Summary:

On average, compared to the previous few cycles, the unrealized losses of BTC investors are relatively small, indicating a relatively favorable overall situation.

However, the unrealized losses of short-term holders are still quite high, indicating that they are the primary risk group.

· Profit and loss activities are still very few, key indicators such as the seller's risk ratio suggest that volatility may intensify in the near future.

Market Downturn

In the past six months, PA has been stagnant and investor sentiment has been low. However, significant changes have occurred in the past three months, with increased downward pressure leading to the most severe decline in the market this cycle.

However, from a macro perspective, the Spot price is currently about 22% lower than the historical high price, and the decline is relatively small compared to the historical Bull Market.

Current Market Pressure

As the downward pressure on prices increases, it is wise to assess the unrealized losses held by investors to assess the financial pressure they are experiencing.

From a broader market perspective, unrealized losses are still at historical lows. The total unrealized losses account for only 2.9% of BTC's Market Cap, which is at historical lows.

This indicates that overall investors can still be relatively profitable even in a situation of continued price decline.

If we take the ratio of unrealized total profits to unrealized total losses, we can see that profits are still six times the total losses, supporting the above observation. About 20% of trading days have higher ratios than the current value, highlighting the surprisingly robust financial condition of ordinary investors.

Short-term Worries

The short-term holder group representing new market demands seems to have taken on the majority of the market pressure. Their unrealized losses dominate and have been steadily increasing in scale over the past few months.

However, even for this group of people, their unrealized losses have not yet entered a full-scale Bear Market relative to the size of the Market Cap, but are closer to the turbulent year of 2019.

We can use the evaluation of the STH MVRV ratio to support the above observation, which has fallen below the breakeven value of 1.0. During the recovery Rebound period after the FTX failure, the trading levels of this indicator are similar to those in August 2023.

This tells us that ordinary new investors hold unrealized losses. Generally speaking, the market is expected to weaken further before the spot price recovers to the STH cost basis of 62,400 USD.

We can enhance confidence in this assessment by examining a subset of the investor population in the STH group. Currently, all age groups in the STH group hold unrealized losses, with the following average cost basis:

· 1 d-1 w: $ 59.0 k (Red)

· 1w-1m: $59.9k (Orange)

· 1 m-3 m: $ 63.6 k (blue)

· 3 m-6 m: $ 65.2 k (Purple)

Investor Feedback

Evaluating unrealized losses can provide a deeper understanding of the pressures faced by market investors. Then, we can supplement the analysis of realized profits and losses (locked) to better understand how these investors are dealing with this pressure.

Starting from the realized profit, we can see a significant decline after reaching a historical high of $73,000, indicating that most of the Tokens spent since then have locked in smaller and smaller profit amounts.

As the turn has resulted in losses, we have noticed an increase in loss events, and as the market downturn continues, the volume is rising to higher levels.

The loss event has not yet reached the extreme level of dumping during the mid-2021 or the bear market period in 2022. However, the trend of gradual increase does indicate that some fear is spreading into investors' behavior patterns.

From the perspective of the seller risk ratio, we can see that the total realized profits and losses are relatively small compared to the overall market size. We can explain this indicator within the following framework:

High value indicates that investors' profits or losses relative to their cost basis are larger when spending tokens. This situation indicates that the market may need to find a new balance and usually follows high volatility price movement.

Low values indicate that the majority of Tokens are spending relatively close to their breakeven cost basis, indicating a certain degree of balance has been achieved. This usually indicates that the 'profit and loss' within the current price range has been exhausted, and typically describes a low volatility environment.

The seller's risk ratio has dropped to a low level, indicating that the Token prices of most on-chain transactions are very close to their original acquisition prices. This indicates that profit and loss activities are gradually saturated within the current price range.

From a historical perspective, this implies an expectation of increased Fluctuation in the short term, similar to the situation in 2019.

Riding the Cycle

In the downtrend, patience and holding become the dominant market dynamics. A large number of long-term holder Tokens have been spent to earn profits from the March ATH, resulting in a net supply surplus.

Recently, LTH has slowed down the speed of profit-taking, and the supply accumulated during the ATH pump period is gradually maturing into long-term holders. However, historical examples of LTH supply increasing like this indicate that this usually happens during the transition to Bear Market.

Combining the above observations, we noticed that as the Token matures and transforms into a long-term holder, the wealth held by new demand investors has decreased in the recent months.

The percentage of wealth held by new investors does not reach the high limit experienced during the previous ATH distribution event. This may indicate that the peak in 2024 is more in line with the mid-term cyclical high point of 2019, rather than the macro highs of 2017 and 2021.

To summarize our analysis, we will refer to a simplified framework that uses key on-chain pricing levels to think about historical BTC market cycles:

· DepthBear Market: The price is lower than the actual price. (Red)

· Early Bull Market: Prices trade between actual price and true market average. (Blue)

· Enthusiastic Bull Market: trading between ATH and the real market average. (Orange color)

· Happy Bull Market: Prices higher than the previous ATHs. (Green)

Under this framework, PA is still within a bullish market structure, which is a constructive observation. However, if there is a temporary downturn, the price level of $51,000 remains a crucial follow area that must be maintained in order to further appreciate.

Summary

BTC has only fallen 22% from its all-time high, much less than the previous cycle's decline. Ordinary BTC investors are still making considerable profits, highlighting the stability of their holdings.

Nevertheless, the short-term holder group continues to bear relatively high unrealized losses, indicating that they are the main risk group and the expected source of selling pressure during an economic downturn.

