September 27, 2022       /       Unchained Daily       /       Laura Shin

Daily Bits✍️✍️✍️

  • Sam Bankman-Fried’s FTX US won the auction for the assets of bankrupt crypto lender Voyager Digital.
  • Crypto lender Nexo (disclosure: a former sponsor) was hit with enforcement actions from several different states.
  • After Interpol issued a red notice for him, Do Kwon, cofounder of Terraform Labs, tweeted that he is “making zero effort to hide.”
  • The Grayscale Bitcoin Trust hit an all-time low amidst the crypto market downturn.
  • Exploits related to vanity addresses continue as hackers steal $950,000 worth of crypto.
  • Crypto exchange Binance wants to return to Japan four years after its exit.
  • Compute North, which filed for bankruptcy last week, received court approval to maintain certain operations.
  • The Aragon Network community is voting to transfer treasury funds after dissolving the DAO.
  • The US SEC fined Tether’s former audit firm with $1 million for “improper financial conduct.”

Today in Crypto Adoption…

  • Singapore banking giant DBS introduced a crypto trading product for wealthy clients.

The $$$ Corner…

  • Crypto derivatives exchange Deribit raised funds from existing shareholders at a $400 million valuation.
  • Nomura, a Japanese banking firm, invested in London-based blockchain payments firm Fnality.

What Do You Meme?

What’s Poppin’?

New Cosmos White Paper Introduces Many New Features

by Juan Aranovich


A new white paper for the Cosmos Hub, the main blockchain of the Cosmos ecosystem, announced a plan to introduce Interchain Security and Liquid Staking as a way to securely scale the network. It also updates the economics of its token ATOM.

According to the white paper, Interchain Security will make it easier and cheaper for new projects to come to the network, and Liquid Staking will improve capital efficiency and user experience.

Published on the Cosmos Hub Forum, it was revealed yesterday at the Cosmoverse conference in the city of Medellin, Colombia.

“This document marks the transition to the next phase of the Cosmos Hub as an infrastructure service platform, and a renewed role for ATOM as preferred collateral within the Cosmos Network.”

The updated paper also establishes three new features: an “Interchain Scheduler,” an “Interchain Allocator,” and a new issuance model.

The Interchain Scheduler will be a block space market in which the Cosmos Hub will collect revenue from economic activity by charging a matching fee. It would allow for MEV (Maximal Extractable Value) to accrue to validators as well as protocols.

The Interchain Allocator will use the revenue generated by the Hub to fund new projects within the ecosystem. The Scheduler and the Allocator are supposed to act as a “flywheel” because they create a positive feedback loop that benefits the network.

The last main aspect of the proposed white paper has to do with ATOM tokenomics. The implementation of liquid staking, which solves the problem of the current monetary policy, allows for a new model that does not solely rely on inflation to secure the blockchain. The newly proposed issuance schedule would have increased token rewards at the beginning, and will decrease monthly until reaching a point of a 1% token inflation in three years.

Even though the document was proposed by the major leaders in Cosmos, like Ethan Buchman, Jack Zampolin and Zaki Manian, it still has to go through a governance vote to be implemented.

ATOM’s price didn’t signal a positive reaction, and is trading at approximately $14.00 at press time. Still, ATOM has been performing quite well for a bear market. Since June, it has almost tripled its value against BTC.

Recommended Reads

  1. Ren & Heinrich on how to create crypto portfolios
  2. Tomer Bariach on credit solutions
  3. Spool on real yields

On The Pod…

How Will the Legal Case Against Do Kwon Play Out in South Korea? - Ep. 401

Zack Guzman, journalist and Coinage host, and Jongbaek Park, partner specializing in blockchain and crypto assets at Bae, Kim & Lee, discuss how the case in South Korea against Do Kwon and TerraForm Labs will likely go, whether Do Kwon is on the run, and what his sentence could be. Show highlights:

  • Jongbaek’s and Zack’s disclosures regarding Terra
  • how big the Terra phenomenon was in South Korea and how Do Kwon was perceived in the country
  • whether Do Kwon posed any conditions for his interview with Zack
  • what Do Kwon is being charged with
  • the colliding opinions on which tokens are considered securities
  • whether the collapse of Terra had any negative impact on the South Korean President’s image
  • whether Do Kwon feels like a charge for violating the capital markets law is unfair
  • whether Do Kwon is “on the run,” despite his denials
  • how the potential revocation of Kwon’s passport could make him go back to Korea
  • whether Terra was a failure or a fraud, and how prosecutors are looking into it
  • whether Terra was centralized
  • the chance of prosecutors going after other people from Terraform Labs and the probability of the entity’s assets being frozen
  • how much jail time Kwon could be facing and whether he is prepared to go to prison

Book Update

My book, The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze, which is all about Ethereum and the 2017 ICO mania, is now available!

You can purchase it here: