The Crypto Assets market continued to Fluctuation on Thursday, with Bitcoin regaining $62,000 support after midday, alts long pump, with meme zone s related to the U.S. election leading the pump trend.

Bitcoin rebounded from a daily low of $60,623 in the early morning and pumped 3.4% to a daily high of $62,663 before falling back to the $62,500 support level. At the time of writing, BTC is trading at $62,395, a 24-hour pump of 1.15%.

The alts market was pump fall mixed on the day, market capitalization the long of the top 200 Token all recorded pump. Akash Network (AKT), Livepeer (LPT) and Arweave (AR) pumped by 17.4%, 15.3% and 11.9%, respectively. Render (RNDR) and Toncoin (TON) both pumped 11%. FTX Token (FTT) fall the most, down fall 7%, Tellor (TRB) fall 5.4%, and GuildFi (GF) fall 4.2%.

"Bitcoin has rebounded from its recent lows this morning and is poised to challenge its previous peak of $65,000," Secure Digital Markets analysts said. Overall volume, including spot and derivation markets, fell for the first time in seven months, down 44% to $6.58 trillion. The decline was attributed to heightened geopolitical tensions and reduced investment in U.S.-listed Spot ETF, which cast a shadow over the Crypto Assets market. ”

The U.S. labor market continued to cool, with the latest jobless claims coming in at 231,000, up 22,000 from the previous week and the highest level since August, pushing U.S. stocks pump. This suggests that many long see this as a positive sign that one or long rate cuts are still possible in 2024, although long Fed officials have recently reiterated the possibility that Intrerest Rate need to remain high for longer, citing resistance to Inflation.

However, Bert Dohmen of Dohmen Capital Research said that the recent sharp rise in the M2 money supply means that the Fed will not be able to achieve the expected rate cuts this year, and investors should start preparing for this possibility.

Dohmen said the Fed is "caught between a rock and a rock" as they are forced to finance a record deficit in Treasuries while continuing to fight stubbornly high inflation. "The Fed was forced to step on the gas pedal to finance the record deficit of the US Treasury," he said. "They know it's going to trigger Inflation, but they don't have a choice."

At the close, the S&P, Dow Jones, and Nasdaq were all pump, pump 0.51%, 0.85%, and 0.27%, respectively. The dollar index falls 0.5% from its daily high to 105.218 at press time as the market improved, while the US 10-year Treasury yield falls 142 basis points from its daily high to 4.457%.

Rebound strongly from memecoin MAGA

After US Republican presidential candidate Donald Trump commented on Crypto Assets yesterday, the Trump-themed meme coin MAGA (TRUMP) surged 78% on May 9, with its 24-hour volume jumping 620% to $281.8 million, and TRUMP has a market capitalization of $281.8 million, ranking 248th on CoinGecko. At press time, the Token became the 13th largest meme coin by market capitalization.

Mr. Trump's presidential campaign does not currently accept encryption donations, but he said he was open to it during an impromptu audience Q&A at a dinner yesterday. When asked, "Can we donate with Crypto Assets?" He replied: "If you can't do it (donate with encryption), I'll make sure you can."

TradingView data shows that MAGA is trading at $6, pump 46% in the last 24 hours.

Other Token related to U.S. politics also pump on May 9, led by Donal Tremp (TREMP), which recorded a triple-pump Token and pump 136% in the last 24 hours. Independence Token (RFKJ) — the Token dedicated to supporting the presidential election of Robert F. Kennedy Jr. — pumped 24.4% over the same period.

The meme coin achieved a huge rise in 2024, becoming the encryption narrative with the highest returns in the first quarter.

According to anonymous X user Crypto Koryo, CoinMarketCap listed a record 138 ERC-20 MEME coins in April 2024, a 666% rise from 18 in April 2023.

"The number of Memecoin ERC-20 Tokens will rise parabolically in 2024," the analysts said. Last month, 138 new memecoins were registered on CoinMarketCap, compared to 18 in April 2023. ”

As of press time, there are more than 2,230 memecoins included on CoinMarketCap, with a total market capitalization of over $52,325, representing 2.15% of the global Crypto Assets market capitalization.

The overall market capitalization of Crypto Assets is currently $2.31 trillion, with Bitcoin dominating 53.3%.

"The next rising may have begun"

Market analyst Rekt Capital said the next rise may have already begun, as "the end of a long-term downward trend of more than -20% correction over the past year and a half has often been the key to future price reversals."

He added that "following last week's descending candlestick, Bitcoin is still only supporting the range lows," a fact that suggests the bottom may have arrived.

Twitter mega V il Capo Of Crypto also believes that Bitcoin could form a solid support base at current levels and could start moving higher soon. "After deviating from the range lows, the price rebounded, hit the resistance level and is now retraced into an interesting supporting area, which could form the first higher low," he wrote on Twitter. ”

"The price is between $59,000 and $61,000 with strong demand and the indicator looks big long bullish, so there could be Rebound, and if BTC breaks above the $65,000 resistance level, I will be looking for $68,000 to $69,000 as the first target and $74,000 to $75,000 as the second target," the analyst said. ”

By Jason Choi

Compiler: Deep Tide TechFlow

I read some blogs about meme VCs. There are some interesting points in it and sincere respect to all bloggers.

But I personally think that the existence of these articles is exactly why people trade memes. No, memes aren't a cultural Trojan horse at the moment, and I don't think they're even a particularly effective go-to-market strategy.

I understand the need to describe memes in this form in order to make partners feel comfortable – and I've had partners too. But let's face it, you and I trade memes for one thing: "Fuck it".

Let me explain. It's just a continuation of a larger trend you're seeing in developed countries around the world: the future promised to older generations is no longer available to young people. The dream of my parents' generation was to have a good and stable job, buy a house, and raise two children. When I was a college student, the most common dream was to become a billionaire tech founder. **

Why?

On the one hand, because everyone has watched "Social Web" and completely missed the point of the movie, worshipping Zuckerberg as an idol. (It's the same with The Wolf of Wall Street, but that's another topic.)

But it could also be because the median house price has pump 80% since 1985 after Inflation factor, and the house-price-to-income ratio for households is long twice that of our grandparents.

It may also be because 50% of people today earn less than their parents at the age of 30, compared to more than 90% in 1940.

It may also be because the world seems to be richer than ever, but somehow young people inherit less than half of what it used to be.

Or maybe it's because just working hard and being a good employee no longer gives you the same opportunities as your parents.

So, if there's no way to move up the social ladder and you're just barely making ends meet, why not give it a try and see if you can become the next dropout billionaire entrepreneur?

Then, Crypto Assets are like an extension of Trenbolone. Today, nearly two-thirds of young adults believe that the stock market is a great way to build wealth. But 90% of young people are penniless because of the pumping cost of living and cannot invest at an average rate of return of 7% per year.

So, because of the huge Fluctuation of Crypto Assets, you'll hear stories of people getting rich overnight, and it's coming out like an unresolved game – if you're Satoshi early enough and maybe a little daring, you have a chance to make a good living.

To the outside world, this is longer more decent than casinos, and for us Satoshi boys and girls, it stimulates their wisdom more.

You might say, "Well, actually... Since the Dutch tulip bulb merchant in the 1600s, humans have been attracted to the speculative game of 'making quick money'! You should read Devil Takes the Hindmost"

But the point I'm trying to make is that phenomena that have historically been driven by greed are now more and more long driven by despair. Want to feel the vibe? Talk to 2 long 0-year-olds in Hong Kong, South Korea, the United States, and more.

In order to live comfortably, young people must make life decisions that are further and further away from the risk curve.

And they know that much of this is due to the financial decisions made by the previous generation.

Now, this generation also wants to take the encryption game away from them through regulation.

They canceled the ICO on the grounds of protecting you, so when the coins finally listed, you were able to buy them at 500 times the seed price.

They call it "rat poison" while charging generous fees from customers who buy Crypto Assets.

Oh, these customers? Yes, the same cabal – pumping billions into venture capital funds in an attempt to privatize increasingly long games.

That's why people trade memes.

Yes, it's greed, it's "buying tokens that don't have a massive oversupply", a gambling game designed for the ADHD generation who grew up with their brains corrupted by smartphones.

But it's also a "fuck it - nothing else works" attitude.

But more importantly, it's a "fuck it" – a counterattack to a generation they think has failed.

But more importantly, the phrase "fuck it" is being uttered by young people to a generation that they believe has failed them. It is this generation that is now trying to take away what seems to give them a way out, through incomprehensible regulations and increasingly privatization opportunities.

Maybe I'm wrong.

Maybe meme really is the next great go-to-market strategy for startups.

This article is from "SBF maintains his innocence as he trades rice in jail"

Original Author: Jesse Coghlan

Compilation: Odaily Planet Daily Husband How

This is SBF's first face-to-face conversation with the media since being incarcerated at the Brooklyn Metropolitan Detention Center (MDC) in August 2023. SBF spoke with Puck News' William Cohan in an interview published May 9, organized by SBF's mother, Barbara Fried.

According to the interviews, SBF's diet is predominantly vegetarian. Because MDC's vegetarian meals made other inmates feel "smelly like feces," he lived mainly on beans and rice, and rice had "become a trading coin within MDC." SBF even jokingly stated: "Arbitrage opportunities in prison are longer better than his previous life as a high-frequency trader." ”**

According to Puck News, SBF has lost a lot of long, losing 25 pounds (11 kilograms) and "no longer that fat, less neurotic, less restless, and no more bags under the eyes." And during the interview, SBF stared into Cohan's eyes almost all the time, which he had rarely seen before. And, he sadly admits that he has "learned to disguise himself" and is doing well.

SBF's living quarters are large open-plan dormitories that MDC once built for female inmates and live with 35 other male inmates — half of whom, according to reports, are murderers who have compromised with the government. However, according to SBF, life in prison was very boring, with only four TVs and a tablet without an internet connection for entertainment, and he had to play games on the tablet. Although there are long murderers who live with the cellmates, SBF does not worry about his own safety, but often does not sleep well because of his cellmates' frequent wake-up calls - they always ask SBF if he has long small amount of rice **** and wants to barter. **

Although SBF's prison life is rich and longing because of "rice", he has never given up on exonerating himself and has always insisted that he is a "scapegoat". Last month, SBF filed a notice saying he was appealing fraud and Money Laundering charges.

In addition, SBF talks to his new lawyer for an hour or so almost every workday – after taking approved prescription medications, SBF is very clear in communication.

SBF insisted in the interview that he was framed as a scapegoat for FTX's bankruptcy and argued that his only negligence was to put FTX in a position vulnerable to bank bank runs and malicious actions by competitors, and that reasonable penalties should be civil, not criminal.

Journalist Cohan noted that SBF still does not believe that it has committed a crime and portrays itself as an innocent participant who has not been given enough opportunity to consult with prosecutors. And SBF is not sorry for being convicted of helping embezzle approximately $8 billion in client funds.

**SBF stressed that the team of lawyers who handed over the company to FTX was responsible for convicting him of the company's bankruptcy; If he had stayed in the leadership role at FTX, the company would not have gone bankrupt, but would have been a thriving company worth $80 billion. He added that after his lawyer convinced him that there was a conflict of interest in running both the trading company and FTX, he should have worked harder to find someone other than his ex-girlfriend Caroline Ellison to lead Alameda, or simply ignore them and continue to run both companies.

SBF has asked to remain with MDC until he files an appeal, which should be in July. But by law, SBF can be transferred at any time, most likely in a California state jail away from his parents. **If this happens, SBF could travel across the U.S. in four months on a prison bus to reach the prison in California. **

Written by Vishal Kankani, Investment Team Leader, Multicoin Capital

Translation: Golden Finance xiaozou

May 9, 2024 Multicoin announced that it is leading a $7 million seed round of Bitcoin native app platform Arch. Arch unlocks the potential of no-bridge DeFi (Decentralized Finance) on the world's most valuable Blockchain Bitcoin. Also participating in this round are OKX Ventures, Big Brain Holdings, Portal Ventures, CMS Holdings, Tangent, and others.

For nearly a decade, Bitcoin has operated like digital gold. While there was talk of enhancing smart contracts more long than a decade ago, efforts have been futile, in part because a large portion of the Bitcoin community believes that the trade-offs could jeopardize Bitcoin ultimate mission to become the largest non-sovereign coin.

The prevailing view in the Bitcoin community at the time was to abandon all programmability and innovations related to the scaling of other chains to maximize their potential without sacrificing the ultimate vision of a non-sovereign coin. The emergence of Ethereum and other smart contracts platforms is optimistic about this opportunity.

Smart contracts platforms have been around for a decade. Some smart contracts primitives, such as DEX exchanges, lending markets, and stablecoins, have achieved their own product-market fit. They are seen as a fundamental part of a well-functioning Blockchain ecosystem.

Prior to the Taproot upgrade in November 2021, Bitcoin's smart contracts capabilities were very limited. The Taproot upgrade makes it easier for developers to write complex scripting features by increasing the witness field shorter to about 4MB. This allows developers to script the following:

• Atomic swap transactions
• Multi-signature wallet
• Conditional payment

Later, in July 2022, Casey Rodarmor released the "Ordinal Theory," a satoshs numbering scheme that allows individual satoshs to be tracked and transferred, unlocking the ability for users to "inscribe" arbitrary data directly into Bitcoin transactions, including images, text, games, and more, unlocking full-chain NFTs on Bitcoin. These NFTs don't have to be jpegs or songs, but can also be proofs of state for other chains.

The impact of the Taproot upgrade and the Ordinal theory is so great that developers are experimenting with Bitcoin on a large scale for the first time in a long time.

1. Bitcoin development status

At the time of writing, there are longest teams working on various studies – rollups, drive chains, sidechains, and many more – to scale Bitcoin and make it more Programmability. Most of the long in these projects refer to themselves as "Bitcoin Layer 2", which in some cases is a rather broad term. Some of these projects are available today, while others are yet to achieve breakthroughs in the future, such as BitVM, OP_CAT, etc.

In this area, teams have a clear set of design trade-offs. A few important variables related to design are:

• Hosted mode
• Programmability *Extended

In our view, in the short term, the first two points are the right trade-offs:

• Build natively on Bitcoin – can support interaction with Decentralized Finance without the constraints of additional trust assumptions other than Bitcoin.
• Focus on making Bitcoin more Programmability in self-custody mode.

The typical bitcoiner should be a security freak. When it comes to Not your keys, not your coins, Bitcoin users are the most paranoid on the planet. Bitcoin holders should not be expected to move their BTC to a new multisignature, give up even a little bit of self-custody, or worse, take the risk of bridges. We are convinced of this because WBTC and tBTC have been around for longest years, but cumulatively account for less than 1% of the total amount of Bitcoin. There simply isn't enough market demand to take on the risk of bridges/centralization and realize programmability benefits.

Also, we see that most of the TVL on Ethereum resides on L1 instead of L2 like Base, Arbitrum, or Optimism.

To truly unlock Decentralized Finance on Bitcoin, developers need to come to the user's home base – Bitcoin L1.

Why focus more on BTC Programmability than scalability?

As a developer, if all you want is to create a fast Blockchain, there are quite a few alternatives like Solana with a thriving developer ecosystem and more mature market infrastructure. Even with the most forgiving lens on the current state of Bitcoin technology, we are not ready to achieve a high-throughput chain without sacrificing custody, which, as mentioned above, is not possible for longest bitcoiners. In this regard, most long developers who build on Bitcoin are "allied with Bitcoin" and want to build the world's most secure Blockchain, not a multisignature masquerading as L2. Within Bitcoin's current technical capabilities, we believe the right order of action is to prioritize Programmability and push further along the roadmap for speed and scale.

2, Bitcoin native application on Arch

Arch is building the first Bitcoin native application platform. The Arch network is currently in beta and is expected to go live on Mainnet in a few weeks.

Arch, a decentralization execution layer focused on enhancing Bitcoin's programmability, makes several interesting trade-offs in Bitcoin expression design:

• It acknowledges that holders of large long Bitcoin will not abandon escrow to multisignature (almost all Bitcoin L2 are trusted long sign).
• The core architecture allows spot trading takers to interact with the application without taking on new trust assumptions; However, makers will face additional trust assumptions (makers are typically professional profit-seekers who explicitly take risks, rather than principled users who hold Bitcoin for self-sovereign reasons).

Technically, Arch introduces smart contracts-like functionality to Bitcoin Layer 1 through a complex architecture that leverages a decentralized network of validators Node and a purpose-built zero-knowledge Virtual Machine (zkVM) – ArchVM. The following is the general lifecycle of a transaction (technically related) on the Arch network:

• ZKVM: The core of the Arch network is ZK-SNARKs (ZK proofs), where ZK-SNARKs verify transactions and ensure provably secure application execution. ZKVM is a dedicated virtual machine that executes applications and generates encryption proofs that prove the correctness of execution. It is powered by Risc0.
• Decentralization validators Network: The generated ZK proof is then verified by Arch's Decentralization validators Node network. The network plays a vital role in maintaining the integrity and security of the platform. By relying on a decentralization architecture, Arch works to ensure that the verification process is not only secure, but also resistant to censorship and central point failures.
• Integration with Bitcoin Layer 1: Once the ZK proof is verified, the validator network can sign unsigned transactions. These transactions, including state updates and asset transfers determined by the application logic, are eventually passed back to Bitcoin. This final step completes the execution process, and all transactions and status updates are finalized directly on the Bitcoin Blockchain.

While other projects are positioning themselves as Layer 2, we think Arch is clearly Bitcoin native. Arch uniquely positions itself as a Bitcoin native application platform, running directly on Bitcoin Layer 1. Arch's direct manipulation of Bitcoin's main layer eliminates the complexity and inefficiencies typically faced by L2 solutions, allowing users to directly benefit from Bitcoin's security and liquidity while exploring Arch's ability to scale.

3. Develop and build on Arch

In the short term, Decentralized Finance applications (such as lending, DEX exchanges, and Ordinal marketplaces) are clearly possible to build on Arch. It would be longer to be able to swap asset swaps, collateralize lending, and earn BTC yield without trust.

Also, it would be great if high-end collectibles could fully reside on the most valuable Blockchain (Bitcoin) known to man. We expect that the world's largest digital collection will reside on Bitcoin, which in itself is a huge technological breakthrough that will usher in the era of Internet-native finance. Xu long Ordinals collectors clearly value this.

Several projects in the Bitcoin ecosystem have already started migrating to Arch. Recently, Bitcoin lending marketplace Liquidum began to integrate liquidity pools, leveraging Arch to support instant liquidity lending and fungible token pools – while Bitcoin, or even Discrete Log Contracts (DLC), does not offer native support. As of this writing, there are longest 20 projects developing on Arch's devnet, involving stablecoins, DEX exchanges, lending markets, and more. With the growing excitement about Bitcoin, the Arch Foundation plans to support the growth of the ecosystem and fund a range of projects with the upcoming Hacker Marathon.

4, the next chapter of Bitcoin

Supported by the Taproot upgrade and Ordinal theory, we are witnessing unprecedented interest in the Bitcoin ecosystem. For the first time in 15 years, there has been an active and tangible effort to make Bitcoin more Programmable without compromising its vision of a non-sovereign coin.

Arch is the first Bitcoin-native application platform to unlock bridge Decentralized Finance on the world's most valuable Blockchain Bitcoin. Arch emerged as a direct response to the Bitcoin community's desire to leverage Bitcoin's underlying security and Liquidity to enable more complex applications, as seen in other Programmability on-chain such as Ethereum and Solana. By providing a Bitcoin Programmability platform, Arch aligns with the vision and principles of the Bitcoin community and provides an innovative approach that enhances Bitcoin utility while maintaining Bitcoin integrity.

Arch invites people to take a fresh look at the world's largest and most secure Blockchain, bringing the advancements and innovations of other blockchains back to Bitcoin.

WisdomTree, the issuance of Bitcoin spot trading-traded funds (ETF) in the United States, announced the expansion of its WisdomTree Prime app to users in the New York area.

Expansion of custody and stablecoin services

On the heels of WisdomTree's recent concession from the New York State Department of Financial Services (DFS), the company was granted limited purpose trust status under the New York Banking Act.

The charter authorizes asset management firm WisdomTree to conduct custody of digital assets, including the provision of digital wallet services, the issuance and trading of stablecoins approved by the New York State Department of Financial Services (DFS), and the management of reserves of these stablecoins through its newly formed subsidiary, WisdomTree Digital Trust.

According to the asset manager's statement, the trust charter and additional authorizations granted to WisdomTree Digital Trust have enabled WisdomTree Digital Trust to enhance its customer protection measures, particularly with regard to the safe custody of assets.

WisdomTree Prime App & Visa Debit Card Debuts in New York

The launch of the WisdomTree Prime app in New York coincided with the recent launch of the WisdomTree Prime Visa debit card issuance by Stride Bank.

According to the Bitcoin ETF issuance agency, users will be able to use the card to make purchases using their existing balance in their digital Wallet wherever Visa is accepted, essentially bridging the gap between personal financial management and digital asset investments.

Will Peck, head of digital assets at WisdomTree, is excited about the company's achievements:

"Since we debuted in state-specific app stores last summer, we've gained significant momentum in longest areas, including the launch of new digital funds, payment capabilities, and partnerships with regulators like the New York State Department of Financial Services. Our goal is to empower consumers to use digital assets in their daily financial lives. We are excited to provide access to the app to retail investors in New York as we recognize the rapid rise of the digital asset market in the region, which we believe will have a significant impact on WisdomTree Prime." ”

In addition to its launch in New York, the WisdomTree Prime app has been launched in longest states, including Connecticut, Delaware, Idaho, Louisiana, Maine, Nevada and Ohio, bringing the total number of states covered to 41.

Brief Overview:

• Deutsche Bank issued a risk warning for USDT operations in USD, highlighting stability issues.

JPMorgan Chase & Co. has also questioned Tether's dominance and regulatory issues.

• Despite facing criticism and potential new regulation, the Tether CEO defended his role.

Deutsche Bank's research department has sparked an important discussion within the financial industry with its latest analysis of stablecoins.

The study likewise points out possible risks in Tether's USDT operations.

The study looked at 334 coin pegs since the 19th century and observed that only 14% of them have been consistently stable. This view casts doubt on the long-term stability of stablecoins like USDT, which are designed to maintain a fixed value with fiat coins such as the US dollar.

Tether's response to Deutsche Bank's report:

In particular, stablecoins like USDT provide traders with a stable asset option in typical market Fluctuation situations, which has a crucial impact on the Crypto Assets market. The market capitalization of USDT has exceeded $100 billion, and its daily volume regularly exceeds that of Bitcoin.

Nonetheless, Deutsche Bank's report challenges Tether's operational stability and transparency, and reviews a number of historical regulatory controversies that have called into question its reliability.

Back in 2021, Tether was fined $41 million by the Commodity Futures Trading Commission (CFTC) for making false statements about the adequacy of its reserves, as well as a $18.5 million settlement protocol with the New York State Attorney General. These incidents have exacerbated ongoing doubts about Tether's financial strength and overall credibility.

Bank analysts have highlighted that historically surviving linked coin are backed by strong reserves, enjoy high credibility and are heavily regulated – qualities they believe long well-known stablecoin lack. The dramatic failure of Terraform Labs' TerraUSD and its sister Token Luna, wiping $40 billion from the encryption market, is an example of potential instability.

Analysts at banks point out that historically sustainable pegged coins are often backed by strong reserves, highly creditworthy, and subject to strict regulation, qualities they believe are missing from longest well-known stablecoins. For example, the catastrophic collapse of Terraform Labs' TerraUSD and its related Token Luna, which resulted in a $40 billion loss in the encryption market, is an example of potential instability.

In addition, the report notes that Tether dominates a market characterized by speculation and a lack of transparency. This market monopoly, coupled with doubts about its compliance record, could pose a broader risk to the entire Crypto Assets ecosystem.

Also in February, another bank, JPMorgan Chase, also expressed concern about Tether's USDT rise dominance. According to DefiLlama, USDT accounts for more than 69% of the stablecoin market.

USDT dominates | Source: DefiLlama

Despite these challenges, Tether's CEO, Paolo Ardoino, remains optimistic about the outlook.

"Tether's dominance in the market may be seen as a 'negative' for competitors looking to achieve similar results, including banking, but it has never been a negative for the markets that rely on us the most," Ardoino noted. We work closely with regulators around the world to educate them about this technology and provide guidance on how they should view it properly. ”

At the same time, the United States is working on stablecoin regulatory policy, while the European Union intends to implement the long wick candle Regulation on the encryption Asset Market (MiCA) by the middle of the year.

These new regulatory changes are expected to have a significant impact on Compliance and operating models for stablecoin issuance, including Tether.

