you want to talk
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about crystal this is a d5 platform that raised 6.1 million what are they up to yeah this is crystal
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out of kyber so kyber moving out of just being the liquidity provider to ethereum to also being a
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kind of a d5 dashboard we've seen a bunch of emergencies of new d5 dashboards out on the scene
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especially as d5 becomes more rich and more complex uh so crystal is going to be a new place to
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interact with all of d5 uh we've been joking about and jim bianco really gets credit for this joke
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is like people are looking for like all right i downloaded coinbase where's the d5 uh and there's
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actually more and more like people out there working to provide the d5 for people and this is uh
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the the new product out of kyber called crystal and let's see where it goes people want their d5
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button where's the d5 button we say it every time but if you were looking for a job in crypto the way
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to check that out of l is through the bankless jobs boards got a lot of fantastic jobs featured there
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senior product manager at immutable gaming crypto gaming company full stack engineer at palette a
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senior solidity engineer at quant finance chief investment officer at yield app a software
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engineer at arbitrum a designer at pool together of course bankless is still looking for its
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editors so there's tons of opportunities to plug in during this uh season this i guess crab season
372
00:35:25.720 --> 00:35:31.000
bull market season still on but crypto firms are hiring like crazy that crab market with much
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big bull horns big bull horns on that crab all right david you ready to get to the news yeah let's do
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all right man let's start with this um this is the a blog post entitled the road to trustless
375
00:35:42.440 --> 00:35:47.800
eth-staking we've been doing a lot of deep dives on eth-staking recently we had that
376
00:35:47.800 --> 00:35:52.920
eth-staking panel one of the uh panelists was from lido and this is a blog post from lido
377
00:35:52.920 --> 00:35:59.960
they are are kind of moving really quickly in in uh the eth-staking industry and they just rolled
378
00:35:59.960 --> 00:36:05.480
out this post about becoming more trustless david what's the TLDR of what they're attempting to do
379
00:36:05.480 --> 00:36:11.240
here yeah basically basically the TLDR is that there is a few low hanging fruit things to be
380
00:36:11.240 --> 00:36:16.040
become completely trustless as a staking as a service provider and and maybe just to back up as
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00:36:16.040 --> 00:36:21.640
as context is there there are two main significant um staking as a service providers that aren't
382
00:36:21.640 --> 00:36:25.400
just like a centralized exchange one of them is lido which we're talking about now the other one
383
00:36:25.400 --> 00:36:30.040
is rocket pool which we talked about earlier rocket pool has always had the ethos of being
384
00:36:30.040 --> 00:36:35.560
maximally and completely decentralized without compromise from day one lido has made some sort of
385
00:36:35.560 --> 00:36:41.080
compromises to trustless staking uh by starting with a Dow multi-sick model this is the same critiques
386
00:36:41.080 --> 00:36:45.800
that you know a polygon has been getting for being secured by a multi-sick and rather than being
387
00:36:45.800 --> 00:36:52.520
a protocol but the uh the the ethos behind lido is that well if we wait to become a completely
388
00:36:52.520 --> 00:36:58.840
decentralized protocol the uh the stake the centralized uh exchanges like coinbase and kraken might
389
00:36:58.840 --> 00:37:03.640
gain too much of a lead and that is kind of a threat in of itself and so in order to get out the
390
00:37:03.640 --> 00:37:10.040
door quickly lido started as a Dow with permission validators and now this blog post talks about the
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00:37:10.040 --> 00:37:16.440
way that they are going to further their trustlessness further their decentralization and turn into
392
00:37:16.440 --> 00:37:20.760
something closer to what their ethos behind rocket pool is and so they talk about the problems that
393
00:37:20.760 --> 00:37:25.640
they have ahead how they are going to tackle them and what the various uh routes towards the
394
00:37:25.640 --> 00:37:31.880
trustless future that they want out of lido it's really awesome to see uh lido have that commitment
395
00:37:31.880 --> 00:37:36.760
have that ethos and so that makes me excited uh there's also some pretty cool cryptographic
396
00:37:36.760 --> 00:37:41.080
ethereum stuff uh shared secret validators is something that i am paying attention to which
397
00:37:41.080 --> 00:37:47.720
has a mention here in the post so if you are interested in seeing how a Dow can turn into a protocol
398
00:37:47.720 --> 00:37:52.360
shared thief validators is one of the uh points here and if you are into that world definitely
399
00:37:52.360 --> 00:37:57.240
check out this blog post it's a very just educational one to read we definitely have to make sure
400
00:37:57.240 --> 00:38:02.600
it's staking remains decentralized remains trustless so this is an initiative we will continue to support
401
00:38:02.600 --> 00:38:10.920
at bankless uh david interesting news zoku who is who go zuko zuko sorry who is the lead founder of
402
00:38:11.560 --> 00:38:16.760
z cash um ask this question on twitter this is a governance question should z cash switch from
403
00:38:16.760 --> 00:38:20.840
proof of work to proof of stake it's kind of interesting here right even that this question is
404
00:38:20.840 --> 00:38:28.680
being posed i have to ask myself does this mean proof of stake has won or is winning like when a
405
00:38:28.680 --> 00:38:36.200
longstanding proof of work uh chain you know raises this question you have to ask yourself why
406
00:38:36.200 --> 00:38:41.240
right totally and zuko the z cash community in the ethereum community have always been really
407
00:38:41.240 --> 00:38:46.520
really close you and i have critiques z cash in the past about like just privacy need its own
408
00:38:46.520 --> 00:38:51.720
l one and to some degree i think this is actually an illustration of that because proof of stake is
409
00:38:51.720 --> 00:38:57.000
just like may it does a leaner consensus algorithm which is just like making the whole thing just
410
00:38:57.000 --> 00:39:01.560
leaner and smaller and more condensed which kind of goes to show that like no you are just trying to
411
00:39:01.560 --> 00:39:06.920
optimize for zero knowledge proofs which should be an app on ethereum that's really a different story
412
00:39:06.920 --> 00:39:11.880
uh i take your point that a longstanding proof of work blockchain and it just started with proof
413
00:39:12.040 --> 00:39:16.600
of work because that's what z cash had to work with at the time is now saying like hey proof of
414
00:39:16.600 --> 00:39:22.520
stake might work better for us and there is definitely a stronger a very strong argument to link
415
00:39:22.520 --> 00:39:27.880
proof of stake with cryptography cryptography is easier with proof of stake um i'm not technical enough
416
00:39:27.880 --> 00:39:31.800
to explain how i did just just my gut take i mean but that was like there's a huge efficiency gain
417
00:39:31.800 --> 00:39:38.040
and that might be it like i know um z cash spends a whole lot of money in in terms of block rewards
418
00:39:38.200 --> 00:39:43.640
in order to fund the security of of of itself z cash and so if you transition to proof of stake
419
00:39:43.640 --> 00:39:48.520
you you don't have to spend as much maybe like one tenth the amount it's kind of estimates with uh
420
00:39:48.520 --> 00:39:53.480
that Justin Drake gives for a switch from proof of work to proof of stake so we'll see how that goes
421
00:39:53.480 --> 00:39:58.760
David let's talk NFT stuff because that is a big story this week as well crypto punks are just
422
00:39:58.760 --> 00:40:06.280
pumping crypto punks price rise 53% in a week after ethereum whales feeding frenzy that is the
423
00:40:06.280 --> 00:40:11.080
title half of the top ten crypto punks have been sold over the past two days this happened last
424
00:40:11.080 --> 00:40:15.400
week what is going on in the crypto punk world yeah this is what i wrote about again in the market
425
00:40:15.400 --> 00:40:20.440
Monday there was uh people thought it was the NFT bear market but the convicted knew that it was
426
00:40:20.440 --> 00:40:25.720
an NFT like land grab opportunity and so there was a bunch of people that were bullish on NFTs that
427
00:40:25.720 --> 00:40:32.280
were buying up the cheap NFTs as people left the NFT like mania from from earlier uh and then
428
00:40:32.280 --> 00:40:36.840
enough people realized what was going on that NFTs weren't actually bearish and they were quite
429
00:40:36.840 --> 00:40:41.560
bullish and then all of a sudden the market kind of all realized it at once and people descended upon
430
00:40:41.560 --> 00:40:47.960
first crypto punks which were kind of like the you know a Bitcoin of NFTs the OG NFTs uh and uh
431
00:40:47.960 --> 00:40:54.680
that's the crypto punks got bought up first uh the first event that happened was that uh Gary v
432
00:40:54.680 --> 00:41:00.840
paid two point seven million dollars for a knitted cap ape uh and then he tweeted out uh
433
00:41:00.920 --> 00:41:05.640
something something like here we go or something and then and then people connected it and that kind
434
00:41:05.640 --> 00:41:11.880
of uh kicked off the frenzy i was part of that frenzy i got the phomo so i bought my crypto punk
435
00:41:11.880 --> 00:41:16.360
right after uh right out right out right after i saw this frenzy like pick up because i kind of felt
436
00:41:16.360 --> 00:41:20.360
i was part of that like i was part of that uh environment where people thought that NFTs were
437
00:41:20.360 --> 00:41:25.560
bearish uh and then realized that everyone else is also bullish on NFTs so i phomoed into a punk
438
00:41:25.560 --> 00:41:31.480
and i phomoed into a punk friday morning and the and the punk mania just absolutely continued for
439
00:41:31.480 --> 00:41:37.800
the next like 48 72 hours where if you go there there's a dune dune analytics dashboard for punks
440
00:41:37.800 --> 00:41:43.080
that compared all time volume and just the the last week of volume is like three times higher than
441
00:41:43.080 --> 00:41:48.440
any other candle there's a and there's and then millions and millions of dollars got purchased
442
00:41:48.440 --> 00:41:54.920
or got spent on on uh crypto punks after Gary v but the the ape knitted cap NFT for two point
443
00:41:54.920 --> 00:42:01.560
seven million another ape gold chain crypto punk got sold for five point five million uh an alien
444
00:42:01.560 --> 00:42:07.240
punk got bought yesterday for a thousand ether and new alien crypto punk got listed available to be
445
00:42:07.240 --> 00:42:12.600
sold for 90 million we'll see if that gets purchased and then we also saw three arrows capital
446
00:42:12.600 --> 00:42:18.040
come in throwing a bunch of money of crypto punks in art blocks and some other NFT projects we saw
447
00:42:18.040 --> 00:42:23.080
the floor price which is the lowest price that you can buy a specific NFT for for so many different
448
00:42:23.080 --> 00:42:29.400
NFT projects run up uh board apes got purchased like art blocks got purchased uh cool cats got
449
00:42:29.400 --> 00:42:34.840
purchased uh and so there was just a bunch of reallocation rotation into the NFT industry and that
450
00:42:34.840 --> 00:42:39.400
all happened last weekend is still kind of happening to this day you ever going to sell your crypto
451
00:42:39.400 --> 00:42:45.000
punk david so i realized like right after i bought my crypto punks like great i got a crypto
452
00:42:45.000 --> 00:42:48.600
punk now i'm really bullish crypto punk now i'm going to put it as my avatar and now i realize
453
00:42:48.600 --> 00:42:54.600
that i only have one and i can't ever sell it because i it's i it's my only one it's become
454
00:42:54.600 --> 00:42:58.760
it's like it's it's part of me now and so i can't ever sell my one crypto punk so i bought
455
00:42:58.760 --> 00:43:02.840
relatively expensive crypto punk and now i can't ever sell it so you do expect this to appreciate
456
00:43:02.840 --> 00:43:08.760
over time right in ether terms yes in ether terms oh absolutely absolutely ether terms and ether
457
00:43:08.760 --> 00:43:14.200
terms totally more bullish crypto punks than he wow ether crypto punks are just wrapped ether
458
00:43:16.120 --> 00:43:24.680
interesting uh wrapped ether in pixel form is uh it's okay i guess okay cool um yeah anything else
459
00:43:24.680 --> 00:43:33.480
on crypto punks um bullish bullish i'm talking about this more more NFTs uh polygon has become a sponsor
460
00:43:33.960 --> 00:43:42.040
of the new york nix that seems super big what um wow do york nix consider account so i say sponsor
461
00:43:43.160 --> 00:43:47.640
probably yeah you said sponsor yeah proud proud to power the nft collection are they're powering
462
00:43:47.640 --> 00:43:53.160
that nft collection yes that's a sponsor but yes so they are powering so new york nix are using
463
00:43:53.160 --> 00:43:58.040
polygon tech in order to deploy NFTs that's what this looks like absolutely while we're talking
464
00:43:58.040 --> 00:44:02.520
NFTs david uh tell me about treverse what is that at treverse i've heard i haven't played this
465
00:44:02.520 --> 00:44:08.600
myself this is a new game on ethereum that is uh token enabled uh it i've heard this described as
466
00:44:08.600 --> 00:44:14.200
like a runescape a new runescape which i definitely played when i was younger uh and it is a token
467
00:44:14.200 --> 00:44:20.280
enabled game played to win actually infinity type game uh and uh while this is kind of in its
468
00:44:20.280 --> 00:44:24.440
early stages just wanted to call attention to this if you want to explore the play to earn games
469
00:44:24.440 --> 00:44:29.480
version of ethereum side of ethereum uh check out treverse uh the twitter account is the treverse
470
00:44:29.880 --> 00:44:35.640
all right david let's talk regulatory uh you want to start with the infrastructure bill man so
471
00:44:35.640 --> 00:44:42.280
this infrastructure bill has been just huge um seems like there's momentum to pass it uh and the
472
00:44:42.280 --> 00:44:48.600
problem with it is there was a provision that got added to the infrastructure bill bill in part
473
00:44:48.600 --> 00:44:55.160
of the pay for section that putted some handcuffs i'll say um some just stringent requests
474
00:44:55.160 --> 00:45:02.040
unrealistic requests on crypto in particular attacks reporting of crypto that could extend to
475
00:45:02.040 --> 00:45:09.640
individual wallets maybe wallet providers uh maybe uh um maybe exchanges like uniswap um doing
476
00:45:09.640 --> 00:45:16.040
things that none of these protocols actually have the capability to report like the requirements uh
477
00:45:16.040 --> 00:45:22.520
don't even make sense in the bill and so there was a huge crypto rally and pushback against this
478
00:45:22.520 --> 00:45:27.480
we had folks from coin center for example uh working with with senators to try to
479
00:45:27.480 --> 00:45:33.560
change this information change this um this bill i have it amended and uh looks like there's
480
00:45:33.560 --> 00:45:38.280
some progress here one could you update us on what that progresses yeah first off just just
481
00:45:38.280 --> 00:45:44.920
to reiterate the bill made anybody that ever provided any service to any user of any cryptocurrency
482
00:45:44.920 --> 00:45:50.040
it labeled them as a broker which means that they had to do reporting on all of their users which
483
00:45:50.120 --> 00:45:54.760
to some degree is really really hard and not even relevant and then best case scenario and then
484
00:45:54.760 --> 00:45:59.320
worst case scenarios actually straight up impossible right so like that it would make metamask
485
00:45:59.320 --> 00:46:03.960
defined as a broker which means metamask would have to do reporting requirements uh Jerry
486
00:46:03.960 --> 00:46:10.200
Brito who is at coin center um he he tweeted out uh that they have made improvements into the language
487
00:46:10.200 --> 00:46:15.320
and so they were able to exclude validators which means like node operators are no longer required
488
00:46:15.320 --> 00:46:20.760
to report uh hardware and and software uh while it's no longer required to report so that's like
489
00:46:20.760 --> 00:46:26.040
ledger and metamask um there's still many more things many more battles to be had to make this
490
00:46:27.320 --> 00:46:32.600
legislation make any sense at all but it's made a step in the right direction we've had
491
00:46:32.600 --> 00:46:37.720
i've heard some interesting takes about um you just straight up the logistics of this the other
492
00:46:37.720 --> 00:46:42.600
thing about this david is it's it's really nice to see some us senators on our side so senator
493
00:46:42.600 --> 00:46:48.680
widened senator lumus senator to me uh they were part of working through this amendment changing
494
00:46:48.680 --> 00:46:52.680
the language working with coin center to really understand the crypto industry so we do have some
495
00:46:52.680 --> 00:46:58.200
senators that are crypto sympathetic and seem to understand this and of course senator lumus
496
00:46:58.200 --> 00:47:05.000
was uh the individual who in Wyoming had uh some Dow legislation passed in her home state so
497
00:47:05.000 --> 00:47:10.760
that's cool to see that said i mean this is a great example of the crypto industry kind of rallying
498
00:47:10.760 --> 00:47:16.040
and saying like pushing back against this i heard tons of people call senators um like tweet about
499
00:47:16.040 --> 00:47:22.920
this uh you know um write letters this sort of thing write emails this sort of thing and i think
500
00:47:22.920 --> 00:47:28.200
part and parcel like part of that action was actually why we were able to get this amendment
