星球日报

The original text is: "原文作者：Bugsbunny—e/acc，加密 KOL"

The translated text is: "Original author: Bugsbunny—e/acc, encryption KOL"

VC Cost Dips Guide 1.1 (Revised Chinese Version)

Dare to provide you with a unique reference for catching the bottom from the "market capitalization-valuation" method in perhaps the whole Twitter.

1. Let me explain the meaning of "市值为 1-2 倍估值" in this table.

If VC cannot bring returns of more than 2 times, they would rather directly buy BTC (Fun fact: BTC had a rebound of nearly 80% this year).

When the coin price is at a valuation of 1-2 times, the project party buys back the coin from the VC, just like that.

(AltCoins' biggest selling pressure comes from unlocked coins) At this time, there is nothing more to sell, and market makers can inject liquidity at this time.

Why not look at the seed round valuation?

Seed round projects VC invests in 50, only one of them may succeed, but they should make money from it.

And the seed round valuation and unlock date are chaotic and unpredictable.

Why look at Market Cap instead of FDV?

Most blockchain projects are difficult to operate for more than 2 years, while FDV often starts at 5 years.

If calculated based on FDV, the significance of this table will be very poor.

4. How to use this guide?

Green represents the coin price within 1-2 times the market capitalization valuation.

The coin price is 2-3 times the valuation in blue.

Coins with no color filled in have a valuation that is more than three times higher.

Red means the price has fallen below the valuation.

In theory, market makers need to maintain their market capitalization within a range of 1-3 times the valuation, because there is no further room for decline (this is not the only metric but an important one that cannot be ignored).

So maintaining strong coin prices such as coins with a valuation of 2 times or more (blue marked or unmarked) means that market makers are of higher quality.

5. How are valuations obtained for projects that do not have valuations?

Data source @CoinMarketCap@RootDataLabs, token unlocks, thanks to the data support from these three service providers.

Some projects do not have a PR valuation, so we can only try to estimate it. Please don't criticize too harshly.

6. Note: Extra attention is needed. The highlighted part represents coins that will be unlocked in May and June, which may bring additional selling pressure to the market.

After unlocking, the table will update the relevant data.

Original Link

Original | Odaily Planet Daily

How about the author?

In the past few weeks, more and more institutions have been disclosing their holdings of Bitcoin spot ETF to the SEC. According to Bitwise, as of last week, a total of 563 institutions have disclosed their holdings, with a total value of $3.5 billion. Bitwise expects the final number of institutional holdings to exceed 700, with assets under management exceeding $5 billion.

According to Blockworks data, the total AUM (Assets Under Management) of Bitcoin Spot ETF in the United States is currently 58.3 billion US dollars. If institutional holdings are only 5 billion US dollars, as predicted by Bitwise, who is buying the remaining assets of over 50 billion US dollars?

Actually, the $50 billion shortfall includes capital injections from the issuer before the Bitcoin spot ETF is launched. Excluding this factor, the institutions disclosed in the P13 document still hold a relatively small share, and the majority of the remaining funds come from small and medium-sized institutions and retail investors who do not meet the disclosure threshold of the P13 document.

Retail investors and small to medium-sized institutional investors dominate the Bitcoin spot ETF market, which may be attributed to the significant price increase and multiple breakthroughs in the past six months, driving retail investors to buy in.

In addition, although the proportion of Bitcoin spot ETF shares held by large institutions is relatively low, it has already exceeded other ETFs. In this article "Bitwise Chief Investment Officer: Who is Buying Bitcoin ETF?", the data of Bitcoin spot ETF and gold ETF are compared. In terms of institutional holdings alone, the number of Bitcoin spot ETF holdings has surpassed that of gold ETF at that time.

In general, Bitcoin Spot ETF is a good investment target for financial institutions, especially in the current international turmoil and uncertainty of the Fed's interest rate cuts. Traditional finance needs high-quality assets with certain risk resistance like Bitcoin to compensate for overall investment risk.

The previously disclosed list of well-known institutional holdings of Bitcoin, entitled "Unveiling BTC Spot ETF Holdings Institutions: Who is the Number One?," was previously compiled by Odaily Star Planet Daily. However, recently, there have been institutions with new holdings exceeding 100 million US dollars, including globally renowned institutions such as Morgan Stanley and UBS. As a result, Odaily Star Planet Daily has updated the previous chart inventory as follows.

This article is from "Reconciling the two opposing paths for Decentralized Stablecoins" & "PureDai: Returning to the ideological roots of Dai"

Author: Rune Christensen

Translated Text: "How to compile: Odaily Planet Daily"

This article combines two articles by Rune Christensen, the founder of MakerDAO, on the future expansion of Dai. Starting from the trilemma of stablecoins, it explains how Dai achieves two-way "guidance" in the Endgame transformation plan, namely the decentralized stablecoin brand NewStable (specific name not yet released) and PureDai. The specific development plans for these two different brands are also disclosed.

The following is the original text related to the development direction of Dai in two articles, compiled by Odaily Planet Daily.

Please note that the translation is in English. > >

When the Dai plan begins to expand, it faces two dilemmas in the development of stablecoins. One is whether it can be rooted in the pure decentralized culture of cryptocurrencies, and the other is how to achieve the original intention of Dai - mass adoption. However, these two directions are fundamentally conflicting, as described in the "Stable Coin Trilemma", it is impossible to simultaneously achieve USD pegging, maintain pure decentralization, and scale massively.

MakerDAO: Since a single stablecoin brand cannot solve the trilemma, let's launch two brands.

MakerDAO believes that there are two main paths to solve the three difficulties of stablecoins: prioritize utility and scale, and pursue a purely decentralized path.

• Prioritize utility and scale: This choice includes USD-pegged and Real-World Assets (RWA) collateral, which requires integration with TradFi and alignment with real-world entities.
• Going the purely decentralized path: This path requires completely abandoning centralized control and relying strictly on decentralized collateral. Although the traditional view suggests that achieving significant growth is more challenging when prioritizing decentralization, the Maker community has always believed in the potential of this approach and there is a certain demand for this type of stablecoin.

The transition to the dual stablecoin solution of Dai should be a gradual and cautious process, which may take several years to complete the transition.

NewStable will inherit most of Dai's use cases and will focus on mass market adoption and compliance with regulatory requirements for real-world asset support, while maintaining a level of decentralization to ensure transparency, resilience, and checks and balances in the stablecoin system.

At the same time, Maker will provide a second purely decentralized stablecoin called PureDai for users who prefer the vision of pure decentralization to choose from.

From the perspective of MakerDAO's decision-making in the face of the triple dilemma of stablecoins, stablecoins need to expand on a large scale and introduce new users, which inevitably requires a connection with the real-world fiat currency. However, at the same time, decentralization will be greatly weakened. Therefore, MakerDAO has found two solutions by adopting two different stablecoin brands, covering all the different needs faced in the triple dilemma of stablecoins.

NewStable complies with regulations

NewStable will be the main successor of Dai, focusing on rise, yield, and security. NewStable will follow the trajectory of Dai, focusing on utility and adoption, and all features will be customized around this goal. NewStable will be a decentralized stablecoin, aiming to achieve security and transparency by making its governance and infrastructure as secure and transparent as possible.

Freeze Function: In order to ensure NewStable can scale globally in a secure manner, it will eventually be upgraded with a freeze function similar to other major RWA-backed stablecoins. The freeze function will not be implemented at the launch of NewStable, but the token will be upgradable to enable its implementation through governance voting at a later stage.

Dai's liquidity and integrated backend: Dai will continue to operate as it currently does, and if there are any questions, Dai users can continue to hold their Dai. NewStable will take over the RWA and TradFi integration of Dai, deepen and improve these integrations, and make them more robust over time through its resilient and decentralized governance process and transparent infrastructure.

Regarding the specific details of NewStable, Odaily Planet Daily has previously reported on it. For more information, please refer to the article "The Road to Self-Rescue of the Long-standing DeFi Project: Analyzing MakerDAO's Endgame Transformation Plan".

PureDai focuses on Decentralization

PureDai aims to achieve an idealized version of Dai that many Maker community OGs and Ethereum cypherpunk idealists have long desired. The changes brought by Endgame and the specific development needs of NewStable mean that this vision can now be realized without compromise.

PureDai's goal is to create a truly decentralized stablecoin that relies entirely on decentralized collateral and extremely decentralized measures. Its main features include: freely floating target price, highly decentralized collateral, maximally decentralized oracle machine, PureDai's tokenomics governance token, permanent issuance to the PureDai treasury, PureDai governance token burning engine and backing, as well as SubDAO linkage.

Free Floating Target Price

PureDai adopts a mechanism of free-floating peg because it cannot rely on RWA to maintain its peg to the US dollar. Negative interest rates may be necessary to ensure price stability. This mechanism is similar to decentralized stablecoins such as RAI and HAI.

Existing Dai users can choose to upgrade their Dai to PureDai if they appreciate its extreme resilience and decentralization achieved through uncompromising design trade-offs. Advanced stablecoins such as LUSD attempt to achieve a rough peg to the US dollar without the need for a freely floating target price. PureDai may draw inspiration from these innovations, but a freely floating peg is always a possibility and should be the default expectation for users in the long term.

Highly Decentralized Collateral

PureDai is currently planned to only use ETH and stETH as collateral in the early stage. ETH is considered the ultimate decentralized collateral, while stETH improves economic efficiency through Lido's decentralized infrastructure. PureDai's minimal governance will be able to take stETH offline when necessary and may list other liquid collateral ETH tokens that meet PureDai's high standards.

PureDai will launch a DeFi lending platform to maximize the generated amount of PureDai.

