Ambitious Endeavor yet we persevere nonetheless into the frontier on the Friday bankless roll up with coffee it’s always going to be a little bit late for me while I’m here in Montenegro for coffee Brian you got coffee I got coffee look at it right here right here you Don’t feel my coffee beautiful you know did people um since I was out last week on vacation enjoying myself uh did people think that the April 1st April Fool’s thing was like legit yeah like that I had to we had we were not going to do this podcast any longer Yeah Saturday April 1st we release on the bankless newsletter that we broke up Tuesday the state of the night notice the date Guys April 1st April 1st real important date uh Tuesday on the state of the nation I was solo Friday with the weekly roll up with Anthony also you Weren’t there and so but in the in the start of the Friday weekly roll up the first thing that we the first link I pulled up was this post about how we broke up and just a real make it real obvious that no Ryan is actually on vacation because Ryan actually takes Vacations at times go figure no breakup here and you know but has David been replaced by the AI have I’ve been in AI the entire time we may never know who knows all right uh topics of the week David we just did a hard Fork has been Hard for a week it’s hard Fork week chappella that’s what the upgrade is called and eth is over 2K for the foreign Dow drama continues which Ryan completely missed all of this yeah the Vegas nation is going to well here Ryan get downloaded about the arbitrum drama In real time uh also the Mev drama as well uh a new meta in Mev happened last week uh and that drama has continued continued the exploiter which again semantics don’t know if he’d call it exploiter or not had their uh Stables Frozen by tether so we’re going to talk About that and then there’s a new product launch Ryan you want to take this one dude I’m so excited about this it’s called The Token Hub so you know we’re looking at tokens tokens and we’ve got some uh token analysts that are telling us what’s bullish what’s bearish And what’s neutral it’s a new product for the bankless nation for bankless Citizens We’re releasing that uh today I believe it’s released right now so we’ll talk about for The Listener it’s already out it it’s already out David we also you know it’s the time of the year Around April I gotta remind you how you doing on your taxes man how’s that going for you real good because of the crypto tax calculator Ryan you use the crypto tax calculator don’t you uh I in some of my wallets but I I pass all the information over to the human Accountant but do you know what the who the the new ones all the new wallets because it’s actually a nice way to like practice doing taxes with the kids like doing it yourself when you have a little robot buddy so that’s what I’m just saying I I know you’re an accountant Practice and I know what she uses and I know she uses crypto tax calculator as well this is a badass tool yeah it’s totally that’s totally what she uses no way uh yeah and uh it’s a fantastic I’m just paying my accountant to use a crypto tax calculator no there’s more Than that come on uh but it’s a Time Saver for everyone like whether you’re a Trader whether you’re a D5 gen whether you’re an accountant and you’re like looking at your all of your wallets and all of your nfts that you purchased and all of this activity and you’re getting The hot sweats because you don’t know like how to make makes sense of any of this uh you just plug those addresses into crypto tax calculator dot IO and it sorts it out um they say they’re built by d-gens for degens and I really believe that because they picked up some transactions that Most other tax calculator crypto applications don’t and have not so I made the switch to them uh this year and it’s been fantastic also David there’s a little bit of a a bonus here if you type in Bank 30 what are you getting you’re getting some kind of a discount uh yeah And that magic number is 30 if you take that one out Bank 30 for 30 if you are a bankless nation citizen you’re right premium subscriber to bankless there is a different code for 40 off in the bank list Nation Discord so make sure if you’re a premium subscriber to go in the Discord to go get that extra 10 yeah because you’re never going to guess what the code is without going into this it’s not bank 40.it’s not it’s not that 40.all right David let’s get to the markets today man this is a good day for markets I’m feeling pretty good this is my the happiest um markets report we’ve had all of this year I think at least for me it is okay it’s a good week so what are we looking at for Bitcoin Bitcoin has crossed thirty thousand dollars we are at 30 thousand five hundred dollars Bitcoin is Up eight percent on the week congrats Bitcoin crossing the thirty thousand dollar Mark you’d love to see it oh that’s huge so okay uh this not only is this a thirty thousand dollars which is a nice round number and so therefore it’s significant we are also what is uh What’s not a meme is this thirty thousand dollars has now fully erased the three arrows Capital liquidation so when we broke above 24 ish thousand dollars we erased the FTX liquidation now that we are at above thirty thousand dollars we uh have completely erased the three errors Capital liquidation And so that means there’s only one big step and by that you mean because I’m looking on I’m a charter now I’m looking on the cracking charts Kraken Pro by the way thanks for uh thanks for sponsoring this and thanks for putting the charts uh out that you’ve you’ve put in it’s Fantastic interface you’re you’re talking about the last time Bitcoin actually hit the 30 000 actually dip below 30 000 was when uh May yeah so if you want to zoom into that so we can blow that up in the video okay oh they just happened so fast yeah so last May Was the last time Bitcoin was at thirty thousand dollars and then we had the three hours Capital liquidation that broke down below thirty thousand dollars that’s what you mean that’s what this this huge red candle down was in like June toward the end of June and yep um That destroyed Bitcoin and we have it now you’re saying we’ve recovered from that yes we’re back to thirty thousand back to thirty thousand yes we’re above three hours Capital uh the next step is to get above forty thousand dollars which would get us above Terra Luna And that would be the last of the big contagion events that really spawned this whole bull market I’m going to say it’s going to be really hard to get to forty thousand dollars that is yes that’s pretty hard um but yeah that is the next Milestone to recover from don’t you think it Requires new buyers it requires something a little bit different than what this Market has uh built out so far our ordinal’s gonna gonna make it to 40 000 you think uh ordinals are not gonna do it um could we step into forty thousand dollars without a mass influx Of new buyers uh it gets I mean the higher the higher we go the harder that that gets forty thousand dollars is a big ask apologies bit signal is that going to get us there always bid signal is not going to get us there I feel pretty fast Calling it um how about eth what is that looking like on the week ether two thousand dollars two things us American dollars uh so started the week at the low low price of eighteen hundred and fifty dollars we are currently just above two thousand dollars I keep on Checking it sometimes we’re above it sometimes we’re below it I think we hit two thousand and eight dollars today uh I’ve seen it dip down below back to 1997 or something but yeah above above two thousand and two dollars right now you know what I’m ready I’m ready to say Something here is um you remember I was thinking that there was not a huge probability but I’m gonna call it 60 probability that we would dip back into triple digit eth and that has not happened no it hasn’t and I haven’t set up the entire time that you’ve said That and I’ve been a patient little investor I’ve been waiting for the Triple digits again I thought that we would hit some sort of um you know like like post merge just like the bear Market hitting us FTX we have some rallies then we’d go back into this chop And the chop would take us back to to Triple digits it hasn’t yet and at 200 at 2K I’m almost I’m feeling pretty ready to capitulate on that oh like okay I don’t know if we’re going to see Triple digits again hang on let me let Me put on my bear cap okay because okay wait are we switching spots now yeah we’re switching spots can you put it can you pinch out a little bit yeah okay so uh too far go back a little bit so go back to the three rows Capital Liquidation okay so ether was that tooth Bitcoin it’s crazy how these round numbers happen Bitcoin was at thirty thousand dollars then three hours Capital liquidated ether ether was at two thousand dollars then three hours Capital liquidated it all the way down to like the 18 the 18 excuse me 870 Mark Which was the low for ether so interestingly ether hit its low for the cycle at 870-ish dollars the last May the three hours Capital liquidation it did not hit a new low with FTX even though Bitcoin did well that was actually it was a little later than May Uh it was in June it was in June yeah June 17th right uh and so the three hours Capital before three hours Capital got liquidated we were at where we are now at two thousand dollars uh we researched after three hours Capital uh ether went from uh 2000 down to 870 back Up to 2000 again and pretty quickly in like August I’d say and then it and then that and so it hit that it was started there fell down to 870 back up to 2000 then it retouched something like the high 900s and yeah liquidation yeah oh No we didn’t think we got one thousand triple digits again yeah and then and so they hit 1000 ish and then we’re back up to 2000.we are not above the Trio’s Capital liquidation point we are at the Thrills Capital liquidation point this is my bear cap we Have not broken through we are true hang in there and so while you are perhaps ready to capitulate there’s plenty of people and then I think plenty of reasonable takes that this is we’re just going to touch this and this was a local top and then we have another flat year Between two thousand and one thousand dollars for 2024 or the rest of 2023.uh that is the bear case that is no I still think that that’s the a likely case for sure I’m just getting you’re just explaining I know I’m just well yes but also I’m ready to capitulate on us going Back below one thousand okay that’s like because that’s a 50 haircut from here yeah yeah and how do you think that happens yeah I think that that happens uh that the case for that is the case that itai gave us on the weekly roll up which I don’t know if you’ve caught up On recession recession yes declaration recession his take is that this depreciation from four thousand eight hundred dollars down to one thousand dollars for ether and Bitcoin from like sixty seven thousand dollars down to twenty thousand dollars he didn’t call that a bear Market he called that a re-rating he’s saying the Bear Market is actually ahead of us