Author: Vitalik Buterin

Compiler: Karen, Foreisght News

In Ethereum, resources were limited until recently and priced through a single resource called "Gas." Gas is a unit of measurement that measures the "computational effort" required to process a particular transaction or block. Gas brings together longest types of "computations", the most important of which include:

1. Raw computation (e.g., ADD, MULTIPLY);

2. Read, write and write to Ethereum storage (such as SSTORE, SLOAD, ETH transfer);

3. Data bandwidth;

4. The cost of generating ZK-SNARK proofs for blocks.

For example, this transaction I sent consumed a total of 47,085 Gas. These include: (i) a base cost of 21,000 Gas, (ii) 1,556 Gas for the calldata bytes included as part of the transaction, (iii) 16,500 Gas for read and write storage, (iv) 2,149 Gas for generating logs, and the rest for EVM execution. The Money Laundering that users must pay is proportional to the gas consumed by the transaction. A Block can contain up to 30 million gas long, and the gas price is continuously adjusted through the EIP-1559 targeting mechanism to ensure that each Block contains an average of 15 million gas.

This approach has one major advantage: because everything is combined into a single virtual resource, the marketplace design is very simple. It's easy to optimize transactions to minimize costs, it's relatively easy to optimize blocks to charge the highest possible fees (excluding MEV), and there are no weird incentives to encourage some transactions to bundle with other transactions to save fees.

However, there are inefficiencies with this approach: it treats different resources as if they were convertible to each other, when the actual underlying constraints are not the same. To understand this, you can first look at the following chart:

The gas limit imposes a constraint:

The actual underlying security constraints are often closer to:

This difference causes gas limits to either unjustifiably exclude actually safe blocks, accept actually insecure blocks, or both.

If there are n resources with different security limits, then one-dimensional gas may make the throughput up to long drop n times. As a result, there has long been interest in the concept of longing gas, and with EIP-4844, we have now actually implemented longing gas on Ethereum. This article explores the advantages of this approach, as well as the prospects for further enhancements.

Blob: Longest gas in Dencun

At the beginning of this year, the average block size was 150 kB. A large part of this is rollup data: Layer 2 protocol store data on-chain. This data is very expensive: although the Transaction Cost on Rollup is only 5-10 times that of the corresponding transaction on Ethereum L1, even such a cost is too high for a long use case.

So why not drop the gas cost for calldata (currently 16 gas for non-zero bytes and 4 gas for zero bytes) to make rollups cheaper? We've done this before, and we can do it again now. But the answer here is that the maximum size of a block is 30,000,000/16=1,875,000 non-zero bytes, and the network can barely or barely handle a block of this size. Dropping the cost by another 4x increases the maximum to 7.5 MB, which poses a significant risk to security.

This problem is eventually solved by introducing a separate, rollup-friendly data shorter (called blob) in each block.

There are different prices and limits for these two resources: after the Dencun Hard Fork, a Ethereum Block maximum long can contain (i) 30 million gas and (ii) 6 blobs, each of which can contain about 125 kB of calldata. Both resources have separate prices and are adjusted through a separate pricing mechanism similar to EIP-1559, with the goal of using an average of 15 million gas and 3 blobs per block.

As a result, the cost of the Rollup was dropped by a factor of 100, the volume on the Rollup increased by more than 3 times, and the theoretical maximum Block size increased only slightly: from about 1.9 MB to about 2.6 MB.

Note: Rollup Money Laundering, provided by Growthepie.xyz. The Dencun fork occurred on March 13, 2024, introducing longest pricing blobs.

Longest gas and stateless clients

In the near future, a similar problem will arise with stored proofs for stateless clients. A stateless client is a new type of client that will be able to validate the chain without having to store a large amount or any data locally. Stateless clients do this by accepting proofs of specific parts of Ethereum's state that transactions in that block need to access.

The diagram above shows a stateless client receiving a Block and proof of the current value of a particular part of the state (e.g., account balance, code, storage) touched by the execution of that Block, which enables the Node to validate a Block without any storage.

A storage read costs 2100-2600 gas, depending on the read type, and storage writes are more expensive. On average, a block performs about 1,000 storage reads and writes (including ETH balance checks, SSTORE and SLOAD calls, contract code reads, and other operations). However, the theoretical maximum is 30,000,000/2,100=14,285 reads. The bandwidth load of a stateless client is proportional to that number.

The current plan is to support stateless clients by transforming Ethereum's State tree design from Merkle Patricia trees to Verkle trees. However, Verkle trees are not quantum-resistant and are not optimal for newer STARK proof systems. As a result, longest people are interested in supporting stateless clients with binary Merkle trees and STARKs, either skipping Verkle altogether or upgrading a few years after Verkle's transition once STARK becomes more mature.

STARK proofs based on binary hash tree branches have long many advantages, but their key weakness is the long time it takes to generate proofs: Verkle trees can prove more than 100,000 values per second, while hash-based STARKs typically only prove a few k hash per second, and each value needs to contain a long hash "branch".

Considering the numbers predicted today from hyper-optimized proof systems like Binius and Plonky3, as well as proprietary hashes like Vision-Mark-32, it seems like we'll be in a practical range for some time where proving 1000 values per second is feasible, but proving 14,285 values is not. The average block would be fine, but the potentially worst-case Block (published by an attacker) would disrupt the network.

Our default approach to handling such cases is to reprice: increase the cost of storing reads to reduce the maximum per block to a more secure level. However, we've done this long times, and if we do it again, it would make too long app too expensive. A better approach is longing gas: limit and charge storage access separately, keeping average usage at 1,000 storage visits per block, but setting an upper limit per block, such as 2000.

The ubiquity of longest gas

Another resource worth considering is state size rising: operations that increase the state size of Ethereum, which then need to be saved by a full node. The state size rises is unique in that the rationale for limiting it comes solely from long-term sustained use, not peaks.

Therefore, it may be valuable to add a separate gas dimension for operations that increase the size of the state (e.g., zero-to-nonzero SSTORE, contract creation), but the goal is different: we can set a floating price to long wick candle on a specific average usage, but not set a per-Block limit at all.

This demonstrates a powerful property of long-dimensional gas: it allows us to long wick candle each resource separately and ask (i) what is the ideal average usage long less? (ii) What is the maximum safe usage per Block long small? Instead of setting the gas price based on the maximum value of each block and letting the average usage follow, we have 2n degrees of freedom to set 2n parameters, adjusting each parameter according to network security considerations.

More complex cases, such as when the security considerations of two resources are partially summed, can be handled by making a Operation Code or resource consume a certain amount of long type of gas (e.g., a zero-to-nonzero SSTORE might consume 5,000 stateless client attestation gas and 20,000 storage expansion gas).

Max per transaction (the one that consumes more data or calculations)

Let x1 be the gas cost of the data and x2 be the calculated gas cost, so in a one-dimensional gas system we can write the gas cost of a transaction:

In this scenario, we define the gas cost of the transaction as:

That is, a transaction is not charged based on data plus calculations, but on which of the two resources it consumes longest. This can be easily extended to cover more long dimensions (e.g. max(...,x3∗storage_access)).

It should be easy to see how this can increase throughput while maintaining security. Theoretically, the maximum amount of data in a block is still GasLIMIT/x1, which is exactly the same as in the one-dimensional gas scheme. Similarly, the theoretical maximum amount of computation is GasLIMIT/x2, which is exactly the same as in a one-dimensional gas scheme. However, the gas cost of any transaction that consumes data and calculations drops.

This is presumably the scheme adopted in the proposed EIP-7623 to reduce the maximum block size while further increasing the blob count. The precise mechanism in EIP-7623 is a little more complicated: it keeps the current calldata price at 16 gas per byte, but adds a floor price of 48 gas per byte; The greater of the transaction payment (16 * bytes + ution_Gas) and (48 * bytes). As a result, EIP-7623 reduces the theoretical maximum transaction call data in a block from about 1.9 MB to about 0.6 MB, while keeping the cost unchanged for longest applications. The benefit of this approach is that it changes very little compared to the current one-dimensional gas scheme, making it very easy to implement.

However, there are two drawbacks to this approach:

1. Even if all other transactions in the block use only a small amount of that resource, transactions that occupy a large amount of one resource will still charge a large fee unnecessarily;

2. It incentivizes data-intensive and compute-intensive transactions to merge into a single bundle to save costs.

In my opinion, a rule like EIP-7623, whether for trading calldata or other resources, can be of great enough benefit that even with these drawbacks, it is worth it.

However, if we are willing to put in (significantly higher) development efforts, a more desirable approach will emerge.

Longest EIP-1559: A more difficult but desirable strategy

Let's start by reviewing how regular EIP-1559 works. We'll focus on the version introduced by the long wick candle blob in EIP-4844 because it's mathematically more elegant.

We keep track of one parameter, excess_blobs. During each block, we set:

excess_blobs <-- max(excess_blobs + len(block.blobs) - TARGET, 0)

where TARGET = 3. That is, if the number of blobs in a Block is long than the target, the excess_blobs increases, and if the number of blobs in a Block is less than the target, the excess_blobs decreases. Then we set blob_basefee = exp(excess_blobs / 25.47), where exp is an approximation of the exponential function exp(x)=2.71828^x.

That is, whenever the excess_blobs increases by about 25, the blob base charge increases by about 2.7x. If the blob becomes too expensive, the average usage drops and the excess_blobs starts to decrease, automatically drop the price again. The price of blobs is constantly adjusted to ensure that, on average, the Block is half full, that is, each Block contains an average of 3 blobs.

If there is a short-term spike in usage, there is a limit: each Block can only contain 6 blobs at a maximum long, in which case transactions can compete with each other by increasing the priority fee. However, under normal circumstances, each blob only pays blob_basefee plus a small additional priority fee as an incentive to be included.

This gas pricing has been around in Ethereum for longest: back in 2020, EIP-1559 introduced a very similar mechanism. With EIP-4844, we set two separate floating prices for Gas and Blobs.

Note: The base gas charge for one hour on May 8, 2024, in gwei. Source: ultrasound.money

In principle, we could add more long independent floating fees for storage reads and other types of operations, but I'll elaborate on one issue in the next section.

For users, the experience is very similar to today: instead of paying one basefee, you pay two basic fees, but your wallet can abstract it out of your hands, showing you only the expected and maximum fees you can expect to pay.

Block builders, longest of the time, the best strategy is the same as it is today: include anything that works. Longest Blocks Are Not Full - Gas or Blobs. A challenging situation is that when there is enough gas or enough blobs to exceed the block limit, builders need to potentially solve the longest knapsack problem to maximize their profits. However, even if there is a fairly good approximation Algorithm, in this case, the gain from optimizing profits by formulating proprietary Algorithm is long smaller than the gain from doing the same with MEV.

The main challenge for developers is the need to redesign the functionality of the EVM and its associated infrastructure, which were currently designed based on a single price and a single limit, and now need to be retrofitted to accommodate longest prices and longest limitations.

One problem that application developers face is that optimization becomes slightly more difficult: in some cases, you can no longer explicitly say that A is more efficient than B, because if A uses a more long calldata and B uses a more long execution, then when calldata is cheaper, it is more expensive when calldata is expensive.

One problem that app developers face is that optimization becomes slightly more difficult: in some cases, you can't definitively say that A is more efficient than B, because if A uses a more long calldata and B uses a more long execution, then A may be cheaper when calldata is cheap, and A may be more expensive when calldata is expensive.

However, developers can still get pretty good results by optimizing based on long-term historical average prices.

Longest pricing, EVM, and sub-calls

There's a problem that doesn't appear in blobs, nor does it appear in EIP-7623 or even the full longest pricing implementation of long wick candles for calldata, but if we try to price state access or any other resource separately, then this problem arises: the gas limit in sub-calls.

Gas limits in EVM exist in two places. First, each transaction sets a gas limit, which limits the total amount of gas that can be used in that transaction. Second, when one contract calls another, that call can set its own gas limit. This allows contracts to call other contracts they don't trust, and still guarantees that they still have residual gas to perform other calculations after the call.

Note: Traces of account abstraction transactions where one account calls another account and only a limited amount of gas is provided to the callee to ensure that the external call continues to run even if the callee consumes all the gas allocated to it.

The challenge is that getting longest gas between different types of execution seems to require subcalls to provide longest limits for each type of gas, which would require very deep changes to the EVM and would not be compatible with existing applications.

This is one of the reasons why longest gas proposals typically stay in two dimensions: data and execution. Data, whether transactional calldata or blobs, is only distributed outside of the EVM, so nothing needs to change inside the EVM for calldata or blobs to be priced separately.

We can come up with an "EIP-7623-style solution" to solve this problem. This is a simple implementation: during execution, the storage operation is charged 4 times the fee; To simplify the analysis, let's assume 10,000 gases per storage operation. At the end of the transaction, the min(7500 * storage_operations, ution_Gas) is refunded. As a result, after deducting the refund, the user is required to pay the following fees:

ution_Gas + 10000 * storage_operations - min(7500 * storage_operations, ution_Gas)

This equals:

max(ution_Gas + 2500 * storage_operations, 10000 * storage_operations)

This mirrors the structure of EIP-7623. Another approach is to track storage_operations and ution_Gas in real time and charge 2500 or 10000 less depending on the max(ution_Gas + 2500 * storage_operations, 10000 * storage_operations) at pump long the time. The Operation Code is called. This avoids the need for transactions to over-allocate gas, which is mostly recouped through refunds.

