Market meltdown, AllCoreDevs update and more - The Daily Gwei Refuel #384 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where you cap the latest news in the ethereum ecosystem i'm your host anthony sosano it says the 13th of june 2022 all right everyone let's get into it so i think i think we've got a lot to talk about today that's for sure when i last came at you on friday's refuel the price of eighth was what eighteen hundred ish dollars today it is well time recording it is one thousand two hundred and thirty four dollars reached a low of 11.75 there just before it has been a brutal weekend now i think at least from my reading the reason for such a big sell-off was that the inflation numbers that came out of the us really caught people off guard people thought that inflation had peaked that it was going

to come down and when in reality it actually went up um now everyone's kind of like scrambling and wondering what's going to happen from here is the fed going to aggressively raise rates is the developed world going into a recession how long is this going to last blah blah all that stuff right so generally everyone is pretty much risk off right and uh because of that because crypto basically is at the bottom of the barrel when it comes to risk on assets it sells off really really hard now obviously ether isn't alone here a lot of other assets have sold off just as hard if not harder so what i want to do for maybe 10 15 minutes here is give kind of like my perspective on everything really i think i've given bits and pieces here before but i want to give my perspective on

everything going on inside and outside of crypto right now to maybe help you contextualize it yourselves uh again though i'm not a macro expert at all i don't have any real insightful things to say about the macro environment but i think there are some things that i can say that uh hold true that you may not have thought of before or you may not have realized before and may kind of like help you going forward so first thing i want to start with is what i just mentioned those inflation numbers now the inflation rate is the highest it's been in what 40 years in the us uh i think the 70s was the last time it was this high and back then the way they tackled it there were two ways from from from my reading one they went really aggressive on rates

uh they jacked them up really really really high really quickly and two uh there was also an oil crisis back then that kind of like ended and obviously kind of um you know there's there's kind of like two inflation here there's kind of like the monetary inflation that comes from the money printing and then there's kind of like the inflation of things that come from like shortages so for example with the war with kind of like ukraine right now there's a lot of uh sanctions and things like that going on with kind of like um oil and that affects energy prices and petrol prices and and just all that sorts of stuff right so that's kind of like how it was tackled in in the 70s so right now people are wondering okay well you know what what's the fed gonna do they're gonna aggressively raise rates from here but

if they do that it's kind of like really bad because there's much more debt now i think there's like 400 more debt at the moment than there was in in in the 70s so if they start aggressively raising rates well that puts more pressure on people with debt and people have even less income uh to kind of like uh do things with such as just to survive they have to kind of pay down debts first like that's always come first obviously a mortgage is is pretty much like the first thing that people have to kind of like account for mortgage and rent uh before kind of like uh putting together the rest of their budget and the rest of their expenses so it kind of like just shrinks the pool of money that people have to invest in things now inflation has already done a

good job of shrinking that uh it's called demand destruction is another kind of like way to tackle inflation where by kind of like raising rates by getting people to sell risk off things by kind of like maybe forcing the economy into a recession you kind of like stop demand for for kind of like things and and you know the demand destruction leads to obviously less demand for things and inflation can go down from there but as i said like not a macro economic expert kind of like just learning this stuff as i go so that's playing a lot into it and the reason why i bring up all of that is because as i said crypto is like at the bottom of the barrel for risk on assets so crypto is not going anywhere until the top of that barrel turns back on to kind

of like risk on or bottoms out and the top of that barrel could probably be considered things like um you know i guess like the highest of quality equities right i mean there's there's probably things higher than that that a lot of risk but in terms of kind of like investable assets like super kind of like safe index funds right for example like relatively safe to the rest of the market until those things bottom out and kind of like stop going down only there's no way crypto's going to be able to catch a bid there's no way crypto is going to be able to sustain any kind of like upward movement maybe we can range for a bit maybe we bottom before the stock market does and we just sit sideways but at the end of the day no one is kind of like throwing

money at crypto right now besides maybe the people that are already in it and kind of like averaging down wanting to add to their position but retail is gone they don't they can't even be in the even if they wanted to most of them can't even be in the ecosystem anymore because they have other things to worry about uh they don't have as much discretionary income as they did during all the money printing so that's playing a huge factor in all of it at the end of the day now you know i know people kind of like look at ethan like wow ethan has come down so much i didn't expect it to go down this much and i'll be honest i didn't expect it to come down as much as it has and it could be going down further from here i don't know but i think what maybe

clouded my judgment there was that obviously you guys know i'm a puma ball on either but like i look at eighth in the context of ethereum in the context of crypto more broad more broadly i wasn't really paying too much attention to the macro environment until maybe the last maybe six months i guess i guess it was just because i never really paid attention to it i think crypto existed in a very positive macro environment for such a long time especially my whole adult life basically that i never paid attention to the macro environment because i didn't need to i didn't need to look there because to me it was just oh whatever that's just kind of like that thing over there crypto is where i'm kind of like focusing my attention but since you know the last six months i've learned a lot more about the macro

environment how it affects things it learns a lot more about how like how the fed and other central banks react to things how the economy reacts to things and how there's different types of inflation and all these sorts of stuff and you know it's been a really good learning experience for me to be honest but at the same time um you know i kind of like really didn't i really underestimated the impact that that would have on the crypto markets and i think a lot of people did a lot of people underestimated uh just how bad things had gotten because maybe in crypto we were in a little bubble where things were going really really well right we were all making money because the assets were just going up only you could throw money at anything and it would just come come raining down on you

so i think from that perspective we got a reality check we got kind of like hit in the face with all of this and we just have to kind of like survive it basically i've always said that the number one thing you need to do in crypto is just survive doesn't matter how bad it gets just don't blow yourself up i've always wanted against leverage i've always warned against some of these platforms and not using them i'm going to talk about celsius in a bit and what's happened there and that's simply because at the end of the day guys like life is all about risk like what risks you take what risks you don't take and just the the general kind of like risks that you surround yourself with and it's not just limited to investments as well i may be getting a bit kind of like off

maybe off crypto topic here but it also relates to just everything you do in life right like if you're sitting in your house kind of like just on your computer doing nothing your risk of say i don't know dying is really really low right like maybe maybe uh something falls from the sky on you and kills you or maybe your ceiling collapses in on yourself as i said i'm getting off topic here but just i'm getting to my point um but like as soon as you say you drive your car somewhere your risk of death goes up right because driving adds to that right driving a car is is risky i mean we we kind of like put that out of mind but there's always like a much higher risk of of dying driving a car than there is even like catching a bus or catching a train even even flying an

aircraft and obviously much higher than just sitting at home so the same is true for investable assets like your risk of getting wrecked goes up exponentially depending on how far down the risk curve you go buying btc and ethers quote-unquote the blue chips right is safer than buying the kind of like super riskiest uh i guess alt coins they call them or tokens or whatever like that right and then buying an index fund of the stock market is even less risky than ethan btc so there's like whole risk curve that you go down and it's kind of it's not really a linear thing it's more of an exponential thing where it's like the the the kind of like further down you go the just the exponential risk kind of i guess like um compounds itself there and then add on things like leverage adding things like kind of like

the you know the emotions that you kind of feel in the markets and things like that and it just your risk kind of like goes up a lot right so you ten thousand dollars sitting in a bank account is relatively safe right um maybe maybe not in some countries but in in the u.s you're in much of europe and australia where i am it's relatively safe to keep that in a bank account right as soon as you put that money into investment the risk goes up as soon as you put that into investment uh like uh like not ethical bitcoin another crypto asset the risk goes up a lot as soon as you start leverage trading the risk goes up even more yes the reward also goes up right like it's the same is true for driving your car somewhere i mean you're driving your car to get somewhere like maybe