501
00:47:28.200 --> 00:47:34.280
language in place um it was definitely put out there as a a fire alarm like everybody in crypto
502
00:47:34.280 --> 00:47:39.400
come react to this and make sure that this this legislation doesn't go forward and at the end of
503
00:47:39.400 --> 00:47:44.280
the day it seems like it is being resolved there's still some action that people can take to
504
00:47:44.280 --> 00:47:49.800
call their senators in fact we have a link in the show notes um to call your senator to save crypto
505
00:47:49.800 --> 00:47:54.680
and make sure that this uh this doesn't happen that this amendment does go through and i'm curious
506
00:47:54.680 --> 00:48:00.280
to hear your perspective on this david you feel like this is um this is a crypto success story
507
00:48:00.280 --> 00:48:07.400
or do you feel like at some level this is um i don't know a bit of a of a false alarm or like we
508
00:48:08.200 --> 00:48:12.760
were overly worried the crypto industry was overly worried about you know
509
00:48:14.680 --> 00:48:19.320
language that was going to be changed at some at some stage anyway and there was you know too
510
00:48:19.320 --> 00:48:24.600
much regulatory thought going on what's your take on this yeah so the the take that i've kind of
511
00:48:24.600 --> 00:48:29.080
agree with but i'm not really highly convicted in this in this belief is that the legislation was
512
00:48:29.080 --> 00:48:34.760
so incredibly just nonsensical and like and i feel like you could see this in the markets because
513
00:48:34.760 --> 00:48:39.800
the markets did not negatively react to and the legislation that could like in theory completely
514
00:48:39.800 --> 00:48:46.760
break the industry but the legislation was so bad was so uninformed was so like nonsensical didn't
515
00:48:46.760 --> 00:48:53.320
even make sense that like as soon as like regulators would try to enforce this legislation they would
516
00:48:53.320 --> 00:48:58.440
realize what absolute like shitstorm they accidentally caused for themselves imagine going to like
517
00:48:58.440 --> 00:49:03.560
Dan Finley at Metamask and saying hey Dan Finley like give us the all of the like reporting
518
00:49:03.560 --> 00:49:08.440
tax details of like all like 50 million of your users which you don't collect tax information
519
00:49:08.440 --> 00:49:13.560
zones by default like it is and that's just one example right like the ledger doesn't know
520
00:49:13.560 --> 00:49:18.680
what your addresses are in your ledger like ledger can't report so it can provide you the wallet
521
00:49:18.680 --> 00:49:22.360
and therefore in theory it should be a broker in providing that information to regulators but it
522
00:49:22.360 --> 00:49:28.200
has no idea so like to some degree this regulation was so incredibly nonsensical that as soon as
523
00:49:28.200 --> 00:49:33.960
any enforcement attempt would come it would be so easy to defend in court it would be so easy
524
00:49:33.960 --> 00:49:37.880
like regulators would just be overwhelmed with what to do and that's why I think the markets
525
00:49:37.880 --> 00:49:43.560
didn't react because the nonsensical nature of this was so incredibly crazy that like it was
526
00:49:43.560 --> 00:49:48.200
going to be impossible to be even forced anyways it didn't seem malicious it just seemed inept
527
00:49:48.200 --> 00:49:53.800
it seemed you know it seemed like just straight up like what's the word uh inept it's a great word
528
00:49:53.800 --> 00:49:59.480
inept it's a great word right and so to some degree well like you know very very important efforts
529
00:49:59.480 --> 00:50:04.840
were taken to rally the community to get good legislation in and we should always as an industry
530
00:50:04.840 --> 00:50:12.120
always get good legislation in when we can it was I'm very glad to see that crypto the crypto community
531
00:50:12.120 --> 00:50:18.440
the crypto industry rose to the occasion and actively participated in governance over a nation
532
00:50:18.520 --> 00:50:24.280
state which impacts our industry our industry is kind of branded as they like this anti-state
533
00:50:24.280 --> 00:50:30.440
anti-regulation anti-government like industry and like to be fair like the crypto world is the
534
00:50:30.440 --> 00:50:36.920
straight up anti-regulo non and anti-nation state is it really anti it's a non-nation state
535
00:50:36.920 --> 00:50:42.600
technology so like that's what you get it's extra it's extra nation state right like non non bias
536
00:50:42.600 --> 00:50:48.440
to the nation say it just is and the crypto crypto community regardless of that branding showed up
537
00:50:48.440 --> 00:50:55.720
to like senators telephone showed up to to like where regulation gets done and participated
538
00:50:55.720 --> 00:51:00.840
and so that makes me bullish on the community when we need to we will rally and get what we need to
539
00:51:00.840 --> 00:51:07.480
done that being said was this a not a drill or was this a drill and it's one of those things where like
540
00:51:07.560 --> 00:51:12.840
if this wasn't a drill we acted accordingly and we kind of turned it into a nothing burger
541
00:51:12.840 --> 00:51:17.160
at the end of the day I think that's like 18 yeah I mean it's like you have to treat every
542
00:51:17.160 --> 00:51:22.040
fire drill as if it's real because one of them like will be real right so you have to react to
543
00:51:22.040 --> 00:51:26.280
everyone I'm really proud of what the crypto community has accomplished guys but still
544
00:51:27.320 --> 00:51:31.320
we'll have a link in the show notes for fightforyourfuture.org where you can contact your
545
00:51:31.320 --> 00:51:37.160
senator it's like pre-made information they will help you through the process to make sure
546
00:51:37.160 --> 00:51:42.360
this amendment sticks in crypto but like I think part of the reason we're so worried David is
547
00:51:42.360 --> 00:51:47.640
because it just seems like coming out of us lawmakers they just don't understand this asset class
548
00:51:47.640 --> 00:51:54.760
at all so this is a headline from Senator Livingham Lauren she said crypto markets might need
549
00:51:54.760 --> 00:52:00.760
bailout someday without the proper regulation so you know she's making the case essentially that
550
00:52:00.760 --> 00:52:06.120
hey if we don't regulate crypto tax US taxpayers are going to be on the hook the next time crypto
551
00:52:06.120 --> 00:52:13.720
wants a bailout bailout and I'm like what like no literally the opposite you're thinking of banks
552
00:52:13.720 --> 00:52:20.200
right Elizabeth Warren banks are the groups that need bailouts crypto has never asked can't even ask
553
00:52:20.200 --> 00:52:28.600
right for to ask the odd system I wouldn't dare ask regulators for a bailout like but like how could
554
00:52:28.600 --> 00:52:34.440
that work I just it's just a fundamental mismatch understanding if this is part of the reason
555
00:52:35.000 --> 00:52:41.400
you're you're saying this is a case you're making to support crypto regulation because crypto
556
00:52:41.400 --> 00:52:48.520
regulation might need bailouts some days like no I mean we've gone through 95% 99% price drops
557
00:52:49.480 --> 00:52:54.600
not asking for a bailout DeFi gets hacked all of the time no bailouts was there a bailout for
558
00:52:54.600 --> 00:53:00.600
Mount Gawks David like no bailouts are coming we know that everyone in crypto knows that and
559
00:53:00.600 --> 00:53:07.080
that is a feature it is not a bug that's absolutely right it's a feature we need inside of our
560
00:53:07.080 --> 00:53:12.520
existing financial system this is why we're going crypto is because big banks and a plutocrats
561
00:53:12.520 --> 00:53:17.080
in all the guard cannot be billed that bailed out that's why we're doing this so it's like
562
00:53:17.720 --> 00:53:23.080
swing and a miss man totally with on the point absolutely why we're worried just why we're worried
563
00:53:23.080 --> 00:53:27.640
this just like gives you such a great insight into the inner workings of Elizabeth Warren's brain
564
00:53:27.640 --> 00:53:34.200
thinking just like oh they might need a bailout like that is straight up like put like in inner inner
565
00:53:34.200 --> 00:53:41.400
circle just like incumbents paying off regulators the reason why bailouts happened is because people
566
00:53:41.400 --> 00:53:47.320
who are insiders were able to make them happen who is literally the not insiders of the world is
567
00:53:47.320 --> 00:53:53.400
the crypto people we are the outside that's why we are here we are too proud of an industry to
568
00:53:53.400 --> 00:53:58.680
ask for regulations we would never want them in the first place we are building our protocols
569
00:53:58.680 --> 00:54:04.600
to be regulation resistant and bailout unnecessary like the whole point and so like the fact that
570
00:54:04.600 --> 00:54:10.200
Elizabeth Warren even would associate like bailouts with crypto just tells you what mindset she's in
571
00:54:10.200 --> 00:54:15.640
she is in an MMT mindset she's in a nanny state mindset she thinks that we're going to ask for
572
00:54:16.200 --> 00:54:22.040
for for for bailouts and therefore we deserve regulation we really we want neither of those things
573
00:54:22.040 --> 00:54:26.680
we don't need bailouts we get rug pulled and then we carry on the next day that's what it means
574
00:54:26.680 --> 00:54:31.960