We don't have fine-grained licensing for subcalls: subcalls can consume all of the transaction's allowances for cheap storage operations.

But we do get something good enough that the contract that makes the sub-call can set a limit and ensure that once the sub-call is executed, the main call still has enough gas for the required post-processing.

The simplest "complete longest pricing solution" I can think of is this: we treat the sub-call gas limit as proportional. That is, suppose there are k different execution types, and each transaction is set with a longest limit L1... 𝐿𝑘 。 Suppose that at the current execution point, the remaining gas is g1... Gk. Suppose you call the CALL Operation Code and use the sub-call Gas to limit S. Let s1=S, then s2=s1/g1∗g2, s3=s1/g1∗g3, and so on.

That is, we treat the first type of gas (which is actually VM execution) as a special "account unit" and then allocate other types of gas so that the subcall gets the same percentage of available gas in each type of gas. This approach is a bit ugly and maximizes backward compatibility.

If we want to make the scheme more "neutral" between different types of gas without sacrificing backward compatibility, we can simply represent the gas limit parameter of the child call as part of the remaining gas in the current context (e.g., [1...63]/64).

In either case, however, it's worth emphasizing that once you start introducing longest execution gas, the inherent complexity (ugliness) increases, which seems hard to avoid.

So our task is to make a complex trade-off: do we accept some level of ugliness increase at the EVM level to safely unlock significant L1 scalability gains, and if so, which specific proposal will be most effective for protocol economics and application developers? Chances are, neither of the two options I've mentioned above is the best, but there's still shorts to come up with more elegant and better solutions.

Special thanks to Ansgar Dietrichs, Barnabe Monnot, and Davide Crapis for their feedback and review.

Author: Frank, PANews

In the Bull Market of not dumb buying each other, the Meme coin track has entered a new stage - the issuance of coins for all.

Since April 18, the number of daily issuance Token Solana on-chain has exceeded 10,000, and the Base chain has maintained 2,000+ daily online trading pairs for long consecutive days. The reason behind this surge in coin is mainly the explosive rise of one-click coin tools represented by Pump.

Pump rises to create a wave of coins issued by the whole people

Pump.fun is a meme coin coin tool and social platform that mainly long wick candle Solana chains. It can support users to deploy issuance Token at a very low cost (0.02SOL) without any development experience. Since its launch in January 2024, it has accumulated more than 460,000 issuance Token. As of May 9, Pump's cumulative revenue has exceeded $17 million (subject to a 1% transaction fee)

Although there were longest one-click coin issuance products in the industry before, few of them achieved the popularity effect of Pump. For the average user, the main advantages of Pump are as follows:

1. The coin process is so simple that the issuance can be completed within 1 minute. Token issuance on Pump, users only need to upload a picture, give a name, write a description to complete, the whole process is very simple, users can not adjust the number of issuance and token ownership and other settings.

2. Exempt LP pool fees. Compared with the past one-click coin issuance products, in addition to paying a certain deployment cost, the main cost is the funds staked in the transaction pool. Pump has made an innovation in this regard, which does not require users to put their own funds into the pool at the time of initial deployment. Instead, an LP pool of about $60,000 is automatically set up, and as the number of buyers increases, once the market capitalization reaches $60,000, all the buying funds will be automatically credited to the LP pool and Rayium Swap will be listed. This makes it possible for some projects to have a relatively stable pool of funds once their market capitalization exceeds $60,000, rather than depending on the self-consciousness and ethics of the founder.

3. The social interaction function concentrates on the precipitation of meme culture. For very long meme coin, the biggest headache for players may be to understand the community situation and discussion about the project (usually need to actively find the community), and on Pump, because of the setting up of a message board-like function, players can keep the discussion content about this coin. So that those who enter the market can quickly understand the progress of this Meme coin.

Everyone turns over to make a "sickle"?

In addition to pump, which is active on Solana, similar products have begun to appear on other on-chains. For example, We.rich and FriendTech in Base on-chain We.rich have more long features and UI optimizations on the basis of Pump, such as Token maintaining a very low price in the early fair launch stage and keeping the price extremely low and limited Mint. Although there is still a large gap between the current number of issuance and active users and Pump, for the Base chain, which also has a huge meme market, the emergence of this project may also add a new meme coin battlefield.

In addition, many products combined with AI essentially provide similar one-click coin issuance functions, such as Spectral, which has just released an Airdrop plan, is to write contract code through GPT-like text dialogue tools. However, compared with the function of one-click coins, there is still a big difference in the convenience of this product.

The emergence of Pump products, does it mean that players can turn over from suckers to make sickles? After PANews experiments, it was found that although Pump simplified the coin issuance process and cost to a minimum, it may be difficult to realize the dream of a 100x coin. For ordinary users, the token issuance usually only attracts a few automated trading bots to enter the market, and there is no movement after a few quick trades. And long issuance Token on Pump are in this state, and there are very few market capitalization can exceed $60,000 a day.

For coins issuers, these passing players will quickly take away liquidity, and in the end only the founder's purchase funds are left in the pool. Although it is not too long to lose money, there is still a long way to go in terms of the goal of making a profit.

How to build a meme of more than 100 million

In fact, there are longing success stories on Pump. The top meme coins by market capitalization also have tokens with a market capitalization of more than $100 million. Typical are the two "Elvis Presleys": michi and Shark Cat.

Next, PANews analyzes how these meme coins with a market capitalization of more than 100 million were born based on several cases with high market capitalization.

The journey of the two Elvises

michi is the highest market capitalization meme coin on Pump to date, with a market capitalization of $186 million, and was created on April 8.

Shark Cat has a market capitalization of about $160 million and was created on March 26.

Material:

First of all, the timing and theme of these two tokens have become the basic conditions for high market capitalization. During the period at the end of March and the beginning of April, it happened to be the stage of the popular "cat and dog war" in the meme track, and during this time, everyone Solana on-chain like to find memes with various cat and dog themes for hype. And these two Tokens happen to belong to the same Cat camp. It just fits the hottest theme at the time.

Community:

In addition to the good timing, the community foundation is also very important. According to PANews research, almost all of the top meme coins by market capitalization have a characteristic, that is, the promoter is not an anonymous amateur.

In the case of michi, its founder, psykø (@psykogem), is himself an experienced meme coin player and KOL with 4,700 followers on X, and he is personally active on X and Telegram, and his tweets have always maintained a high number of views. Before Michi's release, he personally warmed up on social media longest.

The founder of Shark Cat is also a KOL named 0xWinged (@0xWinged), and before the launch of Shark Cat, he had successfully issuance the CopyCat project and achieved good results. He also has more than 10,000 followers on X.

Momentum Ability:

Of course, a certain number of followers alone does not guarantee that the issuance of tokens will be easily successful. The topicality in the issuance process is also an important element to drive price speculation. The founder of michi played a sincere card, and at the beginning of the issuance, he bought 40 SOL of michi Token out of his own pocket and burned it. This move helped Michi quickly reach the curve progress bar of $60,000 in market capitalization, and secondly, it seemed to users who entered the market later that there was a heroic spirit of "I did it first, you are free". This also gives long people confidence to be optimistic about the development of this Token. In the end, Psykø also made more than $2.5 million through this heroism.

Subsequently, in the process of michi's development, psykø also airdropped 1%; advertise in New York's Times Square; Paying artists to make relevant internet meme materials continues to build momentum for the Token.

0xWinged's issuance of Shark Cat took a different approach, a Space event on X. Users who bought early were basically attracted to the market through this space.

Funding:

Meme orgies are never one-man orgies. The third pump market capitalization project on Pump is a project called TEH EPIK DUCK (EPIK), which has a user Address GE4LX5DcEAfgVD1MZ1ahiUJboL3G3X4yuh2gcRytjvL5 directly purchased 30 SOL of EPIK Token in the first half of the issuance of this project, directly filling the progress of this Token curve. The user ended up making a profit of 1,369 SOL through EPIK. Although we don't know why this user dared to have all in spirit at the beginning. However, judging from its transaction records, this user bought longest Yellow Duck Tokens with the same theme on April 3, and invested more than 10 SOLs each time. Behind this coincidence, there may be a capital routine of mass meme hype. And in the early transactions of several other high-market capitalization projects, there were similar large speculators.

Through the above analysis, we may be able to get a glimpse of some of the necessary elements in the process of building momentum for popular meme coins. That is, materials, communities, momentum-building capabilities, and funds. These four elements are indispensable for the success of a Meme coin, and although not every Meme coin needs to be a quadrilateral warrior, it needs to have at least a certain specialty in several aspects to make up for the lack of others.

Student Author| @0x0_chichi

Instructor| @CryptoScott_ETH

Start time | 2024.5.9

1. Ethena's protocol source of income is Spot stake yield + short position funding rate yield, BTC the introduction of collateral dilutes the stake yield, the market cools down and Ethena's large short shrinks the funding rate yield.
2. Increasing collateral is a must for Ethena's long-term growth, but it means that interest rates may be low for a long time.
3. The insurance fund currently protocoled to the agreement is insufficient and there is a high risk.
4. Ethena has a natural advantage in the face of a bank run on a negative funding rate.
5. The total amount of open interest in the market is an important indicator Close Position to limit the amount of USDe issuance.

Ethena is a stablecoin protocol built on Ethereum Blockchain that offers a "synthetic dollar" USDe through a Delta neutral strategy.

Protocol, users deposit stETH into the protocol and minting USDe of the equivalent. Ethena utilizes an over-the-counter Settlement (OES) scheme to map stETH balances to CEXs as Margin, shorting an equal amount of ETH Perptual Futures. This portfolio achieves Delta neutrality, meaning that the value of the portfolio does not change with ETH's price fluctuations. So in theory, USDe achieves a stable value.

Users can then stake USDe into the protocol to minting out sUSDe, and hold sUSDe to get the income generated by funding rate. At one point, this yield was as high as more than 30%, and it was one of Ethena's main means of collecting reserves.

As of May 9, 2024, the yield of holding sUSDe is 15.3%, and the total issuance of USDe has reached $2.29 billion, accounting for about 1.43% of the total market capitalization of stablecoins, ranking fifth.

In the Ethena protocol, both stETH Collateral and ETH Perptual Futures short positions will generate gains (from funding rate), and if the combined return of both positions is negative, the insurance fund in the Ethena protocol will cover the losses.

What is the funding rate?

In traditional commodity futures contracts, the parties agree on a Delivery Date, that is, a period of physical exchange, so when the futures contract is about to reach the Delivery Date, the futures price will theoretically be equal to the Spot price. However, in Digital Currency Trading, in order to drop Delivery costs, a Perptual Futures form is widely adopted: compared with traditional contracts, the Delivery link is eliminated, resulting in the disappearance of the correlation between futures and Spot.

In order to solve this problem, the funding rate is introduced, that is: when the Perptual Futures price is higher than the Spot price (the basis is positive), the longs pay the funding rate to the shorts (the funding rate is proportional to the absolute value of the basis); When the Perptual Futures price is lower than the Spot price (with a negative basis), the shorts pay the funding rate to the longs.

Therefore, the more the Perptual Futures price deviates from the Spot price (the greater the absolute value of the basis), the greater the funding rate and the stronger the inhibition of price deviation. The funding rate becomes the correlation between futures and spot prices in Perptual Futures.

Ethena holds ETH Airdrop positions and stETH, and the income comes from funding rate and stake income, and when the comprehensive return is positive, the insurance fund will reserve a portion of the income to compensate users when the comprehensive return is negative.

In the current Bull Market, go long sentiment is significantly higher than shorting sentiment, the demand for long orders in the market is greater than the demand for short orders, and the funding rate remains high for a long time. The Delta risk of Spot collateral in the Ethena protocol is Hedging by the short position, and the short position held can earn a significant amount of funding rate income, which is why the Ethena protocol generates a risk-free high yield.

Prior to the launch of USDe, the Solana on-chain stablecoin project, UXD, was stablecoin in the same way, but UXD was Hedging in the DEX Futures Trading, which also set the stage for UXD's failure.

From a Liquidity point of view, Centralized Exchange hold more than 95% of the un Close Position contracts, Ethena Centralized Exchange is the best option in order to scale USDe to the billion level: the price of Ethena's short position will not cause much disruption to the market when USDe issuance large-scale rise, or in the event of a bank run.

Because Ethena's use of Centralized Exchange hedging will inevitably create new centralized risks, Ethena has introduced a new mechanism, OES, to hand over Collateral to a third party (Copper, Fireblocks), Centralized Exchange without holding any Collateral, similar to depositing users' Collateral in a Multi-signature Wallet to maximize drop centralized risk.

