ROLLUP: Jito Airdrop | Cosmos Blocksize Wars | Kyber Hack | Paradigm's Blast

Bankless Weekly Rollup Last Week of Nov. 2023 ----- 🌐 Near's Cost Effective Data Availability https://bankless.cc/near ------ BANKLESS SPONSOR TOOLS: 🐙KRAKEN | MOST-TRUSTED CRYPTO EXCHANGE ⁠https://k.xyz/bankless-pod-q2 ⁠ 🦊METAMASK PORTFOLIO | MANAGE YOUR WEB3 EVERYTHING ⁠https://bankless.cc/MetaMask ⚖️ARBITRUM | SCALING ETHEREUM ⁠https://bankless.cc/Arbitrum ⁠ 👾GMX | V2 IS NOW LIVE https://bankless.cc/GMX 🔗CELO | CEL2 COMING SOON https://bankless.cc/Celo 🦄UNISWAP | ON-CHAIN MARKETPLACE ⁠https://bankless.cc/uniswap ------ TIMESTAMPS & RESOURCES 0:00 Intro 3:50 Markets https://twitter.com/camillionaire_m/status/1729850195012456518 https://x.com/saylor/status/1730222828270612851 https://x.com/WClementeIII/status/1730250345291375043 https://twitter.com/jseyff/status/1728087271084028346 https://twitter.com/datarade/status/1729416261149340002 18:32 Jito Launching Governance Token JTO https://twitter.com/jito_sol/status/1729172532971065626 https://www.bankless.com/airdrop-hunter 21:00 Cosmos enters its “Blocksize Wars” era https://twitter.com/DefiIgnas/status/1729155760850981130 https://twitter.com/DefiIgnas/status/1729155760850981130/photo/3 https://twitter.com/lurkaroundfind/status/1728805585313767528 29:29 What does Paradigm think about Blast? https://dune.com/alec/blast-the-new-eth-l2 https://x.com/danrobinson/status/1728817674543862023 39:03 Ethereum blockchain Shenanigans https://twitter.com/nero_eth/status/1728680630773575956 https://arxiv.org/pdf/2305.09032.pdf 45:11 KyberSwap Dex aggregator hacked for $54.7M https://twitter.com/KyberNetwork/status/1728115858889929021 https://x.com/TheDEFIac/status/1730196414154608785?s=20 48:40 Move-based L2 arrives on the scene https://twitter.com/movementlabsxyz/status/1727385496953958571?s=20 Sei Network gets an upgrade https://twitter.com/jayendra_jog/status/1729865516175798536 50:47 NFTs https://twitter.com/coolcats/status/1729281454792929561 51:35 Regulation https://www.theblock.co/post/264702/the-sec-is-having-trouble-serving-hex-founder-richard-heart-with-its-lawsuit https://blockworks.co/news/binance-changpeng-zhao-us 53:39 Meme of The Week https://twitter.com/yugacohler/status/1728892556304625708 54:44 Closing & Disclosures ----- Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosuresBankless

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Ryan Sean Adams?

  The Solana community is getting an airdrop and it looks to be absolutely massive. GTO is launching a governance token. It's called GTO. David, can you give us a recap of what GTO even is for folks that are unfamiliar?

• 0:15Ryan Sean Adams?

  Bankless Station, it's time for your Friday weekly rollup. David, what are we talking about this week?

• 0:19David Hoffman?

  All of the news across all of the chains, Ryan. It's non-Ethereum airdrop week this week. Solana is getting a token, perhaps one of its biggest. Cosmos, Adam, getting a new token as well. What else is going on?

• 0:31Ryan Sean Adams?

  We got Kyber. They got hacked. This is one of DeFi's oldest protocols. So it's not good news, David, but you know the craziest thing? I don't know. Did you read the message from the Kyber hacker?

• 0:40David Hoffman?

  It is pretty unhinged.

• 0:42Ryan Sean Adams?

  It is completely unhinged. So we gotta talk about that. What else?

• 0:45David Hoffman?

  Some chains are getting some upgrades. Lots of more TPS coming into the fold. Say, a Layer 1 is getting an upgrade. A move Layer 2 is coming to Ethereum, a new flavor of Layer 2 on Ethereum. And also, a large Ethereum validator is starting to play shenanigans with the blockchain.

• 1:03Ryan Sean Adams?

  Uh oh.

• 1:04David Hoffman?

  I'll tell you this story. I think it's pretty cool.

• 1:06Ryan Sean Adams?

  And speaking of shenanigans, we gotta give them an update on CZ. What's he doing this week? Is he still in the US? Is he somewhere else? And while we're talking about locations, where in the world is Richard Hart? That's what the SEC really wants to know right now. And if you're listening to this, wherever you're listening, make sure you give us a review, a like if you rate it. Subscribe if you're checking this out on YouTube. David, you know Spotify wrapped.

• 1:31David Hoffman?

  It's Spotify wrapped season. One of the best seasons to be a podcaster, I would say, is when you get all the appreciation.

• 1:36Ryan Sean Adams?

  Well, I saw somebody, I think the biggest Spotify wrapped Bankless listener moment, like minutes, was something like 14,000 minutes.

• 1:44David Hoffman?

  14,000 minutes. Yeah. So if you are listening to this on Spotify and you have more than 14,000 minutes on listening to Bankless, tweet at us. We will send you some swag. We'll send you something.

• 1:54Ryan Sean Adams?

  David, I did the numbers on that. 14,000 divided by 60 is something like 233. 233 hours.

• 2:01David Hoffman?

  233 hours.

• 2:03Ryan Sean Adams?

  Is that crazy or what? Have we done that many podcasts?

• 2:05David Hoffman?

  10 days. I think that's how math works.

• 2:07Ryan Sean Adams?

  10 days straight.

• 2:08David Hoffman?

  10 days of our voice. Wow. I'm sorry.

• 2:14Ryan Sean Adams?

  But also, also, thank you. I mean, humbled and honored to have so many people listen to this podcast.

• 2:20David Hoffman?

  We do it for you.

• 2:21Ryan Sean Adams?

  Do it for you. We do it for you guys. We do it for you guys. Okay, David, speaking of things that we do for people, our friends and sponsors.

• 2:30Ryan Sean Adams?

  Over at Near. This is super cool, actually.

• 2:32David Hoffman?

  We had a Twitter space with Ilya from Near where we got to ask a little bit more about this data availability layer.

• 2:38Ryan Sean Adams?

  Yeah, tell them about it.

• 2:39David Hoffman?

  You want to share a screen? So the way we've been expressing this is like, oh, Near data availability. Near is layer one. It is also supplying data availability to Ethereum layer twos, which is exactly what's happening. There's just like a bunch of second order, very positive second order effects that come with this, and that is cross-chain composability for Ethereum layer twos. They've also been working with Eigenlayer for fast finality. And Ryan, you know, I've been talking to you about this. I'm like on a quest to understand how Ethereum rollups become recomposed. Like eventually, we need Ethereum to just become invisible. And that means whether your assets are on like Optimism or Arbitrum or like future chains, all of that needs to be abstracted away. How does that happen? What is the mechanism for doing that? One of the silver bullets for getting that done is like low latency

• 3:23David Hoffman?

  finality, which is how chains can talk to each other. This, Near DA, along with their partnership with Eigenlayer, is helping achieve some of that. And so this is one of the reasons why like I'm really excited about what Near's been up to. They announced this about like two weeks ago. Anyways, there is a link in the show notes. That is banklist.cc/near if you want to learn more about Near's data availability solution and how they are bringing cross-chain composability to Ethereum.

• 3:46Ryan Sean Adams?

  And thanks to Near for getting this message out to the Bankless Nation. David, let's talk about prices. You ready for this?

• 3:53David Hoffman?

  Yeah, so like the prices have just up, up, up, up, up all like month. We, when you measure it for the last seven days, it's actually just flat, but that's like, you know, measurement error. Bitcoin's up 1% on the week, 37,300 where it started, 37,700 where we're ending. Ether price also relatively fat.

• 4:10David Hoffman?

  Fat, flat, 2030 to start.

• 4:12Ryan Sean Adams?

  Fat works.

• 4:13David Hoffman?

  Yeah, 2030 to end, pretty flat in the week. And then the ETH BTC ratio also pretty flat on the week. And also no major big movers of the week. I mean, like, Iota had a big pump, but honestly, who cares?

• 4:26Ryan Sean Adams?

  What do you think of December? Do you think December is going to be good to us? You think, I remember some Decembers in crypto have been very bleak and it's felt like coal in my stockings. December 2019 may have been this. However, December 2020 was not bleak.

• 4:42David Hoffman?

  Huge.

• 4:42Ryan Sean Adams?

  It was very happy.

• 4:44David Hoffman?

  That was the month in which we had like six months of why do you need ETH? You just buy Bitcoin and DeFi tokens after like DeFi summer. And that was the month. I remember we were talking about this actually. And we were talking about this take on the weekly roll up. And you're like, what do you think about that take? And I'm like, well, it really just takes one strong week of price movement in Ether.

• 5:04Ryan Sean Adams?

  Wait, you're saying we were talking about this in 2020? Do you remember an episode from 2020?

• 5:08David Hoffman?

  Yeah, exactly. Yeah, because I.

• 5:09Ryan Sean Adams?

  My God, that feels like decades ago.

• 5:11David Hoffman?

  Yeah, right. So like, we were talking about that thesis. And like, what do you think about the thesis about like the barbell of no, no Ether, just Bitcoin and DeFi tokens? And I was like, yeah, sure. That's like the narrative that's in vogue in the moment because that's what the price action has been. But all that really is that could just be very quickly invalidated by a massive ETH run. And then literally the next week, Ether broke out of its like three year bear market range and broke through to $425, which hadn't broke through in forever. And then it ran to like $700 and the narrative just completely flipped.

• 5:44Ryan Sean Adams?

  Wait, was that 2020 or did that happen in 2019?

• 5:48David Hoffman?

  No, that's 2020. That's 2020. That was December of 2020 because by the January of 2021, Ether had broken like by is like $1,100 in the first week. I remember this very, very well. It was like $1,100 in the first week and we were on our way to $2,000. And like the whole barbell idea looked super cringe in hindsight. And it was when, and it was when ultrasound money really became a huge thing.

• 6:08Ryan Sean Adams?

  Yeah, yeah. Good times, David.

• 6:11David Hoffman?

  Good times.

• 6:12Ryan Sean Adams?

  We'll see if Santa Claus is coming to town this month. I'm hoping for good things. I think we've got a fantastic setup. We'll finish this out. Tell us, what's the cryptocurrency market cap?

• 6:22David Hoffman?

  1.48 trillion. We are narrowing in on a one and a half trillion dollars in market cap, but we're not there yet.

• 6:28Ryan Sean Adams?

  Do you want to give us some perspective on all of this? So when you say stuff like 1.5 trillion dollars, right? That sounds like a very large number, but here's a tweet giving some context on the size of the entire crypto industry relative to another asset that probably many of us know. What's this tweet?

• 6:48David Hoffman?

  Yeah, so this is a tweet from a chameleon there, works at Serotonin, a dear friend of mine. She tweets out, "Daily reminder that the entire crypto industry is still a small boy by market cap. At our peak in autumn of 2021, at the peak of the bull market of last cycle, we were equivalent. The whole industry was equivalent to the market cap of Apple. Not a small company, but it's insane to think that like a industry about crypto networks that's disrupting money and finance itself is equivalent to an equity. We're still small. It's still..."

• 7:20Ryan Sean Adams?

  You remember when you asked me what my prediction was for the cycle for the market cap? I'm still gonna stick with it. Do you remember what I said? 12 trillion on the low side, 12 to 15 trillion was my number.

• 7:32David Hoffman?

  Yeah, okay, so we got a 10x in market cap ahead of us.

• 7:34Ryan Sean Adams?

  What's your number?

• 7:35David Hoffman?

  Ooh, gosh.

• 7:39David Hoffman?

  I'm going with 10.

• 7:42Ryan Sean Adams?

  10? You're gas, I'm brakes, but gas is under my prediction?

• 7:48David Hoffman?

  If you do the whole log curve, like, cycles are always smaller. Cycles are always smaller. Yeah, and we have higher interest rates now.

• 7:54Ryan Sean Adams?

  All right, you might be right. Are you counting, though, are you counting like stablecoins, real world assets?

• 7:59David Hoffman?

  Yeah, I'm counting the number that is reported by CoinGecko in that banner that it reports it in.

• 8:05Ryan Sean Adams?

  Fair enough. We will see. Either way, pretty bullish. And speaking of bulls, can you get any more bullish on a particular asset than Michael freaking Saylor, who just put in another acquisition of a cool 16,000 Bitcoin. If you're curious, I could do the math for you. That's about $600 million.

• 8:26David Hoffman?

  Shut up. You're not doing math. You're just reading this tweet. Get out of here.

• 8:29Ryan Sean Adams?

  Well, I'm doing the math for them. I would say I was doing the math myself. At an average price of 36,000 per Bitcoin. So there he is. He's just continuing with that dollar cost averaging in strategy. But these numbers are huge, David.

• 8:44David Hoffman?

  Huge numbers. Huge numbers. Where does he get the number from? Like, A, first off, congrats on Michael Saylor for first having the first, one of the first major purchase of Bitcoin, where the reported average price of Bitcoin is significantly under the actual current price. Usually it was the inverse. Where does he get all this money from? Is a math, like, where does he just start pulling $600 million out of his pockets? Well, okay, so the answer is leverage. It's leverage. And so when Bitcoin goes up in price, MicroStrategy stock, MSTR, is basically a Bitcoin ETF in a roundabout way because like the value, like it's a stock, it's a software company. It sells software, but really it's just about exposure to Bitcoin.

• 9:25David Hoffman?

  So when Bitcoin pumps and pumps up to $38,000, all of a sudden, MicroStrategy trades at a much larger premium, goes up in price, and all of a sudden, he can borrow against it to buy more Bitcoin. So he's just taking, like, he's just winding himself up.

• 9:38Ryan Sean Adams?

  Why don't we do that? We got a little media company. We'll go public. We'll have Bankless as a publicly traded asset. We'll just buy a dollar cost average every single week into Ether.

• 9:47David Hoffman?

  And just announce it. Yeah, like, we'll start small, but we'll just wind our way up and wind up big.

• 9:53Ryan Sean Adams?

  We'll just take some debt.

• 9:54David Hoffman?

  It's just free money, right? It's, we're just printing money, right? And there's no risk there.

• 9:57Ryan Sean Adams?

  It's a fantastic business model, I think. So long as Bitcoin continues to go up, but you know, we've already given our takes on that. We think it will. But did you see this tweet? Actually, I know you did because you sent this to me. Iceberggy, giving a take on what Saylor's doing. Because I don't know if you've read, if you've looked at Saylor's Twitter feed recently, but stuff like this.

• 10:16David Hoffman?

  Yeah, he just types in. He goes into Midjourney and goes like, imagine, which is how you prompt Midjourney. It's like, slash imagine Bitcoin to the moon. And then he just like posts it and gets like.

• 10:28Ryan Sean Adams?

  Bitcoin to the mountaintops.

• 10:29David Hoffman?

  Gets like 10,000 likes on Twitter, just like these stupid AI generation things.

• 10:34Ryan Sean Adams?

  Look at this. Show me a picture of America Eagle.

• 10:38David Hoffman?

  An American Eagle with a Bitcoin on it.