Maximized Decentralization Oracle Machine

PureDai needs to maintain liquidity in three AMM pools: ETH/PureDai, stETH/PureDai, and NewStable/PureDai. A portion of the surplus revenue from the PureDai protocol will be introduced into these three AMM pools to ensure their growth over time. The ETH and stETH AMMs are used to generate time-weighted oracle prices for collateral prices in the system's liquidation calculations. The NewStable/PureDai AMM is used to determine the target interest rate.

Governance Token Economics of PureDai

PureDai will have its own governance token, with an initial supply of 2 billion PureDai governance tokens. The initial supply will be allocated to NewStable stakers on the Ethereum mainnet over a period of 5 years. PureDai will not be a SubDAO, as its own governance infrastructure will be completely independent of MakerDAO.

PureDai's initial distribution of governance tokens helps to ensure that Maker's incentive mechanism remains consistent when building and releasing PureDai, and ensures that ownership of PureDai governance tokens is widely distributed without any entry barriers.

Permanently distributed to the PureDai treasury.

To borrowers who use the PureDai vault to expand the supply of PureDai, permanent issuance is offered, which may support higher PureDai demand and growth without the need for negative target interest rates. This mechanism means that all PureDai vaults will have two options: one is for users to only pay the normal stability fee, and the other is to pay a higher stability fee but in return receive PureDai governance tokens.

PureDai governance token burning engine and backstop

PureDai will use surpluses to accumulate, market make and burn PureDai governance tokens. If the bad debt generated from failed liquidation auctions exceeds the accumulated amount of PureDai in the surplus buffer of PureDai, new PureDai governance tokens will be issued to attempt to recapitalize the system.

Interconnected with SubDAO

SubDAO ecosystem will be very suitable for the users of PureDai and build applications on top of it to ensure it has enough legitimate use cases and take advantage of the arbitrage opportunities that arise in such a system. Spark may play an important role in the growth and efficiency of PureDai.

PureDai may be launched after the first three SubDAOs are launched, but the exact order and timing may vary. By introducing PureDai, the Maker community will be able to provide a truly decentralized, resilient, and simple stablecoin product.

Summary

After the launch of PureDai, Dai users will have two complementary options: upgrading Dai to NewStable, leveraging its USD peg and yield features; or upgrading Dai to PureDai, enjoying the advantages of its fully decentralized collateral. Eventually, Dai is expected to be completely deprecated, and all Dai users and integrations will migrate to NewStable or PureDai.

MakerDAO's launch of the dual stablecoin project can not only achieve current growth and revenue goals, but also ensure the continuation and strengthening of the core value of decentralization in future stablecoin solutions. This process will be a journey full of challenges but also opportunities.

Original text: Nancy, PANews

Translated text: Nancy, PANews

Recently, Humanity Protocol, a blockchain identity authentication platform, announced that it has raised $30 million in funding at a valuation of $1 billion. The CEO was exposed to have previously founded the unicorn company Tink Labs, which eventually went bankrupt, resulting in investors losing hundreds of millions of dollars. Meanwhile, Worldcoin, also in the DID field, is facing controversy due to the upcoming massive token unlock, global regulatory setbacks, and the failure of the OpenAI endorsement effect.

Humanity Protocol, a newly emerged unicorn, had a difficult start, while Worldcoin is deeply mired in reputation and business development challenges. The two 1 billion dollar market cap unicorns in the DID field are now facing a new test.

Using the DID protocol with palm recognition technology, the CEO's former unicorn company filed for bankruptcy.

Humanity Protocol is considered a project in the same track as Worldcoin.

As a identity recognition system based on the Polygon CDK established in 2023, Humanity Protocol is developed in collaboration with Human Institute, Animoca Brands, and Polygon Labs. It aims to provide an easily accessible and non-intrusive method for establishing human proof in Web3 applications. Humanity Protocol plans to launch its testnet in the second quarter of this year, with a waiting list of over 510,000 people.

In terms of biometric technology, unlike Worldcoin's use of iris scanning, Humanity Protocol uses palmprint recognition, which is considered to be a less invasive identity verification solution. However, iris recognition has advantages over palmprint in terms of uniqueness, stability, and non-replicability in identity recognition, making it more advantageous in terms of comprehensive security performance compared to other biometric technologies. Moreover, due to the high accuracy and stability requirements of this technology, as well as the high development difficulty and research and development cost, iris recognition has a greater advantage.

Humanity Protocol, like Worldcoin, introduces Zero-Knowledge Proof technology in terms of user data and identity ownership integrity. In terms of financing background, Worldcoin has completed multiple rounds of luxurious financing, achieving a valuation of 1 billion in Series A financing, while Humanity Protocol has also completed multiple rounds of financing. Currently, Humanity Protocol has announced that it has received a lead investment from Kingsway Capital, a seed round financing of $30 million with participation from over 20 institutions including Animoca Brands, Blockchain.com, and Shima Capital. It has also raised approximately $1.5 million from a group of KOLs, with an estimated valuation of $60 million for the KOL round, according to PANews.

Not only that, Humanity Protocol can also be easily accessed on smartphones, just like Worldcoin. The project will release an application that uses the smartphone's camera to scan palm prints for identity verification, and later introduce another layer of security measures using palm vein networks and small infrared cameras for identity confirmation. In the future, this system is expected to be applied to the KYC process of financial platforms, and even enable access to physical places such as hotels and office buildings through palm prints. In addition, Humanity Protocol also plans to issue tokens for payment verification fees.

According to the co-founder of Polygon, Sandeep Nailwal, the Humanity Protocol not only can effectively resist Sybil Attacks, but also integrates verifiable credentials locally into the decentralized validator node network, laying the foundation for building a wider range of blockchain and real-world applications.

After being highly valued and receiving attention from the market, Humanity Protocol CEO Terence Kwok was later reported by foreign media Protos to have almost bankrupted a smartphone company valued at 1.5 billion dollars, burning 170 million dollars of investors' funds.

According to reports, Terence Kwok founded Tink Labs, headquartered in Hong Kong, in 2012. The company had a global user base of 12 million and received investments from Fosun International (a subsidiary of Foxconn Technology Group), Innovation Works led by Kai-Fu Lee, and Cai Wensheng, the chairman of Meitu. Tink Labs primarily provides smartphones for hotel guests to use during their stay, aiming to offer an alternative solution to roaming charges and improve their hotel experience, while also selling collected customer preference data. Interestingly, one of the important reasons behind Tink Labs' significant shareholders is Terence Kwok's father, Kwok Tak-seng, who is a former star private banker at Goldman Sachs, serving high-net-worth clients such as Li Ka-shing and Guo Henian.

According to the Financial Times, Terence Kwok suffered losses due to aggressive expansion policies, cheaper and more accessible roaming fees, and the reluctance of hotels to pay for the phones they gave away. In 2017 and 2018 alone, losses amounted to nearly $200 million, and later faced a liquidity crisis. According to a former employee, Tink Labs' investor SoftBank was concerned that the company "was transferring funds from its Japanese joint venture to other regions to sustain operations," which led to the sudden halt of a major project. Kwok was reportedly unable to pay salaries to employees and contractors, and conducted a large-scale layoff before closing Tink Labs on August 1 of that year. In January 2020, Tink Labs' European division began liquidation, followed by bankruptcy proceedings.

"Tink Labs former head of HR operations commented, 'I never thought it would last, but I didn't expect it to close so quickly. Kwok only cares about making money.' According to previous reports by Fortune Insight, Terence Kwok also said during the startup period of Tink Labs, 'Once the startup fails, I can return to campus, with the lowest opportunity cost. Starting a business for three months is like getting an MBA.'"

Worldcoin will soon unlock a large amount of tokens and face regulatory investigations in multiple countries.

Humanity Protocol has been widely discussed in the market, while Worldcoin is in a hot water due to issues such as token unlocking, regulation, and insiders cashing out at high positions.

According to recent analysis released by DeFi researcher @DefiSquared on X platform, Worldcoin could become the largest wealth transfer event in this cycle. Worldcoin has a serious inflation issue, with the fully diluted market capitalization of token WLD reaching as high as $60 billion. The daily depreciation of WLD is caused by the issuance of tokens for distribution and operator claims, and in the coming months, the unlock amount of WLD will increase significantly, which may lead to massive sell-offs.

According to the analysis by @DefiSquared, on the one hand, once the VC and team tokens of Worldcoin start unlocking, the supply of WLD will increase by 4% every day. According to Token Unlocks data, WLD will face a daily selling pressure of $31.5 million starting from July 24th (calculated based on the price on May 16th).

At the same time, Worldcoin recently revealed in a blog post that World Assets, a subsidiary responsible for token issuance, will conduct private sale of 500,000 to 1.5 million WLD tokens per week for the next 6 months, with a maximum value of $179 million based on current valuation. @DefiSquared pointed out that this portion of tokens accounts for 16.7% of the existing circulating supply (calculated based on a circulating supply of 210 million tokens on May 16), and they are sold at a discounted price. This funding comes from the "community" portion of the WLD token supply, which is being used to benefit the foundation by selling it to counterparties.

"Worldcoin's token economic model was designed to be predatory from the beginning, benefiting the team and early investors. In December last year, the foundation even intentionally terminated market maker contracts (Note: Worldcoin previously announced the termination of agreements with 5 market makers on December 15, 2023), allowing the price to be artificially inflated under low circulation. According to the latest research data from CoinGecko, WLD is one of the four cryptocurrencies with the lowest circulation among the top 300 in terms of market capitalization. @DefiSquared believes that this manipulative design of low circulation and high valuation directly benefits insiders, as they can hedge the overvalued locked shares through contracts and over-the-counter trading before they are unlocked."

