“Reddit may soon convert users’ karma points into Ethereum-based (ERC-20) tokens and onboard 500 million new crypto users in the process, according to a newly hired Reddit engineer.
Reddit’s partnership with Offchain Labs’ Arbitrum network will allow for the creation of a separate blockchain instance, to be used for storing users’ tokenized community points. Currently, the community points of roughly 80,000 users from two subreddits — r/cryptocurrency and r/FortNiteBR — have been moved to the Rinkeby Testnet on the Arbitrum network, which, according to Rahul, will be scaled for gasless transactions.
Moreover, Reddit communities will also have the ability to fork blockchains through community-based decisions, in addition to allowing the scope to explore new monetization strategies with Web 3.0.
When we all pull this off, we would onboard 500M web2 users into web3 and then there is no going back. Let me say that again – 500 million new crypto users.”
See Also: Introducing EVM Equivalence
“On October 29, Maker voted to add stETH as a form of collateral. This token, stETH (or staked Ethereum), is the receipt token users receive when they deposit their ETH into Lido. The tie up with Maker and Lido means you can now borrow DAI with stETH, then take that DAI and continue participating in various DeFi activities.
The Direct Deposit Module is slightly more complicated. Called “D3M” for short, this module is made possible through a tie-up with lending protocol Aave. Its main objective is to normalize highly volatile interest rates.
In high-interest environments, D3M will begin minting and flooding the market with DAI to increase liquidity. In low-interest environments, D3M will remove liquidity from the market. These mint and burn events are all done using aDAI, Aave’s yield-bearing version of DAI.
The target rate that D3M will aim for is 4%, just like how the Federal Reserve has a long-term inflation target of 2%. This means that though borrowers will forego 1% rates, they also remove the risk of encountering double-digit interest rates on the other side. The same goes for depositors too. (In exchange for giving up double-digit rates, they’ll always be earning at least 4%, beating inflation.)
It’s an interesting little adjustment that will play a huge role in the health of DAI, DeFi, and all the DeFi protocols that use DAI.”
See Also: How Yield Farming on Curve Is Quietly Conquering DeFi (Recommended Read)
See Also: Introducing Aave V3
See Also: ENS DAO
“Phonon is a powerful new scaling and privacy primitive for the entire crypto ecosystem. The protocol uses secure hardware to allow users to transact off-chain, endowing any cryptocurrency with all the properties of a cash transaction: fast, free, and privacy-preserving.
As a peer-to-peer system, it’s linearly scalable with no need to run nodes or any other sort of network. Myself and the team at GridPlus have been working on the specification and initial implementation for two years. It is now working and the next step is put the system into the public domain.”
“There is always the “third coin” in cryptocurrency. This is the rotating coin that occupies the third position in market capitalization behind bitcoin (BTC) and ether (ETH). There are fewer more dangerous positions to occupy than third in cryptocurrency. The only way is down.
In the imaginations of third-coin investors, often newcomers to the space, the third coin solves all the problems of the incumbents. Often these investors are not aware of the historical roots of the third coin and they imagine XRP, binance coin or cardano are novel, revolutionary products, fresh off the boat, like themselves.
Today, ADA, BNB and XRP sit behind tether (USDT) – a stablecoin with massive volume and not a third coin in my sense – waiting their turn for the number three spot. Behind them waits solana (SOL), a third-coin-in-waiting if ever there was one. It is an Ethereum-killer, mildly decentralized or mostly centralized depending on your view, has low fees, fast transactions and squarely targets the investor who just wants to buy non-fungible tokens (NFTs) without paying obscene gas to do so.
Never mind if it goes offline. We’ll just reboot it. Third coin mindset!”
“The U.S. House of Representatives voted to pass a bipartisan infrastructure bill that contains a controversial cryptocurrency tax reporting requirement. The Senate originally passed the bill in August after lawmakers shot down any attempts at amending the crypto provision.
The crypto industry was concerned about a tax reporting requirement within the bill that sought to expand the definition of a broker for IRS purposes. Industry proponents worried that the definition would be too broad, capturing entities like miners and other parties that don’t actually facilitate transactions.
Another provision included in the bill to amend Tax code section 6050I has also stoked fear in the crypto industry. The law, written nearly 40 years ago to apply to in-person cash transactions over $10,000, essentially requires recipients to verify the sender’s personal information and record their Social Security number, the nature of the transaction and other information, and report the transaction to the government within 15 days. Unlike other tax code violations, violations of 6050I are a felony, and some lawyers have pointed out that, applied to cryptocurrencies and other digital assets like non-fungible tokens (NFTs), the law could be nearly impossible to comply with.
The Treasury Department still has to explain how it plans to interpret the bill, and publish guidance spelling out how businesses or other entities will have to comply with it.”
“Both Coin Center and the Chamber of Digital Commerce argued that the recommended regulatory oversight could stifle innovation and unfairly single out stablecoins among payment systems like PayPal that work in similar ways.
I don’t see how they distinguish it, yet there’s no legislation recommended for payments apps.
The report suggests that multiple federal agencies have jurisdiction over #stablecoins, without defining the parameters of this jurisdiction or indicating which agency has superior expertise in the function being regulated.
While the Financial Stability Oversight Committee (FSOC) already has the authority to designate financial activities as systemically important, it has never before exercised this authority successfully.
It would create a slippery slope – credit card networks and other companies could be next.
The crypto industry is trying to walk a fine line between benefiting from the legitimacy provided by government oversight while trying to stay clear of extensive and intrusive regulation that deters innovation.
[Noteably], a delegate for DeFi platform MakerDAO said that the report only applies to fiat-redeemable stablecoins, referring to footnote 5 of the document which states:
Stablecoins that are purportedly convertible for an underlying fiat currency are distinct from a smaller subset of stablecoin arrangements that use other means to attempt to stabilize the price of the instrument (sometimes referred to as “synthetic” or “algorithmic” stablecoins) or are convertible for other assets. Because of their more widespread adoption, this discussion focuses on stablecoins that are convertible for fiat currency.
The stablecoin DAI, generated by Maker, is convertible for other assets like bitcoin or ethereum and not fiat currency, and therefore does not fit the report’s parameters.
So it was a big win for DeFi.”
“In the next seven days, the Bitcoin protocol will undergo a soft fork in the name of the Taproot upgrade. Taproot is Bitcoin’s first major upgrade since August 2017, which saw the introduction of Segregated Witness (SegWit) and resulted in the launch of Lightning Network. At the time of writing, Taproot.Watch shows that the Taproot upgrade will be activated on Nov. 14th.
The Taproot soft fork will see the introduction of Merkelized Abstract Syntax Tree (MAST), which introduces a condition that allows the sender and receiver to sign off on a settlement transaction together. In addition, Taproot will also implement Schnorr Signature, an algorithm that will allow users to aggregate multiple signatures into one for a single transaction, reducing the inherent visible difference between regular and multisig transactions.”
“Elon Musk says he will sell 10% of Tesla stock (TSLA) — if Twitter tells him to.
I will abide by the results of this poll, whichever way it goes.
At the time of writing Sunday, 57% of the survey’s 3.2 million respondents had said that he should go ahead with the sale — 19.3 million TSLA shares at $1,222 each, as per Friday’s closing price — a total of $23,582,600,000.”