Record ETH ETF flows, Gas limit chat and more - The Daily Gwei Refuel #811 - Ethereum Updates

Transcript

hello everyone welcome to another episode of the fuel where C latest news in E acos system I'm your host andon Zano and to the 3D of December 2024 all right everyone let's get into it so we've have a big week of ETF flows for eth last week now I remember I did say that I wouldn't be covering the daily flows because I kind of felt like there were noise but there are some days that I think are worth covering and that day was last week on the 29th of November on Friday we had its biggest inflow Day Ever of a $332 million inflow day this was bigger than btc's Day on on the same day and we also had 250 million of that coming from Black Rock which was bigger than um what uh I guess like went into the Black Rock BTC ETF there so quite a

quite a big day obviously and that whole week was quite big as you can see we basically had net positive days pretty much every day the 28th was obviously obviously Thanksgiving in America so there was no trading on that day but the 29th was a really really big day there and and then uh today obviously or yesterday I should say on Monday we had an another net positive day of 24.2 million uh but we did have a bit of outflows from grayscale here but really what I kind of wanted to just touch on here was the trend I think the trend of flows kind of going up with the E ETFs is going to continue especially because we're now pretty much like over the price point of um when the eth ETFs launched if you you remember back when the eth ETFs launched I believe eth was

around $35 $3600 back in July 23rd which is the launch date obviously the approval date was May 23rd so if you had bought the eth ETF on that date you had not been in profit for quite a while but now you are in profit or at least break even and that means that uh investors are going to see that chart and say okay well you know e went initially went down after the ETF launch because there's different tickers and different charts for the ETFs and then they're going to see it going back up and and obviously I mean it's not an all-time high obviously but it's the it's the high on the ETF chart there and they're probably going to fero in or want to kind of get more exposure here I want to know why it went back up right uh and this is kind of

reflexive and that's that reflexivity that I think a lot of people are aware of at this point a lot of people talk about at this point but obviously very positive here now of course eth is not at alltime high yet the market is going absolutely crazy though across the board we've all seen what Happ what happened to xrp over the last couple of weeks and a bunch of other assets just going absolutely insane and the funny thing is if you actually go to the charts of these assets you'll see that they basically are dead for pretty much like most of the cycle like if you think about the cycle as a 4-year thing they're dead for like almost all of it except the end of it as I said the other day I believe we're in like not we're not at the end yet but we're like we're

at the later part of the of this cycle right where the bull market is in my opinion going to end in like 3 to six months it's very hard to kind of know where it's going to end that's why I give a kind of range there but if you're looking at the market right now and think this is this can sustain itself for longer than that I don't know I I just I don't think that's the right way to think about it just because of the fact that one a lot of money is required to keep the market at this level even at this level and I think it's going to go further than this but that that's a big uh big thing there there two there's a lot of unrealized gains right now people aren't selling yet or taking profits yet because everything's so bullish it's

kind of this weird thing where you would expect people to be taking profits because they've made a lot of paper gains so far because things have gone up but their expectation that things are going to go even crazier is higher than their want of cashing out right now so essentially what happens is that that's that R flexibity kicking in where essentially when you have very little sellers even though they have a lot of unrealized gains and you have this flood of new money coming in from both retail investors and now institutional inv s prices will go up but eventually that reaches a kind of equilibrium point where people have started taking profits and now that money is kind of rotating through that unrealized gains uh become realized and yes it can go higher but eventually the Music Stops eventually it's like okay well there's way too much

people kind of selling now there's way too much gains being realized and then we obviously have a big crash and I don't know how many of you remember May 2021 but that was a brutal crash I I think eth went down 60% in a week like from from that top and then obviously we had a second top on November 2021 but there is a lot of evidence that points to that being driven by fraud being driven by um FTX and Terror and 3is capital and all that sort of stuff there so I'm not sure I expect that this time around there's always like that deadcat bounce that it's a technical name for it but essentially what happens is that the the cycle top is in the market tanks and then it goes sideways for a little bit and then it goes up again because everyone's like oh this was just another