to be a crypto person like it just puts you too much insight into how Elizabeth Warren doesn't
575
00:54:31.960 --> 00:54:36.760
understand at all what this the ethos of this industry is and she's using this whole like oh they're
576
00:54:36.760 --> 00:54:41.800
going to ask for a bailout we know we need to regulate them I you know what I you know I also want
577
00:54:41.800 --> 00:54:50.520
to lend the hand of like hey come learn about this to us senators I don't trust it like I don't
578
00:54:50.520 --> 00:54:59.080
know but like I just want them to know that this open finance thing is not a way to escape like regulation
579
00:54:59.080 --> 00:55:05.160
like you know this brings me to maybe the Gary Gensler letter and we should talk about this
580
00:55:05.800 --> 00:55:12.040
you know for a minute but like so Gary Gensler put out a so he's the new SEC chair
581
00:55:12.040 --> 00:55:18.600
and he put out a new a letter and I think this was a speech given at the Aspen security forum
582
00:55:18.600 --> 00:55:24.840
and there are some concerning things in here you know one of the things he said that that stuck
583
00:55:24.840 --> 00:55:31.800
with me is that some people in crypto are trying to shirk the legal system and that is the reason
584
00:55:31.800 --> 00:55:38.040
why they use crypto like David I don't see very much of that at all like that just we're not trying
585
00:55:38.040 --> 00:55:43.880
to shirk the legal system in crypto we're trying to shirk the shitty banking system that we have in
586
00:55:43.880 --> 00:55:51.880
place like if the banking system was better and if it was if it was digital if it had the features
587
00:55:51.880 --> 00:55:57.640
that crypto had like we would be using the banking system right it's because the banking system
588
00:55:57.640 --> 00:56:03.320
failed that this bottom up movement is happening that's that's one thing that stuck out for me
589
00:56:03.320 --> 00:56:07.160
from this letter but what are some of the other things for for you David one point that I'll make
590
00:56:07.160 --> 00:56:14.200
on that is like one of the reasons why there's this inherent like like tie to to being anti-regulation
591
00:56:14.200 --> 00:56:20.600
is that banks the incumbents are making the regulations to protect themselves and so if we want
592
00:56:20.600 --> 00:56:25.000
to be anti-regulation we don't want to be anti-regulation we want to be anti-banks we're just
593
00:56:25.000 --> 00:56:30.200
frustrated that banks are buying regulations that they want that protect them and so who do you
594
00:56:30.200 --> 00:56:33.880
think they turn everything into banks they turn everything into banks they they take away our
595
00:56:33.880 --> 00:56:39.320
individualism they take away our self-sovereignty and then they just extort us that's the natural
596
00:56:39.320 --> 00:56:44.760
organic pattern of banks over the centuries and that's what we want to get away from and so let's
597
00:56:44.760 --> 00:56:50.200
make good crypto regulation happening this and this was my last rant on the last weekly roll-up
598
00:56:50.280 --> 00:56:57.320
is that we the crypto industry would love fantastic good precise clean regulation please
599
00:56:57.320 --> 00:57:03.080
provide that regulate us in an educated fashion so you can come get your tax money but if you come
600
00:57:03.080 --> 00:57:08.520
and regulate us by saying that any wallet provider or any node is a is a broker and needs to
601
00:57:08.520 --> 00:57:12.760
provide information you're not going to get any tax money because it's nonsensical and you're
602
00:57:12.760 --> 00:57:17.480
just going to effort up and then there's going to be resistance so we should shake hands we should
603
00:57:17.480 --> 00:57:21.560
rally behind people like Jake Chervinsky and the other lawyers in this space who are informing
604
00:57:21.560 --> 00:57:26.440
regulators about how to properly do this so that the regulators can get the tax money from this
605
00:57:26.440 --> 00:57:30.680
industry that they want to pay for the infrastructure bill just do it right rather than come in heavy
606
00:57:30.680 --> 00:57:36.120
handed I think the mistake that that this tax bill made was thinking that like the crypto people
607
00:57:36.120 --> 00:57:40.120
are just like this corner of the internet they don't care about society they don't care about
608
00:57:40.120 --> 00:57:44.520
government and we'll just tax them just because we can and we'll bully them like oh no wrong
609
00:57:44.520 --> 00:57:48.840
crypto people are some of the most and like politically engaged people on this planet because
610
00:57:48.840 --> 00:57:52.360
people think that this is a money of revolution and money in finance and it totally is but this
611
00:57:52.360 --> 00:57:57.480
is also a political revolution these are all political people in this industry social revolution
612
00:57:57.480 --> 00:58:01.080
we're fighting for hearts and minds here and I think the big question with this Gary Gensler
613
00:58:01.080 --> 00:58:07.000
letter is like he's the new SEC chair taking over from Jake Clayton the question is is he crypto
614
00:58:07.000 --> 00:58:11.960
friendly or not so there's some takes around the crypto universe on the back of this letter like
615
00:58:11.960 --> 00:58:18.680
he mentioned uh uh Gary Gensler mentioned that he agrees with the previous SEC chair that
616
00:58:18.680 --> 00:58:25.640
most ICOs he said in the letter are probably securities right so that was one point that stuck out
617
00:58:25.640 --> 00:58:30.840
there are a few other points here but here's a take from Nick Carter somebody asked him like
618
00:58:30.840 --> 00:58:36.200
what's your explanation like how do you what what do you think of this letter and he said it's not
619
00:58:36.200 --> 00:58:41.640
clear that the SEC can actually fulfill its agenda given current resources but at minimum
620
00:58:41.640 --> 00:58:48.760
a crackdown on exchanges both onshore and offshore might be coming this is sort of what he took
621
00:58:48.760 --> 00:58:56.200
from Gary Gensler's letter he also said Gary Gensler it seemed was expressing a need for
622
00:58:56.200 --> 00:59:01.400
additional legislation so it could be the case that the SEC actually doesn't have the power or
623
00:59:01.400 --> 00:59:07.400
authority to do some of the things that that Gary Gensler is suggesting but there were some more
624
00:59:07.400 --> 00:59:14.360
upbeat takes here even so this is a take from a you know crypto twitter lawyer Preston burn
625
00:59:14.360 --> 00:59:18.600
what did what did Preston think about this yeah and this I've heard this sentiment echoed by
626
00:59:18.600 --> 00:59:22.440
other lawyers as well is that Preston said that Gensler's speech today was straight down the middle
627
00:59:22.440 --> 00:59:27.800
and entirely consistent with what more conservative legal advice in this space has been for years
628
00:59:27.800 --> 00:59:33.240
this guy at the top 100% understand script oh we knew that and and Preston finishes saying I
629
00:59:33.240 --> 00:59:38.520
think this is actually bullish for prospects like big the Bitcoin ETF and so if you were what
630
00:59:38.520 --> 00:59:42.440
he's saying is that there has been generally like more conservative legal advice in this space
631
00:59:42.440 --> 00:59:47.000
and if you were following that legal advice than Gary Gensler's not doing anything unexpected for
632
00:59:47.000 --> 00:59:52.840
you and so like no erratic ICOs like you know know your customers don't sell the US investors
633
00:59:52.840 --> 00:59:57.720
sadly and but then I think the take here is that Gary Gensler he's going to be a stickler he's
634
00:59:57.720 --> 01:00:02.360
going to be strict it's going to be a bit of a hard ass and he's going to let this industry progress
635
01:00:02.360 --> 01:00:08.040
forward at the same time which fine well I'll I'll take it I'll take it yeah it's definitely not
636
01:00:08.040 --> 01:00:14.920
the worst it could be for sure this is a headline in in Bloomberg saying Gensler signals pathway
637
01:00:14.920 --> 01:00:21.240
for a Bitcoin ETF with tough rules this is from partially from his speech and I think the key clip
638
01:00:21.240 --> 01:00:28.360
here is this Gensler is hinting that he'd like to see a filing this is an ETF filing all of the
639
01:00:28.360 --> 01:00:34.040
previous ETF filings have been denied for a Bitcoin ETF but he's hinting he'd like to see a filing
640
01:00:34.040 --> 01:00:40.840
that seeks approval through a 1940s law that governs mutual funds most of the pending applications
641
01:00:40.840 --> 01:00:46.280
have been filed under 1930s law it's back to your point about like being a stickler right like it's
642
01:00:46.280 --> 01:00:51.560
like hey if you fill out the right forms and you do it the right way then I'll give it to you
643
01:00:51.560 --> 01:00:57.080
but you have to do it the right way right this is maybe the signal that he's sending to crypto
644
01:00:57.080 --> 01:01:02.440
in addition to the signal of like I want more legislation in this space unless he gets the
645
01:01:02.440 --> 01:01:07.960
legislation I'm not sure how much more the SEC is going to be able to do right and I think
646
01:01:08.440 --> 01:01:13.800
another very telling comment towards the bottom of this article is he says we don't have enough
647
01:01:13.800 --> 01:01:18.840
investor protection in crypto Gary Gensler said it's more like the Wild West and this definitely