• 10:40Ryan Sean Adams?

  Yeah, and that's what you get. And he just pumps them. And these tweets do so well, David. Look at this.

• 10:45David Hoffman?

  So well.

• 10:46Ryan Sean Adams?

  Uh, almost 10,000 likes for this, like, just robot mid-journey thing. Like, I'm gonna be honest, low effort mid-journey artwork.

• 10:55David Hoffman?

  It doesn't matter. Lower effort, the better.

• 10:57Ryan Sean Adams?

  What's the take here from Iceberg?

• 10:58David Hoffman?

  Iceberggy just tweets out, "Taylor starts T-Wapping half a yard on Coinbase. Does a line, then immediately goes to mid-journey and types, 'Imagine Bitcoin to the Moon. Four hours. Four hours.'"

• 11:11Ryan Sean Adams?

  I don't know if that's what he's doing, but I do picture that in my head.

• 11:14David Hoffman?

  I mean, bro, do you remember, you remember the super unhinged, like, clip we played like two weeks ago? I was like, "How many chairs are you sitting on right now?" It's like, when people's like, "Why don't you diversify out of Bitcoin?" And he goes like, "Well, how many chairs are you sitting on?"

• 11:28Ryan Sean Adams?

  Are you sitting on one chair?

• 11:29David Hoffman?

  Are you sitting on one chair? Like, there's only one asset.

• 11:31Ryan Sean Adams?

  Are you sitting on 10? I love it. Um, all right, GBTC, give me, uh, give me an update on this. Record lows, a discount? What are you talking about here?

• 11:40David Hoffman?

  Yeah, record lows for discounts. So in June, the discount was like negative 40 of this year, uh, for Bitcoin, the Bitcoin spot discount for GBTC. Now at just 8.6%.

• 11:50Ryan Sean Adams?

  That's closing. And what did we, what was our prediction? Uh, that that will continue to close, and once it does, what, it will spill over into the spot price?

• 11:58David Hoffman?

  Yeah, and well, it'll, as it approaches closing, people are just more likely to buy spot in the first place because the incentive is lessened. Um, but yeah, so as we are approaching zero, just all of that demand is going into spot, which is bullish.

• 12:12Ryan Sean Adams?

  You know, what's after December, David, is, um, January.

• 12:15David Hoffman?

  That's how that works.

• 12:16Ryan Sean Adams?

  And in January, I was promised a Bitcoin spot ETF by Mr. James Safer.

• 12:22David Hoffman?

  Well, that's what I'm, that's what I'm going to go do when I go climb my mountains in the first week of January.

• 12:28Ryan Sean Adams?

  So, okay, you're climbing mountains in January, the first two weeks of January?

• 12:31David Hoffman?

  First week of January.

• 12:33Ryan Sean Adams?

  Okay, so it's very likely, Bankless Nation, that Gary Gensler is going to take a massive L and have to give us Bitcoin spot ETF while David's in the mountains.

• 12:42David Hoffman?

  Yeah, there's, I gotta go to the mountains because that's where he has the horcrux, the Bitcoin ETF horcrux. I have to go smash.

• 12:51Ryan Sean Adams?

  This is a down bad story, David, and these numbers are pretty stark. This is from Kumar, OpenSea revenue, January 2022, speaking of January, that was not too long ago. Their revenue was 387 million. That's monthly revenue for OpenSea, top of the NFT cycle, January 2022. You know what it is today? I know you do because you're looking at it. But Bankless listener, imagine you go from 387 million to now, last month, 1.9 million. Wow, that's a big drop, David.

• 13:26David Hoffman?

  Well, hey, like 1.9 million dollars a month is a lot of money. I don't want to believe all that. That's still a lot of money.

• 13:33Ryan Sean Adams?

  That's a lot of money.

• 13:33David Hoffman?

  It's just like, it just came down so hard. Okay, so like, why, why did this happen? Well, A, the NFT market just dried up, obviously. Easy come, easy go. The NFT is totally not dead. They'll be around forever, of course. It's just like, that was the first mania. And so like, that, that was them selling picks and shovels of a tulip mania, right? And so that's, they were making all their revenue then. And so, you know, actual demand for NFTs have dropped off. But then also, OpenSea has been disrupted by Blur. And so their market share back then was like 90 plus percent. And now it's only like 35%. So the, the revenue from the industry has disappeared and they're also taking only a third of it. So between those two things.

• 14:13Ryan Sean Adams?

  It's just, it's, they're doing fine at 2 million a month. That's fantastic. Like, that would be a fantastic business. What's difficult about crypto is this whipsaw. And Bankless listener, you know, because you hold these whipsawing assets and the volatility of them. But if you, if you're an entrepreneur, if you're a project trying to start this, you see 400 million in revenue. And you're like, hey, even if that goes down 80%, like, we can hire another 100 people, 200 people. Like, there's market demand for this. We're, it's growing. And then you get this, the other side, when all of this crashes.

• 14:43David Hoffman?

  Yeah, and it doesn't go down 80%. It goes down 98%.

• 14:46Ryan Sean Adams?

  Oh, it's difficult to ride out these markets. So, you know, that, that's, that's why the key thing to do in crypto, whether you're running a project or whether you're an entrepreneur, whether you're a startup. Whether you're a lowly holder is just to hang on for the ride. You know, don't get liquidated. That's the key to survival, as we say so often.

• 15:07David Hoffman?

  I did just do the math just now. Well, yeah, I'm bad at math, so I don't know if I did it right. But 387 million down to 1.9 million is 98%.

• 15:17Ryan Sean Adams?

  I mean, that's, that's what a lot of assets got a 98% hit too. David, what do we got coming up next?

• 15:24David Hoffman?

  Coming up next, a bunch of news. We're going to start with the GTO airdrop. I mean, it's governance token on Solana. I think Solana is by far biggest airdrop of a very esteemed protocol. And also Cosmos Hub is having a civil war. It's entering its, you remember the block size wars of Bitcoin? I think that's what's going on with Cosmos Hub. So an airdrop, what does that mean for a chain split for Atom holders? We're going to talk about that. But first, a moment to talk about these fantastic sponsors that make this show possible, especially Kraken, our preferred exchange for crypto in 2023 and 2024. If you do not have an account with Kraken, consider clicking the link in the show notes to getting started with Kraken today. Kraken knows crypto. Kraken's been in the crypto game for over a decade. And as one of the largest and most trusted exchanges in the industry, Kraken is on the journey with all of us to see what crypto can be.

• 16:09David Hoffman?

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• 16:50David Hoffman?

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• 17:33David Hoffman?

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• 17:38David Hoffman?

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• 18:21David Hoffman?

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• 18:32Ryan Sean Adams?

  The Solana community is getting an airdrop, and it looks to be absolutely massive. GTO is launching a governance token. It's called GTO. David, can you give us a recap of what GTO even is for folks that are unfamiliar?

• 18:45David Hoffman?

  GTO is a project on a Solana that is one of these app-layer projects that actually has to do with the Solana chain itself. So it's like these app-infra projects. GTO Soul is like the staked ETH version. So Lido, we have staked ETH on Ethereum, GTO Soul on Solana. But it's not just that. It's also MEV extraction as well. So you can run the GTO client to get the MEV trading done, like built, kind of like the block proposer system of Ethereum. And so it combines MEV extraction plus the staked soul. And then it combines that in together to optimize your soul yield. And this is called the GTO network, the GTO client.

• 19:24Ryan Sean Adams?

  All right. So it's like when you said MEV boost, that is a product from flashbots that basically helps to create a marketplace for all of the MEV buying and selling on top of Ethereum and GTO does something similar for Solana.

• 19:38David Hoffman?

  It democratizes access to MEV rewards. So instead of actually giving it to the most of it to MEV extractors, it gives it to people who just run the clients. And now and GTO now puts it into the GTO token. So it's spreading out MEV capture on Solana.

• 19:52Ryan Sean Adams?

  So it's that and plus it's also, it's also Lido, as you said, for Solana.

• 19:58David Hoffman?

  Exactly.

• 19:59Ryan Sean Adams?

  Okay, so.

• 19:59David Hoffman?

  So you can imagine why the Solana community is very stoked about this. It's like, you know, a very deep integration with the Solana system itself.

• 20:06Ryan Sean Adams?

  And how deep is the airdrop? Does it go to everybody or like who gets this?

• 20:10David Hoffman?

  Yeah, so probably some more granular distributions into internal GTO community members, but really the big one is if you are a holder of the GTO soul token, which is like the staked ETH or our ETH of Ethereum, but for Solana, if you hold GTO soul, so because you're getting the yield of Solana in GTO soul, then you're getting airdropped. That's probably the big one. There's other ones as well. 10% of the total supply is being airdropped to its community members.

• 20:35Ryan Sean Adams?

  Fun fact for you, David, the ETH maximus over at Bankless, you know, Bankless, right? They've got a airdrop hunter and they actually predicted GTO and they predicted the the drop of GTO and so.

• 20:47David Hoffman?

  And so wait, so people using the ETH maxi product got the Solana airdrop?

• 20:51Ryan Sean Adams?

  That's right.

• 20:51David Hoffman?

  Wow.

• 20:52Ryan Sean Adams?

  Bankless.com slash airdrop hunter. And you would have known about that in advance, David. Fortunately, I didn't because I didn't actually take the time to to use this fully. David, let's talk a little bit about Cosmos. So we talked about Solana and their airdrop, but we also said that the Cosmos community is getting some sort of a new token. Tell me about this. I used to be pretty active in the Cosmos community back in the day.

• 21:17David Hoffman?

  Yeah, so Cosmos is entering its block size wars era. Block size wars is this era in Bitcoin in which like there was this civil war between the big blockers and the small blockers. And it fractured into Bitcoin and Bitcoin Cash. It was the largest split of Bitcoin ever. And Bitcoin Cash was like decently relevant for a while and it's just like slowly faded off into irrelevant.

• 21:38Ryan Sean Adams?

  Can I ask you something about this? But so when you say the block size wars, it wasn't, it wasn't just about the, the size of blocks, was it? It was about something a bit more fundamental in terms of like what Bitcoin was supposed to be. Was it supposed to be this store of value asset? Or was it supposed to be this like kind of payment network?

• 21:57David Hoffman?

  That's exactly right. Yeah.

• 21:58Ryan Sean Adams?

  Is Cosmos actually having a war of block size? Or is it about some fundamental philosophical divide here?

• 22:05David Hoffman?

  It's a philosophical divide. It's not about the size of blocks on the atom chain, but it is about like, what is the identity of the, of the Cosmos hub, the atom token? And so it's, it's like kind of the fractal equivalent, right? And so it's not about the size of blocks. It's more about, it is about the moneyness conversation though. So the block size wars for Bitcoin was like, well, small blockers are like Bitcoin is a store of value and big blockers are like Bitcoin is a payments network. Store of value people won, payment networks is Bitcoin Cash. That's completely relevant now. Cosmos is entering a similar phase in which the token of atom, it's like, what is the purpose of atom? Is it meant to secure Cosmos? Or is it the money of Cosmos? And this is the divide that is happening right now in Cosmos.

• 22:48David Hoffman?

  And there is, unlike Bitcoin, there is a on-chain voting for Cosmos. So we actually get to see these votes show up and take place. And that vote did take place. And so the, the question is, is the atom token good collateral for DeFi? Or is it meant to only serve the security of the atom hub? And this was the vote that happened. And this is a question of inflation. How much do we inflate the atom currency? And so this vote went through to cap the inflation of atom at 10%. Right now it's at about 14. Plus percent and the vote was to lower inflation and to cap it. So it only inflates so much over time at 10%.

• 23:33David Hoffman?

  That vote went through and passed. And so the, not by a crazy amount, like there was a clear division in the community. The, it was 41% supported it and 32% voted against it. So like

• 23:48Ryan Sean Adams?

  That's really close.

• 23:49David Hoffman?

  A clear victory that shows a very strong division in the community, right? So, and 80% of the validators participated. It wasn't like binary. And so now Atom, the token, will be capped at 10%. What does this do? How do we like analyze what this means for the Atom ecosystem? Here's something that was helpful to analyze this. People out here are thinking that lower inflation equals less supply equals higher Atom price. And they are voting yes. The other camp is saying lower inflation doesn't affect price and are voting no. Meanwhile, traders, big and small, are like, oh, yield is going down. Maybe I should move Atom into DeFi. Atom liquidity goes up. Atom DeFi strategies become more reliable and DeFi protocols start earning more revenue.

• 24:34David Hoffman?

  Basically, lowering inflation takes away Atom from staking and incentivizes it to be more productive in DeFi because they are lowering the productivity of Atom as a staking asset because yields are lower.

• 24:45Ryan Sean Adams?

  It's becoming more like money.

• 24:46David Hoffman?

  It's becoming more like collateral.

• 24:48Ryan Sean Adams?

  Like Ethereum has gone through this, remember? Minimum viable issuance, right? Decreasing the issuance all the time until we kind of put a permanent monetary policy in place that is based on demand for block space and the amount of staking. And turned Ether into a much more of monetary type of unit that accrues value. And this, a similar type of conversation is happening in Cosmos, right?

• 25:12David Hoffman?

  That's exactly right. Jay Kwan, who is the founder, one of the main core founders of Cosmos, wrote the Tendermint White Paper, like built IBC. He is not pleased. So this is like the Satoshi, if you will, the original inceptor of Cosmos. So the, the guy, and is like, I don't agree with his vote.

• 25:33Ryan Sean Adams?

  And my understanding too, David, is he's been kind of checked out of the Cosmos community for the last couple of years. He's been kind of on the periphery, not as actively involved. So that's some other context going into this, I believe.

• 25:43David Hoffman?

  Sure. So Jaquan says, despite the vote passing, which is something not too surprising, it would be good to know whether the later votes came from newly purchased atoms or not. Now, let's coordinate a split, he says.

• 25:56Ryan Sean Adams?

  Wow.

• 25:57David Hoffman?

  Yo, that's great. Great for you guys. You guys do you. I'm forking. And so Jaquan is going to fork Adam, and now there's going to be Adam 1, like Adam number 1. As in, they're going to make a new Adam Cosmos Hub, and it's going to be the one that doesn't support Adam as money and instead optimizes for chain security by issuing high yields, high inflation for Adam holders who stake, which is how you get high security.

• 26:26Ryan Sean Adams?

  I don't understand how that gives you high security, though.

• 26:29David Hoffman?

  Because it incentivizes all the Adam to stake to the Adam.

• 26:33Ryan Sean Adams?

  Yeah, but if the value of your Adam is lower, then the economic security is lower.

• 26:38David Hoffman?

  And that's why we are ETH Maxies, brother.

• 26:42Ryan Sean Adams?

  I mean, it's just, this is an argument we've had for a long time.

• 26:46David Hoffman?

  We've done this before. That was all of last cycle.

• 26:50Ryan Sean Adams?

  Bitcoin did this. Ethereum certainly did this. And the core argument was if you are a Layer 1 and you're trying to optimize for security, economic security,

• 26:58David Hoffman?

  Security comes from money.

• 26:59Ryan Sean Adams?

  Then what you have to do is also, if you want to fully optimize for security, you have to fully optimize to have your Layer 1 assets be a monetary instrument and be a money. And actually, that's one of the things that kind of pulled me away from the Cosmos community, is I was just like, I don't understand how atoms accrue value in this world.

• 27:18David Hoffman?

  Yeah, because y'all keep on inflating it into infinity. Inflating it 14% a year, bro.

• 27:22Ryan Sean Adams?

  Well, the answer is always, it's not money. It's something else. And what is moneyness really, anyway? And if we need money, we'll just import Bitcoin into our system. And like, if you do that, you won't have economic security to actually support all of the things that you... It was just a circular argument, and it sounds like now the debate is being settled, the crypto way, which is fork choice. You get to decide. So I haven't seen a good old fashioned fork in a very long time, David. Remind me what happens. All right, so I have some Adam tokens. Do I get Adam 1?

• 27:53David Hoffman?

  You get Adam 1. If you are an Adam token holder, your blockchain is just going to split in two. The historical state will be copied, and then you'll have both Adam and Adam 1. It should be called Adam 2, but I get it.

• 28:08Ryan Sean Adams?

  It's Adam classic.

• 28:10David Hoffman?

  Classic, yeah. Jay's vision, yeah. So yeah, if this fork does happen, you'll have atoms on both chains and one will have more value than the other and one.

• 28:20Ryan Sean Adams?

  The market will decide.

• 28:21David Hoffman?

  The market will decide and one will likely, I'm like pro, like Jay, I love the philosophy, man, but like you're gonna lose to money, like capital begets capital, liquidity begets liquidity, governance begets governance, like you're gonna lose, like.

• 28:34Ryan Sean Adams?

  Well, I just feel like we've seen this experiment play out with forks enough times. And yeah, but who knows, maybe this time it's a little bit different and the Cosmos community, to be fair, is a little bit different than other communities. So I don't know, but I'm pretty excited about getting those fork tokens with my Adam one and I can't wait to hit sell because it's not money. Sorry, Jay. I mean, Bankless listener, you do whatever.

• 29:00David Hoffman?

  You know, you know, our stance on this whole thing. At some point, when do our theses just become just like, if this plays out the way that our the Bankless thesis about money and layer ones plays out, I declare that it is no longer a thesis and it's just correct.

• 29:15Ryan Sean Adams?

  No, no, we're gonna retest that every single cycle. We're gonna for infinity, infinity cycles. We gotta retest all our assumptions every single cycle. Okay, this last thing, remember we talked about.

• 29:28David Hoffman?

  Speaking about learning.

• 29:29Ryan Sean Adams?

  Yeah, speaking about learning lessons, what was the learning lesson for Paradigm? We talked about this new layer two that had some.

• 29:36David Hoffman?

  This two not layer two. It's not a.

• 29:38Ryan Sean Adams?

  Oh, it's not a layer two. This multi SIG calling itself a layer two called Blast, which is basically pyramid scheming the whole thing. Like, I'll use this term, Ponzifying.

• 29:49David Hoffman?

  Ponzifying incentives, yes.

• 29:50Ryan Sean Adams?

  Incentives, right?

• 29:51David Hoffman?

  Incentive Ponzies, yeah.

• 29:52Ryan Sean Adams?

  Not necessarily bad, not necessarily good. I'm personally neutral on that. It's a growth mechanic. Like, you have to understand that it comes with risk and all sorts of things and, you know, easily up, easily down.

• 30:04David Hoffman?

  It doesn't really, it doesn't really come with risk because like you're depositing your assets in and then like other people get like rewarded more if they referred you in the issuance of new Blast tokens.

• 30:16Ryan Sean Adams?

  Yeah.

• 30:17David Hoffman?

  Like paying a new incoming money being paid to support old money. That's the true Ponzi. No one's ethers being like redistributed. It's just the Ponzi incentives of BLAST tokens are the Ponzi.

• 30:28Ryan Sean Adams?

  What I mean is risk to the ecosystem in that like you have, you're just, it's, it's, it's cocaine, man. It's a huge, it's a sugar rush. And so you shoot all the way up and you know what's going to happen. It's going to come crashing down at some point in time because it's not, anyway, that aside, the bigger issue we talked about last week was it's not actually a layer two. It's a multi-sig of some sort.

• 30:49David Hoffman?

  Even worse, it's a one-way multi-sig. You can't withdraw.

• 30:52Ryan Sean Adams?

  And so David, we are on a Doon Analytics board and I am seeing some numbers here that are very big. How much value is actually locked in BLAST at this point?

• 31:01David Hoffman?

  $620 million has been deposited to BLAST.

• 31:05Ryan Sean Adams?

  Is that product market fit?

• 31:08David Hoffman?

  On a three of five, one-way multi-sig, that's not a layer two. And then being advertised as a layer two. And so like, at this point, it's just like, why do layer twos go do these engineering challenges?

• 31:21Ryan Sean Adams?

  Why do we do the hard stuff?

• 31:22David Hoffman?

  Bytecode EVM equivalents and like distributed sequencers. Like, why are we doing the hard stuff? You're getting $600 million for being a three of five multi-sig that you can't withdraw from. Like, it's just an insult to all the actual hard engineering teams out there.

• 31:37Ryan Sean Adams?

  I guess so. I mean, my take is it's just a shortcut. But anyway, a lot of money has piled into this, right?

• 31:43David Hoffman?

  For comparison, that is the equivalent of the entire TVL of Solana.

• 31:48Ryan Sean Adams?

  What?

• 31:49David Hoffman?

  Yeah.

• 31:50Ryan Sean Adams?

  They did the entire TVL of Solana in like a week?

• 31:53David Hoffman?

  Yeah, a couple of weeks. Yeah.

• 31:55Ryan Sean Adams?

  Oh, wow. Yep. Well, uh, there you go. That's, that's a lot of money that's already been injected in this. And I gotta imagine most of this is ETH. Yeah. Look at this.

• 32:03David Hoffman?

  It's ETH and stables. Yeah, but mostly ETH.

• 32:05Ryan Sean Adams?

  Yeah, Ether is just so massive. Um, okay, so Paradigm has been associated with this project because they're a key investor in this project. They were also a key investor in FriendTech, right? So they're starting to get this reputation of like, if you want your token to go up, if you want to experiment with these, you know, Ponzi economics, Paradigm's the name, right? And so like Paradigm plus new project equals number go up, token. Go up, TVL go up. Paradigm, it looks like, is trying to distance itself maybe a little bit from that. And we've had Dan Robinson on before.

• 32:35David Hoffman?

  Great guy.

• 32:35Ryan Sean Adams?

  We think very highly of many of the folks at Paradigm and many of the research that they do, much of the research that they do and the projects that they support. George, yes, we could go on with some fantastic people.

• 32:47David Hoffman?

  Couldn't say better words.

• 32:48Ryan Sean Adams?

  Okay, so what is Dan saying here? What's the gist of this?

• 32:50David Hoffman?

  Yeah, so he goes, "There are a lot of components of BLAST that I'm excited about and would be interested in engaging with people to work on. That said, we at Paradigm think that the announcement this week crossed lines in both messaging and execution. What we don't agree with is the decision to launch the bridge before the layer two. So you launch the deposit contract before the network exists and then also not allow withdrawals for three months since we think..."

• 33:14Ryan Sean Adams?

  Oh, I forgot about that. You can't get your money out of that, huh?

• 33:17David Hoffman?

  Right. Dan says it sets a bad precedent for other projects. Yeah. To draw another lesson out in history, like, why did BlockFi go under? Why did Genesis go under? Because Alex effing Maschinsky was doing an actual Ponzi and paying ridiculously high yields. And so all of the legitimate competition had to be dragged into the cesspool of like fraud and illegitimacy. Because of one player who is playing unfairly. And so this is what he's, this is what Dan is saying. It's like, it's a bad precedent. Like, don't, they're incentivizing deposits, the network's not live, it's a one-way multi-sake, it's a bad precedent. Don't encourage this behavior. So I'm pretty proud of Dan for making this statement.

• 34:00Ryan Sean Adams?