The insurance fund is an important component of Ethena's protocol, which transfers a portion of the revenue from stETH positions and ETH short positions when the combined return is positive to release it when the comprehensive return is negative, in order to maintain coin price stability.

Figure 1: USDe floating yield simulation

The high USDe yield in the 2021 Bull Market reflects strong bullish demand, with long positions paying 40% of short funding rate per year. With the start of the Bear Market in 2022, the funding rate has often fallen below zero, but it has not remained negative, and the average has remained above 0.

In the second quarter of 2022, the collapse of Luna and 3AC had a surprisingly small impact on the funding rate, with a brief downturn that allowed the funding rate to hover around 0 for a while, but quickly returned to positive values.

In September 2022 Ethereum the switch from POW to POS triggered the largest Black Swan Event in funding rate's history, funding rate fall to 300% at one point, due to the fact that in this conversion, users only need to hold ETH Spot to earn short rewards, resulting in a large number of users not only holding ETH Spot long positions, but also holding ETH short positions to hedge a large number of ETH Spot in order to obtain stable Airdrop returns.

The large influx of short caused the ETH Perptual Futures funding rate to big dump for a short period of time, but funding rate quickly returned to positive levels after the end of the short distribution.

The collapse of FTX in November 2022 also caused the funding rate to fall to -30%, but it did not last, and the funding rate quickly returned to positive values.

Based on historical data, the average comprehensive income of USDe has remained above 0, demonstrating the long-term viability of the USDe project. Protocol to short-term normal market shocks or black swan events that lead to a composite return of less than 0 is unsustainable, an adequate insurance fund can enable a smooth transition of the agreement.

Starting from 2024/4, users can stake BTC in the Ethena protocol for minting USDe stablecoin, and as of 5/9/2024, BTC collateral has now accounted for 41% of the total collateral.

Figure 2: Details of Ethena collateral on 5/9/2024

Figure 3: Details of the ETH short position of the Ethena protocol on April 5, 2024

On the eve of Ethena's acceptance of BTC as collateral, Ethena's total ETH short positions already accounted for 21.57% of the total Close Position contracts. Despite the strong Liquidity of the Centralized Exchange and the fact that Ethena holds ETH short positions in long exchange, the rapid rise of USDe issuance Centralized Exchange may not provide sufficient ETH Perptual Futures Liquidity, and Ethena is in dire need of new rise.

Compared to liquid staking Token, BTC does not have a native stake yield, and if BTC is introduced as collateral, the stake yield contributed by stETH will be diluted. However, Centralized Exchange BTC Perptual Futures of Close Position contracts exceed $20 billion, and after the introduction of BTC collateral, USDe's capacity to scale will increase rapidly in the short term, but in the long run, the rise rate of the total number of BTC and ETH Close Position contracts is the main factor limiting USDe's rise.

Figure 4: Average funding rate yield by year

Although the BTC collateral dilutes the stake yield of stETH, the average funding rate of BTC Perptual Futures is Bull Market below ETH and higher than ETH at Bear Market through historical data, which is also a Hedging to deal with the Bear Market funding rate downturn, improve the diversification of the portfolio, and reduce the risk of USDe de-anchoring in the Bear Market.

The current yield on sUSDe is rapidly slipping from 30%+ to around 10%+, both due to the general sentiment of the market and the impact of the large number of shorter positions brought about by the rapid expansion of USDe.

As we all know, the terrifying rise speed of USDe comes from the ultra-high funding rate payment in the Bull Market, but USDe as a stablecoin is still extremely lacking in application scenarios, and the existing trading pairs are only associated with some other stablecoin. Therefore, long the vast majority of USDe holders hold USDe for the sole purpose of reaping high APY and Airdrop activity.

Although the mechanism of the insurance fund is entered when the composite intrerest rate is negative, users who provide stETH will redeem it when the comprehensive income is lower than the stETH stake yield; Users who provide BTC will be more cautious, as the basis gradually decreases, the funding rate income continues to be low, and in the absence of ultra-high APY, a large number of redemptions may be generated after the end of the second round of airdrop activities, the reason can refer to the dilemma that Bitcoin L2 is also facing: a large number of users (especially large investors) regard BTC as the object of store of value, and the requirements for fund security are extremely demanding.

Therefore, the author believes that if before the end of Ethena's second quarter Airdrop event, if USDe's stablecoin application scenario has not achieved breakthrough development and the gradual reduction of the funding rate, USDe is likely to collapse.

Ethena officially made the following conclusions about the insurance fund through simulation calculations:

Figure 5: Scale of initial insurance requirements by rising scenario and insurance fund drawdown rate

In Figure 5, green, yellow, and red represent that the initial insurance fund size is less than 2 k million US dollars, between 2 k ~ 5 k million US dollars, and more than 5 k million US dollars to ensure the safety of funds.

The vertical coordinates indicate that the final amount of USDe issuance is expected to reach $1 billion, $2 billion, and $3 billion in two and a half years (2021/4~2023/10), respectively. The first three on the abscissa indicate that when the USDe issuance volume rises linearly, the withdrawal rate of the insurance fund is set to 50%, 20%, and 10% respectively. The fourth abscissa indicates that the withdrawal rate of the insurance fund is set at 20% when the USDe issuance volume remains constant after the first year is exponential rise. The fifth abscissa indicates that the withdrawal rate of the insurance fund is set at 20% when the USDe issuance volume has been at an exponential rise.

From Figure 5, a 50% withdrawal rate is very safe for a $2 k 0,000 starting insurance fund, and it keeps the insurance fund fully capitalized in almost all cases and at rise levels. If a black swan event occurs before the insurance fund has the opportunity to capitalize through forward financing, a premature index rise could pose a danger to the solvency of the insurance fund. At the same time, the late index rise is safer because it provides a more long time for the rise of the insurance fund.

But the reality is that the initial insurance fund is only $1 million, and the supply of USDe is much faster and long than the early exponential increase in the early growth case in the model. Nearly half of the current $38.2 million insurance fund (only 1.66% of USDe issuance) has increased in the last month. It can be seen that the problem caused by the rapid issuance of USDe is that the insurance fund in the early stage of the Ethena project is seriously insufficient compared to the official model estimates.

An inadequate insurance fund has two consequences:

1. Users have little confidence in the project, and if the high yield starts to decline, the TVL of the project will gradually decrease.
2. High TVL, low insurance fund, the project team must increase the withdrawal rate of the insurance fund (at least 30% or higher) to replenish the insurance fund as quickly as possible, but in the current situation of the gradual decline in the income of the funding rate, the user's rate of return is even worse, which may exacerbate the first consequence.

Figure 6: 2023/11/23~2024/5/9 USDe issuance

Figure 7: 2024/1/11~2024/5/9 Insurance Fund Amount

Referring to the ETH Pow arbitrage event in the third quarter of 2022 in Figure 1, the funding rate has fallen significantly in a short period of time, and the annualized rate once exceeded 300%. In such a Black Swan Event, a bank run on USDe is basically inevitable, but the unique mechanism of USDe seems to have a natural advantage in dealing with the bank run.

bank run may have already occurred in the early stages of a significant decline in the funding rate, as Ethena protocol needed to pay off a large amount of Spot collateral and Close Position equal Airdrop positions due to the creation of bank run, and due to the reduction in Airdrop positions, the insurance fund could maintain its expenses for a longer period of time.

From a Liquidity point of view, when bank run happens, Ethena needs to Close Position short positions, and in a negative funding rate market, it means that long Liquidity is exceptionally adequate, and Close Position short positions are hardly bothered by Liquidity issues.

At the same time, there is a 7-day cooling-off period for sUSDe in the Ethena protocol (Collateral it cannot be liquidated within a week of stake), which can also be used as a buffer in case of sudden changes in the market.

But the premise of all this is the adequacy of the insurance fund.

The total amount of un Close Position contracts in the market (OI, open interest) is always a key factor restricting the issuance of USDe, and it is also a potential risk for USDe in the future, as of May 9, 2024, ETH OI in Ethena protocol accounts for 13.77% of the total OI, and BTC OI accounts for 4.71% of the total OI. The huge number of short positions generated by the Ethena protocol has brought some disruption to the contract market, and there will be certain Liquidity problems with the subsequent expansion of the USDe scale.

The best way to solve this problem is to increase the number of high-quality Collateral long as much as possible (funding rate greater than 0 in the long term), which not only increases the upper limit of the USDe supply, but also increases the diversification of the portfolio and reduces risk.

Protocol, the Ethena protocol demonstrates its unique stablecoin mechanism and sensitive response to market dynamics. Despite challenges such as chronic basis downturns, insufficient insurance funds, and potential bank run risks, Ethena has maintained its competitiveness in the market through innovative over-the-counter settlement mechanisms and longest collateral variety.

With the ever-changing market environment and technological innovation in the industry, Ethena must continue to optimize its strategy and enhance its Risk Management capabilities to ensure the adequacy of insurance funds and the stability of liquidity. For investors and users, it is crucial to understand how the protocol works, where it comes from, and its potential risks.

Originally written by Dan Morehead, Founder, Ryan Barney, Partner, Pantera Capital

Compilation: Odaily Azuma

*Editor's note: This article is based on article 100 of Pantera Capital's market commentary section Blockchain Letter, featuring an excerpt from the analysis of TON. One of the references to the "number one Heavy Position" stems from Dan Morehead, founder of Pantera Capital, who mentioned that he had recently had lunch with Telegram founder Pavel Durov, and that Pantera had recently made the largest investment in Telegram's TON Blockchain project in the fund's history. Other than that, most of the rest of this article was written by Ryan Barney, a partner at Pantera Capital. *

Why did Pantera choose TON? （Dan Morehead）

Throughout my career, I have been on the lookout for great investment projects.

I'm passionate about Bitcoin and Blockchain because I think it has the potential to change the world and have a hugely positive impact on billions of people. Within this community, I have met longest amazing people who share a common mission and purpose. It's so exciting.

I recently had lunch with Pavel Durov, the founder of Telegram, and the sheer purity of his beliefs is amazing.

Telegram was founded by Pavel in 2013, and the platform's overarching principle is "freedom". Telegram is a neutral social platform that is impartial and does not take sides.

At the age of 21, Pavel and his brother Nikolai founded VK, known as the "Russian version of Facebook," which is also excellent and uncontrolled by the Russian media. The Russian opposition, which has widely used the app to organize mass protests in Russia, has tried to force Pavel to censor and ban some opposition communities, but Pavel refused.

• Pavel said at the time: "Neither I nor my team will be involved in political censorship. We're not going to ban Navalny's anti-corruption community or hundreds of other communities that have been ordered to be banned. Freedom of information is an inalienable right in a post-industrial society, without which VK's existence would be meaningless. ”

In 2013, Pavel left Russia for good. Together with Nikolai, he again founded Telegram, a platform based on the principles of "freedom", "openness" and "expression".

• Pavel said in this regard: "Everything I do in my life is for freedom. To the extent possible, my mission in life is to make others free as well. That's what Telegram is all about. ”

Pavel and his team ultimately chose to flee their home country rather than abandon their principles, and we are honored to partner with someone who believes in that – Pantera recently made the largest investment in the Fund's history on TON. In the following, my colleague Ryan Barney breaks down the investment in detail.

In short, when you're building a portfolio, it's best to find something that sets you apart.

99.999% of Blockchain projects try to build communities from scratch with technical ideas. With more than 23,000 Crypto Assets currently on the market, starting from scratch is a difficult path for a large number of long projects, and TON is integrating Blockchain technology into its existing community, which will undoubtedly be easier to achieve. **

Today, Telegram has started rolling out the Wallet service to their 930 million users.

TON Overview (by Ryan Barney)

TON is a Layer 1 network originally designed by Telegram and continued to be developed by the Open Source community. Due to the widespread adoption of TON in the Telegram system, we believe it will drive further promotion and popularity of Crypto Assets. Telegram is a future-proof, fast, and secure messaging platform with over 900 million active users that allows users to communicate individually and as a group, build communities at scale, share content, and more.

Based on Telegram's large user base and seamless user experience, coupled with the vitality of the TON ecosystem itself, we believe that TON has the potential to become one of the largest encryption networks.

The reason why we believe so much in TON is not only because of its strong promotion potential, but also because of the values of Telegram itself. During this year's Token 2049, Pavel dedicated his keynote to discussing these values.

Telegram doesn't sell user data, and its virality is based entirely on a commitment to privacy. It is a neutral platform free from government interference and has been a hub for community-organized protests everywhere.

Telegram is also one of the rise fastest and largest social platforms in the world. They spend zero on marketing, but they can rise by almost 2.5 million users per day. **They currently have a total of 930 million active users, and Pavel remains the company's only product manager, with only 30 people.

Telegram has almost 10 times more monthly downloads than its closest competitor, Signal, with 36.7 million downloads in January of this year alone.

The spiritual core of Web3

Telegram stands out not only because of the platform's remarkable distribution capabilities, but also because it essentially embodies the spirit of Crypto Assets.

At the Token 2049 conference, Pavel explained why TON and Telegram are a perfect match. "What I like about Blockchain is that it's a liberating technology — it gives power back to ordinary people," Pavel said. No other social app has the same targeting.

Telegram is currently the only major platform that has no regulatory hurdles, can converge with the vision of Web3, and has integrated Blockchain. While Messenger had attempted to integrate encryption payments through Libra, it eventually faced regulatory hurdles in the U.S., leading to a complete shutdown of the program. WeChat has tried to integrate Central Bank Digital Money CBDC payments, but the scope of application of the system is still limited.

We believe that Telegram has great potential to promote Crypto Assets globally due to the shared spirit of Web3.

Scalable network for hundreds of millions of users

The Open Network (TON) is a blockchain initiative developed by Telegram to leverage its broad user base to create a decentralization network capable of supporting longest applications. TON has built a rich ecosystem of long components, including TON Blockchain, TON storage, TON DNS, and TON services—all of which work together and work seamlessly.

TON Blockchain is the backbone of this ecosystem. TON is positioned as a high-performance, scalable Layer 1 network that leverages dynamic sharding mechanisms to process transactions quickly. TON's architecture ensures that the network can process millions of transactions per second and scale efficiently as the number of users increases, making it ideal for developers to launch applications for hundreds of millions of users without compromising on speed or security.

Minimalist entry process

In general, getting users started with encryption apps is quite difficult. New users need to write down a large string of secret keys and keep them safe, but what if you forget your private key? How can I send or receive money to other users? Copying and pasting Public Keys is not a good experience in itself.

Telegram simplifies many of these complex procedures with long Top.co's Telegram Wallet, Wallet which allows users to seamlessly connect to a variety of small applications, which users can access directly through Telegram settings and personal chat, and easily buy, sell, or manage Token, NFT within a single interface.

The Telegram Wallet supports both custodial and self-custodial options, allowing newbies to have an easy onboarding experience and experienced Crypto Veterans to choose full control over their secret keys. With TON's self-hosted wallet, users don't need to jot down mnemonic phrases and can simply use Telegram and email as backups.

The magic of applets

TON's increasingly rise ecosystem benefits from Telegram's innovative design and large user base. More than 360 million users interact with so-called "mini-programs" on top of Telegram every month, such as chatbots, mini-games, and more. For TON, we envision that its encryption capabilities can also be integrated into these "applets", significantly improving the operating experience of hundreds of millions of users. **There are currently more than 300 projects on TON, most of which long have built Mini Programs on Telegram and can be accessed directly through the Telegram App Center. **

Earlier this year, we saw meme-Token trading tools like BonkBot generate k tens of thousands of dollars in revenue through Telegram's user interface. TON-based applications such as StormTrade now also allow users to trade Perptual Futures, Crypto Assets, Stocks, and Equity using the same interface. With over $10 million in volume processed per day, we believe a similar TON-native Telegram bot will be the first choice for long traders.

Telegram also provides a foundational platform for viral social networking and gaming spreads. Early experimental Telegram games like Pixels and Fanzee Battles have attracted millions of users in a matter of days, demonstrating the platform's huge potential for user engagement; Catizen is a TON-based mini-game platform that currently has more than 4 million users and more than 700,000 daily active users; Notcoin, a TON-based social app where users can mine, has attracted more than 30 million users, one of the fastest rises on record in the Crypto Assets space.

The TON Foundation also recently announced their incentive program, which aims to incentivize successful TON applications. We believe this will lead to the creation of more long new and exciting Mini Programs, which in turn will attract more long users to join.

New revenue model

TON has also opened up new ways for the Telegram community to monetize, share, and expand their business long. Decentralization marketplace based on TON, Fragment provides users with a trading platform where users can trade collectibles such as virtual phone numbers and custom Telegram usernames, and Fragment has now facilitated more than $350 million in total transactions, and this is just the beginning.

The Fragment platform also supports revenue sharing between content creators and channel owners, which is also an important innovation that marks a shift from the traditional social media monetization model that allows creators to earn directly from their channel's ad revenue. This approach not only incentivizes content creation, but also strengthens the connection between platforms and users, promoting a more equitable distribution of economic benefits within the digital ecosystem.

Payment Revolution

On April 19, 2024, Tether announced the deployment of its stablecoin USDT on TON Blockchain and Telegram Wallet. This move represents a major step forward for the encryption industry in the payment space, as it will allow hundreds of millions of users to seamlessly send and receive stablecoins through the Telegram platform, making payments as simple as using Venmo or Apple Cash.

Powered by the TON Network's strong scalability, users can Money Laundering drop up to about $0.1, which is 66% cheaper than other major Crypto Assets payment platforms. In addition, Telegram also provides built-in deposit and withdrawal channels (for banks or exchanges) to further facilitate users.

We believe that stablecoin payments on Telegram Wallet are particularly important for individuals in developing countries, where people often do not have access to well-established banking services. With the deployment of stablecoins on the TON network, Crypto Assets are moving closer to realizing the vision of "Programmability Peer-to-Peer Coins", "Globally Accessible DeFi Financial System".

Conclusion: It's still early, and the potential is limitless

All in all, we believe that the TON network is still in its early stages, and we are very much looking forward to seeing the Telegram user community adopt its ecosystem and experience longest new features coming in the future."

Essentially, Telegram itself embodies the spirit of Crypto Assets – open, free, permissionless. The TON network has an ingenious symbiotic relationship with Telegram, where scalable smart contracts capabilities and a robust payment network enable breakthrough features that are not possible in the Web2 environment. Given Telegram's large user base, scalable infrastructure, thriving ecosystem of mini-programs, and native stablecoin payment capabilities, TON has the potential to extract more long value from this "treasure trove" of 900 million active users. **

For Pantera Capital, we are excited about this investment and eager to continue supporting future builders in the TON ecosystem." IF YOU ARE DEVELOPING ON TON AND WOULD LIKE TO SHARE IT WITH US, PLEASE DO NOT HESITATE TO CONTACT US.

Original author: Bridget Harris

Original compilation: Luffy, Foresight News

Not all the components of a modular stack are the same in terms of attention and innovation. While many projects have innovated on the data availability (DA) and ordering layers longing before, it is only recently that the execution and settlement layers have gained traction as part of a modular stack.

Competitive incentives in the shared sequencer space, with long projects such as Espresso, Astria, Radius, Rome, and Madara vying for market share, as well as RaaS providers like Caldera and Conduit, who are developing shared sequencers for Rollups built on top of them. These RaaS providers are able to offer better fees for rollups because their underlying business model doesn't rely solely on sequential revenue. There are also longest rollups that choose to run their own sequencers to get the fees it incurs.

The sequencer market is unique compared to the DA field. The DA field is basically an oligopoly consisting of Celestia, Avail, and EigenDA. This makes it difficult for smaller new entrants other than the Big Three to successfully disrupt the space. Projects either utilize "existing" options (Ethereum); Either choose one of the mature DA layers based on your technology stack type and consistency. While there are significant cost savings to be achieved by using the DA tier, outsourcing the sequencer part is not an obvious choice (from a fee perspective, not security), mainly because of the opportunity cost of giving up the sequencer revenue. Xu long also thought that DA was going to be a commodity, but what we saw in Crypto Assets was that the combination of a super-strong Liquidity moat and a unique (and hard-to-replicate) underlying technology made it extremely difficult to commoditize one layer of the stack. Regardless of these debates, there are longest DA and sequencer products on the horizon. In short, for some modular stacks, "there are several competitors for each service."

I think the execution and settlement (and aggregation) layers are relatively underexplored, but they're starting to iterate in new ways to better align with the rest of the modular stack.

Execution and settlement layer relationships

The execution layer and settlement layer are tightly integrated, where settlement layer can be used as a place to define the end result of state execution. The settlement layer can also add enhancements to the results of the execution layer, making the execution layer more robust and secure. This can mean longest different functions in practice, such as the settlement layer as an environment where the execution layer can resolve fraud disputes, proof of validation, and connect to other execution layers.

It's worth mentioning that there are teams that directly support the development of custom execution environments in their own protocol, such as Repyh Labs, which is building an L1 called Delta. This is essentially the antithesis of the modular stack, but still provides flexibility in a unified environment and has the advantage of technical compatibility because teams don't have to spend time manually integrating every part of the modular stack. Of course, the disadvantages are isolated from a Liquidity perspective, the inability to choose the modular layer that best suits your design, and the cost is too high.

Other teams choose to build L1 long wick candles for a core feature or application. One example is Hyperliquid, which built a dedicated L1 for its flagship native application, the Perpetual Futures trading platform. While their users need to cross-chain from Arbitrum, their core architecture doesn't rely on the Cosmos SDK or other frameworks, so they can long wick candle iteratively customized and optimized for their primary use cases.

Execution Layer Progress

The only feature that the general-purpose alt-L1 outperformed Ethereum in the last cycle was higher throughput. This means that if a project wants to dramatically improve performance, it basically has to choose to build its own L1 from scratch, mainly because Ethereum itself doesn't have the technology yet. Historically, this simply meant embedding efficiency mechanisms directly into common protocols. In this cycle, these performance improvements are achieved through modular design, and on Ethereum, the most dominant smart contracts platform. This way, both existing and new projects can take advantage of the new execution layer infrastructure without sacrificing Ethereum's liquidity, security, and community moat.

Currently, we are also seeing an increasing long of mixing and matching different VMs (execution environments) as part of a shared network, which provides flexibility for developers as well as better customization at the execution layer. For example, Layer N allows developers to run general-purpose rollup nodes (e.g., SolanaVM, MoveVM, etc. as execution environments) and application-specific rollup Nodes on top of their shared state machines. They are also working on full composability and shared liquidity between these different VM architectures, an on-chain engineering problem that has historically been difficult to accomplish at scale. Every application on Layer N can deliver messages asynchronously without latency in terms of consensus, which is often a "communication overhead" problem for Crypto Assets. Each xVM can also use a different database schema, whether it's RocksDB, LevelDB, or a custom synchronous/asynchronous database created from scratch. The interoperability part works through a "Snapshot system" (a Algorithm similar to the Chandy-Lamport Algorithm), where the chain can be asynchronously transitioned to a new Block without system pause. In terms of security, if the state transition is incorrect, a fraud proof can be submitted. With this design, their goal is to minimize execution time while maximizing overall network throughput.

Layer N

To drive customization, Movement Labs leverages the Move language (originally designed by Facebook and used on networks such as Aptos and Sui) for VM/execution. Move has structural advantages over other frameworks, mainly security and developer flexibility. Historically, these have been the two main problems in building on-chain applications using existing technologies. Importantly, developers can also just write Solidity and deploy it on Movement. To achieve this, Movement has created a fully bytecode-compatible EVM runtime that can also be used with the Move stack. Their Rollup M 2 leverages BlockSTM parallelization, which allows for higher throughput while still being able to access Ethereum's Liquidity moat (historically, BlockSTM has only been used for alt L1 like Aptos, which clearly lacks EVM compatibility).

MegaETH is also pushing the boundaries of the execution layer, particularly through its parallelization engine and in-memory database, where the sequencer can store the entire state in memory. In terms of architecture, they utilize:

• Native code compilation makes L2's performance even better (if the contract is more computationally intensive, the program can be greatly speeded up, and if it is not very computationally intensive, it can still be speeded up by about 2x).
• Relatively centralized Block production, but Decentralization of Block Verification and Confirmation.
• Efficient state synchronization, where full Nodes do not need to re-execute transactions, but they need to understand state deltas so that they can be applied to their local databases.
• Merkle tree update structure (typically updating trees takes up a lot of storage short), and their approach is a new trie data structure that is memory and disk efficient. In-memory computing allows them to compress the state of the chain into memory, so when a transaction is executed, they don't have to go to disk, just to memory.

Another design recently explored and iterated on as part of the modular stack is proof aggregation: defined as a prover that creates a single clean proof of longing clean proofs. First, let's take a holistic look at the aggregation layer and its historical and current trends in the encryption space.

The value of the aggregation layer

Historically, aggregators have had a smaller market share than platforms in the non-Crypto Assets market:

While I'm not sure if this applies to all Crypto Assets situations, the conclusion still holds true for DEX, cross-chain bridges, and borrowing protocol.