In addition, profit and loss activities are still very few, indicating that our current range has been saturated, and key indicators such as the seller risk ratio have also been saturated, implying that volatility may intensify in the near term.

Original text link

In the past week, various on-chain meme coin issuance platforms have emerged one after another, and they have all produced meme coins with good gains. Last night at 10 o'clock, the first on-chain meme coin issuance platform for Cardano ($ADA), Snek.fun, was officially launched, and various Cross-Chain Interaction, viewing lines, and Wallet tools were circulated in the meme community. More than 20 hours have passed, how is the start of Snek.fun?

What is Snek.fun?

First, let's introduce Snek.fun, which is a meme launch coin platform on Cardano, created in collaboration with meme leading$SNEK and Cardano ecosystem DEX Splash. Snek.fun started warming up at the end of July and officially opened yesterday at 10 pm.

Launched in May 2023, $SNEK saw a 13-fold increase in market capitalization within two months by the end of 2023, surpassing $130 million. After a drop of over 70% from the peak, $SNEK's current market capitalization is still $50 million.

The mechanism of Snek.fun is similar to Pump.fun. Here is a brief introduction. When 75% of the supply of Token is bought in the market and the Market Cap reaches 42,069 ADA, a liquidity pool containing 25% of the supply will be created on DEX Splash, and LP will be burned.

Poor User Experience

Shortly after the start of the event last night, snek.fun official account posted several tweets, stating that the Wallet API was overloaded and there were 20,000 users flooding into the website every 10 seconds, putting pressure on the system. In the comments section of the subsequent tweets, some users also reported that the transaction was stuck for up to 5 hours.

Currently, snek.fun supports Wallets such as Eternl, Nami, and Vespr. BlockBeats has experienced Eternl and Vepr. Among them, the registration process of Eternl is cumbersome, the loading speed is also slow, and its Chrome plugin cannot conduct transactions in the form of pop-ups during use. The registration process of Vepr is relatively simple, and the user experience is lighter.

On the trading interface, Snek.fun's front end is a 1:1 replica of Pump.fun, but the trading experience is much worse than Pump.fun. In addition to the cumbersome Cross-Chain Interaction, there are various problems in the trading process itself.

First, the default Slippage is high. When you click on a meme coin on Snek.fun that has not yet reached the market cap required to log in to the DEX, the default trading Slippage for most meme coins is 50%.

On Snek.fun, if you want to trade tokens with a market cap that meets the requirements and have logged into Splash, when you click on the trading interface, you will be prompted to only trade on Splash. However, Splash does not support the Vespr Wallet supported by Snek.fun. If you traded meme tokens early using the Vespr Wallet and then want to trade while watching the line after logging the tokens into Splash, you will need to switch wallets.

On Pump.fun, even tokens that have already been logged into DEX can be traded on Pump.fun.

In addition, when previewing MEME coins on Snek.fun, the platform notes the Market Cap unit as $ADA, with the current price of ADA being 0.32 US dollars, which is inconvenient for MEME players. Even when clicking into the token trading details page, no Market Cap value in U units can be found.

On the trading assistant tool, the tool that can currently observe the trend of Token is Taptools, and its trend hot list is now occupied by meme coin.

Cardano community member @store_optimal wrote two tweets expressing his expectations and warming up for the trading on snek.fun before its launch, and also hosted a space to discuss the Tokens appearing on snek.fun. However, after one day of the warm-up tweet, he posted a long tweet about the various problems he encountered during the trading process, "I couldn't buy ANYTHING".

Popular Targets

Despite the poor trading experience, snek.fun still launched a meme coin with a market capitalization of one million. According to the data from Snek.fun and Taptool, the meme coin with the highest market capitalization at present is ADADOG, with a peak market capitalization of 3.7 million USD and an increase of over 100 times in 8 hours. The current market capitalization is 1.14 million USD, a decrease of 70% from the high point.

According to official information, the first three meme coins established on Snek.fun are $bjorn, $keren, and $THICC. Snek platform once announced that bjorn was the first meme coin on the platform to reach a market capitalization of 1 million ADA (worth about 310,000 USD).

After experiencing a rapid rise of 25 times and then a quick drop of more than 90% within three hours, Bjorn began to oscillate and rise again. As of writing, the Market Cap is $230,000. While Keren's Market Cap is less than $40,000.

On August 25th, Telegram founder and CEO Pavel Durov was detained in Paris, France and faced multiple charges including fraud, Money Laundering, and terrorism. On August 29th, Pavel Durov was released after paying a bail of 5 million euros, but he is not allowed to leave France. Full event summary: 'Real-time Update | South Korea investigates Telegram; encryption-related business accounts for 40% of Telegram's total revenue'.

After a week of silence, Durov made his first statement on the Paris detention incident in his official personal channel this morning. Here is the full text of his statement:

Thank you for your support and concern!

Last month, I was questioned by the police for four days after arriving in Paris. I was told that I might have to take personal responsibility for the illegal use of Telegram by others, because the French authorities had not received a response from Telegram.

This surprises me for the following reasons:

1. Telegram has an official representative in the European Union who is responsible for receiving and responding to requests from the EU. Its email address has been made public, and anyone in the EU can simply search on Google for 'Telegram EU law enforcement department contact address' to find it.

2. The France authorities have several ways to contact me for assistance. As a France citizen, I am a regular visitor to the France Consulate in Dubai. Previously, when they asked, I personally helped them set up a hotline with Telegram to deal with the terrorist threat in France.