it's work so you go to work you get the reward of getting paid to go to work right uh whereas with investing in kind of like assets you get the reward of a potential reward of um of kind of like making money and making a return on your investment right uh so that's kind of like how i view just life in general it's just a game of risk at the end of the day and and you take more risk potentially for more reward and that's it you take less risk and you're happy with not having as much reward that's why you see a lot of people especially as they get older and as they have more wealth they turn into wealth preservation mode where they're like well i'm not going to go and buy these random things and and kind of like gamble on these investments that are

really high risk because i want to preserve what i already have it's worth it to preserve what you have rather than try and gamble it into more like if especially if you don't need more if you don't feel like you need more i think that's a position that a lot of people find themselves in uh some position that i found myself in and i haven't bought any of the kind of like super speculative stuff in in a long time i i just basically buy eighth on the public markets right that's still pretty risky as you guys have seen i mean 80's down 70 from all-time high now as i said it could still fall further from here i don't know i don't know where the bottom is i honestly thought that um we wouldn't get this this low i didn't think we would go below the previous

all-time high but i also thought that because i underestimated how i guess much effect the macro environment is going to have on on kind of like these markets which i shouldn't have and i've learned my lesson there i don't trade these sorts of things or anything like that and again this is why i warn against doing things like leverage because if you had a leveraged position and you thought yourself yeah nah the uh the um uh it's not going below its old all-time high i'm you know i'm fine everything's good uh and then it did and then you got liquidated well you know you the market has a way of kind of like humbling everyone i think so that's why i always want against it um and then and then the self celsius thing as well maybe i'll touch on that while i'm on this topic so uh it's here so celsius

sent out an email to their customers today they basically said that they are pausing transfers or withdrawals swap and transfers between accounts so essentially there's been rumors i guess for the last few weeks that celsius is insolvent or doesn't have the liquidity in order to kind of like pay all their depositors and all their customers so because of this they've kind of like paused withdrawals here yeah and a lot of this is related to like the ste thing that i talked talked about the other day um but this is this is pretty bad i mean why why it's bad is because i think there's like a pretty extreme overlap and i had a tweet about this i think i said oh no i don't have it here but basically what i said is that there's a pretty big overlap between the people who are invested in terror um and in the

terra ecosystem such as luna and ust and those using celsius because celsius the reason why you would use it is because you've got outsized yield and the yield i mean if you don't know where the yield was coming from the yield is basically coming from celsius but putting your funds into d5 doing leveraged farming with it doing risky things with it basically potentially like i'm not i don't know this for sure but potentially running kind of like on a fractional reserve system here sort of basically like what a bank does right so that's how they were offered able to offer those outsized yields so there was just this kind of like regular users who were using celsius because they didn't want to have to deal with all the d5 stuff themselves and but they still had exposure to to those yields um so that you know there are people that

there's a strong overlap between those and the ones who are in in ust and they're just getting wrecked so not only does as i was saying before not only does retail in general and retired investors in general not have much money to put into the markets anymore due to everything that in their in like outside of the markets getting more expensive they've also gotten absolutely wrecked on so much of this ecosystem because they're not only wearing terra and celsius they were also in a lot of the riskier assets because you guys know new retail investors they find btc and eighth really boring they don't want to buy btc they want to buy the things that seem to be going up like really quickly and the things that have memes attached to them like the dog coins and obviously dogecoin and things like that and they

got wrecked on all of them all those things are down like 90 plus percent right and then there's no way they sold them most of them didn't sell most of them hold it because they have no experience they're they're kind of like first-time people in crypto they don't know about the cycles they don't know about the about how bad it can get they've never experienced this before so naturally they're just going to hold on to these things and they're going to get wrecked they're going to lose their money and they're not going to stick around they never came for the tech they came for the money so as soon as the money dries up they're gone that's why the markets and the cycles play out exactly the same every single time because humans do not change we are the same uh and the ones who stick around normally are the ones

who actually care about the tech there's a small percentage of people that stick around in these kind of like brutal bear markets that are only in it for the money uh and they're usually people who can kind of like still make money during these times maybe exchange operators and kind of like market makers and things like that but generally the community aspect of it is people that are in it for the tech and that's i guess like a positive to the to the bear markets but at the same time guys like this is why it takes so long this is why bear markets can last a long time because you just destroy all these people and they need to forget that pain if they want to kind of enter the markets again so when the markets like going back up by that point the people that were destroyed the first

time they need to forget the pain and it also needs to be attractive enough to kind of like bring in even newer people but that's on the market side of things i really hope that by the next time maybe the markets heat up again we actually have like a much better on-chain ecosystem than we do today we will have hopefully have much better scaling solutions in place users will be able to use that like much better applications and use cases and stuff like that due to the scaling hopefully that happens but yeah i mean that all that it kind of like is a storm in a teak up there guys like there's just so much to kind of like consider and think about i can't cover it all in the 15 minutes that i gave myself here but that's basically what i wanted to cover there and i also kind of like put

out a tweet where i said i always believe that from crisis comes opportunity the world is in a rough place as i discussed high inflation the war political instability as well as another thing i didn't touch on i don't think i'm going to touch on that it's too touchy of a subject but it won't always be this way when the dust settles there will be survivors you just need to ensure that you're one of them again you just need to survive guys like it's simple as that and not just in crypto but like in your real life as well don't uh over leverage don't you know put yourself in too much debt don't kind of like overspend don't invest money that you can't afford to lose make sure that your rent or your mortgage payments or your bills or anything else are covered before you start putting money into the

markets again like the money you put into the market should be seen as as kind of like income or money that you just like have written off completely as soon as you put it into the markets it should be worth zero on your kind of like um net worth uh until basically you sell it or until kind of like at some point in the future it's it's probably gone up it's at to some point right but at the same time i i tend to not count my like what i've got until i sell it like i don't look at my net worth number on zappa and kind of think to myself wow i have so much money it's like because i don't right i have a potential to have that money but i don't because i haven't sold any of it yet um and when i sell it

that's when i lock in those kind of like gains there and then obviously at the end this paradigm selling into kind of like fear you're like oh crap now what am i supposed to do i'm gonna get in away by inflation so you buy things right like for me my rule has always been i only sel really sold when i wanted to kind of like buy things but i i sold a bit extra this time around to kind of like act as a buffer because i i kind of like felt like the markets were getting really really hot and i didn't know how long like a bear market would last so there's that to it as well but that's not investment advice that's kind of like just what what i've done there but as i said christ from crisis comes opportunity an opportunity can come in

many different ways whether that's buying some assets that you're bullish on maybe getting a job in crypto there's plenty of those still i mean the uh teams are very well capitalized at this point in time or whether that's just doing something in your personal life like in the last bear market in 2018 and 2019 i got into shape lost a lot of weight fixed my mental health as well i made sure kind of like i was on a steady kind of like track there maybe that's something that you want to do as well i don't know obviously i don't know your personal situation but that might be something you want to do as uh well there uh and i think that covers everything i wanted the bulk of things i wanted to cover there about the markets and just general kind of like stuff going on right now

and then i also kind of like put out another tweet here where i said my prevailing thesis since 2017 is that ethereum will be an extremely positive force for the world over the coming decades the this thesis doesn't change whether eighth is at ten thousand dollars or zero dollars and then i have to follow up the tweet by saying people take the take the zero dollar figure too literally i was obviously being uh hyperbolic to make a point though i believe ethereum is more than the network ethereum is a set of id ideals beliefs and principles that can be applied beyond the network itself so you you can't kill that right you can always kind of like attempt to kill ethereum or the network or attempt to kind of like um uh attack it or anything like that or even succeed at that but you can't kill

the idea you can't kill the beliefs the principles of the community um they'll all always come back stronger in my in my mind so for me my thesis hasn't changed at all like my thesis as i said has remained the same since 2017. it's going to remain the same for a very long time until i start until i if if i'm not until i if i feel like the the ethereum is not going to be a positive force for the world going forward that's when my thesis changes but i'm not seeing any signs of that at all all i'm seeing is that the markets are doing what the markets are doing ethereum is still chugging along and there's no reason to be bearish on ethereum itself like you can be bearish on the prices short term long term whatever you want to do that's i think