bull market cool off you know we're going to continue from here and then it tries to go up again but falls short of alltime high and then goes back down and that kind of confirms to the market that the bull market and the bull cycle is 100% officially over so I think we're going to have like that traditional kind of top uh topping pattern this time rather than what we had in 2021 because that had been the top the pattern pretty much like every other Market cycle uh and that is a more natural pattern it's not something that's driven by fraud or or anything like that but there's no guarantees here so that's that's my general view right now on how things are going uh as I said on I I think the last episode or the episode before you should really like at this point in time uh be

be thinking about sell plans honestly I know that there are a lot of people out there who will tell you that you shouldn't sell or you should only hold you know don't sell because fiat's going to zero blah blah blah but the at the end of the day right like fiat's not going to zero tomorrow like especially US Dollars it's not going to zero tomorrow it could maybe go to zero in like 50 years or something like that or I mean I guess when we say go to zero we mean like become so um worthless that it turns into U one of those other Fiat currencies that have hyperinflated right I don't think it's happening anytime soon but at the same time you don't have to stay in Fiat forever you can sell you know take those profits go buy the things that you want to buy with it

whether that's you know maybe like um buying a house buying a new car paying off debt whatever you want to do with it go do that and then use whatever you've got left over in the end to either get back into the market if you want to once the the um the bare Market hits and once things have cooled off because as you guys know from the Cycles that's the best time to to to buy things um and then yeah go from there there's no point like just like Perma holding anything unless uh uh for you you you don't have a reason to cash out I think that's kind of my logic around eth where it's like I don't have a reason to sell my eth like I just like it sitting there it's Mo as you guys know most of it is solo stake I

enjoy doing solo staking I enjoy keeping on top of everything I enjoy uh just watching my e balance go up because I'm staking right I'm getting the um the uh rewards From the Block rewards but also from proposing uh blocks uh sorry the the issuance uh rewards and and the proposing block rewards there um but yeah that's that's generally my approach to things but I'm in a different position I think to a lot of people so you have to do what's best for you but yeah as I said I do think that things are just really stupid right now really hated right now there are going to be I don't know when it's going to happen but there will be like 203% Corrections across the board that's just what happens in Bull markets because as I said people start taking profits but because the bull market I guess

structure is still intacted those people may just buy back in like straight away or there might be just a flood of money coming in that overwhelms that and and and things continue up but eventually it ends there's no such thing as a super cycle there's no such thing as up only things will have Cycles whether and and it probably won't be look maybe maybe maybe I'm cursing the market by saying this but for BTC and eth it probably or might not be as violent as it has been in the past but for everything else I do expect them to get like absolutely slaughtered 80 90% down like I do not expect those things to act any differently um especially things that have gone up a lot for absolutely no reason like if if you can't actually point to any fundamental reason I'm talking about anything at all for things

going up a lot it means they're literally just going up because profits are rotating out of things you can see it happening right now uh BTC went to almost 100K and now it's been like range bound between 90 and 100K why do you think that is well there two reasons one people are taking profits right and two people are taking those profits but they're not putting it back into BTC they're putting it right into the rest of the market because they're like well I can earn even more money now because BTC is done its run you know 100K is a psychological level I'm just going to cash out and go play with other things that's why eth will eventually get to alltime high at least one of the reasons why eth will get to the alltime high I believe it's going to happen in January

I don't know if it happens in December December's a weird month I think for markets it's generally a hot month but for eth it tends to like seasonality kind of kicks in mostly in January for eth so I I I do expect the all-time high probably in January at this point but um outside of that just generally you can see the money flowing out of BTC into everything else and it's doing it indiscriminately it's the whole Market's just going crazy right so as I said like this is this is the final stages of of the the cycle this is the the real kind of like bu Market that I've been talking about for a long time cuz I remember during the run that we had from October 2023 to March 2024 I said that retail wasn't here yet in any real way because it was it was a BTC driven run and then

it was a Crypton native driven rotation from BTC into other assets like memecoins for example or very popular Crypton native coins but if you look at what's happened over the last few weeks especially since the election the coins going up are not the ones that everyone on crypto Twitter is talking about it's the ones that the uh people outside of that bubble are talking about such as the YouTubers the Tik tokers like all these old kind of Dino coins as we call them they're the things going up the most because they're the things that retail investors generally buy for whatever reason and you can go on coin gecko today and look at these things right Iota algorand xrp hashgraph like these things are all things that like have really no fundamental value to them but retail for some reason loves these

things uh whatever the reason is maybe because they just buy what they hear about on Tik Tok and on uh on YouTube wherever else that's what I mean by a retail Le bull market and we're in that we'll be in that for the next few months I think uh but there's no way to know where the top is that's why I said to you guys you should have had a sale plan put in place a while ago but you can even set one up now and you need to be like DCA dcing out there's no point trying to time the top you'll never time the top like even the best Traders investors in the world will not time the exact top and the exact bottom on things they tend to I guess you know as you get more experience be able to to tell I

guess you be able to get as close as you can to the the top and close as you can to the bottom I've been able to to do it on the bottom side on the top it's kind of way more difficult but with the bottom I was able to to pick the bottom on eat this cycle which was which was pretty fun but I I would say that most of that was also luck because it could have gone lower but you know you get to this point in the markets where you're just like well I feel like these these these kind of things have been slaughtered enough I feel like enough pain has been felt by the market I'm going to kind of Buy in here and as I've explained before and I've shown it with charts you actually have have way longer to buy the bottom or near the bottom

than you do to sell at the top you have like I don't know 6 to 12 months to buy like the bottom SL crab range to sell the top you have like on on on even betc and E you have like maybe a month not even to to do that or sell near the top sort of thing to sell the actual top you have like a couple of days right so it's all about the the timelines here um but yeah anyway I've gone on a bit too long I didn't expect to go on that long about the markets there but obviously it's very relevant right now because the markets have gone absolutely crazy and I'm sure a lot of you guys are questioning things right now like when do I sell you know when when's the top going to be blah blah blah I think the

one piece of advice I can give here is don't worry about where the top is don't worry about when you should sell worry about what's best for your individual situation like when you should sell is obviously uh based on your individual situation don't look at a chart and say okay well I'm going to sell eth here I'm going to sell this asset here because at that price point the chart looks really stupid so that's what I'm going to S no no no that's that's not the right way to do it in my opinion the right way to do it is to assess own individual situation assess how much money you uh you can realistically make from things and how much money You' be happy with and then even maybe discount that because you're always going to go higher you're going to be like okay well if I make x amount

that' be really cool I can do this this and this so maybe like lower that and be more realistic about it and say okay well maybe I'll just make this much and start kind of dcing out a bit there and if and it's going to go higher you're never going to sell the top but you shouldn't buy back in after that either that's one of my bull market Pro tips don't try and Chase things right once you're once you've sold like if you sell 10% of of your stack and and you have that that those profits those feat profits lock that in don't just jump back into the market and think uh because it went up again and be like oh I got to get back in it's going back up no don't do that that's the quickest way to get wrecked that's how most people

lose money in Bull markets by chasing things by rotating through things I wouldn't do that again individual situation is the most important thing just pay attention to that uh and I think you'll be okay but anyway enough from the market there's a lot of other stuff to get through today which I'm going to jump into so first off we had the beacon Chain's fourth birthday on December 1st so those of you who are around back then know what a Monumental event it was to get the beacon chain live for ethereum it was a proof of stake uh for a pro stake a theum being live for the first time ever uh and it was a journey to get there that was for sure but it is four years old now uh as Justin Drake puts in his tweet here and the reason I'm highlighting this tweet

isn't just because of wanting to celebrate the beacon Chain's fourth birthday but also the fact that there was one part of Justin's tweet that I really kind of uh liked and it was basically this part towards the end where he says believe ethereum can get it all um so if you watch Justin Drake's bankless podcast that he did I think it I think it went live like yesterday you should go watch that there's this kind of narrative that I don't really like that is perpetuating out in crypto right now that ethereum is fighting like a three front War it's fighting Bitcoin on money it's fighting uh salana on on execution and it's fighting Celestia on uh data availability and and rollups as as a kind of like scaling mechanism there and I I think that's the wrong way to to think about it because I don't

think ethereum is is fighting these things necessarily ethereum has been trying to do its own thing since at least 2020 in terms of uh the road map that vitalic published back then the general road map and the rollup Centric road map so etherum is not exactly Waring with things and I also think that pitting something like Celestia against ethereum is like if I'm being honest because ethereum is like if you're going to use like some sports analogy to ethereum is like a top kind of in its field right a top player in its field and then Celestia is relatively new and I'm not trying to badmouth Celestia or anything like that but it's relatively new it still needs to win battles against its own competitors before it can challenge ethereum at anything it still needs to win battles against aan da and Avil and near da like these other da layers that

are competing with Celestia and I know that recently Celestia has kind of pivoted to being more of a full-blown layer one and I did call this a while ago I think I said this in the delway Discord Channel years ago that there's no way they're going to stay like just a DA layout or just a sovereign rollup layer they're going to actually become like a full layer one which they have at this point in time but if we're just looking at it through the lens of like da which is what it's known for it has to compete with these other things first and emerge as the winner there before it can even have a shot at ethereum in my mind at least and I also don't think it's worth comparing them uh because they're completely different beasts too in terms of execution again it's kind of

a weird thing because salana execution is not competing with ethereum L1 execution at least in my opinion it's competing with the l2s but it's also not competing with every L2 I would argue that things like Mega eth and rise and these kind of like Mega l2s that are trying to essentially just do one beefy L2 instead of like a super chain of l2s um those things are competing with salana so the the the I guess like the more modular kind of many l2s like app chain thing that I think is more competing with the original Cosmos Vision so but at the at the end of the day it's not even a competition because most of Cosmos is there's not really much traction there right and I think Perka do also has like a similar architect now but again there's not much traction there so I really don't agree

with this like three pronged kind of War thing I agree with one of those prongs and that's Bitcoin I do think that eth is competing with BTC to be the premier digital money digital store of value and I and I do think right now obviously it he's not winning that at all like I mean bitcoin's Market the the barometer for Success there is market cap honestly there's not not really anything else we can really point to in that in that sense um in terms of what the the I guess wider population understands so until market cap is bigger than Bitcoins you you can say that ethereum is not winning there but ethereum is definitely competing there and I don't think anything else is competing in that arena for money but there's other two prongs I just don't necessarily agree with but Justin Drake attacks these headon he

basically strawmans it and says okay well let's just say ethereum is competing with with all these things here's why I think ethereum can win across all of these and that's why he says in this tweet I believe ethereum can get it all because he believes ethereum can be everything um to to everyone basically and and so do I I believe ethereum can have it all I believe that as Justin says here the L1 improvements that will ship uh will will ship incrementally for years to come and ethereum L1 will win as like the strongest L1 I actually think it's already won that as the strongest L1 right now uh in terms of I guess what it's trying to be as an L1 because it's not trying to be a an L1 that specializes on for execution or does like Mega execution like something like salana L1 does for example right um but

I think it's already won what it's trying to be which is the the settlement layout and then on da it's got a lot of stuff to do with that availability obviously which I'm going to talk about in a sec with regards to blobs and increasing the scale there but it's competing there and in terms of money I mean honestly the money thing's a bit bit funny because there's not really like anything that you do to improve it as money or anything that we're going to do in the future we've already done like the two major things make ethereum proof of stake and integrate EIP 1559 maybe you could argue something like me burn and a possible issuance reduction or the endgame issuance curve that has been talked about a lot recently maybe you could say that those two things are final things to implement and then we've

got like a you know an aifi monetary policy for ethereum but those things are still open questions there and I don't think they're necessarily critical for eth to be a better money and a better story value than uh BTC there but you can read Justin's whole tweet I'll link it in the yoube description below but that was just some of my thoughts on it and definitely go listen to uh and or watch Justin's bankless podcast he goes through all of this in much greater detail than I do uh which is it's always a great listen listening to Justin there all right so as I said uh L1 scale something that we're working on as as I was talking about just before and something that's being kind of incrementally done over the next few years but there are different types of L1 scaling right like as I said ethereum

is not trying to scale L1 to be this exe Mega execution layer like Sal is right we we're basically saying well the l2s are going to do that right the l2s are going to do the execution part of things but at the same time L1 has execution on it too so what can we do to actually improve that for users at L1 because there's still plenty of users at L1 especially bigger players and also improve it for the l2s one of the things we can do without a hard Fork is increase the gas limit now I've talked about this before I'm not going to rehash the the whole gas limit thing here but uh what was interesting was that yesterday uh Dan crra here on on Twitter said that he thinks it's time to increase the gas limit and he says if you run a validator you you can

contribute to this every block acts as a vote on whether to increase it if more than 50% of the stake agrees to an increase the gas limit will increase and he says I just set my validators to vote for up to 60 million gas now I think that's too much I honestly don't think we should go to 60 million right now as you guys know I've increased mine to 40 million I think that's okay right now it's 30 million to 40 going to 40 million is a 33% increase but I think the way we think about the gas limit and the way we talk about the gas limit is a bit broken right now I would like to post something a bit different and that was something that was uh I read a comment I think someone replied to me with a comment I can't remember their

name right now but if if they're listening to the refuel please please chime in here maybe on in the YouTube comments um but essentially what what we could do is incrementally increase it at some kind of defined interval and then if something breaks we can revert it and what I mean by this in practice let's say every 6 months we increase the gas limit by like 5 to 10 million now if something breaks AKA we lose like a large cohort of solar stakers uh and and the rogg on the network go up because solar stakers can't give up anymore it's just too much load on them then we can just revert that chain that change and that change as I said doesn't require a hard Fork it's done at the client level it can be done at anytime and it can be done Network wide here so if there is an

issue we revert it and then we just do that every 6 months instead of this kind of I guess wishy-washy thing that we're doing today where essentially the validators and the node operators they have the power to increase the gas limit at any time they want but in reality even though they have that power they only exercise it when they're essentially kind of given the green light by core developers and researchers and you can see right now actually um data always put together a really nice uh uh kind of Dune analytics dashboard here which I in the YouTube description below which queries the network to see how much how much percentage of the network is actually increasing the gas limit above 30% it's at around 1.8% right now which isn't enough like obviously it needs to be 50% or greater here and most of that is due to

nethermind they tweeted out here saying that nethermind um has increased this uh their gas limit Target on around 1% of all main net validators as a signal towards the gas limit increase they didn't testify what they've kind of gone to but obviously it's higher than 30 million which is adding to this here but this query is cool because it means we can see in real time how much of the network is actually signaling this here but in saying that I I still think the way we do it is just just broken it's not it's not right it's not great it's not it's not conductive to I guess like a streamline process and and as I said I would rather see something like a social commitment to every six months we just raise the gas limit by 5 10 million and then we see if it breaks anything or we

do it as a percentage raise because obviously 10 million on 30 uh 30 million is different to 10 million on 40 million so it could just be a percentage but I'm using absolute numbers just to get my point across here I think that's a better way of doing it I don't know how we would actually get that like through I guess so to speak or how we would actually kind of uh make that happen it maybe needs to be done at the client level where the clients basically set this up and make it easy people to change this I mean it is already pretty easy to do it but maybe it needs to be easier I don't know but essentially I think that that is the better way to do it just set that kind of time limit thing like every 6 months raise it by

some percentage and if something breaks we can just revert it back and and it's really easy to revert it back it's it's really just the the hardest thing is just a coordination thing and getting the message out there but the message can be propagated quite quickly especially because the big note operators especially will be noticing this pretty pretty quickly if something is wrong so yeah that's my general take on that there but you can go check out that dashboard as I said I'll link it in the YouTube description below for you to do so all right last thing I want to talk about when it comes to L1 scaling now I mentioned execution before so M here from nethermind put out a great little tweet here quote tweeting Dan crat about the gas limit but essentially there is these kind of three paths you can take when scaling L1 you can take

the left path which is not scaling L1 at all you can take the right path which is hyperscaling L1 by sacrificing security security and decentralization or you can take the middle path which is scaling L1 through software and protocol improvements hyperscaling with l2s obviously that is the path that ethereum is taking right now that is the path that we've been on for quite a while now that is the generally agreed upon path within ethereum uh altogether is just like basically don't sacrifice what we have which is security and decentralization don't not scale L1 but scale it in a way through novel software uh and protocol improvements and and also like following Hardware improvements over time in order to uh scale up the L1 without sacrificing the properties that we like and then hypers

scale with l2s so I thought that was just a really great way of describing the three different PS that you have here are people will disagree with this people will think that there's different pods and there's different kind of properties to each of these pods but the way I see it is that those are the three highlevel pods not scaling L1 at all is essentially what Bitcoin chose to do or I guess like you could say barely scaling L1 at all because they technically scaled it a little bit with things like sewit but yeah I mean it's barely anything right um but then hyperscaling l1s by sacrificing security and decentralization is something of the the path that salana took for example um but then the path in the middle is the one that we want to take and that is I mean fortunately un fortunately

depending on how you look at it that is the long-term path it is not something that's happening overnight it's something that's happening over the long term and people getting patient about this too I'm sure I'm sure over the last few months you've seen a lot of people talk about accelerating the L1 scaling uh I guess road map I'm all for accelerating it but at the same time I think that at this point we're not so much accelerating it as we are just making sure that we catch up to where we should be because L1 hasn't really been scaled too much in the last kind of two to three years especially when it comes to the gas limit so I think that's why there's been a lot of talk about raising the gas limit because it's like well it hasn't been changed in 3 years Hardware's obviously improved in that

time I know that bandwidth bandwidth is a separate discussion here and that's exactly why um I I said that we should increase it incrementally and then if we break anything we can revert it but yeah I I kind of vibe with that too so essentially let's scale L1 let's make sure we keep up with what we're supposed to be doing with scaling it as uh over time based on like Hardware improvements but also realize that Hardware can only get you so far you have to scale through software and protocol improvements which is exactly what we're doing but that's more of a longer term thing and it's not going to happen overnight there all right moving on to blobs so I think I've discussed this a couple of times on the refu in November but essentially ethereum blobs were at Target every day in nove oh sorry almost

every day in November and as you can see from this chart we had a couple of days where they weren't at Target but they were basically there anyway and this generated millions of dollars of fees for ethereum L1 obviously the blobs aren't free when they're at Target or or um above it here because it goes into price Discovery uh and also on top of this we had an announcement during the week that we're going to be increasing the blobs from 36 so Target of three max of six to a Target so to a target of six and a Max of nine in Petra this is pending further testing but if everything goes well with the testing that that increase is locked in for Petra now which is obviously really great to see and that is a double right it's going from three a target of three

to Target of six Max of nine and a Max of six here which is going to give a much needed boost to rollups and much needed boost to uh ethereum da consumers because of the fact that we are at Target and we've been at Target for a while L2 fees are slowly creeping back up I know sometimes during spikes people are paying up to like 3040 cents on base that's during the spikes but the average fee has crept up from like 1 cent to I think 3 to 4 cents or something and that is a direct result of I guess more base usage as well on the execution side of things but also the fact that blobs have have reached capacity and they're saturated and those blob costs get passed onto users so we definitely need this uh I guess 6 to9 increase which is

pretty much locked in for pectra at this stage uh and related to this was another tweet that nixo put out which essentially uh basically outlined how we went from the I guess like uh uh start of people wanting a blob increase to what where we got to rough consensus so essentially what happens in ethereum governance is that you put forward an idea you I guess like get cons rough consensus from different parts of the community you do a lot of research and development on it you do a lot of testing around it and then eventually you can get uh the rough consensus to put this into the network and nixo outlines the timeline here it's a great TW TW I'll link it in the YouTube description below she also provides um sources here to each of these points but essentially uh this happened over the

period of of a few months and there was that research that I think I um I went over on the last episode from eth Panda Ops that basically showed that we can safely increase it to 69 without losing most of the network without affecting most NE affecting most of the network negatively so this is just outlining that timeline there so that's a really great tweet from NYX I'll link it in the YouTube description below for you to check out all right moving on so this is an EIP that I spoke about quite a while ago I think it was originally proposed in 2013 and I remember talking about it uh 2013 2023 I remember talking about it back then this is EIP 7503 which is zero knowledge wormholes or enabling uh privacy on ethereum L1

for eth transfers so private eth transfers now I think when I first spoke about this the main issue with this was essentially the fact that if there was a bug in implementation of this EIP it could result in an unlimited minting of eth which obviously would be very bad so like that's like one of the worst case scenarios for for bugs in the ethereum protocol here but the reason I'm bringing it up again today is because Tim boo brought it up again the other day where he was replying to to I think someone about privacy related things but the cool thing about this EIP and why I would love to see this integrated into the network is because yes there is that massive kind of I guess risk of there being that that bug there because the way it works is essentially you can do

private eth transfers on layer one cuz you send eth to some kind of I don't know if it would be like a contract or something like that or you send e somewhere it would essentially burn that eth and then mint you that new eth on a sorry Mint new eth and then send it to a new address and there was no way to link the two addresses together that's the basic premise of it and this would only be for eth this wouldn't be for any other kind of um coins like stable coins or tokens on ethereum this would just be for pure vanilla e not even for wrapped e or any arc2 tokens it would just be for eth now the reason why this is cool is because not only can you do private eth transfers but you can build stuff on top of this so you can do these things

where essentially you can do a private eth transfer but then you can make it so that it it sends that eth after to a Smart contract which then does a bunch of complex stuff and essentially you have like private smart contract interactions because of that there are some other things you can do but that's essentially the the high level thing there and also this can be replicated on the evm layer tws as well if they wanted to implement this so there is like mostly positives with this but as I said the the big negative is the fact that there could be a bug and it would result in lots of eth being printed obviously the price of eth would crash the bug would be fixed like don't get me wrong it's not like we would keep the bug in the network it would be messy as hell

but the bug would be fixed we basically reverse the bug there wouldn't be unlimited eth anymore and it would probably get fixed pretty quickly but that bug happening is I guess in terms of worst case scenarios for ethereum that is like the the worst case case I think because not only is it like a bug to Mint unlimited eth which destroys its monetary properties and destroys kind of a lot of its moneyness and store value kind of story but also it would require a either roll back of the chain or in a regular State transition which at this point in ethereum's life would be it wouldn't kill ethereum but it would be so detrimental to it and it would be something that get got constantly brought up as a piece of fud that we couldn't really refute because it

happened uh that it would be very detrimental to ethereum's story so so as much as I really like this EIP if there's no way for us to guarantee that there wouldn't be an unlimited mint bug in it then I would be very against putting this into the network because that bug even if there's a only like a 0.001% chance of that bug happening I still think that's too high and there are ways to maybe not guarantee no bugs but like get as close as you can to guaranteeing no bugs through things like formal verification the actual EIP could be potentially just a few lines of code so it's much easier to reason about something like the wrapped eth contract um I don't know if it's that simple maybe not because of the fact that it's using a bunch of complex things like zero knowledge in order to uh in order

to um I guess enable this but yeah unfortunately the risk of of of a bug is there and that risk is what's turning people off of this and that's why this EIP has kind of Fallen uh into like the stagnant bucket of eips where essentially no one's really focusing on this right now and there are honestly other ways to do privacy and potentially better ways without these risks so we'll see what happens there but it would be cool if we had this cuz in my mind it's the Holy Grail of privacy for eth for eth transfers and also for more complex things that could potentially be built on top all right we have another update about statelessness so this is The Verge part of the ethereum road map as you guys know so the TDR of this is that uh there is going to be a new AIP for

binary tree based version of statelessness coming soon as you guys know they've been working on the veral design and the binary tree design is just a different design so there's vericle there's um mpts or Merle trees uh which is the F the one that we've got currently live on the network then there's veral trees which is one other the designs and then there's going going to potentially be binary trees and then there's one more than that which is based on Starks I believe there's a vitalic tweet here which I'll link in the YouTube description below that talks about what binary trees are and how they're better potentially better than veral but then how there is something beyond that which is um using using Starks uh as well so essentially what I why I wanted to highlight this was because it shows to me that the team

working on the verge part of the RO is not married to veral trees they will change things if they need to uh to something better and it seems like they're going to be doing that with this new AIP for binary tree based version of statelessness so you can read the full update I'll link in the YouTube description below but I just wanted to hide that there for you guys all right last up I just wanted to talk about this new blog post that Kane posted titled infinex V2 now you might be wondering V2 you know V1 isn't even live yet or I guess like V there wasn't much uh that happened with V1 and you'll be right I mean Kane makes a joke about this in this Meme here from The Simpsons when lard Leonard nemoy says my job here is done and Barney says you didn't do

anything and then he says didn't I and just disappears right well yeah I mean I love infinex I'm super bullish on it but V1 was very limited it really just existed to uh mostly do the uh crate farming um the uh Bull Run game the the trading C game that they did or not I mean it's not really a trading card game but you know what I'm talking about and obviously the the patron sale the um the sale of their nft there but this post talks about what infinex V2 is and how they basically rearchitecturing to be unchain binance this is the list

here so they want to support for the top they want to support the top 2,000 crypto Assets Now this doesn't just include ethereum minut it's tokens and other networks in their tokens this includes things like Litecoin and xrp and cardano like pretty much everything in the top 2,000 crypto assets and they want to support all the usual things you see on a centralized exchange like spot trading margin trading per trading options trading they also want to support nft nft trading staking and yield farming airdrops borrowing lendering borrowing and lending and a Launchpad feature too so they're trying to do it all they really are trying to be onchain binance and honestly if I was to bet on any team to do this it would would be the infinex team you guys know I'm super bullish on this I bought a bunch of the patron nfts as part of

their sale and I locked them for the full lock so I I I I bought them and locked them for the full lock there they still just going to sit in my account like I have no I guess like um plans to uh sell that or cat that that out anytime soon I'm I'm really betting on this team to be able to execute this and I really think they can I've spoken to to a bunch of them uh over the the course of the last few months I spoken to Kane a bunch like he's really driven to deliver this thing and what makes me most bullish is that he's already delivered successful products in the past he's he's a very you know Crypt native DJ he knows what what's up and he also knows how to build a product not just from a product perspective uh in

crypto but also from a community perspective he knows that if you want to get a good Community you need to get the community along with along the ride with you which is exactly why he did a public sale for the nfts which I mean it's going to get turned into tokens like right between the lines guys they're eventually going to get turned into a normal token like for for governance and whatnot um but essentially he knows that uh that you needed to get people involved from day one and that's why everyone was able to buy here even before the regulatory regime changed because if he was doing the sale now I think it'd be very different where he would still let everyone in but it probably wouldn't be nft probably just sell a token right uh but there was that nft thing done for regulatory reasons I

suspect but essentially uh he he knows how to build a product in crypto from multiple different vectors here so anyway you can go give this a read I don't want to Shi my bags too much here but I actually feel fine Shilling this considering that you all had the opportunity to get into this um uh this sale the same opportunity that I did like there's no Insider access here there was no angel investment that I made here it was literally made at the same valuation as the VCS and everyone had access to this everyone had access to this sale uh and I talked about this before the sale was live and I told you guys to get involved with this so that's why I'm kind of shielding this a bit harder because as you guys know I will only shield things where I feel like it

was fair access that's why I only shield eth on here and I only I only am bullish on eth like on here um and and and infinex now as well there are other things I think I could Shield but uh I would say that majority of my portfolio as it exists today outside of eth is from Angel Investments right so I'm not going to be on here and be like hey guys go buy my angel Investments go buy my bags no I'm not going to do that I I've never been about that you guys know that's not me but when it comes to things like infinex where everyone had that fair access to it I feel comfortable Shilling it that's that's kind of my my take on things maybe you have a different view on this but yeah I and also I feel comfortable Shilling it

because I'm I actually really believe in the product I didn't just invest in it because I wanted to make some money I invested in it because I really believe that they can achieve their Vision I I I I truly truly believe that it's going to take a while it's not going to happen overnight it's probably going to take a few years but I do think they can get there and I think the opportunity is also massive but anyway on that note I think that's going to be it for today's episode so thank everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to newsletter join the Discord Channel and I'll catch you all next time thanks everyone