3. If a country is dissatisfied with a certain internet service, the usual practice is to file a lawsuit against the service itself. It is a mistake to hold the platform CEO responsible for the crimes committed by third parties on the platform using pre-smartphone era laws. Building technology is already difficult enough. If innovators know that they may be personally liable for the potential misuse of these tools, they will never develop new tools.

Finding the right balance between privacy and security is not easy. You must reconcile privacy laws with law enforcement demands, as well as local laws with EU laws. You also need to consider technical limitations. As a platform, you want your processes to be consistent globally while ensuring that these processes are not abused in countries with weak legal systems. We have always been committed to working with regulatory authorities to find the right balance. Yes, we adhere to our principles: our experience is shaped by the mission of protecting users' safety in authoritarian regimes. But at the same time, we are always willing to engage in dialogue.

Sometimes we cannot find a suitable balance between privacy and security with the regulatory agencies of a certain country. In these cases, we are ready to leave that country. In fact, we have already done so. When Russia asked us to hand over the 'encryptionSecret Key' for monitoring purposes, we refused - and Telegram was banned in Russia. When Iran asked us to block channels of peaceful protesters, we refused - and Telegram was banned in Iran. We are prepared to leave markets that are incompatible with our principles, because we do not do these things to make money. We do them to bring goodwill and defend people's basic rights, especially where these rights are violated.

However, this does not mean that Telegram is perfect. For example, authorities are confused about the channels through which requests are sent, and this is an area we need to improve. But it is completely untrue for some media to call Telegram a kind of lawless paradise. We delete millions of harmful posts and channels every day. We publish daily transparency reports (such as this one or this one). We also have established direct hotlines with non-governmental organizations to expedite the handling of urgent review requests.

However, we have noticed that some voices believe this is not enough. The number of Telegram users has surged to 9.5 billion, bringing with it the growing pains that make it easier for criminals to abuse our platform. That's why I will ensure that we continue to improve in this area. We have already started this process internally and will soon share more details about our progress with everyone.

I hope the events in August will make Telegram, as well as the entire Social Web industry, safer and stronger. Thank you again for your concern and support.

Original link

Solana's resurgence, ETH's market performance is far from expected, ETH's Exchange Rate against Bitcoin continues to hit new lows, coupled with frequent dumping of ETH by ETH Foundation, with an annual expenditure budget of about 100 million US dollars, Vitalik was forced to reveal a salary of 182,000 new coins. Recently, the unprecedented attention received by the ETH Foundation.

After 8 months, the Ethereum Foundation research team conducted the 12th AMA on the Reddit forum, addressing many questions. At 9 pm on September 5th, Beijing time, the Ethereum Foundation research team began to answer questions one after another, including reasons for the pump in ETH's price, how long the Ethereum Foundation's funds will last, blob (EIP-4844), ZK, and Rollup.

BlockBeats has selected and compiled the Q&A, and translated it into text. It should be noted that the core developers have their own views and speculations on certain topics, so please refer to the accompanying original post link to avoid misinterpretation.

What are the pump reasons for the price of ETH? Does the Ethereum Foundation care about the price of ETH?

Q: What is the main logic behind ETH pump in 2024?

Dankrad Feist: Ethereum is building a financial platform that will be the most neutral platform that can simultaneously: allow the issuance of financial assets, allow the trading of these assets, and allow the creation of new financial products based on these assets without permission, such as Derivatives.

This is a very valuable activity. The value may be obtained through some kind of fee mechanism. I believe that Ethereum L1 will be the intersection of multiple sub-domains, and a large amount of valuable activities will be generated through fees (assuming L1's scalability is sufficient). If this is not the best mechanism, there are other options, such as obtaining value through data availability fees, using ETH as the primary medium of exchange, or using ETH as Collateral (this is the riskiest option).

Anders Elowsson: When Ethereum facilitates sustainable economic activities, ETH will appreciate. By 'sustainable,' I mean activities that bring utility to participating economic entities and ensure their long-term continuity. In this case, the native ETH token will appreciate because ETH is a trustless asset within the Ethereum ecosystem, making it worthwhile to hold and use as a currency. Economic activities facilitated by Ethereum settlement/guarantee are paid in ETH and subsequently burned, effectively distributing value to all ETH token holders.

Justin Drake: ETH is money :)

Q: Does the ETH Foundation care about the continuous rise in ETH prices? Why?

Dankrad Feist: The Ethereum Foundation has no opinion on this, as researchers, we each have our own views.

Personally, I believe it is best to focus on building a value-generating ecosystem on the ETH platform. I believe value capture will naturally occur in due course. This does not mean that I am not considering it, but focusing on value capture before sufficient value generation is a huge mistake.

Anders Elowsson: EF may not consider everything, but individual researchers do, and I suspect that quite a few people consider the appreciation of ETH to be important. One obvious reason is that the security of the economy is ensured by staked ETH, and thus the rise in the price of ETH ensures economic security. Another reason is that ideally, a currency should maintain its value over time, and ETH is the best currency in the ETH ecosystem. Having a reliable and trustless currency in a decentralized economy is valuable, and the value of ETH makes the ETH ecosystem a better platform.

Third, a significant portion of future investments in the Ethereum ecosystem may be held in the form of ETH, including the not particularly large treasury of the EF. Fourth is a deeper consideration, that the accumulation of value in ETH is closely related to the success of Ethereum, as further discussed in the answer to the next question.

