Gray Glacier live, Arbitrum Odyssey paused and more - The Daily Gwei Refuel #396 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the delegate refuel where we cap the latest news in the ethereum ecosystem i'm your host anthony designer and today's the 30th of june 2022 all right everyone let's get into it so the gray glacier hard fork went live on mainnet just uh i think a couple of hours ago and you can see here tim bico posted about it saying 20 blocks past the fork and it's looking good all monitored nodes except open ethereum which doesn't support the fork are in sync no blocks on the old chain so far so it went through you know as expected right as i've said before it was just a hard fork to delay the difficulty bomb until i think september october so the race is on now guys like really this could potentially well this should be the last hard fork before the merge you

know if we have another one it'll be because for some reason we haven't been able to do the merge in september and we've pushed it back again and all that sort of stuff but we'll see we'll see what happens there but i i like kind of like when things go smoothly like this and just uneventfully like you expect the change just keep going right you don't during these kind of like hard forks the way they're supposed to work is that on one block you're on the kind of like old you know state of the world and on the next block you're on the new state of the world and nothing is supposed to break and that's been true for pretty much all of the hard forks i believe um there has been kind of like obviously bugs here and there over the years but yeah i always love seeing kind of like

one of these things go through and go through successfully even if it's something as kind of like boring as a difficulty bomb delay right but yeah that's live there now uh so all good there nethermind also released a new version of their client today so it updates ttd for merge hard fork on the sapoli network and it makes snap sync the default sync method on mainnet gurley and robston networks so if you write another mind be sure to update your node to this latest uh kind of our client to get the benefits of that uh there was an interesting thread today from ethereum pools.info here regarding where the rewards come from after the merge for stakers right and what the penalties look like and i really like this table because it shows exactly what you get rewarded for and exactly what

you get penalized for so on the reward side there is uh consensus rewards and that's broken up into four different categories source target head votes sync committee block proposal and whistle blowing then you have execution rewards which are transaction tips aka fees that the the unburned fair revenue mav rewards and uh decrease in eight supply so i think those last two and obviously maybe awards are gonna vary depending on kind of like what uh what pool you're with or what what what kind of like software you're running on your own solo staking are you running like mev boost and things like that and then decreasing each supply obviously comes from the the eighth being burns and then over time you expect the eighth price to go up to reflect that right over the longer period and then on the penalty side you have slashing inactivity

penalty attestation penalty and sync committee penalty so i i've kind of like brought this up a bunch of times on the refill before but i think people really need to be aware of the fact that slashing is a very specific penalty it is specific to if the network thinks you're attacking it or if you're doing something that the network considers to be hostile to it and this can happen uh even if you're not trying to attack the network as i've said before you could be slashed for the double signing and that could be you just trying to set up a redundant setup and having your say your same validator running in two places at the same time and then signing the same thing or voting on the same thing and then getting slashed for that whereas something like the inactivity penalty is what happens when you go offline and

this is very very different to slashing you basically slowly leak eth out over time but it's so slow that essentially if you're offline for like a month and then you're online for a month your rewards would just net out to zero so you really don't don't lose much doing that but in saying that if the if a vast majority of the or if a large part of the network is offline and so are you then the network starts to think okay well it's just an attack right and then you get kind of like i guess uh the um the penalty increases from there and then you lose more eighth because of that but if you just go offline in your own maybe you your internet went down or something like that it's definitely not something to worry about but uh the this kind of like

thread here goes through a lot of this stuff that i just kind of like talked about in much more detail so i highly recommend giving it a read it's not too long but i think it's really really great especially if you're a solo staker you definitely want to be aware of all these things in a post-merge world to maximize the rewards you can get and to obviously minimize or make sure that you don't get penalized ever pretty much like that's the ideal kind of like goal for a validator right to maximize your rewards and never get penalized obviously if you go offline because of a network outage or something like that it's kind of unavoidable like you can set up your your your kind of like um set up to be ultra redundant right you can have like a ups which is a universal power supply so that if your power goes

off it keeps running or you can have a backup network but you can't ever guarantee 100 uptime right it's always going to be 99.9 because what if for some freak reason your backup network also goes offline right or whatever some some reason your power goes offline for longer than the ups can stay online for or longer than you can kind of i guess uh get a new ups in place or something like that so there are going to be times rare very rare occasions if you even if you have ultra redundancy that you might get kind of like an activity penalty but the thing is is that you should just aim for 99.9 and it's not that hard to get there to be honest like i it's quite quite easy especially if you have monitoring set up on your own validator if you're a solo