and this is a an economic stock market bear Market everything is getting re-rated and that was 2022 and etai saying there’s still a case to be made for an actual economic equities s p NASDAQ bear market and that is Potentially ahead of us and so the case to why ether and Bitcoin would have a 50 haircut over the next year plus is that this is uh just Traders and this is a bounce uh but we still have an actual bear Market ahead of us and that crypto Assets are not going to be fun to hold inside of an actual bear Market I could see that I mean I think the real question there is you have two opposing forces of like people who think crypto is a risk asset and risk on assets will Get you know destroyed in that type of environment and then crypto people who think crypto is a monetary hedge and I think monetary hedge assets could actually do fairly well in that environment right if the government I mean are we going to tame inflation how are we going to combat a recession Interest rates have to go up like more money printing has to happen and so these are some opposing forces we’ll have to see which one wins out um well maybe there’s a chance for my triple digit uh Ethan how about this Bitcoin ratio what’s the race should I Doing this week uh down on the week down one percent we are at point six uh zero six five uh ether since the uh chappella upgrade has rebounded significantly but overall has just it’s been down week and then basically bounced back up to zero for the flat on the week there you go And uh total crypto market cap looking pretty pretty nice today yeah 1.3 trillion dollars nice to see that three number there it’s been I don’t think we’ve seen that three number yet uh since breaking down below a trillion dollars so 1.3 trillion not not bad not Bad yeah all right let’s talk about some of the signals from the market so one is looking at layer twos we’ve had some new Layer Two entrance ZK sync era and polygon ZK evm enter where are they placed on the board uh well here they are ZK sync era number four on L2beat.com board this is ranked by total value locked inside of the layer two and uh ZK sync coming in at number four with 200 132 million dollars locked inside of the first I think they call themselves the first ZK evm to Market which is pretty good of course still dwarfed by Arbitrum which has a significantly absolute gargantuan dude 6.4 billion dollars uh versus 232 but CK sincere has just been out for a few weeks um is also looking for polygon mentioned them uh they are down here at number 17 3.72 million in total locked value interesting discrepancy yeah yeah slower Start there in terms of total assets locked but you know with polygons uh Biz Dev team and all of the activity and everything that’s going on and that just the absolute massive size of their proof of stake um chain like that’s going to go up over Time but um still cool to see these new layer twos on the on the charts here I mean I think the real big story here is arbitrum one at 6.4 billion dollars the total locked value of all layers twos is close to Crossing 10 billion dollars here at 9.7 billion dollars close to Crossing 10 billion dollars in layer twos arbits from one clocking in at 6.4 billion of that David do you remember when we uh this is the beginnings of the bankless podcast we were so excited about D5 pulse that was awesome and we hit 10 billion locked in defy the big Day the biggest moment of Celebration was 1 billion locked in D5 right yeah oh my God there’s one billion lockers yeah that’s when the million turned it’s when the M turned into a b and all the eth people just had an absolute blast on Twitter that day well this was was this Back in like uh 2020.19 early 20 2019 early this was before defy summer yeah this was before anyone thought D5 was a thing right it was like we barely had the term it was such a niche and we hit a billion for the first time wow incredible now we’ve Got like almost 10 times that right on layer twos dude we’re old man we are old crypto we’re gonna have to Rebrand this to crypto Grandpa’s like that’s what we’re becoming here you remember that day on Twitter yeah I can barely remember was it 10 billion or one a16z also put Out their annual report which I always enjoy it’s a 2023 state of crypto report David what are some of the takeaways from you in this report I remember seeing a report this report and reports like it back in the 2018-2020 era and is one like one of these things that these what these Reports did for me was like help me stay convicted during the bear Market I think the biggest takeaway is developers are so sticky developers don’t leave they go up in Bull markets and then they stay flat in Bear markets actually I do see a little bit down downwards Trend but We’ll we’ll ignore that I mean it’s pretty much flat though like I I think the point is some leave but like look you’re you’re still at the um you know late 2021 March in terms of active developers building on crypto so it’s just gone down a smidge but like It’s it’s hit sort of a you know a stable point it’s probably gonna go up in the in the coming months yeah so since October September of 2021 we have the same amount of developers and this is really just how you grow utility how you grow fundamentals uh so I always Like seeing the developer numbers um nft volume still good uh of course it hit an absolute crazy high during the nft Mania but nft volume is like not anywhere close to zero and starting to see like much more organic signs of life that one was very big Um uh let’s see layer twos there was a section here on layer twos uh and then also there’s a decent amount of focus on just the crypto perception in the outside world uh which of course isn’t totally great um uh but uh and also talked about the Different uh countries uh us is losing its lead in web 3 it should come as no shock to anyone here we are scheduling right now with somebody from a16c crypto to come and walk us through this detailed report so we will have more on that next week yeah Um that’s really good I mean just to put some numbers around the active developers 30k developers contributed to or built on cryptos that’s 30 000 and that’s a steady increase of 60 percent over the last three years um so pretty impressive and yeah that point about the US leading it’s losing Its lead on web3 that was actually like that’s killer to me uh between uh 2018 and 2022 the proportion of crypto developers based in the US versus the rest of the world fell 26 and I think that is because U.S Regulators are driving talent to other locations all Right somewhere else yeah I mean I I think not good there and you were just mentioning surveys David so this is from the Pew Research Center majority of Americans aren’t confident in the safety and reliability of cryptocurrency the uh the quote here is among the vast majority of Americans who say they have Heard at least about cryptocurrency that’s 88 so 88 percent of America have heard of cryptocurrency three quarters say they are not confident in cryptocurrency um yet despite this poor standing crypto still pulled better than the US government for us oh my God that’s a great way to follow That up okay majority of Americans aren’t confident in the safety and reliability of cryptocurrency uh I am as much of a crypto Bowl as anyone in this industry can you really blame them because when when you are an outsider and you don’t know the difference between FTX and coinbase and neither did The Insiders of this industry prior to FTX blow up by the way uh you don’t know the difference between ethereum and Terra Luna and again neither did some of the crypto insiders of this industry either uh and so can you really blame them yeah I can’t blame them but that that’s Why I think there’s such a you know an opportunity here just an Arbitrage opportunity like I was telling you on a couple of Roll-Ups ago uh just I own Ethan Bitcoin and I sleep very well at night like in all market conditions and uh you know I think people have invested In all sorts of other things they don’t understand understand what they’ve purchased they bought at the tops due to fomo all sorts of other reasons why they don’t have conviction in this asset class and uh no I I can’t blame them but I do think the antidote is us bringing More utility to the things that we’re building and uh for us to educate so that people understand what they’re actually buying and why um it was a frequent conversation during the bull market where I would I talk about oh I’m in crypto and then people Would ask me like all right so like how much of your net worth in crypto I’m like oh uh 100 what how are you are you worried it’s gonna then the inevitable question is like but what if it just goes to zero and I it just I feel like Like a dagger going through my heart because I’m not invested in Terra Luna I’m invested in ether ether’s not going to zero and they think that it could go to zero and that is that information asymmetry it sounds the same because they’ve heard somebody who is who’s Shilling hex or Shilling Luna or Something and they say the exact same words that you say right you know Luna’s not going to zero hex ain’t going to zero it’s going to the Moon they can’t tell the difference they don’t know why they don’t have that conception yeah the conviction it takes time so uh we have To just be patient David what do we have coming up next coming up next we got to talk about ethereum withdrawals uh the chappella hard Fork went live last night people are withdrawing their ether stakers are withdrawing their ether Kraken is withdrawing a ton of ether so Is coinbase as well so we’re going to talk about all about the chappella upgrade uh and then after that I fill Ryan in with all of the drama around arbitrim Dao um and then what else FTX recovers 7.3 billion dollars in assets and has started discussions about potentially Restarting the exchange no yep uh all of that and more as soon as we talk about some of these fantastic sponsors that make this show possible especially Kraken our preferred exchange for 2023 so if you are feeling unsure about your crypto exchange perhaps go sign up with Kraken who’s been here for 12 years and I can only assume we’ll be here for as many years as you are bankless listener here we go Kraken has been a leader in the crypto industry for the last 12 years dedicated to accelerating the global adoption of crypto Kraken puts an Emphasis on security transparency and client support which is why over 9 million clients have come to love kraken’s products whether you’re a beginner or a pro the Kraken ux is simple intuitive and frictionless making the kraken app a great place for all to get involved and learn 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staking features for ethereum and polygon but that’s just staking Phantom is also the best home for your nfts Phantom has a complete set of features to optimize your nft experience Pin your favorites hide your uglies burn the spam and also manage your nft sale listings from inside the wallet Phantom is of course a multi-chain wallet but it makes chain management easy displaying your transactions in a human readable format automatic warnings