In addition, @DefiSquared also pointed out that most retail investors may not even be aware that Sam Altman (OpenAI CEO) is no longer actively involved in Worldcoin and that the project has no affiliation with OpenAI. According to Bloomberg's report in April this year, Worldcoin was seeking collaboration with technology giants such as OpenAI.

Worldcoin is worth mentioning because it is currently facing regulatory bans or investigations related to user data privacy issues in multiple countries around the world, including Spain, Portugal, South Korea, and Hong Kong, China. In order to address this, Worldcoin's main supporters have not only met with relevant government officials to improve government relations, but also open-sourced their iris recognition inference system this year to enhance transparency and implement a new personal data self-hosting strategy. Additionally, they have recently open-sourced a new Secure Multiparty Computation (SMPC) system and securely deleted old iris code to enhance the security of biometric data. Similarly, Humanity Protocol may also face regulatory issues arising from user data collection.

Original Link

Filecoin Network

Since 2020, the Filecoin network and community have grown massively.

Since the launch of the mainnet in October 2020, the Filecoin network has developed rapidly and has become the world's largest decentralized storage network. The diverse ecosystem of Filecoin includes storage providers, developers, data users, token holders, and ecological partners, which are spread globally and continuously expanding.

• About 3000 storage providers are storing the most valuable human information and providing encryption proofs to verify the storage on Filecoin.
• From CERN to Solana to the Internet Archive, over 1800 data users are storing data on the Filecoin network, totaling approximately 2 EiB!
• To achieve a more decentralized storage service, millions of unique network stakeholders and thousands of people are renting tokens.
• Hundreds of successful and independent ecological teams and projects from all over the world are building on the Filecoin ecosystem or working together with the Filecoin ecosystem to further enhance its utility.
• Important community support and governance systems are funded and maintained by many teams, including the Filecoin Foundation (hereinafter referred to as "FF"), which helps manage the reward program, Filecoin improvement proposal process, and Orbit community ambassador program.

Hundreds of teams invest in public products for the Filecoin community

Over the past three years, the Filecoin community has collectively created and funded many projects, tools, and systems to promote network development and rise. The Filecoin Foundation, Protocol Labs, and many other key stakeholders such as GLIF, Web3 mine, Titan, IPFS Force, ChainSafe, actively participate in the community and continuously contribute time and resources to ensure the development, availability, and maintenance of critical public products, thereby driving the development of Filecoin and the entire decentralized network. The relevant cases are as follows.

• OSS repositories, tools, and documentation: Over the years, Protocol Labs has contributed to the development and implementation of many key OSS building blocks used by Filecoin, such as IPNI() and Boost(), Drand(), Filecoin documentation(), as well as IPFS(), lib p2p( p2p.io/), Multiformats(), and many other OSS projects' specifications and best practices, which now support Filecoin and many other blockchains.
• Filecoin Implementation Development: Developers from around the world have been adding and updating components of the Filecoin stack for many years. For example, three independent user implementations have come together to enhance network resilience by bringing user diversity to the network and continuously supporting protocol evolution: Lotus, which is the reference implementation in Go language and has been maintained by Protocol Labs internal team until the launch of the mainnet; Venus, another Go language implementation managed by the IPFSForce team; and Forest, a Rust language implementation created by ChainSafe.
• Key Ecological Tools: Many network teams have built key tools that have laid a solid foundation for the network's activity and visibility, enabling builders to develop applications on Filecoin. For example, Starboard() has received funding from FF and built the Filecoin Network Health Dashboard() and Filecoin DeFi Rankings(). In addition, Zondax has also received support and created the Filecoin ecological browser Beryx(). Multiple GLIF projects are also building interoperable applications and development tools for the network, including Resource Manager(), Wallet(), and RPC API().
• Help bring humanity's most important data to Filecoin: While most of the data stored on Filecoin is independently introduced by storage providers or data client ends, some public datasets are supported by funding from PL, FF, or other institutions - including Solana's chain history, data from the Victor Chang Cardiac Research Institute, and data related to the Search for Extraterrestrial Intelligence Institute. The Decentralized Storage Alliance (DSA) is also helping to lead the architecture of decentralized storage use cases.
• Creator Program and Community Activities: Filecoin is a global community, so global gatherings are needed to connect the ecosystem. Hundreds of teams in the community have come together to host and sponsor events, workshops, and seminars around the world, including: Fil Dev Summit, FIL-City related activities such as FIL Vegas, FIL Hong Kong, FIL Bangalore, major conferences such as Consensus, ETHDenver, and EthCC, LabWeeks, Filecoin Orbit community activities, and plans to reach a wider audience of web3 developers through hackathons, incubators, and the Creator Program. In 2023 alone, Filecoin (and Filecoin Virtual Machine) participated in more than 20 hackathons and established partnerships with major accelerators such as Tachyon, Graph Paper Capital, and ETHGlobal!

As a community, continuous investment in the growth and maintenance of Filecoin public products is crucial for the long-term success and health of the ecosystem. To achieve this goal, many teams were established last year with the aim of creating, developing, and maintaining Filecoin public products.

Key introduction to ten public product teams dedicated to maintaining and developing FIL

To foster the development of the Filecoin ecosystem, hundreds of independent developers, community members, and ecosystem teams are collaborating every day. Today, we are pleased to acknowledge some thriving "network product" teams who are working hard to improve and maintain the Filecoin protocol, ecosystem, network infrastructure, and open-source projects. Some of these teams were previously incubated within organizations like Protocol Labs and have now become independent organizations within the innovative network that has emerged alongside PL's development. These teams are now fully autonomous within the Filecoin community.

Today, each team is composed of experienced engineers, operators, researchers, and builders familiar with the Filecoin protocol. They are sponsored by public product funding from FF, PL, and other organizations, and are committed to the development and rise of Filecoin's ecosystem public products.

1. FilOz() is an independent protocol research and development team, focusing on improving and securing the Filecoin protocol, maintaining OSS code repositories such as Lotus, Builtin-Actors, and ref-fvm, and helping to expand the participation of OSS developers in Filecoin protocol development. Welcome to follow their work in the #fil-lotus-dev (50 PPW 2 X) and #fil-protocol (4 ODgwMzM 4 MzMwMS 0 zN 2 YxZjMwNDIzMTJiOWM 2 YjA 3 MjEwYThmNzM 4 ZWE 2 ZjgxYWQ 0 YzQ 5 MzM 0 YjhjZmM 1 Nzg 4 OTFmMjg 2 ZTljMjIx? recommended\_build\_version= 1713460047 \\u0026build\_manifest\_last\_modified= 1713462732) channels on Filecoin Slack.

2. Curio Storage() is committed to supporting, maintaining, and improving the operational efficiency of storage providers, and building new software and features for Filecoin storage providers. Please follow the Filecoin Slack channel #fil-curio-docs( 06 J 30 HHM 3 R) or visit curiostorage.org().

3. FilPonto() is committed to providing integrated support for Filecoin ecosystem partners, while coordinating chain-based infrastructure and tools to make Filecoin more accessible to technical audiences. For more information about the team's mission, please visit filponto.io().

4. Elliptic Research() focuses on the proof and circuit of Filecoin, and supports the encryption security of Filecoin's underlying protocol and proof. Please feel free to contact the team through the #fil-proofs (EGB 67 XJ 8) channel on Filecoin Slack and maintain the Proofs repository on GitHub.

5. Ansa Research() focuses on publishing reports on decentralized infrastructure networks and reporting on digital networks aimed at rebuilding the operation of internet infrastructure. For more information, please refer to their special report on Filecoin, Filecoin TL;DR().

6. CryptoEconLab() is a collective of research scientists dedicated to analyzing the economic challenges of cryptocurrencies, including in-depth research on the Filecoin ecosystem and cryptoeconomics.

7. NFT.Storage() is transforming together with the newly established NFT.Storage DAO to become a donation-based NFT storage program, which is an important step towards sustainable NFT preservation. For more information, please visit NFT.storage()!

8. Chainsafe DevOps() develops and operates network infrastructure services, such as the FIL chain snapshot service, network bootstrappers, and calibration testnets.

9. Filecoin Incentive Design Lab (FIDL) is a public product team dedicated to creating tools, monitoring systems, and experiments to improve the Filecoin Plus ecosystem. For more information, please visit fidl.tech.

Starboard Networks has taken on a new responsibility to maintain and improve the critical monitoring dashboard used by the Filecoin community and Filecoin Core Devs to track network upgrades and identify potential alerts. You can follow them on #starboard or dashboard.starboard.ventures.

In addition to the above-mentioned teams, there are many other teams and funds in the PL network that are dedicated to promoting public products in the Filecoin ecosystem, including IPNI(), Glif(), Public Goods Crypto() (PGC), IPDX(), Kariba Labs(), FilStor(), SEAD(), and more!

These independent teams will work together to continue leading the way in creating new practices and integrations, participating in protocol design, providing public network services, and participating in influential working groups. Each team is built on years of experience in the Filecoin community, benefiting from substantial public product funding from various network stakeholders, and ultimately contributing to the collective sustainable future by focusing on protecting Filecoin's public products.

Expand and support more FIL public product plans

In addition to the valuable plans, tools, and teams mentioned above, the Filecoin community has a new resource for attracting, rewarding, and maintaining public product plans in the ecosystem! The FIL-RetroPGF-1 financing round (inspired by Optimism's RetroPGF) will be launched in early March 2024, dedicated to further supporting and funding the development of Filecoin's public products. The community has nominated over 100 teams to apply for retroactive funding, rewarding their impactful contributions to the Filecoin ecosystem! For more information about this program, please watch the latest FIL Dev Summit talk from ETH Denver (?v=wT9YeFemzPA%5c&list=PL_0VrY55uV1_88_dDYcGmhCcK6Y3eRhRJ%5c&index=11) or join the #fil-retropgf channel on Filecoin Slack (06KSDK0811/p1715072615486319?thread_ts=1715054530.822599&cid=C06KSDK0811).