staker and if you're part of a pool it gets a difference a bit there but uh but yeah anyway you can check out this thread i'll link it in the youtube description uh prismatic labs posted their first community update in a while today so obviously they haven't been posting these because they've been very very busy with the merge related work but this is their first community update since i don't remember when the last time i did a community update was so this is for june 2022 um their last update yeah it was december 2021 so that was what six seven months ago now yeah i mean it feels like that i haven't seen one of these in a while but really really great to see them back on these updates here you can kind of read through all of this these updates are great guys like if you really want to

know what's happening especially on the kind of like consensus layer eth2 side of things you definitely want to read this and you also get like a bit of a peek into uh prismatic labs themselves see how what they're doing you know new hires things like that so definitely go check this out i'll link it in the youtube description all right so vitalik posted some notes around different approaches for capping the validator set size to decrease the load of beacon chain of a beacon chain node and make ethereum more ready for single slot finality so i've spoken spoken about this before especially in the discord channel around there being a bunch of ideas of how to cap the validators on the validator set size on the beacon chain so that we can basically do things like as vitally mentioned single slot

finality because for those of you who don't know the 32 eighth requirement for solo staking was not chosen based on the eighth requirement it was chosen based on how many validators the beacon chain could handle right depending on kind of like a total supply of eighth you get like a maximum or an upper bound of how much uh eighth can be staked and you have an upper bound of validators but what if we could uh do it in another way such that we limit the amount of active validators that can be on the network at any given time so that we can do things like single slot finality so that we can potentially bring down the minimum amount required and stuff like that i don't actually think the minimum eighth amount kind of like required for solar staking coming down is really something that should be a main goal and i've explained

why before but the number one reason is because even if we get it down to like you know four eighth or something like that i mean if we all expect each to go up in the long term and say eath is even like five thousand dollars even at four eight that's 20 grand like most people don't have 20 grand lying around to drop on a on a on a validator right so i don't think that that should be the priority i think the priority should be seeing what features we can get out of this this sort of work and one of those features is single slot finality and how finality works today on the beacon chain is essentially it's 12 minutes so you have epics and epic is every six minutes and then two epics makes finality and that means that two thirds of the staked

eighth basically says that anything up until this point if it gets reverted or if it gets attempted to be reverted then there's a massive penalty that takes place um using that so it's very very strong kind of like economic finality on on that kind of like part of the chain but that limits certain things uh and limits certain guarantees so can we get that down can we get that 12 minutes down to potentially single slots right and slots being blocks in this case which means that you could have finality every 12 seconds from my understanding that's how it should work a slot is a i mean so a block in the on the beacon chain is technically called a slot uh so a single slot finality would imply that you would have finality every 12 seconds at least that's my understanding hopefully i'm getting that right there um but there

are a few different strategies in here that vitalik discussed uh both the pros and cons of and i highly recommend giving this a read here it does seem like a quite a difficult problem to solve especially because there's no kind of like perfect solution it's basically like everything in crypto choosing the solution with the least amount of trade-offs all the trade-offs that you find acceptable and to do that takes a lot of research a lot of back and forth a lot of iteration for us to finally get to a place where we where we would like to be and that's how pretty much everything in ethereum land uh comes to be like from scaling to uh protocol work to sharding to everything else like the original vision of sharding was execution sharing and that has been abandoned uh a while ago in favor of data shouting and then that got

changed to uh dank sharing or proto dank sharding as well so there are always changes happening because we we figure out better ways to do things we figure out simpler ways to do things and simpler is always better as well because the the thing that i guess like blockchain should strive to do is be as simple as possible while getting the features that we want because complexity is really an enemy in this case especially in economic networks because the more complex you make it the more surface attack there is for exploits for bugs for for kind of like economic attacks things like that so if we can simplify things as much as possible then that is what we should be working towards and i think that's been true for pretty much every single uh kind of like upgrade or every single kind of uh uh new thing that's come to