for malicious transactions or phishing websites Phantom has already saved over 20 000 users from getting scammed or hacked so get on the Phantom waitlist and be one of the first to access the multi-chain beta there’s a link in the show notes or you can go to Phantom dot app waitlist to get access in late February the big Ethereum upgrade we’ve been waiting for we can now withdraw eth any eat that we have staked for the first time that just happened late Wednesday evening at least on Eastern time it’s called chappella withdrawals have been enabled David what are we looking at on screen what just Happened uh we are looking at one of the ethereum clients doing their classic asici art how do you pronounce it asici art Asis yeah I don’t know anyways uh so as when the merge happened and was successful there was this cute little actually I think it’s like a snail what Is this animal no it’s an owl it’s an owl excuse me uh withdrawals are learning basically um uh and so withdrawals have been enabled why this is so significant obviously is that if you are an ether Staker it’s always been a one-way Street which is fundamentally unsustainable for Blockchain security the only reason why people have been going this way and staking their ether in this one-way fashion is because they’ve been trusting that eventually at some point in time they will be able to withdraw because that’s what they are hoping would happen it happened so now the full loop is now Available to do for anyone and what do I mean by that is that you can take your ether that’s in defy or wherever or on coinbase or in your self-custody wallet you can go and stake it and then you can withdraw it the same day you could do That if you wanted to if it sounds like a simple thing when you put it like that though right it really you’ve never had this it’s always been like a one-way flow yeah and now it can go both ways and you could deposit it up like this Why do they divide it up like this ah right why did it why did we not do enable withdrawals on like the moment of the merge yeah because the merge was just optimal for the maximum amount of Simplicity merch was a pretty big deal we didn’t want to overdo anything and so Because withdraws was just one more step then they took it out so that they could just keep it maximally simple and so the uh the proof of stake ethereum the beacon chain plus the execution layer has been operating when did when did we merge last September September yeah yeah And so it’s been humming along seven months and so uh they now did the withdrawal hard Fork so now you can withdraw your eater so there were a lot of questions coming into this like one question which is very interesting David and we had the whole discussion with Justin Drake and and Tim Bako and and Anthony sassano we never once posed the question of like uh so is this gonna work guys I think the Assumption was the hard Fork would be successful just because the last whole bunch have been successful because the merge went so Flawlessly and this was lower complexity than that and so we didn’t even ask that question needless to say it was successful but there are some other questions going into this event such as what would happen to each price would there be a run on all of the staked eth And everyone who had their eth locked up and staking 18 million Supply worth which is how much David 18 million times the price of eth what does that equal that is a whopping 36 billion dollars so 36 billion dollars is now able to be withdrawn and markets sold and ether’s Totally going to zero that’s not what happened because we actually instead uh pumped to 100 post uh both withdrawals The Ether Bitcoin ratio which I know I focus on a lot went from like .063 to .066 and so the people that have claimed that this is bearish For ether are slowly receding some are still holding fast that saying like the withdrawals happens over the selling pressure happens over the next five to seven days which is actually technically true um because there’s a queue right there’s a queue yes so a maximum amount of 1800 ish validators per day can either Deposit or withdraw and so 1800 times 32 times 2000 is a 115 million dollars at current ether prices can be deposited or withdrawn inside of a 24-hour period because there is a restriction there is a bottleneck for ether going between being staked or being unstaked why is That the case because we don’t want to have ethereum security being volatile and so this bottleneck constrains the supply of security to the ethereum network just make sure that like these dumb Apes that are like operating on top of it don’t do anything too stupid and Circuit breaker ish and so it’s a it’s a yeah like it’s it’s a conductor uh yes it’s a transistor it’s a transistor that’s what it is I don’t know what it is Danny Ryan is really excited about this what’s his tweet saying proof of Stake took a bit of time but the loop is finally complete happy chappella happy with draws congrats well done Danny if you want to scroll down and just get this awesome awesome GIF of Danny Ryan just saying thank you thank you Danny we appreciate your service yeah uh and so Here’s a take also from Danny Danny says withdrawals is a great time to catalyze a redistribution of stake amongst pools for a more secure ethereum yes just like Staker succeeded in making ethereum more resilient by switching consensus clients from majority consensus clients to minority consensus clients we can do so At chappella for pools and so what Danny’s saying is staking as a service providers like Lido he’s saying like hey if you are staking with a very majority pool uh perhaps it’s time to withdraw your ether from the majority pool and distribute it to a minority pool to help Ethereum be decentralized that is or be a solo Staker or be a solo Staker which is now something that you can do and if you decide to rage quit you can Rage Quit because that’s what we just enabled yeah you’re not locked up um it does seem like a better Environment for solo stickers there was a little bit of suspense I think yeah I think you experienced this first hand in the hard Fork I I was laughing earlier about how we just expected the hard Fork would work of course those are probably the moments where you at least have to When everyone’s expecting a hard Fork to work that’s when you should be the most worried bruh so what happened here what are we looking at so I went to watching the chappella hard Fork upgrade I went to my first in real life uh ethereum people meet up to all watch the hard Fork together to celebrate the hard Fork that was totally going to be a complete success and no one thought otherwise so we had this website pulled up on the screen and the website would show you the blocks inside of an Epoch and so every six seconds a block would turn Green and then we would see the block number of the Chappelle hard Fort come and so like we’re not one hour away 30 minutes away 15 minutes away there’s a live stream and so this is a picture that was taken of vitalik’s answering some questions on the live stream uh and So we were watching the blocks come and then you see the block for the the chappella Hartford and so the blocks likes uh the way that it works is that there’s I think 64 blocks each take six seconds so you watch it go across and turns green it Turns green and turns green and then once a row of 64 all turns green the most recent row of blocks gets Justified and sometimes is that called that’s an Epoch yes right and so um sometimes you miss a block and that’s totally fine because ethereum is anti-fragile uh it’s Just the block is red and whoever is the validator just doesn’t get the reward for that block like boohoo time goes on it’s a problem when 66 of blocks are only green and 33 of blocks are red or missed or whatever that’s a problem um and so because the ethereum Blockchain is good uh every single block turns green uh and then and so then when one row of blocks hit 66 or above it gets Justified and then it gets finalized the next time another row of 64 blocks gets Justified so like you know it’s a blockchain this is how Blocking Works uh and so we’re watching the chappella uh uh blocks come in uh then we hit the chappella block you see the withdrawals activated everyone starts cheering but then you see the first four or five blocks turn red and then you get one green one and then you Get like another red one and then you get a few more green ones and I’m like no that you’ve read it the merge had less green blocks than that I know the difference between red and green and those are red and those are not green And you see I see and I’m sitting next to vitalik and I see how like looking at it and I see Tim Baco like looking at it just and we’re watching The Ghost and it’s like okay we get a few more green blocks like they’re the the first bundle Of blocks were like uh a uncharacteristically red uh and then Tim Baco said something along the lines of like yeah there was a bunch of messaging that was actually kind of expected we didn’t really know about that but like okay but then like there were still more Red Blocks dude like I don’t yeah it’s like more red Vox happen I’m like guys and like meanwhile the live stream is like withdrawals are enabled we did it and then vitalik’s like hmm let’s make sure that uh the block finalizes right guys and then I see Tim Baker pull open His laptop and starts typing to people I’m like guys I don’t like what’s going on here and like vitalics and but as as time went on like it got more and more green uh and then uh so then the row filled up pretty heavy red on the left Mostly green on the right the epoch yeah and then the the epoch comes to get Justified and it goes down and we start filling out the next next row and then so that row gets filled out more green blocks are happening I think only two or three Red Blocks so like We’re good and but then that one comes in and that one also justifies but the hard Fork block is not finalized it’s just Justified oh just and so like we have two two Justified blocks not finalized two Justified epochs you mean epochs yes exactly Epoch okay which is One Epoch is a bundle of 64 blocks yeah and like I’m listening to vitalik start to make concern noises and he’s like looking on his phone and I’m like uh uh so metallic like I I know he doesn’t know what’s going on he’s just waiting For more data and it’s like I go uh uh so what’s going on uh meanwhile while the live stream is happening and everyone’s chatting and he goes oh the B can change this being weird and I’m like what does that mean and then we okay X epoch it’s all green everything Finalizes and we’re good to go I’m glad your first viewing event was that fun because that’s the way they should be right you don’t really know they should be suspenseful they shouldn’t go without a hitch everything’s fine right because like this is the simple one what’s going on What what did what was the reason for all of those Red Blocks you find that out later uh I think uh two problems one quick bug with Lighthouse that got fixed pretty quickly one one of the economics prism clients that got fixed pretty quickly and and nothing was the issue The thing is like this is why we have multi-client architecture because yeah that was that would have gone down this is why you had to bring Salon in five clients this is why you have five clients because it projects stuff on us any any blockchain with that has one Single client yeah including Bitcoin including Bitcoin like hard Forks are very nerve-wracking I’m very nerve-wracking okay well we made it we made it okay withdrawals over you what’s this what are we looking at we’ve got some dashboards up here okay so there are a bunch of dashboards if you are Curious to see stats of uh the beacon chain post chappella there’s a bunch of dashboards uh so these uh I don’t know how to pronounce this so I’m just gonna are we up in terms of the amount of is this locked okay this is total amount of Ethon the beacon chain is this stake teeth that’s like 19 million that’s higher than I thought that it would be wow okay where’d that come from I don’t know 161 000 uh Roundup to 162 000 ether has been withdrawn so okay 162 ether’s been withdrawn that’s pretty good amount and So you can scroll down and see that circulating Supply just that green line of ether coming out of the beacon chain so this is like the bear case right this is like all of the eat that’s like locked is being put put into the market except no one’s just no not necessarily Selling it because the price is going up but yeah like ether is net flowing from the beacon chain to the main chain the the defy ecosystem anywhere like not staked basically uh and so the the circulating supply of ether is going up because it’s being unsticked so are we Seeing a big Exodus of staked eth like some of the Bears thought we would obviously eat the price has gone up and I think that’s because we have another uh de-risking event hard Fort behind us which is fantastic so markets responding to that but what about this idea of a a Run on the uh the protocol with eth stakers you know fleeing and exiting are we seeing any early numbers around that yeah so one some of these dashboards are going to be able to put a nice visual behind the withdrawals versus further deposits um so I think it’s either this one or The next one if you keep on scrolling down uh there is absolutely a net outflow of ether as you would expect this is not the hard Fork that enables deposits this is the hard Fork that enables withdrawals so now that withdrawals are happening people are withdrawing their ether Kraken which had To shut down its staking uh platform because of the SEC they’re not going to keep it there they’re going to withdraw it so they are withdrawing a bunch of ether people are withdrawing CB eth from coinbase and so coinbase has a bunch of staked ether being withdrawn and so There is people are starting to squeeze through that 1800 validators per day 1800 times 32 to get to the amount of ether per day so there’s a line so you’ve got to get in line uh that line will clear pretty fast I think in the next like four three four or five days And then all of The Ether that is queuing up to be with Ron will be withdrawn and that’s the status of things now yeah um how about this David this is uh eth waiting for withdrawal yeah this chart um so what are we looking at here yeah So uh Kraken is the set of the line of people looking to withdraw their ethers Kraken his 70 of that withdrawing 551 000 ether which implies something like 750 000 total etherby that’s all in Q right that’s all in queue okay yeah currently being processed right uh and So coinbase is like coming in at a solid 6.5 so and then after that who will be all these centralized service providers which big fan of big fan of well but but um it’s Kraken part of the reason why Kraken is withdrawing so much is because uh the Gensler band Hammer has exactly Uh like they have to basically discontinue staking services in the United States and so you have to imagine a large portion of the Kraken is is as a result of this right but overall we’re not seeing this Mass Exodus of the staked eth are we it’s just kind of well So we’re hitting the upper limit like we are act we are seeing the amount the fastest withdrawal Pace that you could see it’s just that is it being sold is it being deposited again in a different service provider is it being sent to defy we don’t really know uh what what We can actually assume is it’s not being sold because the ether price is up yeah these are these are some metrics we’re going to be looking at in the and I think the weeks to come is because I also think in addition to all of the withdrawals that we see we’re going to Look at a week from now and see how many deposits new inflows as a result of this disk de-risking event we’ll see and I wonder if that if the number is going to be like over uh when we started or above like Justin Drake’s prediction is basically maybe a small dip but pretty Much flat through this entire event and then we’ll resume The Climb upward on a linear uh path to more and more eth stake so from 18 million to 20 million to Beyond he thinks and we might get as high as like 30 million or a little bit Above that is kind of his uh his take on the final resting place so we’ll see uh in the weeks to come as you can see on that last dashboard uh the staking apy has increased by six percent point six percent and that’s because fewer validators staking API goes up yeah it’s Also worth noting there are two ways to withdraw you can do a skim with draw which just withdraws everything above 32 ether and a large supply of the withdrawn ether in the queue is people just withdrawing their rewards not with withdrawing their prints as a skim withdrawal people call them a partial withdrawals Withdrawing the rewards you’re not just disbanding the the validator itself right yeah and so a full exit which is when you withdraw 32 ether is what Kraken is doing and partially a coinbase as well um but most people are just claiming their Rewards very cool Um I think I’m going to be staking more in the in the weeks and months to come now is the time I’ve been sort of waiting for this moment um some of the core devs celebrating as well David this is uh Peter from the game yes yeah and If you want to learn everything there is to know about chappella and what happens next uh you know who put out a report uh that’s US bank closes you know who uh and so bankers.com how chappella pushes ethereum forward if you just want to go further deeper into the subject all Right David you got to get me up to speed real quick on this uh arbitrim thing so um I think there was a lot of anger last week from members of the Arboretum community and other communities who wanted to pile on to this about arboretum’s Foundation I was following This at high level I know you and Anthony covered it on the on the last roll up a little bit why don’t you get me up to speed on what happened and then let’s talk about what happened this week which was there was a new proposal that was basically saying in this arbitrine Proposal 1.05 that the foundation should return all of those funds 700 million ARB tokens back to the Dow that’s a new Foundation that came into play and I believe it’s being voted on right now but just tell me what happened while I was out yeah so the first ever snapshot Vote for arbitrum was a ratification of AIP Arbitrage Improvement proposal one um it turns out the community decided to vote no against it because the foundation was was to receive 700 million 750 million ARB tokens about a little bit over a billion dollars and the community voted no but then Arboretum was like Um this was just a oh this was not uh this is just a ratification this is not a vote this is this vote doesn’t matter because the way that AIP is is the way that aip1 is going to go because that’s how that’s how it’s going to be and so The Dow was like well what does our vote even matter we vote you guys put this thing up for a snapshot vote we voted no but it’s going through anyways W what the hell so like the conclusion that I have is that this was a major just calms Miscommunication a major comms f up by arbitrum they kind of just assumed that people would vote for this because why wouldn’t you want to give a bunch of money to the debt or to the foundation when the foundation has the best interests of arbitrum at their heart Which is an assumption and I will totally say I agree that that’s assumption maybe the Dao is like f the foundation give us the tokens we’ll decide what to do with them but because of legal constraints that are very significant for the arbitrum team and The way that these things get set up and also just because of the foundation can be a more more centralized perhaps more effective entity than a distributed decentralized Dao people like men the opportunity was like yeah just give the tokens to the foundation well to me doesn’t this all hinge upon whether like Arbitrim had already made this decision beforehand and was like had already kind of communicated that to the community and had put this proposal out as a snapshot vote and saying hey you could vote for this but it doesn’t really matter because we’ve actually already made the decision as part of initial Distribution that would be like like one one um one way this actually happened the other way that it could have happened is if they put it out to vote uh and they like they had meant for the community to vote it but they didn’t like the outcome of that vote and so They were like no just kidding wasn’t an actual vote this time I mean the difference between the two is is pretty um a pretty big deal in my mind and kind of like would inform me on on uh who who was kind of the the good actor in this Case yeah uh that’s actually a really good point that I actually haven’t considered the fact that like but I’m I’m uh just because my memory doesn’t work to that level of granular detail I’m pretty sure in the AIP and in in blog posts they said like this is what’s Going to happen also vote on it um if that’s the case they shouldn’t have put the vote out and that that’s kind of caused this whole confusion okay so what what happened this week There’s a new AIP proposal that is a new proposal that says give the money back to the Dow and Then resubmit aip1 and the Dow will execute the transfer of the funds not you guys and so that proposal was placed forward to say like showa the Dow was as a voice as the collective the Dow was like show us that we have the power like Do it’s like show us that we can do this so how is that vote going well that vote just was voted against it and so uh 108 million ARB tokens 83 to 15 voted against like none of this just don’t like not even bother it is what it is Let’s move on is the way that the Dow has collectively voted I bet you there’s probably some conversations that’s like large whales voted against it and maybe retail voted for it but overall as an airdrop receiver I voted against this because I I think this thing is Mostly just drama and I got Flack for that take by the way of saying that this why’d you get flagged what are people like so um one thing that’s interesting about a dow vote is we’ve we’ve made this point before we’ve had hacuan we talked about kind of the faults and Dows And all of these things is there’s no like legal obligation here there’s no like settlement layer to ratify a dow vote and for kind of arbitrim the company or any of the other arbitrary stakeholders to actually like carry that vote forward it’s almost like a gigantic social signal if you will but there’s Not like anything close to shareholder rights which is sort of settled in a in a U.S court system so as part of that is um like what what does a dow vote actually entitle you to and as a as a ARB token holder like is this all window dressing Is governance kind of window dressing or do you actually have rights and I do think that is a valid concern but it’s not just a concern for arbitrim it’s a concern for all um any sort of squishy governance that can’t be settled on chain of which like Most Dows have this don’t they yeah I do think this is a bunch of window dressing what my frustration is that the Inception the initialization the boot loading of a foundation and a Dao how that exists how that comes to be is an exceptional moment and exceptional it warrants exceptional circumstances Because of Gary Gensler and jail time and fines and stuff because of that reason and so we think there should be a Grace window particularly the first initialization the first creation of the whole system should actually be outside of Dow governance it should because of efficiency Capital efficiency but it has Sufficiency it just has to be though it also has to be that way right and so then every other proposal after that should have the full faith and might of the Dao behind it but the initialization is a special circumstance that we need to have some sort of Grace David just For you want to give him a mulligan for just this one time but if they do it again then right then you’d have a bigger it live in production then let’s get the pitchforks I see look I don’t have a real strong take on it now that I’ve heard like all of these sides I just um we probably didn’t have too much to talk about last week and so we were really focused on this this week but here’s a take from Eric Wall um it’s a lot but could you summarize what his Take is on this whole ordeal yeah is it basically a summary of what we saw said just uh so far is basically there’s this interesting proposal that’s out there that says hey give it back to the Dow it’s and it’s basically a summary of what we’ve just talked about Eric wall Says as a delegate I control basically half a million ARB tokens and I will probably vote uh not vote against it even though it worries me a great deal to see the arbitrim foundation in such a risky seat and despite knowing how important their work is to make sure That Arboretum and prospers and stays competitive with other layer twos with foundation with functional foundations and so Eric wall is like balancing he’s like well he’s a big delegate he understands the value of the foundation but he’s not going to vote against it because he wants to see the trial of gov Play out but the thing didn’t pass anyways all right David uh so we’ve covered chappella we’ve covered arbitrim what’s coming up next coming up next the last and final update on Euler I actually did say that last week but this is because there’s one last step which Is people get their money back and then there’s no more conversation about it uh so there’s that uh FTX recover 7.3 billion in assets and has just started discussions about how to restart the exchange we will discuss whether we even want that or not and bankless has its Brand new product update the token Hub your brand new hub for tokens if those title wasn’t descriptive enough just in case you want to lose extra money this cycle a brand new token up for Citizens so all this and more as soon as we get to some of these fantastic sponsors that Make this show possible learning about crypto is hard until now introducing metamask learn an open educational platform about crypto web 3 self-custody wallet management and all the other topics needed to onboard people into this crazy world of crypto metamask learn is an interactive platform with each lesson offering a simulation for The task at hand giving you actual practical experience for navigating web 3.the purpose of metamask learn is to teach people the basics of self-custody and wallet Security in a safe environment and while metamask learn always takes the time to Define web 3 specific vocabulary it is still a Jargon-free experience for the crypto curious user friendly not scary metamask learn is available in 10 languages with more to be added soon and it’s meant to cater to a global web3 audience so are you tired of having to explain crypto Concepts to your friends go to learn.menimask.io and add metamask learn To your guides to get onboarded into the world of web3 you know uniswap as the world’s largest decks with over 1.4 trillion dollars in trading volume but it’s so much more uniswap Labs builds products that lets you buy sell and use your self-custody digital Assets in a Safe simple and secure way uniswap can never take control or misuse your funds the bankless way with uniswap you can go Direct to defy and buy crypto with your card or bank account on the ethereum layer 1 or layer 2’s you can also swap tokens at the best possible prices on Uniswap.org and you can also find the lowest floor price and trade nfts across more than seven different marketplaces with uniswap’s nft aggregator and coming soon you’ll be able to self-custody your assets with uniswap’s new mobile wallet so go bankless with one of the most trusted names in D5 by going to Uniswap.org today to buy sell or swap tokens and nfts all right we’re back with uh Euler so it sounds like Euler got all of its funds from the hacker back which seems like a miracle and that’s amazing but now there’s a process for which um people who had deposited funds in Euler have to redeem and just an extra process is is that what we’re talking about right now yeah so because Euler is a money market when people deposit money into oil or they have a position uh that position was rugged from them by the attacker um I guess that’s not the appropriate Way to use rugged uh but the exploiter stole the money but people had it in positions and so who gets how much money back had to do these calculations to make sure who gets you can’t you can’t just put the money back into the vaults Got it uh and so Euler has run the computations done the math and created a claims page so it’s great news though right you are an oil or victim there’s now a button that you can go press and you can press that button you can get Your money back so go press the button do we know anything about this this uh attacker why his name’s Jacob he says his name’s Jacob right Jacob yeah he just but basically we don’t know motives we don’t know who this individual is they stole the money and then they said They were sorry and then returned the money is basically the full circuit here yeah well isn’t that great I’m going to assume that uh law enforcement put some heavy pressure on this person there was probably some pressure to do that I wonder I wonder what this person is Doing right now can you just be like oops accident it was just a prank bro and like and then you’re fine you’re no longer in trouble with law enforcement is that how this works I don’t know how this works Jacob would have to tell us for some reason I’m just picturing like Some high schooler in his like Mom’s house and he’s like oh I didn’t think this would work the police showed up at my house wow that’s crazy um all right Bitcoin stuff light spark is a competition for the lightning Network this is David Marcus who formerly ran the DM program and which is Called Libra DM at Facebook one of the original Facebook um not a Founder but early to Facebook certainly David Marcus very excited about uh the lightning Network in Bitcoin he says he’s thrilled to unveil the light spark platform today we believe the internet badly needs an open Payment protocol one that works 24 7 settles in near real time this is basically a startup an application built to expand the lightning to the masses what’s your take on this uh it is probably the biggest uh effort to build out lightning infrastructure from somebody who’s already done Something very big in this world that I’ve seen is this the one that is different well I forgot to mention uh David Marcus was was also a former PayPal president so he knows a thing or two about transactions and his comment was much of Lightning’s potentials being held back by the clunky and Time-consuming process of node management engaging with the lightning Network he’s like the ux is bad so I’m going to fix that one thing that’s interesting at least my take on this is I agree with him the ux is bad um I don’t think that will solve the Problem because I think the ux Still Remains bad as long as you have Bitcoin as the unit of account because people don’t want to spend their Bitcoin I don’t want to spend my eth either I just don’t I want to spend stable coins I I Spend my die I spend my usdc and I hold my eth and it’s people pay me in ether but I pay them in usdc exactly I don’t and that’s the thing that Bitcoin Advocates have been preaching for a very long time and so I don’t know if you can Get over that from a ux uh perspective you know particularly lead to the masses maybe maybe if you had hyper bitcoinization large nation states will do settlement between each other in Bitcoin like Bitcoin transactions but I don’t know um hold your Bitcoin sell your Fiat uh That’s the ux problem in my opinion but it’s great to see more development on uh on lightning and certainly on bitcoin David more news on FDX bankrupt FDX has recovered 7.3 billion in assets and here’s the here’s the kicker and is considering relaunching the exchange in Q2 Okay what what’s your take on this uh just to make it really clear Q2 is now it’s this it’s this quarter why so 7.3 part of that number has come from the rise of crypto asset prices uh since FTX right and so that number is going up Because Bitcoin and ether and Solana and these other tokens are going up in price if you wait long enough everyone will be amazing but but not actually because a lot of the people lost Bitcoins and so Bitcoin denomination has not gone up no uh anyways um okay so uh Total Recovery of these Assets would have been 6.2 uh billion dollars from crypto prices in November of 2022 so we’ve gained 1.1 billion dollars thanks to crypto asset appreciation uh in legal proceedings it was discussed the potential to start restart the crypto Exchange they in these legal proceedings however it said that fgx would need significant Capital to restart its crypto exchange because the existing customer interface had little connection to the movement of money behind the scenes the lawyer said remember Ryan a very big topic of conversation was how good of a product and how fast it was it was so good and Fast the US is really makes a ton of sense that this thing that was a fraud behind the scenes had this very polished and Sleek front end because it didn’t matter you didn’t have to connect those the numbers weren’t real they weren’t real just generated numbers it wasn’t Even connected to like the back end what was actually happening well that is really makes Sam Beekman Freed’s Excel docs of uh accounting just hit a little bit differently wow let me ask you this though David um FTX say it relaunches would you ever use the new FTX Exchange I never even used the old one dude okay but like you probably thought about it yeah I probably thought about it um I’m just saying I don’t need any more centralized exchanges but like who is going to use maybe not you who is going to use the FTX exchange are people Just going to be like oh it’s rebranded it’s Under New Management FTX 2.0 sounds great let me put all of my money in this thing why don’t you just let it die guys this is a bankruptcy proceeding I don’t understand a need to or an interest I guess shareholders are probably like Duty yeah relaunched let’s mint a token and see if we can get some of our money back that’s probably what it is but like I don’t know that this is a consumer product that will ever work again okay so all of the exchanges out there that have been proven to be good I I know the names of the of these leaders Brian Armstrong Jesse Powell and CZ and who is going to lead FTX and have somebody rise to the shoulders of these other Giants and oh it can actually like command trust who’s gonna do that who’s Gonna step up to the plate no one Jamie Diamond Jamie Diamond purchases FDX relaunches an exchange there you go we’re done we’re done here I know the 2022 simulation was pretty crazy well I’m just surprised they’re actually reconsidering launching this so that’s uh that was not on my list Um also not on my list Japan doing big things in crypto appearing more crypto friendly it seems we’ve got uh an article written in Japanese so I cannot read this uh David but um the next link is what you want Ryan okay so Japan’s liberal Democratic party and it’s web 3 Project team release a white paper to push crypto friendly initiatives in the country uh this is part of prime minister fumio uh kishiadas God I’m such a not bad white person uh strategy of promoting technology a project they’ve called cool Japan they have a project called the school Japan that includes web 3 initiation when do we get cool America yeah we do not get cool America we got 90 pages of fun in a Biden um Biden Administration economic report on crypto and Japan gets cool Japan yeah it’s not not very cool of us uh a quote from uh this white Paper after crypto winter Japan may be the first to welcome spring uh in order to talk about blockchain related businesses in Japan is necessary to develop an environment that facilitates investment in tokens so here’s some some high level details uh they want to see tokens as fundraising tools for web3 Startups instead of speculative assets they are looking at tax reforms that favor cryptocurrencies which should be considered at alongside existing accounting tools and also Dows that can be established in the same way that llc’s can be established wow cool Japan that is cool Japan uh I’m just I’m just jealous but I’m Very excited that Japan is doing this this is this is very good and it’s clearly there’s some land grab of like okay America’s not going to take lead of this then we’ll jump in because we’re also seeing this in Hong Kong Hong Kong’s Finance Chief pushes for web 3 Adoption this is Hong Kong’s top Financial boss saying that now is the time for the economy to push web 3 adoption they want to be basically the the Fiat banking center for crypto and doing that in Japan so um again this is more indication that uh America’s got to catch up Um so does Europe it seems like for for that matter Brian can you scroll down a little less a little bit and then see the permission list 2023 you want to just go ahead and click the join us in Austin Texas link right there because permissionless in 2023 September 11th Through 13th Dave Dowell has officially challenged Ben Dow to a dodgeball tournament this has nothing to do with Japan or Hong Kong here I have moved on I have completely moved on I am doing my best to convince Mike and Jason at blockworks to carve out a part of permissionless In the Event Center to host a dodgeball tournament and I want all of the rivalries to to come forth I want optimism versus Arboretum I want ZK sync versus polygon I want Ben Dao versus Dave Dow I want a16z crypto versus Paradigm I want people to assemble their P their squads can we do crypto natives versus Regulators please well The Regulators aren’t coming they’re not invited that well I get easy win then anyways uh so if you are interested in your dodgeball tournament and want to help me uh meme this into existence so That Jason and Mike are compelled to uh co-host a dodgeball a part of uh uh permissionless then go get your permissions ticket if you’re a Bankwest citizen you get 30 off which is like hundreds of dollars because the tickets go up in price every two weeks so Link In the show notes to get your permissionless 2023 ticket crypto is tribal enough David I think we can get our tribal rage out on the Dodge dodgeball courts here from dodgeball to token Hub this is it this is the bank list token Hub it is now available for Bankless Citizens if you are not a citizen you should definitely upgrade you get so much uh in your citizen package including a premium RSS feed and also now the token Hub David have you checked this out man this is um neutral bearish bullish positions on uh 28 different tokens from the bankless Analyst team it gives our rating we’re putting it out there not Financial advice entertainment only and this is what some of the best analysts that Dave and I have found are actually uh rating these tokens and evaluate them evaluating them based on some catalysts so if you’re like oh you know Boomer David and Ryan only talk about eth and some of the core assets and all the blue chips and it’s no not exciting enough for me let me tell you we go down the stack in the token Hub and it’s not our opinions it’s our analyst opinions But did you also know you can Mark some of these as your favorites yeah that’s in these tokens who’s your favorites and also let me ask you like uniswap are you what do you think about uniswap uni token bullish neutral or bearish give me a rating um I am just the answer is Obviously bullish why am I bullish because it is the it has a monopoly on volume it is wherever it goes because uniswab it’s on zksync it’s on polygon optimism arbitrum it’s on every layer too it’s always a dominant exchange so even though there’s no fee switch that’s turned on You just gotta turn it on so I’m bullish you can see what the other citizens think so 41 are also bullish on uniswap but 47 are neutral and 12 are bearish uh Lots on pack here you guys can find it at bankless.com tools slash token hyphen Hub or just go to bankless.com become a citizen and you’ll get connected right into that um explicitly our ratings these neutral bullish bearish yes ratings are versus ether oh that’s a very important point that is important because uh eat this money and that’s how we denominate our Portfolios it really makes the game a little harder when you’re dishing out token ratings and you’re bullish because it’s not bullish relative to Fiat that’s easy easy we’re going hard mode here bullish relative to eth it’s gonna be tough uh yeah now we can lose money Together in new ways if you want a token to be rated by the token ratings on the token Hub you can say so inside of the bankless nation Discord which you can only get to if you’re a bank citizen you could just say what whatever token you Want and uh Ben and team will go you can just yell it don’t encourage that did you know um metamask by the way our friends and sponsors they have just launched a really cool feature on their portfolio dap this is the part of metamask that adds new features even faster than the Main wallet you can find that in metamask at portfolio.medamask.io they have this Buy Tab now where you can really easily buy directly from Fiat by crypto apps it’s all sorts of difference yeah ACH transfers Bank transfers all sorts of different um uh like buying mechanisms so you can Fiat on board directly through your wallet which is really cool it’s great to see new ways to onboard and they’ve added that there so there’ll be a link in the show notes for you with that feature and David did you know this okay I think you did know this but um you Know one thing that can happen over time is if you’re doing a lot with your eth wallet you approve all of these various smart contracts and some of the security around these smart contracts are the things that you do in web 2 all the crazy dgen activities you do sometimes Smart contracts go bad and so you may have opened the door but not shut the door you may have approved access to your keys to do some specific function in a wallet and forgotten to revoke etherscan actually has a tool where you can look at your address and you can Revoke access it will tell you what you’ve given access to specifically rather than just like not not understanding it’ll tell you like you’ve given access to all of these contracts do you trust these contracts do you know who these people are I didn’t know etherscan was doing this and I’ve had This for a while I didn’t know I was using another tool for this but seeing etherscan a tool I trust and already use like every day do this is pretty awesome so that’s probably a security tip like go through some of your addresses that you use for Degen activity and make sure You are revoking access to the things that you don’t trust why leave access open there’s actually an event earlier this week that happened in sushi I believe where some people got their wallet strained because they did not revoke access well they they gave access to a router That was exploited and then people had to go revoke access because that router was proven to be bad like other contracts like the the wrapped ether contract you’re never gonna have to worry about that one that thing is rock solid uh the die contract like generally rock solid uh some things without names That you can’t remember why you gave it permissions in the first place maybe you want to focus that one yeah you want to revoke that one all right David uh what do we got coming up next coming up next we’ve got questions from the bank of This nation as well as from takes of the week followed up by of course what Ryan and I are bullish on and lastly but not least the meme of the week because that’s how we end the show but first a moment to talk about some of these fantastic sponsors that make the show Possible arbitrim1 is pioneering the world of secure ethereum scalability and is continuing to accelerate the web 3 landscape hundreds of projects have already deployed on arbitrum 1 producing flourishing defy and nft ecosystems with a recent addition of arbitrum Nova gaming and social dapps like Reddit are also now calling arbitrim home both Arbitrum 1 and Nova leverage the security and decentralization of ethereum and provide a builder experience that’s intuitive familiar and fully evm compatible on arbitrum both Builders and users will experience faster transaction speeds with significantly lower gas fees with arboretum’s recent migration to Arbiter Nitro it’s also now 10 times faster than Before visit arbitrim.io where you can join the community dive into the developer docs Bridge your assets and start building your first app with arbitrum experience web 3 development the way it was meant to be secure fast cheap and friction free bankless is launching the bankless token Hub at Bankless we’ve been studying the crypto markets ever since 2017 into all of our research has led us to this the token Hub you’re a One-Stop shop for Alpha to help you navigate through the crypto markets have you ever wished for a trusted resource that would share their thoughts ratings and their opinions About tokens boy do we have the product for you the bankless token Hub is where we provide bankless citizens with the Alpha and the hottest tokens in crypto we do the research so you don’t have to the bank list token Hub includes the token ratings where our team shares Their research and outlook on the hottest tokens in crypto also the token Hub includes bankless bags our own internal investment Club bankless bags is where we put our money where our mouth is and for the bankless power user out there you can access the analyst team 24 7 inside the bankless nation Discord you can ask them questions and learn from a group of people deep in the weeds of crypto investing the last feature of the token Hub is the ability to upvote or downvote token ratings The bankless Token Hub lets you learn from your fellow citizens to rate these Tokens yourselves the bank list token Hub is launching right now and has already been beta tested by your fellow bankless citizens so stay stay tuned in the bankless Discord for updates and if you are not a bankless citizen well you better sign up if you want access Because this corner of Bank list is available for Citizens only I’ll see you in the Discord back with questions from the week this one from Oren I’m going to read this the whole question David because there’s a story associated with this after 14 months I finally feel like I’m encrypted for real I lost 1.1 eth to a scam it was my own fault I clicked a link from a trustworthy Source without reading the accompanying text in opaquely worded confirmation letter and I’m down 1.6 K pounds why didn’t I read the text properly I was mentally Juggling soothing a grizzling baby work emails and the Myriad other daily life tasks that take up brain space all the while trying to stay up to date with opportunities in crypto it made me wonder when and how we’re going to get crypto to a stage where it Can be trusted by people who can’t always Focus their whole attention on it the Casual retail users surely without them the room for growth is an industry is limited I know crypto is risky and I can lose what I put in but having some ass outright steal your fund hit so Differently from taking a punt on a Degen token that goes to zero what are your thoughts on what we can do to combat the constant scams that reinforce the negative view of the industry limit growth and give more ammunition to Elizabeth Warren’s and those like her I Love the roll up it’s been a godsend and keeping us up to date with the industry in the limited time I do get this is a very sincere question from Oren and I um I gotta say I really resonate with um with this like how does a normal person Possibly have time to determine and figure out what’s a scam and what’s not this is certainly the wild west David are we ever going to graduate to something that feels a little more safe like one thing when the Degen tokens go to zero another thing when something Unexpected happens as as it happened to Oren here clicking a link from a trust what he thought was a trustworthy source and then getting a 1.1 each stolen yeah and I’m sad to say I don’t really have a silver bullet here um I think this more or less comes with The territory of self-custody crypto assets we have the power and the responsibility of being able to control our own money um Wells Fargo will never let you send your money to a scam because of how cumbersome it is that scammers don’t even bother to try so thank you Wells Fargo I guess they can also totally confiscate your money Capital controls all those bad things um and so this is just the double-edged sword I would say that is crypto how do we prevent this well one part is of course just education we’re never going To be able to get away get rid of scammers in the way that the traditional Finance world just doesn’t have to deal with scammers because scammers just can’t operate in traditional Finance simultaneously there’s like ways to win in this space because of those same properties right like you get air drops You get to invest in things that you otherwise wouldn’t have gotten to invest in and so like there’s there’s upsides and there’s downsides and now we’re talking about one of the downsides I think sadly another unsatisfactory answer is that like the kids that are raised with this financial system are Going to become extremely fluent in this natively whereas people that are older that have to learn this thing just from top down just because we’re faced uh confronted with this while trying to learn it manually that we are the the more vulnerable people because once upon A time we learned how to do venmo and ACH transfers and all that kind of stuff and we never had to worry about this kind of thing which is why it’s easy to fall victim to it to a trap when you have a trusted Source sends you a link And so the one part is just like it’s just going to take time there’s also Innovation to talk about this is a problem and problems Inspire problem solvers and problem solvers that create useful Solutions get investment to scale those Solutions out to the world and so sadly I don’t really have a silver Bullet here but that’s because there’s ten thousand different answers that are all kind of good and kind of bad uh but when you put them all together we have a solution and sadly it just takes time I you you I I want to Echo you I think You said made many of the points I would have made David with you know kind of competition and and time and Innovation and also upside we are on the frontier this really is the bleeding edge Frontier and um like I think some things that used to be more bleeding edge Frontier are less Frontier so we can look at the past it’s much safer to hold eth in 2023 than it was in in 2016 and to use a multi-sig in 2023 than it was in like 2017 or like to use uniswap right we’ve come a long way and the the way we’ve like the only way That’s happened is is through time and sort of like Lindy um playing over time which means like large amount of value and smart contracts they don’t get hacked over time and sort of risk boils out um so I I do believe we’re just in the wild west right now this is definitely The frontier and um that is bad because there’s risks I think it will get better over time but there’s no Silver Bullet there’s no immediate fix but it also on the on the flip side of that once all the risk is boiled out of the system it Means there’s going to be not very much upside left right so you Warren you’re here in the early stages you just had a like an event happen to you um it’s happened to many in the space um sorry right like deeply like that um these types of things hurt and yet I Think this is a short-term setback because the most fundamental thing is you are here you are on the frontier you’re going to use this as a learning opportunity and you’re exposed to so many more opportunities than the people with their funny their their money in Wells Fargo and the banking system are Going to be they’re not going to receive the air drops they’re not going to buy have the opportunity to buy eth at 2K they’re not going to have the opportunities that you have right now because you know about this stuff so once it becomes less risky it’s also Like the upside is not going to be there anymore and that’s just the trade-off that we’re dealing with yeah uh there we go David we gotta take this week and I think this is going to be the the only take that we talk about because it’s a big one uh he takes two Agendas what what is the first agenda here and then what is the second yeah so these these two takes uh juxtaposed with each other so here we have tremath poly papatia uh polyapatia from the all in podcast uh and he tweets out if you invent a novel drug you need the Government to vet and approve it the FDA before you can commercialize it if you invent a new mode of air travel you need the government to vet and improve it the FAA before you can commercialize it if you create a new security you need the government to vet and improve it the SEC Before you can commercialize it more generally when you create things with broad societal impact positive and negative the government creates a layer of review and approval AI will need such an oversight body the FDA approval process seems to be the most credible and adaptable into a framework to Understand how a model behaves and is counter and it’s counterfactual our political leaders need to get in front of this sooner rather than later and create some sort of oversight before the eventual big avoidable mistakes happen and the Genies are out of the bottle that was the first take let’s go ahead And go to the second take here is Naval much of the innovation in the last few decades was in search social crypto Nai because pure math is the Last unregulated Frontier invite The Regulators in and they’ll freeze Innovation here just as they did in healthcare and energy that’s the other Side of the take Ryan which of these two takes do you like [Laughter] you know I’m going to say the second um I thought jamath’s take he was like if you want to go back to the the other one it’s like the government they’ve got uh they’ve got Securities you gotta get approved You gotta ask permission uh Aviation you gotta ask permission uh drugs you’ve got to ask permission I thought he was setting uh setting up for like we live in a permissioned society it all sucks but then he goes full status and he’s like let’s do it for AI and I’m like What I thought you were going the opposite direction dude I think I think that there is a mistake here in that like so what I think the mistake is there is some a little bit of Truth in the middle but it’s like I’d still more Veer towards Naval because I think the Assumption that chamoth is making this tweet is that um it’s not like the full Liberty like a Super Hyper libertarian Assumption of like we don’t need any institutions the free market will solve everything right it’s like I don’t agree with that but I don’t think that the only regulatory Institution has to come from the nation state from a bureaucracy right I think we can develop other regulatory institutions outside of the FAA and the SEC and the FDA and indeed we are doing that in crypto in various ways right it’s like so I think that there is a Lack of imagination when like there do need to be standards in in Harmony and sort of like institutions in place but they don’t all and coordination apparatus but they don’t all have to come from big government nation state and I think Naval is right on when he says that sort of get quelches Innovation and like puts us further behind um but if if Naval was to go as far as to say like and therefore we don’t need coordination we don’t need um any sort of Institutions yeah right or like regular and it’s sort of just every every person for themselves then that is Sort of a bridge to fall from far from me so I I think what we are doing in crypto is really creating new institutions here and they’re in their protophase and they’re very early but like defy open source code ethereum as an institution that’s more of the Innovation I’d like To see and I think that doesn’t come with the trade-offs where you know you get big G to come in and they just totally swelch the thing and kill all Innovation yeah what do you think about that yeah I think that I think that’s right I think if tremont’s take instead Of saying and we’re going to need that for AI too was instead you can bet that that is coming for AI I would have been like yeah that makes more sense well but would you go as far as to say okay so let me ask you this though David are you Saying that um we don’t need any Regulators we don’t need any like Court like coordinating bodies or institutions um are you just living in sort of a you know a Libertarian anti-establishment um like Utopia Wonderland that doesn’t actually exist I would say that all of our examples of Regulators are in these pendulum of incumbent protecting corruption uh institutions on one side of things versus effective Regulators they’re too far along all of them are too far along on the incumbent protection corruption machines even like the FAA uh FAA probably not that one that one’s more of A niche FDA so I’ve been talking to a ton of um synthetic biology and Longevity researchers and all of them say that the FDA has held back their industries by decades and they just can’t do what they aspire to do because of the FDA it’s like I don’t know first time with the FDA I no you said that yeah you said it correctly but like yeah I I don’t I think every regulatory institution has um gone through the kind of this path some are on the other side of corruption right it’s like I have personally generally neutral to maybe positive Feelings about the FAA for instance yeah FAA we like you guys I mean it’s chill like it is safe right but but maybe that’s just because maybe that’s because I don’t know enough about the airline industry to be like oh they’re blocking all of this Innovation I just don’t know enough about it but I do know an industry is just like flight in general like the SEC man they are screwing up I know a few things abandoned their mission right and the FDA I’m like learning a little bit more about it but it sounds like those in Various um life sciences spaces will say they’re just totally the bed as well yeah um well they say delayed the covet vaccine by like months and so are like I mean chamoth says we need this for that for AI like oh you want a Gary Gensler of AI yeah What would he do like exert power exert control I mean I bet you even leaser would be like they’re not gonna do anything all right uh takes of the week uh what do you bullish on David I am bullish on the future of each staking this e-staking industry okay so with the Chappella upgrade we have the loop correct and so this is like staking 1.0 the staking project is not done but the foundations are set so like you have eat staking you have withdraws you can stake at home it’s only 32 ether uh there is so many more new layers of innovation That come along in this deck to take e-staking from its existing but still primitive state to what we and I have always seen which is the global internet bond market uh and so we got eigenlayer restaking uh we got distributed validator technology we got more competition in the long tail of uh Liquid staking derivative tokens we have interest rate swaps we have all of this other stuff we have Mev capture and proposer Builder separation the the maturation and growth of the eth staking industry is going to be so cool to watch I agree that there’s another point this Is an Anthony sassano to DVT on test Nets and mainnet and in our episode earlier this week I think you actually coined this phrase and I hope it catches on Squad staking Squad thing so yeah you don’t have 32 eth but you want a solo stake grab some friends well it’s not Solar at that point it’s Squad staking it’s Squad staking grab some friends and you make a squad staking unit this is actually possible with some new technology that is here but also early called DVT uh distributed validator uh technology this kind of allows that so I think we’ve just scratched the surface We had to get through withdrawals in order to unleash kind of the next phase of innovation and I also am very excited about uh the future of staking the future of eatstaking in particular um but what else but what else am I bullish on look just ethereum shipping David so we went just um six uh just over six months so I think close to seven closer to seven months from the September hard Fork we got another hard Fork we have withdrawals and I think the next hard Fork is probably I don’t want to put dates on anybody but it’s Probably like another six to eight months away maybe that’s a little optimistic but that’s eip4844 and so at that time we’ll have proof of stake we’ll have cheap layer 2 block space and we’ll have like we already have um ZK EVMS and layer twos are like Blowing up so we have cheap block space we have proof of stake and we have layer two’s firing that is like what ethereum has promised I think and that will be the Fulfillment of the first set of of promises that ethereum really made the big the big core revolutionary promises Yeah that you and I signed up for in like 28 2018.yes it will feel like finally Promises Kept promises fulfilled and uh I’m just excited how how fast ethereum is shipping I think morale has never been never been higher so yeah very cool what do we got from meme of The week meme of the week of the week this is a meme that you gave us uh her this is one of those her me memes it’s her are you religious me and there’s this like child religious looking kid and a white button-down shirt and a tie holding the Bitcoin Standard book have you ever read the Bitcoin standard Ryan of course I have I love the Bitcoin standard book why do you love it I mean style the just like the absolute like safedine is a toxic character the author is a toxic character who has to be blocked on Twitter which is a big shame because like a lot of his ideas huge fan of yeah uh he would turn you away at a book signing because you’re really period okay so I actually have a signed copy of the Bitcoin standard from safety and moose I you not uh CK From Bitcoin media got it for me and it has something in in written in it I can’t remember what it was but CK gave the book to safety and say hey can you sign this for my like my eth head friend and safety and wrote something along the Lines of like Bitcoin Bitcoin will be ready for you when you when you come to it or something like this that’s hilarious there’s a lot of there’s there’s like a lot of cool like the whole topic of like Fiat culture I’m just a huge huge fan of Um I I get it but he he he so I get it and I also enjoyed that book to be honest like I I read it like all the way through I didn’t hate it but I it when you turn it into a holy text right and Like I think is absolutely a holy text well that’s the thing that’s where it’s just it gets weird for me because I see the point of like Fiat culture means kind of like you know uh like the concept of like Fiat art things don’t um we don’t spend as much time on things Anymore it’s all sort of this product of uh he’s got some great underlying points but that’s almost turned into sort of a like a religion or anything Fiat a little bit too religious religion like I kind of consider all blockchains as like these sort of religions but bitcoiners Have taken parts of the Bitcoin Community have taken this way too far anyway that’s uh yeah I laughed out loud when I saw this so we’re sharing that that’s the meaning of the week guys um none of this of course has been Financial advice including the token Hub We really have no idea what tokens are going to go up or down cryptos but as analysts might but maybe it’s still for entertainment value though so was this episode as always and we are headed west is the frontier it’s not for everyone but we’re glad you’re with us On the bank list Journey thanks a lot foreign Bankless Weekly Rollup 2nd Week of April 2023 —— 🚀 TOKEN HUB 🚀 https://www.bankless.com/join?utm_source=YouTube&utm_medium=Intro&utm_campaign=Intro_CTA1 —— BANKLESS SPONSOR TOOLS: ⚖️ ARBITRUM | SCALING ETHEREUM https://bankless.cc/Arbitrum 🐙KRAKEN | MOST-TRUSTED CRYPTO EXCHANGE https://bankless.cc/kraken 🦄UNISWAP | ON-CHAIN MARKETPLACE https://bankless.cc/uniswap 👻 PHANTOM | FRIENDLY MULTICHAIN WALLET https://bankless.cc/phantom-waitlist 🦊METAMASK LEARN | HELPFUL WEB3 RESOURCE https://bankless.cc/MetaMask —— Topics Covered 0:00 Intro 2:45 CryptoTaxCalculator https://bit.ly/3me8nfF 4:45 MARKETS 13:20 Layer 2 Adoption https://l2beat.com/scaling/tvl 16:00 a16z Report https://a16zcrypto.com/content/article/state-of-crypto-report-2023/ 18:40 Trusting Crypto https://www.pewresearch.org/fact-tank/2023/04/10/majority-of-americans-arent-confident-in-the-safety-and-reliability-of-cryptocurrency/ 24:00 Shapella Withdrawals https://twitter.com/etherscan/status/1646281789735047168 28:40 Danny Ryan https://twitter.com/dannyryan/status/1641679529188925442 29:50 Nail-Biter 35:25 ETH Withdrawal Stats https://app.metrika.co/ethereum/dashboard/withdrawals-overview 41:25 Arbitrum Foundation https://twitter.com/arbitrum/status/1642653013062868992 48:30 Eric Wall Take https://twitter.com/ercwl/status/1644819508798865408 52:00 Euler Redemptions https://forum.euler.finance/t/plan-for-redemption-of-euler-funds-v2/947 53:55 Bitcoin Lightspark https://twitter.com/davidmarcus/status/1645849537691676672 56:10 FTX Recovery https://twitter.com/WatcherGuru/status/1646207148244844560 59:45 Japan Crypto https://www.coindesk.com/policy/2023/04/06/japan-releases-web3-white-paper-to-promote-industry-growth-in-the-country/ 1:03:20 Winklevoss Gemini https://archive.ph/iCDGW 1:03:15 🚀 TOKEN HUB 🚀 https://www.bankless.com/join?utm_source=YouTube&utm_medium=Intro&utm_campaign=Intro_CTA1 1:06:00 MetaMask Buy https://twitter.com/MetaMask/status/1645446587131346946 1:06:30 Etherscan Token Approval https://twitter.com/tayvano_/status/1644977491612930048 1:10:50 Questions from the Nation https://www.bankless.com/join?utm_source=YouTube&utm_medium=Intro&utm_campaign=Intro_CTA1 1:18:05 Regulation https://twitter.com/financenewsguy/status/1646116774880989184 1:23:30 What David’s Bullish On https://twitter.com/sassal0x/status/1644543263670685698 1:25:25 What Ryan’s Bullish On MEME of the Week https://crypto247.news/wp-content/uploads/2023/05/trendomatic/unnamed_81.png —- Not financial or tax advice.This channel is strictly educational and is not investment advice or a solicitation to buy or sell any 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