648
01:01:18.840 --> 01:01:24.040
shows you the difference in mindset and disposition of people in crypto because he's saying this
649
01:01:24.040 --> 01:01:28.600
it's more like the Wild West as if it's a bad thing and Ryan you finish off every single
650
01:01:28.600 --> 01:01:33.960
bankless episode is we are heading west it's not for everyone but we are glad you are with us
651
01:01:33.960 --> 01:01:39.160
on the bankless journey and so kind of yes we don't have enough investor protection in crypto
652
01:01:39.160 --> 01:01:43.640
to sometime sometimes to some people when you say the words investor protection we hear incumbent
653
01:01:43.640 --> 01:01:50.680
protection not investor protection exactly it exactly it and we like the Wild West it's fun out
654
01:01:50.760 --> 01:01:57.000
here there's 10,000 x gains and red pulls who knows what comes next but we're here for it because
655
01:01:57.000 --> 01:02:02.280
we're self-sovereign and we're individuals in control of our own money it is the Wild West but
656
01:02:02.280 --> 01:02:07.160
we do have an investor protection that they don't see they think investor protection means like
657
01:02:08.040 --> 01:02:14.840
like regulatory action and new legal codes right like investor protection is an open source
658
01:02:14.840 --> 01:02:19.720
transparent financial system where you can view source in every asset you can see exactly
659
01:02:19.800 --> 01:02:25.080
what's inside of it that's investor protection right so yeah it's the Wild West but you know what
660
01:02:25.080 --> 01:02:32.360
I'll take that over the closed like financial system where I have no idea how the money is moving
661
01:02:32.360 --> 01:02:37.320
right like this is all open this is transparent that is our investor protection I wish they
662
01:02:37.320 --> 01:02:41.800
would acknowledge that more in some of these statements you know Senator Warren and even Gary
663
01:02:41.800 --> 01:02:47.720
Gensler's like take some of the good like that is coming out of this system we've built a more
664
01:02:47.800 --> 01:02:52.760
transparent financial system from the ground up and regulators again should be falling over
665
01:02:52.760 --> 01:02:57.080
themselves in support of a system like this it's going to make their jobs easier you know what the
666
01:02:57.080 --> 01:03:03.560
best investor investor protections are is is financial services built by code where no one is
667
01:03:03.560 --> 01:03:09.400
allowed to break the rules and so that code is enforced equally transparently across everyone
668
01:03:09.400 --> 01:03:14.520
and so there's no at the whole point about a theorem is that no one is the admin everyone
669
01:03:14.520 --> 01:03:20.120
is a user everyone is treated equally everyone can audit the code that is the best investor
670
01:03:20.120 --> 01:03:26.680
protections that money can buy it's code protecting like investor protections is a human to human
671
01:03:26.680 --> 01:03:31.160
thing where like oh there's like privileged information somebody has somebody like big wealthy
672
01:03:31.160 --> 01:03:35.000
whale has privileged information entices a lot of retail people and then and then rug pulls them
673
01:03:35.000 --> 01:03:40.520
and takes all their money in code if we can enforce that against that and I've never been rug
674
01:03:40.520 --> 01:03:46.040
pulled I've stuck to the the major defi apps like compound maker and on a I've never been rug
675
01:03:46.040 --> 01:03:52.920
pulled code has protected me from rug pulls and also my own due diligence and so to some degree
676
01:03:52.920 --> 01:03:57.640
like there's going to be the same tricks in every single financial market and we need to avoid
677
01:03:57.640 --> 01:04:03.320
scammers and fraudsters and all that but the lack of appreciation for the fact that code is protecting
678
01:04:03.320 --> 01:04:09.800
all of us is frustrating and but I also understand that's a complicated subject yeah I agree all right
679
01:04:09.800 --> 01:04:14.120
so that's what the take the U.S. is is taking right now it's a little bit of this a little bit of
680
01:04:14.120 --> 01:04:20.360
that some vitriol against crypto maybe some support kind of wishy washi definitely not a policy
681
01:04:20.360 --> 01:04:26.920
towards crypto yet but China definitely has a policy to crypto and that's I want crypto out of here
682
01:04:26.920 --> 01:04:31.480
we want crypto outside of our borders they've been putting pressure on minors on exchanges we've
683
01:04:31.480 --> 01:04:37.960
talked about that in in the past and they say the PBOC that's the people's Bank of China saying
684
01:04:37.960 --> 01:04:43.000
it's going to continue to keep high pressure on crypto trading David I just want to highlight
685
01:04:43.000 --> 01:04:47.800
our podcast that's coming out on Monday it's already available if you are a bankless premium
686
01:04:47.800 --> 01:04:53.400
member you can listen this podcast now we recorded it last week this is with a gentleman by the name
687
01:04:53.400 --> 01:04:59.000
of Richard Turin who wrote a book called cashless all about what China is doing their plans for
688
01:04:59.000 --> 01:05:03.640
digital currency a digital currency revolution as he calls it in China and something that's
689
01:05:03.640 --> 01:05:09.480
interesting that I learned from this book and from the podcast is that China's digital currency
690
01:05:09.480 --> 01:05:16.680
strategy is explicitly a deterrent against crypto currency okay they don't want capital flight
691
01:05:16.680 --> 01:05:23.560
they don't want a free money system that is outside of the PBOC's control inside of their borders
692
01:05:23.560 --> 01:05:31.480
so in addition to pushing it out they're actually trying to build a controlled centralized
693
01:05:31.480 --> 01:05:38.200
crypto alternative this is the China central the bank digital currency essentially it's
694
01:05:38.200 --> 01:05:45.080
explicitly part of their strategy instead of like not replacing it with you know they're replacing
695
01:05:45.080 --> 01:05:50.120
all of the crypto stuff with something that looks a little bit like crypto is digital in the same
696
01:05:50.120 --> 01:05:54.360
way but it's completely controlled and centralized that's their approach and it's a pretty smart
697
01:05:54.360 --> 01:06:00.680
approach if you are a you know centralized a you know authoritarian kind of power and you want to
698
01:06:00.680 --> 01:06:06.520
go down this route so anyway I opening podcasts fantastic podcasts I think we need to learn about
699
01:06:06.520 --> 01:06:13.720
China's approach because it's going to make waves in terms of what the US does next as well and
700
01:06:13.720 --> 01:06:18.280
it's going to be pretty important to the world yeah I can't recommend this podcast enough it opened
701
01:06:18.280 --> 01:06:23.560
my eyes to what really the true story is behind the China Chinese central bank digital currency and
702
01:06:23.560 --> 01:06:28.440
if you thought the last section made you like question a regulators competency about how to
703
01:06:28.440 --> 01:06:36.280
approach DeFi listening to this will make you question it even more yes how is all over it China's
704
01:06:36.280 --> 01:06:41.640
all over the central bank digital currency the recently the there was a I can't remember what it was
705
01:06:41.640 --> 01:06:45.880
but their contracts dude yeah they have smart contracts coming and meanwhile like not too long ago
706
01:06:45.880 --> 01:06:51.880
there was like a US banking regulations panel that talked that was headlined crypto currencies what
707
01:06:51.880 --> 01:06:57.480
are they even good for meanwhile China saw crypto and applied it to the central bank digital currency
708
01:06:57.560 --> 01:07:01.960
and is releasing one of the most powerful forces that this world has ever seen in decades
709
01:07:02.680 --> 01:07:08.920
as in the east and then meanwhile in the west people are questioning if if crypto is even useful
710
01:07:08.920 --> 01:07:13.960
is it just a fad and then just allocating like terrible regulation to it when they when they have
711
01:07:13.960 --> 01:07:21.560
forced themselves into a corner where their only option is to leverage DeFi in do combat Chinese
712
01:07:21.560 --> 01:07:25.720
bank digital currency I need to stop we're also going to explode well look man this is what happens
713
01:07:25.720 --> 01:07:31.240
when your average center is 65 years old right is exactly what it's nice nice um all right let's
714
01:07:31.240 --> 01:07:36.920
move on David so we got to burn through this all right well front is offering grayscale bitcoin
715
01:07:36.920 --> 01:07:42.200
trust that is a robo lender well front a lot of people use pretty cool to see them doing that
716
01:07:42.200 --> 01:07:49.320
as continuation of the story also Germany institutions they are allowed to hold I think up to 20
717
01:07:49.320 --> 01:07:54.680
million in crypto now so Germany is coming down the pike with some crypto friendly regulation
718
01:07:54.680 --> 01:08:00.680
legislation it's kind of cool you want to get this last one David yeah Richard no excuse me
719
01:08:00.680 --> 01:08:07.480
Ricardo Spagney the one of the original members of Manero not the OG Manero person because that's
720
01:08:07.480 --> 01:08:13.480
a very interesting story was actually arrested for things unrelated to crypto apparently defrauded