Justin Drake: Personally, I believe that the rise in the price of ETH is crucial for the success of Ethereum. I believe that if ETH does not become the de facto 'Programmability currency' of the internet, Ethereum cannot become the settlement layer of the 'Value Internet'.

Currency premiums will only be concentrated in a particular type of asset (considering tens of trillions of US dollars). This currency premium is necessary for the following aspects: support tens of trillions of US dollars of Decentralization stable coins ("economic bandwidth"); provide unquestionable security, and even resist attacks at the national level ("economic security"); attract the attention of all major economic participants ("economic significance").

Q: If, upon completing the remaining roadmap, various rollups settle on Ethereum L1, there are numerous Decentralization applications on L2, and the transaction fees are less than one cent, the ecosystem is developing well, but the price of ETH does not rise significantly, does this mean the success of the Ethereum roadmap?

**Dankrad Feist：**Once again, I would like to emphasize that I do not speak on behalf of the Ethereum Foundation. I am simply expressing my personal views as a researcher.

When I start a startup, of course I hope to make money, but even if I end up with nothing, I still consider it a success if it is useful to my customers.

Apply this idea to the Ether square, if we have a diverse rollups ecosystem, it can provide interesting applications to the world, I would consider this a success. But if this ecosystem can also make ETH assets more valuable, that will be an even greater success.

Many people believe that the roadmap centered around rollups will weaken the fee income and MEV of Ethereum, and ultimately rollups may become parasites. I don't think that's correct. The highest value transactions will still occur on the Ethereum L1, while rollups will expand the entire ecosystem by providing a large amount of transaction space for users. This relationship is symbiotic: Ethereum L1 provides cheap data availability for rollups, and rollups make Ethereum L1 a natural hub for high-value transactions.

Anders Elowsson: In the long run, Ethereum facilitates sustainable economic activity and has a direct correlation with the rise of ETH's value. If a sustainable economic activity system is designed, the rise of ETH's price should be taken into account. Conversely, when designing ETH's appreciation, it is necessary to ensure that Ethereum promotes sustainable economic activity.

In the short term, if only follow 'price rise' without considering its source, it may lead to a long-term decrease in value. Personally, I think the current roadmap is actually a 'price rise roadmap' as well. If Ethereum succeeds, but ETH does not rise in price, I would be surprised and even a little disappointed, but this may be an opportunity to buy ETH, because the market will eventually realize the theory of this price rise.

Justin Drake: Personally, I believe that the rise in the price of ETH can be attributed to capital flow and currency premium. For capital flow, the key indicator is the total cost, not the cost per transaction.

As I mentioned in my speech, the ultimate goal of Ethereum's success is to achieve 10 million transactions per second, which can generate billions of dollars in revenue even if each transaction costs less than one cent. For example, a transaction of 0.002 dollars can bring in about 2 billion dollars in daily revenue.

The key indicator for currency premium is the usage ratio of ETH as collateral currency, for example support Decentralized Finance.

How long will it take for the ETH Foundation's funds to be depleted?

Q: How does the Ethereum Foundation ensure that the network remains neutral and prevent validators from being pressured by governments to review specific transactions?

**s0isp0ke：**In the past year, we (the Resilient Incentive Group (RIG) of the ETH Foundation and other researchers) have been working on enhancing the censorship resistance (CR) characteristics of the ETH network, mainly through iterative 'Inclusion List' (IL) design.

In short, ILs allow validators of Decentralization to collectively force transactions to be included in the Block builder's Block. This effectively reduces reliance on a few complex entities, which may arbitrarily decide which transactions can be included in the ETH Block (for example, transactions involving reviewed and sanctioned Addresses).

We have posted some relevant posts on ethresear.ch, and the latest proposal is 'fork choice enforced inclusion list' (FOCIL): FOCIL proposal. This proposal relies on multiple proposers to jointly create an inclusion list, where transactions must be included in the Block to be considered valid by validators. If you want to learn more or have any other questions, please feel free to contact us!

Q: How long can the funds of the Ethereum Foundation support? What are the contingency plans when the funds are depleted?

Justin Drake: From my limited personal understanding:

1. Similar to the previous financial report, it should be released soon.

2. The foundation spends about 100 million dollars a year - see Aya's tweet.

3. Currently, the foundation's main Ethereum Wallet holds approximately $650 million worth of ETH.

4. The foundation also has a portion of Fiat Currency reserves, enough to cover the expenses for the next few years. (This is the part I know the least about. As Aya mentioned, due to regulatory reasons, the sale of ETH was temporarily suspended, so this part of the reserves has only recently been replenished.)

Roughly estimated, the foundation has approximately 10 years of funding reserves, but this period will vary greatly with the Fluctuation of ETH prices.

ETH layer one related

Q: Once the Rollup-centric roadmap is completed, are there still plans to expand Ethereum's L1? If so, what are the currently considered expansion methods?

Dankrad Feist: I do believe that scaling L1 execution should be a goal, parallel to building aggregation. However, they are not necessarily conflicting:

1. Data availability can be almost infinitely scalable - the ultimate limitation is the interest in Ethereum (i.e., how many people are running full nodes seriously and how many people are willing to record all data).

2. Execution always encounters some limitations, and the ultimate limitation is the single-thread limitation; currently, state access is the direct limitation of expanding L1 execution.

3. Through zkEVM and parallelization, I still believe we will see L1 expanded to 10-1000 times its current capacity. Rollups will provide the remaining parts to achieve "global scale".

