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The Merge and other major crypto stories to look out for this week

This coming week is all about The Merge, which will complete Ethereum’s transition from proof of work to proof of stake. A miner-led Ethereum fork may also go live once The Merge happens. Trading on the native token of this forked Ethereum chain may take place across a few crypto exchanges.

The Merge

Ethereum’s pivot from proof of work to proof of stake, the heralded event known as The Merge, will take center stage. The network already passed the last mile marker before The Merge, called the Bellatrix upgrade. The Merge itself will likely happen on Sept. 15 and node runners will be making final preparations to update their clients in anticipation of the network transition.

The Merge will bring notable changes to Ethereum, including a reduction in both the network’s energy usage and new token issuance. Validators will replace miners in the work. As such, Ethereum will no longer be secured by mining hardware, but by the economic value of ether tokens staked by participants. The Merge will not, however, make Ethereum more scalable or offer a reduction in transaction fees.

The Fork

Not all Ethereum network participants are in favor of The Merge. Some miners previously announced plans for a fork, a network split, with their own chain retaining Ethereum’s proof-of-work consensus.

Some crypto exchanges have already said they will recognize ETHPoW, the name adopted by the potential miner-led fork chain. If the chain split does occur, then trading on this ETHPoW token is likely to happen. Still, notable Ethereum personalities, including its co-creator Vitalik Buterin have said the fork is unlikely to succeed.  

More meetups and conferences

Buterin made a surprise appearance at the Kyiv Tech Summit last week, and there are several other crypto and blockchain events set to happen this coming week. Dubai’s second-ever MetaWeek starts today and will run until Wednesday. The event will showcase major developments in the emerging metaverse concept.

Other meetups and conferences include the Digital Asset Summit in New York on Tuesday and Wednesday, as well as the NFT Show Europe in Valencia, Spain, on Saturday and Sunday. The latter has been called Europe’s largest crypto art event and will showcase works from various blockchain artists. The Berlin Blockchain Week kicks off on Monday and will run throughout the week.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Osato Avan-Nomayo

Thai banking giants back DeFi startup Forward in $5 million seed round

The venture capital arms of some of Thailand’s biggest banks have backed DeFi platform Forward in a $5 million seed funding round. 

According to a news release, venture capital firms associated with Kasikornbank and the Bank of Ayudhya, along with Ratanakorn Technology Group, GBV Capital and Varys Capital, took part in the round led by Primestreet Capital. Forward claims to be the first DeFi project to receive investment from global funds and two major Thai banks. 

Forward is a DeFi platform that’s developing a protocol for decentralized derivative trading that matches long and short positions. The company said this means it doesn’t have to limit order books or rely on market makers.

“The trading volume of derivative products is approximately 3 times larger than the spot volume and it is still growing,” said Forward founder and CEO Chanon Charatsuttikul in the announcement. “Thus, Forward is focusing on developing a decentralized derivative platform, which is non-custodial with a system that prohibits transactions from sanctioned countries and addresses.” 

The fund-raise comes amid fluctuations in the Thai cryptocurrency sector. Last month, Thailand’s oldest bank, Siam Commercial Bank, abandoned a $500 million deal to acquire cryptocurrency exchange Bitkub.

The cancellation of the acquisition came about a month after the Thai Securities and Exchange commission ordered Bitkub to review the listing process of its KUB coin on the exchange.

Cryptocurrency exchange Huobi also recently shut down its operations in Thailand, citing regulatory issues.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Tom Matsuda

Ethereum’s cat herder: Hudson Jameson reflects on the journey to The Merge

Hudson Jameson can code, but he’d prefer to leave that to others who are more skilled. He’d rather do the talking.  

After growing up in Northeast Texas, he studied computer science at the University of North Texas. “There I found out I’m not good at software development,” said Jameson. “But I can understand it.”

His understanding of software and his ability to explain it left him uniquely equipped to be the coordinator of all the Ethereum core developers, a role he held for four years at the Ethereum Foundation. 

“I could speak the language to the developers exactly as they needed to hear it, while also coordinating people who didn’t want to make decisions and didn’t want to do the coordination; they just wanted to code,” Jameson said. “It was a really good match.” 

Jameson stepped down from his role in April 2021 to take a mental health break. He’s now independent except for a few advisory roles.

But even though he doesn’t officially work for Ethereum anymore, he’s in a unique position to reflect on Ethereum’s long journey to The Merge, the major upgrade to proof-of-stake consensus that began its initial stage this week.

‘Just get up and do it’

Jameson cannot hide his excitement for The Merge. “This is the biggest thing to happen to Ethereum since it launched. It literally cannot be overstated how insane this is that we are finally here after so many years of research and development on it,” he said.

He said he was recently looking at the blog post from the Ethereum Foundation showing the approximate dates for The Merge. “I kind of felt how I felt in 2015 when I was getting super involved in Ethereum and every day was a circus. I was just like, ‘Oh, this is so exciting, this is something I’ve been waiting for for years and it’s finally coming to fruition.’”

Jameson was working as a software developer at financial services firm USAA when Ethereum launched in 2015. He was already well into the crypto rabbit hole by then, having discovered Bitcoin four years earlier.

“I was obsessed with Bitcoin and cryptocurrencies at the beginning because I felt that there needed to be censorship-resistant and privacy enabling technology to help people who are like in countries where you can’t get information or money in and out,” he said.

When Ethereum launched, it was clear to Jameson that it provided more capabilities than Bitcoin. “You can have a program that’s running that no one can stop — no one can put a stop to it — or you can write anything on the chain you want in the nano field, and no one can censor it. That’s super powerful.”

Jameson was inspired. He volunteered to moderate Ethereum chat rooms, including on Reddit. He then headed to the first Devcon, Ethereum’s developer conference, in London and started volunteering at events. Ming Chan, then the executive director of the Ethereum Foundation, took note and asked if he wanted a job at the foundation. 

Around eight months later, Jameson quit his role at the USAA and joined the foundation. Except he had no specific role — that wasn’t how the foundation worked. “Now there are more formalized roles, but it was kind of much more: if you want something accomplished, you just get up and do it.”

Herding cats

Jameson spent his first year or so at the foundation helping to run DevCon 2 and DevCon 3. But at this time, “it was made kind of apparent that there were a few major gaps in certain areas of Ethereum and protocol development.” For instance, there wasn’t a consistent process for proposing and debating upgrades to the system.

So Jameson started managing the Ethereum Improvement Protocol (EIP) repository, the space where all Ethereum upgrades begin. He helped redo EIP 1, which sets out the rules governing the EIP process, to make it more clear and streamlined. He described himself as the de-facto EIP editor-in-chief.

He also noted that core developer meetings were not happening regularly, mostly because they didn’t have any formal structure or cadence. “So the communication was starting to get kind of wonky. No one was really talking as much as they should. There wasn’t a lot of cross-team communication,” he said.

Jameson restarted the calls and began recording and live streaming them to make them more transparent. Later on, he helped set up a group called the Ethereum Cat Herders, which would take notes during developer meetings and help to educate the community on what was happening.

By running the core developer meetings, Jameson ended up playing a key role in keeping Ethereum development on track. He acted as a metronome, helping the groups of developers keep to the same beat.

“My role on the calls was basically to set the agenda, make sure the correct people were on the call. And so kind of be more of a gatekeeper for who can come on and off the calls,” he said. “But it was a very loose gatekeeping job because, generally, I want to keep out trolls more than anything because the people who needed to be on there would just navigate to the calls kind of organically.”

His software engineering background enabled him to understand the complex discussions, which he had a knack for breaking down into simpler terms. Since he was “hyper obsessed with Ethereum” he was always ready with talking points. And the fact that most of the communication occurred online suited Jameson just fine. 

“I think some of that can be attributed to the fact that I’m neurodivergent,” Jameson said. “So because of that, I don’t always understand some of the social cues of in-person interactions, but online you just have to do the words correctly. And so that’s a lot easier to do.”

Even on voice calls, you don’t have to make eye contact, you can have your camera off and you might not even use your real name, he added. “So that’s really empowering.”

Looking back at Ethereum’s journey

Throughout his time running the core developers meeting, Jameson had a unique view of everything that happened and how it progressed.

Proof-of-stake has long been the goal, dating all the way back to when the network launched, he said. For a long time, the developers were able to view that as a long-term goal and focus on putting out smaller fires, he said. But eventually, Ethereum started growing so fast that they could no longer ignore the environmental impact of the network’s proof-of-work consensus model.  

“This wasn’t supposed to happen this quickly. At least that’s my perspective,” Jameson said.  The rapid growth isn’t a bad thing, he added. “But it does have consequences.” 

This fast growth of the network and the growth in the number of groups of developers working on it was one of the biggest changes during the years he worked full-time for Ethereum, said Jameson. In the network’s early years there weren’t any applications that were widely used and that there were only a few Ethereum clients. Now, there are many popular applications and around a dozen clients — run by a much larger ecosystem of developer teams.

At the same time, according to Jameson, the growth in the number of stakeholders has slowed the speed of innovation. “We’re moving at a glacial pace compared to what we were in 2015, and that’s not bad. That just means we have more voices, more coordination to do, more ideas, more things to argue over or discuss,” he said.

The network’s methodical march toward its transition to proof of stake is an example of this, he said. For years, the Ethereum community grappled with multiple different implementations before eventually settling on the current plan, which Jameson is convinced is better for Ethereum than the original ideas.

Jameson admits his hyperfixation on Ethereum took a toll on his mental health and eventually led him to step away. Still, the arrival of The Merge makes it feel like his energy didn’t go to waste. “We’re finally getting there and we’re also doing something that’s going to be very impactful towards the environment and towards a better security for the chain.”

Such a technical achievement is only possible through the kind of human coordination and communication that has been Jameson’s speciality. “Ethereum is about people, I think, more than money and more than technology,” he said.

 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Tim Copeland

Algorand Foundation has $35 million exposure to troubled crypto lender Hodlnaut

The Algorand Foundation said that it has a $35 million exposure in USDC to Hodlnaut, a Singapore-based troubled crypto lender that halted client withdrawals last month.

That figure represents less than 3% of the Algorand Foundation’s assets, the firm said, adding that it does not anticipate operational or liquidity issues due to its exposure.

“As part of the Foundation’s mission, from time to time, we invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development, and these funds were invested for that purpose,” the foundation said on Friday.

Hodlnaut halted client withdrawals on Aug. 8 amid liquidity problems. The firm suffered heavy losses in the Terra ecosystem failure, as The Block reported last month, citing affidavits. Hodlnaut had parked some $317 million in terraUSD (UST), the failed stablecoin, in Anchor Protocol on Terra as a way to pass high yields through to its customers. In May, Terra’s stablecoin UST sharply de-pegged from the dollar, inflicting losses of $189.7 million on Hodlnaut, according to the affidavit.

The Algorand Foundation said it is pursuing all legal remedies to maximize asset recovery from Hodlnaut.

On Aug. 29, the Singapore High Court appointed Algorand’s nominees, Angela Ee and Aaron Loh of EY Corporate Advisors, to act as the interim judicial managers of Hodlnaut, the foundation noted.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Yogita Khatri

How CC0 can help — or hurt — NFT projects

Creative commons (CC0) licensing is, yet again, in the spotlight in crypto. Following Nouns, Goblintown and Cryptodickbutts, Moonbirds became the latest blue-chip NFT project to place its work in the public domain – albeit, with some controversy.  

Kevin Rose, co-founder of the organization that created Moonbirds and its sister project Oddities, published a Tweet thread on Aug. 4, 2022 stating that the two projects would remove their copyright. Anyone could freely build upon and monetize their intellectual property.  

The decision sparked outrage from Moonbirds and Oddities holders who purchased these assets thinking they had the sole the ability to monetize the art associated with their NFT. Overnight, without consulting Moonbird or Oddities owners, anyone would have that privilege. Some intellectual property lawyers event called it a “bait and switch.” 

Beneath the controversial action of Rose and his creative team was a bet: that CC0 is ultimately the best type of copyright to have for Moonbirds and Oddities. Why else would they make the decision without notifying the holders?  

CC0 is a type of creative tool that dedicates a work to the public domain, meaning a creator gives up all copyright and lets others freely distribute, build upon and commercialize their work. 

Removing copyright allows projects to expand their brands through derivative use that doesn’t need permission from or attribution to the original founding team. 

Some copyright lawyers say that CC0 can weaken an NFT project’s brand by forgoing the right to take down harmful derivatives and removing the value of scarcity from owning an NFT from that project.

The case for copyright 

So, why would a project opt to use copyright? Some of the most valuable NFT projects, such as Yuga Labs’ Bored Ape Yacht Club and Larva Labs’ CryptoPunks, have created — and defended — their own copyright terms.  

Copyright essentially allows individuals to have a monopoly over their creation for a certain period, says intellectual property lawyer Jeremy Goldman, a partner in the litigation group at Frankfurt Kurnit Klein and Selz. Depending on the type of copyright license a creator adopts for their work, others may use that creator’s work for commercial and derivative use with or without attribution — but the intellectual property itself belongs to the original creator.  

When a creator copyrights their work, they are saying to consumers, “if you want if you like what I’ve created, and you want to use it and want to enjoy it, I am the only one who can give you permission to do that,” Goldman adds. By copyrighting their work, creators can seek legal action against those who they deem tread on their intellectual property.  

Both Yuga Labs and Larva Labs have sought legal action against derivatives that bore too close a likeness to their projects.

Copyright is designed to help creators monetize their work by having the exclusive right to sell their intellectual property and deter theft explains Sohaib Mohammad, an intellectual copyright lawyer in Toronto. Larva Labs even went as far as to limit the amount of money a CryptoPunk holder can make off their NFT to $100,000, The Block previously reported.  

However, the very nature of NFTs and blockchain adds a complicating layer to copyright. There is a “critical” difference between the NFT and the art associated with that NFT, Goldman says. Once an NFT is minted, “it’s out in the wild,” he adds. Yuga Labs or any other NFT team “has absolutely no right or ability or power to do anything about the non-fungible token itself once it’s been transferred out of their smart contract.” 

The final decisions about the art, or music or video associated with an NFT for that matter, is ultimately left up to the original creators, Goldman says.  

“When you buy the NFT, you’re getting some additional layer of [ownership] rights, but you’re not getting the intellectual property rights in the art. That’s why there’s some confusion. Those intellectual property rights are entirely controlled by the artists,” Goldman adds. 

Due to this complication of asset ownership and copyright, some NFT projects have decided to forgo copyrighting their work altogether by adopting CC0.  

Ground CC0 

If copyright adds barriers to a work, then, CC0 “works like the upside-down world of copyright,” Goldman says. 

A project with CC0 is straightforward. Unlike with the early days of Larva Labs, which had unclear copyright rules, the rules of CC0 allows anyone to do whatever they want with the intellectual property of the work without the creator’s permission. 

CC0 removes the commercialization and use limits of a work as well, which is the reason why the founders of NounsDAO decided to adopt it. The Nounders, as the founding team of the project is called, wanted anyone to be able to freely reproduce or create derivative work that points back to Nouns. It’s like how citations ultimately strengthen an academic paper, Nouns co-founder Punk 4156 previously told The Block.  

However, the unlimited reproducibility that comes with CC0 is not without risk. Racist, sexist, xenophobic or other harmful elements that can weaken a public domain project’s brand, says Omar Abdallah, attorney at Rose Law Group. If that’s the case, there’s not much legal recourse the project’s team can take. As was the case with Nouns, the potential for harmful derivative works was a risk they were willing to take.  

So when it comes to adding CC0 to an NFT project, “I think it [CC0] can weaken the brand. I think you can also strengthen the brands, it really depends,” says Omar Abdallah.  

While CC0 is a relatively newer trend in NFT projects than copyright, current data shows that CC0 has lower trade volume and transactions levels than copyrighted ones. The top project copyrighted project, Bored Ape Yacht Club, has three times the sales volume as the top project CC0 project Moonbirds. 

There is no one-size-fits-all copyright license for NFT projects, Mohammad says. The type of copyright a project does or does not adopt should be based on whether the project founders want holders to maintain commercial rights or whether they want the overall brand’s recognition to flourish through freely made derivative work. 

While CC0 and copyright have their uses for NFT projects, there’s a grey area that’s often missed in these conversations, says Florida-based intellectual property lawyer Daniel Barsky. 

“People forget there’s a there’s a concept of ‘fair use’ in copyright law,” he says. “There’s always been the ability to fairly use copyrighted works for a variety of purposes, right parody. It’s not like it’s always been the situation where if there’s a copyright on a piece of IP, it’s going to be forever walled off.” 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: MK Manoylov

JPMorgan seeking hire to push banking products onto metaverse, crypto companies

Wall Street megabank JPMorgan is looking to expand its reach in the crypto market, seeking a new business development specialist in its payments group to target new clients across Web3, the metaverse, and crypto. 

The bank — which has provided banking services for crypto exchange Coinbase — noted in a job advert on LinkedIn for a payments business development manager that the firm is keen to grow its business in merchant banking and treasury services “in the Web3, Crypto, Fintech, & Metaverse industry sub vertical.”

The new hire would sit in the bank’s technology, media, and telecom payments team on the West Coast.

As reported in 2020, JPMorgan took on Coinbase and Gemini as its first crypto exchange clients. More recently, the firm announced in February 2022 that it had opened up a branch in DCG-backed metaverse Decentraland.

Per the job description, the new hire would be responsible for lining up new corporate clients for a wide range of payment products, including transactional FX, liquidity and treasury services, and escrow. 

“There is no industry playbook for these segments. This individual must be comfortable paving a path, creating frameworks, and working with extremely fast moving companies amongst ambiguity,” the bank said. “These segments require increased technical knowledge around software that do not fit into the traditional training of front-office financial professionals.”

Elsewhere, Wall Street heavyweight Citigroup was looking to hire a global head of digital asset risk management, signifying its own strategic push toward crypto services, as The Block reported in January. In August, Morgan Stanley Wealth Management seeking a product development manager for the firm’s Investment Solutions Product Development team, which is responsible for supporting more than $900 billion in assets under management. 

To be sure, such job ads don’t necessarily mean banks are moving into new crypto opportunities at breakneck speed, as previously noted by Bitwise CEO Hunter Horsley.

“Hiring a mid-level person to work on something like this doesn’t guarantee a product comes to market,” said Horsley. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Frank Chaparro

Vitalik Buterin makes surprise appearance at Kyiv Tech Summit

Vitalik Buterin, the co-founder and face of Ethereum, made an appearance at Kyiv Tech Summit in a show of support for Ukraine amid its ongoing conflict with Russia. 

As reported by Coindesk, Buterin surprised the audience after keeping his planned appearance a secret for security reasons. The visit to the war-torn county is ahead of Ethereum’s merge next week, which will officially transition the network to proof-of-stake from proof-of-work.

The summit’s organizers tweeted that it was Buterin’s first visit to Ukraine. Still, it was not his first indication of support for the country since the the onset of the Russian invasion at the end of February. A Russia-born Canadian citizen, Buterin has publicly donated to Ukraine’s war effort and taken to Twitter to curse out a prominent representative of Vladimir Putin’s regime. 

He joined a roster of guests from the mastheads of Ukraine-based or originated firms like Kuna Exchange, Celo Foundation, Near Protocol and Allbridge. Also appearing were leaders from Ukraine’s Ministry of Digital Transformation

Crypto has been a prominent success story in Ukraine during wartime. The decentralized industry has sustained jobs for displaced Ukrainians, while also providing a line of donations to the military effort. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Kollen Post

Singapore’s biggest bank DBS to acquire land in The Sandbox metaverse

Singapore’s biggest bank DBS announced a partnership with The Sandbox, a decentralized gaming virtual world and a subsidiary of Animoca Brands, on Friday. As part of the partnership, DBS will create a metaverse experience and buy land in The Sandbox.

DBS will buy a 3×3 plot of LAND — a unit of virtual real estate in The Sandbox metaverse — to develop “BetterWorld,” an interactive metaverse experience showcasing the importance of building a better, more sustainable world.

“Our partnership with The Sandbox and Animoca Brands marks the start of an exciting collaboration as we push the boundaries of what is possible in the metaverse,” said DBS CEO Piyush Gupta. “We also look forward to harnessing it as an additional innovative platform to spread the word on important ESG [environmental, social and governance] issues and to shine a spotlight on communities and partners doing good work to address them.”

DBS said it is the first Singapore company to partner with The Sandbox and the first local bank to make a foray into the metaverse. The bank said it will also purchase carbon offsets to make its metaverse move carbon neutral.

DBS’s metaverse move marks its latest in the web3 space. Last year, the bank’s brokerage arm, DBS Vickers, received a crypto license from the Monetary Authority of Singapore, allowing its institutional clients access to its DBS Digital Exchange by invitation. DBS also offers a crypto custody solution.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Yogita Khatri

Ethereum’s staking yield after The Merge will be lower than expected

The Merge is expected to occur within the next two weeks, and one of the overarching discussions has been around what yield to expect on Ethereum once it moves to proof of stake.

There is a bit of a misconception that Ethereum staking will pay out yield as high as 12% post Merge. This is largely based on historical data that has drastically changed over the past year, such as the amount of ETH staked. The current network usage and staking data give a much lower yield number.

This isn’t to say the yield couldn’t reach the higher estimates. It’s contingent on several factors, such as the burn amount and network activity. But unless there’s a big increase in market activity, those numbers are unlikely in the short term.

How is the Ethereum staking yield determined?

Let’s first understand where Ethereum yield comes from and how the yield is determined.

In order for proof of stake to work, ETH needs to be staked in order to run a validator. Validators create and verify new blocks, and without them the network couldn’t operate.

The yield paid to validators comes from: block rewards, transaction tips paid for prioritized transactions, and tips related to maximum extractable value (MEV).

Block rewards are shared by all the validators. Ethereum’s yield from block rewards is determined by the amount of ETH staked.

How the yield will drop if there’s more ETH staked on the network. Image: EthHub.

Transaction tips are also distributed to validators. During periods of network congestion, users can tip validators to incentivize their transactions getting prioritized and chosen over others.

MEV rewards are the final component to Ethereum yield. Validators that post new blocks can reorder transactions, and users may try to pay validators for a specific ordering that they can profit from.

Where the current numbers put us

According to Dune Analytics, there is approximately 13.51 million ETH staked, roughly 11.3% of the total supply. This would put validator block rewards at approximately 4%.

The other contributing factors to ETH staking yield, MEV and transaction tips, are largely dependent on network usage.

More transactions and higher transaction costs result in larger tips. This also results in higher amounts of gross MEV profit, and more ETH burned.

Throughout the past year, transaction prices sometimes were as high as $200 for a token swap. Compared to today, that number has drastically reduced to around $5 to $10. This suggests that the extra revenue will be a lot lower than it was in the past.

Selini Capital SIO Jordi Alexander published his predictions for Ethereum’s staking APY in 2023 based on current data.

By 2023, he expects Ethereum validators will receive roughly 3.2% APY, accounting for block rewards, MEV, and transactions tips.

 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Mike Truppa

Three biggest crypto stories from the past week

The past week in crypto was busy with news across beats. Ethereum’s Bellatrix upgrade, Binance’s BUSD push and the White House’s call for crypto mining standards were some of the week’s key developments.

Ethereum’s Bellatrix upgrade

Ethereum’s Merge came closer last week with its Bellatrix upgrade going live on Tuesday. Bellatrix is the final step before the Ethereum blockchain switches to a proof-of-stake consensus model from its current proof-of-work model. The Bellatrix upgrade prepares Ethereum’s proof-of-stake Beacon Chain for The Merge with its mainnet Execution layer.

The Merge’s final step is Paris, which is expected to occur next week, around Sept. 14 or 15. Beacon Chain (Consensus layer) validators will then take over from proof-of-work miners to start finalizing Ethereum’s mainnet blocks.

Binance’s BUSD push

Crypto exchange operator Binance introduced “BUSD Auto-Conversion” on Monday — a process that will automatically convert users’ existing balances and new deposits of three stablecoins to its own stablecoin, Binance USD (BUSD). Those three stablecoins are USD Coin (USDC), Pax Dollar (USDP), and TrueUSD (TUSD).

The move will take place from Sept. 29. Binance said it will not affect users’ choice of withdrawal. They will continue to be able to withdraw funds in USDC, USDP and TUSD.

In addition to auto conversion, Binance will also end trading pairs for the three stablecoins against BUSD and Tether (USDT) as well as major cryptocurrencies like bitcoin and ether. The stablecoin-to-stablecoin pairs will close on Sept. 26, with the stablecoin-to-crypto pairs on Sept. 29.

Competitors welcomed Binance’s move as it is expected to consolidate liquidity for users.

White House’s call for mining standards

The White House published a comprehensive report on crypto mining on Thursday, highlighting the industry’s energy use and impact on climate change.

The report was mandated by U.S. President Joe Biden’s executive order on cryptocurrencies and called for standards to minimize the environmental impacts of mining cryptocurrencies such as bitcoin. Those proposed standards focus on the use of clean energy, low water and low energy intensities, among others, the report said.

Other proposals in the report include more comprehensive data collection on crypto mining energy use and the development of “energy conservation standards for crypto-asset mining equipment, blockchains, and other operations.”

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Yogita Khatri


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