  Even if BLAST isn't doing this, right, it's the bad precedent is the key language here. Because this is like, trust me, bro, security. And we've, we already had that. We had that with all of the crypto banks and we don't need that again. So even if BLAST doesn't screw people over.

• 34:14David Hoffman?

  Right.

• 34:15Ryan Sean Adams?

  The next project to follow this new well-trodden path that kind of works from a growth perspective, totally will and totally could. What else does he say here? Because this is interesting. This is a investor basically throwing some shade.

• 34:32David Hoffman?

  Yeah.

• 34:32Ryan Sean Adams?

  At a set of founders that they invested in.

• 34:35David Hoffman?

  It's a VC publicly like denouncing. Announcing the actions of one of their portfolio companies.

• 34:39Ryan Sean Adams?

  You don't typically see that.

• 34:40David Hoffman?

  Generally, you don't. That's generally a no-no. Which means, which means that this is really egregious, bro. There's also emphasis on Pac-Man, who is the founder of Blur, who's now also the founder of Blast, who's really been like the guy leading this execution of these strategies, really leaning into the gamification thing. He's, this guy's like 24. He's like, had like this crazy history, like just operator of operators. I think he's, I think he's gone too far. I think he should reel in a little bit and become a little bit more tame. We have seen when people go too far in crypto. I don't want him to follow that path.

• 35:17David Hoffman?

  Yeah.

• 35:17Ryan Sean Adams?

  Well, that's what the, the social layer of crypto is telling them. The non-existent social layer, I believe. I think Paradigm was maybe on the hot seat a little bit more than Bankless last week, but it was between Paradigm and Bankless.

• 35:31David Hoffman?

  Yeah, you know, you know who else needs to reel it in? Those goddamn Bankless guys. Submitting proposals.

• 35:37Ryan Sean Adams?

  Well, you're, you're welcome Paradigm for absorbing some of the heat for you guys. We're happy to do that. Anyway, don't want to revisit memory lane. We did a whole episode on this. What do we got coming up next?

• 35:47David Hoffman?

  Someone is up to some shenanigans with the Ethereum blockchain, playing some timing games with blocks being added to the chain. We'll talk about what that means. Also, where in the world is Richard Hart? If you know, the SEC would like to call him.

• 36:00Ryan Sean Adams?

  Give him a phone number?

• 36:00David Hoffman?

  Yeah, give him, call Gary, because the SEC would like to know exactly where Richard Hart is. And also, the Kyber network is exploited for $55 million, and now the exploiter wants to take control of the company. I don't know if it works that way, but apparently he does. We're going to get into all of these stories and more, but first a moment to talk about these fantastic sponsors that make this show possible, especially MetaMask and its new spiffy MetaMask portfolio. If you have not opened up your MetaMask portfolio, it's pretty cool. Check it out. There is a link in the show notes. MetaMask portfolio is your one-stop shop to navigate the world of DeFi. And now bridging seamlessly across networks doesn't have to be so daunting anymore. With competitive rates and convenient routes, MetaMask portfolio's bridge feature lets you easily move your tokens from chain to chain using popular Layer 1 and Layer 2 networks.

• 36:44David Hoffman?

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• 37:27David Hoffman?

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• 38:10David Hoffman?

  real world. And now, something big is happening. Introducing the Cello Layer 2. It's a game-changing proposal that's going to bring Cello's rapidly-growing ecosystem home to Ethereum. Vitalik has shared its excitement for the Cello Layer 2 on the Cello forum, so has Ben Jones from Optimism. But why? The Cello Layer 2 will bring huge advantages, like a decentralized sequencer, off-chain data availability, and one-block finality. What does all that mean? Rock-solid security, a trustless bridge to Ethereum, and more real-world use cases for Ethereum without compromise. And real-world adoption is happening. Active addresses on Cello have grown over 500% in the last six months. With the Cello Layer 2, gas fees will stay low, and you can even pay for gas using ERC20 tokens. But Cello is a community-governed

• 38:51David Hoffman?

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• 39:03Ryan Sean Adams?

  David, you promised us shenanigans. Tell us about the shenanigans.

• 39:06David Hoffman?

  Oh, I got shenanigans for you. Here's a tweet from Tony who works at the EF. And he says, "P2P.org announces," he is not associated with P2P.org. "P2P.org announces that it will call 'get header' later in this slot," these are technical terms, "trading off chain stability against more MEV profit." "This is exactly the centralized behavior that we should not tolerate, "as long as we, as users, have the choice about where to stake our assets." Okay, what is going on? This is something that-

• 39:33Ryan Sean Adams?

  I'm in Ethereum. I feel like I should know what this tweet means. I have no idea.

• 39:37David Hoffman?

  Yeah. So this was something that was predicted as something that is possible to do by this guy, Casper, who also works at the EF, as well as a few other people who put this paper together called, "Time is Money: Strategic Timing Games in Proof-of-Sake Protocols." Every once in a while, I do put on my research hat and open up some research papers. So I read this one. It's actually pretty good. There's a big mathy section that I skipped.

• 40:01David Hoffman?

  But basically, if you go down to slide 8, page 8, Ryan, it really shows you went past it.

• 40:08Ryan Sean Adams?

  Am I an Ethereum researcher now?

• 40:10David Hoffman?

  Right there, right there, right there. Okay, so this is showing, this is the x-axis, is that the horizontal axis?

• 40:17Ryan Sean Adams?

  Cut that header, guys.

• 40:18David Hoffman?

  The x-axis is the flat one, right? And so that's time. And then the y-axis is level of Ether extraction based off of time. If, Ryan, it is your turn to propose a block, you have 8 seconds, 12 seconds, or something, some number of seconds, to propose that block before you are late and you get minorly penalized for being late and not proposing a block. If you, usually people, honest behavior and just like not playing any timing games, when it becomes time to propose the block, you just propose it, right? You're collecting the transactions, you put them all together, you get the header of the block, which has all the transactions in it, and then you propose it.

• 40:55Ryan Sean Adams?

  It's because I'm an honest validator. That's what I do.

• 40:57David Hoffman?

  If you wait, you can kind of capture some more MEV and more transactions because you're having inbound transactions, transactions are coming into you. If you wait and delay your proposer, you can kind of steal some MEV from the next guy.

• 41:13Ryan Sean Adams?

  Just skim a little bit off the top.

• 41:14David Hoffman?

  Yeah, right. You're just collecting more transactions that would otherwise have gone to the next guy in the queue. And so you're just taking it from them. And this is like a rational economic strategy that these ETH researchers were like, "Yo, this is possible. We are not observing this yet, but this is possible." And this paper was released like half a year ago.

• 41:35Ryan Sean Adams?

  And it's happening now.

• 41:36David Hoffman?

  And now P2P is announcing, proudly announcing that, "Yo, we're gonna play some timing games and we're gonna have a higher yield than our competitors."

• 41:44Ryan Sean Adams?

  Is P2P org, are they, what are they?

• 41:47David Hoffman?

  They are a stake, you can go stake with them. You can go stake with them, yeah.

• 41:51Ryan Sean Adams?

  Oh, okay. How much ETH stake do they have?

• 41:54David Hoffman?

  Institutional-grade staking solution, $2.5 billion. I'm assuming that is mostly all ETH. Yeah, I think this is Kobe's project, bro. I think Kobe is like the founder, one of the founders of this, p2p.org. Yeah, and also another one of the Lido founders, I can't remember, Facili, I can't remember.

• 42:15Ryan Sean Adams?

  But they're able to present, like, give their validators, basically the stakers who stake with them, an edge, right? A bit more yield, a bit more juice.

• 42:24David Hoffman?

  So like, it's dangerous to play timing games, because if you, say you wait to propose your block right up to the edge, and then you have some sort of latency hiccup, then your block doesn't get proposed, and then you get penalized. And so you don't get any money. And so it really benefits people who have better latency and better connectivity, which is why it doesn't really benefit solo stakers. Like, if you are somebody who's like P2P, you can wait the maximum amount of time, which is like four seconds. Whereas solo stakers can't risk, can't take that level of risk, because they don't have the same connectivity. And so they can only take a few seconds. And so it benefits high connectivity. And then P2P is like, "Yo, we're gonna play timing games, come stake with us, because we're gonna get more yield."

• 43:06David Hoffman?

  And it's basically just like, "Yo, we're gonna just take the transactions from the next guy and give it to us." And so this is generally considered rational, but shitty behavior.

• 43:15Ryan Sean Adams?

  It's an MEV problem, basically.

• 43:18David Hoffman?

  It's an MEV.

• 43:18Ryan Sean Adams?

  Yeah, I have a take about that, but I almost don't want to get into this whole take. I think we gotta save it for our takes episode, David.

• 43:25David Hoffman?

  Take the takes?

• 43:25Ryan Sean Adams?

  Yeah.

• 43:26David Hoffman?

  One little bit more of data. .0065 ETH per second is the price of time on Ethereum block production. So if you wait one second, you on average will obtain .0065 more ETH.

• 43:40Ryan Sean Adams?

  Here's the problem with this, right? And the tweet frames it as like, we shouldn't tolerate this. Like, don't do that. It's bad behavior, right? I agree with all of that. And yet, and yet also, our protocol has to be hardened against that, that kind of bad behavior. Like, again, David and I were just playing at E3 Searchers. So like, somebody call the devs. It's not you and I who are going to solve this. But my take is that we can't use these values, like the idea of Ethereum alignment, as a crutch. Because we have to accept that there will be people out there that will cheat, that don't share these types of values. And Ethereum is strongest when it actually harnesses stuff like that. When it harnesses the human greed, when it harnesses the MEV to accomplish its goals.

• 44:22Ryan Sean Adams?

  This is why, like, you and I have been in favor of mechanisms like ultrasound money, right? Like, the more ETH we burn, the more numbers should go up, right? More security for everybody. It's an, what does Ethereum network want?

• 44:35David Hoffman?

  You take the MEV from the extractors and you give it to the ETH holders. There's a wider pool of people.

• 44:39Ryan Sean Adams?

  Yeah, so give me that greed, all that greed. ETH number go up, like, you know, and then we'll convert that into decentralization. We'll convert that into economic security. Anyway, it's a general observation that I think that it's good to make this visible, but we shouldn't go over the top, you know, in the crypto community, in the Ethereum community, and rap people's knuckles and just say, you know, "Bad builders, bad validators, do not do this. We have to repair it at the mechanism level and at the root."

• 45:06David Hoffman?

  Yep. That is the power of crypto economics, that we have the power to do that. Okay, moving on, ready?

• 45:11Ryan Sean Adams?

  Yeah.

• 45:11David Hoffman?

  Kyber Network, which is a DeFi liquidity protocol, started in 2017 as an ICO, just been in the background invisibly providing liquidity. OGs, like, super competent team, been around for a while. Sadly, was exploited for $55 million. 20 million from Kyber and Arbitrum, 15 from Optimism, 7 from the ETH Layer 1. And the exploiter, this is the same exploiter, if you saw this on Crypto Twitter, who was like, who exploited Kyber and then wrote this on-chain message saying, "Negotiations will begin after I've had a rest."

• 45:45Ryan Sean Adams?

  Wow, yeah.

• 45:45David Hoffman?

  People were like, "Oh, he's just exploiting, now he's gonna go take a nap." So here are the, here are the demands. He wrote this very long on-chain message. It goes to all relevant and/or interested parties.

• 45:55Ryan Sean Adams?

  This is the hacker who has that 50 million from, from Kyber Network.

• 45:58David Hoffman?

  Yes. To all relevant and/or interested parties, I thank you for your attention and patience during this uncertain time for Kyber, as well as the company of Kyber, Dow and Company. Below, I have delineated a treaty for us to agree to. My demands are as follows. Complete executive control over Kyber the company. Temporary full authority and ownership over the governance mechanism Kyber Dow in order to enact legislative changes. My current wallet address is fine for this. All documents and information related to company and protocol formation, structure, operation, revenues, profits, expensive assets, liabilities, investors and salaries, and the surrender of all Kyber the company assets, both on and off-chain,

• 46:43David Hoffman?

  including but not limited to shares, equity, tokens, partnerships, blogs, websites, servers, passwords, social channels, and any and all creative and intellectual property of Kyber. He's saying, "Hey, in order for this money to return, you gotta give me the company. Like, I'm the captain now."

• 47:01Ryan Sean Adams?

  This is so stupid. So first of all, whoever this is is obviously a complete dick. But also, like, these are impossible demands to meet.

• 47:11David Hoffman?

  I think technically they would be possible, but he needs to like-

• 47:16Ryan Sean Adams?

  Then he would get arrested, David.

• 47:18David Hoffman?

  He would get arrested then.

• 47:19Ryan Sean Adams?

  Here's my equity. Where is Kyber organized? It's like Singapore or Hong Kong or something if I recall correctly. Like, what email address should I send this to? And like, what name should I put? Oh, here's my name. Like, it's settled in MeetSpace, bro. Like, he doesn't- this is impossible. And I would rather just like, send the authorities to his house rather than send him legal documents if you know exactly who he is.

• 47:42David Hoffman?

  And so it's gotta be a troll then, right? Like, it's gotta be a troll.

• 47:46Ryan Sean Adams?

  It's gotta be a troll. So maybe it's a negotiation tactic, but he ends with this. He says, "This is my best offer. This is my only offer. I require my demands to be met by December 10th. Otherwise, the treaty falls through," and I guess he keeps the 50 million. Actually, I don't think this person's in a good position to negotiate. In so many cases-

• 48:05David Hoffman?

  Most exploiters end up getting in trouble.

• 48:07Ryan Sean Adams?

  Get trapped.

• 48:09David Hoffman?

  It's really hard to hide your tracks.

• 48:11Ryan Sean Adams?

  Yep. FBI. Somebody hunts him down, finds them. Maybe he can exist for a while, but like, how's he actually going to exit these positions? It's gonna be tracked, you know, on-chain.

• 48:23David Hoffman?

  The only thing I can think of is like he just threw a big old distraction their way and he's trying to figure out like how to

• 48:28Ryan Sean Adams?

  What his next move is?

• 48:29David Hoffman?

  Yeah.

• 48:30Ryan Sean Adams?

  You think some of these hackers, they do the hack and they're like, oh, I like I caught the car and I don't like know what I'm gonna do.

• 48:36David Hoffman?

  Right. Yeah, exactly.

• 48:37Ryan Sean Adams?

  Yeah, a dog chases car and catches it. David, we've got some execution layers on the scene. The first one, it's called movement, I believe. What is this?

• 48:46David Hoffman?

  Yeah, movement is a move based layer two on Ethereum with Celestia data availability. I think if you're a developer, you really think move is super cool. I guess, I don't know. Cool programming language, great, you know, stuff over there.

• 49:02Ryan Sean Adams?

  It's not, it's not, it's not EVM. It's just like not solidity, right?

• 49:06David Hoffman?

  Yeah, it's not solidity. Yeah. Move is move like the Facebook language.

• 49:09Ryan Sean Adams?

  It was, yeah.

• 49:10David Hoffman?

  Oh, look at me. Look at this guy. Anyways, move base Ethereum layer two on a scene got launched with Celeste data availability. That's pretty cool. Also, say, say V2, say is like one of those like big, high valued like chains that go raise a ton of money towards the end.

• 49:27Ryan Sean Adams?

  Eath killers in quotes.

• 49:28David Hoffman?

  Eath killers, yeah.