In April 2024, LabWeek Public Goods(), a decentralized conference hosted by Protocol Labs and Foresight Institute in San Francisco, also discussed new approaches to improving the best practices for financing public goods. The inaugural LabWeek brought together experts to discuss how to support critical resources for a more abundant, sustainable, and fair digital future. Summaries of the week-long event's discussions and speeches will be published on the LabWeek schedule/calendar.

Lastly, but equally important, we invite all Filecoin stakeholders and community members to participate in the Filecoin public product through network governance, sponsoring research projects (20% ask, 20% grants @ protocol.ai), joining the ecosystem team, or speaking, discussing, or participating in events at the upcoming FIL Dev Summit. We look forward to seeing your contributions impact the entire Filecoin ecosystem!

Thank you to the many community supporters who prioritize the collective interests of the Filecoin ecosystem. These efforts to advocate for the public good, combined with the contributions and efforts from teams and individuals around the world, are crucial for the continued advancement and innovation of Filecoin.

Original Text: 原文链接 Translated Text: Original Article Link

Original author: BlockTempo

MakerDAO founder Rune Christensen spoke further at X about the design and implementation details of its new stablecoin, PureDai. PureDai aims to be a completely Decentralization stablecoin, with features such as floating target prices and highly Decentralization Collateral.

Protocol Decentralization lending protocol Rune Christensen, founder of MakerDAO, following yesterday's announcement of plans for a new stablecoin in two different directions, NewStable and PureDai in the Endgame program, today further introduced his thoughts and principles on the design and implementation of PureDai on X.

The details of NewStable (NST) were reported on the 4th, which will be an upgraded version of Dai, so it still focuses on the stable peg with the US dollar, with RWA as a reserve asset, and Dai holders can choose whether they want to upgrade to NST.

What is PureDai?

Returning to PureDai, Rune said that its goal is to achieve an idealized Dai, the "true Decentralization" stablecoin that the veterans of the Xu long Maker community (OG) and Ethereum the broader cyberpunk vision and idealists aspire to.

To achieve this, Rune designed PureDai in an uncompromising way, with the following features:

1. Floating Target Price

2. Decentralization of high-quality Collateral: Only accept extremely Decentralization and fully verified Collateral (e.g. ETH, STETH). In addition, PureDai will launch a lending platform to maximize the supply of PureDai.

3. Oracle Machine with high decentralization

4. Minimal governance: No budget, no contributors.

5. Permanently positioned in Ethereum Mainnet: Layer 2 solutions and bridge are maintained by the community.

6. Simple tokenomics: Promote the rise of the supply side of stablecoins.

In addition, the name of PureDai is only tentative at this time, and the final name will be finalized based on input from the community and future users.

Floating price target

The most important feature of PureDai is the ability to achieve a floating target price, and since there is no guarantee of a long-term peg to the US dollar, PureDai must achieve a free-floating peg as it is not possible to use RWA (real world assets) to drop prices on a large scale when demand exceeds supply.

In order to maintain price stability, Rune points to the need to introduce a negative target Intrerest Rate (meaning that the cost of holding stablecoin increases) in response to a situation where persistently high demand exceeds supply, which will cause the target price to fall over time, thus theoretically maintaining some form of price stability, but this does not guarantee a fixed ratio to any specific coin. This is the mechanism employed by Decentralization stablecoin RAI, HAI, etc.

Rune said that while existing Dai will remain pegged to the US dollar, users will have the option to upgrade to PureDai to enjoy its extreme decentralization and resilience.

PureDai governance token economics

Just as NewStable has its own governance token (code name NewGovToken, NGT), PureDai will also have its own governance token (PureDai Governance Token), which has the following characteristics:

The initial supply is 2 billion

• The initial supply will be distributed in the NewStable Mining on Ethereum Mainnet for a period of five years
• Permanently distributed to PureDai vaults users to subsidize the generation of PureDai
• PureDai's surplus will be used to accumulate governance tokens, which are realized through the Burn (Smart Burn Engine).
• Governance tokens act as a backstop in the event of bad debts on PureDai

The governance token initial supply of PureDai will be distributed to NewStable users on the Ethereum Mainnet for Token of 400 million per year for a period of five years (subject to adjustment). According to Rune, this will help incentivize the Maker community to develop and release PureDai and ensure that governance token owners are widely distributed. PureDai will not become a SubDAO, its governance structure will be completely independent of Maker, and there will be no permanent Token release in Maker's favor.

Link to original article

Attitudes towards Crypto Assets have become an important topic in the US election this November. Interestingly, users not only see traditional pollsters continue to provide data, but also see Polymarket, a prediction market platform based on Crypto Assets, gaining popularity. As of May 16, nearly $127 million has been bet on the topic of "winners of the 2024 presidential race", of which, $15 million is betting on Trump, who has a 50% chance of winning, $14.55 million is betting on Biden, which has a 42% chance of winning, and none of the other three candidates has a 3% chance of winning.

Just a few days ago, on May 14, Polymarket announced that it had raised $70 million through two funding rounds, the most recent of which was led by Peter Thiel's venture capital firm Founders Fund, and Polymarket's investors also include Ethereum co-founder Vitalik Buterin.

Polymarket was launched in May 2020 in response to the widespread spread of misinformation during the pandemic, and the platform went live in mid-June of that year. Also in time for the 2020 and 2024 U.S. elections, the interweaving of major events has gradually brought this Crypto Assets-based prediction market platform into people's eyes and market hotspots.

NYU dropped out of the Department of Computer Science to start a business and admired Hayek

Polymarket founder Shayne Coplan, 26, once studied computer science at New York University on his LinkedIn page, according to his LinkedIn page. According to public reports, in many longer ways, Coplan has the temperament of a new generation of entrepreneurs. He is an artist who is fascinated by P2P file sharing in an era when people love to share music. Since then, he has been exposed to Bitcoin and has easily understood the Intrinsic Value of a global peer-to-peer asset network.

When Ethereum was announced in 2014, Coplan became an early follower and is believed to be the youngest of the presale participants. Two years later, at the age of 18, Coplan began working on Blockchain projects, and in June 2016, he interned at Chronicled in the San Francisco Bay Area, where his role was to "follow the Chief Product Officer and help decide how the product interacts with the Ethereum Blockchain." ”

Since then, Coplan has also been obsessed with Crypto Assets, launching a series of startups and founding a Decentralized Finance startup called Union.market, which is directly the predecessor of Polymarket. Although he later dropped out of school, he has been thinking for a long time about some of the specific problems faced by the creation of prediction markets and decentralization markets over the past few years. He called Hayek's famous essay "The Use of Knowledge in Society" an early entrepreneurial inspiration, and Coplan also drew on longest years of academic research on prediction markets. Hayek's related idea is that people are more likely to accurately understand the likelihood of uncertainty when economic incentives are at work. People read longer and better sources of information, think deeper, and try to invest their money in actual outcomes that are more likely to happen.

"When COVID broke out, there was so long uncertainty and so long different perspectives, [I think] if there was only a free market on these topics, people could tie money to their opinions," Coplan once told the media.

On June 16, 2020, the beta version of encryption prediction market Polymarket was released, but at the time there was high friction for users, only Metamask login was supported, the Ethereum Money Laundering was too high, and the Liquidity was limited. Three months later, with the release of the second phase of Polymarket, Coplan's approach to building Polymarket became clearer and clearer. The platform was ported to Ethereum's second layer, Matic (now Polygon), to drop gas fees for betting. He also designed the system for users who did not have Ethereum Wallet. All bets are placed in USD-pegged stablecoin USDC and can be purchased by debit or credit card.

Just a few months after its initial launch, Polymarket managed to attract attention with a massive $4 million seed round led by prominent investors Polychain Capital and Naval Ravikant.

The 2020 U.S. election became a catalyst for Polymarket. On November 3 of that year, affected by the U.S. election, Polymarket's volume soared to $1.297 million, from unknown to up-and-coming.

Polymarket's volume and monthly active population since its launch in 2020

With more long positive feedback from the community and market recognition, Polymarket later attracted a Series A funding round, which General Catalyst helped the company raise $25 million in a Series A funding round with participation from Airbnb's Joe Gebbia and Polychain, among others.

Most recently, Polymarket's Series B funding reached $45 million, led by Peter Thiel's Founders Fund and existing investors 1cofirmation and ParaFi, with participation from Ethereum co-founder Vitalik Buterin and Dragonfly and Eventbrite co-founder Kevin Hartz.

Fined $1.4 million by the CFTC, the submarine prediction sparked controversy

Polymarket's development has not been without its challenges. In January 2022, Polymarket was fined $1.4 million by the Commodity Futures Trading Commission for regulatory violations and received cease and desist orders, including for failing to register as a trading intermediary facility. Protocol to the settlement, Polymarket committed to reducing its service in the U.S. and continuing to operate overseas.

However, Polymarket has also stepped up its compliance efforts. In May 2022, Polymarket appointed J. Christopher Giancarlo, a former U.S. Commodity Futures Trading Commissioner, to its Advisory Board.

In addition to this fine, in June 2023, according to Mother Jones, a tweet about the results of the Titan Diver went viral, causing quite a few negative consequences for Polymarket. There's a bet on Polymarket on whether the submersible will be found by a certain date, with users betting more than $300,000 on whether the missing submarine will be found "by June 23." This has sparked online discussion about the ethics of profiting from potentially fatal events.

