The Disrupt Weekend

“One of the hallmarks of the crypto industry since its inception has been its commitment to open source development as well as its transparency-centric ethos. In this regard, the Crypto Open Patent Alliance (COPA), a group that promotes the advancement of cryptocurrency-enabled technologies by removing patents as a barrier to growth and innovation, recently welcomed social media giant Meta as a member, with the latter vowing to make all of its crypto patents accessible to the world.

The goal of the association is to accrue patents from its members to create a collective patent library that will help stimulate innovation within the global blockchain sector by reducing instances of patent litigation.

Meta published a statement announcing that by joining COPA, it will become one of the 30 firms committed to not enforcing their “core cryptocurrency patents.” Core cryptocurrency patents refer to those technologies that allow for the ‘creation, mining, storage, transmission, settlement, integrity or security of cryptocurrencies.

With Diem no longer Meta’s primary focus, the company is ready to explore other areas.

The fact that the company is solidifying pathways to patenting crypto and blockchain technological innovations means it likely plans on making some such advancements of its own. That’s an auspicious outlook for the space, one that tells us Meta is getting into the very building blocks of our future on-chain life.”

“Ethereum gas fees have been untenable for years. And for yield farmers, these gas fees have been seriously eating into profits. You can’t be paying hundreds of dollars in fees when you’re farming with a few thousand, or less. The economics just don’t add up.

To that end, the Ethereum community dialed in on a rollup-centric roadmap and it’s finally coming to fruition. Arbitrum, Optimism, and others have all launched on mainnet, opening up the gates for developers to build and degens to ape.

As such, we’ve seen an explosion of applications extend onto L2s while some have bypassed mainnet altogether. Look closely and you’ll see parallels to DeFi Summer 2020. DeFi apps are coming in droves and offering juicy yield opportunities.

Here’s why these yield opportunities are 🔥:

  1. More gains on L2s. Gone are the days of triple digit APYs on Compound. But on L2s, where activity is still climbing, APYs have not been diluted and still offer double digit returns in many cases.
  2. L2s are cheap. What’s the point of aping $100 into a 69% APY pool on mainnet is the gas costs to deposit and withdraw eat your profits away?
  3. Tokens are coming. Using L2s increases your chances of receiving future L2 token drops!!!

Not only are these yields high, but the gas fees are nothing. Users are paying a couple of bucks to transact instantly on L2, allowing them to reap the full yield rewards without eating into the margins.

Here are the best yield opportunities on L2.”

See Also: Layer 2 Tokens Are Coming

“In the United States, for example, the tax regulations provide that a joint venture or other contractual arrangement may create a separate entity if the participants ‘carry on a trade, business, financial operation, or venture and divide the profits therefrom.’ (By contrast, mere co-ownership of property that is maintained, kept in repair, and rented or leased does not constitute a separate entity for tax purposes.)

Thus, to the extent that a DAO is created by investors who intend to vote and opt for investment proposals, contribute funds for investment, and share the profits, the DAO may be a separate tax entity. Some DAOs formed for purposes other than carrying on a trade or business and making profit, such as a DAO created for raising funds to purchase a copy of the U.S. Constitution, are likely not considered tax entities.

Because DAOs typically exist solely on the blockchain and do not register with any state secretary, DAOs, perhaps surprisingly, could potentially be classified as a foreign partnership for tax purposes — even in situations where all DAO owners are U.S. tax residents. Partners must annually report their share of the partnership’s income and losses. A DAO could potentially be classified as a foreign publicly traded partnership (PTP) if the DAO’s tokens are traded on “a secondary market.”

Aside from tax, investors have had growing concerns about the legal liability resulting from their investments in DAOs (i.e., their personal assets could be put at risk for any lawsuits or debts of the DAO). As a result, two states Vermont and Wyoming, have allowed DAOs to register in their states as DAO LLCs which, like regular LLCs, provide the benefit of limited liability for the DAO members.

From a tax perspective, a DAO LLC, because it is registered under state law, may be treated as a domestic partnership for tax purposes.”

See Also: Ultimate Crypto Tax Guide

“After years of development, a blockchain-based trading card game is hoping to attract crossover appeal with a gaming community that so far has proven to be suspicious of non-fungible tokens (NFT). On Tuesday, Skyweaver announced the launch of its Open Beta after months of private access-only gameplay. The game has been in development since 2019, when Reddit co-founder Alex Ohanian led a $3.5 million funding round.

By the numbers the Skyweaver is already one of the most popular blockchain-based games on the market. The game’s phone app boasts 233,000 installs, a waitlist of 345,000 users and $1.7 million in sales on the project’s decentralized marketplace.

It remains to be seen, however, if the game can achieve true crossover appeal with users who are unfamiliar with blockchain technology.

The overwhelming response has been that these players adore Skyweaver for its gameplay alone – the strategy, the depth, the graphics, the new mechanics, all of that. They also love the player-owned economy, and I’ve seen how it can help them realize the potential of NFT economies.”

The plot is based on two main characters — Ilya Lichtenstein and Heather Morgan — the NYC couple linked to the 120,000 BTC heist and their involvement in laundering the stolen funds.

Netflix has ordered a documentary series about a married couple’s alleged scheme to launder billions of dollars worth of stolen cryptocurrency in the biggest criminal financial crime case in history.

Netflix notes that ‘as the value of the stolen Bitcoin soared from $71 million at the time of the hack to nearly $5 billion, the couple allegedly tried to liquidate their digital money by creating fake identities and online accounts, and buying physical gold, NFTs, and more – all while investigators raced to track the money’s movement on the blockchain.'”

“Crypto lender BlockFi will pay the U.S. Securities and Exchange Commission (SEC) $50 million and stop opening new accounts of its high yield lending product to most Americans as part of a settlement of an ongoing investigation into whether the product is a securities offering.

The settlement as described by Bloomberg does not appear to affect existing accounts.

We have been in productive ongoing dialogue with regulators at the federal and state level. We can confirm BlockFi Interest Account clients will continue to earn crypto interest as they always have.”

How To Buy and Sell NFTs