721
01:08:13.480 --> 01:08:19.160
a company in South Africa and was extradited to South Africa so basically he's considered basically
722
01:08:19.160 --> 01:08:22.920
the founder of Manero even on the technically inaccurate got arrested for unrelated to crypto
723
01:08:22.920 --> 01:08:27.080
reasons which is an interesting side quest of a story look there's still some shady people in
724
01:08:27.080 --> 01:08:32.600
crypto definitely have to acknowledge that for the regulators listing in here okay guys we're
725
01:08:32.600 --> 01:08:35.960
going to get to the takes in just a minute but before we do we want to thank the sponsors that
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all right guys and we are back into the ecosystem takes that have come out in the last week this
758
01:11:26.360 --> 01:11:30.600
one comes from Eric Conner who has a bunch of screenshots from a different Bitcoin Maxis and he
759
01:11:30.600 --> 01:11:36.680
says the bitcoin community has gotten so pathetic that they have actively begged regulators to
760
01:11:36.680 --> 01:11:41.880
classify eth as a security this has been going on for four years and then he has some examples
761
01:11:41.880 --> 01:11:46.920
and so he has some examples of you know some of the most like maximalist of the max bitcoin maxi
762
01:11:46.920 --> 01:11:55.400
camp samson mow from block stream Neil Jacobs Pierce Pierce came in for his last name talking
763
01:11:55.400 --> 01:12:00.600
all about how ether is a security and making jokes about how ethers are security and then asking
764
01:12:00.600 --> 01:12:05.640
Gary Gensler to classify eth as a security and i want the listeners to and here's why i feel so
765
01:12:05.640 --> 01:12:09.960
passionate about this i want the listeners to think about it the SEC is supposed to protect
766
01:12:10.680 --> 01:12:17.240
protect individuals investor protections who is protected if ether gets classified as a security
767
01:12:17.240 --> 01:12:22.920
or is if ether gets protect classified as a security is this just bitcoin maxi
768
01:12:22.920 --> 01:12:28.680
less being really happy that the second largest biggest threat to bitcoin is being classified as
769
01:12:28.680 --> 01:12:33.960
a security like who is it are they do they care about investor protections or are they trying to
770
01:12:34.040 --> 01:12:39.240
like you know cope with the fact that a theorem is extremely successful and so i really just want
771
01:12:39.240 --> 01:12:44.280
to shame on bitcoin maxis who are trying to protect their own bags by begging Gary Gensler to
772
01:12:44.280 --> 01:12:49.400
classify ether as a security when they should be talking focusing on themselves focusing on their own
773
01:12:49.400 --> 01:12:54.120
merits focusing on their own blockchain rather than looking over the fence and being jealous about
774
01:12:54.120 --> 01:12:58.760
all the cool things happening on a theorem and they get jealous about it and so they beg Gary Gensler
775
01:12:58.760 --> 01:13:03.080
to classify eth as a security because they're insecure about their bags that's my take about
776
01:13:03.080 --> 01:13:08.680
ariks take about the bitcoin maxi takes yeah and ultimately like i i would just say like it doesn't
777
01:13:08.680 --> 01:13:15.560
really matter what they think right they don't get this embarrassing this the cftc chair also pushed
778
01:13:15.560 --> 01:13:19.960
pushed back in general and this is partially in response to i think Gary Gensler's comments about
779
01:13:20.760 --> 01:13:27.240
certain iCOs being securities and he said hey like many cryptos are actually commodities and
780
01:13:28.120 --> 01:13:33.880
that cc has no jurisdiction over the things that are commodities bitcoin is a commodity cftc is
781
01:13:33.880 --> 01:13:40.200
set as much so as ether the cftc is as set as much so i'm not even sure why this is a conversation
782
01:13:40.200 --> 01:13:46.600
like maybe you could have this conversation in certainly 2015 2016 maybe 2017 but like
783
01:13:47.240 --> 01:13:55.160
this conversation has already been had right like it's over it's done the cftc you know are the
784
01:13:55.720 --> 01:14:02.520
regulators for ether the asset and bitcoin maxi don't get to decide so it just seems like a bunch of
785
01:14:02.520 --> 01:14:09.240
cope and i don't know man massive cope massive cope this is a stand samson mow is the guy behind
786
01:14:09.240 --> 01:14:14.440
liquid which is basically trying to be the ethereum version of bitcoin as a sidechain which is
787
01:14:14.440 --> 01:14:18.920
already just compromised on the values but like big big corners are known for being the the
788
01:14:19.560 --> 01:14:25.640
the crypt the cipher punks who are very anti regulation extreme like extremely nation state they're
789
01:14:25.640 --> 01:14:29.480
one of the anti nation state there's one of the reasons why this whole entire industry has that
790
01:14:29.480 --> 01:14:33.800
branding in the first place even though i don't agree with it yet they are begging the nation state
791
01:14:33.800 --> 01:14:40.120
to protect their incumbent investments by classifying eth as a security to me it's no different than
792
01:14:40.120 --> 01:14:46.360
the bankers having like regulation against like the same against our industry trying to protect them
793
01:14:46.360 --> 01:14:50.600
the bitcoin maxi's just trying to do it for their own purposes it's just embarrassing it's a
794
01:14:50.600 --> 01:14:54.840
compromise on their values compromise on their ethos and it's just a bad look for the space
795
01:14:55.800 --> 01:15:02.040
yeah i agree ultimately won't amounts anything yep i agree it's a bad look uh david let's let's take
796
01:15:02.040 --> 01:15:06.920
Jeff dormans takes what's his take away from everything that's going on so all of the news he
797
01:15:06.920 --> 01:15:12.600
said his internal slack is blowing up with tons of positive information about crypto but also
798
01:15:12.600 --> 01:15:17.960
negative information about crypto what's his take away david yeah care uh Jeff dorman we had him
799
01:15:17.960 --> 01:15:22.280
on to talk about uh coin base when coin base wouldn't public that was a fantastic episode his take
800
01:15:22.280 --> 01:15:28.600
away is that doesn't matter positive negative news every single news outlet and investor in the world
801
01:15:28.600 --> 01:15:33.720
is not now talking about digital assets every single day and he finishes this is up with betting
802
01:15:33.720 --> 01:15:38.760
against growth from here it would be insane and so this is why i've been saying like regulation
803
01:15:38.760 --> 01:15:43.800
it's finally here and it's bullish it doesn't matter what it is good regulation bad regulation
804
01:15:43.800 --> 01:15:48.680
we prefer good regulation it's bullish either way just because the attention is on the space
805
01:15:48.680 --> 01:15:53.880
they're not ignoring crypto any longer they're forced to reckon with it and that is bullish for
806
01:15:53.880 --> 01:15:59.640
the space for sure um let's do this take it's kind of a regulatory take i suppose but this is from
807
01:15:59.640 --> 01:16:06.040
just a young finance futures trading not allowed in germany in italy is one of the biggest
808
01:16:06.040 --> 01:16:11.800
advertisements for defy this year i could not agree more that finance squeeze we've been talking
809
01:16:11.800 --> 01:16:17.400
about right or finance has to delist assets uh is not available in certain countries that's just
810
01:16:17.400 --> 01:16:23.560
pointing the world to defy this is why we need defy we need something that is outside of the borders
811
01:16:23.560 --> 01:16:29.800
of a nation state that doesn't have a geographic jurisdiction or a geographic location that's just
812
01:16:29.880 --> 01:16:36.120
public freely available to anyone with an internet connection huge advertisement for defy
813
01:16:36.120 --> 01:16:41.320
and this also largely impacts finance smart chain just as well because the only on ramp to
814
01:16:41.320 --> 01:16:46.040
finance smart chain is through finance and so finance gets restricted finance smart chain gets
815
01:16:46.040 --> 01:16:50.680
restricted which is why we were always harping on finance smart chain in the first place because it's
816
01:16:50.680 --> 01:16:56.280
just of masquerading as decentralized even though it's actually not yep absolutely uh let's see
817
01:16:56.360 --> 01:17:01.560
this next take this is from tasha she has a whole thread about this i just thought it was a fantastic
818
01:17:01.560 --> 01:17:07.560
thread um and the crux of it is this maybe i'll read the first a twitter so the us is in big trouble
819
01:17:07.560 --> 01:17:13.560
with twin deficits and high debt we know that but few realize that fed issue digital currency us
820
01:17:13.560 --> 01:17:21.000
detoken can change the fate of america how she says grab a coffee and read on do not have time
821
01:17:21.000 --> 01:17:26.280
to read the entire thread but she makes the case that actually the biggest export from the us
822
01:17:26.280 --> 01:17:32.040
is not technology exports not a manufacturing export it's not like military arms dealing you
823
01:17:32.040 --> 01:17:39.080
know the biggest export is david a dollar the us dollar that's what the us is exporting to the world
824
01:17:39.080 --> 01:17:45.560
right now everybody wants the us dollar right now that's not necessarily a long term product
825
