July 28, 2022 / Unchained Daily / Laura Shin
Daily Bits✍️✍️✍️
- The Federal Reserve raised US interest rates by 75 basis points, leading to a market surge.
- FTX US opened stock trading in all US states.
- Tether says it holds no Chinese commercial paper.
- Blockchain game developer Immutable laid off 8% of its staff.
- Lido DAO proposed new terms for a token sale to Dragonfly Capital.
- Web3 publishing platform Mirror introduced a subscription system where users can subscribe to publications via crypto wallets.
- Ark Invest sold 1.4 million Coinbase shares worth $75 million, according to a recent trade filing.
- SushiSwap nominated a new “Head Chef” – and the proposal has only received 76 votes so far.
- Fantom voted in favor of using burn fees to fund ecosystem projects.
Today in Crypto Adoption…
- PepsiCo partnered with Security Matters to utilize blockchain technology to promote sustainability in its European supply chain.
- Meta’s metaverse division lost $2.8 billion in Q2 2022. (Disclosure: I write a Meta Buleltin newsletter.)
The $$$ Corner…
- Unstoppable Domains raised $64 million in a Series A, valuing the firm at over $1 billion.
- Naoris, a cybersecurity protocol, raised $11.5 million in an equity and token sale.
- CLST, a crypto lending platform, raised $5.3 million in a seed round.
- Trustless Media, a web3 media firm, raised $3.25 million in a seed funding round.
What Do You Meme?
What’s Poppin’?
Harmony Wants to Inflate ONE
The Harmony team published an initial proposal outlining a reimbursement plan for the 65,000 Horizon Bridge wallets that lost funds in the recent $99 million hack.
The proposal calls for a three-year payout structure that starts with a hard fork of Harmony’s blockchain allowing the team to increase the supply of ONE, the chain’s native token, to pay users back. Essentially, the team would be reimbursing users by inflating the supply of ONE by 2.49 billion tokens (19% increase of total ONE supply) or 4.98 billion tokens (38% of total ONE supply).
The team explained the decision as forward-looking. “We decided against using the foundation treasury in the interest of the longevity and wellbeing of the project as reimbursing from the treasury would greatly hinder the foundation’s ability to support the growth of Harmony and its ecosystem. Harmony foundation is committed to continue supporting Harmony for years to come and plans to reserve the foundation tokens to facilitate this.”
However, using inflation to make users whole instead of treasury funds was not well-received by the community based on forum comments. For example, forum participant dilutedtozero was especially frank with their disdain regarding Harmony’s proposal. “2 weeks for this shitty proposal & no repeg. Payment in ONE aka inflation and coins becoming worthless. A hard fork to kill the small chance this chain had. WTF. It boggles my mind that not only do we lose money, we also pay for the reimbursement ourselves via inflation. You guys have no shame to call this a ‘reimbursement proposal,’” he wrote.
For now, no decision is to be made, as voting begins on August 1st and closes on August 15th. The Harmony team is encouraging community members to provide feedback on their proposal.
ONE is up 7.3% on the day.
Recommended Reads
- Nic Carter on physical NFTs
- Maven11 Research on application-specific chains
- Joel John on bridges
On The Pod…
Two crypto law experts, Wassielawyer and Adam Levitin, analyze the bankruptcies of 3AC, Celsius, and Voyager. Show highlights:
- the difference between Voyager and Celsius “custody” and “earn” deposits
- why Celsius commingling customer custody and earn deposits could make it harder for creditors to get their money back
- what similarities and differences the Voyager and Celsius bankruptcies have
- how Chapter 11 bankruptcy works
- why Wassie and Adam believe Celsius might have engaged in shady business practices, whereas they believe Voyager was just an irresponsible lender
- what the latest is on the 3AC bankruptcy and the location of Kyle Davies and Zhu Su
- what Celsius and Voyager can clawback from 3AC
- how Alameda fits into the Voyager bankruptcy case
- whether creditors will receive funds back in crypto or dollars
- the three types of ways creditors can “claw back” funds in a bankruptcy case
- why Wassielawyer and Adam believe Celsius’ Chapter 11 plan to restructure around mining is so weird
- whether the founders from 3AC, Celsius, or Voyager will see jail time
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: http://bit.ly/cryptopians
