EIP-4444 addresses Ethereum historical rise and allows for short room for gas cap increases.

Related Reading: Paradigm: Challenges and Solutions for Ethereum State rise

Words: Storm Slivkoff, Georgios Konstantopoulos

Compiler: Luffy, Foresight News

History rise growth is currently the biggest bottleneck in Ethereum expansion. Surprisingly, historical rise has become a bigger problem than state rise. Within a few years, historical data will exceed long Ethereum Node storage capacity.

Here's the good news:

• Historical rise is a much easier problem to solve than state rise.
• The solution is already under active development.
• Addressing historical rise will alleviate state rise issues.

In this post, we will continue to look at the Ethereum scaling problem in Part 1 and now turn our attention from state rise to historical rise. Using granular datasets, our goals are to 1) technically understand Ethereum's scaling bottlenecks, and 2) help open the discussion around the optimal solution to Ethereum's gas limits.

What is Historical rise?

History is the collection of all blocks and transactions executed by Ethereum throughout its lifetime, and it is all the data from the Genesis Block to the current Block. Historical growth is the rise of new blocks and new transactions over time.

Figure 1 shows the relationship between historical rise and various protocol metrics and Ethereum Node hardware constraints. Compared to state rise, historical rise are limited by a different set of hardware constraints. Historical rise puts pressure on network IO as new Block and transactions must be transmitted throughout the network. Historical rise can also put pressure on Node storage short, as each Ethereum Node stores a complete copy of history. If the historical rate of rise is fast enough to exceed these hardware limits, the Node will no longer be able to reach stable Consensus with its Node. For an overview of state rise and other scaling bottlenecks, see Part 1 of this series.

Figure 1: Ethereum scaling bottleneck

Until recently, most of the network throughput per node was used to transfer history (such as new blocks and transactions). This changed with the introduction of blobs in the Dencun Hard Fork. blobs now account for a large portion of Node Network activity. However, blobs are not considered part of the history because 1) they are only stored by Nodes for 2 weeks and then discarded, and 2) they do not need to repeat data from the inception of Ethereum. Because of (1), blobs don't significantly increase the storage burden per Ethereum Node. We'll talk about blobs later in this article.

In this article, we will focus on historical rise and discuss the relationship between history and state. Because state rise and historical rise have some overlapping hardware constraints, they are related problems, and solving one problem can help solve the other.

How fast is history rise long?

Figure 2 shows the historical rise rate since the creation of Ethereum. Each vertical line represents a month's rise. The y-axis represents the number of k exabytes of historical rise in that month. Transactions are categorized by their "destination Address" and use RLP() bytes to indicate size. Contracts that cannot be easily identified are classified as "unknown". The "Other" category includes a range of sub-categories such as infrastructure and games.

Figure 2: Ethereum historical rise rate over time

A few key takeaways from the chart above:

• Historical rise rate is 6 to 8 times faster than state rise: Historical rise rate recently peaked at 36.0 GiB/month and is currently 19.3 GiB/month. The state rise rate peaked at about 6.0 GiB/month and is currently 2.5 GiB/month. A comparison of history and state in terms of rise and cumulative size will be described later in this article.
• Prior to Decun, the historical rise rate had been accelerating: While the state had been roughly linear rise for long years (see Part 1), the history was rise superlinear. Considering that the rise rate of a linear rise results in a quadratic rise of the overall scale, the rise rate of a superlinear rise results in an overall size exceeding the quadratic rise. This acceleration stops abruptly after Dencun. This is the first time that Ethereum has experienced a significant drop in the historical rise rate.
• The majority of recent historical rise comes from Rollups: each L2 publishes a copy of its transaction back to Mainnet. This generated a large amount of historical rise and led to Rollup being the most significant contributor to historical growth over the past year. However, Dencun allows L2 to publish its transaction data using blobs instead of history, so Rollups no longer generate most of Ethereum history. We'll cover Rollups in more detail later in this article.

Who is the biggest contributor to Ethereum's historical rise?

The historical number of different contract classes generated reveals how Ethereum's usage patterns have evolved over time. Figure 3 shows the relative contributions of the various contract categories. This is normalized to the same data as in Figure 2.

Figure 3: The contribution of different contract classes to historical rise

This data reveals four different periods of Ethereum usage patterns:

• Early (purple): There was little on-chain activity in the first few years of Ethereum. Large long of these early contracts are now difficult to identify and are marked as "unknown" in the chart.
• ERC-20 era (green): The ERC-20 standard was finalized at the end of 2015 but did not gain significant development until 2017 and 2018. ERC-20 contracts became the largest source of historical rise in 2019.
• DEX / Decentralized Finance Era (Brown): DEX and Decentralized Finance contracts appeared on the on-chain as early as 2016 and began to gain traction in 2017. But it wasn't until the summer of Decentralized Finance 2020 that they became the largest category of all-time rise. Decentralized Finance and DEX contracts accounted for more than 50% of the all-time rise for part of 2021 and 2022.
• Rollup Era (Gray): In early 2023, L2 Rollups began executing longer transactions than Mainnet. In the months leading up to Dencun, they generated about 2/3 of Ethereum's history.

Each era represents a more complex pattern of using Ethereum than ever before. Over time, complexity can be seen as a form of Ethereum scaling, which cannot be measured by simple metrics such as transactions per second.

In the most recent data month (April 2024), Rollups no longer produce most of the history. It's unclear whether future history originates from DEXs and Decentralized Finance, or if some new usage patterns will emerge.

What about blobs?

The Dencun Hard Fork dramatically changed the historical rising dynamics by introducing blobs, allowing rollups to publish data using cheap blobs instead of history. Figure 4 amplifies the historical rise before and after the Dencun upgrade. The chart is similar to Figure 2, except that each vertical line represents a day instead of a month.

Figure 4: Dencun's impact on historical rise

From this chart, we can draw several key conclusions:

• Historical growth of rollups has risen by about 2/3 since Dencun: Most longest rollups have been converted from call data to blobs, which greatly reduces the amount of history they generate. However, as of April 2024, there are still some rollups that have not yet been converted from call data to blobs.
• Total all-time rise has dropped by about 1/3 since Dencun: Dencun has only drop the all-time rise of rollups. There was a slight increase in historical rise for other contract categories. Even after Dencun, the historical rise is still 8 times the state rise (see the next section for details).

Although blobs have drop historical rise speed, they are still a new feature of the Ethereum. It's unclear at what level the historical rise velocity will stabilize in the presence of blobs.

Is long fast historical rise acceptable?

Increasing the gas cap will increase the historical rise rate. Therefore, proposals to increase the gas cap, such as Pump the Gas, must take into account the relationship between historical rise and the hardware bottlenecks of each Node.

To determine an acceptable historical rise rate, you must first understand how long your current Node hardware can sustain long in terms of networking and storage. Networked hardware may be able to maintain the status quo indefinitely, as historical growth rates are unlikely to rise back to their pre-Dencun peaks until gas limits are increased. However, the storage burden of history increases over time. Under the current storage strategy, it is inevitable that each Node's storage disk will eventually be filled with history.

Figure 5 shows Ethereum Node storage burden over time and predicts the rise of the storage burden over the next 3 years. The forecast is based on the rise rate in April 2024. This rise rate may rise or decrease as future usage patterns or gas limits change.

Figure 5: The size of history, state, and full node storage load

From this graph, we can draw several key conclusions:

• History occupies approximately 3 times the storage shorts of state. This difference also rises over time, as historical growth is about 8 times faster than state.
• 1.8 TiB is the critical threshold at which Xu long Node will be forced to upgrade their storage drives. 2TB is a common storage drive size, offering only 1.8TiB of free shorts. Note that TB (1 trillion bytes) is a different unit than TiB (= 1024^4 bytes). For Xu long Node operators, the "true" critical threshold is even lower, as the post-merge validator must run alongside Consensus execution client.
• The critical threshold will be reached in 2 to 3 years. Raising the gas limit by any amount will speed up the time accordingly. Reaching this threshold will place a significant maintenance burden on Node operators and require the purchase of additional hardware (e.g., $300 NVME drives).

Unlike status data, historical data is append-only and accessed longest less frequently. Therefore, it is theoretically possible to store historical data separately from state data on a cheaper storage medium. This can be achieved with some clients such as Geth.

In addition to storage capacity, network IO is another major limitation of historical rise. Unlike storage capacity, network IO limits will not cause problems for Nodes in the short term, but these limits will become important for increasing gas limits in the future.

To understand how the network capacity of a typical Ethereum Node can support long few historical rise, it is important to know the relationship between historical rise and various network health metrics, such as reorganization rate, slot misses, final misses, proof misses, synchronization committee misses, and Block commit latency. The analysis of these metrics is beyond the scope of this article, but more long information can be found in previous surveys of Consensus layer health. In addition, the Ethereum Foundation's Xatu project has been building public datasets to speed up such analysis.

How to solve the problem of historical rise?

Historical rising is a much easier problem to solve than state rising. It can be addressed almost entirely by candidate proposal EIP-4444. This EIP changes each Node from keeping the entire Ethereum historical data to only one year's worth of historical data. After the implementation of EIP-4444, data storage will no longer be a bottleneck for Ethereum scaling, and in the long run, gas limit increases will not be constrained. EIP-4444 is necessary for the long-term sustainability of the network, otherwise the historical rate of rise will be rapid and the hardware of the network Node needs to be updated regularly.

Figure 6 shows the impact of EIP-4444 on the storage burden of each Node over the next 3 years. This is the same as Figure 4, but with the addition of a shallower line to indicate the storage burden following the implementation of EIP-4444.

Figure 6: Impact of EIP-4444 on Ethereum Node storage burden

Some key conclusions can be seen from this graph:

• EIP-4444 will Halving the current storage burden. The storage burden will be reduced from 1.2 TiB to 633 GiB.
• EIP-4444 will stabilize the historical storage burden. Assuming a constant historical rise rate, historical data is discarded at the rate generated.
• After EIP-4444, it would take longest years for the Node storage burden to reach where it is today. This is because state rise will be the only factor that increases the storage burden, and state rise slower than historical rise.

After EIP-4444 is implemented, historical rise will still introduce some level of storage burden, as Node will store a year's worth of historical history. However, even if Ethereum reaches global scale, this burden will not be difficult to solve. Once the history-keeping method proves to be reliable, the one-year expiration time for EIP-4444 may be shortened to months, weeks, or even less.

How do I save Ethereum history?

EIP-4444 raises the question: if history is not saved by Ethereum Node itself, then how should it be saved? History plays a central role in Ethereum's verification, accounting, and analysis, so it's crucial to preserve history. Luckily, history keeping is a simple matter that only requires 1/n honest data providers. This is in contrast to state Consensus issues, which require 1/3 to 2/3 of participants to be honest. Node operators can verify the authenticity of historical datasets by 1) replaying all transactions since the Genesis Block and 2) checking whether these transactions reproduce the same state root as the current Blockchain side.

There are longest ways to save history.

• Torrents/P2P: Torrents are the easiest and most reliable method. Ethereum Node can package part of the history on a regular basis and share it as a public torrent file. For example, a Node might create a new historical torrent file every 100,000 Blocks. Node clients like erigons already perform this process in a somewhat non-standardized manner. To standardize this process, all Node clients must use the same data format, the same parameters, and the same P2P network. Nodes will be able to choose whether or not to participate in this network based on their storage and bandwidth capabilities. The advantage of Torrents is the use of high lindy open standards that are already supported by a large number of data tools.
• Portal Network: Portal Network is a new network designed specifically for hosting Ethereum data. It's an approach similar to Torrent while also offering some extra features that make data validation easier. The advantage of Portal Network is that these additional layers of validation provide light clients with utilities to efficiently validate and query shared datasets.
• Cloud hosting: Cloud storage services such as AWS's S3 or Cloudflare's R2 offer an inexpensive and high-performance option for keeping history. However, this approach introduces more long legal and operational risks, as there is no guarantee that these cloud services will always be willing and able to host Crypto Assets data.

The remaining implementation challenges are longer social than technical. The Ethereum community needs to coordinate specific implementation details in order to integrate them directly into each Node client. In particular, performing a full sync from the Genesis Block (instead of Snapshot sync) will require retrieving the history from the history provider instead of the Ethereum Node. These changes don't technically require a hard fork, so they can be implemented earlier than Ethereum's next hard fork, Pectra.

All of these history-keeping methods can also be used by L2s to hold blob data they publish to Mainnet. Compared to historical preservation, blob preservation 1) is more difficult because the total amount of data is longer; 2) Less important because blobs are not necessary to replay Mainnet history. However, blob preservation is still necessary for each L2 to replay its own history. Therefore, some form of blob saving is important for the entire Ethereum ecosystem. In addition, if L2 develops a robust blob storage infrastructure, they may also be able to easily store historical L1 data.

It can be helpful to directly compare the datasets stored by various Node configurations before and after EIP-4444. Figure 7 shows the storage burden for different Ethereum Node types. State data is accounts and contracts, historical data is Block and Transactions, and archive data is an optional set of data indexes. The number of bytes in this table is based on the most recent reth Snapshot, but the numbers for other Node clients should be roughly the same.

Figure 7: Storage burdens for different Ethereum Node types

Other words

• Archive Node stores state and historical data as well as archive data. Archive Node can be used when someone wants to be able to easily query the historical chain state.
• Full Node stores only historical and state data. Most of today's long Node are Full Node. The storage burden of a full node is about half that of an archive Node.
• Full nodes after EIP-4444 store only state data and historical data for the most recent year. This reduces the storage burden on the Node from 1.2 TiB to 633 GiB and brings the storage shorts for historical data to a steady-state value.
• Stateless Nodes, also known as "light nodes", do not store any data sets and can be verified immediately at the end of the chain. This Node type becomes possible once Verkle attempts or other state commitment schemes are added to Ethereum.

Finally, there are additional EIPs that can limit the historical rise rate, not just accommodate the current rise rate. This helps stay within network IO constraints in the short term and storage constraints in the long term. Although EIP-4444 is still necessary for the long-term sustainability of the network, these other EIPs will help Ethereum scale more efficiently in the future:

• EIP-7623: Repricing call data to make some transactions with longing call data more expensive. Making these usage patterns more expensive will force some of them to convert from call data to blobs. This will drop historical rise rate.
• EIP-4488: Imposes a limit on the total amount of call data that can be included in each block. This will impose a tighter limit on the rate of rise of the history.

These EIPs are easier to implement than EIP-4444, so they may serve as short-term options before EIP-4444 goes into production.

Conclusion

The purpose of this article is to use data to understand 1) how historical rise works and 2) ways to solve that problem. Much of the long data in this article is difficult to obtain through traditional means, so we wanted to expose this data to provide some new insights into historical rise issues.

Historically rise as a bottleneck for Ethereum expansion, not enough attention has been paid to it. Even without increasing the gas cap, Ethereum current history-keeping conventions will force Xu long Node to upgrade their hardware within a few years. Fortunately, this is not a difficult problem to solve. There is already a clear solution in EIP-4444. We believe that the implementation of this EIP should be accelerated to allow shorts for future gas cap increases.

By Asher, Odaily Planet Daily

Venture fund Colosseum announced the results of the ninth Solana Foundation Hacker Pine Solana Renaissance contest on the evening of May 6. This time, the competition was a high-profile event, with 8,300 long entrants from more than 95 countries participating, with a total of 1,071 entries submitted. Only 34 projects managed to stand out, with a 3.17% chance of winning.

Among these winning projects, 5 projects belong to the chain game zone. So, what are the origins of these chain game projects, and how should they be laid out in advance to wait for the explosion of the chain game zone? Below, Odaily will break down the five award-winning blockchain game projects of Solana's latest Hacker Marathon and the highlights to watch.

1st Place: Meshmap + City Champ

Source: Official push

Project Official Website:

Meshmap is a project developed by a Japanese team. Meshmap builds a 3D map of the world through 3D scans submitted by the community and rewards it with the game through Token Incentives (proposed MESH Tokens). As the first place in this Solana Hacker Songchain Tour zone the project will receive a reward of 30,000 USDC.

Solana Hacker first place in the pine chain tour zone

As a first proof of concept, Meshmap used Unity and Solana to develop City Champ, a mixed reality first-person combat and tower defense game for Meta Quest 2/3/Pro. On the one hand, as a player, users need to defend their city, defend against the terrifying creatures created by the city's social problems, fight enemies, defend the core of the city, and collect results in order to win. On the other hand, as a 3D scanner, users can use the phone's built-in LiDAR scanner to scan the grid to find new areas of the game and submit them to MeshMap to increase the endless level positioning possibilities.

Although there is very little information about City Champ and the specific game content cannot be experienced, as the first place in the chain game zone the latest award-winning project of Solana Hacker Song, it is still worth paying attention to, and it is recommended that long pay attention to the content update of City Champ's official tweet, and at the same time, you can pay attention to whether Meshmap opens a new chain game project.

2nd place: Legends of the Sun

Source: Official push

Project Official Website:

Legends of the Sun is a battle arena game in which players can play 1v1, 3v3, and 5v5 battles. The gameplay includes a variety of skill trees such as swords, crossbows, guns, magic, and drones. Equipment is randomly airdropped through loot chests, and the rarity of equipment can be increased by spending coins (longest). Equipment also has durability, which means that equipment can be damaged and need to be repaired or repurchased. In addition to equippable equipment, there are also longest consumables such as food, potions, and throwables such as grenades. Fully repaired equipment or fully damaged equipment will now be tradable as compressed tradable items in the Grand Bazaar.

Game display screen

Currently, the official Discord has been created (click here), and you can also focus on the Legends of the Sun game designer Twitter (click here).

3rd Place: Mining Badger Game

Source: Official push

Project Official Website:

Mining Badger Game is an on-chain production game using the Honeycomb Protocol that game developers can integrate into their own games.

Currently, the game can be played in beta and interacted with (no cost), and the specific operation tutorial is as follows:

STEP 1. Enter the official website, connect the Wallet and create an account and fill in personal information

STEP 2. Pick up the Bronze Pickaxe in the SHOP

STEP 3. Mining starts after receiving Bronze Pickaxe (different Ore has different countdowns)

STEP 4. Then go to Refine to minting various items (minting different items requires different raw materials)

STEP 5. Finally, enter Craft to consume the corresponding Bars to gain experience

4th place: Moon Boi Universe

Source: Official push

Project Official Website:

Moon Boi Universe is a mobile long wick candle optimized, Web3 cyber fantasy open-world role-playing game with a Token TNT that leverages the SPL-404 standard on Solana Blockchain to integrate real-world Crypto Assets with the game NFT. And TNT will make it more scarce through a combustion mechanism. Currently, the game is only available on mobile Android.

Moon Boi Universe in-game interface

5th place: Maneko

Source: Official push

Project Official Website:

Maneko is an electronic pet Web 3 mobile game with a built-in game launcher. This chain game is the most playable one in the list of winners, and the specific operation tutorial is as follows:

STEP 1. Go to the official website of the game and register an account (Google email / Twitter / Wallet can be logged in), and enter the invitation code: PBMRGA (you need to enter the invitation code to enter during the closed beta stage)

STEP 2. Deposit a small amount of SOL into the in-game Wallet for NFT minting

One thing to note when entering the game is that the My Pet screen needs to feed your pet before the countdown to its death.

There are currently two games in the "Crane Machine" icon where you can participate and earn PTS Points rewards, and PTS Points can upgrade pets. At the same time, you can also attack other players in the Leaderboard page to get rewards.

This interview is Central Bank from Nicolai Tangen, Chief Investment Officer at Norges Bank Investment Management, on the podcast In Good Company. Norges Central Bank Investment Management manages the world's largest sovereign wealth fund, the Norwegian Sovereign Wealth Fund, which has reached 16 trillion Norwegian kroner (10.78 trillion yuan coins) as of the beginning of this year, and according to Prism statistics, its return will reach 16% in 2023, and the annual floating profit will be 2,222 billion Norwegian kroner (1.5 trillion yuan coins), a record high. To use a more intuitive perspective, it is equivalent to giving 5.534 million people in Norway, each earning 270,000 yuan coins.

Norges Central Bank Investment Management is arguably the largest buyer in the financial sector on the planet, which allows Nicolai Tangen, as chief investment officer, to interview almost any industry bigwig, and today's protagonist is Citadel CEO Ken Griffin. It can be said that Citadel was the brightest star of China Street in the last round of US dollar issuance cycle, and in 2022, it recorded a revenue of $28 billion.

As CEO, Ken is like a rock star, with his buy-and-buy news almost every month, buying the most expensive apartment in U.S. history for $238 million, trying to acquisition the NFL Miami Dolphins and their home Hard Rock Stadium for $7.5 billion, and buying a stake in the F1 Miami Grand Prix. In addition, Ken Griffin also has a lot of fate with the crypto industry, and its market maker business Citadel Securities began to participate in Crypto Assets trading early on, becoming one of the mainstream liquidity providers.

At the end of 2021, Ken Griffin also won an auction for a copy of the U.S. Constitution for $43.2 million, snatching the precious artifact from People Dao. Even many industry practitioners believe that Citadel is behind the collapse of the Algorithmic Stablecoin project Luna/UST in 2022, and Ken Griffin personally led the operation of shorting UST in May 2022.

In this conversation, Ken Griffin talks about the current state of the U.S. economy, the impact of remote work on tech companies, and how he views the AI bubble, as well as the Citadel philosophy, the principles of recruitment, and how to navigate today's unpredictable market.

The following is the full text of the interview:

The financial road of the giant crocodile

**Nicolai Tangen: Welcome to today's podcast, and we're honored to have Ken Griffin, one of the best investors of all time. Ken began his financial journey in his dorm room at Harvard and founded Citadel with the great ambition to become the most successful investment firm of all time, which is exactly the kind of ambition we love. Welcome, Ken, it's a pleasure to have you on board, and thank you so much for taking the time to join us. So first of all, what made you enter the financial deposit industry? **

Ken Griffin: I've always been interested in the stock market, and I don't quite understand it myself. When I was in my third year of junior high school, I wrote an essay saying that I wanted to understand how the stock market works. So I've been on this path for almost 40 years (Ken is 55 years old), but I still feel like I'm at the beginning of a learning curve. The global equity market is full of interesting and complex questions, and the intersection of business models, returns, and investor psychology is truly endless. I'm always learning, trying to understand how to evaluate the value of a business, and how to be a successful investor in the stock market. It's simply the most complex game in the world.

Nicolai Tangen: What was your vision when you started in your Harvard dorm room? What do you think the industry might look like? **

Ken Griffin: One interesting thing is that I bought two put options contracts for HNSI (Home Shopping Network, delisting 2017) in my college dorm room during my freshman year. In a way, I'd like to thank excellent journalism, and it was Forbes' Gret Morgenson who wrote an article that allowed me to launch my career. In her article, she made the point that HNSI was the meme stock of the time. I liked her point of view and bought these two put options contracts. Luckily, from my career development standpoint, the stock then big dumped and I made a few k dollars.

Ken Griffen at the 1989 college commencement ceremony, photo courtesy of The Harvard Crimson

But you and I both know that when you're a freshman, making $2,000 or $3,000 is already invincible. When I sold these put options, the market maker offered me less than its Intrinsic Value, which made me interested in pricing derivatives. I realized that I was lucky enough to buy those options after the stock big dump, but the market maker made a risk-free profit. I was very, very interested in understanding the pricing of derivatives, so I started to understand the pricing of convertible bonds, which was the beginning of my understanding of the hedging fund industry in my college dormitory.

Nicolai Tangen: Do you think the market opportunities are as long today as they were when they started? **

Ken Griffin: I think the opportunities are different now than when I first started in the industry. Clearly, pricing derivatives is well known, and there are a large number of master's and doctoral programs around the world, as well as degrees in financial engineering. So the level of knowledge of the whole society in terms of investment has indeed improved a lot. But on the contrary, today's market size is long larger, and it is global, and the long of products is more diverse. So there will always be some niche opportunities for investors to gain insight and gain a competitive advantage in trading.

Nicolai Tangen: What mistakes did you make when you started your career, and what did you learn from them and improve on them? **

Ken Griffin: I've made pretty much every mistake I could, and unfortunately I made some mistakes two or even three times. But the key to finance is to try to learn from your successes and failures. I think a common mistake people make is not to study their own successful trade, they don't try to understand what they did right in that successful trade.

Let's be clear, in finance, where you make money when you have successful trades, we all tend to place too much emphasis on learning from failure and far less emphasis on learning from success.

Nicolai Tangen: So, what is your trading strategy that has had great success? I mean, if you were to summarize your trading strategy, what would be the most successful thing? **

Ken Griffin: The most successful thing about us as investors is that we have a clear competitive advantage in absorbing information, processing information, and reacting to information. That's what we do best. So, we structure our company based on the principle of "research business", and the core of this business is research, whether it's stock selection or weather forecasting for commodity trading, the first thing is to research the business, and trading is just how we monetize our research, it's as simple as that.

The U.S. economy, online work, and the AI bubble

Nicolai Tangen: So based on all the data and research you've gathered, where is the U.S. economy at today? **

Ken Griffin: If you look back at all the data that we have, we're in very interesting uncharted territory. You and I have been studying economics in some form or another all our lives, and let me ask you a question, have you ever imagined that American society is at near full employment, inflation is around 3%, and at the same time the government is spending on a massive scale?

Nicolai Tangen: No, I wouldn't have expected that. **

Ken Griffin: We're in uncharted territory, we're at that stage of the cycle right now, trying to pay off government debt, trying to clean up the finances in order to have fiscal flexibility when the rain inevitably comes, and yet, at this very moment, the U.S. economy is almost at or beyond rise capacity, and the government is still spending massively.

Massive fiscal stimulus is leading to higher inflation in the economy than we expect to see, putting the US in a more dangerous long-term position, and it will give us less freedom to deal with the next crisis, even the unfortunate Great Depression.

Nicolai Tangen: You often emphasize the crisis of the fiscal deficit, why are you so worried about it? **

Ken Griffin: You and I both grew up in an era of fear of crowding-out (the fear that excessive government borrowing and spending would lead to an long oversupply of capital, making it difficult for private companies or individuals to get enough money to invest or grow), where the size of government deficits around the world would replace the need for capital in the private sector. Of course, for those who think about a very long-term process, this concern remains. How do we make sure we don't crowd out the private sector to boost government spending?

But there is another important point, and that is the issue of fairness. You know, there's a lot of focus on equity all over the world today. For example, is our income inequality too high? In a way, we are borrowing money from the future, from our children and grandchildren, right here and now, to maintain a standard of living that is incompatible with productivity or the work culture that is developing in advanced economies. From the perspective of intergenerational equity, it is really unfair that we are spending so long much money in our current form.

Nicolai Tangen: If you were giving advice to the president, or if you were actually in charge of dealing with this issue, what do you think are the country's top priorities? **

Ken Griffin: I think the number one priority is that we need to be more productive in the Western world, and there's nothing more important than that, whether it's in Europe or the U.S., which is an important path to sustain prosperity.

Nicolai Tangen: How can we increase productivity now? **

Ken Griffin: You and I both know that we need to improve our education system, especially in the U.S., where K-12 education puts our children at a substantial competitive disadvantage compared to the rest of the world, and more importantly, they are also at an absolute disadvantage in life, where they are not exposed to ideas and concepts that will allow them to win rich careers.

The second point is telecommuting, a lot of telecommuting phenomena are undoubtedly reducing mentoring, collaboration, leadership development, and innovation, and it's time for our people to get back together to collaborate, mentor, and develop leaders so that in 20 or 30 years' time, we're not in the terrible situation of a serious lack of leadership in the Western world because of the way we work today, and I'm concerned about that.

So at Citadel there was no working from home, we were all back in the office, and even better was the mental health impact, remote work made it hard to separate life and work, and it was great to see my colleagues working passionately and happily at work, while maintaining the separation of personal and professional life.

**Nicolai Tangen: What else do we need to do besides education and return to the office? **

Ken Griffin: Education, a return to the office, and prudent government regulation to encourage entrepreneurship and entrepreneurship, to rise small and medium-sized enterprises, and to drive increased economic competition are all very important. The West must continue to develop trade policies that truly realize the benefits of free trade between North America and Europe. So some of the tendencies towards protectionism, we really need to think about taking back and creating greater economic integration between the two continents.

Nicolai Tangen: Now when we look at all these things, is the stock market in a bubble? Or what do you think about the stock market? **

Ken Griffin: You know, it's always very difficult to determine if you're in a bubble, because even if you're in a bubble, you're going to have a very clear price on your assets. You and I can look back at the dot-com bubble period, what we were all talking about at the time, and do you remember some of those conversations?

We were talking about how e-commerce was going to revolutionize the way we acquired goods, and metrics such as "how long eyes stayed on a page" became the dominant metric for securities pricing, but we created a whole set of terminology, vocabulary, and frameworks to justify and rationalize the existence of a bubble at the time. Now, it's interesting to note that 20 years later, all long things that we thought were going to happen in this revolution have actually happened, and many of the long biggest companies in the world today are actually businesses or similar businesses that symbolically represent the Internet phenomenon that we originally envisioned.

So what's interesting is that we have the right arguments, we have the right ideas, but people just lose their minds about valuations for a while.

Nicolai Tangen: Are we in the AI valuation frenzy again? **

Ken Griffin: The AI frenzy is truly amazing, and it will be interesting to see how quickly the success of AI fits into our daily lives and the way our businesses operate. However, the second trend that is happening now is that the importance of your CIO or CTO in management and the board is rising again. People are starting to really focus on digitization and using software and analytics to improve their business.

So what's really interesting is that when you talk to the CEOs of the business, they're going to tell you how their companies are embracing AI and how it's having a profound impact on their business. But if you dig deeper into these stories, you'll see that AI isn't involved at all, but the adoption of modern technology capabilities and digitalization is something that can really improve and enhance businesses in the U.S. and Europe.

So, one of the really great things about AI that I've found is that it's getting entrepreneurs to refocus on the importance of technology and to be more efficient in delivering goods and value to consumers. At Citadel, we use AI in longest ways to improve the day-to-day productivity of our team members, and we'll spend the next two or three years using AI to help draft emails, summarize research reports, understand or write memos, and other documents needed for day-to-day business.

For example, we use AI to help label data and then use it for some very important tasks, like how to help our software engineers be more productive. So in our company, we have all sorts of uses of AI. If we look at machine learning, it's arguably arguably the most important part of AI's evolution. At Citadel, we've been using machine learning for about eight to nine years, and machine learning plays a very important role in how we think about asset pricing, and occasionally in how we think about asset Risk Management, but when it comes to asset pricing, machine learning does play an important role.

How to manage a portfolio?

Nicolai Tangen: Ken, I want to go back to your vision when you founded Citadel, what kind of vision did you have for the company? That's when you started the company, what did you think it might look like? **

Ken Griffin: Well, it's a journey back in time. At the age of 20, I had the opportunity to manage a million dollars for a Chicago-based fund company.

They promised me that if I did well, they would help me set up my own fund and help me raise money. So Citadel started a little longest a year after I graduated from college, and we raised about four and a half million dollars in November 1990, and we started a strategy of trading equity-linked derivatives, convertible bonds, and warrants. That's where Citadel came in.

Now there are some key things in this story that are important, the first is that I believe you can use math and software to help understand these pricing relationships, an area where the world of large long is still using pen and paper and rules of thumb. I remember hiring a rocket scientist to help with these pricing models in those days, and one of my fren from a big bank was going to laugh when he heard how we worked, and he said, "You're not trying to send people to the moon, you're trying to trade bonds."

Ken Griffen at Citadel, image via WSJ

Now, more than 30 long years later, the bank he worked for is no longer there, and Citadel and Citadel Securities are two of the most important companies in the global financial markets. In a way, we have succeeded in riding the wave of the rise of mathematics in finance, which has to some extent passed. We all now take it for granted that we make heavy use of mathematical concepts in the financial industry, and these concepts were actually first applied in our day-to-day work in the 80s and 90s.

When dealing with this wave, I think the biggest challenge is that we have to develop our own talents. In the early days, you had to hire people with very different backgrounds that were usually rare on Wall Street at the time, such as physicists, nuclear engineers, mathematicians. You have to hire people with very different backgrounds than the typical Wall Street traders, and you have to teach them financial literacy and involve them in solving problems such as the value of derivatives and the value of complex securities, and there is a knowledge gap between them, and we have to help balance the different perspectives between the people who are responsible for investing and those who are responsible for analysis, and try to bridge their differences.

Nicolai Tangen: Your ability to innovate and expand in the financial sector is quite unique, so what do you think is the reason why you're so successful here? **

Ken Griffin: I think some of the things we do are very different from longest companies. Everyone thinks that investing is an art, but we believe that investing is also a science. As we run this company day in and day out, we really focus on the combination of the art and science of investing and how to make our investment decision-making process work well.

The second point is that I think our hard work of analysis and learning has given us the discipline to invest in, from which we have created differentiated insights and confidence in our capital deployment.

The third point is experience, which is the wisdom that comes with the loss and pain we have had. My leadership team has been through a lot of tough times in the long market together, and we've learned some very painful lessons, but those that have made us better investors during turbulence and crisis.

Nicolai Tangen: Another thing that has happened during this time is that passive capital and short-term capital have become more common. What do you think is the impact of this for longer-term fundamental investors like us? **

Ken Griffin: It's very interesting to note that the rise of passive investing suggests that the market is either efficient or semi-efficient, and that investors can get exposure to a wide range of indices in the world at large or in specific industries at a lower cost without having to pay for active management. This embrace of passive investing is revolutionary for the industry, but passive investing is only effective if there is a group of people who are engaged in fundamental research and help price securities.

Therefore, the theory of passive investment needs to be realized by capable, successful and competitive traditional asset managers behind passive investment. The increase in short-term investors has helped to ensure that the market remains efficient with rapidly evolving news information, but we really should do everything possible to ensure that traditional asset managers thrive by allowing them to maintain their own research and investment capabilities, as they are crucial in the price discovery process on which passive investing depends.

Nicolai Tangen: So with all of that in mind, what should you do if you're a regular retail investor? **

Ken Griffin: If you're a lawyer, dentist, or teacher with a full-time job, I think the best way to make money depends on where you are in the financial markets, and you should choose to invest in a wide range of equity index products or manage a wide range of actively managed pools. For example, if you manage the Norwegian Sovereign Wealth Fund, I know that you are very focused on investing a significant portion of your money in equity indices. Over the long years, you have developed strategies around the world that allow you to achieve integrated rise and profitability for countries around the globe at a very low cost.

It's a very deliberate way to allocate a lot of capital that you have in your hands, and you're also investing in non-equity assets, and then using a variety of strategies based on what you think is the relative competitive advantage of your internal team and external managers. This is the way I recommend any large-scale capital management so that it can be achieved in-house in a cost-effective manner and find what you consider to be the best managers around the world to longest the portfolio.

How to build a good investment team?

Nicolai Tangen: I totally agree with you. Now, 34 years after the company was founded, we have a report card, you have been very successful, how do you stay ahead of the curve? How can you make sure you're still hungry? **

Ken Griffin: There are longest different aspects to this question, so let's break it down. How does Citadel continue to thrive? We have an incredible leadership team, and I have world-class leaders at Citadel who are managing our various businesses, and I'm very grateful to be a part of that team. I am also constantly working with my leadership team to improve and strengthen our investment strategy. I maintain ongoing communication and engagement with my senior leadership team on the core issues of recruiting the best talent, developing the best stakeholders, and ensuring that capital is put into the hands of our best stakeholders when the best opportunities arise.

Our first focus is on human resource development and optimal allocation of human capital, and then in everything we do, there's a second clue, which is how to build a competitive advantage, how to better gather information, how to make better decisions.

Nicolai Tangen: One of the things that you do is have longest managers and these overall concepts, how are teams organized, how do you think about that? **

Ken Griffin: We see the business as a variety of verticals, such as global commodities, long and short equities, and various credit businesses. In each vertical, we ask our business leaders to show an entrepreneurial spirit and truly say to themselves: In a sense, I have almost unlimited capital from this perspective. In this context, what are the ways to build and leverage the most appropriate teams, the most appropriate strategies, and the most competitive advantages in today's world and environment? That's the way we do business, with a lot of focus on a blank slate, and what we should be doing today to be one of the most effective capital donors in the world's financial markets.

Nicolai Tangen: Does each team decide their investment strategy? **

Ken Griffin: The investment strategy is decided by the portfolio manager, the head of the business and me, so the three of us come together depending on the nature of the problem and work together to make sure that we've thought through how we're going to create the most successful investment strategy.

Nicolai Tangen: So now you're giving me 100 million dollars and I'm working for you, what would you think of my mistakes? **

Ken Griffin: First of all, we want to give you long more money to manage. And that's partly because, you know, we've gathered really good people here, and we want them to be able to get enough capital to support the teams around them to be revenue and profitable, and to support the super teams around them. We really see investing as the task of a world-class team, because within the team, you have a much healthier debate and conversation, which helps to uncover the truth, to reveal the true nature of the debate, which is so important to our business that it cannot be overstated.

So when we hire you as a portfolio manager, we take long time to understand a few things, first of all, what kind of team we're going to put together and how to attract the best talent to your team. Secondly, we want to work closely with you to make sure that you have a replicable investment process that you can learn from, whether it's from your successes or failures, and that you're able to teach your team members to create your own operational leverage, so those are some of the things that we think about when you join the company as a new portfolio manager.

Nicolai Tangen: When will Citadel fire me? **

Ken Griffin: First of all, we don't want to fire you, we want to see you have a very successful career.

Why do people's careers go wrong and why do they get stuck? There are several reasons for this. First of all, some people just aren't good risk takers. You can put the facts in front of them, you have a very highly concentrated portfolio, you have large positions, and you can't clearly and unambiguously prove that you have a clear advantage in those positions. If these things go wrong, we don't have a basis for cooperation. There are also people who, even if they know everything, are unable to help themselves and improve their portfolio structure.

Nicolai Tangen: You've mentioned information longest, and you're one of the really great users of alternative data, so let's talk about some of the alternative data sources you use. **

Ken Griffin: What type of alternative data we use depends on where we invest. If you're investing in an shorter company, you'll be very interested in current shorter fares; If you're trying to predict Inflation, you'll break down each factor that the U.S. Bureau of Labor Statistics (BLS) focuses on one by one and make their inflation projections; If you're involved in commodity markets, you're probably running a world-class meteorology project trying to predict short-term weather patterns or the dispersion of weather patterns. As a result, you'll focus on using alternative data depending on the nature of the problem at hand. We're always trying to peel back the façade of data, understand what information is critical to driving revenue or demand for a business, and then take that information in the right way, process it quickly, and make the right decisions.

How does Citadel hire?

Nicolai Tangen: You were drawn to market makers in college, and now you've founded Cedar Securities, one of the most sophisticated market makers in the world. First of all, for those in the audience who don't understand the role of market makers in finance, can you explain? **

Ken Griffin: A market maker is a company that provides liquidity to buyers and sellers who are not transacting at the same time. This means that when you want to sell $50 million worth of stock, if there are no buyers in the market at the same moment, you are not pushing the stock price excessively, and the market maker will use their capital to facilitate your trade and then hope to find the ultimate buyer of your stock at some point in the future.

We do this on a global scale in terms of fixed income and equity products. You know, for example, in the U.S., 25% of all the equity that we trade almost every day. These are huge numbers, right? Citadel Securities has a daily volume of up to $400 billion per day across all asset classes.

Nicolai Tangen: What do you think Citadel Securities will look like for the next 5 to 10 years? **

Ken Griffin: I think it's going to be very similar to what it looks like today, but we're going to dig deeper into long offerings, diversify our business, and expand our connections with more long trading partners, and we also offer a range of other services that investors really value, like corporate finance and new issuance shares. It will expand in size and scope in the coming years as we continue to address the challenges and issues our customers face.

Nicolai Tangen: What are your thoughts on the current geopolitical situation? **

Ken Griffin: You know, you and I were very fortunate that we really grew up in a peaceful era until the last two or three years. It's heartbreaking to watch the war in Ukraine unfold before our eyes. It's incredible, have you ever thought that in your lifetime there will be another war in Europe? No, it won't. But now, we're witnessing this firsthand, and it's really heartbreaking to see the terrible losses and devastating effects that the Ukrainian people and economy have suffered in the war that is entangled with Russia.

Of course, just a few days ago, we saw an Iranian attack on Israel. Israel has been in a huge predicament, and the situation in the Middle East may not be as surprising as the war in Ukraine. The Middle East has always been a region that is more vulnerable to geopolitical challenges, but in any case, the events of last October, the war in Gaza are very heartbreaking moments.

Nicolai Tangen: So, Ken Griffin, if someone asked you to take over the finances of the United States, would you do it? **

Ken Griffin: Look, if the U.S. has fiscal challenges, I can help the country, and of course I will.

Nicolai Tangen: Let's talk about corporate culture, you've talked about the importance of talent. So, long do you spend less time hiring? **

Ken Griffin: I've been talking to candidates, and there's nothing more important than the talent we're bringing in. They are nurtured with us and lead the company in terms of capital investment and enterprise building.

**Nicolai Tangen: You have long candidates, right? I think, you have 1,500 positions in New York, but you're getting 100,000 applications, right? **

Ken Griffin: Yes, we received about 100,000 applications from all over the world. Let me tell you, what makes me happiest is that people all over the world know that we work 5 days a week, which shows that there are a huge number of young people around the world who want to get into an environment where they will be well mentored and led to development, and they will have great careers. This gives me a lot of optimism about the future, and I hope that those of us who run businesses around the world can reach a consensus with these students and give them the experience to have a great career."

**Nicolai Tangen: Let's say I'm one of the 100,000 people right now and I've managed to get an interview with you. Of course, I was a little nervous because you are a very famous person. What questions would you ask me? **

Ken Griffin: I'm going to be the fourth person you've met, so there's a really great set of questions for you. I'm looking for people who are ambitious. I hope to find people at Citadel who really want to change the world of finance, who want to live impactful lives, who want to make an impact in this world. What I was looking for was strong communication skills. I think it's very important to be able to convey ideas, and no matter what business goals you're pursuing in life, you have to be able to express your ideas.

We always debate the pros and cons of our ideas within the company to find the truth. So I'm looking for people who are ambitious, have communication skills, and the ability to reason and rationalize in a wide range of areas, and I want to find those really good thinkers, because problem solving is so fundamental to what we do every day, and good problem solvers are people who succeed at Citadel.

Nicolai Tangen: Can you tell these traits in your resume? Or do you need to meet people? **

Ken Griffin: You need to meet people. Today people know how to write resumes that cater to the needs of employers.

Nicolai Tangen: How can you tell if I'm a good problem solver? **

Ken Griffin: "What problem did you solve?" Every student will have a problem-solving story, whether it's the laundry service they started, their previous summer job, or the essay they wrote, there are longing opportunities for students to demonstrate their truly excellent problem-solving skills.

Nicolai Tangen: What's the most difficult problem you've solved? **

Ken Griffin: Well, the most difficult problem at the moment hasn't been solved, but you know, there's a lot long of work going on, and one of the challenging issues is long cycle optimization. Longest optimization refers to having different views on how a stock will move in the next day, week, month, or year, and then how to create the best portfolio based on those different views at the current moment. This involves the capital allocation decisions that we have to make. This is an interesting and challenging problem that we have not yet fully addressed at Citadel.

**Nicolai Tangen: I read somewhere that you said that if you naturally like to be a good competitor, you'll love working here. What does that mean? **

Ken Griffin: We make no secret that we want to hire people who really enjoy the competition and are good at winning. Every day, the financial markets provide competitors with a report card that tells them how well they are doing against the competition. We've found that people who like to compete and win like to work here because they like to see the results of their work at one of the world's leading financial institutions and to see their research reflected in the portfolios they build and manage.

Nicolai Tangen: What are your thoughts on leadership? What does good leadership mean to you? **

Ken Griffin: Good leadership is about dealing with the realities of the situation at hand. Good leaders are very objective about the problems, challenges, and opportunities they face, and they are rational in making decisions about them, challenges, and opportunities. They are not affected by the fallacy of costs paid, nor do they lose hope when the situation is not optimistic, but are able to always make good rational decisions.

Nicolai Tangen: Are you a good leader? **

Ken Griffin: Most of the time yes. Speed is a key factor in decision-making, on the coordinate axis, accuracy on one axis and speed on the other. It is important to understand what the trade-off between the two axes is at any given time. Sometimes, it's more important to be close to correct and fast than to be absolutely correct but slow.

The cost of changing your mind is a key factor in determining how fast you need to long. If you are planning to invest in a real estate development that will take 40 years to complete, you don't need to be fast, you need to think thoroughly because once you start this journey, it will be a very long journey. And if you buy $500 million in Apple stock, the next day you realize you're missing an important fact that you can act quickly to get out of the deal.

Nicolai Tangen: How do you balance analysis and intuition? **

Ken Griffin: The best intuition is actually almost like subliminal analysis. When people tell me, "I trust X with intuition alone," what I'm thinking about is whether it's their subconscious mind at work, they've had a long experience with this kind of problem, they have a rough idea of what the answer is, but they haven't written it down yet, but their intuition is actually a more long reflection of their inner ability to analyze the problem and tell you what to do.

Some people's instincts seem to be just: what coffee did I drink in the morning, so I should go long or short the S&P 500 because it was a good day to drink coffee. But it doesn't apply here, at Citadel, intuition is actually a reflection of the analysis going on in the analyst's brain, which may not have been fully formed or fully manifested.

Amateur life

**Nicolai Tangen: What happens if you leave Citadel? **

Ken Griffin: That's a great question, and the good news is that I have longest people here who can run this business successfully, and I can do without it. I don't want to leave, I love my job, I love the people I work with, it's really a passion for me. So I don't want to think about that day, but if something mishag happens, I have great partners who will continue to run this company.

**Nicolai Tangen: If you were to go back to university again, what would you study? **

Ken Griffin: Wow, so am I when I was 20, or am I at this age?

Nicolai Tangen: You are your current age. **

Ken Griffin: I'll probably go back to college and learn a little bit about philosophy and the areas of government, which have always been issues of interest to me. Good governance is important, and having a solid philosophical foundation that I think contributes to better policymaking. I'll probably also spend some time studying math and computer science to get a better understanding of today's latest technology. It's been a long time since I've studied math or computer science in the classroom, and it would be interesting to see how far the world has come in these fields today.

Nicolai Tangen: What are you most curious about? **

Ken Griffin: I'd say my curiosity encompasses innovation from biotechnology to computer science, so STEM (an acronym for Science, Technology, Engineering, Mathematics) is my area of interest. I am very interested in the development of STEM fields around the world, from nuclear fission and fusion to microprocessors and genetic engineering, and I have an insatiable desire to learn more about the issues and developments long these broad fields.

Nicolai Tangen: How do you relax when you're not spending time on it? **

Ken Griffin: I'm a big fan of cycling, Miami has great bike trails, and I'm very lucky to have three young kids, all longest teenagers, so most of the time, I'm basically spending time with them, consuming all my shorter time.

Nicolai Tangen: Speaking of young people, we have k tens of thousands of young listeners, what advice do you have for young people? **

Ken Griffin: Now, you know, my advice hasn't changed longest in thirty years, pursue what you're passionate about, and to excel at something, you have to be passionate about the job. If you don't have passion, you won't excel at it, you won't be happy with your career, and you need to pursue things that really make you want to wake up in the morning. It could be becoming a doctor, it could be becoming a lawyer, it could be stock picking, but you have to find what you want to do when you get up in the morning, what is something that motivates you internally.

If you are driven by extrinsic motivations, you will feel that life is superficial and you need to find the inner calling in life. I remember there was a young woman here, about thirty years ago, and she was very talented on the investment team, and she was with us for about a year and a half or two, and she and her manager walked in and said she was thinking about going to medical school, and I need you to convince her to stay at Citadel. I said, well, the problem is, as soon as she walks into my office, I offer to write her a letter of recommendation, the world desperately needs another good doctor, and if that's what she wants to be, I want to help her achieve her dream.

Nicolai Tangen: So, let's end with such a great place where you seem to have achieved your dream and you're trying to make Citadel the most successful investment firm ever, so I have to sincerely congratulate you and thank you for coming to the show today, thank you very much. **

Link to original article

Lisbon, Portugal, May 9th, 2024, Chainwire

Azuro, the leading liquidity layer for onchain predictions, and Chiliz, the world’s premier sports and entertainment blockchain, are partnering up to accelerate the adoption of onchain sport prediction markets. These efforts will allow millions of fans worldwide to further support and cheer for their favorite teams and athletes through fair and transparent prediction apps.

Chiliz Chain is renowned for its blockchain solutions that transform fan engagement in sports through features like fan tokens and interactive engagement platforms. Through its flagship venture Socios.com, the network has expanded significantly to support more than 80 sport-related fan tokens and 2M+ eco users. Team-specific fan tokens for the best football clubs, including FC Barcelona, Inter Milan, Juventus, Paris Saint-Germain, Manchester City, and many more, are all currently supported by Chiliz Chain through Socios.

The network leverages a Proof of Staked Authority (PoSA) consensus algorithm which allows smart contract developers, validators, stakers, and other stakeholders to actively interact with the chain. Chiliz Chain is built to power sports and entertainment applications with a focus on brand IP and project use-case integrity.

For Chiliz, partnering with Azuro represents a step toward tapping into the rapidly growing onchain prediction markets by the hand of the de facto infrastructure layer for sports prediction applications across EVM chains. Its innovative liquidity pool design, advanced tooling and oracle solutions allow apps to launch without upfront investment or running costs, enabling them to focus entirely on user acquisition, engagement and monetization from minute one.

Azuro’s robust platform, currently supports over 25 active applications with transaction volumes surpassing $290 million, offers an ideal environment for Chiliz to expand its offerings in the sports and entertainment sectors.

As part of this collaboration, Chiliz will be integrated into the Azuro Protocol, adding to the existing supported chains such as Polygon and Gnosis Chain. This integration will enable Chiliz to expand its reach within sports-focused prediction applications. New and existing builders relying on Azuro infrastructure will be able to connect their apps to the Chiliz Chain and allow their users to place transactions with the blockchain’s native token CHZ.

“Integrating with Azuro marks a pivotal move for Chiliz Chain to capitalize on the rapidly expanding onchain prediction market,” said Alexandre Dreyfus, CEO of Chiliz and Socios.com. “Leveraging Azuro’s advanced infrastructure, we’re empowering developers to innovate within the sports and gaming sectors.”

Rossen, a core contributor at Azuro, stated, “The onchain prediction markets have always been strongly tied to the sports and entertainment sector. Working alongside Chiliz Chain, the leading blockchain in this segment, feels like an obvious step for us. Azuro’s robust infrastructure will help expand Chiliz Chain’s usability within the fast-growing onchain prediction markets.”

Looking ahead, Azuro and Chiliz will be soon launching a co-sponsored grants program aimed at incentivizing app developers to build on their combined infrastructure. These initiatives, including bounties for the first apps, are designed to fuel further adoption of onchain prediction markets, and aligned with Azuro’s vision for setting new transparency and fairness standards.

About Azuro

Azuro is the onchain predictions layer. It consists of modular tooling, oracle and liquidity solutions for EVM chains to host powerful prediction and gaming apps.

With its unique infrastructure layer approach Azuro makes on-chain predictions and gaming portable and composable. It allows anyone to engage and monetize users by building apps, integrations, and products quickly, permissionlessly and with zero upfront or running costs.

For more information or press inquiries, please contact [email protected]

• Website:
• Docs:
• Github:
• Onchain activity:

About Chiliz

Chiliz is the home of SportFi, where sports brands meet decentralized opportunities. Its infrastructure is driven by the Chiliz Chain, the first Layer-1 EVM compatible blockchain for sports and entertainment which now has a diverse eco, fuelled by Chiliz native token CHZ. Its primary product on the Chiliz Chain, Socios.com, hosts a global community of over two million users, which makes it the largest non-finance/trading-centric Web3 consumer-facing product globally by user base. It hase partnerships with countless brands, including the giants of world sport such as FC Barcelona, Paris Saint-Germain, Manchester City, Juventus, S.S.C Napoli, Inter Milan, AC Milan, Arsenal, Atlético Madrid, A.S. Roma and major F1 teams

• Website:

Contact

Azuro team [email protected]

Original author: Alana Levin

Original compilation: Deep Tide TechFlow

Over the past two years, new AI models have emerged. These AI models are capable of completing longest types of tasks—from finding information and answering questions, to providing customer support, proofreading documents, generating content, and more.

Xu long such tasks are objective and have clear optimization functions: find the right answer, identify the most relevant information, detect any errors or anomalies, etc.

But there are also models whose output is extremely subjective, such as making "good" artwork or developing "fun" videos. I call these "models with taste". Taste-based models tend to be more difficult to optimize because they are a mixture of collective versus individual decisions; There are no obvious answers or outputs. As a result, frequent feedback is especially valuable in helping the model stay up-to-date on cultural preferences.

Nowadays, there are roughly two ways to develop a model's "taste":

• Based on user-generated content/data (such as Twitter or Reddit feeds), this could theoretically reveal the latest movements of human concern (and thus act as a representation of taste).
• Leverage a community of human "tastemakers" to help models actively train around their preferences.

The first approach has longest undesirable situations. The data may be siloed (e.g., Reddit shutting down its API) or introduce bias (e.g., only a portion of the data is shared). A model can also be over-adapted to platform-specific algorithms, especially if it has a limited selection of data sources. This may not sound important until people start imagining a plethora of new media based on Twitter's popular content generation. It's not ideal.

The latter approach, a network of human feedback, avoids the risks long above. There may still be bias, but only because it includes the preferences of community members who have opted in to help train the model. Therefore, the key is to ensure that these community members, the people who develop the "taste", are closely related to the model that truly cultivates good taste.

Encryption tracks can help facilitate this consistency. Providing ownership in the model/giving participating members a financial benefit from the model's output can motivate them to actually participate. Crypto Assets also makes participation more open and easy: anyone, anywhere in the world, can contribute, as long as they have on-chain Wallet and an internet connection.

A notable example is the Botto project. Botto is an autonomous artist with $BOTTO Token holders who have the ability to help train models on a weekly basis. The training is simple: participants vote upvote or downvote on a variety of images, and Botto learns from the members' preferences. At the end of the week, the most popular entries are auctioned, and participants who helped train Botto that week get paid.

Art is just one category with a model of taste. Others may include film, television, other forms of storytelling (novels, short stories), comedy, and advertising/branding campaigns. Even a few years ago, these tasteful models would have been impossible. These tools are less expressive and slower, and cannot reliably expect the model to produce cohesive or (in the case of video) realistic output. Only today does this become possible.

Importantly, tasteful models have a large (and rising) addressable market. Art is a multi-billion dollar market. Content consumed online accounts for trillions of hours of attention every year. If people are already planning to spend time and money on these forms of entertainment, it seems reasonable to give them a fair share of production, which will create not only a more active user base, but also a more satisfied user base. Imagine that at the Academy Award for Best Picture, the main participants were audiences who helped train and develop the storyline, or that there was a whole new award for a community-created film.

I think it's about creating a new category of content, not replacing existing creations. This is similar to how smartphones and Instagram have made everyone a photographer, and the existence of these new technologies has not eliminated the work of actual photographers, in fact, it may instead allow more long people to appreciate the work of photographers. The same is true of tasteful models: they expand each of these categories by taking advantage of new technologies, in this case encryption tracks for consumer ownership and economic docking, to create a new form of engagement.

Over the past few years, we've seen k new models emerge. There are likely to be millions (or longest) of new models emerging over the next few years, and at least some should strive to engage stakeholders in new ways, from greater openness and accessibility, to experimenting with new ownership structures with incentives. Tasteful models are an area that is particularly suited to this kind of innovation, but they cannot be the last.

Link to original article

Original author: Weilin

Following the last round of cat coins instead of dog coins rushing to the forefront of the market, the Meme coin market recently staged a "Elvis Presley competition". First of all, POPCAT and Shark Cat (Shark Cat, Token SC) were once fear, uncertainty and doubt (FUD) by cat coin users because of the IP copyright issue of the logo, but later Shark Cat obtained the copyright from the cat owner with the help of a lawyer, causing the coin price of Shark Cat (SC) to Rebound. At present, POPCAT has not solved the related problems, and it has also prompted some users to transfer their Holdings to SC.

At the same time, the recent rebellion against VC has also affected the MEME segment of cat-themed Token. In this regard, users are using their own ways to support the community-based meme cat coins. Some users believe that POPCAT and MICHI, Shark Cat (shark cat) represent community meme coins, while similar projects such as MEW and MANEKI are suspected to be supported by VC, and there is obviously an internal struggle in the cat system Memecoin.

From the current market capitalization ranking, POPCAT is firmly in the first place in market capitalization, with more than 45,000 holders, showing strong community power. And MICHI's rapid market capitalization rise since its deployment on April 8 is also eye-catching.

POPCAT, SC were accidentally fear, uncertainty and doubt (FUD) due to copyright

POPCAT is now the most market capitalization cat coin, with a market capitalization of more than $440 million on CoinGecko data as of May 9. From late March to mid-April, its market capitalization falls from $356 million to $120 million, but has pumped another $480 million since mid-April.

Shark Cat is also one of the well-performing, full-fledged cat-themed meme coins at the moment. The most recent notable rise came on the evening of May 1, when SC pump from $0.045 to $0.1245 on the night of May 2, a pump of up to 176.7%.

The rise of Shark Cat is mainly due to the Shark Cat team locking in their logo rights. Recently there has been a very long fear, uncertainty and doubt (FUD) and dramatic incident around this issue, where the owner of the shark cat (real name Nala) asked to be paid by the shark cat because of the IP and wanted to control the right to use her cat image.

Soon after, the team resolved the fear, uncertainty and doubt (FUD) issue by acquiring Nala's intellectual property. This also means that shark cats may show greater potential for rise and may go one step further.

At the same time, POPCAT also suffered from fear, uncertainty and doubt (FUD) because it did not have IP rights. The owner of the cat of origin of this meme even voiced his opposition to Crypto Assets.

Xavier, the owner of the Popcat cat, said on the X platform: "My cat is my cat and I am totally against Crypto Assets. (My cat is my cat and I am absolutely against cryptocurrency)“

However, there are also users who have expressed their continued support for POPCAT: "Obviously, these people are from other cat communities and want to rotate".

The popularity of POPCAT has not decreased due to fear, uncertainty and doubt (FUD). From April 21 to April 27, Google Trends showed a new high in interest in the topic of Popcat, surpassing its all-time peak.

However, there are also some users who choose to transfer assets from POPCAT to SC during the copyright turmoil. One user said: "$POPCAT was fud, the same IP problem as $SC, it is said to be MewsWorld(MEW) fud, but unfortunately the money ended up flowing to $SC." $SC is the only meme that solves the problem of physical cat IPs, so I moved a part of $POPCAT's Position to $SC. ”

The wind of anti-VC is blowing towards the cat coin, and the world has suffered VC for a long time?

In the meme coin market, a recent Twitter discussion thread by venture capital firm A16Z CTO Eddy Lazzarin about the value of the meme coin caused controversy, Eddy said: "Memecoin has changed the way the public, regulators and entrepreneurs think about Crypto Assets. At best, it looks like a casino fraught with risk, or a series of false promises to cover up the casino. This has a profound impact on the adoption of encryption, laws and regulations, and the behavior of Builders. I see these devastation every day. "

Many users in the community immediately objected, saying, "Meme is an opportunity for us to flip the big organization." I love memes, and while longest memes cost me money, I just need to grab one to make a big difference in my life. But when I invest in a project invested by a large institution, I have to wait many days to get a small return. "

This discussion has also affected the niche of cat coins. In the dispute with the VC cat, at present, the pure community meme has achieved a phased victory.