aetherium even the layer two stuff like for example going back to state channels and plasma they had a lot of trade-offs associated with them they had a lot of overheads and now we have roll-ups roll-ups have their own trade-offs but it's much better than a plasma or or a kind of like state channel network or any of the other constructions back from back then that were just that were um discussed a lot roll-ups are just much much simpler and obviously we can add complexity to roll-ups you can do things like layer 3 and recursive proofs all these sorts of stuff but what are we getting for that well we're getting massive scale is it worth the tr worth that kind of like trade-off trading off simplicity for a bit more complexity of course it is and i've discussed this before on the refuel especially when peter from geth put out

his tweet thread you know whenever you're looking at adding complexity to ethereum for example it you just basically have to do a justification of okay if we add this complexity what's the benefit like do we get 10 times benefit hundred times thousand times and i would actually argue that the extra complexity of uh kind of a rollup centric roadmap which is actually a necessity a necessity it's not something we can even get around but you know in terms of going from just like one singular layout to a rollupcentric roadmap we get 1000x benefit like to me it's it's an absolutely massive benefit not today right in the future but uh well hopefully in the future but you know that that's kind of like how i view these things so definitely give this a read here because i roll talking about rollovers perfectly segways mean so the

next thing i wanted to talk about which was the arbitram drama now of course a lot of you will know that the arbitrary odyssey event has been paused because the arbitrary network was got congested now people may be wondering how did the arbitrary network get congested how did the uh fees on arbitrary actually get more expensive than on layer one ethereum well my friends it has got probably pretty much nothing to do with all the fud that you have read out there that roll-ups don't scale that roll-ups are a failure that roll-ups are promised too much and can't deliver guys it's going to do with that i'm going to break it down for you so i've talked about this a lot arbitrary one the currently live arbitrary network is throughput limited now what this means is that they they've got a literally a hard cap on how many

transactions they can process and it's based on the how much gas can be used on the network because it's similar to how ethereum layer one is now the ethereum layer one gas limit as it exists today is 15 million i mean there is a i mean technically the gas limit is 30 million but it's actually 15 million it's just the way aip1559 works but i guess that's just going off track a little bit there but on arbitrary it's different like i don't know the exact figure of what it is on arbitrary but from what from my understanding you could probably do about 250 to 300 000 transactions per day and then you hit the limit of what arbitrary kind of like handle there now once you hit the limit what happens guys like i'll give you a couple of seconds to think of the answer here what happens

when you hit the limit of a blockchain's scalability oh the fees go up right the blockchain's throughput i should say the fizz go up it's what happens on ethereum layer one that's what happens on every other chain out there um except for ones that don't have free markets like solana and then what happens to solana when they when they kind of get spammed with transactions and they can't handle the load it falls over like i've talked about this a lot but anyway that that's the kind of like track we're on right now so ethereum layer one can typically process depending on how much gas is used for that day and what transactions are done one to one point five million transactions per day based on the current gas limit and as i said it is based on the gas used it is not based on

transactions because not every transaction is created equal because each transaction uses different amounts of gas so there's that aspect to it so same is true for arbitrary because they they've got their own kind of like avm um which is the kind of like arbitrary virtual machine and they process transactions differently to ethereum layer one but it's still kind of the same concept there and that brings me to my second point about arbitrary is that the reason why they're throughput limited is because of the fact that they're waiting to uh deploy nitro which is this massive protocol upgrade that will fix a lot of the things that are currently limited about the arbitrary one network and that throughput limit is the the key here so once nitro goes live the hope is that they can kind of like they'll probably still have a throughput limit but like raise that much much higher

than what it is so they can have more capacity for transactions so that is the reason why arbitram transactions got more expensive than ethereum layer one because the demand for arbitrary exceeded that limit and to get your transactions in you needed to pay more as simple as that the same thing with ethereum layer one now does this kill rollups does this kill the roll-up thesis does this mean roll-ups are broken no it does not mean they are broken it just means that we are still very early i've said this plenty of times on on the review and obviously everyone talking and fighting on twitter and stuff don't watch the refill because if they did they'd know this like this is basic stuff that i talk about a lot on on this show um but essentially like uh the the the thing is is that it's got

nothing to do with the with the fundamentals of a roll-up it's just simply got to do with the fact that there's a hard limit on how many transactions can be processed and because of that people outbid each other once the limit is reached now how why was arbitrary so popular because this odyssey event is extremely popular and also some apps on arbitram um so there's actually more to this uh than just the two things i've brought up so some app apps on arbitrary aren't doing gas fee estimation correctly and there's also other infrastructure issues there as well which again aren't inherent to the roll-up itself but uh surrounding the roll-ups so infrastructure issues you could call them sort of like when an rpc rpc goes down uh and for those of you who don't know an rpc is basically you're a node that you hit to relay your