01:17:45.560 --> 01:17:52.600
so tasha says we might have like 15 to 20 years or so left to go on the us dollars reserve currency
826
01:17:52.600 --> 01:17:58.760
status but she said we the us should use that uh well well it well it can essentially and create
827
01:17:58.760 --> 01:18:04.920
it central bank digital currency of some some sort support crypto in some way and export this to
828
01:18:04.920 --> 01:18:10.520
the world to stay ahead if they don't per previous conversation man china will and they're in
829
01:18:10.520 --> 01:18:16.120
it to win it us has this asset why not use it uh they absolutely should i thought it's a brilliant
830
01:18:16.120 --> 01:18:21.800
take will include that thread in the in the show notes here the TLDR is that the american empire has
831
01:18:21.800 --> 01:18:28.360
its interests and it can use crypto to leverage those interests rather than fighting it and if it
832
01:18:28.360 --> 01:18:34.600
does choose to fight it is just going to hasten its own demise absolutely um all right david oh this
833
01:18:34.600 --> 01:18:39.480
is a good one yeah i thought this is like so we've been talking about eip 1559 by the way david how
834
01:18:39.560 --> 01:18:45.720
how much we burnt since the the start of this recording well you're looking that up i think eip 1559
835
01:18:45.720 --> 01:18:54.120
i said this uh is the ultimate jujitsu move for ethereum why because in order to copy it competitors
836
01:18:54.120 --> 01:18:59.560
have to get the one thing they've never had and that is actual block space demand david so you can't
837
01:18:59.560 --> 01:19:05.560
copy and paste this eip 1559 feature like sure you can start burning some of your transaction fees
838
01:19:05.560 --> 01:19:10.840
but you have to have transaction fees to burn in order for it to be meaningful now you're about
839
01:19:10.840 --> 01:19:15.000
to tell me the the number of eth that were that has been burnt since the beginning of this episode how
840
01:19:15.000 --> 01:19:21.560
much is it yes uh i'm gonna say it was eight hundred and eighty since when since we last talked i
841
01:19:21.560 --> 01:19:26.520
believe how much how much do you think is that now we're i think okay so i said two hundred well
842
01:19:26.520 --> 01:19:31.160
nine hundred and fifty how about that so gas prices have jumped significantly since then gas
843
01:19:31.160 --> 01:19:35.720
prices currently two hundred and seventy seven so something's going on yikes well and the most
844
01:19:35.720 --> 01:19:42.520
recent block that just got mine burned five ether we are at fifteen fifteen hundred ether we are at
845
01:19:42.520 --> 01:19:46.840
fifteen hundred ether what happened for the last few i don't know something's going on something's
846
01:19:46.840 --> 01:19:53.080
going on check the price and if teed yeah holy shit like is it up or down i have no clue but yeah
847
01:19:53.080 --> 01:19:57.720
uh for the last like ten twenty all the block all the blocks that i can see right now have burned
848
01:19:57.880 --> 01:20:03.640
more ether than issued that's insane that's insane what i don't know what's going on but bullish bullish
849
01:20:03.640 --> 01:20:08.280
okay i mean and and here's the thing that's not the price price is stable the thing that's impossible
850
01:20:08.280 --> 01:20:12.760
to emulate and the reason why this is a gigancy move for a theorem versus all ethikiller's other
851
01:20:12.760 --> 01:20:19.240
competitors is ethereum's biggest strength blocks based demand people will pay to get a transaction
852
01:20:19.240 --> 01:20:24.440
in and they've been building this for the last five or six years it's already flippant a bitcoin
853
01:20:24.440 --> 01:20:30.600
by far on that count um you like no other chain is even close in terms of transaction volume right
854
01:20:30.600 --> 01:20:37.720
like in terms of block space uh revenue or demand um ethereum is the only chain that can essentially pull
855
01:20:37.720 --> 01:20:45.560
off eip fifteen five nine and lose it and pump it into it's uh it's asset so dude game set match
856
01:20:45.560 --> 01:20:49.880
right i mean like you got to work hard and get that block space demand that's how you compete against
857
01:20:49.880 --> 01:20:53.720
uh ethereum if you want to do that yeah the the avalanche community has always been teasing a
858
01:20:53.720 --> 01:20:58.680
theory about how they implemented eip one five five nine on avalanche like nine months ago
859
01:20:58.680 --> 01:21:02.840
and in the first three hours of eip one five five nine going live on ethereum
860
01:21:03.640 --> 01:21:09.400
ethmore ether was burned then in all of nine months of avalanches eip one five five nine being live
861
01:21:09.400 --> 01:21:14.200
right and so like cool you guys got it first but like when as it takes two seconds for us to catch
862
01:21:14.200 --> 01:21:18.760
up with you once it goes live and that's the power of block space demand you got to put the hard
863
01:21:18.760 --> 01:21:23.800
work in and the hard work is block space demand uh so get there let's let's see this last take
864
01:21:23.800 --> 01:21:29.560
from hasu david once you read it out yeah hasu says success is a muscle every important upgrade that
865
01:21:29.560 --> 01:21:34.120
ethereum has successfully merged the beacon chain now eip one five five nine increases the
866
01:21:34.120 --> 01:21:39.240
chance that future important upgrades the merge charting block proposer slash builder separation
867
01:21:39.240 --> 01:21:45.080
will also be successful another way of framing it eth prices in a ton of execution risk i know
868
01:21:45.160 --> 01:21:49.880
because i was that was a big part of my own thesis every milestone makes that execution risk go
869
01:21:49.880 --> 01:21:54.760
down this is what we have been saying on bankless forever if you're cool with execution risk buy
870
01:21:54.760 --> 01:22:01.160
eth early but every time we successfully hard fork that execution risk goes down right and so you
871
01:22:01.160 --> 01:22:06.680
should plan for that accordingly in your valuation of ether and honestly at this point with the
872
01:22:06.680 --> 01:22:12.440
the beacon chain behind us in eip one five five nine behind us two very complicated updates in the
873
01:22:12.440 --> 01:22:18.360
rear view mirror the last major update is the merge and like maybe charting but like not that major
874
01:22:18.360 --> 01:22:24.280
in very distant off into the future like how much execution risk is left before people fomo and maybe
875
01:22:24.280 --> 01:22:29.480
that's why people have been definitely fomoing into ether right after eip one five five nine went
876
01:22:29.480 --> 01:22:36.920
live and ether went from 26 to 2800 in just a an hour or so success as a muscle ethereum is proven
877
01:22:36.920 --> 01:22:42.360
out that it executes upon its roadmap maybe late but it does execute and so betting against the
878
01:22:42.360 --> 01:22:47.800
ethereum at this point is just completely irrational again in my opinion in my there you go got
879
01:22:47.800 --> 01:22:54.840
nothing ad david what's exciting this week for you eip one five five nine sir i would like to go
880
01:22:54.840 --> 01:22:59.880
back two years and say like there was there was a time where eip one five five nine got introduced
881
01:22:59.880 --> 01:23:06.520
a few people like latched on to it you me anthony sazano air Connor who introduced it dc investor
882
01:23:06.520 --> 01:23:11.960
few others they all saw the power in this we all like road articles we made podcasts we tweeted
883
01:23:11.960 --> 01:23:17.320
about it we tried to do our best to shout from the rooftops like this is coming and now it's
884
01:23:17.320 --> 01:23:23.800
finally here which makes me feel really good is one important step forward to ether as ultra sound
885
01:23:23.800 --> 01:23:28.520
money and what really excites me that's specific and nuance other than just saying eip one five five
886
01:23:28.520 --> 01:23:35.160
nine is here is that eip one five nine has so much metric surface area that are so many new metrics
887
01:23:35.160 --> 01:23:40.360
that have come alive now that eip one five five nine is here ethburn rate the base fee the tip
888
01:23:40.360 --> 01:23:46.360
amounts like block the the how full the block is there's so many things and numbers and variables
889
01:23:46.360 --> 01:23:52.920
to talk about and honestly like what gives more people more confidence in in an unknown asset are
890
01:23:52.920 --> 01:23:58.520
like numbers and metrics to like consume and analyze and discuss and not only that it gives new
891
01:23:58.520 --> 01:24:02.600
people confidence it gives older people like us more things to talk about this is what i said
892
01:24:02.600 --> 01:24:06.760
earlier there's so many more metrics that we get to talk about on the weekly roll-up so like we're
893
01:24:06.760 --> 01:24:10.920
going to go back and like talk about how much eth is burn is probably going to be part of the
894
01:24:10.920 --> 01:24:16.040
the every single week since we last talked about how much eth was burned we're burned 70 more
895
01:24:16.040 --> 01:24:23.880
eth so that's pretty cool and so all of these metrics are legitimizing in of themselves even though
896
01:24:23.880 --> 01:24:28.040
we literally invented them out of thin air like we just the industry invented this thing called
897
01:24:28.040 --> 01:24:32.920
crypto economics ethereum invented this thing called eip one five five nine now we've invented
898
01:24:32.920 --> 01:24:37.160
this metric called ethburn rate and now because we get to talk about it it's legitimizing it's a
899
01:24:37.160 --> 01:24:42.120
cool people get to talk about it i can't i can't wait to read all about it in Goldman Sachs next
900
01:24:42.120 --> 01:24:46.920
white paper on why you should invest in e we see burn metrics right in these in these like analyst
901
01:24:46.920 --> 01:24:52.040
papers now super cool yeah right i think i have a guess what you're excited about why don't you tell me
902
01:24:52.280 --> 01:24:58.760
look man it's got to be eip 1559 really eip 1559 roll-up and i'm just going to riff on what you said
903
01:24:58.760 --> 01:25:08.200
i feel like you know coming off of the the 2017 uh 2018 crash right um like everyone i think a lot
904
01:25:08.200 --> 01:25:13.560
of people have recognized that the ethereum network was amazing and there was this whole mantra
905
01:25:13.560 --> 01:25:19.560
of ethereum not eth like ethereum the network is amazing ethiasat who cares that thing sucks
906
01:25:19.640 --> 01:25:23.800
by bitcoin instead just a means to an end and like some of us
907
01:25:24.600 --> 01:25:32.120
felt like that was a massive mistake right like a like it didn't even make sense doesn't make
908
01:25:32.120 --> 01:25:39.000
economic sense if you are striving to become a strong highly secure economic network you need the
909
01:25:39.000 --> 01:25:44.440
price of eth to reflect that as well that's where you get your economic security and so we pushed
910
01:25:44.440 --> 01:25:50.280
back against that um i think there was this concept david you remember of economic abstraction right
911
01:25:50.280 --> 01:25:55.080
the idea that we don't even need eth to even pay for minors why is it even there it can collapse to
912
01:25:55.080 --> 01:26:00.920
basically zero and no one would care we can use stablecoin or maybe bitcoin to pay minors we pushed
913
01:26:00.920 --> 01:26:08.600
against that well now we no longer have economic abstraction like i think we've never had it in reality
914
01:26:08.600 --> 01:26:15.080
but the protocol has enshrined you know what's the uh opposite of you know abstraction like
915
01:26:15.080 --> 01:26:20.840
concreteness yeah now the economic concreteness of eth the asset i don't think that means
916
01:26:20.840 --> 01:26:25.960
plastic i don't think it's going to stick either but like that's what we have and this is um
917
01:26:26.920 --> 01:26:32.040
this is really exciting because i think there's been a renewed emphasis at the protocol level on eth
918
01:26:32.040 --> 01:26:39.720
the asset that we've been pushing for since uh 2018 2019 2020 2021 now it's here it's being baked
919
01:26:39.720 --> 01:26:44.920
into the protocol and it's just super exciting to see and like this is why it's important is because
920
01:26:44.920 --> 01:26:50.600
the endgame we want to build a bankless open financial system for everyone uh and in order to do
921
01:26:50.600 --> 01:26:56.600
that we need high security right we need uh the economic bandwidth to support all of the world's
922
01:26:56.600 --> 01:27:02.200
assets all of the world's transactions and uh man that shinken armor that ethad we're ahead of
923
01:27:02.200 --> 01:27:08.680
great network didn't have a great asset completely like equalizing here right now you got the you
924
01:27:08.680 --> 01:27:13.640
got the yin in the a you got a great network you also have a fantastic asset and people are starting
925
01:27:13.640 --> 01:27:17.480
to realize that and i think they'll realize it more as those metrics are going to be displayed
926
01:27:17.480 --> 01:27:22.200
everywhere and we're going to keep refreshing those burn pages to see how much eth that we're
927
01:27:22.200 --> 01:27:27.160
going to birch and then it's onward towards the merge that's the next live stream we're doing David
928
01:27:27.960 --> 01:27:32.200
in the live stream this morning last question for you uh did you hear the dates what did like the
929
01:27:32.200 --> 01:27:38.040
anticipated dates for the eth to merge and the end of proof of work what do you think that's going
930
01:27:38.040 --> 01:27:43.960
to be yeah Justin Drake who's uh famous for giving out dates a little bit ahead of consensus said
931
01:27:43.960 --> 01:27:49.480
q1 2022 which is the date i've been giving out more or less if we hit it in q1 2022 that would be
932
01:27:49.560 --> 01:27:55.800
actually well the first uh hard fork that we actually got on schedule for some reason maybe i'm
933
01:27:55.800 --> 01:28:02.520
naive i actually believe in it um so q1 2022 all right you know i thought uh we had a good shot of
934
01:28:02.520 --> 01:28:08.840
hitting july uh for eip 1559 and that was like some early estimate like two months off so still
935
01:28:08.840 --> 01:28:14.600
pretty close right and i think this is going to be if it's not q1 2022 it's got to be q2 right
936
01:28:14.600 --> 01:28:19.000
it's going to be really close to q1 anyway just like jazzy who said success is a muscle and now
937
01:28:19.000 --> 01:28:23.240
our core developers are getting better and better and better at hitting hard fork deadlines
938
01:28:23.240 --> 01:28:27.080
yeah totally even though there's not there's not there's on a deadline but like not delaying too much
939
01:28:27.800 --> 01:28:31.640
David let's talk meme of the week man what is the meme of the week i'm going to share my screen
940
01:28:31.640 --> 01:28:36.760
this is one from robert lester and some of the defi builders some of the crypto native builders
941
01:28:36.760 --> 01:28:41.800
right so robert lester randomly treats out who is in crypto in new york city right this second
942
01:28:41.880 --> 01:28:46.920
and wearing blue wearing blue i need you for a mission and then later haiden adam's tweets out
943
01:28:46.920 --> 01:28:53.000
this photo how it started and then new photo how's it going so the first photo is that that weird
944
01:28:53.000 --> 01:28:58.200
meme going around of bill marie plus three other actors kind of just like all awkwardly standing
945
01:28:58.200 --> 01:29:04.040
weirdly plus with increasing outfits and there's this one lady in this like very very vibrant
946
01:29:04.040 --> 01:29:08.840
fiery blue suit uh look like an absolute rock star and then like everyone kind of has their own
947
01:29:08.840 --> 01:29:13.480
deal going on nothing really makes any sense feeling on this is definitely a vibe going on definitely
948
01:29:13.480 --> 01:29:17.720
a vibe every if there's looks like there's four vibes going on for every four actors and then
949
01:29:18.280 --> 01:29:23.880
and then robert uh and uh excuse me haiden adam's tweet this tweets this out we got from from left
950
01:29:23.880 --> 01:29:28.440
to right we got haiden adam's we got cane from synthetics we got james johnson from pleaser dale
951
01:29:28.440 --> 01:29:33.880
and then we got robert leshner on the right and they are just recreating the meme which is hilarious
952
01:29:33.880 --> 01:29:40.040
because this is a decentralized industry cane is from australia haiden is from new york robert
953
01:29:40.040 --> 01:29:45.320
leshner i'm pretty sure it's from san francisco uh and they they all made they all made it happen
954
01:29:46.280 --> 01:29:51.880
and then interestingly uh cane was the only person that had a white haired crypto punk before
955
01:29:51.880 --> 01:29:56.680
this image but for some reason they all decided to buy white haired crypto punks and put it as their
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01:29:56.680 --> 01:30:01.000
avatar and so now this is the white haired crypto punks moment the other cool interesting like a
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01:30:01.000 --> 01:30:05.720
little bit little easter egg in this photo is that bill marie for some reason is wearing two watches
958
01:30:05.720 --> 01:30:11.560
and so is robert leshner the person that's bill marie's correlate yeah robert leshner got two washes on
959
01:30:11.560 --> 01:30:16.840
it was just i think this is a fun little moment uh when when robert leshner tweets out who's in
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01:30:16.840 --> 01:30:21.000
new york city wearing blue right this moment we get james johnson showing up looking like an
961
01:30:21.000 --> 01:30:26.680
absolute g in a blue suit uh i thought that was pretty cool yeah that's awesome all right guys
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01:30:26.680 --> 01:30:33.240
this has been the weekly roll up special edition e ip 15 5 9 as always none of this was financial
963
01:30:33.240 --> 01:30:39.400
advice ethos risky crypto is risky all of defy is risky you could definitely lose what you put in but
964
01:30:39.400 --> 01:30:46.520
we are headed west and we like it we're okay with heading west uh thanks for joining us on the
965
01:30:46.520 --> 01:30:52.120
bank list journey see later hey we hope you enjoyed the video if you did head over to bankless
966
01:30:52.120 --> 01:30:57.720
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01:30:57.720 --> 01:31:03.880
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01:31:20.040 --> 01:31:25.480
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974
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for watching and being on the journey as we build out the bankless nation