User @free_electron 0 said: "Now every time you tweet $POPCAT you get a swarm of bots replying to the same fear, uncertainty and doubt (FUD) message and telling you to buy maneki or mew." Imagine that you are so afraid of a Token that you have to use such a lazy strategy. The VC is in trouble and Degens wins again. ”

Through the discussion on Twitter, it can be seen that users believe that POPCAT, and MICHI, Shark Cat (shark cat), etc. are considered to belong to community meme coins, while MEW and MANEKI are opposed by many users, believing that they represent the participation of VC, and VC holds a large share of Token behind it. Although the current level of VC participation of meme coins is not easy to verify, it is clear that the battle for cat coins is continuing to add heat to this zone and constantly affect their respective ranking rotations.

As of May 7, the 3 Token with the largest market capitalization pump based on trading pairs with SOL are Michi (+547%), SC (+216%), and POPCAT (+81%). Among the top five tokens in terms of percentage increase in Wallet over the past two weeks, Michi (+97%) ranked first, POPCAT (+21%) ranked second, and SC ranked fourth (+7%).

Among them, MICHI has performed well, with its market capitalization rising from the $3 million level to $110 million on May 8 since its deployment on April 8 to May 8. As of press time, Popcat also has a staggering 45, 000 Token holders, and that number continues to rise.

As of the morning of May 9, the price of cat-themed meme coins has pullbacked overall. According to CoinGecko data, the market capitalization top 10 cat coin are POPCAT ($442 million), MEW ($318 million), MOG ($177 million), WEN ($125 million), TOSHI ($120 million), MANEKI ($54.16 million), MEOW ($35.51 million), CAT ($34.6 million), $CWIF ($28.13 million), and PAJAMAS CAT ( $21.09 million).

As of 9 a.m. on May 9, on the homepage of Dexscreener, many popular tokens within 6 hours are also cat-themed Tokens or cat-related Tokens, such as CATGPT, CRODIE, PUSS, CATZILLA, etc.

From IP controversy to rebellion against VC coin, the narrative in the cat coin community has clearly entered the next phase. At the moment when "Elvis Presley" is in full swing, we will wait and see which targets users will choose and what wonderful stories will continue to be staged.

Link to original article

*Original: *Multidimensional gas pricing

Compilation: Odaily Asher

In the Ethereum network, resources are limited and priced through a single resource, "gas". Gas is a measure of the "computational effort" required to process a particular transaction or block. Gas incorporates longest types of "effort", the main of which are:

• RAW CALCULATIONS (E.G. ADD, MULTIPLY)
• Read and write Ethereum storage (e.g. SSTORE, SLOAD, ETH transfers)
• Data bandwidth
• The cost of generating a Block ZK-SNARK proof

For example, the deal cost a total of 47085 Gas. This includes: (i) the "base fee" of 21,000 gas; (ii) 1556 gas bytes of calldata used as part of the transaction; (iii) 16,500 gas for read/write storage; (iv) 2149 Gas for the production of logs; The rest is used to perform the EVM. The transaction fee that users have to pay is proportional to the gas consumed by the transaction. A Block long can contain up to 30 million gas, and the gas price is constantly adjusted through the EIP-1559 target mechanism to ensure that the Block contains an average of 15 million gas.

Demo case

There is one main advantage of this approach: since all transactions are merged into one virtual resource, the market design is very simple. It's easy to optimize transactions to minimize costs, it's relatively easy to optimize blocks for the highest possible fees (excluding MEV), and there are no weird incentives to encourage certain transactions to be bundled with other transactions to save fees.

But there is also a major inefficiency with this approach: it treats different resources as if they could be converted into each other, which is not the case with the actual basic constraints that the network can handle. One way to understand this is to look at the following diagram:

If n resources have significant security limits, one-dimensional gas can drop throughput by up to n times. As a result, there has been a long history of interest in the concept of longing gas, and with EIP-4844, we can actually use longest gas on Ethereum today. This article explores the benefits of this approach, as well as the prospects for further enhancing it. **

Blobs: Cancun upgraded longest gas

At the beginning of this year, the average block size was 150 kB. A large part of this is convolutional data: an L2 protocol that stores data on-chain for security. The cost of this data is high: although the Transaction Cost on the convolution is 5-10 times lower than the corresponding Transaction Cost on Ethereum L1, even this is too expensive for many long use cases.

This problem is ultimately solved by introducing a separate convolution-friendly data shorts (called "blobs") in each block.

After the Cancun upgrade, a Ethereum Block long can contain (i) 30 million gas and (ii) 6 blobs, each of which can contain approximately 125 kB of calldata. Both resources have independent prices, adjusted by an independent pricing mechanism similar to EIP-1559, with the goal of using an average of 15 million gas and 3 blobs per block.

As a result, the cost of convolution is 100 times drop, the volume of convolution is increased by a factor of 3 long, and the theoretical maximum Block size increases only slightly: from 1.9 MB to 2.6 MB.

Rolling Money Laundering, courtesy of growthepie.xyz. The Dencun fork occurred on March 13, 2024, introducing longest priced blobs

Longest gas and stateless clients

In the future, stateless clients will face the problem of storing proofs. A stateless client is a new type of client that is able to verify a Blockchain with little or no data stored locally. It accepts proofs to verify the Ethereum state of a specific part of a block without storing any data itself.

An average block performs about 1000 storage reads and writes, but the theoretical maximum can be k. The current plan is to support stateless clients by migrating Ethereum's state tree design from the Merkle Patricia tree to the Verkle tree. However, Verkle trees are not quantum-resistant and do not work with newer STARK proof systems.

As a result, long want to support stateless clients with binary Merkle trees and STARKs, either skipping Verkle altogether or upgrading a few years after the Verkle migration. While STARK proofs branched by binary hash trees have longest advantages, they are slower to generate proofs and cannot meet the need for high speeds.

It is expected that there will be a time in the future where you will be able to prove 1000 values in less than a second, but you will not be able to reach the proof speed of 14,285 values. To solve this problem, the concept of longest gas was proposed. This approach can limit and charge storage access separately, ensuring an average of 1,000 storage visits per block, while setting a limit of 2,000 per block to improve the security and efficiency of the network.

Wider application of longest gas

State size rises is another resource to consider. When increasing the size of the Ethereum status, Full Node need to hold more long data. Unlike other resources, state size rises are limited primarily by long-term sustained usage rather than short-term spikes. Therefore, to handle operations that rise in state size, consider adding a separate gas dimension. The goal of this approach is to set a floating price that targets a specific average usage, rather than setting a per-block limit.

This demonstrates the power of long-dimensional gas long wick candle ask different questions for each resource: (i) the ideal average usage of each resource is long small; (ii) The maximum safe usage of each resource is longest. By setting these parameters, the price of gas can be adjusted based on the security of the network, rather than the maximum usage per block. When dealing with more complex cases, you can use longest types of gas, for example, a zero-to-non-zero SSTORE operation may need to consume different types of gas, such as stateless client-proof gas and storage scale-out gas.

Maximum per transaction: Get longest gas weaker but simpler strategy

In a single-dimensional gas system, the cost of gas for a transaction is determined based on the data and the gas consumed by both. However, in a longest gas system, the cost of gas can be determined based on the main resources consumed by the transaction. This approach increases throughput while maintaining security.

EIP-7623 proposes a similar scheme by increasing the minimum price per byte to reduce the short of transactions in the Block, but it also leads to problems such as high fees for a single transaction with long resource consumption, while also creating an incentive for data-intensive and compute-intensive transactions to bundle together to save costs. While this approach has its limitations, the benefits are well worth it, but there are better solutions if you are willing to put in more long development work.

Longest EIP-1559: Harder but more desirable strategy

At its core, long dimensional EIP-1559 adjusts the base charge for blobs by tracking the excess_blobs parameter to ensure that the average usage of the Block remains at the target level.

When the number of blobs contained in a block exceeds the target value, the base fee is increased to drop usage; Otherwise, it will decrease. This pricing mechanism causes the transaction price within the block to dynamically adjust to keep the Block half filled. At the same time, a short-term surge in usage will also trigger a throttling mechanism, ensuring fair competition in transactions.

In Ethereum, this way of pricing gas has been around for longing: back in 2020, EIP-1559 introduced a very similar mechanism. **With the introduction of EIP-4844, there are now two floating prices for Gas and Blob. **

For users and block builders, the experience is similar to before, but with two separate fees to accommodate. However, for developers, EVM functionality needs to be redesigned to accommodate longing price and longing restrictive environments, which can add some challenges.

Longing pricing, EVM, and subcalls

In the EVM, there are two types of gas limits: a total gas limit set for each transaction, and a separate gas limit when the contract calls other contracts. This allows the contract to call a contract it doesn't trust, while ensuring that there is still gas left after the call for other computations. However, there are challenges in achieving longest gas pricing between different types of executions. This longing dimensional scenario requires subcalls to provide longing limits for each gas type, which would make deep changes to the EVM and is not compatible with existing applications.

Longest gas proposals typically stick to only two dimensions: data and execution. Data is distributed outside of the EVM, so no internal changes are required to be priced separately. For developers, this means redesigning the EVM and its surrounding infrastructure to accommodate longing prices and longing limitations. In some cases, optimization can also become more difficult because it is not clear which approach is more effective, which can affect the development process.

While there are some challenges, they can be addressed by implementing a scenario similar to EIP-7623. This scenario allows you to charge an additional fee for storage operations and issue a refund at the end of the transaction to ensure that the primary call still has enough gas to perform subsequent operations.

Summary

In either case, it's worth emphasizing that once longest execution gas starts to be introduced, the complexity of the system increases significantly, which seems unavoidable.

As a result, we are faced with a complex choice: are we willing to accept more long complexity at the EVM level in exchange for unlocking significant benefits of L1 scalability, and if so, which specific proposal is better for protocol economies and application developers? Chances are, the best solutions are neither the previously mentioned nor the ones mentioned above, and there is still room for more elegant and effective solutions.

Today's News Tips:

Trump Announces He Is Accepting U.S. Presidential Campaign Contributions in the Form of Crypto Assets

Bloomberg: Musk's xAI completes financing as soon as this week, valuing $18 billion

Uniswap founder calls for stop prematurely setting high valuations: encryption projects need to prove their value before talking about unicorns

friend.tech: 2/3 of the protocol fees in Club Key redemption transactions will begin to be refunded to APP users in the coming days

Vitalik published an article to discuss the importance and implementation of the introduction of a longest gas pricing mechanism in Ethereum

Puffer Finance Announces Official Launch of Its Mainnet

Encryption trading platform Arbelos closes $28 million funding round led by Dragonfly

Bitcoin Mining Difficulty down 5.63% to 83.15T, expected to continue next time

Regulatory News

The U.S. House of Representatives passed a resolution aimed at overturning the SEC's encryption accounting policies

According to The Block, the U.S. House of Representatives voted to pass a resolution aimed at overturning the SEC's accounting standard announcement for Crypto Assets custody. The vote was 228-182, with longest Republicans in favor and 21 Democrats voting in favor. The announcement was first published in 2022 and has sparked controversy over the past year. It requires Crypto Assets custody companies to record Crypto Assets held by customers as liabilities on their balance sheets. The encryption industry is concerned that the move could prevent banks from protecting digital assets. It is unclear whether this resolution will become law. But on Wednesday, the White House issued a "government policy statement" saying President Biden would veto the resolution. The White House said that "limiting the SEC's ability to maintain a comprehensive and effective financial regulatory framework for encryption assets would create significant financial instability and market uncertainty." The resolution is likely to be submitted to the Senate Banking Committee, followed by a vote in front of the full Senate membership.

Trump announced that he is accepting U.S. presidential campaign contributions in the form of Crypto Assets

According to Watcher.Guru, Donald Trump announced that he is accepting US presidential campaign contributions in the form of Crypto Assets. "Biden doesn't even know what Crypto Assets are, and if you like Crypto Assets, you'd better vote for Trump," Trump said. Trump also promised that he would stop U.S. hostility toward Crypto Assets and embrace it.

Later news, affected by Trump's remarks, the meme coin named after TRUMP pumped more than 26% in 24 hours.

Taiwan's new Money Laundering Prevention Law: Unregistered virtual asset service providers face up to 2 years in prison

According to Ab Media, Taiwan recently passed a new regulation called the "New Four Laws on Combating Fraud", which aims to further strengthen the fight against fraud and strictly regulate money laundering prevention measures. This package of laws includes the Regulations on the Prevention of Fraud Crimes, the Money Laundering Prevention Law, the Science and Technology Investigation and Protection Law, and the Communications Protection and Supervision Law, aiming to comprehensively enhance the government's ability to prevent various crimes. In particular, the amendments to the Money Laundering Prevention Law long wick candle for virtual asset service providers, including three main directions of amendment. First, any virtual asset service provider that fails to complete the Money Laundering prevention registration will face up to 2 years in prison. Second, the law also adds special Money Laundering offences, long wick candle imposes a prison term of 6 months to 5 years for the use of virtual asset accounts and third-party payment accounts as Money Laundering tools, and can impose fines of up to NT$50 million coin.

AI

Bloomberg: Musk's xAI will complete its financing as soon as this week, valuing it at $18 billion

According to Bloomberg, Elon Musk's artificial intelligence startup xAI will complete this round of funding as soon as this week, valuing it at about $18 billion, and Sequoia is one of the potential investors. Bloomberg also reported last week that xAI will raise $6 billion (currently about 43.38 billion yuan in RMB coins) in a new round of funding, which was initially expected to be $3 billion, but the valuation has pumped all the way due to the subsequent large number of participants. Sources previously told Bloomberg that Musk's cronies at Sequoia Capital and Future Ventures, as well as other undisclosed investors, joined the funding war. The new round of financing will help xAI obtain more long AI Computing Power resources to compete with openAI, Anthropic rivals: Musk recently said that xAI's next-generation Grok model is being trained on 20,000 NVIDIA H100s, and the demand for AI GPUs in the future Grok 3 will rise to 100,000.

Project News

Grayscale CEO: The company will focus on Spot Ethereum products

Michael Sonnenshein, CEO of Grayscale Investments, said at an event hosted by the Financial Times in London on Wednesday that the company will focus on converting its Ethereum trust funds into Spot ETF products, DL News reported; The company is withdrawing its application because longest futures products are already available to investors; Sometimes we apply for a product, which doesn't necessarily mean it's going to be on the market. Sonnenshein said that while it is difficult to know what the US SEC thinks about Ethereum, Grayscale is "optimistic that the SEC will make the right decision for investors." He added: "Grayscale Ethereum Trust is already a company that files reports with the SEC. We file 10-K and 10-Q (filings with the SEC), and we've been a push for regulators to allow Crypto Assets further into the regulatory landscape. Previously, it was reported yesterday that Grayscale had withdrawn its Ethereum futures ETF application to the US SEC.

Uniswap founders call for an end to prematurely setting high valuations: encryption projects need to prove their value before talking about unicorns

Uniswap founder Hayden Adams said in a post on the X platform that Crypto Assets founders and venture capitalists need to stop valuing more than $1 billion on projects that have not yet released tokens in the early stages of development until they are truly worth the valuation. Building something worth 7-9 figure dollars is an incredible achievement, and not every project needs to be a unicorn when it first starts. "Maybe a little naïve, but I think you can make a long lot more money by raising money at a fair valuation as a founder (real people want rise short) and as a venture capitalist investing at a fair valuation (LPs want rise short). It's just a little harder to do it. ”

friend.tech: In the coming days, 2/3 of the protocol fees in Club Key redemption transactions will be refunded to APP users

Decentralization social media platform friend.tech said on the X platform that in the next few days, it will begin to return 2/3 of the protocol fees in Club Key redemption transactions to APP users. 0.5% of the value of each exchange transaction will go to the Club Chair, and the exchange trader will also pay 0.5% less in total. This was announced in advance to give users time to reconsider their votes. This change will use the referral fee feature in the Clubs contract. Other clients will be able to decide for themselves where the referral fee goes for each trade.

ZeroLend: Airdrop claims have been expanded to include Wallets with at least 1 earlyZERO

Decentralization long Chain lending protocol ZeroLend said on platform X that it has uploaded 450,000 long Wallet to the Airdrop claim website. Previously, Snapshot Cutoff required at least 20,000 earlyZERO. Any Wallet with at least 1 earlyZERO has now been added to ensure 1:1 fulfillment of the earlyZERO to ZERO promise. At this point, it is expected that most of the Airdrop distribution will officially end, but there may still be some areas that need to be dealt with.

Injective Plans to Build Layer-3 Network "inEVM" on Arbitrum

According to CoinDesk, Injective Labs has announced plans to launch its standalone Layer-3 network, "inEVM", based on Arbitrum's Layer-2 technology. The network will connect three blockchain networks, Ethereum, Cosmos and Solana, leveraging the Arbitrum Orbit toolkit to improve interoperability and composability. The "inEVM" is compatible with the Ethereum Virtual Machine (EVM), providing developers with new opportunities to build applications within the Ethereum Layer-2 ecosystem.

Vitalik published an article to discuss the importance and implementation of the introduction of a longest gas pricing mechanism in Ethereum

Ethereum founder Vitalik Buterin released an article titled "Longing Gas Pricing" to explore the importance and feasible path of introducing a longing gas pricing mechanism in Ethereum. Vitalik pointed out that Ethereum currently simplifies the pricing and limits of all resources into a single dimension of gas, which simplifies market design but also causes significant efficiency losses. If the network needs to manage n different resources, single-dimensional gas may cause a throughput loss of n times long. EIP-4844 introduces longest pricing for the first time in Ethereum, adding dedicated blob data zones and setting independent prices and limits for them. This improvement drops the cost of rollups by 100 times and increases the volume by more than 3 times, while the theoretical maximum block size increases only slightly.

The article also discusses the need for longest gas when introducing storage proofs for stateless clients. Due to the quantum security implications of the Verkle tree scheme, the community wants to use Binary Merkle trees and STARKs instead, but their proof generation is longer slower. By pricing independently and restricting storage access, you can avoid the cost issues associated with higher gas prices while maintaining stability. In addition, Vitalik also proposed two solutions to achieve longest gas pricing: 1. It is relatively simple to set the resource upper limit of each transaction, that is, the gas of each transaction is priced according to the larger value of the data and computing resources consumed, as suggested by EIP-7623. 2. The ideal, but more complex, scenario is to have a dynamic adjustment mechanism similar to EIP-1559 for each resource.

Vitalik emphasized that the introduction of longest execution gas introduces some complexity at the EVM level, but the trade-off is worth it in order to safely improve the scalability of Ethereum L1. The community also needs to further explore more elegant designs in terms of the economics and development friendliness of the scheme.

EOS new tokenomics model is planned to be deployed to Mainnet by the end of May, and EOS stake rewards are planned to be launched by the end of June

Yves La Rose, CEO of the EOS Network Foundation (ENF), said on the X platform: "Our current goal is to complete the coding, auditing, testing and submission of the new EOS tokenomics models as MSIGs (multisignature proposals) in order to deploy them to Mainnet by the end of May. After this initial activation phase, we aim to launch EOS stake rewards by the end of June. Previously, the main content of EOS's new tokenomics proposal is to curb inflation with a fixed supply of 2.1 billion tokens and destroy 80% of the total future supply.

io.net: Ignition Season 1 credits are now live

Solana ecosystem DePIN protocol io.net announced on the X platform that Ignition Season 1 points are now live.

Puffer Finance has announced that its Mainnet has gone live

Ethereum liquid staking protocol Puffer Finance announced on the X platform that the Puffer Mainnet has been officially launched. The Mainnet launch marks the fourth chapter of Crunchy Carrot's mission. Now users can deposit ETH, stETH or wstETH. The fourth chapter of Crunchy Carrot is coming soon with an improved points system. Puffer Finance also said that the over-centralization of LST could threaten Ethereum's Decentralization, leading to risks such as transaction censorship, manipulation of MEV extractions, and affecting block time. These actions threaten the integrity of the network and its decentralization. To address this, in the coming weeks, all stETH deposits will be converted to ETH to fund a new wave of longest validators.

Financing News

Modular blockchain Sophon raised $60 million through Node Sales

According to The Block, Sophon, a modular blockchain platform based on zkSync, raised $60 million through Node Sales. Investors include Maven 11, Paper Ventures, Spartan Group, and SevenX Ventures. It is reported that the sale provides the purchase of 200,000 nodes, using a tiered pricing model, with prices ranging from 0.0813 ETH to 2.0556 ETH per Node.

Cryptography startup Lagrange closed a $13 million seed round led by Founders Fund

According to CoinDesk, Peter Thiel-backed encryption technology startup Lagrange managed to raise $13 million. The company focuses on developing advanced encryption solutions designed to enhance data security and privacy. In addition to the Founders Fund, Lagrange's seed round includes participation from Archetype Ventures, 1kx, Maven11, Fenbushi Capital, Volt Capital, CMT Digital, Mantle, and Eco. Lagrange Labs is an encryption startup based on the Ethereum EigenLayer recollateral platform. Leveraging its proprietary technology, Lagrange offers a new approach to encryption that provides a higher level of data protection for businesses and individual users without sacrificing performance. The financing will be used to further develop its encryption technology and expand its market reach.

Encryption trading platform Arbelos closed a $28 million funding round led by Dragonfly

Crypto Assets trading platform Arbelos Markets announced the closing of a $28 million funding round led by Dragonfly Capital, CoinDesk reported. The round also includes participation from FalcolnX, Circle, Paxos, Polygon and Deribit. Arbelos Markets uses the funds to enhance its trading capabilities in the derivatives and OTC trading markets, with a focus on serving institutional clients such as hedge funds and venture capital firms. Arbelos' business focuses on providing these institutional participants with the necessary trading liquidity and acting as counterparties to products such as options and futures. The company's co-founders, Joshua Lim and Shiliang Tang, both have backgrounds in TradFi and Crypto Assets trading, and they plan to use the funding to drive further growth and innovation while improving the transparency and Risk Management capabilities of the trading platform.

Web3 game developer Seeds Labs closed a $12 million seed round of funding

Web3 game developer Seeds Labs announced the closing of a $12 million seed round with participation from Avalanche's Blizzard Fund, Solana Foundation, Krust, Hashkey Capital, UOB Ventures, Signum Capital, IVC and Emoote. According to reports, Seeds Labs was founded in 2021, and its flagship global longest platform interconnected melee battle royale Web3 game Bladerite is scheduled to be released this month.

IMPORTANT FIGURES

Robinhood's Q1 Crypto Assets volume rise 224% YoY

Robinhood reported first-quarter earnings on Wednesday, according to The Block. Transaction-based revenue rises 59% year-over-year to $329 million. Robinhood said this was mainly due to Crypto Assets revenue of $126 million, a rise of 232%, and options income of $154 million, a rise of 16%. Robinhood's assets under custody (AUC) rise 65% to $129.6 billion, driven by rise in equity and Crypto Assets valuations. Net income increased to $157 million, compared with a net loss of $511 million in the year-ago quarter. EPS was $0.18, above analysts' estimates of $0.6, and revenue was $618 million, above analysts' estimates of $549 million. It is worth noting that the nominal volume of Crypto Assets rise 224% year-on-year to $36 billion.

MakerDAO: The supply of DAI has rise 1 billion in the past two months, and it has become the largest stablecoin on-chain volume in April

MakerDAO posted on the X platform that in the past two months, the supply of DAI has surged by nearly 1 billion. The DAI supply increased from 4.4 billion to 5.4 billion in 60 days after SparkLend's adjustments to the Stability rate and DAI borrowing APY and the DSR Intrerest Rate rise. In addition to the rise supply, DAI set a new record in April, with on-chain trading volume reaching $636.72 billion, making it the largest stablecoin in monthly on-chain volume. The Dai Savings Intrerest Rate (DSR) has also shown positive momentum, with DSRs steadily rise in recent months, with total deposits exceeding $2 billion last week.

Data: 6 Hong Kong virtual asset ETFs traded about HK$19.04 million today, down 27% from yesterday

Hong Kong stock market data shows that as of the close, the turnover of 6 Hong Kong virtual asset ETFs today was HK$19.0395 million, down 32.18% from yesterday. Among them, the trading volume of Huaxia Bitcoin ETF (3042.HK) was HK $4.0287 million, The trading volume of ChinaAMC Ether coin ETF (3046.HK) was HK$816,700, the trading volume of Harvest Bitcoin ETF (3439.HK) was HK$9,101,500, the trading volume of Harvest Ether coin ETF (3179.HK) was HK$2,453,700, the trading volume of Bosera HashKey Bitcoin ETF (3008.HK) was HK$2,456,500, and the trading volume of Bosera HashKey Ether coin ETF (3009.HK) was HK$182,400.

Earlier today, it was reported that the total subscription volume of Hong Kong Bitcoin ETF yesterday was 101.6, Ethereum ETF showing net redemption for two consecutive days.

The total net inflow of U.S. Bitcoin Spot ETF yesterday was $11.5409 million, with a ETF net asset ratio of 4.25%

According to SoSoValue data, the total net inflow of US Bitcoin Spot ETF yesterday (May 8) was $11.5409 million. Yesterday's Grayscale ETF GBTC had a single-day net outflow of $0.00, and the current historical GBTC net outflow is $17.487 billion. The Bitcoin Spot ETF with the most long single-day net inflows yesterday was Bitwise ETF BITB, with a single-day net inflow of $11.5409 million, and the current total historical net inflow of BITB is $1.758 billion. As of press time, the total net asset value of Bitcoin Spot ETF was US$51.504 billion, the ETF net asset ratio (market capitalization compared with the total market capitalization ratio of Bitcoin) reached 4.25%, and the historical cumulative net inflow has reached US$11.774 billion.

Bitcoin Mining Difficulty lowered by 5.63% to 83.15T, and is expected to continue to do so next time

Mempool data shows that Bitcoin Mining Difficulty ushered in a Mining Difficulty correction at 19:00 (Block Height 842688) today, with a Mining Difficulty downward revision of 5.63% to 83.15 T. It is estimated that the next difficulty retargeting will be reduced by 6.39%.

**The PANews APP has been updated, download and experience it now! **

【Comment】Speak freely and exchange opinions

【Floating window】Reading is interrupted, return at any time

【In-text search】Quickly locate and go straight to the core

Original | Odaily

Author | Aurantium aurantium

Today, Optimism announced that L3s built with the OP Stack can now join the Superchain, and L3s can build on the OP Stack and share revenue with the Optimism Collective, giving them access to the Superchain builder network and being eligible for retro grants, Airdrops, rise events, and more. In this article, Odaily breaks down this change and the story behind it.

Interpretation of the Development Plan

Analysis of basic concepts and announcements

First of all, what is the OP Stack? **The OP Stack is an open standard codebase that supports superchain development, not limited to L2 chain and DApp developers (well-known examples include Base, Zora Network, etc.), but also can be used by the L3 ecosystem.

Another important question, what is a superchain? Hyperchain is one of Optimism's visions, conceived as longing Decentralization L2 chain networks (now including L3) that share security, communication layers, and the Open Source OP Stack. These chains are standardized and network resources are interchangeable to enhance chain interoperability and enable developers to create DApps that target the entire superchain.

Optimism's latest announcement can be understood that developers who use the OP Stack to build L3 can also join Optimism's superchain development map and enjoy the benefits of overall ecological development. For these L3s, the immediate benefits include retro funding, airdrops, and rising activities, and these L3s will return a portion of their revenue to the Optimism Collective.

However, it should be noted that the current OP Stack technology for L3 is not fully mature, especially in terms of interoperability.

Application requirements are forcing technological change?

Why is Optimism making this change? The official announcement lays out a long story about the technology and vision, but in reality it may be the most important:

L3 can provide a new, more cost-effective way for chain and DApp developers to build. We're already seeing this trend with Base, which is rapidly expanding support for L3 on top of what it is.

It is not difficult to see that this place should point to the L3 Degen on the Base on-chain. And the story behind this goes back to what happened on Warpcast 1 month ago:

Binji Pande, head of NFT at Optimism, asked: "Why DEGEN L3 uses Arbitrum Orbit technology instead of OP Stack. (Note: Arbitrum Orbit is a chain development tool launched by the Arbitrum team.) ）

Degen co-developer Syndicate replied at the bottom of the article: "The ability to support custom gas tokens is a big plus! (OP Stack doesn't support custom gas tokens, so we don't.) ）

Zain Bacchus, Head of Product at OP Labs, then replied: "Custom Gas Token will go live this quarter. “

Any other updates?

This update includes custom gas Token and Plasma mode.

First, the OP Stack will support L3 custom gas tokens, and projects that build communities around existing L2 native tokens can now leverage their tokens as gas tokens to grow their communities into L3 ecosystems. This also drops the cost of entry for new users, eliminating the need to deposit gas tokens into L2 through expensive L1 operations and then enter L3, simply performing low-cost L2 deposit operations in L3.

The optionality of the data availability (DA) layer is another key module for developers to build low-cost chains. The Plasma pattern allows all developers to choose their own DA layer on top of using the OP Stack to drop Transaction Cost while minimizing security headaches and management costs. The OP Stack will integrate longest data availability tiers over time.

Going forward, this opens up a framework for L3 developers to participate in the superchain ecosystem and help shape the future of scalability, while also benefiting from the contributions of other builders.

Conclusion

At the moment when all kinds of chain blowouts, whether it is L1, L2 or L3 are no longer scarce, when the "gold digger" is over the long, being a "shovel seller" is the most stable and effective way to operate. From this latest announcement, it can be seen that Optimism is actively adapting to the market demand, aiming to make the OP Stack the ultimate weapon to realize the vision of the superchain.

By Wenser, Odaily

In April 2024, RootData, a Web3 asset data platform, released statistics on KOLs' participation in project financing in the past six months, among which dingaling ranked first with participation in 21 project financing, followed by GmoneyNFT AND DCF GOD, ranking second and third respectively. Today, Odaily will work with you to break down the investment strategies of KOLs and find new alphas from this table.

Popular tracks: games, BTC L2, social

According to the above table information and the information on Rootdata's official website, the main investment targets of Zhong long KOLs are concentrated in popular tracks such as games, social networking, and BTC L2 networks, among which the following projects have been recognized and invested by long KOLs:

• eesee has a total of 7 KOL investments, a decentralized aggregation trading and lottery platform in the Blast ecosystem, mainly serving buyers and sellers by providing additional liquidity and trading markets for digital assets, tokens and RWA, and using a special token cash-back form to offset the negative sum effect of users failing to win, the winner gets a lottery pool reward, and the loser gets points, which are linked to future rewards. Token ESE is currently priced at $0.08 with a 24-hour volume of $1.82 million.
• Mezo has a total of 4 KOLs invested, one of the latest Bitcoin L2 networks, created by the developer Thesis team, having previously completed a $21 million Series A funding round led by Pantera Capital and participated by Multicoin, Hack VC, Draper Associates and others, Mezo leverages Bitcoin idle Bitcoin of coin holders through the "Proof of HODL" points program, the longer it is stored, The more the user's "HODL score multiplier" is longer. No coins have been issued at this time.
• GAM 3 S.GG has a total of 4 KOLs invested and is a Web3 game content platform. According to its official profile, 400+ games have been launched so far, and its mission is to bring gamers to Web3 through game discovery, content, live streaming, community events, and more. GAM 3 S.GG super apps remove barriers to entry by simplifying the user experience, providing early access opportunities, curating content to highlight popular web3 games, and removing barriers to Newbie entry. Token G 3 is currently priced at $0.177 and has a total market capitalization of $170 million.
• Scallop has a total of 4 KOLs to invest in, the lending marketplace of the Sui ecosystem. It is committed to building a dynamic coin market, providing high-interest Intrerest Rate lending, low-fee lending, AMM and asset management tools on a unified platform, as well as SDKs for professional traders, the Token SCA is currently priced at $0.61 and has a circulating market capitalization of $18.54 million.
• MetaStreet has a total of 4 KOLs invested, and the Liquidity Expansion Protocol of the NFT credit market in the Blast ecosystem. Its main product is a capital vault that provides Secondary Market Liquidity for NFT-backed notes, where participants can deposit funds in order to earn yield from a long-funded portfolio of NFT-backed notes, and investors also include star capital such as Dragonfly, DCG, OpenSea, Nascent, and others, which previously closed a $25 million funding round. No coins have been issued at this time.
• Reach has a total of 4 KOLs invested, a SocialFi collaboration platform designed for creators and contributors within the Web3 community. Reach enables anyone looking to promote their content to tap into a user base that engages, verifies, and audits, and pays them for their contributions to the network's effectiveness. Developed as a Discord Bot, it allows creators to easily set up tasks to promote their content. Tasks can be tailored to the target audience and include followings, likes, retweets, and tweet comments on X.com platforms. Some missions also have rewards (ETH) that are selected and funded by the creator, while others are rewarded with leaderboard points that can be used to purchase tasks. Token REACH is currently priced at $0.045 with a total market capitalization of $4.888 million.

In addition, the Defi track is also the focus of attention of long KOLs, and products such as Kodiak, Orbit Protocol, and Particle have also received long attention.

KOL Features: Longest NFT players

It is worth mentioning that in the list of KOLs counted this time, the proportion of NFT players is relatively high. Such as dingaling, Gmoney, Mr. Block, Grail.eth, Zeneca, 0x Sun and others, avatars or IDs are NFT-related elements, and they are also well-known KOLs in the NFT market.

Coincidentally, the previous Memecoin boom also started from NFT players and gradually spread to different groups in the encryption market, from a personal point of view, NFT players are active in the investment market for the following 3 main reasons:

• The community has a lot of influence. KOLs in the NFT track generally have strong cohesion and influence in the community, so they have strong content marketing value and are recognized by investment projects;
• Good cultural aesthetics. Different from KOLs in other tracks, KOLs in the NFT track are not only limited to team background, capital support, and project resources, but also pay more attention to the cultural background, project aesthetics and operation methods of a project, so they are more inclined to invest in teams and projects with certain aesthetic capabilities, and it is difficult for shoddy projects to get their favor;
• The NFT market is cold, seeking new breakthroughs. Affected by Liquidity issues, the NFT market has been underperforming in recent years, so KOLs in the NFT track are more motivated to seek new rise points and breakthroughs, which is one of the reasons why long NFT players have flocked to Primary Market and Secondary Market in large numbers. Of course, in a way, this is also a last resort.

Commonality of the target: emerging ecology + mature model

In addition, through the analysis of KOL investment projects, we can also see that in addition to Ethena, Ether.fi and other Ethereum stake tracks, the investment targets they choose long focus on emerging ecosystems that have mature models that can be used for reference, such as:

• Blast: As an L2 network backed by Blur, the "master of the points system", Blast has gradually grown into an increasingly rich "application network" through step-by-step operation activities such as the points system, gold point rewards, and Big Bang events, whether it is games, social networking, Defi, or NFTFi, Blast's points are the "best selling point" of the product, thus attracting long teams and investors, including KOLs, to rush in.
• Berachain: As an L1 public chain that has previously completed a $100 million Series B financing and is valued at at least $1 billion, Berachain's ecosystem is also gradually developing, especially its positioning as a "community-driven Blockchain network" and strong meme attributes, which also makes Zhong long KOLs become the pioneers and evangelists of this ecosystem.
• Sui Network: As a Blockchain network powered by the Move language, Sui's high throughput, low latency and asset-oriented programming model have also been recognized by many project parties, and according to recent data from the Artemis platform, the average daily volume of Sui on-chain has briefly surpassed the Solana network, up to 41 million times, in the long run, casual mini-games are a major advantage track for Sui, before Sui Basecamp in Paris The event also demonstrated to the market the highly active status quo of this ecology, thus providing a better soil for the implementation of mature models.

Summary: KOL wheels are the norm, and we look at them with a normal heart

Previously, the KOL round of financing has become a hot topic of discussion in the encryption industry. Longest people have a negative attitude towards this, believing that the KOL round of financing will lead to the abuse of KOL's influence, prompting ordinary users to fear of missing out (FOMO) and follow the trend. Some people believe that the KOL round of financing is a manifestation of a change in market forces, replacing the important role of institutional investment in the past to a certain extent. Of course, there are also people who disdain this, believing that the disadvantages of the KOL round of financing are not small, and the amount of money obtained by the KOL may not necessarily get a high-yield return in the long, after all, there are high-risk factors such as "project Rug, security risks, and cold market sentiment", which can easily lead to KOLs becoming "free labor", and even "contributing money and efforts, but finally making a short".

long wick candle, overseas KOLs have a more peaceful attitude towards this issue, Loopify, the founder of Endless Clouds, and OSF, a well-known overseas KOL, have made relevant remarks, from being penniless, to through their own efforts and content output, they have gradually gained a certain amount of resource accumulation in the encryption industry, and then become a very long project to throw an olive branch, although it seems like chicken soup, but it is true.

So, instead of complaining, accept it and find your own alpha. Perhaps, the next person to move the encryption circle is you.

On May 9, 2024, the Bitcoin Asia Summit Bitcoin Asia 2024 was grandly opened at the Kai Tak Cruise Terminal in Hong Kong, as the world's leading Web3 fintech summit, held annually in the United States with a scale of more than 50,000 people. The purpose of the summit is to promote the global development and cooperation of Bitcoin and Web3 technology.

For the first time, the Bitcoin Summit was held in Asia and settled in Hong Kong. The first day of the event attracted more than 10,000 attendees from all over the world, highlighting Hong Kong as one of the global Web3 and virtual asset hubs. The summit is not only a platform for technology exchange, but also an important step to promote innovation in the global economy, bringing together experts, technology developers, investors and more than 50 exhibitors from around the world to discuss the future development of Bitcoin and Blockchain technology.

Four members of the Hong Kong Legislative Council were invited to officiate at the opening ceremony of the summit, including Ng Kit Dealer, Yau Tat-kan, Lee Chun-keung and Shang Hailong. Among them, Dr. Ng Kit Dealer, a member of the Hong Kong Legislative Council, delivered a speech, emphasizing that Hong Kong, as an international financial and innovation and technology hub, is actively promoting the development of Web3; Since the issuance of the Policy Statement on the Development of Virtual Assets in Hong Kong in October 2022, the virtual asset (VA) market has grown rapidly, demonstrating the government's commitment to exploring financial innovation in the industry. The government approved the listing of Bitcoin and Ether coin Spot ETF in December 2022 and established the licensing regime and regulatory requirements for virtual asset service providers (VASPs) on 1 June 2023. Bitcoin and Ethereum (ETH) trading services are now available to retail investors.

In addition, activities during the summit include longest panel discussions and seminars covering longest aspects of Blockchain technology, such as security, legal environment, market trends, etc. In addition, more than 50 exhibitors showcased the latest Bitcoin and Web3 technology applications and ecosystems, providing participants with the opportunity to learn more and experience. Leading thought leaders and innovators in the industry will also share their insights and predictions to help participants stay on top of the industry.

Original | Odaily

Author | Husband How

Recently, MakerDAO announced that it will launch new Tokens NewStable and NewGovToken. Among them, MKR holders are able to upgrade their Token to a new governance token (NewGovToken, exchange ratio of 1:24000), i.e., a new governance token in the ecosystem, stablecoin Dai (DAI) can be converted into a new stablecoin (NewStable). (Odaily Note: The names of the two Tokens have not yet been revealed)

It's not uncommon for established projects to launch new Token, and the big long is looking for change and finding new rise, but the impact of such a move by a well-known project like MakerDAO cannot be ignored.

According to the MakerDAO official forum and the latest developments, the news of MakerDAO's launch of new Tokens was released as early as last year, and the issuance of new Tokens is also an important part of the first phase of Endgame's transformation plan.

The Endgame transformation plan was approved through a governance vote in August 2022 and continued to be discussed until the recent official announcement that a new token will be launched this summer. It is reported that Endgame is a major update to MakerDAO that aims to improve efficiency, resilience, and engagement to expand the Dai supply to 100 billion and beyond. Endgame's key feature is to make the ecosystem more prosperous through sustainable SubDAO Token yield Mining, where SubDAO is a DAO ecosystem that leverages MakerDAO's infrastructure while maintaining flexibility and autonomy. There will be a SubDAO for different groups of people, and Dai users can simply choose their preferred SubDAO and start mining the corresponding SubDAO Token.

Odaily will start with the basic overview of the new Token and elaborate on MakerDAO's Endgame transformation plan at this stage.

The first step is to launch a new Token, and the subsequent will be to build a public chain Decentralized Finance ecosystem with SubDAO as the core

A month after the announcement of the new MakerDAO brand, the new stablecoin (NewStable) and the new governance token (NewGovToken (NewGovToken) will be officially launched, and Maker's new ecosystem will run with the new Token. Until then, Dai and MKR Token will remain the same, and users will have the option to upgrade to NewStable and NewGovToken; If you don't upgrade your Token, you won't be able to participate in new ecological features. According to the official description, Dai will focus on encryption-native use cases, while the upgraded NewStable will focus on mass adoption.

NewStable still operates as a stablecoin, and Dai can be converted to each other, and NewStable can mine a new governance token NewGovToken after launch (not open to VPN users and US users).

NewGovToken can also be converted to and from the MKR Token before the upgrade, compared to the smaller supply of MKR, the supply of NewGovToken will be expanded, and the official exchange ratio is 1 MKR can be exchanged for 24,000 NewGovTokens. **This can increase the Decentralization of the project by drop governance token the price, expand the scope of governance, and attract more long new users to participate in community building. **

In addition to issuance new Token, Endgame will launch the Lockstake Engine (LSE) stake protocol, where users can stake MKR and NewGovToken in LSE to mine NewStable and upcoming SubDAO Token (including SPK Token from Spark SubDAO).

It is important to note that 30% of all protocol surplus earnings earned by protocol will be distributed as NewStable rewards to LSE users who choose to receive NewStable earnings on a pro-rata basis. and that NewGovToken and MKR Token locked in LSE pay a 15% exit fee when their Token is unlocked; This fee is burned protocol and deducted from the principal amount of the original Lockstake. (Odaily Note: The Lockstake engine is not available to US residents and VPN users)

Following the launch of the Lockstake engine, NewBridge and Spark SubDAO were launched to achieve the goal of the first phase of the Endgame Transformation Program.

Among them, NewBridge will connect Ethereum Mainnet NewStable, NewGovToken, and other Maker ecosystems Token to L2 (currently pending). NewBridge will support users to Mining natively on L2, providing users with a low-cost access channel.

Spark is a subDAO within the MakerDAO ecosystem. Spark, as an independent community, has autonomy and a unique business model. SparkLend, Spark's main product, is a lending platform where users can use encryption assets as collateral to generate Dai at predictable Intrerest rates and NewStable in the future.

In addition to SparkLend, Spark will also provide a number of new business capabilities:

• RWA: Spark will leverage the RWA infrastructure built by MakerDAO to deploy funds into real-world assets to generate yield and enhance risk-adjusted returns.
• Perpetual Swap Yield: In addition to RWA, Spark will also receive yield from the encryption perpetual swap market, providing users with low-risk yield opportunities.

The total number of Spark Token SPKs is 4 billion, mainly from NewStable users' stake acquisition on Ethereum Mainnet and (pending) L2, and the circulation trend of SPK is $1 billion Token in the first two years, and then Halving every two years until it is fully available in 10 years.

Spark Governance: Spark has a community governance mechanism controlled by SPK Token voting, and over time, within the framework of the Maker SubDAO ecosystem, Spark governance will run all activities autonomously.

According to the official governance forum, the Endgame transformation plan will carry out the next three phases, namely:

• Phase 2 scale-up: After all ecosystem components are rolled out in Phase 1, Phase 2 scales the ecosystem and applications to scale them up.
• Phase 3 NewChain: Phase 3 will launch an independent Layer 1 that will host the core tokenomics and governance mechanisms of Maker Core and SubDAO, and connect RWA, Decentralized Finance, and public chains through the NewBridge system.
• Phase 4 Final Endgame: The final endgame is the moment when all the technical and underlying governance mechanisms are completed, and when the final endgame is activated, all the underlying governance mechanisms of Maker Core will be immutable, realizing the ultimate vision of Endgame.

Governance changes lead to ecological prosperity, and a new Decentralized Finance ecosystem is about to be born

It is not difficult to find from MakerDAO's Endgame transformation plan that as early as 2022, the MakerDAO community launched a "bail-in" on the current Decentralized Finance zone development bottleneck. As a veteran project, MakerDAO knows that unchanged is equal to "slow death" and will eventually be surpassed.

However, the path of change chosen by Maker is not the same as that of other Decentralized Finance projects - dYdX has previously sought development in terms of performance and user volume by moving from Ethereum to layer 2 and even building its own proprietary chain later.

The Endgame transformation plan allows the author to see a Decentralized Finance ecology with community governance as the core point, and from the surface form, the Endgame transformation plan is generally consistent with dYdX's development on the underlying public chain path, from Ethereum to building L1 (MakerDAO disclosed that it will not shut down functions on Ethereum), but the kernel is using different SubDAOs to attract users with different needs and preferences to participate in the governance of MakerDAO, which will be in MakerDAO The subdivision of different zones in its own ecology makes the stablecoin Dai or the upgraded NewStable truly circulate in all directions in the ecology, thereby improving the prosperity of the ecology.

According to its disclosed roadmap, Endgame may last several years before it becomes possible. However, in the first phase launched this summer, there will be longest mining and revenue acquisition channels, and the Decentralized Finance ecosystem may usher in new heat. The follow-up Odaily Planet Daily will continue to follow up.

Original authors: Storm Slivkoff, Georgios Konstantopoulos

Original compilation: Luffy, Foresight News

History rise growth is currently the biggest bottleneck in Ethereum expansion. Surprisingly, historical rise has become a bigger problem than state rise. Within a few years, historical data will exceed long Ethereum Node storage capacity.

Here's the good news:

• Historical rise is a much easier problem to solve than state rise.
• The solution is already under active development.
• Addressing historical rise will alleviate state rise issues.

In this post, we will continue to look at the Ethereum scaling problem in Part 1 and now turn our attention from state rise to historical rise. Using granular datasets, our goals are to 1) technically understand Ethereum's scaling bottlenecks, and 2) help open the discussion around the optimal solution to Ethereum's gas limits.

What is Historical rise?

History is the collection of all blocks and transactions executed by Ethereum throughout its lifetime, and it is all the data from the Genesis Block to the current Block. Historical growth is the rise of new blocks and new transactions over time.

Figure 1 shows the relationship between historical rise and various protocol metrics and Ethereum Node hardware constraints. Compared to state rise, historical rise are limited by a different set of hardware constraints. Historical rise puts pressure on network IO as new Block and transactions must be transmitted throughout the network. Historical rise can also put pressure on Node storage short, as each Ethereum Node stores a complete copy of history. If the historical rate of rise is fast enough to exceed these hardware limits, the Node will no longer be able to reach stable Consensus with its Node. For an overview of state rise and other scaling bottlenecks, see Part 1 of this series.

Figure 1: Ethereum scaling bottleneck

Until recently, most of the network throughput per node was used to transfer history (such as new blocks and transactions). This changed with the introduction of blobs in the Dencun Hard Fork. blobs now account for a large portion of Node Network activity. However, blobs are not considered part of the history because 1) they are only stored by Nodes for 2 weeks and then discarded, and 2) they do not need to repeat data from the inception of Ethereum. Because of (1), blobs don't significantly increase the storage burden per Ethereum Node. We'll talk about blobs later in this article.

In this article, we will focus on historical rise and discuss the relationship between history and state. Because state rise and historical rise have some overlapping hardware constraints, they are related problems, and solving one problem can help solve the other.

How fast is history rise long?

Figure 2 shows the historical rise rate since the creation of Ethereum. Each vertical line represents a month's rise. The y-axis represents the number of k exabytes of historical rise in that month. Transactions are categorized by their "destination Address" and use RLP() bytes to indicate size. Contracts that cannot be easily identified are classified as "unknown". The "Other" category includes a range of sub-categories such as infrastructure and games.

Figure 2: Ethereum historical rise rate over time

A few key takeaways from the chart above:

• Historical rise rate is 6 to 8 times faster than state rise: Historical rise rate recently peaked at 36.0 GiB/month and is currently 19.3 GiB/month. The state rise rate peaked at about 6.0 GiB/month and is currently 2.5 GiB/month. A comparison of history and state in terms of rise and cumulative size will be described later in this article.
• Prior to Decun, the historical rise rate had been accelerating: While the state had been roughly linear rise for long years (see Part 1), the history was rise superlinear. Considering that the rise rate of a linear rise results in a quadratic rise of the overall scale, the rise rate of a superlinear rise results in an overall size exceeding the quadratic rise. This acceleration stops abruptly after Dencun. This is the first time that Ethereum has experienced a significant drop in the historical rise rate.
• The majority of recent historical rise comes from Rollups: each L2 publishes a copy of its transaction back to Mainnet. This generated a large amount of historical rise and led to Rollup being the most significant contributor to historical growth over the past year. However, Dencun allows L2 to publish its transaction data using blobs instead of history, so Rollups no longer generate most of Ethereum history. We'll cover Rollups in more detail later in this article.

Who is the biggest contributor to Ethereum's historical rise?

The historical number of different contract classes generated reveals how Ethereum's usage patterns have evolved over time. Figure 3 shows the relative contributions of the various contract categories. This is normalized to the same data as in Figure 2.

Figure 3: Contribution of different contract classes to historical rise

This data reveals four different periods of Ethereum usage patterns:

• Early (purple): There was little on-chain activity in the first few years of Ethereum. Large long of these early contracts are now difficult to identify and are marked as "unknown" in the chart.
• ERC-20 era (green): The ERC-20 standard was finalized at the end of 2015 but did not gain significant development until 2017 and 2018. ERC-20 contracts became the largest source of historical rise in 2019.
• DEX / Decentralized Finance Era (Brown): DEX and Decentralized Finance contracts appeared on the on-chain as early as 2016 and began to gain traction in 2017. But it wasn't until the summer of Decentralized Finance 2020 that they became the largest category of all-time rise. Decentralized Finance and DEX contracts accounted for more than 50% of the all-time rise for part of 2021 and 2022.
• Rollup Era (Gray): In early 2023, L2 Rollups began executing longer transactions than Mainnet. In the months leading up to Dencun, they generated about 2/3 of Ethereum's history.

Each era represents a more complex pattern of using Ethereum than ever before. Over time, complexity can be seen as a form of Ethereum scaling, which cannot be measured by simple metrics such as transactions per second.

In the most recent data month (April 2024), Rollups no longer produce most of the history. It's unclear whether future history originates from DEXs and Decentralized Finance, or if some new usage patterns will emerge.

What about blobs?

The Dencun Hard Fork dramatically changed the historical rising dynamics by introducing blobs, allowing rollups to publish data using cheap blobs instead of history. Figure 4 amplifies the historical rise before and after the Dencun upgrade. The chart is similar to Figure 2, except that each vertical line represents a day instead of a month.

Figure 4 The impact of :D encun on historical rise

From this chart, we can draw several key conclusions:

• The historical rise of rollups has dropped by about 2/3 since Dencun: large long rollups have been converted from call data to blobs, which greatly reduces the amount of history they generate. However, as of April 2024, there are still some rollups that have not yet been converted from call data to blobs.
• Total all-time rise has dropped by about 1/3 since Dencun: Dencun has only drop the all-time rise of rollups. There was a slight increase in historical rise for other contract categories. Even after Dencun, the historical rise is still 8 times the state rise (see the next section for details).

Although blobs have drop historical rise speed, they are still a new feature of the Ethereum. It's unclear at what level the historical rise velocity will stabilize in the presence of blobs.

Is long fast historical rise acceptable?

Increasing the gas cap will increase the historical rise rate. Therefore, proposals to increase the gas cap, such as Pump the Gas, must take into account the relationship between historical rise and the hardware bottlenecks of each Node.

To determine an acceptable historical rise rate, you must first understand how long your current Node hardware can sustain long in terms of networking and storage. Networked hardware may be able to maintain the status quo indefinitely, as historical growth rates are unlikely to rise back to their pre-Dencun peaks until gas limits are increased. However, the storage burden of history increases over time. Under the current storage strategy, it is inevitable that each Node's storage disk will eventually be filled with history.

Figure 5 shows Ethereum Node storage burden over time and predicts the rise of the storage burden over the next 3 years. The forecast is based on the rise rate in April 2024. This rise rate may rise or decrease as future usage patterns or gas limits change.

Figure 5: The size of the history, state, and full node storage burden

From this graph, we can draw several key conclusions:

• History occupies approximately 3 times the storage shorts of state. This difference also rises over time, as historical growth is about 8 times faster than state.
• 1.8 TiB is the critical threshold at which Xu long Node will be forced to upgrade their storage drives. 2 TB is a common storage hard drive size, providing only 1.8 TiB of usable shorts. Note that TB (1 trillion bytes) is a different unit than TiB (= 1024^4 bytes). For Xu long Node operators, the "true" critical threshold is even lower, as the post-merge validator must run alongside Consensus execution client.
• The critical threshold will be reached in 2 to 3 years. Raising the gas limit by any amount will speed up the time accordingly. Reaching this threshold will place a significant maintenance burden on Node operators and require the purchase of additional hardware (e.g., $300 NVME drives).

Unlike status data, historical data is append-only and accessed longest less frequently. Therefore, it is theoretically possible to store historical data separately from state data on a cheaper storage medium. This can be achieved with some clients such as Geth.

In addition to storage capacity, network IO is another major limitation of historical rise. Unlike storage capacity, network IO limits will not cause problems for Nodes in the short term, but these limits will become important for increasing gas limits in the future.

To understand how the network capacity of a typical Ethereum Node can support long few historical rise, it is important to know the relationship between historical rise and various network health metrics, such as reorganization rate, slot misses, final misses, proof misses, synchronization committee misses, and Block commit latency. The analysis of these metrics is beyond the scope of this article, but more long information can be found in previous surveys of Consensus layer health. In addition, the Ethereum Foundation's Xatu project has been building public datasets to speed up such analysis.

How to solve the historical rise problem?

Historical rising is a much easier problem to solve than state rising. It can be addressed almost entirely by candidate proposal EIP-4444. This EIP changes each Node from keeping the entire Ethereum historical data to only one year's worth of historical data. After the implementation of EIP-4444, data storage will no longer be a bottleneck for Ethereum scaling, and in the long run, gas limit increases will not be constrained. EIP-4444 is necessary for the long-term sustainability of the network, otherwise the historical rate of rise will be rapid and the hardware of the network Node needs to be updated regularly.

Figure 6 shows the impact of EIP-4444 on the storage burden of each Node over the next 3 years. This is the same as Figure 4, but with the addition of a shallower line to indicate the storage burden following the implementation of EIP-4444.

Figure 6: Impact of EIP-4444 on Ethereum Node storage burden

Some key conclusions can be seen from this graph:

• EIP-4444 will Halving the current storage burden. The storage burden will be reduced from 1.2 TiB to 633 GiB.
• EIP-4444 will stabilize the historical storage burden. Assuming a constant historical rise rate, historical data is discarded at the rate generated.
• After EIP-4444, it would take longest years for the Node storage burden to reach where it is today. This is because state rise will be the only factor that increases the storage burden, and state rise slower than historical rise.

After EIP-4444 is implemented, historical rise will still introduce some level of storage burden, as Node will store a year's worth of historical history. However, even if Ethereum reaches global scale, this burden will not be difficult to solve. Once the history-keeping method proves to be reliable, the one-year expiration time for EIP-4444 may be shortened to months, weeks, or even less.

How do I save my Ethereum history?

EIP-4444 raises the question: if history is not saved by Ethereum Node itself, then how should it be saved? History plays a central role in Ethereum's verification, accounting, and analysis, so it's crucial to preserve history. Luckily, history keeping is a simple matter that only requires 1/n honest data providers. This is in contrast to state Consensus issues, which require 1/3 to 2/3 of participants to be honest. Node operators can verify the authenticity of historical datasets by 1) replaying all transactions since the Genesis Block and 2) checking whether these transactions reproduce the same state root as the current Blockchain side.

There are longest ways to save history.

• Torrents/P2P: Torrents are the easiest and most reliable method. Ethereum Node can package part of the history on a regular basis and share it as a public torrent file. For example, a Node might create a new historical torrent file every 100, 000 Blocks. Node clients like erigons already perform this process in a somewhat non-standardized manner. To standardize this process, all Node clients must use the same data format, the same parameters, and the same P2P network. Nodes will be able to choose whether or not to participate in this network based on their storage and bandwidth capabilities. The advantage of Torrents is the use of high lindy open standards that are already supported by a large number of data tools.
• Portal Network: Portal Network is a new network designed specifically for hosting Ethereum data. It's an approach similar to Torrent while also offering some extra features that make data validation easier. The advantage of Portal Network is that these additional layers of validation provide light clients with utilities to efficiently validate and query shared datasets.
• Cloud hosting: Cloud storage services like AWS's S 3 or Cloudflare's R 2 offer an inexpensive and high-performance option for keeping history. However, this approach introduces more long legal and operational risks, as there is no guarantee that these cloud services will always be willing and able to host Crypto Assets data.

The remaining implementation challenges are longer social than technical. The Ethereum community needs to coordinate specific implementation details in order to integrate them directly into each Node client. In particular, performing a full sync from the Genesis Block (instead of Snapshot sync) will require retrieving the history from the history provider instead of the Ethereum Node. These changes don't technically require a hard fork, so they can be implemented earlier than Ethereum's next hard fork, Pectra.

All of these history-keeping methods can also be used by L2s to hold blob data they publish to Mainnet. Compared to historical preservation, blob preservation 1) is more difficult because the total amount of data is longer; 2) Less important because blobs are not necessary to replay Mainnet history. However, blob preservation is still necessary for each L2 to replay its own history. Therefore, some form of blob saving is important for the entire Ethereum ecosystem. In addition, if L2 develops a robust blob storage infrastructure, they may also be able to easily store historical L1 data.

It can be helpful to directly compare the datasets stored by various Node configurations before and after EIP-4444. Figure 7 shows the storage burden for different Ethereum Node types. State data is accounts and contracts, historical data is Block and Transactions, and archive data is an optional set of data indexes. The number of bytes in this table is based on the most recent reth Snapshot, but the numbers for other Node clients should be roughly the same.

Figure 7: Storage burden for different Ethereum Node types

Other words

• Archive Node stores state and historical data as well as archive data. Archive Node can be used when someone wants to be able to easily query the historical chain state.
• Full Node stores only historical and state data. Most of today's long Node are Full Node. The storage burden of a full node is about half that of an archive Node.
• Full nodes after EIP-4444 store only state data and historical data for the most recent year. This reduces the storage burden on the Node from 1.2 TiB to 633 GiB and brings the storage shorts for historical data to a steady-state value.
• Stateless Nodes, also known as "light nodes", do not store any data sets and can be verified immediately at the end of the chain. This Node type becomes possible once Verkle attempts or other state commitment schemes are added to Ethereum.

Finally, there are additional EIPs that can limit the historical rise rate, not just accommodate the current rise rate. This helps stay within network IO constraints in the short term and storage constraints in the long term. Although EIP-4444 is still necessary for the long-term sustainability of the network, these other EIPs will help Ethereum scale more efficiently in the future:

• EIP-7623: Repricing call data to make some transactions with longing call data more expensive. Making these usage patterns more expensive will force some of them to convert from call data to blobs. This will drop historical rise rate.
• EIP-4488: Imposes a limit on the total amount of call data that can be included in each block. This will impose a tighter limit on the rate of rise of the history.

These EIPs are easier to implement than EIP-4444, so they may serve as short-term options before EIP-4444 goes into production.

Conclusion

The purpose of this article is to use data to understand 1) how historical rise works and 2) ways to solve that problem. Much of the long data in this article is difficult to obtain through traditional means, so we wanted to expose this data to provide some new insights into historical rise issues.

Historically rise as a bottleneck for Ethereum expansion, not enough attention has been paid to it. Even without increasing the gas cap, Ethereum current history-keeping conventions will force Xu long Node to upgrade their hardware within a few years. Fortunately, this is not a difficult problem to solve. There is already a clear solution in EIP-4444. We believe that the implementation of this EIP should be accelerated to allow shorts for future gas cap increases.

Link to original article