For example, 1inch and 0x (two major DEX aggregators) have a combined market capitalization of about $1 billion, which is only a fraction of Uniswap's market capitalization of about $7.6 billion. The same is true for cross-chain bridges: cross-chain bridges aggregators like Li.Fi and Socket/Bungee have a smaller market share compared to platforms like Across. While Socket supports 15 different cross-chain bridges, their total cross-chain volume is actually similar to Across (Socket — $2.2 billion, Across — $1.7 billion), which is only a fraction of Socket/Bungee's recent volume.

In the lending space, Yearn Finance is the first protocol Decentralization to aggregate lending yields, and its market capitalization is currently around $250 million. In contrast, platforms such as Aave (about $1.4 billion) and Compound (about $560 million) have higher valuations.

The situation is similar in the TradFi market. For example, ICE (Intercontinental exchange) US and Chicago Business exchange Group each have a market capitalization of about $75 billion, while "aggregators" like Charles Schwab and Robinhood have about $132 billion and about $15 billion in market capitalization, respectively. In Schwab, which routes through longest venues such as ICE and CME, the proportion of volume routed through them is disproportionate to its share of market capitalization. Robinhood has about 119 million options contracts per month, compared to about 35 million for ICE — and options contracts aren't even a core part of Robinhood's business model. Despite this, ICE is valued at about 5 times higher on the public markets than Robinhood. As a result, as application-level aggregation interfaces, Charles Schwab and Robinhood route customer order flows to various venues, and despite their large volumes, their valuations are not as high as those of ICE and CME.

As consumers, we give less value to aggregators.

If the aggregation layer is embedded in the product/platform/chain, this may not be true in Crypto Assets. If the aggregator is tightly integrated directly into the chain, obviously this is a different architecture, and I'm curious to see how it will evolve. One example is Polygon's AggLayer, where developers can easily connect their L1 and L2 into a network that aggregates proofs and enables a unified liquidity layer across chains using CDK.

AggLayer

The model works similarly to Avail's Nexus interoperability layer, which includes proof aggregation and an ordered auction mechanism, making its DA offering even more robust. Like Polygon's AggLayer, every chain or rollup integrated with Avail is interoperable within Avail's existing ecosystem. In addition, Avail pools ordered transaction data from various Blockchain platforms and Rollups, including Ethereum, all Ethereum Rollups, Cosmos Chain, Avail Rollup, Celestia Rollup, and different hybrid structures such as Validiums, Optimiums, and Polkadot parachains, among others. Developers from any ecosystem can build permissionlessly on top of Avail's DA layer while using Avail Nexus, which can be used for proof aggregation and messaging across ecosystems.

Avail Nexus

Nebra focuses on proof aggregation and settlement, which can be aggregated between different attestation systems. For example, aggregating xyz system proofs and abc system proofs so that you have agg_xyzabc (as opposed to aggregating inside the proof system so that you have agg_xyz and agg_abc). The architecture uses UniPlonK, which standardizes validator work across circuit families, making proof of validation across different PlonK circuits more efficient and feasible. Essentially, it uses zk-SNARKs themselves (recursive SNARKs) to extend the validation part (often a bottleneck in these systems). "Last-mile" Settlement becomes easier for customers because Nebra handles all batch aggregation and settlement, and the team only needs to change API contract calls.

Astria is working on some interesting designs around how their shared sequencer works with proof aggregation. They leave the execution part to the Rollup itself, which runs execution layer software on a given named shorter of a shared sequencer, essentially just "execution API", which is a way for Rollup to accept sorting layer data. They can also easily add support for validity proof here to ensure that blocks are not violating EVM state machine rules.

Here, a product like Astria acts as the #1 → #2 process (out-of-order transactions → ordered Block), the execution layer /rollup Node is #2 → #3, and a protocol like Nebra acts as the last mile #3 → #4 (execution Block → concise proof). Nebra may also be a theoretical fifth step, where proofs are aggregated and then verified. Sovereign Labs is also working on a similar concept to the final step, where proof-based aggregation-based cross-chain bridges are at the heart of its architecture.

Overall, some application layers are starting to own the underlying infrastructure, in part because if they don't control the underlying stack, keeping only the upper applications can introduce incentive issues and high user adoption costs. On the other hand, as competition and technological advancements continue to drive down infrastructure costs, the cost of integrating applications/AppChains with modular components has become cheaper. I believe this dynamic will be even stronger, at least for now.

With all these innovations (execution layer, settlement layer, aggregation layer), greater efficiency, easier integration, greater interoperability, and lower costs are possible. All of this ultimately leads to better apps for users and a better development experience for developers. It's a winning combination that can lead to more long innovation, as well as a faster pace of innovation.

Link to original article

In the growing ecosystem of Web3, Gnosis, one of the pioneers of Blockchain technology, has come a long way since it first launched its application on Ethereum in 2016. As a sidechain of Ethereum, Gnosis ($GNO) has the characteristics of a sidechain, but its function and performance are more similar to Layer 1 (L1) Blockchain. Gnosis has a staggering fully diluted value of $778 million, with 86% of the tokens already circulating in the market, while its total on-chain Lock-up Position Value (TVL) is a whopping $286 million.

In the Gnosis on-chain, major DeFi (Decentralized Finance) applications such as Aave, Maker protocol Spark, and Balancer are active, notably RealT, which has a TVL of $104 million, showing the strong potential of Gnosis in terms of real-world asset tokenization (RWA). With the launch of Gnosis 3.0, its ecosystem has begun to focus on payments and financial infrastructure. In the following, we'll give you a brief overview of Gnosis.

Gnosis Chain

Gnosis Chain, formerly known as xDai Chain, was officially launched in October 2018 and is an important sidechain based on Ethereum. After merging with Gnosis, the chain was officially renamed Gnosis Chain in December 2021 under the GIP16 proposal. As an EVM(Ethereum Virtual Machine) compatible chain, Gnosis Chain allows Ethereum developers to migrate and deploy smart contracts at a very low cost, which greatly drop the development barrier and cost.

Gnosis Chain uses a unique dual-Token model, which is stablecoin XDAI and governance token GNO (formerly STAKE). XDAI is a stablecoin pegged 1:1 to the US dollar for transactions and payment fees, while GNO supports the underlying POSDAO Consensus Mechanism. This model not only maintains the stability of the network, but also provides efficient governance. When a user converts DAI to XDAI via a cross-chain bridge, the DAI will be locked and Gnosis Chain will generate an equivalent value of XDAI to send to the user. Otherwise, the XDAI will be destroyed and the DAI will be sent to the user's Ethereum Wallet.

The cross-chain bridges supported by Gnosis Chain include xDai Bridge, which is designed for XDAI, and Omni Bridge, which can support Token cross-chain between long chains. In addition, GNO Token holders can directly participate in on-chain governance by initiating proposals and participating in voting. Users can also participate in Block production and on-chain safety maintenance by running Full Node and stake GNO becoming validators.

In terms of Consensus Mechanism, Gnosis Chain uses a attestation (PoS) Consensus Algorithm called POSDAO, which is a Algorithm based on BFT (Byzantine fault tolerance) Consensus protocol that ensures the Decentralization, fairness, and energy efficiency of the network. This Consensus Mechanism has been in effect since April 2020 and will continue until the Ethereum Network Upgrade Merge. In December 2022, Gnosis Chain successfully merged with Gnosis Beacon Chain as one of its Shards, a time that further integrated the Gnosis network and optimized its role in the Ethereum ecosystem.

Through innovative technologies and forward-looking strategies, Gnosis Chain not only plays an important role in the Ethereum ecosystem, but also provides key infrastructure for the development of Decentralization Applications (dApps), thereby driving the development of the entire ecosystem and transparency of governance decisions.

GNO: Core Token and Future Outlook in the Gnosis Ecosystem

GNO, as the native token of the Gnosis ecosystem, plays a longest key role. It is not only the stake Token of Gnosis, but also the governance token of GnosisDAO, giving it a central position in the entire Gnosis ecosystem. Built on Ethereum protocol, Gnosis is a Decentralization forecasting platform that leverages PoS mechanisms to provide users with an open and flexible environment to participate and create customizable prediction market.

GNO's market positioning is unique. As one of Ethereum's earliest sidechains, Gnosis Chain stands out for its independence and EVM-compatible features, which allow it to support smart contracts and DApps while maintaining operational independence and autonomy. This structure allows Gnosis Chain to achieve the rapid transfer of assets through a specific mechanism while ensuring the security of transactions.

In today's competitive encryption market, GNO faces competition from other sidechains and Layer 2 solutions such as Optimism. sidechains like Gnosis offer stand-alone Blockchain with their own Consensus Mechanism and security models, while Layer 2 solutions operate under a Ethereum mainchain security framework that provides a lighter transaction processing solution. While sidechains may not be as secure as Layer 2 solutions that rely on Ethereum mainchain, Gnosis offers unique value through its independence, especially in terms of asset interoperability and long of use cases.

In terms of data security and market performance, GNO shows strong potential. While code security has been a key focus for development teams, the Gnosis ecosystem has received a positive response from the Capital Market. Gnosis' total Lock-up Position (TVL) of up to $286 million is one of the key metrics to measure its success. Looking to the future, the way the Gnosis team and community are managed demonstrates their commitment to robust operations and portends significant rise in the new Bull Market cycle.

All things considered, the design advantages and market performance of Gnosis Chain and GNO Token, as well as its practical application in the field of Decentralized Finance and prediction market, make it a strong contender for Blockchain investment and development. Despite the challenges, the Gnosis ecosystem still shows great growth potential and market attractiveness if it is necessary to further improve code auditing and security, and its future development is worth looking forward to.

Gnosis 3.0: A bridge between Blockchain technology and everyday applications

Launched as an Ethereum-based prediction market platform since 2015, Gnosis has undergone a transformation from a prediction market platform (Gnosis 1.0) to Ethereum core infrastructure (Gnosis 2.0) and has now entered its most ambitious stage of development: Gnosis 3.0. At this stage, Gnosis is no longer just an infrastructure provider, but is focused on revolutionizing payments and financial infrastructure through a series of GNO Token-connected projects that aim to bridge the gap between Blockchain technology and everyday use cases for the masses.

The core of Gnosis 3.0 is to transform to an open financial track strategy and popularize Decentralized Finance tools through applications such as Gnosis Pay and Gnosis Wallet. These applications not only accelerate the democratization of financial services, but also provide users with more secure and transparent payment and financial services solutions. In addition, Gnosis 3.0 also emphasizes the reform of existing TradFi finance, expecting to replace certain businesses in the TradFi system with Blockchain infrastructure.

In terms of technology and governance structure, Gnosis Chain continues to serve as the core of Gnosis 2.0 and 3.0, ensuring cybersecurity through stake GNO validators mechanisms. The Gnosis DAO serves as the governance infrastructure of the GNO Token holders, controlling Gnosis' treasury and other key assets, such as ENS domain names, thereby indirectly enhancing its influence over the Gnosis ecosystem. In addition, Gnosis Ventures not only supports and incubates early-stage projects, but also provides extensive support for the Gnosis ecosystem by investing in third-party start-ups.

During this phase, Gnosis Ventures has invested in longest eco-projects with significant economic potential, including Safe and CoW DAOs. This strategy not only enhances the economic vitality within the Gnosis ecosystem, but also contributes to the prosperity of the entire Blockchain industry.

The future vision of Gnosis 3.0 focuses on combining the practical application of Blockchain technology with the daily needs of ordinary users, driving the adoption and acceptance of Blockchain technology by providing more flexible and user-friendly solutions. In this way, Gnosis hopes to lead the transformation of Blockchain technology from a field primarily focused on technical infrastructure to a practical technology platform that truly meets the needs of ordinary users.

Epilogue

Through continuous technological innovation and community-driven governance, Gnosis is shaping a more open and equitable digital economy future. As Blockchain technology becomes more widely integrated into everyday life, Gnosis' journey sets the benchmark for the industry as a whole, demonstrating the importance of continuous innovation and adaptation to change.

Original author: Sleeping in the rain

What exactly is Decentralization Computing?

In addition to io.net $AKT $AR $TAO, what other opportunities can we participate in?

The following content is intended to talk to you about how I understand the Decentralization Computing track after learning the relevant knowledge.

Let's dive in together

1、What exactly is Decentralization Computing for?

That is, "computing", what do these protocols calculate?

To put it simply, computing is the processing of information and data to achieve the output of the target result.

The biggest demander for decentralization computing, or "what the market thinks", is AI training. Of course, there are still longest problems in data synchronization, network optimization, and data privacy and security in this track.

