Podcast Summary
This episode delves into the latest developments in the Ethereum ecosystem, including the SEC’s delay of Bitcoin ETF filings, the distribution of Ethereum ownership, and the Ethereum Foundation’s announcement of data collection grants for 2023. The host also discusses the yield on tokens, the future of Builders in the market, and the importance of giving back to the open-source community. The episode concludes with an introduction to “dumb swap,” a decentralized exchange built on the ethscriptions VM using dumb contracts.
Key Takeaways
SEC’s Delay on Bitcoin ETF Filings
- SEC’s Delay: The SEC has delayed the Arc Invest and 21 Shares Bitcoin ETF filings, possibly due to a potential US Government shutdown. This delay is not a denial, and lawmakers are urging the SEC to approve a spot Bitcoin ETF.
- Gary Gensler’s Testimony: Gensler’s testimony suggests that most crypto tokens likely meet the investment contract test, indicating they are likely securities. This shift in language may be due to the SEC’s losses in court cases.
Ethereum Ownership Distribution
- Ethereum Distribution: A significant portion of Ethereum is staked, with Lido being the largest entity. Other entities holding Ethereum include wrapped ETH contracts, centralized exchanges, and ICO wallets. This distributed ownership demonstrates the various use cases and ecosystems built on the Ethereum platform.
- ETH Staking: Despite a decrease in token value, there is still a 5-6% yield. Only 20% of the total ETH supply is currently staked, but ETH is being used in various other ways.
Ethereum Foundation’s Data Collection Grants
- Grant Announcement: The Ethereum Foundation has announced data collection grants for 2023, open to individuals, teams, and organizations working on data-related projects within the Ethereum ecosystem.
Future of Builders in the Market
- Market Share: Block Native’s relayer and Builder have a small market share compared to other providers. The host speculates on the future concentration or centralization of Builders in the market.
- Inclusion Lists: The implementation of inclusion lists shifts power to validators and increases censorship resistance. Ethereum’s long-term roadmap includes Mev burn and PBS to deal with relays and Builders and eliminate negative externalities.
Importance of Giving Back to the Open-Source Community
- Open Source Spirit: The host emphasizes the importance of contributing to the open-source community and not just profiting off of it. Licensing in the crypto ecosystem has been a point of contention, with the spirit of Open Source being about collaboration and contribution rather than monetizing someone else’s code without giving back.
- Dumb Swap: Middle March introduces “dumb swap,” a decentralized exchange built on the ethscriptions VM using dumb contracts. This innovation allows users to swap tokens, provide liquidity, and earn yield without using smart contracts, making it cheaper than traditional decentralized exchanges.
Sentiment Analysis
- Bullish: The host expresses optimism about the distributed nature of Ethereum ownership, the yield on tokens, and the innovation in the DeFi space, particularly the introduction of “dumb swap.”
- Bearish: There is concern about the SEC’s delay on Bitcoin ETF filings and the potential for future concentration or centralization of Builders in the market.
- Neutral: The host maintains a balanced view on the Ethereum Foundation’s data collection grants and the importance of giving back to the open-source community.
