19 August

“Buterin has taken a deep dive into token-based decentralized governance, suggesting that existing voting mechanisms are flawed and may be holding the decentralized finance (DeFi) sector back from realizing its full potential.

Many projects have come under fire for allowing their voting process to be dominated by whales holding vast swathes of the governance tokens.

The crypto community needs to move beyond coin voting as it exists in its present form.

Buterin advocated the exploration of “Proof-of-Humanity”-based governance systems where one vote is allocated per each of a protocol’s users. Buterin also offered “Proof-of-Participation” as a possible solution, where voting is limited to the users of a protocol who have contributed work to the benefit of a project or its community.”

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The Ethereum Strategy ETF would invest in ether futures contracts, Canada’s approved ether ETFs, private ether funds and exchange-traded products with exposure to ether. What it won’t do is buy the digital asset itself, according to a filing.

Earlier this month, D.C.’s self-appointed crypto cop hinted the SEC could look more favorably upon bitcoin ETFs that only trade futures contracts. He did not comment more broadly on crypto ETFs. Ether and bitcoin are the only two crypto assets approved for futures trading in the U.S.

VanEck already has a pure-play ether ETF before the SEC. But that product’s fate remains unclear and is likely tied to that of over a dozen bitcoin ETF bids.”

See Also: Evolve Funds Files for Crypto ETF in Canada

“Facebook said Wednesday that the global payments system is seriously flawed and that the social media giant can fix it.

Marcus, the former PayPal chief hired in 2018 to lead Facebook’s blockchain efforts, said Novi, the digital wallet subsidiary he oversees, is “ready to come to market.” Marcus noted that Facebook has secured licenses and approvals for Novi in nearly every state in the U.S., and said, ‘We will not launch anywhere we have not yet received such clearances.’

See Also: MobileCoin Raises $66M to Build Out Privacy-Focused Payments Tech

Chervinsky stated he was informed that the Treasury Department had initially opposed exempting network validators and software developers from stringent third-party reporting requirements under the bill, as it was concerned the altered legislation would not “adequately capture DeFi.”

We found out very quickly that it wasn’t just a senator’s misunderstanding […] The Treasury Department had played an important role in drafting the language and also [ensuring] that any revision we proposed was going back to the Treasury Department for their approval or rejection.

This is all about DeFi […] This is the Treasury Department trying to work out how to get jurisdiction over DeFi […] and also expand its warrantless surveillance over a peer-to-peer financial system.

Despite the Treasury Department backing down on its position after realizing it could not “steamroll the industry,” Chervinsky emphasized he was concerned unelected Treasury officials have too much influence on the legislative process.”

See Also: The State of Crypto Regulation | Jake Chervinsky (Video)

“The Lightning Network has surpassed 25,000 active nodes for the first time. During the past 30 days, the number of active nodes has risen 8%. Not every node, however, operates a channel. Currently, the number of nodes with channels is 14,419, or about 58% of all nodes. The remaining 42% are simply there, for the time being, at least.

Since we last reported on July 15, the number of channels has increased to 65,739 and expanded their capacity by roughly 78%, from 1,800 to over 2,300 BTC. More channels also translates to more competition in facilitating transactions. The median fee that is being charged is only 0.000006 SAT/SAT spent or $0.000000003018/SAT spent.

In order to open a channel, node operators have to “fund” it with a small amount of BTC. Right now that average funding amount is about 0.035 BTC. Whatever amount is in that channel represents the maximum value of any transaction that can be routed through that channel. In return for providing that channel liquidity, node operators collect a small fee when a transaction routes through one of their channels.”