The good news is that all of these efforts are underway - and thanks to the roadmap centered around aggregation, many teams are working in a more decentralized way in parallel.

**Justin Drake：**The Ethereum Foundation's long-term sustainable plan is to use SNARK to extend the EVM execution of the Mainnet, which is basically unlimited.

Through real-time L1 EVM SNARKing, validators can verify low-cost SNARKs without having to re-execute EVM transactions. This will allow us to significantly increase the Gas limit without adding to the burden of validators. All heavy EVM execution work will be done outside of Consensus by specialized Nodes operated by entities such as searchers, builders, and adventurers. The burden on users and Consensus participants will become very light, for example, they can run Nodes on their mobile phones or watches.

In addition to the vertical scaling benefits brought by significantly increasing the L1 EVM gas limit, there is also an opportunity to use EVM-in-EVM precompiles for arbitrary horizontal scaling, allowing for low-cost validation of EVM executions within EVM. This precompile will allow developers to programmatically launch new L1 EVM instances, unlocking a boosted version of Sharding for execution, where the number of Shards is infinite (rather than limited to 64 or 1024), and a single Shard is a Programmability rollup (with Programmability governance, ordering, gas), called the "native rollup".

Q: What are the main areas of research in zk by the ETH Foundation? What are the explorations in terms of theory or practical applications?

George Kadianakis: Here are some zk projects related to L1, at different stages of research maturity:

Using STARKed hash tree to achieve statelessness; using recursive SNARKs for large-scale recursive signature aggregation; enhancing the robustness of the Network Layer through zk anonymous credentials; using STARKs to achieve post-quantum aggregatable signatures (instead of BLS); providing privacy in single secret leader election design using ZK; L1 execution using ZK and zkEVM (long-term goal!)

In addition, the EF cryptography team has a wide interest in ZK research. You can find some of their work on the cryptography team's website.

Antonio Sanso: In a recent statement from the Ethereum Foundation, the cryptography research team emphasized the need for a deeper understanding of verifiable latency functions (VDFs) before integrating them into Ethereum. The team currently does not recommend the use of VDFs in Ethereum and highlights that ongoing research and significant improvements are crucial for potentially revising this position in the future. For more detailed information, please refer to the full statement here.

Justin Drake: I'm very excited about the SNARKification of L1 EVM. There has been tremendous progress in the past few months. Succinct's Uma shared new data with me today: the cost of proving all L1 EVM blocks is now about $1 million per year, and there are still significant optimizations underway. If by this time next year, thanks to SNARK ASICs and stack-level improvements (compiler, arithmetic, proof system, prover algorithm), the cost could be reduced to 01928374656574839201. Another exciting development is that EF is accelerating the zkEVM Formal Verification. This work is led by Alex Hicks and has a budget support of $20 million.

Blob(EIP-4844) Related

Q: What research areas are most researchers primarily following? Have the blobs in EIP-4844 brought about any discoveries or adjustments in research directions?

Davide Crapis: We are doing more work around blob pricing, driven by previous analysis and the increasing importance of it as a resource, as well as the observation that its market is very different from other resources (most of the demand comes from 'enterprise clients' with relatively low elasticity in the short term, such as L2). We have conducted new research with some partners, and the results will be released in a few weeks.

Q: Is there a problem with the existing blob base fee mechanism? Is there a risk that the blob gas fee will become too high, which is detrimental to L2?

Davide Crapis: There is indeed room for improvement in the current mechanism (see other questions about "blobs"). However, the situation you mentioned is not worrisome: remember that the data cost of L1 will be passed on to L2 users and become part of the L2 fees. Therefore, when the data cost increases due to congestion, the demand for L2 transactions will decrease, which will in turn put downward pressure on the demand for blobs and drop the price of blobs. The third part of the Arbitrum Nitro White Paper is also a good resource for understanding the cost structure of L2.

Dankrad Feist: If the blob fee increases, rollups will charge users more Money Laundering. This will naturally result in fewer transactions on L2, just like what is happening on ETH L1 currently.

Q: If the usage of blobs does not reach the target (e.g., 3 blobs per Block), should the target be dropped to ensure that the fee mechanism can function correctly?

Davide Crapis: No. The mechanism is designed to price congestion, so it's normal for prices to remain low if there's no congestion. However, current demand is far below the target, which affects price discovery in congested situations. In this case, price discovery is very important, and we should improve the efficiency of the mechanism. In the short term, adjustments such as increasing the minimum fee (but still very low!) or changing the update speed can be helpful.

See the discussion here for details: EIP-4844 fee market analysis; latest proposal: EIP-7762 increases the minimum base fee for each blob gas.

Dankrad Feist: The Ethereum community is currently creating a new market for rollups - the data availability market. Many alternative solutions (such as Celestia, Eigenlayer, Avail, etc.) hope to grab market share from Ethereum. They cannot compete on security, so they want to win on price.

Even if each Block has 3 blobs, the resulting income cannot significantly increase the revenue of the Ethereum protocol. I think in the next few years, we should strive to expand this area as much as possible, without rushing to generate fee income from it.

Anyway, I don't think the cost of blob will be the best value capture mechanism for Ethereum. The data availability market changes too quickly - although Ethereum provides the best security, other 'close enough' solutions can easily capture the market, making it less than ideal to extract value from it. As a natural financial hub in the ecosystem, Ethereum L1 will have the highest value transactions, which is the best price rise mechanism for ETH.

Justin Drake: blobs won't fail to achieve the goal - we just need to be patient :) It takes time for induced demand to manifest. Another factor to consider is that some recent rollups projects (such as Base, Scroll, Taiko) have found better ways to use blobs. The optimization of these rollups extends the timeline of blob price discovery, which is fully justified.

Other

Q: What is the progress of the proposal for solving the problem of excessive issuance in Ethereum? Can the stake ratio be adjusted through a PID controller instead of relying on a fixed issuance curve?

Davide Crapis: The controller is feasible, but I think it's too complicated. We are able to express the demand curve without aiming for specific stake ratio values, but instead aiming for a range, so we should choose this simpler option. I discussed these two options in my speech at CEE 2023 (since then, the second option has received more research): Ethereum stake: current status.

Justin Drake: In my opinion, it is undoubtedly the right choice to have a smarter issuance curve that gradually approaches zero at some soft limit (such as 1/4, 1/3, or 1/2 of ETH being staked). The main bottleneck is social coordination. We need a smart and motivated person to push this EIP until Mainnet. This is a very high-impact task, and I expect the community to fully support it.

Q: What are the new developments regarding historical data expiration (EIP-4444) and the gateway network? How is the situation with Multidimensional EIP-1559? What are the current research directions for MEV? In addition, are there any resources (such as verkle.info) or recommended individuals to follow that can help me stay informed of these developments at any time?

**Barnabé Monnot：**Hello! Regarding the third question, I suggest you check out the notes prepared for the internal research meeting last month, which can help you understand more. For ePBS, we have already launched a tracker and continuously updated new materials as the issues arise.

More generally, current MEV protocol research can be divided into two main directions. On the one hand, there are some relatively specific protocol upgrade proposals, such as ePBS and FOCIL (committee-based, multi-proposal-style inclusion lists), which are under discussion. On the other hand, there is a broader direction, such as APS (a wide concept around executing bills/auctions) or Braid. Personally, I hope that specific work can provide guidance for more exploratory research.

Q: Are you researching VDFs (Verifiable Delay Functions)? Can you share how you plan to use them? What improvements have you made to existing VDFs?

Antonio Sanso: Mary Maller discussed VDF in her speech at Devconnect, which can be viewed here. I also presented related topics at the 2024 IC3 Winter Retreat. For more information about the event, please click here.

Justin Drake: There are two aspects of VDF: a) building production-level VDF as an encryption primitive, and b) using this primitive in applications.

Let me start from b) the application. The incentive use case of VDF on ETH L1 is to strengthen RANDAO to achieve unbiased randomness for leader election. In my opinion, VDF is the ultimate goal of L1 randomness, and it is still a "lavish" project in Vitalik's roadmap. So far, there is no evidence that RANDAO is being abused, so the research and development of VDF has definitely been deprioritized compared to when I entered the XTZ hole a few years ago. Other L1 projects (such as inclusion lists, stake limits, SNARKifying L1) are more important.

In addition to the L1 leader election, another important use case of VDF is lottery. In my opinion, building a 'world lottery' is an easily achievable opportunity. It is provably fair, global, and commission-free. If you want to build this, please DM me :) Another interesting VDF application that has recently emerged is the simultaneous release of blocks in the context of multiple proposals. In an unexpected turn of events, Max Resnick became the VDF bull.

Now to a), it turns out that this is much more difficult than I expected (years of work!), but there is light at the end of the tunnel. We now have MinRoot VDF ASIC, which I believe can be used for lottery production, even though theoretically there has been no actual attack on the 256-bit MinRoot analysis. We now need a team to complete the integration work to verify the MinRoot SNARK proof on-chain (e.g., Nova or STARK proof). This is easy for BN254 MinRoot, but Pasta curve requires wrapper SNARKs. If you are interested in doing this integration work, please PM me:)

Early this morning, Grass (commonly known as Xiaocao in the community) announced on the X platform that TokenAirdrop inquiry has been launched (click here to go to the Airdrop inquiry link). The inquiry page only reflects the allocation of the testing Alpha season and the first seven seasons, excluding the ongoing reward season and the to-be-announced distribution. The total supply of GRASS Tokens is 1 billion, of which 10% is allocated for the first Airdrop, and the detailed Airdrop distribution is as follows:

· Test Alpha Season: 1.5%;

· Season 1-7: 7%;

· Reward season (current): 0.5%;

· To be announced: 1%.

"Xiaocao" is also a project that has gained a lot of popularity in the airdrop frenzy recently. So when the Token query news came out, major "airdrop" communities suddenly became lively. Users who participated in the interaction went to check the number of Tokens they received. However, what followed was a variety of grievances spreading on social media:

"5.8 GRASS, am I not mistaken? It's definitely a reverse move. Is there anyone with less than me?"

"Batch processing a bunch of accounts, how come only a few tens of coins were given for one billion points, how is it calculated in the end?"

"Started promoting from the first season, invited a total of 101 fren to participate, the computer has been down for almost a year, often using VPN during this period, only one account, a total of over 7 million points, but only Airdroped 63 GRASS, not even enough for the electricity bill, it's really unbelievable."

"When the grass succeeds in reverse, I am a beggar on the Internet, I am a clown."

……

Community member query screenshot

It can be said that currently on social media, whether it's individual accounts or studios that mass produce content, almost all are complaining about the small amount of tokens distributed in the Grass airdrop, filled with resentment. Below, the Odaily Star Daily will briefly introduce the Grass project, off-market price situation, and other information.

Grass Project Introduction

Image source: Official Twitter

Grass is the first project deployed on Solana that combines AI, Depin, and Solana technologies, positioned as the Data Layer for AI. As a decentralized network, Grass aims to provide the data needed for AI model training by accessing public networks. This makes Grass an important component of the AI Data Layer, laying the foundation for its position in the field of AI as it expands to the process of cleaning and preparing structured datasets.

According to the ROOTDATA data, currently, Grass has completed a second round of financing, with a total amount of 450 million U.S. dollars, respectively:

· In July 2023, Grass announced the completion of a $1 million Pre-Seed round of financing, with participation from No Limit Holdings, Big Brain Holdings, Builder Capital, Cogitent Ventures, Kyle Samani, Neel Somani, Rahim Noorani, etc.

In December 2023, Grass announced the completion of a $3.5 million seed round financing, led by Polychain Capital and Tribe Capital, with participation from Bitscale, Big Brain, Advisors Anonymous, Typhon V, and Mozaik.

Over-the-Counter Price

Currently, neither Grass Token nor Over-the-counter Trading have been listed on the well-known Over-the-counter Trading platforms AEVO and Whales Market. Whales Market only previously launched the Over-the-counter Trading market for Grass Points. With the release of Token Airdrop news, the off-market price has dropped significantly, now trading at $0.00015 per point, with a nearly 40% decrease in the past 24 hours.

Grass OTC Trading Price K-line

Currently, there is buying interest in the OTC market at $0.2-0.25, organized by the community, but according to community feedback, sellers seem unwilling to engage in Over-the-counter Trading at such a low price. Some sellers want to sell at a price near $0.5.

OTC price list of a certain community

Therefore, if sold at $0.5 each, the majority of users' Airdrop amounts are concentrated between 10-100, receiving approximately $5-50 Airdrop rewards, a solid 'pork chop rice'.

It is worth mentioning that GigaBuds, the Non-fungible Token project launched by Grass stealthily, did not fall after the release of TokenAirdrop query message, but showed a slight pump, currently at 2.472 SOL with a 12.18% increase in 24 hours. 1% of the tokens in the Airdrop are currently officially labeled as 'to be announced', so perhaps the price of GigaBuds did not fall but rather rose in anticipation of this 1% being given to Non-fungible Token holders.

GigaBuds Non-fungible Token K-line chart

Original link

Nearly 250,000 users have joined the newly launched World Liberty Financial official Telegram channel, demonstrating a strong public demand for financial innovation.

In order to fundamentally change the banking and finance industry, the 45th President of the United States and potential 47th President, Donald J. Trump, announced that the upcoming groundbreaking Decentralized Finance platform will be renamed from 'The Decentralized Financeant Ones' to 'World Liberty Financial'.

In an exciting video shared with his 90 million followers on X platform (formerly known as Twitter), President Trump detailed his ambitious vision to make the United States the global leader in Crypto Assets. He firmly stated, 'This afternoon, I will unveil my plan to ensure that the United States becomes the capital of the global Crypto Assets. They want to stifle you, hinder your business growth, but we will not allow this to happen.'

World Liberty Financial is a revolutionary project initiated by President Trump, Donald Trump Jr. and Eric Trump, and has assembled top talents in the fields of Cryptocurrency, Decentralized Finance, finance, and technology, such as Steve Witkoff and Corey Caplan, to jointly create a pioneering Decentralized Finance encryption team.

Eric Trump excitedly announced on the X platform: "Very excited to launch @WorldLibertyFi! The new era of finance has arrived."

Driven by strong public demand for change, World Liberty Financial aims to revolutionize the traditional banking and financial system, which lacks innovation, accessibility, transparency, and inclusiveness, by providing financial solutions that meet the needs of the 21st century. As a pioneering Decentralized Finance platform, World Liberty Financial will redefine people's understanding and interaction with finance, providing a fair and accessible Digital Bank, challenging the status quo of traditional banking systems.

Donald Trump Jr. emphasized that this is not just a simple Memecoin, but a substantial financial platform dedicated to providing top-notch financial and banking tools for Decentralization, while strictly adhering to relevant regulations to ensure user safety and obtain legitimate status in the financial industry.

World Liberty Financial's official Telegram channel has attracted nearly 250,000 subscribers in just a few days, and this number is still rising, highlighting people's strong expectations for the transformation of the banking and financial system. "This extraordinary milestone witnesses the unwavering confidence of every supporter in our vision. Our team is working tirelessly behind the scenes to launch revolutionary innovations and redefine the Decentralized Finance field. Your trust and participation inspire us every day to break the boundaries of what is possible. Thank you for joining us on this journey. Please continue to follow the exciting future progress!"

World Liberty Financial is the only encryption Decentralized Finance platform supported by President Donald J. Trump. Donald Trump Jr. retweeted on X platform, saying, "For a long time, ordinary Americans have been exploited by big banks and financial elites. It's time for us to unite and fight together."

The approaching 250,000 and continuously increasing number of users demonstrate a strong global demand for revolutionizing the banking industry. This is just the beginning of the transformation. The industry leaders of the World Liberty Financial team and the developers of Decentralized Finance are committed to providing a serious, long-term solution to bring users a more transparent and accessible banking experience.

For those who wish to participate in this banking and financial revolution, World Liberty Financial offers a solution. More information will be released through its Telegram channel (@defiant1s), Telegram Chinese channel (@WorldLibertyFinancialDefi), and X platform (@worldlibertyfi) in succession.

Selected News

1.Decentralized Finance zone Token appeared in the rise market, 1INCH rose by 25% in 24 hours.

2.Ethereum network Gas fee rose to 25.78 gwei

The Eigen Foundation has released the details of the second season of Stakedrop, and it will be available for collection no later than September 17.

4. Grass launches the Airdrop inspection page, with the first Airdrop accounting for 10% of the total amount

Yuga Labs launches the sequel to Dookey Dash game and offers a $1 million game incentive

6. Aleo announces the incentive plan Airdrop recipients and the process of claiming Tokens

7. Synthetix is about to launch the SNAXchain application chain

8. Trump-related encryption project WLFI White Paper shows that 70% of Tokens will be reserved for internal personnel.

9. The electronic cigarette chain platform PuffPaw completed a $6 million seed round of financing, led by Lemniscap Ventures

New Listing Mining (‼️High Rug Risk‼️)

Daily new projects or community follow dynamics, sorted and ranked by the number of followers and rise of X Alpha account. Data source: getmoni.io

1.Etheism（@EtheismProtocol）

Etheism is a serialized ERC-20 Token with the SUG image of 'Etheist Freak' directly embedded into the transaction data of the Token. Unlike the standard ERC-721 Token that stores images using a separate protocol, Etheism integrates its image directly into the Token itself, establishing Etheism as a protocol different from traditional Token standards. In the case of selling the Token, its related genome will not disappear, but will re-enter the available genome pool, ready to be used in the generation process of future purchases.

2.TaxFarm.ing（@TaxFarming）

TaxFarming is a platform on the simplified ETH block chain for Token creation and deployment, providing developers with a secure and cost-effective solution, aiming to empower creators and protect investors, ensuring a fair and transparent environment for everyone. Allowing developers to easily issuanceToken with minimal risk while ensuring that all participants (creators, investors, and holders) benefit fairly.

3.Toshimon（@ToshiMon_）

Toshimon is an on-chain PvP battle game that uses Non-fungible Tokens as in-game assets and has launched a Beta version on Ethereum and Polygon.

4.Stoned Nouns（@stonednouns）

Stoned Nouns is the first CC0 brand to build an ecosystem for Nouns, and has officially migrated to Base.

5.Anura（@ageofanura）

Age of Anura is a platform that fully harnesses the potential of blockchain technology. In the narrative of Ethereum as a decentralized world computer, it views DAO as a grassroots community governance organization, as well as art and storytelling as mediums to attract a wide audience.

New popular meme (‼️High zero risk‼️)

Daily meme market hotspots and fund trends, sorted by volume/market cap ratio and 4h profit, data source: DEX Screener

Ethereum ecosystem

1.FARM（Ethereum）

Mcap：6M

24h Volume：5.4M

Today's highest profit for buying at 6AM (GMT+8): 1400%; current profit: 1400%.

2.E

Mcap：3.3M

24h Volume：10M

Today 6AM (GMT+8) maximum profit from buying: 70%; current profit: 3%

3.BONZI

Mcap：2.7M

24h Volume：5.9M

Today, the highest profit for buying at 6 AM (GMT+8) is 40%; current profit: -20%.

Solana Ecosystem

1.SHIT

Mcap：11.7M

24h Volume：5.4M

Today's highest profit from buying at 6AM (GMT+8): 5%; Current profit: 2%

2.PAYHUB

Mcap：464K

24h Volume：4.7M

Buy at 6AM today (GMT+8) highest profit: 40%; current profit: 27%

3.think

Mcap：400K

24h Volume：2.2M

Buy at 6AM (GMT+8) today, the highest profit: 45%; current profit: 26%

4.MOPE（Solana）

Mcap：469K

24h Volume：2.1M

Today 6AM (GMT+8) buy highest profit: 0%; current profit: -28%

Decentralized Finance Dynamics

Daily Decentralized Finance market capitalization and volume changes, sorted by DEX aggregator and Perp DEX volume and rise, data source: Decentralized FinanceLlama

Aggregator Volume Changes

1.Paraswap

2.Jumper

3.WOWMAX

4.Injex

Perp DEX Volume 变动

1.Contango

2.IPOR

3.Pingu

4.BSX

Polymarket 每日精选

1.2024 Golden Globe winner

**2. How many people watched the US presidential debate?

3. 泰勒·斯威夫特会出席 NFL Kickoff 吗？

Contract Monitoring

Ethereum ecosystem daily contract dynamics observation, sorted and arranged according to Gas consumption growth rate and deployment time, data source: DeFiLlama

Ethereum Today's Hot

Latest Deployment

Token Unlock

Market Data

Market fund heat and flow observation, data source: Coinglass, Sososvalue

Funding Rate

ETF Net Inflow and Outflow

Featured Articles & Data

文章&Threads

1.《Crypto Policy Needs to Empower Builders, Not Speculators》，Christian Catalini, Jai Massari

2.《A thought experiment on centralization and forking and BTC purity》，Kyle Samani

3. 'Insufficient Understanding of Team Operations and on-chain Liquidity Leads to SICK Crash', encryption Weiduo

Data

Daily selected data dashboard, data source: Token Terminal

1. Ethereum L1 profits have decreased by 99% in the past 6 months

2. The number of borrowers and Tokenholder quantities in the Aave protocol remain stable rise

3. Polymarket user data is rising exponentially

Podcast

1.《Is the Ethereum Roadmap Off Track?》，Bankless

2.《The Open Networks Path Forward | Analyst Round Table》，BlockWorks