"Betting on someone else's death belongs to which stage of capitalism," one Twitter user asked, posting a screenshot showing the odds on Polymarket. The sentiment touched a nerve, and the post quickly went viral, garnering more than 9, 000 retweets and more than 150, 000 likes. "It's insane. Imagine making money by whether someone dies or not," replied another user, which was liked more than 1, 000 times. Others began to directly criticize Polymarket for opening up this prediction.

The developing Polymarket responded to ethical concerns, describing the submarine market as "irrelevant to any outcomes for passengers." "We understand that there has been some confusion due to the misunderstanding that our prediction market is related to the fate of passengers. We want to emphasize that this is not true," Polymarket wrote. "Our goal is not to profit from this unfortunate event. We didn't do that either. It's about helping people better understand the world around them. ”

"Break through" in the encryption prediction market track, when will it mature?

prediction market itself has a long history, but in the encryption space, the first Decentralization prediction market was Augur, which was launched on the Ethereum in July 2018. Augur was developed by the Forecast Foundation, which was founded in 2014 by Jack Peterson, Joey Krug, and Jeremy Gardner. The Forecast Foundation is advised by Ron Bernstein, founder of defunct company Intrade, and Vitalik Buterin, founder of Ethereum.

In addition to Augur, Polymarket is not the only prediction market in the market, but also Gnosis, Hedgehog, PlotX, Projection Finance, Sanr.app, Better.fan, Feel.market, and many more. However, Gnosis turned to community management projects after failing to meet expectations. Other encryption prediction market, such as Veil, were simply shut down.

Early prediction market experiments based on Crypto Assets, such as Augur and Gnosis, have also been hit hard by Ethereum's long-standing scaling problem. In addition, they all initially used native tokens, adding friction to the user experience. Polymarket has learned from the mistakes of its predecessors.

After 4 years of development, Polymarke has now successfully "broken through", and will even be cited by media reports and industry research on some key issues as a reference for public opinion.

As of May 14, there are longing hot topics on Polymarket's website: Who will win the 2024 presidential election, for example? Will the May 31 Ethereum ETF pass? Will $GME hit an all-time high by Friday?

According to Token Terminal, Polymarket's highest volume so far this year came on January 10 at $5.73 million. The platform experienced a significant rise in the number of monthly active users in January, rise from 1,600 on January 1 to 4,100 on February 1, with a slowdown in monthly active users after April. As of May 15, the forecast on Polymarket has reached $202.7 million.

Following the recent funding round, Coplan said on LinkedIn, "The most gratifying thing is to see Polymarket being widely adopted as an alternative news source." The trend is clear: thanks to Polymarket, people are more aware of what is happening in the world. Fed up with the rhetoric of experts and Algorithm-generated news. In this age of rampant misinformation, Polymarket offers a new form of information that drives truth through financial incentives, rather than luring to get clicks. People want unbiased information. Polymarket is providing this. ”

As a firm believer in market theory, Coplan believes that forecasting platforms are a true way to better understand reality.

Polymarket has attracted the attention of longest industry insiders. Vitalik used Polymarket to track Sam Altman's board exit. Packy McCormick, an advisor at a16z Crypto, has also said that Polymarket's page is probably the best place on the internet to start the day.

Riding on the social hotspots, with the support of celebrity users, Polymarket has become the biggest encryption prediction market, however, to achieve its original intention, continuous optimization of the product experience and avoiding risks and ethical dilemmas are crucial challenges for future development.

Original article by FIL Network

Decentralization storage is growing rapidly, and FIL is at an important juncture. This article proposes two areas where ecology needs to be redoubled and ways in which we can track progress. This article is by no means exhaustive, but is based on longing years of being part of the FIL ecosystem, gathering feedback from users, builders, and the community, and thinking deeply about what the network needs to do.

This article mainly has the following two parts:

• What's the most important thing about FIL in 2024?
• Why is it important and how is progress measured?

We hope that with the right North Star guidance, the team will be able to better coordinate and identify the convergence between project interests and ecological interests. The proposed framework and indicators should make it easier for capital and resource allocators in the ecosystem to assess the level of impact that each team is creating and allocate capital and resources accordingly. For startups, this can help identify points of alignment between broader ecosystem efforts and their roadmaps and product launches.

What's important about FIL in 2024?

1. Accelerate the conversion to paid transactions: Helping FIL providers increase their paid services (storage, retrieval, compute) is critical to driving cash flows into FIL, as well as supporting sustainable financing of their hardware beyond Token incentives.

2. Rising on-chain activity: FIL's goal is not just to be another L1 with similar user scenarios. But as a base layer, it does have a unique value proposition that incorporates "real-world" services. This enables new use cases unique to FIL (Programmability services, Decentralized Finance around cash flow, etc.). The establishment and increasingly long application of these services proves that FIL is not just a "storage layer", but an economy with stable cash flows.

3. Make FIL indispensable: Bull Market cycle means speed is critical, and so is making FIL an integral part of a more long team. There are longest emerging topics to tap into, such as chain archiving, compute integration, artificial intelligence, and the positioning of FIL itself is important. When more long actors use FIL as a central part of their story, the ecology explodes. For individual teams, this means that it is important to deliver products to users. On an ecological level, this means focusing on the teams closest to driving integrations and building services on FIL.

The verticals in our framework are still at a high level, where many long goals have their own set of tasks. But more importantly, there is ecological consensus that this is the right vertical to make progress. We'll dive into each vertical and some of the specific metrics that the ecosystem should start tracking.

Why is it important and how is progress measured?

1) Accelerate the conversion of paid transactions

As a storage network, FIL should maximize cash flow. It's all well and good to have incentives as an enabler, but without stable (and rising) paid transactions, FIL can't reach its full potential.

Paid transactions (at the time of on-chain Settlement) are net capital flowing into the FIL economy and can be the foundation for unique use cases in our ecosystem. Decentralized Finance, for example, does have the opportunity to provide real services to businesses (such as converting coins to pay for storage).

There are two main ways we can rise our paid services:

1. Drive the rise of existing services (data archiving)

2. Expand into new markets with additional services (hot storage, compute, indexing, etc.).

In both cases, we need to do some work to reduce the friction of paid on-ramps, or introduce new features to raise the floor bar (as seen in on-ramps and projects trying to bring FIL services to market). Most importantly, the FIL ecosystem collectively prioritizes the right efforts to make FIL services marketable and allocates resources accordingly.

There are already longest teams making substantial progress in this area, such as CID.Gravity, Seal Storage, Holon, Banyan, Lighthouse.storage, Web3 Mine, and Basin. We can measure progress by helping to reduce resistance and helping to propel them to success.

We recommend measuring success in this vertical in two ways:

1. Total amount and dollar value of data stored in paid transactions (self-reporting section)

2. Total amount of data stored in paid transactions and USD value (on-chain portion)

In the second quarter of 2024, the Public Goods team took the following initiatives:

FilOz: To drop storage costs and significantly increase retrieval speed, newly attested FIPs are being developed. DeStor: Helping to drive enterprise adoption of business-ready on-ramps. Ansa Research, FIL Foundation, etc.: Web3 BD's support for ecosystem builders.

• Targeted funding to directly support efforts to rise sustainable on-chain paid transaction activity.

2. On-chain activity is rising

FIL, as an L1, has more than just storage services. Building a strong on-chain economy is critical to accelerating the services and tools that others are building with. In the FIL ecosystem, we have a unique opportunity to achieve true economic mobility through paid on-chain transactions.

Our on-chain economy revolves around supporting these processes, whether it's automating updates, designing retrieval incentives, creating conditions for permanent storage, or establishing economic benefits for network operators, creating a flywheel effect that enables compounding rise.

As FIL have more long of their own economic activities in the on-chain, the value of Token will continue to accumulate, allowing ecosystem users to use FIL in a more efficient way, creating a real demand for services within the ecosystem.

We propose the following metrics to collectively measure success:

1. Contract call

2. Active FIL Address

3. On-chain payment volume

Some notable creators have already planted seeds for on-chain infrastructure to take advantage of some of these fundamentals (such as the GLIF team dedicated to liquid staking, the Lighthouse team focused on storage endowments, and the Fluence team supporting computation).

Several improvements can significantly reduce the resistance to drive on-chain activity, prioritizing the following in Q2 2024:

FilOz: F3 brings fast finality to FIL, both to improve the bridge experience and to enable more long "trade" between FIL and other economies (e.g., local payments for FIL services by other ecosystems). FilOz: Reimagining FIL transactions (e.g. using stablecoins) for more flexible payments. FilPonto, FilOz: Reduces EVM technical debt and dramatically reduces resistance for builders to port Solidity contracts to FIL (strengthening surrounding infrastructure to provide more stable services).

3) Make FIL indispensable

The vertical is broad, but we believe there are two key ways to consider the impact that the FIL ecosystem is having:

1. The first is high-profile integration, FIL is critical to the success of users and their propositions, and the ecosystem is especially critical to provide the necessary support for these cross-chain integrations.

2. The second is to focus on specific verticals, where activity is high and rising. FIL is uniquely positioned to deliver value, both in the basic elements it has and in its cost profile and scale.

At present, the opportunities of Web3 are endless, and the ecosystem should revolve around on-ramps to coalesce workflows and make FIL an integral part of areas such as computing, DePIN (sensor direction), social, gaming, artificial intelligence, and on-chain archives.

