“Whether it was in the compact hilly cobblestones that lined the city streets or the rooftops overlooking the Pombaline skyline, there was a certain electricity in the air. Leaders from all over the Ethereum community and beyond came together to bring attention to developments happening with DAOs, DeFi and NFTs, and most importantly, communicate the narratives and memes shaping the direction of the space as a whole.
During his speech, Steven Waterhouse of Orchid Labs gave a stark reminder to everyone in the room of what the foundation of Web3 is laid upon — the cyberpunk ethos of enfranchising people through transformational technology that overcomes systems of oppression.
That spirit was the driving force that filled the hearts and minds of the online communities who populated the Web1 era of the 1990s. As Web2 emerged in the 2000s, a new social contract was signed between users and the platforms in which users exchanged their data in order to use these platforms without charge.
A new system of extraction materialized in Web2 where platforms would capture immense amounts of intrusive information about individuals, leading to an Orwellian digital surveillance state hidden in plain site that is constantly pillaging data from its users without abandon.
Yet over the past decade, the internet of information that defined the last two epochs made way for the internet of value that is at the core of Web3, which ultimately reimagines the humanity stack that is rooted in the dreams of Web1 but is crafted through novel incentive models and coordination games.
[…] After NFTs and play-to-earn games, the second step in the metaverse funnel is becoming an active participant in a DAO. DAOs are still in a nascent stage, but many in the industry bet that they will become the primary employment vehicle of those active in the Web3 world.
As the individuals become more and more adjusted to the world of Web3, it is only natural that they join associations that align with their interest in the same way they would outside of it. DAOs themselves are reminiscent of a phenomenon that 1800s French civil servant and aristocrat Alexis de Tocqueville noticed while touring America — that individuals of the new nation would form voluntary associations of all kinds. And they believed that associations strengthen democracy and extend it beyond the scope of public offices by bringing it down to people who share a common interest with each other.
[…] Two narrative frameworks that were apparent at LISCON were two forks of the cyberpunk philosophy, solarpunk and lunarpunk. Both ideological frameworks are in complete agreement that DeFi and DAOs are ideal bottom-up organized systems that empower individuals from the ground up and both would like to see a world where data is owned by individuals rather than extracted by ominous organizations. In addition, both concur that the ultimate goal of Web3 is to build parallel systems that individuals can enter and be viable alternatives to current power structures.
While there is a difference of opinion in how to execute said goals, the diversity of opinion allows for wider experimentation in different areas of the humanity stack.
Representing the mindset of the lunarpunks is Amir Taaki and his team at DarkFi, an anonymous DeFi network that utilizes zero-knowledge proofs that create a network of private money legos. With intellectual groundwork rooted in agorism, lunarpunks hold anonymity not only in the highest regard, but absolutely necessary in order to protect individuals and DAOs from overbearing and hostile actors.”
Highly Recommended Read.
“Ethereum development is reaching a new level of maturity. The gap between where Ethereum currently stands and its defined roadmap is rapidly shrinking.
Now that we’re at this phase, it’s become clear that Ethereum is developing a modular design architecture. The properties that make a blockchain ‘a blockchain’ are being differentiated and compartmentalized in order to allow each to become individually maximized.
In this article, we’ll explore how Proof of Stake, sharding, and rollups enabled a modular blockchain design that actualizes the long-term vision of Ethereum and set the standard for blockchains going forward.
The infamous Blockchain Trilemma dictates that you can only optimize for two of the three properties of a blockchain. One must be sacrificed due to technical limitations. So why is this the case? Why can’t blockchains achieve sufficient decentralization, security, and scalability in one go? Because blockchains are monolithic. They try to achieve all three goals on the mainchain. When you modularize these components, however, the limitations of the blockchain trilemma disappear.
Every bull market, there comes a new cohort of chains that elect to sacrifice decentralization in order to optimize for the execution property of a blockchain. They increase the blocksize and constrain the nodes so that the exuberance of the bull market can find a home with cheap fees.
In bull markets, Ethereum and Bitcoin become extremely congested, because they have optimized for decentralization, which gives legitimacy to the chains that optimized for the opposing property: transaction execution. As discussed above, monolithic blockchains that optimize for execution have committed to a few shortcomings. They cannot meaningfully collect fees and have sacrificed decentralization.
Modular blockchains take the three components that monolithic blockchains currently house on the L1 and compartmentalize them.
Sharding increases available L1 block space as a function of the size of Ethereum’s security. As Ethereum’s pool of validators grows larger, the number of viable shards also goes up, making Ethereum more scalable as it grows in decentralization.
Rollups create unconstrained execution environments that bundle-up transactions and compress them into the tiniest possible packet of data. This unlocks new types of economic activity and allows a vibrant and cheap economy to flourish, increasing the net economic activity that settles on the L1. As more economic activity develops on the rollups, rollup fees drop as they are amortized across a wider set of participants. As more shards are added to Ethereum, and as shards become larger, rollup fees continue to lower as a function of Moore’s Law.
Unlocking microtransaction viability increases the total amount of viable economic activity that can be supported, allowing net economic activity orders of magnitude more headroom to operate, which is all funneled down to the L1 Ethereum via a series of compressions and commitments across various layers, and all collapses to the competitive fee market on the L1, burning ETH as a function of total economic activity. The beauty of the modular design is that the optimizations to each module amplifies the optimizations to the others.
Over time, we will see all L1 blockchains either morph into a modular design structure (constrain L1 blockspace, push execution to rollups, increase node count), and compete in the world of global non-sovereign money, or they will instead do away with the baggage of consensus and data, and instead simply port their execution environment over to a more decentralized chain.
The modular blockchain design also illustrates the necessity of enshrining decentralization as the key property of blockchains that enable all the rest of the features. Ethereum has solved the scalability trilemma by increasing decentralization, not sacrificing it. Only by optimizing for decentralization are you able to receive the benefits of modularization illustrated above.”
See Also: Ethereum 2025 (Recommended Read)
“In a note from the bank’s Global Markets managing director Bernhard Rzymelka, the bank shows that crypto assets have traded in line with inflation breakevens since 2019. Specifically, he charts the Bloomberg Galaxy Crypto Index (red) on a log axis, versus the USD 2y forward 2y inflation swap (blue). While correlation may no be causation, the chart below is clear enough to indicate that inflation certainly is a driving force behind the relentless crypto meltup to all time highs.
As the Goldman strategist writes, the local backdrop looks supportive for Ethereum as ‘it has tracked inflation markets particularly closely, likely reflecting the pro-cyclical nature as “network based” asset.’ The bank hints that ethereum could surge as high as $8000 in the next two months if the historical correlation with inflation fwds persists.
In other words, as we have been saying since 2014, cryptos have emerged as the asset class that will benefit the most if we have another major inflationary/stagflationary scare.”
“Annual percentage yields, or APY, on crypto borrowing and lending platform Aave have surged to record levels after capital withdrawals sent the decentralized finance, or DeFi, protocol into a liquidity crunch. At the time of writing, variable APY on borrowing stablecoin Dai via Aave has surged to 24.88%, compared to approximately 6.50% the day prior.
According to cryptocurrency researcher Igor Igamberdiev, blockchain personality Justin Sun was responsible for at least billions of dollars in withdrawals in the past few hours. Earlier in the week, members of the Aave community voiced concerns regarding vulnerabilities with using xSUSHI tokens as collateral for borrowing on the platform.”
“There is now tertiary derivatives in crypto via spot access, CME futures, futures-based ETFs and options on ProShares Bitcoin Strategy ETF (BITO). This will create a lot of arbitrage opportunities in the market as already exists with the CME spread. This spread will compress in time as more desks allocate capital to Bitcoin strategies. And in effect, volatility is sure to compress moving forward since any swings will see more capital executed as part of various strategies.
According to Lilly, the main takeaway from the launch of BTC ETFs, is that ‘more capital will be flowing into various forms of Bitcoin exposure.‘ He also noted that ‘this process takes time and spreads can persist until this new equilibrium is found.'”
“Decrypt and founding contributors including The Defiant, ACJR, and prominent DAOs have launched a media DAO for crypto coverage. Think of PubDAO as akin to a decentralized Associated Press. PubDAO story ideas get brainstormed openly in the PubDAO Discord channel.
The decentralized wire service is merely the first part of a broader plan for PubDAO that will ultimately produce guilds made up of writers, editors, photographers, illustrators, advertisers, and marketers. If all goes according to plan, those guilds—and an evolving set of protocols—will reduce the cost and friction in publishing.
Eventually, PubDAO members can contribute to the story pipeline by staking and earning governance tokens.”
“There is a balance between national security, which requires investing authorities with the ability to detect potential threats and punish wrongdoers, and protecting individual freedoms. We’ve gotten this dance all wrong. The legacy of the Patriot Act is widespread wiretaps, unchecked warrants and a nosy state interested in reading your financial, medical and travel records. The majority of American people are not “domestic terrorists,” yet we’re all (potentially) treated as such.
The courts will be key to restraining “the surveillance state.” But the world is also a much different place than two decades ago. Even while citizens and media personalities push back against government snooping – everyday Americans (largely) accept some form of corporate surveillance.
Government surveillance is now intertwined with Big Tech. Amazon, Palantir and Chainalysis are just a few examples of private companies that sign big-ticket contracts with government agencies to fork over individual’s information.”
“The infrastructure giant wants to hire a Financial Services Specialist to work with global financial institutions and innovative fintechs, and ‘transform the way they transact digital assets (ex. cryptocurrencies, CBDCs [central bank digital currencies], stable coins, security-backed tokens, asset-backed tokens and NFTs [non-fungible tokens]) from price discovery to execution, settlement and custody.’
Amazon’s much-anticipated move into digital assets is expected to include some kind of payment token, a so-called “Amazon coin,” based on previous job postings.”
“Ubisoft, one of the world’s largest video game companies — responsible for creating popular franchise games such as Assassin’s Creed, Far Cry and For Honor — hosted its Q2 earnings call this week, where blockchain was a key topic of discussion. CEO, Yves Guillemot, expressed intentions for investment in and adoption of blockchain-centric gaming companies.
Blockchain will enable more play-to-earn that will enable more players to actually earn content, own content, and we think it’s going to grow the industry quite a lot. We’ve been working with lots of small companies going on blockchain and we’re starting to have a good know-how on how it can impact the industry, and we want to be one of the key players here.”