At the moment, the biggest solutions on the market are probably io.net $AKT and $RNDR. However, as Greythorn Asset Management mentioned, the complexity of creating and managing Decentralization clusters at scale involves significant technical challenges, and they still have a long way to go (this is what long wick candle said to io.net, but it applies to most of them).

Reference link: greythorn.medium.com/io-nets-revolutionary-gpu-cloud-f 18 c 06 b 944 e 4

2. Refine the application direction

Let's take a brief look at the specific business of ⬇️ the Decentralization Computing project mentioned earlier

• io.net is a GPU Computing Power and has partnered with $RNDR for machine learning and artificial intelligence computing.
• $TAO does Computing Power intermediary to match AI training needs.
• $AKT is more scalable than $RNDR and supports GPU, CPU, and storage compute, so its customer base is richer.
• $AR's AO is a hyper-parallel computer modularly combined with Arweave, where AO is responsible for communication and parallel computing, and Arweave is responsible for storage and verification. In addition, AO supports modular combinations.

The application direction of decentralization computing is strongly linked to the AI field, and provides services for the AI field in the form of computing power. Essentially, we can break down Crypto+AI into: 1) What can Crypto do for the AI industry? 2) How can the AI industry empower Crypto? I've already mentioned this in a previous article. The way the AI industry empowers Crypto is through AI agents, such as $PRIME $OLAS. The basic idea that Crypto can serve the AI industry is to do computing power.

This is also the reason why the current Computing Power targets are being hyped and new Computing Power protocol are emerging.

In addition to computing power and applications, Crypto can also do something at the data layer and algorithm level.

Their main rise bottleneck today is Web2 customer acceptance of their form of collaboration. At this point, $AKT is relatively well done.

3. Two Gems related to calculations and data

Next, I will share a few gems with you (I have Holdings, interests, do your own research before buying, don't give me dumb buying).

FluenceDAO @fluence_project

Official: Fluence is a Web3 native computing platform for developing and hosting applications, interfaces, and backends on a permissionless peer-to-peer network. Fluence can read data from any public data source (FIL, Filecoin, Arweave, Ceramic, Ethereum, Solana, Flow, etc.), compute it, and store the newly computed data back into any of those repositories.

Background: FluenceDAO is an AI+DePin project that has partnered with FIL and Solana co-creators are also following the project. The project was led by Multicoin, with participation from 1kx and Signum Capital, and raised $11 million. Fluence has created a network to provide users with a Decentralization cloud-less platform + marketplace, and the network is managed by Fluence DAO and $FLT.

Currently, the price of $FLT is 0.6 USD, MC 29.9 M, FDV 599 M.

Read longer:

AIOZ @AIOZNetwork

Official introduction: AIOZ Network is a comprehensive infrastructure solution for Web3 storage, decentralization AI computing, live streaming, and video-on-demand (VOD). AIOZ Network's dCDN platform transforms file storage and distribution in Web 3.0 Dapps, providing an affordable solution for file storage and media streaming. AIOZ Network's Blockchain combines the robustness of Cosmos with the compatibility of the Ethereum Virtual Machine (EVM) (high compatibility and low cost).

Background: Previously, AIOZ focused on becoming the primary DePin infrastructure platform for storage and streaming, and now AIOZ is on its way to AI. Just like io.net and FluenceDAO, do AI+DePin infrastructure. AIOZ has been part of the NVIDIA Inception program for several years.

A unique design of the AIOZ is the dCDN (Distributed Content Delivery Network), where the edge Node of the network is responsible for running the network, and the Node who run the network will be able to earn $AIOZ Token rewards. One of the features of dCDN is that it allows the network to scale indefinitely. That is, as demand rises, the number of edge nodes needs to rise to meet market demand (there are currently 80,000 nodes worldwide).

So, how does AIOZ combine with AI?

AIOZ W 3A I is an AI computing infrastructure that can help customers with distributed AI computing and ensure data privacy. Customers can access more long AI models through the AI-as-a-service service provided by AIOZ.

Interestingly, while reading the material, I also noticed a concept that was mentioned longest: AI reasoning.

In the AI space, inference is the process of drawing conclusions from entirely new data using a trained machine learning model, and an AI model capable of inference can do so without an example of the desired outcome. To put it simply, AI training is the first stage of an AI model, and AI inference is the application of an AI model. In fact, AI inference is the process used to test the capabilities of AI models.

AIOZ's W 3A I Marketplace allows Nodes to store user data in a decentralization manner and perform AI tasks directly on the user's device. This makes AI inference more cost-effective and private.

To put it simply, AIOZ is providing services for AI through edge computing.

Read longer:

Currently, the price of $AIOZ is 0.8 USD, MC 878 M, FDV 878 M.

Finally, let's talk about what I think is the trend of Crypto AI: An important trend in the future of Crypto AI is the refinement of the subdivision track, and the granularity will be higher. While competing, more long modular cooperation will also come.

When people talk about Web3, keywords such as "Decentralization", "Autonomy", and "Consensus" are always mentioned repeatedly. But behind these grand narratives, we often ignore a more fundamental question: what is driving the continuous evolution of the Web3 ecosystem? The answer may lie in the strings of code and tokens. It is precisely with the powerful weapon of Token that the Web3 ecosystem can break through the barriers of centralization and unleash the power of crowd wisdom. In this vigorous "Token Revolution", the native Token TOX of the INTO ecosystem is becoming one of the brightest new stars with its unique design philosophy and innovative practices.

Governance, Collaboration, Consensus: INTO's Web3 Ecosystem Logic

In the world of Web3, all valuable contributions can be tokenized. From content creation to resource sharing, from community governance to application development, every contribution of ecological participants can be reasonably rewarded and rewarded through Token. This incentive model of "participation is Mining" has injected a steady stream of endogenous power into the Web3 ecosystem, attracting more and more long users and creators to join it.

To understand the importance of TOX, we must first recognize that the role of Token in the Web3 ecosystem has gone far beyond mere payment tools or investment targets. They have become the "hard currency" that drives the continuous evolution of the Web3 ecosystem, carrying a series of vital functions such as organizational coordination, interest bundling, and value incentives.

At the same time, Token has also become a link that connects all corners of the ecosystem. Through the circulation and exchange of Tokens, individuals and applications that were originally play people for suckers can achieve seamless value exchange, forming an ecological cycle of "you have me, I have you". This cycle not only greatly improves the efficiency of resource allocation, but also provides the possibility for large-scale collaborative innovation.

More importantly, Token distributes the governance of the ecosystem to each participant. Different from the centralized management model in the Web2 era, in the Web3 ecosystem, Token holders can influence major decisions in the ecosystem through proposals and voting. This practice of "token democracy" makes the development direction of the ecology truly serve the interests of longest participants, and achieves unprecedented crowd intelligence activation.

It can be seen that Token has become the "hard currency" of the Web3 ecosystem, which is not only the goal of all k ecosystem participants, but also the trust medium connecting the various hubs of the ecological economy. It is not only the cornerstone of the system that gathers the wisdom of the crowd, but also the source of vitality that supports the continuous evolution of the ecology. Without the key carrier of Token, it is difficult for the Web3 ecosystem to truly exert the magic of self-organization and self-evolution.

It is based on a deep understanding of the irreplaceable and important role of Token in the Web3 ecosystem that the INTO ecosystem has devoted a lot of effort to the design and cultivation of its native Token TOX. Through a well-designed economic model and governance mechanism, INTO enables TOX to play a pivotal role at every key node of its ecological evolution—it is both an anchor for gathering consensus and a beacon for innovation; It is not only a vane for rewarding contributions, but also a ballast stone for defending value.

INTO Ecosystem Blueprint: TOX's longest mission

In the blueprint of the INTO ecosystem, TOX is by no means just a simple circulation Token. From the very beginning of its design, it has shouldered longest missions such as governance, motivation, collaboration, and value-added. It is precisely with this unique temperament of "longing hands" that TOX can flow smoothly in every capillary of the INTO ecology and become the "heart" that drives the virtuous cycle of ecology.

Governance is a fundamental property of TOX. As the native governance token of the INTO ecosystem, TOX distributes the power of ecological governance to every coin holder. Whether it's upgrading the technical architecture, adjusting the economic model, or allocating resources to major projects, TOX holders can exert influence through proposals and voting. This "Token Democracy" governance model ensures that the INTO ecosystem always follows the track of the community's will and avoids arbitrary deviations from the direction of development.

Motivation is the core function of TOX. The INTO ecosystem closely links the acquisition of TOX with ecological contribution through a set of exquisite token economic models. Whether it's content creation, resource sharing, app development, or community building, participants can be rewarded with TOX for their efforts. This incentive mechanism of "participation is mining" not only mobilizes the enthusiasm of longest participants, but also allows everyone's contribution to be reasonably rewarded. With the continuous development of the ecosystem, the TOX will also grow together with the participants and bind more long Intrinsic Value.

Collaboration is an important mission of TOX. Through the circulation and exchange of TOX, individuals and applications that were originally play people for suckers can be seamlessly connected, forming an efficient and collaborative ecosystem. For example, developers can use the acquired TOX to purchase computing resources and drop development costs; Users can use TOX to purchase a variety of digital services and goods to enjoy more application scenarios. Through the economic cycle built by TOX, all corners of the INTO ecosystem have realized the exchange of value, and the scale and depth of collaboration have been continuously expanded.

Value-added is the value guarantee of TOX. In order to achieve sustainable rise in Token value, INTO has designed a unique set of burning mechanisms for TOX. This mechanism covers longest dimensions such as total burning, social earning and destruction, and ecological circulation destruction, thereby increasing its market scarcity by continuously reducing the circulation supply of Tokens. According to estimates, TOX will eventually be destroyed from 10 billion to 21 million. This decision not only demonstrates INTO's strong belief in the rise of ecological value, but also conveys its clear position of long-termism to the market. In INTO's view, instead of letting TOX settle in the hands of a few, it is better to integrate it into the ecological cycle as soon as possible to create value for a wider range of participants. At the same time, with the continuous expansion of INTO ecological application scenarios, the demand for TOX will also steadily increase. The dynamic balance of supply and demand will provide a strong support for the long-term value-added of TOX.

Looking at the wonderful performance of TOX in governance, incentives, collaboration, and value-added, it is not difficult to find that this native Token has been tightly bound to the fate of the INTO ecosystem. This is where the ecological value of TOX lies. It is not just a shorter check on paper, but a real guide to action.

See INTO through TOX: The epitome of Web3 ecosystem evolution

Through the growth trajectory of TOX, it is not difficult to find that its fate has always been closely linked to the development of the INTO ecosystem. And INTO's continuous cultivation of TOX value is not a vivid microcosm of a Web3 project exploring the way of ecological evolution?

At the governance level, INTO binds the will of the community to the depth of ecological development through the TOX voting mechanism. Every TOX holder is given the right to participate in ecological governance, and from proposal to voting, individual will can be gathered into collective wisdom. It is under the guidance of the concept of "everyone's participation, co-construction and co-governance" that the INTO ecosystem can form an internal mechanism of self-evolution and self-repair, and radiate vigorous vitality. This practice of "Token Democracy" can be called a model of Web3 Decentralization Governance.

At the Incentive Layer, INTO makes every ecological contributor get a reasonable return for their efforts through the economic model of "participation is mining". When a user's or developer's behavior is tied to the acquisition of TOX, a virtuous cycle is formed: the higher the engagement, the long the TOX earned; The increase in long TOX further stimulated the enthusiasm for participation. This positive feedback has injected a steady stream of endogenous power into INTO. Behind this mechanism is the simple concept of Web3 value returning to producers.

At the collaborative level, TOX has become a bridge connecting all parties in the ecosystem. Developers, Users, Node, Communities...... Originally scattered individuals are connected into a community of destiny because of TOX. Through the circulation of TOX, the value of each other can be exchanged and exchanged; Through the appreciation of TOX, the interests of everyone can be shared. It is this collaborative and symbiotic ecosystem that creates the powerful network effect of INTO. This intertwined network of economic relationships is the micro foundation of Web3's high degree of collaboration.

At the value-added level, INTO has built a unique destruction mechanism for TOX, including both total destruction based on community consensus and dynamic destruction based on ecological applications. On the one hand, destruction reduces the circulating supply of TOX and objectively increases its scarcity; On the other hand, the burn is also INTO's firm optimism on the long-term value of TOX, reflecting its determination to align with the interests of coin holders. This symbiotic and co-prosperous relationship between TOX and INTO runs through the core essence of Web3 economic model design.

Looking at INTO through TOX, we see not only the evolution of a Token, but also the growth law of a Web3 ecosystem. In this law, governance is democracy, contribution is right, collaboration is win-win, and value-added is consensus. This not only demonstrates INTO's firm adherence to the values of Web3, but also shows the basic logic of the evolution of the Web3 ecosystem.