We recommend the following metrics to evaluate FIL's indispensability:

1. Number of partners and integrations

In the second quarter of 2024, the ecosystem team made long a number of efforts to help on-ramps succeed in this area:

Ansa Research, FIL Foundation, DeStor, and others:

• Formation of a new working group to accelerate the sharing of ecological BD and marketing resources
• Share BD resources for FIL ecosystem builders
• Sharing marketing resources and scaling up (#eco-amplification in FIL slack) helps signal ecosystem wins
• Community Discord helps expand accessibility, visibility, and drive community engagement

Final Thoughts

Combined with the above, we hope that FIL's direction in the coming year will be clearer. FIL is at a critical juncture, and longest of its parts are converging. protocol and ecology evolve naturally, and each stage requires different priorities and strategies to achieve the next stage of rise. By focusing on the ecosystem, we believe the FIL ecosystem can take its resources and support further.

We're excited about what's coming and how FIL continues to expand the adoption of Web3 rails. Going forward, Ansa Research will regularly update key metrics on the progress of the FIL ecosystem.

Link to original article

Originally written by Karen, Foresight News

On May 17th, the Linea Surge event officially kicked off. Linea has launched the first phase of the Linea Surge Points Program (Volt 1), which aims to drive a thriving ecosystem by attracting more long users and increasing TVL on the network, which promises to open a new chapter in Linea's rise flywheel.

Despite the PUA controversy and complaints among some community users, Linea has previously made it clear that Linea Surge is the final piece of the puzzle before embarking on its journey to decentralization to create a truly community-owned and operated network.

As part of the program, Linea will award LXP-L points to participating users who hold assets on Linea and deploy them on Decentralized Finance protocol. Linea Surge will run for 6 months (6 Phase Volts), or until its TVL reaches $3 billion. As the campaign progresses, the distribution of LXP-L in each phase will be reduced by 10%, which means that the earlier you participate, the more long the rewards. According to Linea, users can earn LXP-L points per hour by simply cross-chain assets to Linea, keep them in on-chain state, and deploy them to designated protocol.

For users with more than 0.1 ETH of existing liquidity until the last block on May 16 at 07:59, they will receive Volt 1's LXP-L early adopter multiplier as an additional reward. In addition, Liquidity deployed in a single protocol must be greater than or equal to $24 in the Linea Surge campaign for credits to be counted. It is worth mentioning that Linea said that there is no need to check witches for this event, and users will receive the same number of points regardless of whether they concentrate all their liquidity into one wallet or disperse it across K Address.

There are three main ways to obtain LXP-L points, namely ecosystem points, referral points, and veteran points. Among them, ecosystem points are mainly used to incentivize users to cross-chain or deposit assets into Linea and interact protocols across various ecological protocols; Referral points are distributed through Linea Surge's referral mechanism, while Veteran points are long wick candle additional rewards for users with significant historical activity and contributions on the Linea platform.

The chart below illustrates the weighting of ecosystem points, with long wick candle having the highest weighting for Liquidity points for ETH and LRT on DEXs and lending platforms, as well as rewards for ETH cross-chain activities, long wick candle less weight for stablecoin, LST, and RWA.

Which Tokens Are Allowlisted by Linea Surge?

The Linea Surge campaign has Allowlisted the following Tokens:

• ETH、wETH、WBTC、nextwETH、mBTC、SolvBTC；
• LRT/LST：weETH、wrsETH、uniETH、ezETH、inETH、ankrETH、wstETH、mpETH、STONE、frxETH；
• RWA：sUSDE、wDAI、EURO 3、LUSDC、agEUR、USD+、USDT+；
• Stablecoins: USDC, USDT, DAI, alxUSDC, nextUSDC, nextUSDT, nextDAl, USDE, GRAI, Added, LYU.

21 protocols participate in the Linea Surge event

Teahouse Finance: Longing Decentralized Finance asset flexible management platform, focusing on centralized liquidity provision on Uniswap V3;

PancakeSwap: a longest DEX protocol;

Secta: Linea's ecological DEX and Launchpad, there is no issuance of platform tokens and no launch of Launchpad, but Secta's first Launchpad will issuance its own platform Token SECTA. The main use case for the Secta Token is to secure distribution in the projects it incubates and launches.

Token economic model: 57% to the community, 5% to the public sale, 15% to investors (6 months fully locked, 24 months linear release), 3% to advisors (12 months fully locked, then 24 months linear release), 20% to teams (12 months fully locked, then 24 months linear release).

Mendi Finance: A lending protocol in the Linea ecosystem, which has introduced the Mendi Loyalty Points (MLP) program, which is a soul-bound ERC-20 Token that will be distributed proportionally to users who borrow and borrow protocol and stake protocol. Mendi Finance said that if there is a potential airdrop given to Mendi in the future, MLP will be used as the accounting system for the distribution to distribute the airdrop fairly to holders. To gain liquidity, Mendi Finance will bribe Lynex weekly, and the earned oLYNX will be distributed to MENDI stakes. Mendi Finance was issuance Token at the end of last year, and the Token economy and distribution model can be found here.

Connext:Layer 2 Interoperability protocol;

Overnight: Asset management protocol that provides conservative stablecoin investors with passive income products based on Delta-neutral strategies.

Sushi: longest DEX protocol;

Lynex: Linea's ecological Liquidity Engine, aggregates automated Liquidity Manager (ALM). Each transaction on Lynex generates a transaction Token fee, which is used to reward active voters and strengthen the Lynex treasury. Lynex has been issuance Token.

SyncSwap: zkSync Era, Linea, and Scroll ecosystem DEX protocol, not issuance Token.

Deri Protocol: Decentralization derivation protocol, issuance Token.

Velocore: The zkSync Era and Linea ecosystem have been issuance Token based on Velodrome's veDEX protocol.

SpartaDEX: The gamification DEX of the Arbitrum One and Linea ecosystems has been issuance Token.

iZUMi Swap: long chain Decentralized Finance protocol, providing a one-stop Liquidity-as-a-service (LaaS), has been issuance Token.

Stargate: cross-chain bridges, issuance Token.

Celer Network: cross-chain bridges, issuance Token.

NILE: DEX protocol, issuance Token.

Gravita Protocol: A ETH-centric long-chain LST lending protocol that has not yet launched protocol governance token.

Lyve Finance: Linea's ecological stablecoin project, which supports the use of ETH or LST minting stablecoin LYU, and can also revolve and borrow, has been issuance governance token.

ZeroLend: Decentralization lending protocol on zkSync, Manta Network, Blast, and Linea, issuance Token.

Renzo: stake protocol again, it's issuance Token.

Clip Finance: An automated yield solution that unlocks CLIP Tokens for the first time when TVL reaches $1 million, and a points system will be released soon. CLIP Token holders can enhance their Liquidity Mining through stake Token and also have governance rights, which can be tokenomics here.

How to participate in Linea Surge efficiently long a fish?

So how do you earn the most long LXP and ambush potential Airdrop in the most capital-efficient way? Some of the paths include:

Path 1: Use cross-chain bridges to ETH cross-chain to Linea, deposit LRT or LST Token in the stake protocol stake ETH and borrow protocol, for example, provide wrsETH (Kelp DAO issuance LRT Token on ZeroLend, you can earn twice Kelp Miles, Linea LXP-L points, 5% Turtle (virtual Liquidity protocol) LXP-L points and TurtleDAO points from Turtle Club; Or borrow stablecoin GRAI (Gravita Protocol's issuance over-collateralization debt Token with ether.fi weETH at Gravita Protocol, and then provide Liquidity at NILE to earn the most LXP in the most capital-efficient way.

Path 2: ETH cross-chain to Linea with cross-chain bridges, deposit Liquidity and LP Token in DEX protocol, such as Connex cross-chain ETH, Velocore with Liquidity and stake LP Token to earn LXP-L points, pre-mine reward LVC from Velocore, and Carrot points from Router Nitro.

Original | Odaily

Author | Husband How

In the early morning of May 17, community members posted on social media that the Solana eco-meme launch platform pump.fun suspected of having $80 million worth of SOL Token and a large number of meme coin stolen. Subsequently, the attacker "STACCoverflow" blew himself up on platform X and Airdrop dozens to hundreds of SOL Token to the owners of meme Token on the Solana, threatening that these Airdrop would cause Solana to fork because of this.

According to several tweets from the attacker "STACCoverflow", the attacker's mental state is suspected to have been hit by the death of a family member and made a retaliatory attack. However, some community members reported that the attacker was suspected of being an internal employee of pump.fun and used the Private Key leak to attack pump.fun.

Is it the internal employees who insist on self-theft, or the "injured" Hacker who carries out the global airdrop? Odaily takes a holistic look at the theft of pump.fun and analyzes its impact on pump.fun and Solana.

pump.fun When attacked, the fastest reaction is Wallet

On the evening of May 17, some Solana users found themselves long dozens to hundreds of SOL Token in their Wallet. Later, community members found out that the suspected Hacker was attacking pump.fun, and Hacker was also posting on platform X. As can be seen from the content, the attacker was very emotional and the content of the tweet was rather confusing.

After learning that the attackers were going to Airdrop the stolen funds, some community members also replied to their tweets with Wallet Address words of encouragement. Especially after learning that the attacker was suspected of falling into madness because of the death of his mother, he was collectively mourning the attacker's mother and attaching the Address.

Quite a few SOL Token users who have already been Airdrop by the attackers have posted thanksgiving and praising the attackers' actions. In addition, some people have launched the meme coin BunkerFuts. According to Birdeye data, the BunkerFuts Token has pumped nearly 19 times at most.

Lgor Lamberdiev, head of research at Wintermute, posted that pump.fun was Private Key compromised because the service account Address 5PXxuZ somehow signed txs to transfer funds to attackers and random Address instead of deploying the Raydium pool, a move that proved highly likely to be a pump.fun compromise Private Key led to the attack.

How do attackers steal pump.fun funds? Attackers exploit the marginfi lending platform to flash loan attack pump.fun and fill up all pools on pump.fun that have been created but not filled to the point where they can be used on Raydium. At this time, the SOL Token in the pool were transferred to the Private Key leaked Address because they met the criteria of Raydium, and the attacker siphoned off the transferred SOL Token in time.

Is it true that the attacker stole $80 million worth of tokens?

As a victim of this attack, pump.fun finally spoke out and revealed that the attacker was a former employee of the company, and used his privileges in the company to illegally obtain withdrawal permissions, and carried out flash loan attack with the help of a lending protocol, ** stealing about 12,300 SOL (worth about $1.9 million). **

Subsequently, pump.fun official posted that the contract had been upgraded, and the attackers could no longer steal any funds, and suspended the transaction, and it is currently unable to buy or sell any Token. Any Token currently being migrated to Raydium cannot be traded and will not be migrated for some time to come. Any Token that has been successfully transferred out of pump.fun's contract and locked Liquidity on Raydium is safe. If a user has ever connected a Wallet to a pump.fun, the user's Wallet is secure.

It is worth mentioning that when an attack occurs, the fastest response is not pump.fun official website, but related projects such as Wallet, and Phantom Wallet and Bonkbot suspend their association with pump.fun as soon as possible.

pump.fun Trust has fallen to freezing point, and it may gradually die out in the future

Looking back at the entire pump.fun theft, there are a few particularly interesting phenomena.

The first is the praise and pursuit of the melon-eating masses for the Hacker's behavior of "random money", and the first reaction of many people when they see the news is to see if the wallet has SOL transferred, and there is a sense of "opening the mystery box". Of course, it may also have something to do with the fact that you are not pump.fun users, after all, it is none of your business.

Another question worth pondering is why pump.fun former employees still hold company privileges after they leave the company, which ultimately leads to the attack. One possible reason for this is pump.fun opacity of its own mechanism leads to the existence of "backdoors" that can be exploited. With this attack, the user's trust in pump.fun has also dropped to a freezing point. If effective solutions are not taken in the future, pump.fun may gradually fade out of the public eye and gradually disappear.

Finally, the impact on Solana, the author believes that as long as it does not involve the defects of the public chain's own mechanism, it is only the risk caused by the project's own problems, which has almost no impact on the development of Solana.

Original author | Bankless

Compile | Golem

The development of Bitcoin ushered in an explosive rise. New concepts such as Ordinals, Runes and BRC-20 are coming into focus. This marks a major shift in the Bitcoin ecosystem, which is evolving from a focus on BTC as an asset, to a more vibrant ecosystem for people to use, build, and speculate.

Within the Bitcoin ecosystem, L2 is now the new hot topic. Everyone wants a piece of Bitcoin L2, but what exactly are we hyping it about? In this article, we will look at Bitcoin L2 from a global perspective and answer key questions about Bitcoin L2: the necessity, current situation, future prospects, and ultimate destination of Bitcoin L2.

Why Bitcoin needs L2

The Bitcoin network is designed with a focus on security and decentralization, but trade-offs are made in the scalability of its network. While this makes BTC a more valuable asset, it also means that the Bitcoin network is not the ideal infrastructure for building financial applications, as evidenced by the birth of Ethereum.

For nearly a decade, the Bitcoin community has struggled with scalability, with fees reaching tens of dollars during peak on-chain transactions. And now, thanks to experiments such as Ordinals, Runes, BRC-20, etc., the demand for Bitcoin Block short has reached new heights:

• Ordinals caused Bitcoin fees to pump by 280% during the year in December 2023;
• Since the launch of Runes, its volume accounts for 68% of total Bitcoin volume;
• BRC-20 has led to the long spike in Bitcoin Money Laundering in the past year, with these Money Laundering accounting for 74% of the Block Reward at one point.

Bitcoin's vision is to become a universally accessible and widely adopted coin. To achieve this, it must scale to handle more long transaction demands without burdening each transaction with high fees. The rise demand for Bitcoin Block short underscores the need to expand Bitcoin while also reflecting the intrinsic need for Bitcoin L2.

The current state of Bitcoin L2

The Bitcoin community has been actively improving the scalability of transactions for longing years. An important development in this area is Lighting Network – a payment channel protocol that aims to enable faster and cheaper transactions by processing them outside of the Bitcoin Mainnet. Although the Lighting Network has long been the flagship solution for Bitcoin's scalability vision, the community is increasingly aware of its limitations. There is a growing consensus that the Lighting Network may not be the ultimate scaling solution for Bitcoin and that Bitcoin needs a better L2.

Eric Wall discussed the need to improve L2 in a recent episode of Bankless, suggesting that Bitcoin's scalability could go beyond what the Lighting Network can currently offer in the future.

BitVM's trust-minimization commitment

For now, the focus is on BitVM, a new model for executing Turing Complete contracts on Bitcoin that could pave the way for optimistic rollups on Bitcoin.

The main reason the community considers BitVM to be superior to other scalability options is its compatibility with Taproot upgrades. This means that BitVM can be deployed without further modifications to the Bitcoin network, being able to retain the existing rules of the Bitcoin network. It's a win-win situation for all kinds of people in the Bitcoin community.

BitVM's approach involves executing transactions off-chain and verifying those transactions on-chain with fraud proof during the challenge window, a mechanism similar to Ethereum's optimistic rollups.

The system can operate even with only one validator, but its trust assumption is that there must always be at least one honest validator in the system capable of detecting and broadcasting malicious transactions. However, this also means that if all validators are compromised, the integrity of Bitcoin will be at risk, as attackers can post fraudulent transactions on the network.

Simplified BitVM operation diagram. Source: The Bitcoin L2 Opportunity

BitVM only allows the creation of trust-minimized Bitcoin L2s, such as optimistic rollups, and not trustless Bitcoin L2s, such as ZK-Rollups. In addition, similar to the optimistic rollup on Ethereum, BitVM faces issues such as the prolonged controversy and the fact that operators must lock up large amounts of capital to ensure that there is sufficient liquidity available in the event of a bank run on withdrawals.

As a result, there is a degree of skepticism in the Bitcoin community about the usefulness of BitVM. However, it is worth noting that BitVM is still in the early stages of development, and although it is not the most ideal solution, it is expected to scale Bitcoin through optimistic rollups.

Zero-Knowledge dreams

So, what exactly is the ultimate vesting of Bitcoin L2? The answer is ZK-rollups.

However, it is not easy to build a ZK-rollups on Bitcoin, and even at the moment it is technically impossible...... This will require a Soft Fork to change the Bitcoin network, which is easier said than done. The Soft Fork will add a new Operation Code to Bitcoin, enabling it to natively identify and verify zk-SNARKs, allowing trustless interactions between Bitcoin and rollups. However, as mentioned earlier, this is a huge technical hurdle, and its feasibility is uncertain.

That being the case, BitVM is still in its early stages, and neither optimistic rollups nor ZK-rollups can be implemented on Bitcoin at the moment, so why is there already such long Bitcoin L2 in the Bitcoin ecosystem?

The reality is that, technically, there is no real Bitcoin rollups yet. But we can see that some teams are focused on laying the groundwork for the future of Bitcoin L2.

BOB's phased approach to building Bitcoin L2. Source: BOB official website

For example, some rollup teams, such as BOB, are taking a phased approach. They started by launching the ecosystem as an EVM rollup, attracting users, TVLs, and dApps; They then plan to transition to OP-Rollups when BitVM technology matures, and eventually they will evolve into ZK-Rollups if Bitcoin undergoes a soft fork to add the necessary Operation Code.

Conclusion

The hot hype in the market always leads to long scam projects. In this Bitcoin L2 craze, Xu long projects falsely claim to be Bitcoin L2, so investors and users alike need to be cautious. The jury is still out on whether projects that claim to be Bitcoin L2 are real Bitcoin L2 or simply use the title to attract venture capital and retail investors.

Despite the reality, these are still exciting times for the Bitcoin community. From Bitcoin Spot ETF launches, which mark institutional entry, to new concepts such as Ordinals, BRC-20, and Runes, the Bitcoin ecosystem is experiencing unprecedented rise and innovation.

The prospect of Bitcoin L2 adds longer expectations to the future of Bitcoin.

Original article by Foresight News, Alex Liu

Solana is a high-performance Blockchain platform designed to support dApps, known for its speed and scalability, which is made possible by a unique Consensus Mechanism and architectural design. In this article, we will use Ethereum as a comparison object and briefly introduce the characteristics of the Solana smart contracts programming model.

Smart contracts, on-chain programs:

A program that runs on Ethereum is called a smart contract, and it is a series of codes (functions) and data (states) located at a specific address on Ethereum. Smart contracts are also Ethereum accounts, called contract accounts, which have balances and can be traded objects, but cannot be manipulated by humans and are deployed on the network to run as programs.

The executable code that runs on Solana is called an on-chain program, and they interpret the instructions sent in each transaction. These programs can be deployed directly to the network core as native programs, or released as SPL programs by anyone.

• Instructions: Instructions are a term specific to Solana on-chain programs. On-chain programs consist of instructions, the smallest unit in which a specific operation is performed: each Solana transaction contains one or longer instructions. Instructions specify the actions to be performed, including calling specific on-chain programs, passing accounts, entering lists, and providing byte arrays. Instructions have computational limitations, so on-chain programs should be optimized to use a small number of computational units, or split expensive operations into longer instructions.

• Native program: A native program that provides the functions required by the verification Node. The most famous of these is the Program, which manages the creation of new accounts and the transfer of SOL between two accounts.
• SPL program: defines a series of on-chain activities, including Token creation, exchange, lending, as well as creating staking pools, maintaining on-chain domain name resolution services, etc. Among them, the SPL Token Program is used for Token operations, while the Associated Token Account Program is often used to write other custom programs.

You call it a smart contract, I call it an on-chain program, everyone says it differently, but they both refer to the code running on the Blockchain. Zhang San, Li Si, and Wang Mazi are all personal names, and other aspects have to be examined in terms of quality.

Account model, data decoupling:

Similar to Ethereum, Solana is also a Blockchain based on an account model, but Solana provides a different set of account models than Ethereum that stores data in different ways.

In Solana, accounts can hold wallet information and other data, and the fields defined by the account include Lamports (account balance), Owner (account owner), utable (executable account), and Data (data stored by the account). Each account designates a program as its owner to distinguish which program the account uses as a state store. These on-chain programs are read-only or stateless: the program account (executable account) only stores BPF bytecode and does not store any state, and the program stores the state in other independent accounts (non-executable accounts), that is, Solana's programming model decouples code and data.

The Ethereum account is primarily a reference to the EVM state, which smart contracts both the code logic and the need to store the user's data. This is often considered a design flaw left over from the EVM's history.

Don't underestimate the difference! Solana smart contracts are fundamentally harder to attack than Blockchain with a coupled programming model, such as Ethereum:

In Ethereum, the smart contracts "owner" is a global variable that corresponds one-to-one to the smart contracts. Therefore, calling a function may directly change the "owner" of the contract.

In Solana, the "owner" of a smart contract is the data associated with the account, not a global variable. An account can have longer owners instead of being linked one-to-one. To exploit the security vulnerabilities of smart contracts, attackers need to not only find the problematic function, but also prepare the "correct" account to call the function. This step is not easy, as Solana smart contracts typically involves long input account and manages the relationship between them through constraints such as account 1.owner==account 2.key. The process from "preparing the right accounts" to "launching an attack" is enough for security monitors to proactively detect suspicious transactions that create "fake" accounts related to smart contracts before an attack.

Ethereum's smart contracts are like a vault that uses a unique password, and as long as you get this password, you can get full ownership; Solana, on the other hand, is a vault with longest passwords, but to get permissions, you must not only find a way to get the password, but also figure out the corresponding number of the password before you can open the lock.

Programming Languages

Rust is the primary programming language for developing smart contracts on Solana. Because of its performance and security features, it is suitable for high-risk environments of Blockchain and smart contracts. Solana also supports C, C++, and other (very uncommon) languages. SDKs for Rust and C are officially provided to support the development of on-chain programs. Developers can use tools to compile programs into Berkley Packet Filter (BPF) bytecode (files with .so extensions) and deploy them to Solana on-chain to execute the smart contracts logic through the Sealevel parallel smart contracts runtime.

Because the Rust language itself is difficult to get started with, and it is not customized for Blockchain development, long there are many requirements that require reinventing the wheel and code redundancy. Xu long long's newly created programming language dedicated to Blockchain development is based on Rust, such as Cairo (Starknet), Move (Sui, Aptos).

Many long projects in production use the Anchor framework

The Ethereum smart contracts is mainly developed in the Solidity language (the syntax is similar to java, and the code files are extended with .sol). Due to the relatively simple syntax and more mature development tools (Hardhat framework, Remix IDE...). Usually we think that Ethereum is a simpler and faster development experience, while Solana development is more difficult to get started. So despite the popularity of Solana right now, the number of developers in Ethereum is still far long than Solana.

In certain road conditions, top-of-the-line cars don't run as fast as modified cars. Rust is like a top-of-the-line racing car, which strongly guarantees the performance and safety of Solana, but instead of developing this track for on-chain programs, it has caused the difficulty of driving (development) to rise. Adopting a Rust-based public chain that develops a custom language for the on-chain is equivalent to modifying the car to make it more road-friendly. Solana is at a disadvantage at this point.

Summary

Solana's smart contracts programming model is innovative. It provides a stateless approach to smart contracts development, with Rust as the primary programming language, and an architecture that separates logic from state, providing a powerful environment for developers to build and deploy smart contracts, ensuring security and performance, but it is difficult to develop. With a focus on high throughput, low cost, and scalability, Solana remains the current choice for developers looking to create high-performance dApps.

Reference Links

Originally written by Matt Hougan, Chief Investment Officer, Bitwise

Original compilation: Luffy, Foresight News

Spot Bitcoin ETF has been a great success. Since their launch on January 11, they have attracted $11.7 billion, making them the most popular ETF of all time.

Now everyone wants to know: who's buying, exactly? Specifically, people want to know whether professional investors or retail investors are driving the flow of money.

This is an important question. The great promise of Bitcoin ETFs is that they can open the door for professional investors to buy Bitcoin in large quantities, thereby significantly increasing the pool of funds to invest in Bitcoin.

If it's a professional investor buying, that's certainly good. But if it's all retail investors, it's not so encouraging. Why? Because the scale behind it is not the same at all.

In the first few months after the ETF launched, there was no answer to this question. Investors buy ETFs through brokerage accounts, which means that fund companies like Bitwise won't know who is buying their funds. BUT ONCE A QUARTER, THE U.S. SEC REQUIRES INVESTORS WITH MORE THAN $100 MILLION IN ASSETS UNDER MANAGEMENT TO REPORT THEIR HOLDINGS OF PUBLICLY TRADED SECURITIES THROUGH SO-CALLED "13 F" filings.

Technically, these documents should be filed within 45 days of the end of the quarter, which means investors have until May 15 to file their reports. But k people have already submitted reports, so we now have a glimpse of the owners of these ETFs.

The data is very, very interesting, and here are the three most important points.

Point 1: long professional companies have Bitcoin ETF

To write this memo, I analyzed all 13 F filings for 11 publicly traded Spot Bitcoin ETF as of May 9. The big finding is that long professional investors have Bitcoin ETF.

These include some well-known asset managers, such as:

• Hightower Advisors: According to Barron's, the company is the second-largest RIA company in the United States, with $122 billion in assets under management. They own $68 million worth of Bitcoin ETFs.
• Bracebridge Capital: Boston-based Hedging fund that manages funds for Yale University and Princeton University, among others. They hold $434 million worth of Bitcoin ETFs.
• Cambridge Investment Research: A long-40-year-old company with more than $170 billion in assets under management. They own $40 million worth of Bitcoin ETFs.
• Sequoia Financial Advisors: Headquartered in Towson, Maryland, with a market capitalization of $17 billion. They own $12 million worth of Bitcoin ETFs.
• Integrated Advisors: A Dallas-based company with longest 12, 000 clients and $4 billion in assets under management. They own $11 million worth of Bitcoin ETFs.
• Brown Advisory: A $96 billion company headquartered in San Francisco. They own $4 million worth of Bitcoin ETFs.

As of last Thursday, a total of 563 professional investment firms reported holding $3.5 billion worth of Bitcoin ETFs. By the May 15 filing deadline, I estimate that we could end up with longest specialist firms and close to $5 billion in total Assets Under Management.

It's definitely a big deal. For any financial advisor, family office, or institution wondering if you're the only one considering investing in Bitcoin, the answer is obvious: you're not alone.

Point 2: Historical size of holdings held by professional investors

For a new ETF, this Holdings size is extraordinary. Large long ETF attracted very few 13 F filers in the first few months of the listing. Bloomberg ETF analyst Eric Balchunas said the number of large investors in Bitcoin ETFs is surprising.

The closest comparison I can find in history is the gold ETF launched in late 2004. At the time, the launch of a gold ETF was considered the most successful ETF ever, raising more than $1 billion within five days of listing. But at the time of the first filing of the 13F file, the gold ETF was only invested by 95 professional companies.

In terms of breadth of ownership, Bitcoin ETFs have been a historic success.

Point 3: Retail investors hold the majority of the outstanding shares of the Bitcoin ETF

While I think $30-5 billion and 563-700 companies have been a huge success, it's important to remember that Bitcoin ETFs have $50 billion in assets under management. Therefore, as a percentage of the total investment, professional investors own only 7-10% of all assets.

I suspect the media will catch on to this number, suggesting that these ETFs are "retail-driven" funds. In a way, their claims make sense: retail investors do invest a lot of money in Bitcoin ETFs, and that's a good thing. This means that they are able to access these investments on the same terms as the largest institutions in the world.

But I think this statement ignores a key pattern that we see in institutions in terms of Crypto Assets allocation.

Let me explain.

Why these 13 F files make me unusually optimistic

Bitwise has been helping professional investors acquire Crypto Assets for more than seven years. Today, we serve k companies, including RIAs, brokers, family offices, and institutions.

One thing I've learned from my seven years of practice is that most long investors follow a familiar pattern:

• Step 1: Due Diligence. Large long professional investors need 6-12 months to evaluate Crypto Assets. It is extremely rare for a client to allocate funds into the field immediately after the initial meeting.
• Step 2: Personal Configuration. We often see professionals making a small amount of personal configuration before configuring on behalf of their clients. They want to test investors before they bring them to market.
• Step 3: Configure independently for the customer. Next, these professionals typically make configurations on behalf of a small number of clients, usually those who actively ask them about Crypto Assets.
• Step 4: Platform-wide configuration. Beginning about six months after the initial allocation, Xu long began allocating across its entire client base, ranging from 1% to 5% of the portfolio.

Not all advisors fit this pattern, but that's what we usually see.

This tells us that the Bitcoin ETF configuration shown in the recent 13F file is only a preliminary attempt. For example, Hightower Advisors may allocate $68 million to Bitcoin ETFs today, which is great, but that's only 0.05% of its assets. If they follow the above pattern, this distribution will increase over time. Specifically, allocating 1% of their portfolio to Bitcoin would be equivalent to $1.2 billion, and these are just from one company.

Add to that the number of professional investors involved in the space rise continue to grow, and you can see why I'm so excited.

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