transactions whether it be a third-party node on your own node and typically from time to time we see that it's our pcs get overloaded it doesn't mean the roll-up's gone down but it means that the rpc is having trouble processing or relaying your transactions to the network so there's maybe you know slowness there or maybe just not there's no transactions being processed at all because of that right so there's that aspect to it as well so that's why they paused odyssey because they're like okay well we should get nitro out before we kind of let people let people hit this and i really do think that they underestimated the demand for this especially in a bear market like i honestly didn't think there would be this much demand for considering the bear market that they were in but i think that's bullish that there's been

this much demand but at the same time i really do think arbitrary should have put nitro life before they did odyssey like i know as i said they probably underestimated the demand but it kind of feels like in hindsight yeah nitro should have definitely gone live before before odyssey but i just wanted to clear up that fud there because i'm so sick of it like guys i was talking to a friend about this and they kind of like they didn't ask me this question but they kind of like alluded to us like why i get so passionate about this stuff why why i go on my rants about this stuff why i get so angry about it is because if you're just like an everyday observer you're just a regular user and and you're kind of like seeing these sorts of things happen and you're just kind of like

lurking then you're probably not um you know not going to stress too much about it but me as an educator as someone who tries to clear up the fight who's someone who has a big presence right in the community as someone who talks about layer twos a lot as someone who ha who is very well known i get bombarded with questions around these sorts of stuff all the time as soon as something like this happens i get constantly bombarded with questions and look i don't mind the questions but at the same time you can probably you can probably see why for me it hits a lot closer to home than someone else uh because of the fact that like i'm seeing all this i'm getting bombarded with these questions and i'm just like oh my god like this is just insane and i kind of think to myself like how do we

educate people more like how can we do more here i don't know what else i could be doing i mean i do so much already like what else is there for me to do and then i kind of like um i look and i'm like well i think at the end of the day there's only so much i can do and then it just it falls on everyone else to wants to kind of go out there and get the knowledge and then there's a large number of people who actually don't care about the truth all they care about is fighting roll ups because they're invested in other ecosystems and you know what i can't change that i don't think anyone can change that i think that's just a kind of like natural consequence of the competition that we have between different networks and that's totally

fine but yeah it always just annoys me when people have this wrong take on like completely wrong take on things and don't realize that there's a reason for this like people go straight to our rollups are fundamentally broken instead of just like digging a little bit deeper below the surface to see to see what the actual issue was and the actual issue is that arbitrary one is throughput limited and because of that the fees went up once they hit the kind of i guess like um limit there and the same is going to be true for every single blockchain every single crypto network every single anything guys like as i said if you don't have a fee market to control congestion your network gets spammed it falls over so what do you what would you prefer i personally prefer a fee market to control congestion and then

increasing the amount of throughput that we have on these chains rather than letting the chain fall over um now obviously there's a debate about that as well people like oh well falling over is fine as long as we get like really cheap fees and throughput and i'm just like i don't understand that at all especially in the d5 world that is just such a bizarre take to me but that's a take and that's fine i mean there's different philosophies but roll-ups are early nothing has unlimited scalability we're going to see how far we can push roll-ups how much transactions per second or throughput we can get we're hoping we can get coupled with the sharding upgrades that are coming but to potentially millions of transactions per second uh eventually that's not going to happen today it's not going to happen

tomorrow it's going to happen next year that that millions of transactions per second it could happen in five to ten years right so we just have to keep working towards that scalability is a marathon not a sprint it's we can't make it happen overnight there is still plenty of work to be done here and we need to do it in a safe way as well because we're dealing with money we're not just we can't just play cowboy with people's money and we've seen the teams that play cowboy with people's money they they lose people's money and people and then people get scared off and leave the ecosystem that's the worst outcome so let's you know not be too harsh on these kind of teams that are on the bleeding edge of scalability and realize that there are methods to the madness there's a reason why things the way they