different and orthogonal to the kind of like point i'm trying to make about the network itself and the people behind the network because at the end of the day the network is just one part of it the people i think is the more important part of it and that's kind of like why i put this tweet out here um okay and then yeah i had another tweet where i warned about not playing with leverage number one rule investing is to survive i just discussed that before so i won't rehash it here and just on the leverage topic as well you can see here that there's this massive maker position where someone markets sold 65 000 eth to pay down their maker position which was pretty close to liquidation um so they sold it on dexa's and it ended up kind of like making the price of ethan unisop

go to like 950 or something like that and they still have over 50 million dollars of diet debt left as well uh and on top of that this person that owns this cdp was a um an ethereum ico investor they received 560 thousand eighth from the ico uh which makes them one of the top ten holders as well so this is an ogog but i think what happened with the market sale of the 65 000 eth is that it was automatically triggered because i think oasis the um the app has a built-in service that allows you to protect your position if it gets too close to liquidation so i would have just automatically sold the 65 000 eth on the open market to pay down uh the debt in order to lower the liquidation price which is sitting at 874 right now so this vault could still be liquidated

if that price if it went to that price but i don't know how much money this person has do they have more money to cover this debt all that sort of stuff there but it's funny because we saw similar things in 2018 where people were struck were kind of like scrambling to pay down the debts on then it was then called cdps which were leveraged positions um and people tried to pay it down all the way to 80 and some people didn't make it some people uh uh kind of uh i guess uh not only didn't make it but they kind of like got liquidated because of that uh and some people just made it right like i mean if you had opened a leveraged position at a thousand dollar eighth and then eight went to 80 bucks and you didn't have the um the capital to pay it off or the

spare capital to kind of pay down your debt and you only had eighth to keep adding to it as collateral and you didn't want to sell your wreath because i mean yeah it kind of like becomes a messy situation there but anyway i'm gonna end it there i've got 10 minutes left i want to cover the updates over the weekend i think the biggest update was it all the all-call debs call this was the one that i think everyone was waiting for since the uh roxton merge went through the i guess tldr it's a long thread from tim biker as usual you should definitely go give it a read the tldr is that they decided that they will be delaying the difficulty bomb to august i believe uh so that's going to happen relatively soon i think oh no no i think they yeah i think they did say they will be

delaying it there was kind of like a won't were they delayed or will they delay it but i think they did say that they will be delaying it yes that's correct i got a bit confused there for a sec um and people are saying oh this is going to delay the delay of the merge as i've been saying guys i don't think it's going to lead to a quote-unquote delay of the merge i do still think the merge could happen in september that's kind of like my best guess right right now we're going to see how the next test nets go with the merge sapolian girlie and all that and the shadow forks and things like that um i think there's an argument to be made as well there was there's a bit of discussion going on about kind of like i think i discussed this last week about

how the only issues that existed on the robston merge were pretty much with minority clients and the bulk of it was configuration issues so should we hold up the merge should we push back the merge by a month two months or whatever it is from the current i mean there's not really a target there from but from the current kind of like thinking around it just to get those clients up to scratch and i don't i don't think so like obviously we want better client diversity for the execution layer and we want those clients to be ready and kind of like working once the merge goes through but at the same time like i mean i think 95 percent worked fine if you if you kind of like take away the configuration issues there so the five percent in my mind shouldn't hold up the

95 percent now look that's not that's not a sl a side or an insult to the client teams or anything like that they're doing really amazing work and they're obviously contributing to client diversity by working on minority clients but i think the merge is so critical at this point not just from a um environmental standpoint which a lot of people believe in but just from uh we need to ship this thing get it out of the way so we can work on the other upgrades thing uh i just think it needs to be done asap at this point like do the testing that's fine but if the testing reveals that five and even maybe ten percent of the of the network is is still having issues but it's part of the minority clients i'm sorry but like let's just merge and those those kind of like issues can be

fixed post-merge they're not deal-breakers they're not game breakers they're not anything that's going to lead to any kind of like um catastrophic losses or catastrophic events through the merge they're just things that need to be kind of like ironed out so that's my opinion on it but for now i'm going to remain with my september kind of i guess estimation we're gonna have to see the other test nets go and see how fast they happen as well but at the end of the day i think at this point in time i've i've not heard anyone really clamoring for the merge anymore because the price went down people will come hammering for it because they're like oh my god like i need eighth to go up i want eight to go up like i need i need the triple hardening i need to eat issue introduction but guys like i've always

said to you that it doesn't matter how bullish the merge is and i still truly believe it to be extremely bullish faith the macro environment doesn't give a like if the macro environment is is weak if it's the worst that's been in 40 years then the eighth merge ain't doing anything right in the short term like the merge will happen and we'll go through and it'll be awesome the long term of course like as risk mark as risk gets get kind of like back on as people kind of like um as things recover because they will recover it's not the end of the world as things recover in the macro environment as people get uh kind of like more confident in the markets again and as people come back into crypto i think then you know eth will have those kind of like outsized returns eighth will

outperform eighth will do very well but that could be two years from now i don't know guys like at the end of the day i've always said to you i'm a long-term investor i always speak about the markets with the long term in mind and the long term for me is is decades like i'm not talking two years i'm talking decades my time horizon for eth going to um you know i've given a hundred thousand dollar price targets before was decades right um the ten thousand dollar target i could see happening sooner than that definitely but again it depends on the macro environment depends you know if we can get ourselves out of this bind if we can get inflation down because that's really the number one issue right now is getting that inflation number down to two to three percent or something like that if it stays at eight

point five percent or nine percent of it even if it goes up from here for you know for for a couple of years well that's just going to destroy everything and and i i don't think it's going to do that but we're going to have to see right so just kind of like wanted to make that comment about the merge there all right so there was a really great comment here that was shared on twitter uh by uh user punk4156 but basically this comment comes from hacker news um and i'll just read it out to you guys i really really like this it says i agree that anything that can be done with a blockchain can technically be done with a database but the practical challenges comes down to coordination problems with blockchain you get credibly new credible neutrality out of the box different developers are comfortable

building inside a shared execution environment if western union built a smart contract execution system you'd have a much much harder time convincing developers to build inside of it than you would on ethereum it would be much less likely that ethereum would shut off change the rules ban you from the platform etc the advantage that gives blockchains is composability thousands of different applications can instantly talk to one another using standardized calls inside atomic transactions databases by contrast are siloed so they work really well if you stay within the application that the database was built for but really poorly once you try to cross applications and hence databases imagine how hard it would be and how many hoops you would have to jump through to be able to use venmo to buy nasdaq listed stocks in contrast usdc and unisop work together seamlessly because they're both built on the same common credible

neutral layer ethereum i've talked about all of this before on the refuel this will not be news to any of you but i think this was just put very very elegantly here and why it doesn't matter if you don't care about decentralization but why credible neutrality matters especially to developers developers in tech have actually for the last 20 years have been gotten the short end of the stick every single time anytime they've built on one of these big platforms they get cut off like i'm sure people have heard of what happened with facebook apps and twitter apps and all these kind of like things they get cut off instantly because uh they take value away from the platform itself right because then you know the um the the kind of like features that get put in and then kind of like things that get built on top

aren't adding value to i guess like the company that it's being built on whereas something with ethereum is doing it differently right ethereum is credibly neutral you can build whatever you want on it ethereum is not opinionated about what's get what gets built on it but ethereum is still charging for everything that gets built in it right it's still charging in transaction fees it is still uh kind of like saying to people well you can build on this but you have to pay the kind of like fee to do so um whereas if you quantum where to build on on these kind of like uh i guess like uh single databases and stuff like that you're siloed and you're probably also paying rent to this centralized company that is kind of like taking all this money and and kind of like restricting what you can do with it whereas on

ethereum you're not really restricted with what you can do socially like technically you are because of the fact that like ethereum is built in such a way and you can't do everything on ethereum but then we have the layer two environments where they also want to go towards credible neutrality and they want to enable uh kind of like developers to do new things while inheriting ethereum's properties of security and composability and decentralization and all that good stuff there so i think this is just like an underrated point a lot of the time the credible neutrality aspect and that's what makes me most bullish on ethereum to be honest is that it has proven credible neutrality but also that lending itself to compressibility composability is extremely important and and definitely something that more people should talk about but yeah i just wanted

to kind of like read that out there all right so as i mentioned last week uh the hacker seems to have returned most of the kind of like op to uh winter mutes uh so they've returned i think 17 million of the 20 million op uh with one million dollar one million op sent to vitalik and i think they sold one million and kept one million as a bounty or something like that uh for uh yeah i think that's kind of like the way it broke down there so i mean great to uh i guess like uh great great that this happened right the the optimism foundation apparently is going to be uh uh reimbursing the remaining 2 million op which was kept as kind of like a bounty um and and things like that as well so i mean just great to see that this kind of

like resolved itself from the end as i explained last week i mean at this point like it just makes more sense to take the bounty than it did to keep the funds because at the end of the day you most likely were going to get caught and now you're probably not going to get caught right if wintermute lives up to what they said about not pursuing them once the funds are returned then this person gets away with kind of like that that kind of like bounty and they can just keep that and that's it right so it's basically a bug bounty uh i think you know going forward more people are going to be i guess doing this as a uh kind of like white hat thing because i mean it's funny because optimism i believe has a two million dollar bug bounty program uh for

critical bugs but would this have been considered a critical bug um because it was kind of like a technically funny thing right whether it wasn't exactly a bug it was more a mistake on um optimism in winter mood size that they didn't kind of like double check that the funds were sent on layer two um through the gnosis safe there so i don't know if they would have rewarded that two million dollar bug bounty for critical bugs because it technically wasn't but a bug right so i don't know maybe i don't know but just generally i think that on the white hat side white hat side of things it's just kind of like much easier to do more profitable to do and it just means that you're not going to go to jail right at the end of the day so good to see this from optimism

here all right last couple of things so there's now 400 000 active validators on the beacon chain staking 12.8 million each you can see that here on the beacon chain website there's function 1 437 no pending validators right now i guess like the uh i guess um what how should i say it the um the hunger to stake eight has kind of died down obviously because the markets died down but still that's a lot of eight being staked guys and honestly i do think post merge when the yields kind of like bump up uh again people will be more kind of like hungry to stake again and i think just you know market hitting up generally will kind of cause people to want to stake more as well so not too worried about that i'm i'm curious to see how how many people are unstake at time of the time of uh

withdrawals that will happen next year and what the price of eighth will be because when people started kind of putting money any money into the deposit contract or ethan's to deposit uh i think eighth was 400 back then and then it went up to 600 around the beacon chain launch so you know what happens if we're back at that kind of like price sorry back at those prices when um when withdrawals are enabled i'm not saying we are going to be but it'd be funny if we do kind of like a round trip then i'm not sure people would want to kind of i guess like remove their eighth and there's a lot of ether came in and staked uh when ethan was much higher as well so that would be kind of like weird to consider too like what the dynamics would be there but i do think that

when withdrawals are enabled we're going to see that great reshuffling as i've spoken out before so we're going to have to see how that all plays out uh there but yeah i just wanted to kind of like mention that we hit that milestone and finally here just a reminder that git coin grants around 14 is still ongoing there's over 12 000 contributions being made uh sorry contributors um uh so far with 483 000 contributed in the first four days alone very very cool to see this uh hopefully you guys have contributed thank you again to everyone who donated donated to the daily gray but then and ether don't forget to donate to everything else as well definitely go do that you have a little while still and i'll obviously keep reminding you but i think on that note i'm going to end it there for today so

thank 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