• 49:29Ryan Sean Adams?

  High TPS thing.

• 49:29David Hoffman?

  Yeah. And now they're announcing say V2 paralyzed EVM. So this is also what Monad does as well.

• 49:37Ryan Sean Adams?

  Parallelized, right?

• 49:39David Hoffman?

  Parallelized EVM.

• 49:41Ryan Sean Adams?

  Not paralyzed, it's parallelized, right?

• 49:44David Hoffman?

  Parallelized.

• 49:44Ryan Sean Adams?

  So it happens in parallel. Yes.

• 49:46David Hoffman?

  Yes. If we could get the parallel EVM to the Ethereum layer one, that would be super cool. I don't know how much of an engineering lift that is. Anyways.

• 49:53Ryan Sean Adams?

  If we could get that by next week too, guys, that'd be great.

• 49:56David Hoffman?

  Yeah, that'd be, that'd be fantastic. And so, yeah, some, some cool new chains.

• 50:02David Hoffman?

  Yeah, all the Chaney Chaney stuff. Ready to move on to NFTs?

• 50:07Ryan Sean Adams?

  I just want to say one more thing. I think there's a lot of experiments going on in, in parallelized EVMs, right? One is this say thing. It's a layer two. Another is Monad. We've talked about that before. They're doing like, you know, a parallelized EVM that, you know, can very high transactions per second. Also.

• 50:26David Hoffman?

  It's like one of the big things that the Solana people flex about the Solana virtual machine is it's like localized fee markets and parallelization.

• 50:32Ryan Sean Adams?

  Yeah, they've got a great.

• 50:34David Hoffman?

  This is that for the EVM.

• 50:35Ryan Sean Adams?

  This is that for the EVM. And also Eclipse, who we've brought on before, which are basically doing Solana. Virtual machine only on Layer 2. Anyway, a lot of cool innovation going there.

• 50:44David Hoffman?

  Also with Celestia data availability.

• 50:44Ryan Sean Adams?

  Okay, we could talk about NFTs now. Tell me about it, David.

• 50:47David Hoffman?

  Okay, so I, we, Ryan, like the cats. That's a phrase that the cats say. These are the cool cats. They got a big blow up balloon on Macy's Thanksgiving holiday day parade, and I think that's pretty cool.

• 51:02Ryan Sean Adams?

  One of my kids was watching this, and she said, "Dad, it's a cool cat."

• 51:05David Hoffman?

  Oh, they know what a cool cat is?

• 51:06Ryan Sean Adams?

  Yeah, they know what a cool cat is, yeah.

• 51:07David Hoffman?

  Oh, cool. We don't have the picture up, but there's a video of Klon, who is the creator of Cool Cats, like, doing like a selfie video as he's walking through with the cat around him. Yeah, I met him at the Cool Cats meetup in LA when I lived in San Diego. And like, there was like, there was like 200 people there at this Cool Cats meetup in LA. And like, there was like this cat drawing station, and he was just like there just drawing some cats with like some other Cool Cat owners.

• 51:29Ryan Sean Adams?

  Doing it for the art. We're not doing it for price anymore. We're just doing it because we want to support the art.

• 51:34David Hoffman?

  Yeah, I thought that was pretty cool.

• 51:35Ryan Sean Adams?

  David, where in the world is Richard Hart from Hex? I feel like that's an unsolved mystery.

• 51:39David Hoffman?

  Probably trolling someone online.

• 51:41Ryan Sean Adams?

  All right, so we got a block story. It says, "The SEC is having trouble serving Hex founder Richard Hart with its lawsuit."

• 51:47David Hoffman?

  I'm just shocked.

• 51:48Ryan Sean Adams?

  The SEC has some lawsuits for Richard Hart, I guess, and they can't find him, so.

• 51:54David Hoffman?

  He lives in Finland. He lives in Finland. He doesn't live in the United States.

• 51:57Ryan Sean Adams?

  About the location of Richard Hart?

• 51:59David Hoffman?

  I would like to know, yeah.

• 52:00Ryan Sean Adams?

  Yeah, Gary Gensler wants to know about that.

• 52:03David Hoffman?

  Yeah, so the SEC has said that it underscores the legal hurdles in prosecuting international cases involving digital assets. The Eastern District Court of New York City claims jurisdiction as many of the crypto asset transactions Hex herein took place on Uniswap, a so-called decentralized crypto asset trading platform whose developers are headquartered in Brooklyn. Yeah, so.

• 52:26Ryan Sean Adams?

  Is that, are they trying to implicate Uniswap here too?

• 52:29David Hoffman?

  Yes, yes, they are. So-called decentralized. Those are the words of Elizabeth Warren.

• 52:33Ryan Sean Adams?

  I don't know, man. I don't know who I dislike more. Is it the scammers or some of these kind of regulators that are trying to say?

• 52:42David Hoffman?

  Uniswap Labs needs to like rename to something else.

• 52:45Ryan Sean Adams?

  What?

• 52:46David Hoffman?

  Well, because like, oh, the Uniswap, the developers.

• 52:49Ryan Sean Adams?

  Are you trying to get into a bankless, bankless DAO thing again?

• 52:52David Hoffman?

  Oh my god, I am. Oh my god, I am. I am doing that.

• 52:58Ryan Sean Adams?

  Can't get it out of my head. Uniswap and Uniswap Labs, are they the same thing? What are they? Too confusing. How about CZ? He has been ordered to stay in the US for now. I suppose US authorities think he is a flight risk. So they're saying, you gotta, you gotta stay here. You can't leave.

• 53:13David Hoffman?

  Well, he has a massive amount of wealth and also where he's from, the UAE has no extradition treaty with the United States. So you put those two things together and they're like, you know what CZ? You're, you're gonna stay here.

• 53:24Ryan Sean Adams?

  And so he is, he is waiting for his court case, right? To actually determine his sentencing? Like his jail sentencing?

• 53:31David Hoffman?

  Right. How many years, months he will stay in jail, which will happen in like February 20 something?

• 53:36Ryan Sean Adams?

  February.

• 53:36David Hoffman?

  February, yeah.

• 53:37Ryan Sean Adams?

  Okay. Wow. So there you go. David, we got a meme of the week to end this weekly roll up. What are we looking at here? Elizabeth Warren?

• 53:45David Hoffman?

  We are looking at Elizabeth Warren tweet saying, "We do not need another private equity deal that could lead to higher food prices for consumers. The FTC is right to investigate whether the purchase of Subway by the same firms that own Jimmy John's and McAllister's Deli are creating a sandwich shop monopoly." And it is a political article.

• 54:06Ryan Sean Adams?

  This is a serious tweet.

• 54:06David Hoffman?

  This is a serious tweet. Yeah. She is going, she's not only recruiting an anti crypto army, she's also recruiting an anti sandwich shop monopoly army as well. Yuga.E, who works at Coinbase, who goes, "Senator, as one of your constituents, I would like to thank you for your tough stance on sandwich shops. These crumb jugglers have been wreaking havoc in our communities for too long. The election will be decided by issues of bread and fill, and I'm happy to see you understand that."

• 54:35Ryan Sean Adams?

  Oh my gosh. That is great. That is what Elizabeth Warren is spending her time on. Hey, better sandwiches than crypto. I think she's maybe more productive over there. That's for sure. All right. We're gonna end with risks in a minute, but first we disclose neither David nor myself have ever held the token called HECX. Important disclosure there, but we do own ETH.

• 54:53David Hoffman?

  Why is that in the disclosure?

• 54:54Ryan Sean Adams?

  It's an inside disclosure. I thought it'd be funny, maybe it's not. Risky disclaimers. Guys, crypto is risky. You definitely lose what you put in, but so are sandwich shops and delis. We are headed west. This is the frontier. It's not for everyone, but we're glad you're with us on the bankless journey. Thanks a lot.