are and kind of like if you see this fight if you see this bad information out there if you feel confident enough you should correct it yourself like i think that's the best way to educate a wide range of people is like i just shouldn't just fall on myself you know bankless uh a bunch of other educators out there it should definitely fall to everyone um but only if you feel confident like i'm not gonna force everyone to be like oh you should be debunking that far direction i'm not a true etherean right i don't think that at all but i think that education comes from everyone you don't have to be an educator to educate you can just you know to correct someone or you can just kind of like give someone the right information everyone can can spread education whether you know you've got a large following or a

small following or no following it doesn't matter as long as you're educating people and then they can go educate people as well i think that's what matters anyway i i promised i wouldn't rant too long about this in the discord channel before so i'm going to move on for today but hopefully that clears up a lot of the stuff for you guys all right so speaking of scalability polygon has introduced polygon avails test net today so i've spoken about avail before this is basically uh polygons um data availability blockchain it's their solution i guess like it's their solution or i guess competition to something like celestia for example so what you can do with this is what they've described in this thread here basically you can post your data to polygon avail and then post the proof to ethereum

layer 1 and you can have a a validium right so you can see here exactly what it is so a zk rollup is when the proof and data both goes to ethereum a validium is when the transaction uh data goes to an uh kind of like um a data availability chain or the data availability committee and the proof still goes to ethereum now why is this cool why is this good like shouldn't we just you know focus on roll-ups or all that sort of stuff well it goes back to what i was saying before roll-ups are awesome but they're not where we want them to be today there is heaps of scalability demand today still even in the bear market but the technology is not there yet so let's use all the tools that are available to us and i've been pretty consistent with this view as well i talked about this

with regards to optimistic versus zk roll ups let's just be very uh kind of like um consistent with our our uh kind of like view on these things and and definitely kind of like look at all these solutions as growing the pie together i think especially if they still use ethereum right and i mean the reason why you want to put like posting data to a veil would be something that a team would want to do it's to bring costs down because posting data to ethereum is very very expensive right now and it's going to remain expensive until we have proto-dunk shotting and even then it's still going to like eventually we're going to hit a limit there and the fees will just go up again so until we get full data sharding which could take until like 2024 maybe like for i'm talking like the

full rollout of data data sharding right not just proto dank sharding i'm talking about like the entire thing like a complete date like a data sharing feature set it's probably going to take a couple of years still so in the meantime what we need the scalability so let's make sure that people can post their data to things that aren't just like a consortium right obviously posting data to like a handful of nodes uh like what um like a data availability committee or something like that that you don't even know you can't even run your own node for you can't do anything for is is insecure but with avail right or the way that they're kind of like building a veil from my understanding here is that they want to allow people to run notes like me and you to run these nodes and run this

stuff on our own software potentially stake medic tokens right to participate in the network and things like that and kind of get rewarded for that so i think that when you think of the solutions like in that context it makes a lot of sense and that's why i'm really bullish on something like polygon avail and that's a as i said it's hit test net now and you guys know i'm an advisor to polygon so like obviously i'm going to have a little bit of bias here but i think the polygon they instead of going for like the roll-up maximalist approach they've taken the scalability maximalist approach right with ethereum in mind of course where they're like okay well roll-ups are bloody awesome we're going to build lots of roll-ups but there are other scalability solutions that we can build today that are that are really

cool as well yes they're not like full ethereum security and full ethereum decentralization but there is demand today that needs to be met so let's meet it with the tools that we have and then eventually when roll-ups mature to the place that we want them to get to we can move people to that right for example so i think that approach is pragmatic it's probably not the approach that you know will kind of like win out long term but this is more about short to medium term than the long term the longer term i think the roll-ups are just going to eat everything but until we get to the point where roll-ups can be very very cheap thanks to dank sharding and data sharing all that sort of stuff we're going to need these other solutions that's for sure so very cool to see this from polygon definitely go

check out their announcement i'll link it in the youtube description so uh consensus announced that they have partnered with starkware on a strategic partnership to set a product partnership and a set of product integrations that will make stock net the first dkr up layer 2 supported by infuria and metamask so basically if you're a metamask are kind of like partnering with starkware to enhance starknet here this is pretty cool obviously infuriate and metamask are two of the most popular things within ethereum and the funny thing about these solutions is that most people have no idea what infuriate is but most people use inferior right it's that rpc relay that that's defaulting metamask and everyone pretty much knows what metamask is it's funny how those two

things are like basically polar opposites but both consensus products both extremely important to ethereum and now a bit going to be used within the stark net ecosystem which is very cool to see as well and this is the kind of like key infrastructure that's needed for these layer twos you can't just have like um you know some some kind of like bare bones infrastructure you need battle test their battle hard and scalable infrastructure to service user requests because at the end of the day most users do not use their own rpc right they outsource it to a third party which is fine but it becomes an issue when these rpcs can't handle the load and then users kind of like blame the network right they're like oh like i think when optimism had their rpc issues they were like blaming the optimism they

were fighting roll-ups again when in reality it was just the rpc that was having issues and this has happened plenty of times before with many many rpcs uh and even with infuria on ethereum for example so i think it's good to have battle test and battle hard and infrastructure available for starting it here so very cool to see this definitely go check it out i'll link it in the description all right so we finally have a bit of an update here from compound labs about their multi-chain strategy now for those of you who remember compound labs announced in december 2020 that they were pursuing a comp chain similar to what dydx chain is doing now that didn't really go anywhere they were building it with polkadot substrate tool rather than cosmos's tendermint

a cosmos sdk tool so it was it was a different implementation but it was still the same thing like let's build an app chain and like build bridges between it and all that sort of stuff there well they've pivoted away from that they being compound and now they're taking the let's deploy to all the networks that exist today approach which is the approach that a lot of other apps have taken and is the most pragmatic one and they're going to start with evm compatible chains obviously the layer twos and things like polygon pos and the other layer ones that are evm compatible and stuff like that and then they're going to work towards uh kind of like just deploying to as many network as possible and connecting them together as well so cool cool to see this i i i do like that like they they didn't just kind of like

throw in the towel here all together of and just like say okay well you know compound's done we're gonna leave it on ethereum later on we're not even gonna worry about deploying to layer twos or anything but they've actually uh kind of say no we're gonna spin up a whole new compound compound three or v3 and we're going to be deploying it to two kind of like uh the avm chains where the activity already is where a lot of other apps are and it's really cool because i like using compound i mean i still use it on mainnet from time to time but i'd love to be able to use it on layer twos for example um obviously rvs on the layer twos and i think compound kind of lag tr but they're coming and and and it's really really cool to see this and i guess it kind of

like speaks to the fact that app chains are kind of like i don't know pointless for some things and maybe make sense for other things you know the funny thing is i spoke about the diy dx stuff the other day there's been a lot of discussion since and i'm still convinced that they're doing it for regulatory reasons but i think if i had to play devil's advocate dydx is one of the only things that i can say that it makes sense for them to do like a standalone app chain right without any composability now i disagree with the implementation i don't think that they should do it as a cosmos chain i think they should do it as a roll-up and they have and i think they should remain a roll-up but in terms of compressibility they don't need it because like they've been successful without it you just

deposit usdc into the network and then everything's uh kind of like derivative and you trade perpetuals on there and there's no need for that kind of like strict composability whereas something with comp like compound there is because it's a money market you want to be able to do stuff with funds that you borrow and kind of like uh have like money legos and things like that so it didn't really make sense when compound announced it but i think for for diy dx it makes sense but i just wish i just wish they would kind of like reconsider and and stick to the the layer two that they have but again i understand why they don't if i take the regulatory review because they they can't decentralize on a roll-up today but we'll have to see how that plays out in the future on that front

but if you want the full details of compound three here you can read this i'll link it in the youtube description below alright so some really shitty regulatory news out of the eu today and the eu has been decidedly really bad about crypto over the last few months and especially with this ruling so there's this guy ernest uh who kind of like put out this tweet thread today saying deal after months of negotiations with the council we agreed the most ambitious travel rule for transfers of crypto assets in the world we are putting an end to the wild west of unregulated crypto closing major loopholes in the european anti-money laundering rules so the tldr of this is that they're basically imposing more restrictions on

uh transfers to what they're calling unhosted wallets which is basically just your own wallet and i freaking hate the use of the term unhosted wallet because it makes it sound so nefarious when it's not it's just your own wallet right so anything over a thousand euro will be subject to stricter kind of like checks on on that kind of amount to transfer it out of like a centralized exchange for example to your own wallet now these people think they're doing something good this council thinks they're doing something good here they think they're finding money laundering they think they're fighting uh terrorist financing and um and child pornography those are always the two things that they talk about like three things actually money laundering terrorist financing and child pornography are the three things that uh regulators constantly talk about in

order to push things through because those are the things that they get broad support for from everyday people who don't understand any better or don't don't know any better and i kind of like quote tweeted this by saying this council just took away individual freedoms in the name of preventing money laundering so they're not preventing really anything here it's so stupid because if you're trying to money launder through a centralized exchange you're either already doxxed because you have to kyc anyway or you've bought an account and you don't care that they can they they can kind of like see who the person is that you bought the account from is right in that in that respect but also once you withdraw the funds to your own wallet you can just tornado cash out and basically wash all the funds anyway so this rule is made by a bunch of kind of

like i guess regulators here who just don't have any understanding of of crypto at all and it's it's extremely unpopular within crypto of course but i saw this and i'm like this just makes no sense to me but the thing is is that this is the control that they want right they don't want crypto to be as they said here the wild west for better or worse they don't want that and that this is the first step for them basically you know you could see an end state where they basically outright ban you from using your own wallet and they can basically say you're not allowed to transfer to your own wallet or if you transfer to your own wallet and then you interact with one of these blacklisted applications you're not going to be able to transfer back to a centralized exchange or anything like that like you

can see how this gets very draconian very dystopian very very quickly we need to stop this but at the same time i don't think we can like i don't think we can actually directly stop um this sort of stuff in places like uh like the eu and and kind of like places a bunch of other places around the world we can stop it by building better decentralized tools but as i said before guys they're coming for the choke points and the choke points are decentralized onboarding kind of like places like centralized exchanges fiat on ramps and stable coins they're coming for both of those things and you need to prepare yourself for that you can't just wish that it's not going to happen it's happening and it's happening fast um and as i said they think they're doing the right thing they think that then they believe that

they're actually preventing the things that they're talking about like this is the this is what um where the kind of like term the road to hell is paved with good intentions comes from because not a lot of the time these people aren't actually you know the the client kind of like um clownish evil that you may think they are they don't think themselves evil at all they actually think they're doing good and they're doing a lot of good by doing this and that's the most dangerous thing about this because convincing them that what they're doing is not good is a lot harder in that respect because they don't want to be told that they're wrong they don't want to be told that uh that what they're doing is wrong and they're going to fight that so i don't know how it works in the the eu i don't

know how to change this in the eu like i have absolutely no kind of like um read on that and i think the eu is in just a place in general right now i don't even know what's going to happen with the eu over the next few years considering all the the geopolitical stuff going on but this is not good guys and this is not just going to be in the eu this is going to come to everywhere and it's really really shitty for adoption so i hope that we can fight it in some way i know i said that it's gonna be very hard if not impossible to fight i don't think it's gonna be impossible i think it's gonna be hard i think we need to keep educating regulators and as i said i think that the ones to educate uh the the hardest ones to

educate are those who actually think they're doing a good job so yeah i don't know i i'm gonna i'm gonna leave it there you can read this thread for kind of like a a breakdown of exactly what this is how how it all kind of like works here but yeah i just think this is this is quite disgusting taking away individual freedoms just so you can try and prevent money laundering which you can't even do anyway because how many banks in europe have been caught money laundering for uh drug cartels and and and other kind of like nefarious activity right plenty plenty and you know it just hurts individuals at the end of the day it hurts law abiding individuals more than it hurts the criminals i think all right so immutable has announced staking today so the first cycle of imx

staking will start on the first of july which is tomorrow so you can move your imx tokens to your to your immutable x layer 2 wallet before then uh to participate in staking here so there's a thread breakdown of how this all works you'll have a staking dashboard all that good stuff there uh but yeah if you do hold imx tokens you can begin staking starting tomorrow which is very very cool to see so definitely go check out this thread i'll link it in the description and just finally to wrap us up here i just had my uh kind of like talk with stani as part of the merge series i'm doing with ssv network you can go listen to the recording i'll link this in the youtube description below and be sure to catch my talk with ben edgington which is happening tomorrow tomorrow being uh uh kind of

like uh friday my time i think it would be it's gonna be at the same time as i did the one with stani so it's gonna be like i think afternoon europe uh really early morning us so definitely check that out as well you can go to ssv network and sign up there but but it's recorded just like the starting one has been recorded so you don't have to catch it live if you don't have the time to but anyway i'm gonna leave it there i've gone over time so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give the video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone