Is SBF Killing DeFi?? | Aptos Launch Down Bad | Ethereum Censorship Heats Up | BIG Reddit Onboarding

Transcript

foreign happy third Friday of October David what time is it Ryan it's the Friday Bank this weekly roll up where we cover the entire Weekly News in crypto which is always an ambitious never yet we persevere nonetheless into the frontier with coffee with your coffee with your Friday morning coffee David before the show you told me you had too much coffee how much is too much for you man three cups three cups so is that what you had yeah yeah and that's like before 1 p.m yes that's three cups before 11 A.M how do you know it's too much uh I yeah you just kind of you just know it you just feel a little bit jittery yeah a little bit uh manic you know you know people I'm on my seventh cup dude that

is insane that is insane I would die I think I would be I would have to like sit down on the ground and just wait for that to pass sorry seventh so far I shouldn't limit myself the day is still young yeah I might have a problem anyway happy weekly roll up just enjoy one cup of coffee if you will we're not encouraging more than that it just won with your weekly roll up David we get a lot of hot topics this week number one SPF that is Sam bankman freed the billionaire super billionaire founder of FTX he's got some ideas on how to regulate D5 David I don't love a lot of these ideas how about you no no I don't I don't remember seeing him asking the rest of defy about thoughts about things he's kind of going rogue on this one following SBF Aptos the newest layer one

on the block from X meta employees launched but also flopped we'll talk about that Ryan what are we coming in third uh ethereum censorship it's been a hot button topic we did that episode with Justin Drake but it is increasingly a hot button topic particularly around relayers we're going to talk about what relayers are flash Bots all of these things and the big question I think for the ethereum community is are we in a critical state or is this a nothing Burger we have to sound the alarm or not so we'll get into all of these things as always make sure you like And subscribe wherever you are listening to wherever you are watching that gets us up to the top of the charts David before we get in we have a message from our friends and

sponsors at push push protocol David this is an app that I know love and I use the way you activate this app is you just enter you log in with your wallet address and what you can do is subscribe to alerts very handy alerts I don't know how many times I have woken up in the middle of the night being like Oh my God am I about to get liquidated my maker like how many times Ryan like well not so much this side zero times for you but I will tell you no original cyclist for the first cycle yeah 2018 2019 oh things are getting pretty tense um and then also my ens names for example like when do they renew you need to know that there's nothing on chain

that will let you know that except for push you can opt into notifications about ens about your collateral requirements about whether you are in the money or out of the money on a uniswap liquidity pool there's literally hundreds of different alerts you can sign up for David what do you like about this app well as the metaverse with the thing we're building that ethereum is going to be this like scaffolding skeleton of builds out we need push notifications to go and because that's what do you do when you wake up in the morning Ryan you look at yourself yeah right you get your push notifications uh so the metaverse is going to need something like push to notify people of going on in the metaverse and so you can go and check them out at push.org if you are interested in receiving push notifications or pushing

pushing push notifications to your users David I got one in there for uh if like me when eth is under 895 dollars because that way I can outbid you and get in lower if it happens this Market cycle yeah well I don't think there's a what you have to sign in for a defy app to get notified of the defy app that wants to notify you no they actually no it's actually off-chain stuff too oh they have like price alerts in here too cool on chain or off chain you can even get uh alerted with your favorite um crypto Publications like bankless France in there yeah pretty cool um all right tell us about Market speaking of price what's Bitcoin doing this week uh nothing not really anything start of the week at 19 150-ish dollars ending the week at one

thousand nineteen thousand one hundred fiftiest dollar so flat super flat uh I'll take it yeah better flat than down yeah how about eth uh eth also Flat 12 800 or 12 080 uh currently and that's where it started this week is this another crab market is this like the summertime yeah so so when we recorded the last weekly roll up it was like when we had like Nuke down to like twelve hundred dollars and then as soon as we got done recording the weekly roll up we bounced right back up to thirteen hundred dollars correlation the Thirteen hundred dollar like number for ether and like 1900 number for Bitcoin is like super just amazing I guess yeah sticky sticky right now until something new happens yeah what is that new thing gonna be it's got to be macro it can't be encrypted yes there's not much oh

it's got no we're post merge what's the next exciting news in crypto The Happening there's a there's that's the thing there's like a bunch of exciting things in crypto so no one can like have no one can focus on one meme because there's like three different things and they're all like smaller than the merge a lot of smaller building going on no no like main chain uh major events here how about the uh flat also flat surprise and that's actually not bad for eth in in the bear Market though I mean you'd expect during the bear Market uh much more loss on the ratio we're not seeing it in history yes if you if you look back to history yeah this is history look at this yeah yeah that this that ratio looks okay is it the problem is the ratio looks so good over like a almost coming up on three

year time Horizon now so in order for that to like continue it looking good like it's just gonna take 1.5 more years for that to like keep on going up anyways long-term Focus long-term Focus you know what I saw this week David what you have hashtag Bitcoin in your Twitter biograph right now I saw that there's a story behind that do you have this story is this a story that is disposable no it's not Bitcoin shells paid David that's what it means Bitcoin chills yeah is that what happened I think this is a private bet among friends that he made that's my guess and maybe he lost okay there are worse things to lose uh it's pretty funny though David David the Bitcoin bull um

Global crypto market cap what are we looking at we under a trillion uh under a trillion nine five six billion 956 billion okay that's all is that also flat in the week yes it was a flat week summary flat week neither up nor down um housing mortgage rates are going up though this is a tweet from gwenevere breaking 30-year fixed rate mortgages hit 7.15 also breaking the housing market it feels that way 7.15 I've never seen rates this high am I probably lifetime my adult lifetime so what does this mean for me I'm a crypto person who bought a house during the bull market you own a

house good jobs okay thank you can I ask you uh did you buy that house or do you have is this a personal question do you buy that house or do you have a mortgage I have a mortgage there's a mortgage yes I have a mortgage what rate did you lock into that mortgage two point something hell yeah David all right this is my take on that tweet all right um okay actually I don't have that tweet up but here's what I said uh locking in a three percent fixed rate mortgage or under is the new I bought Bitcoin under 300 okay but I also bought the top of the housing market though so like I know which one am I am I happy or sad I don't know well right now mortgages are going up but house prices aren't dropping I don't know if you've looked at the Zilla

rates for your for your house no I bought it I bet it's probably the same or at the level that you bought it in terms of like market value so I'm happy you're happy and the best thing about that is uh not almost who cares but like you locked in a 2.1 percent uh two percent like 2.7 2.9 2.7 2.9 okay you're printing money man like congratulations all right we're inflating at like seven to this this may be the best financial decision you've ever made that's probably true it's not even including buying ether at 80 no we can't include that other than ether this is David's best

so far we don't know this um but okay but you locked in a interest rate on a 30-year fixed rate mortgage at 2.7 2.79 and money like inflation is eight percent so what's your Delta man maybe five percent per year oh good friend thank you Uncle Tim thank you that's more like the dollar you actually like in high inflationary environments you actually want to have a lot of fixed rate uh debt because um it means you don't have to pay it very nice to be a debtor in these in these times for mortgages but let me tell you who is screwed David uh everyone who Who is younger than me gen Z totally I don't get do you know how like um the meme of which is true like Millennials getting screwed like 2008

financial crisis and then you can't afford a house and how many Millennials are like not able to like afford this this is um look at this Value Beauty and charm this is a four bedroom two bathroom house somewhere in The Burbs uh 19 what year 1950 something 54. yeah rent is 87 a month uh yeah but that also has a ton of like loss and value of the dollar like how much you can get it you could get a cheeseburger for like 50 cents back then this is this is also true there's inflation baked in but it's also true that um home prices as an asset like homes themselves have risen far faster than inflation like something like 3x 4X and so

um I thought Millennials were screwed but like gen Z Now how are you supposed to afford a house when house prices are so expensive and like your your interest rates are like seven eight percent what's like the monthly payment look like on that yeah well isn't every single generation further away from the Boomers just more collectively more screwed I it's seeming that way yeah I think that's kind of how it works like the further you are away from the Boomers the harder it is this is how it's seeming so far um absolutely brutal um but you know the rates keep increasing this is a tweet from our friend Michael Saylor If you flew an aircraft carrier like this you would a stall B rip the Wings off or C Crash and Burn and he is showing a chart of the U.S one year government bond

yield this is bonds this is the yield of bonds this is kind of showing you what the the FED is doing Central Bank and for those of you that can't see listening the podcast we see in 2018 kind of a brief bump up and then massive volatility Spike all the way downward to zero coveted Spike and then this this crazy Ascent uh David you've flown planes before it's possible to take off like this that happens yeah you need a massive engine to be able to do that you need a relationship yeah you need to be in like a uh like a yeah a jet you need to be in a very fast lean jet okay so uh validate this If you flew an aircraft like this would you rip the Wings off David uh you install is what you're doing what you would do you would run out of energy

yeah this is crazy I feel like it's um the next experiment of of the central banks is like how much volatility can the bond market take before the wings gets currently currently taking more than Bitcoin remember that from last week yeah yeah true true uh meanwhile tell us about ultrasound money David it's super ultra sound Ryan I'm so glad you asked uh and so we say uh last week was the first week that we had a ton of burn and this week we also have a ton of burn I think last week we're at 5 000 ether issued since merge yes white right now we're at three thousand going down 100 going down yeah that's what we like to see uh and so the current supply of eth has like

peaked out at 120 million 534 000 was what it was about two weeks ago we are now down to 524 000. if we continue on this trajectory fine in like maybe three four days we will actually be below The Ether Supply where we were when we merged and ether will become deflationary since the merge that is awesome last year or last week we talked about how this was because of this like uh new toponzi token Zen crypto well actually in the last three days it's been uniswap V3 open C and uniswap V2 as the three largest burners of eth collectively burning basically 3 000 ether above Zen crypto still burning

900 ether and then eth transfer is burning 800 ether tether transfers bringing 630 ether so this is this is good real sustainable Bill uh burn not from some Posse token uh and we are still going down so uh and just to recap at the peak of issuance when the supply of ether was the highest there was something like 0.22 net inflation per year we are all the way down to point zero three percent net inflation per year and if this burn continues man we are going to be deflationary since the merge wow what I like about the burn leaderboard too is like it's all of these use cases of ether's money a lot of the unit swap trading pairs are

actually eth transfers number three burning a lot of eating using eat this money uh I guess eth is money after all maybe even maybe even I'm not gonna say it this will never not be my favorite website I can't imagine a better like what's better than this it's great name me a better website on the internet David oh if you if we wait one more block we're gonna watch it go down below 3700. wait for it you really want to do it wait for it every 20 seconds 21 seconds uh new block every six seconds oh I did it only went down a little bit anticlimactic we'll edit this part out uh what's happening with Euler Euler

Euler tvl hitting a new all-time high at almost 300 million dollars Oiler a new money market on the scene like the likes of compound Ave Rari uh but a little bit more governance minimize a little bit more algorithmic we recently did a show with them in Alpha leak uh coincidence that is hitting a new all-time high of TV out I don't know but if you want to learn all about Euler I did an alpha Leak with Michael Bentley to learn all about it uh disclaimer Ryan and I are Angel Investors in Euler we are and uh that token is now on the market though uh yeah yeah uh angel investor a long time ago that was one of the first ones we did I took that project a while to come out um token terminal what are they doing okay actually this is um music nfts and I

know you've got a take on music and if he's but I'm feeling some bullish vibes from you not only David but other members of the bankless team keep talking about music nfts right is it showing up in the numbers yet it is showing up in the numbers yet a monthly cumulative side-by-side fees is what we're looking at basically to date three million dollars has been earned by artists paid for by fans so three million dollars has been transferred from fans to artists in my mind all I'm seeing is three million dollars of compensation for creating art and that's what we like to see three million dollars not that much but you have to remember it actually doesn't take a lot of value transfer to really move the needle versus what something like apple music or Spotify does like Spotify and

apple music for like value transfer from fans to artists is like first gear where like music nfts where if you buy one single music nft that that accounts for like like a hundred thousand listens is one single music nft sale and so that's like you know third or fourth gear in terms of efficiency of what you get if you purchase a music nft so I I know we're on the bank let's roll up we're used to numbers like hundreds of millions billions blah blah blah three million dollars is small but again it's such it's such a big order of improvement from what previous web 2 value transfer platforms provide and this is primarily online the sound protocol too right sound.xyz which is where and David was

talking about the the the art is actually music so these are actually not jpegs these are MP3s also they are selling jpegs are the album covers and then like but but mainly but it's mainly it's the sound the music yeah it's all about the sound uh super cool you're starting to sound you know okay so um do you think let me ask you this do you remember uh jpegs in 2020 nfts 2020 that hadn't taken off yet right it was late 2020 with some people in the podcast tell us it was going to be huge absolutely like really big thing um do you think music nfts are where jpegs were in Winter of 2020. my take is that music nfts are not for crypto

people they are for music people and music people are normies uh I don't like jpegs definitely was a product that like we all like to speculate on just because there's like digital Collectibles right very very adjacent to crypto money is crypto like digital Collectibles I think music nfts are going to be more for artists and their fans regardless of whether they are crypto people or not and so I think that that is an invalid question an invalid question so in other words you think it'll just grow differently so it'll grow it certainly would be more mainstream we saw kind of um jpeg sort of start to take shape firstly they were crypto collectors of jpegs and then it bled into mainstream and you're saying we sort of skipped

that step I think what you're saying is we kind of skip that step it won't be as many crypto collectors it'll just start with mainstream instead right because some unknown artists can come in and start making like an nft collectible thing but for to sell a music nft you have to be a musician and you need to make good music like no one's going to collect like bad music nfts probably hopefully I'm actually actually I take that back I could probably see some crypto people figuring that out but I do think it's just like it's more mainstream than what we've seen previously also kind of a like nfts kind of a regulatory proof industry there's always ways yeah it's always great for regulations no don't let me speak too soon and yet this is not like um as scary as a you know non-state money

asset that seems to be for Regulators I agree cool we got a lot more coming up uh SPF wants to regulate D5 we're going to talk about that what his idea of Regulation looks like also Aptos was a total flop that's what it sounded like the newest layer one chain on the Block will tell you about that and ethereum censorship is this a problem or a massive nothing Burger we get into that as well we'll be right back but before we do we want to thank the sponsors that made this episode possible arbitrim1 is pioneering the world of secure ethereum scalability and is continuing to accelerate the web 3 landscape hundreds of projects have already deployed on arbitrum 1 producing flourishing defy and nft ecosystems with a recent addition of arbitrum Nova gaming and

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experience a decentralized web seamlessly without all the Clutter you can download the browser at brave.com banklist and click the wall icon to get started Ryan is it time to sound the fire alarm about another regulatory thing coming down the pipeline that's going to kill defy the alliance dial the team out of the alliance style says the dccpa greatly threatens D5 Innovation the proposed bill says three things according to to this tweet the summary tweet gives the cftc new powers to regulate spot markets also forces human intermediation we don't like that word intermediation and also forces projects to sacrifice decentralization it favors centralizingcumbents and kills startups Alliance opposes the dccpa Ryan uh you were paying attention to this while I

was gone at Devcon how big of a deal is this yeah I was paying attention to this and I I guess I in my mind there are three things to know about the dccpa I have a hard time saying that this new bit of legislation actually stands for the digital Commodities consumer protection act okay this is coming out of the uh AG the the agriculture group uh Committee in in the Senate um three things I think you should know number one it feels like the U.S really wants to do something with crypto from a regulatory perspective and what I mean is particularly legislators and also I think crypto kind of wants them to we've been asking for more clarity there's so much ambiguity we

want our legislators to do something number two I've been told this bill actually has a real chance there's so many bills about crypto like hypothetically talked about and batted around I've been told David that this bill could actually pass like it actually might work and it could actually pass during kind of the the lame duck session that we have in in kind of the winter time period the last thing though I will say and this is important you ask the question of should we sound the fire alarm I think the answer is not yet I know Alliance Dallas is kind of doing that in this tweet but um I think the answer is not quite yet and the reason is the newest draft of the bill isn't yet public all right and so there's a lot of people are fighting

behind the scenes including people blockchain Association people we've had in the podcast people that are D5 friendly these are these are lobbyists these are Educators and our legislative they're they're fighting to actually make this bill better make it good and the fight's not over yet and so what this tweet is responding to is an early leaked draft version of the bill it was like a leaked draft version so not the actual bill not the actual bill it was a version of the bill from like three weeks ago that's what I've been told so and it is true it has a whole bunch of garbage in it um particularly garbage around D5 and the the big concern about this earlier draft I mean it has good

stuff like it says Ethan Bitcoin or not Securities they're Commodities I mean that's good we would also something like that that's the clarity we want thumbs up but it has some bad stuff because mainly Defy is is not even considered or worse in some cases it's treated the same as C5 this is what the alliance is saying they're saying forces human intermediation they're not even considering the possibility that defies is code based and peer-to-peer so that is bad and that's why some critics uh in these earlier drafts have said look if something like this passes uh bye bye defy in the U.S or maybe like bye bye Us's role in D5 you're going to eliminate yourself from the the crypto market so in what mechanism does it just

like how does that can you elaborate on that I haven't read all of the details of this particular draft but it seems to do things like um make all D5 protocols in the US uh register does it just like operate under the assumption that decentralization is actually like impossible and therefore there's always somebody to register somewhere the high level is it seems to operate under the assumption that all D5 protocols can be regulated and treated the same way as an FTX or a coinbase so it's just ignoring that don't register with each state like go like just the whole same process and apparatus that applies to C5 and Banks well let's just take that and of course it can apply to some code in a D5 protocol and the creators of this code and that just

doesn't work and that's inherently I mean it breaks the system destroys the credible neutrality of the system so I guess my take is and Jake travinsky said this uh commenting even after this this tweet that you originally read was posted there's been some discussion today as to how the bill this new bill we're talking about effects D5 here's what I said after the Senate egg hearing on the bill last month I'm hopeful that it can be amended to treat D5 fairly but we'll have to wait and see what the next draft says so I guess my take while you're out David my take is um following kind of Jake's lead here right like he's working they're working collectively behind the scenes there may come a time when it's time to just throw up the bat signal and send out the fire

alarms and the bankless community needs to react to this and all of like crypto needs to react to this to either kill it or support it but we don't know enough yet so I'm saving that ammo until we know a little bit more um I feel like that's the right approach here that said David there's another story uh in in the midst of this you want to lead into that this is not our first rodeo with like un undesirable regulation proposed regulation in Congress like the difference here is SBF Sam bankman freed from FTX is like leading this thing and has been apparently he's been in a DC almost living in DC working with Regulators to get this bill through and that's kind of

the big news here that I've gathered from crypto Twitter and around is that SPF has like just decided to like go on his own and like lead this bill and uh it's the incentives here the seem to point in that all of D5 kids like semi-regulatable therefore we might as well do it on like C5 rails and wow that's really convenient for FDX and SBF that's kind of been my take here is that is that accurate uh there I think some of that criticism might be true so I guess I would say is in the process of this bill's creation it's been well known that the SPF has been heavily active he's not the only one pushing for this bill but he's been an active participant along with it's the only one right no no there are a lot of defy Advocates that are involved in this

build uh you know interesting crypto lobbyists and such like you know so some of the people that we would uh that you and I and probably the bankless community should actually like trust to uphold uh defy rights they've been also active in this build pushing against it although I will say again with it like uh to to craft it in in kind of an image of what it should be but I will say SPF has had um some some pretty big influence as well so he's made massive amounts of political uh contributions all of these contributions are are public numbering in the millions of dollars uh and also as you said he's been active like he's been there he's kind of um I don't know maybe the adult in the room right the person who can kind of bridge fit fintech and that

world in the banking world with this new world world of of crypto and he's he's got some influence and and so I don't know it's hard to know uh some people are saying like SPF is intentionally trying to sabotage defy right it's like to me you have to kind of wait and see like I mean these could be rumors we don't actually know but what SPF did publish um yesterday at the time of recording was as promised he says this is a tweet my current thoughts on crypto regulation and he writes a post um to his credit open transparent about his thoughts on a possible digit ass digital asset industry standards right and he talks about there's a heading here called sanctions allowless and

block lists there's a section about hacks and accountability there's a section about asset listing what's the security what it's not tokenized equities there's a section about consumer protections generally the things legislators care about and Regulators care about there's also a section here about D5 okay so I read this thing yesterday David and there are some things that make sense here and of course the the straw man argument for like you know the people might might make to you know to uh those in the D5 communities oh you're in D5 you don't want any regulation at all right no that's not true we actually really want Clarity we really want regulation but do you know what's worse than no regulation bad regulation yes bad regulation if we

end up with bad regulation I mean these laws get on the book they could set the U.S crypto industry back by like years maybe Generations maybe we'll never recover right and so I went through this here's my response David Sam this is this was spicy this was spicy with respect utmost respect for everything you've done uh in crypto this absolutely sucks I said you're saying E5 should be of fact you're saying on-chain freezes should be normal you're saying D5 front ends need to register as a broker dealer no this is not reasonable this would eliminate the us from the crypto race and here's Sims advocating for all those things yes from his like if you read this and we'll include a link in the show notes

um there's there's this section on ofac um he says this then both centralized and decentralized applications can query in real time the list of sanctioned addresses to avoid transferring funds to or accepting funds from those addresses he's saying basically if you're a uniswap or defy and before you let an address do something with your protocol you have to query the ofax sanctions list is this okay so he he's advocating for application layer censorships application layer of fact sanctions correct right okay now he's he's saying and he even says this he's not advocating for validator level censorship right right not protocol layer which is something we're about to talk to in a second but uniswap right having to basically oh fact check you or

not that is something he's advocating for um what else is there here just to back some of these statements up um talking about on-chain uh freezes if there's if there's kind of like normalizing the idea of being able to to freeze assets on chain I don't possibly the implication is writing that into the into the code obviously so this would apply to a usdc but into other assets as well maybe validators have this obligation as well and this one really triggered me if you host a website that makes it easy for us retail to connect to and trade on a DEX you would likely have to register it as something like a broker dealer yo what if you host an interface for you to swap you got to be a broker dealer

you have to go apply for a license okay so going and like show me the incentive I'll show you the outcome uh yeah FTX big competitive competitor out there is the aggregate defy landscape and so Sam the guy who's been donating 39 million dollars to political organizations in the Biden campaign is now saying hey dexes and D5 should have to register to become a broker dealer that's what regulatory Arbitrage is that's legalized corruption that's what that's the whole thing we're trying to not do in in crypto all right so this is obviously my worry and I think many of the crypto communities worry Sam in this threatened to his credit SBF was engaging back and

forth public engagement people were calling him on this myself included others uh and he was engaging back and forth and his point was hey if you don't do this the de facto like uh is worse and I'm at least working in this DC to pass something that is better than nothing better than what we have today and is it no this is terrible now yeah to be clear I don't want to make a hot take I don't want to mix this up uh his personal thoughts on regulation I don't want to mix that up with the the bill itself okay these ideas are not necessarily in the bill but this gives you a sense for

where his head is and when I read this I was just like oh we are not here for the same reasons are we right you do this David that's always been our frustration with Sam but like yeah but you do this and like what's the freaking point you remove all of the credible neutrality of like us crypto and what do you have you have nothing and it's got to be negative EV for negative expected value for FTX because if you like Nuke the cool things that make crypto what they are where does ftx's business come from it comes from crypto over the long run I think that's true I don't know if he thinks maybe there's some money to be made in basically providing the AML kyc type layer I mean there could be like or

maybe there's or I don't know what he's thinking I actually don't understand here but like this to me definitely has a flavor of um well a a crypto Banker not sticking up for d5's interest right yeah like this is what it like this is not we didn't ask for this we don't want this if if you're going to participate in Lobby in DC towards these ends like please don't not on my behalf anyway I don't want any of this I request to not have this now to be fair he's saying like if you have feedback give me a better suggestion I'm completely happy for the crypto Community the D5 Community to present better suggestions and like we will in the future and I

hope people like Sam actually listen to this feedback like he might not be in it for the reasons we're in it but he has to respect like why crypto is valuable in the first place and not start to erode these values David there are some other takes around the community you want to talk about some of these yeah DC investor says SPF is the most effective value extractor in crypto he's very transparent in that he wants to siphon value out of your account into whatever causes he claims to care about couldn't care less about decentralization meanwhile NPCs hear simp and worship him like a hero pathetic oh DC coming in with this spice uh yeah I mean so like Sam bacon tree does have this like cult following in crypto like anyone that makes like a billion dollars in crypto

is going to generate a cult following I think DC here DC is like saying hey like let's not let's not do that let's not let's not accept billionaires because they've made billions exactly yeah how about this take um Scott Lewis says FTX is spending money to push a law through Congress that may Force D5 protocols to operate like centralized exchanges this proposal is called the digital Commodities consumer protection act a better name would be digital Commodities FTX protection act that's what I was saying when it's like yes this is like okay like Sam is like somebody builds a big entity and then they start lobbying regulation to protect them uh that I see this take as well yes indeed yeah I think that is the the big fear uh this is where that number came from what's uh this tweet saying David yeah Sam bankman

freed has spent 39.3 million dollars uh quote buying DC politicians since January um I mean anyone who's been living in DC lately has I mean that's what you would do I mean and here here's the thing I think we actually do need to spend money the crypto industry does the defy industry does need to spend money and get out votes in order to get politicians uh working with us that's just how the system works but if I will I will bring up that Sam bankman freed has promised to donate 99.9 of his wealth or something to effective altruism and give away all of his money um I haven't seen any tweet talking about him doing that uh I would like to know if there's been progress on that

front I mean he said he's going to do it later I I don't know I mean yeah well so am I well I'm also going to donate 99.9 of my wealth later are you really though yes I am are you really no okay I'm making fun of champagne I mean like I I don't know I mean I don't judge him on that I just you have to wait it um actually um who else had a take on this so this is a take from uh Eric Voorhees um responding to SPF and again SPF has been on a lot of criticism I appreciate that he showed up in Washington that he's like yeah I appreciate some of what he's he's not doing nothing he's not doing nothing but like he gives us if it results like please just don't do anything um this is Eric for he's saying you can

advocate for Effective altruism or you can Advocate Banning 80 million innocent Iranians from the future of global Finance you can't do both glorifying ofac in proposed crypto industry standards is a non-starter that that to me is actually like um effective altruism or side like I actually think the thing that we're trying to do in uh preserving and propagating crypto protocols and crypto values that is a public good right I mean like that is a service to Future generations and I wouldn't mind more spent on that I can't tell a billionaire where to spend his money but like if the result is uh we get something like this David right no thanks man no thanks

um last thing I'll say is the invitation is open to sambang been freed um we are ndms yes uh I'm waiting for him to confirm a week from today he said he'd be willing to come on the bankless podcast and talk about it and I think um that is the form like you can't have a nuanced conversation over Twitter podcast is the form and we would love for Sam to tell us uh about his take yeah um tell us what he's thinking respond to some of these criticisms and we hope he takes us up on that offer so uh we will see my friend that is that for now uh David can you tell me what the people really want to hear about and that is the Aptos layer one baby I just cannot wait to hear about Aptos okay this shiny new monolithic layer one that's promised

to be even faster than all the other previous layer ones that have come out has finally gone to mainnet so Aptos Autumn is here this tweet says uh was it actually here I don't really know but the the news that I heard on Twitter and around is that it's not actually what it all was all cracked up to be so Aptos it's a was a layer one blockchain that was built off of the move language which was developed by the uh what was that one Facebook Libra yeah so for people that weren't around during the Libra era Facebook was wanting to make a digital currency a new literally a new currency yeah with an eth killer attached the whole track yeah before like Congress said no Mark Zuckerberg you can't have a

new Reserve currency sorry um uh but anyways the team behind that has gone off and created Aptos using the move language that Libre was created um it promised uh to have a maximum ceiling of a hundred thousand transactions per second and apparently uh this is I haven't verified this myself because I don't even know how to use Aptos which is another problem that the current Aptos TPS is drum roll Ryan four four what transactions per second wow yeah that's not the same that's that's less than ethereum okay uh interestingly uh while the blockchain seems to not be effective the tokens

have definitely been deployed and sent around to all stakeholders but there's this uh and this all this news break broke came from this Twitter account called Paradigm engineer 420 who treated out Aptos is broken and so I'll read some key tweets here uh Aptos promises 100 000 transactions per second in its finalized version however the current TPS is somewhere in the four transaction range it's hard to see how users can even use Aptos right now I personally cannot find any rpcs connect worth connecting to or any validators that can send transactions Aptos team knows something as uh something is wrong because between Genesis and 1 30 PM Pacific time the app tours Discord was disabled users couldn't chat or ask any

questions kind of like the blockchain they only recently opened up a few channels but important channels like Dev resources are still closed the total supply of the APT token is a little bit over 1 billion however 821 million is currently staked this means that over 80 percent of the token Supply is controlled by the team and investors and there was no airdrop or no other method to earn app mainnet Aptos tokens however this doesn't account for the remaining 200 million Aptos tokens where could those liquid tokens be question mark so he they propose some potential answers sitting on investors FTX accounts waiting to dump on retail or sitting investors binance accounts waiting to dump on retail the point is that the nearly entire and token Supply is going

to private parties there was never a public sale or any method where users could have earned tokens and then they continue however hope is not lost sui another blockchain is using the move language with arguably better Tech if I had to guess Aptos knows that sui will probably succeed in the long term and they hoped that by front running them on launch they could gain some sort of Advantage I will wait for the Stewie launch try out a few applications on optos and see what would happen so that is the summary thread that we got out of that and he takes rent yeah you know here's the tldr in this thread too you are going to get dumped on the only play I would make on Aptos is a quick farm and dump this reminds me back not Financial advice Yeah well yeah just maybe life advice without saying um do

you know uh so this reminds me a little bit of like 2018 again and like kind of the promise of another crop of uh ethereum Killers 2018 and 2019 and the best advice I kind of learned at that time that I think now applies to this to this new group of uh supposed this isn't actually a Neath killer now it's a Solana killer right yeah zelona killer Thief killer it's like and so by the transitory property yeah but the best advice I could give not Financial advice life advice is just try the thing first forget about the freaking token don't buy a token don't don't focus on see if it works is is there anything on there that's compelling compared to your

experience on other layer twos and layer ones can you do anything on it do you know do you know the most recent valuation of Aptos uh billion two billion dollars damn is that all kind of like private valuation so VC is private valuation stuff that's the highest number that vt's pre-launch chain right but again it had the pedigree it had moved the language it had the X meta Facebook oh boy I don't know man these kind of narratives are worth a lot um there's some few takes here here's one from um Olaf yeah remind me what's the name of Olaf's firm uh polychain polychain multiple chains is definitely embracing multiple channels as many chains as possible

Olaf says the Aptos token distribution scheme is among the worst designs I've ever seen and I've seen a lot and then he gives it gives us the numbers the foundation 67.5 the team 19 investors 13.5 the only way coins get into quote the community parentheses lull is through arbitrary Foundation distributions yeah so the only way that Community can get tokens is by buying them there was some sort of airdrop I think it was small it was like maybe a couple thousand dollars here's the reaction I'm seeing from the community in all of crypto is like we're just tired of the extractors and rotations so tired exhausted by it it's a bear market like it's like it's just like again you

know that one meme of just like the the comic uh is of this uh guy that goes uh to like a bear trap and like Bears this is ridiculous how are you falling for this and then like it goes like some other form of a trap because like this is a so silly how can you fall for this and then like the the last panel would be like him buying the Aptos token yeah I mean it's so uh DC investor calls this the events of this week a near categorical rejection of Aptos by the community I saw this mainly by the community uh Kobe says you could tell who bought the seed round because they're tweeting excited for launch rocket ship emoji instead of calling it crap dose and tweeting about how it already crashed or something this is Anthony sasana you just know

that 30's Capital would be Shilling the hell out of Aptos if they were still around he follows that it was that was one of my favorite tweets because you just you can totally see it happening well this is the Fallout was actually in my opinion I even enjoyed this more he's he's quoting three hours Capital potential I have abandoned ethereum aval HD or polka dot Tara Mina and Salon it despite supporting them in the past my new team is Aptos all in baby okay so for the people who didn't get that reference uh when Solana or not Solana when three hours Capital was done with their whole super cycle narrative and they were done on the eath trade they moved on to the soul Luna a vax trade position so this is in the second half

of 2021 and suzu said uh yes I have abandoned ethereum despite supporting them in the past and so what Anthony cesano has done he's just added every other chain that Trio's Capital also Shield Avalanche near polka dot Tara Mina and Salon it's by pointing them in the past that was that reference guys put your hands up if you were sick and tired of rotators and narratives without the building hands up right here I'm tired of it come on SpongeBob oh yeah dude we didn't even comment on Dave David's wearing this ginormous SpongeBob uh shirt today it's a huge SpongeBob on like it's like yeah it's it's a no it's it's a it's meta because it's a sweater of SpongeBob wearing a sweater oh my God how deep does it go it yeah

only two layers deep okay two layers deep that's pretty good player two yeah we'll get to layer three later uh David another big thing this week that was a question not just this week it's been the last couple of weeks it's been growing yeah a growing Narrative of this talk of ethereum censorship and this comes out of a kind of a ofak compliant relayers in particular flashbots I pulled up a a Reddit post the title of this and maybe you could explain it to us is in the last 24 hours 51 of eth blocks were censored and ofac compliant what is this what does this mean is ethereum being censored right now yeah so this is the 51 here is coming from how many blocks came out of the flashbots or other ofac compliant

relayers uh and that doesn't it and if there's a lot of there's a lot of like stuff packed in there uh ofak compliant it just means that uh tornado cash transactions are not in this block so uh now that we're on the website we're actually seeing that 54 of blocks are ofac compliant as in 54 of ethereum blocks do not have tornado cash transactions in them I'm pretty sure that's the only thing that means of fat compliant or not we're using tornado cash for now but ofac could add whatever it could add uh you know David hoffman.eath if it wants yeah yeah well um and then and then there's a couple relayers which are definitely not following ofat compliance which are probably outside of the United States and that's like a very small sliver

compared to ofak compliance most blocks are like totally normal blocks uh and so there's this big conversation is like okay we have all these relayers who and this is strictly a part of the whole proposer Builder Mev boost conversation where people will build blocks for you and then relayers will relay that to ethereum stakers who are will choose a block and then stake on that somebody like flashbots the biggest relayer in ethereum because they are a U.S domicile entity has said hey uh yeah we're going to follow ofac and not violate the law and we're only going to relay ofac compliant blocks so this has created a conversation of is it the ethereum protocol being censored because there's like 54 of blocks being produced our ofak compliant now there is a huge

difference between creating a block versus building on prior blocks and so we'll call it 50 50. uh 50 of blocks are of fat compliant 50 of blocks are non-ofat compliant the non-ofat compliant blocks are taking like comprised of 50 of all blocks added to ethereum and then the non-compliant blocks are building on top of those blocks rather than building on top of the most recent in ofat compliant block so ofac non-compliant blocks are making their way into ethereum easily and this is not an issue and so ofac so people that want to be of fat compliant are just adding on to the ofac non-compliant blocks so tornado cash transactions are

getting into ethereum they just take longer they take they take instead of taking uh probabilistically speaking instead of taking uh 12 seconds or taking breaths 24 to 36 seconds to get in we are worried about this getting worse we are worried about this approaching as soon as we start to get like 90 to 95 of all blocks are of fat compliant then we actually start to be like okay it is now Troublesome to use tornado cash but not until we get to something like above 95 would it take like perhaps sometimes up to five minutes to get a tornado cash transaction into the blockchain and so it really only becomes a critical issue when we start to actually get into the extreme saturation

and right now we're 50 50. 50 50 still like a lot still not good um however it's been my opinion that this is just a very temporary part of ethereum's History while we are just post merged without all this other infrastructure um but that is the conversation going on today David this is a form of um weak censorship soft censorship yeah is what Justin Drake would call it and I would encourage you guys if you want the full story on this like the full download on how censorship resistant ethereum is go listen to the Justin Drake bankless podcast on uncensorable ethereum I think is what it's called he goes through this exact scenario that's happening right now uh and so this is a form of weak censorship not strong censorship it's not happening at the at the validator

level it's happening at the relayer level and by the way this relayer job function is set to be eliminated at some point in the protocol right we are no longer going to have relayers post some upcoming protocol changes right and there are that are that's a solution that we even have other Solutions before we even get to that point too and so like we are just in this one moment in ethereum's history where we are at the weakest point of censorship resistance which is the weeks to months following the merge uh this is latelot.eth who put out an interesting poll uh who said I'm a solo home validator in country a we are at war with country B and I decide that I'm not going to include donations to their military when it's my turn to

to make a block this validator should a b slash for censoring B voluntarily be exited or C be tolerated and about 41 said be slash for censoring about 11 said voluntary exit and 47 the slim majority said be tolerated and that's also what I said Ryan I said be tolerated because um and I also asked Martin koppelman here asked what his answer was because I had a debate back and forth with him about how severe the censorship thing was uh and Martin koppelman says ideally the validator would not even have the option to censor and then vitalik responded to that and said I would say be tolerated as in allow that person to not include blocks and vitalik continues

and says slashing or leaking or socially coordinated anything should only be considered for massive reorgs which was what I was talking about with going back and building on a different chain even though we know that we already have a good one to begin with slashing or leaking should only or socially coordinated anything should only be considered for massive reorgs of other people's blocks not making wrong choices about what to put in your own any other answer risks turning each Community into morality police and I really like this I I think it's I think I as a validator should get to freely choose what transactions to put into a block so long as I choose the recent the most recent block to put in like say for example I am a religious uh person and it is uh

according to my religion morally wrong for me to include certain transactions of a certain type uh to in to the ethereum blockchain I sh and I feel I feel like I should be able to be included by the ethereum protocol and I should feel free to choose whatever transactions I want to include into the ethereum protocol I should not be able to dictate what other people put into the ethereum protocol so I feel like I should be able to pick and choose and that is called that censorship but so long as there's not one uniform version of censorship and we are all picking and choosing our own particular flavor of how we want to do our own particular censoring if you open that up to 10 000 validators there's no canonical version of like we are doing this or we have

these values everyone's transactions ultimately get in well we also don't censor people's ability to express themselves that's my take care yeah I think that makes sense I think some people are worried though David about like this being sort of a slippery slope and are we letting are we making it socially acceptable to get um part of the block building process be uh ofat compliant and some of the criticism has been lobbied at flashbots themselves so let's remember how much good flashbots has done for ethereum like save the theorem's ass I don't know how many times right just like we are in a much more censorship resistant place because of flashbots and people are saying well now flashbots is undoing that because

they're choosing to host a relayer that is censoring transactions and why don't they turn it off the truthfully David I don't know the answer to why it doesn't flashbots turn off their relay or not they might have reasons for this I have no idea why I do think that like flashbots and Phil Diane and others have literally spent their entire like lives their entire career trying to predict yeah he's he's a hero and so a little bit of me the back and forth on the social layer because Phil put out a tweet and he was like hey I'm just sick of like the vitriol like you guys are like it's kind of toxic I'm paraphrasing what Phil said he said it far more elegant uh eloquently but like to me Phil Diane this is a little bit like um Gotham City

uh complaining about Batman about Batman yeah it's like flashbots and Batman has been protecting Gotham for a pretty long time there are sometimes you don't understand Batman's motives there are sometimes like Batman screws things up and actually should be criticized like cause a car crash sure or like maybe he actually genuinely screwed up and we should definitely hold hold them accountable for this but like also at the same time um Batman's a good actor it's like doing it for God and I don't know there's an element of that where I I feel like we as a community also should have extensive grace to the builders actually trying to protect against this so these are my takes and long run David I am it's enough on long run it is a

nothing Burger I 100 agree I think we are going to have a censorship resistant um but like if you want to make your own call on that make list listener first listen to Justin Drake on uncensorable ethereum in order to have why we made that podcast we made it and we made it before all of this um yeah so uh anyway that's that's what I think you should do David what do we got coming up next connect next we have a new announcement out of flashbots called something called Suave which we have some details on uh it was a announcement that I actually had to go ping hazu's like hey Azu can you give me the details for this and he's like no announcement's coming soon but then he followed up with some details so we got those details coming

soon uh the European Union preparing to ban mining what's going on over there in a critical vulnerability founding Cosmos IBC we'll cover all the details and more but first a moment to talk about some of these fantastic sponsors that make the show possible the reality today is that five corporations control the entire world of social media they own our names they restrict our content they monitor our every move and their time is up thanks to our sponsor diesel diesel is a layer one blockchain built from the ground up to decentralize and scale social networks with DSO you can own your own identity content and social graph and take it with you across hundreds of applications already built on the censorship resistant diesel blockchain diesel storage advantages make it finally possible to build

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significantly faster throughput for the web free world fuel also goes beyond the limitations of the evm with its own fuel VM which is more efficient and optimized opening up the design space for developers and lastly fuel brings a powerful developer experience with its own domain-specific language Sway and a supportive tool chain called fork with fuel you can have the benefits of smart contract languages like solidity while adopting the improvements made by the rust tooling ecosystem letting the fuel development environment go beyond the limitations of the evm if you want to learn more there's a link in the show notes to see how you can get involved with a fuel Network flashbots reveals new version of its Key ethereum software reads the coindesk headline development of suave as a project is code name has

been going on for over a year now so this has been something that flashbots has had uh I guess like in their back pocket ready to deploy and they're coming out with details now and so this is what I went to housos like hazu can you like help me interpret this and what's going on uh and he said uh detail is still coming out soon but conceptually he says you can think of suave as the end game of the flashbot stack an auction an encrypted Bend pool and a block Builder it sounds like a bunch of censorship resistant tools encrypted mempool sounds real good I I like that sounds awesome as a user you'll be able to trade on ethereum Sue Suave and any Mev that you create will be captured for you as a Searcher you will get the perfect environment to

trade including across different chains and as a roll up you can connect two swabs to get the benefits of encrypted Mev aware trading for your users unlocking Mev action auctions for your stakers and all in a progressively decentralizing way so this is why I think like people are in like flashbot stop censoring what are you doing what are you doing don't patronize their voice David and then flashbots like maybe they don't say anything but that's because they have this Suave thing which answers all of the all of the criticisms and claims maybe not all of them but it's a decent job of fixing a lot of this stuff uh and it's called Suave and it's coming out soon uh and so uh this is coming out and

I think it's going to really change the conversation of this whole ethereum censorship thing I share that take to you and yet also I don't want to go on the other side of things and just say ethereum community just trust everyone stop caring about censorship so much at some level it makes me incredibly bullish that we are getting such a reaction from the the community to say this is not okay oh fact I mean you go the other direction and like go sign up for some of sbf's Regulation right I don't want to do that either so we've got to strike the right chord and like um I don't know when in doubt to me David the best thing you can do is uh if you see a problem grab a shovel

just help out if you see it rather than be critical help out um anyway that's not that's not the form for Twitter Twitter is all about talk right not a lot of uh actual things get done yeah right um what do we got anyways coming out of ZK sync this is their secret sauce they have released their secret sauce there's a lot of people who thought it's not maintenance yet though right it's it's not mainnet no but the the reason why ZK sync is first to mainnet is because they have this crazy ZK prover thing that you can prove with a GPU and this is the the piece of the puzzle that really completes a ZK evm and it's the secret sauce that ZK Sync has that has allowed them to go to mainnet while everyone

else is still releasing their test Nets and so Z casing uh tweets out today we are extremely excited to announce that we have successfully completed Milestone three proof merging with the integration of validity proofs which is like uh if you're if you're talking about an optimistic roll-up that would be a fraud proof with the inter immigration of validity proofs CKC 2.0 is officially the world's first ever ZK evm running on public tests that's the hard thing right the validity that's the hard thing that's the thing okay yes and there were many other teams I remembered uh both people out of arbitrum and scroll last week who said who tweeted out uh their without naming names even though they were just basically talking about ZK sync uh a zke evm claims to go into mainnet next week uh and by no means

will it be a complete thing uh because there's still stuff missing and well zke well ZK sync and many other layer two teams are all still have much work to do this was the thing that they thought wasn't present and zksync is saying that is prevent present now I am not technically competent to be able to vet this myself I don't have any idea about how a validity proof is created but zksync is saying that they got the thing that everyone else says that they didn't well uh and so these are the layer two Wars and they are awesome I think this is part of the Moment of Truth the other part of the Moment of Truth is October 28th once the main ships we are what as of the time that this is released probably seven days away from eight or nine days a week yeah so now seven

tomorrow so uh yes exactly yeah we'll get to see it soon uh and uh pretty exciting and just a reminder David and I are advisors for ZK sync we're also investors incredibly bullish about ZK evm in general um you can always find all our disclosures information in the show notes as usual guys uh uniswap is on eight chains David I lost track of how many chains uniswap deployed to not just ethereum mainnet but eight and its next one is going to be ZK sync uh CK sync making moves and so the community voted you swap V3 will soon be deployed on ZK sync unisop's eighth chain uh sounds like a multi-chain world if you ask me Ryan and it sounds like the multi-chain

world that you and I were talking about while everyone else was talking about all the alt layer ones so I'm just going to take a quick well what are the chains what are the chains you know they're all they're all ethereum EVMS no so there's not like arbitrum polygon optimism uh what's the LG casing uh maybe they didn't do Avalanche they did all this ethereum aligned um chains is that what you're saying yes yeah uh-huh uh by the way I'm really excited about the episode that we're releasing coming up with Dan elitzer about the app chain thesis yes this ties very nicely into that super hot yeah just teasing these premium listener is probably going to get that pretty damn soon here yeah hopefully um you guys will we have so many podcasts in queue that it's actually going to come out for bankless premium

subscribers probably like 10 to 15 days before we actually released a promise that's a that's a bankless premium promise David just made Bankers editors were like damn it David uh how about this this is pretty cool Ryan what is it yes okay so as somebody who came from a tokenized startup this is actually pretty cool digital real estate platform sells house as an nft uh so you can buy a house on chain uh and this is an article out of the defiant uh the way that this works is each home is titled as a limited liability company and is associated with a unique nft on the ethereum blockchain this is how my old startup did it except we did it with erc20s instead of instead of nfts and we also fractionalized it the process here

is that when the lender There's A lender involved approves and funds the borrower's request on Teller the usdc homes platform uses the funds to purchase the LLC nft the nft has been transferred to a multi Sig wallet that serves as an escrow account until the buyer pays back the entire Loan in accrued interest so there is also a mortgage and loan application being going on here as well and this is coming out of this platform called roof stock which was just a normal Trad five business I remember like using roof stock as like the competitor to go after when we are we were using our like leveraging like blockchain when they weren't what are you talking about your previous startup that David used to work with was called real Realty Realty yeah

uh and then uh they but roofstock has made their own on-chain Marketplace uh so they are making a I think that's that's on chain is the name on Capital C chain property Marketplace uh and so that is pretty damn cool okay uh can I can I take the counter to this is it cool though okay so I have been promised um real estate on chain forever okay yes and it's never taken off it's been many years it's been a bit five years and you used to work at Realty so I've heard your previous thoughts on this I know this is different because it's an nft and it's cool it seems like it's attached to kind of it's also different

because it's a business that already existed okay that was doing uh democratizing access to real estate property okay I get that but also still the house is off chain right so all you're getting is kind of this um uh Global transaction verification of an off-chain assets like the real world assets on chain thing that's just also still hasn't really taken off very much yet yes your your take now is is it's not crypto native therefore why should I be excited about it because it still meet space legal regulations that's part of the take and then also the other take is just like it's been five damn years right okay but the fact that roof stock

is doing this is different okay because again like I said they're all they're not a startup they already are like profitable as a company probably uh and they are now getting into blockchain stuff uh and so you're totally right in that the and this is why like tokenized real estate was also just fundamentally uninteresting to me in the first place was that it's not crypto native like I like things like ultrasound money or crypto punks um but tokenized real estate or off-chain real estate is inherently not actually blockchain Innovation it's legal system Innovation it's like lawyer Innovations is lawyer heavy blockchain light um but we're seeing signs of this starting to actually roll um and so we'll see and like there are benefits of doing on-chain stuff there's are there

are literal just a bigger Marketplace for on-chain stuff and just things are actually easier uh payments and escrow and all that stuff as somebody who recently you know bought a house and did the whole Esco process I would have loved for that to have been a multi-take on chain I could totally see how that would have translated so there are real efficiency improvements by using blockchain you know it's honestly I've always thought it's only a matter of time right it's just not going to be the first it's kind of somewhere between like um you know crypto money that we have and like being able to buy a coffee with with Bitcoin right it's like somewhere in between kind of the spectrum of when it happens in our trajectory but this is cool David all right this is this this is cooler I think this is definitely

cooler you think it's cooler I think it's way cooler yeah uh this is an example of like stuff that went under the radar right 2.5 million people just created crypto wallets using Reddit and no one noticed including the redditors themselves I'm pretty sure not even them right they didn't even know okay so uh this is a story from TechCrunch redditors have created uh millions of crypto wallets to buy nft avatars this uh is a tweet during a panel at TechCrunch disrupt the Reddit Chief product officer revealed that to date reddit's vault blockchain which by the way is based on polygon technology created over 3 million crypto wallets to date three million crypto wallets and

they didn't even know that they were creating it most of these 2.5 million of them were created to purchase nft avatars that could be sold as profile pics on the platform 40 000 of these things sold between 9.99 and 99.99 and most of these sales are I want to emphasize that 40 000 nfts were sold at various price ranges from 10 to 100 and they sold out and and remember I remember talking about this a few weeks ago where Reddit was going to do this and they and somebody made the comment how they never used the word nft they just used digital collectible and they sold it with a credit card so not nfts that are actually nfts were

sold with credit cards and 30 artists released 40 000 avatars and they all sold out and so what's the lesson here nfts don't call them nfts don't make them use crypto and just charge some credit cards and that worked and so like there's there's now perhaps like millions of people who don't know that they just bought an nft on a blockchain a real crypto wallet yes they don't know that either that's how seamless users who purchased one of the limited edition pictures got licensing rights to use it on and off Reddit as an avatar and could mix and match their Avatar's look using a built-in Avatar Builder tool that is cool and this is this has always been the Bold case for ethereum is that it finds its way into all corners of the

internet and you don't actually notice that it's there I mean just to Benchmark this okay so Reddit maybe just onboarded three million people to crypto wallets okay openc has about a million active wallets um as of as of last January they had that metamask does about 30 million 30 million users so bam 2.5 million users just like that that's how that's how quickly social media can scale us uh David what's the story European Union countries must be ready to block crypto mining says the European European commission members of the European Union the EU is developing an energy efficient label for blockchains uh approved basically approved or unapproved blockchains as the distribution of gas supplies from Russia leaves some fearing High Energy prices

blackouts and shortages so there's a quote here in case there there is a need for load shedding in the electricity systems the EU member states must be ready to stop crypto asset mining the commission said load shedding is of course when energy companies deliberately switch off Supply to certain set of users to avoid the entire grid toppling in the coming months to years the commission intends to take various steps to boost digital Energy Services while ensuring an energy efficient sector including an energy efficient label for blockchains I feel like Ryan I called this uh when we had we saw the invasion uh of Ukraine by Russia we saw the coming energy squeeze as we are going into the winter and then ethereum went proof of stake and right

around the time where Energy prices start to go through the roof in Europe and now uh people the European union says we're gonna have to stop crypto mining which is basically at this point Ryan just Bitcoin mining because energy is in short supply uh I feel like I call this it's it's unfortunately for Bitcoin proof of work too it's not just the fact that they are stop like they want to stop it because of the energy waste narrative it's the fact that they can stop it and well yes and it's also not just the narrative they need the energy to power people's homes that Bitcoin is sucking up right that that that is the fact on the ground too I know it's uh I think it's a major problem for uh proof of work moving forward uh and certainly a

regulatory burden for uh for Bitcoin uh David what's this what happened with Cosmos last week a huge Security on vulnerability at least it's allegedly huge on October 13th Ethan Buckman the co-founder of the IBC ecosystem of Cosmos says that a critical security vulnerability has been discovered that impacts all IBC enabled Cosmos chains for all versions of IBC as in the whole thing uh Buckman assured that steps have already been taken to ensure that all major public IBC enable chains have been patched uh yeah wow uh the whole thing got above I mean this sounds that sounds really bad because IBC is sounds really bad everywhere you know if something like this could take down the entire interchange um yes it's funny this just came out after but it's patched it's passed thank

God and they found it before anything really bad happened um but it's uh disconcerting when something like this is kind of so deep in in the code um David bny Mellon this is a bank old school traditional bank they just launched a digital asset custody platform is this a big deal well it's not only a very old bank it's America's oldest bank Ryan 238 years old uh it was select clients will now be able to hold and transfer Bitcoin and ether so a quote from the article while bny is not the first bank to explore crypto this is still big important news because by and why melon reaches 20 of the world's investable assets and remarkable remarkable 42 trillion and assets under custody and 1.8 trillion in

assets under management remember how the crypto industry is currently at .95 trillion and bny melon has 1.8 trillion in assets under it's Bitcoin and ether it shows you how um I guess saturated Bitcoin and ether have become among mainstream Finance as well we got a lot more work to do with defy but uh Bitcoin and ether as assets are there uh in getting into releases dydx just released an option for Fiat onboarding is that what this looks like credit card deposit so yeah you can now fund your DUI DX account with a credit card and my only take here is that the current ethereum ecosystem or crypto

ecosystem has like I don't know five six seven eight nine ten I don't know 10 on-ramps of of Fiat but the bull case for ethereum is that it goes to Infinity because all of the apps on all the chains all have their own native onboarding whether they if they need it and that's what we're seeing here is that you just dydx is an application it's going to be its own chain it has its own native onboarding so every single endpoint of ethereum can produce its own I think so I think what you're saying if you want to get money into D5 Fiat into D5 you have to take a step and that step is usually in the form of like your bank to the crypto exchange like a coinbase or Gemini to D5 right it's like a three-step hop this goes direct from bank to D5

back to D5 very nice uh how about this what's op craft op craft is an autonomous World a fully on-chain virtual space kind of like Minecraft definitely like Minecraft where the entire world every aspect every river blade of grass every patch of snow on the mountains exists on chain and every single action in the world happens as an ethereum transaction so this is built using what optimism released at a little bit before Defcon which is the op stack and so the op stack is this modular layer 2 stack I think it's going to be the future of layer twos because just like how ethereum layer one has going from monolithic to modular so our ethereum layer twos except what opcraft has done is they've popped out the ethereum VM

and they popped in Minecraft which is crazy why would you do this I don't know but now we have a verifiable like State machine of Minecraft that now exists uh as a part of the op stack this is really cool so uh here's a there's a link in there by the way where you can play opcraft if you want to try that out um David on the raises this week the the most notable one I think was this one from chain safe chain safe is excited to announce that they raised 18.75 million dollars as a series a the reason that's notable is chain safe what do they do David they make clients they make three main clients they make load star for ethereum they make a client for polka dot they also make a client for biocoin uh so

cool a I mean we like it uh when our clients get money because this entire industry is built on clients so that's that congrats to the chain safety because it reminds me of the um the episode that we did early in the week with arbitrim's purchase of uh Prismatic in the prism team the major ethereum client of course you can catch that in the RSS feed somewhere it's also with a raise it's time to remind you that we have a jobs board it's live crypto's hiring and what should people do David they should get a job Ryan get a job in crypto do you know I saw some tweets back like hey I did it Ryan David I got a job in crypto every week yeah their favorite tweets if you do get a job in crypto make sure you shout out because like congrats to you and also welcome

welcome to the world of web 3. I'm going to read a few jobs for you guys as I usually do unit swap Labs hiring a director of product management platform non-technical is that I don't really know another question mark developer relations lead uh developer relations David I think that's non-technical you need to know a little bit but I think I'm gonna say that's non-technical senior front end engineer that's technical technical senior back end engineer trading platform technical head of security at optimism that's technical senior infrastructure engineer devops technical we got roles from Rabbit Hole coin shift Ribbit capital and on if you want access to all of these jobs go to bankless.palot.com jobs and log in and find out more all right guys coming up

we've got some takes from Twitter of course Bitcoin and eth what were they worth five years ago compared to now and where do what does that tell us about the future of course as always make sure you like And subscribe if you're enjoying this episode so far we'll be right back but before we do we want to thank the sponsors that made this episode possible sequence is the all-in-one developer platform you need to build web 3 games and applications for your users sequence is a smart wallet and it's the easiest most intuitive onboarding your users will ever experience and comes with all the features users need to feel empowered in the web 3 world multi-chain support nft display and users can buy sfts nfts and crypto directly with a credit or debit card for developers sequence is the Plug and Play platform for web 3 games and

apps their apis let you bring nfts sfts and tokens into your game or application in a sequence relayer enables gasless transactions for your users sequins already Powers some of the best web3 games like skyweaver nft projects like cool cats and marketplaces like Nifty Swap and sequence is compatible with all the evm chains including ethereum polygon binance smart chain arbitrum optimism and Avalanche so go to sequence.xyz banklist to start building or speak with a sequence team today trufi is d5's largest credit protocol connecting Global lenders with institutional grade lending opportunities trufi has completed over 1.7 billion dollars in originations and paid out nearly 35 million dollars to lenders proving that Defy is ready to

take its next big leap into the 8 trillion dollar credit Market trufai gives lenders like you access to sustainable high-yield opportunities backed by real world Investments usually reserved for high net worth individuals at the same time fund managers use truefy's Financial infrastructure to bring their portfolios on chain benefiting from the global liquidity cost savings and transparency of D5 trufi is a decentralized financial utility the protocol is owned and governed by the true fight Dow and trufi is here to bring D5 into the Golden Age Bridging the power and access of crypto with institutional grade lending opportunities and portfolio tooling explore the diverse Financial opportunities available on truefly or launch your own portfolio at trufi.io Robert leschner tweets out think of all that has happened in crypto

and globally since January of 2018. the reason why he's saying January 2018 because that was the top of the 2017 Ico Mania it was December to January and then he goes well keep thinking about it Bitcoin and ether are both worth less than they were five years ago it's also an anniversary of the top of 2017 tweet uh that's basically also what's going on here but Robert leschner says there Bitcoin and ether are worth less than they were five years ago how's that make you feel right confused yeah she's really tripping me out okay okay okay Robert I'm thinking about he says keep thinking about it I'm thinking about it I think it's bearish it's bullish well we always when in doubt

always uh I think it's bullish I think it means well probably it was a very bearish if you're in January 2018. I mean that like um there's a lot of price and like not a lot here so it was the next five years of growth priced in it's already priced it right but now the question is are the next five years of growth priced in with an eth at what 2 000 or 1200 something that would be right at the top of the episode um I'm gonna go with no no it's not pricing I'm gonna go with the hell no it's not interested in can't be priced it I don't think there's there ever been a moment where the full potential of ethereum has been pressed in except at the top well yes and we won't know of course until we see the full

potential of ethereum what the full like price price should be but yeah I um I don't know I I think that's what he's probably saying although you could interpret this the other way and be like hey enough I guess nothing's happened I think he's saying A lot's happened in the last five years yes I'm pretty sure all right what's this David Hoffman is saying Bank list is bigger than just bankless HQ and here you are with a photo someone in a bankless tea but it looks a little different what's this bank is fee yeah this is this is the bankless Brazil guys uh which Ryan I've signed us up for a podcast with them next week Portuguese no uh I don't know Portuguese either okay oh yeah I mean it's just cool to see all the different flavors of bankless teas that are out and about

Devcon and so shout out to the bank was Brazil team who just keeps on chugging along they're they're crazy their podcast is great it's in my feed I like listen to it just to because you know but I don't understand Portuguese but it's just fantastic and these guys are crushing it social media as well here's a tweet from Tom emmer do you want to read this one yeah Tom emmer representative Tom emmer says decentralized nation is the point I'm pretty sure this is subtweeting SPF if we sacrifice D5 for legislation we're throwing away the opportunity yes nice job Tom emmer David it's a politician saying this yeah that's cool that's incredible it's amazing uh uh one other tweet this is the classic regulatory capture attack reads the Tweet reads the tweet here's

what you do if you want to uh classically everyone everyone write down your notes capture okay this is uh Dr dick this was a tweet put out over the summer but I think it's resurfaced and you might see right why so if you want to capture an industry here's what you do number one you enter a nascent unregulated industry and then you beat early you be lucky you be aggressive you make hay while the sun shines then okay okay so you build a business and you make a lot of money yep step one step two you get away with whatever you can you push it right up to the point where you're told to stop you find the boundaries okay so uh you liquidate your own customers you shill a bunch of tokens and you make more money check check number three you've made your

billions well done got your market share now it's time to shut the door behind you you spend a good chunk of your spoils on compliance in quotes the goal now is to be the market leader the regulations you know are coming lawyer up to the max it starts to sound like someone I know number four you know they're coming because it's you that's lobbying for them this industry needs quote cleaning up for the good of the customer even better if you think a think of the children even better if you can find a think of the children narrative you're the champion of making this industry better ah so like you make a bunch of a blog posts that are like hey we need to protect consumers and you talk about that a lot you spend time in Washington you're the adult in the room you know

how to solve this you get where they're coming from you get where crypto crypto is coming from or whatever industry you're trying to conquer number five this gets The Regulators on your side because you're the actor most Progressive in the industry and compliance they have to let you pass because you're top of the pile they can't be seen destroying the industry so they need a good guy to get behind kind of a Fall Guy good guy hey if this person says it's okay it must be okay right he's crypto and you're crypto why don't you like it number six every other newcomer to the space hasn't made enough money yet to be able to afford the new compliance regime yeah this is regulatory Arbitrage okay you're shutting them out and in any case you've hired all the people that know how to impact the rules and Implement them in

fact you've made the rules so you you know them better than anyone number seven here's what happens next maybe we're at number seven regulations come in everyone dies apart from you and the handful of big players on your tail or the ones willing to play play The Outlaw regulatory Arbitrage game so what do you do now now your job is to layer on the bureaucracy Lobby for the regulations to fit the way you're already doing it if you have a competitor that's doing it radically different Lobby to make it illegal congratulations you've captured the industry now it's time for Ultra Monopoly own it all crush your competitors make your shareholders happy the end I hate this movie this movie sucks seen

this movie before I've seen this movie before the banking industry so many Industries is social media so many industries that achieve every industry that and this is this is why ethereum as a protocol and the all core devs call puts such a strong emphasis on credible neutrality because the one thing that we are trying to do in ethereum is make systems that are capture resistant and this tweet thread starts with the classic regulatory capture attack when was this tweet thread written um um July 3rd 2022 months ago months ago months ago and um you know I we don't have to name names obviously but um this is what we should be wary of in the

industry and particularly I think the threat could be coming from crypto Bankers in the industry crypto Banks uh specifically it could be coming from D5 another stage maybe D5 protocols but not right now maybe um all right David what are you excited about this week what's uh making you bullish I am bullish on college kids right what on on Monday I went and gave a talk to the Princeton blockchain Club uh about 12 12 kids 12 Princeton kids who were all super into crypto um a bunch a bunch of Juniors a few freshmen a couple seniors uh and the questions they asked were really really smart and if you if you're asking smart questions about crypto you're already like half of the way through it I'm told

Prince and kids are pretty smart they are pretty smart allegedly yes uh and then also uh tomorrow on Friday I'm gonna go and teach a computer science class about ethereum and David doing computer science they're in trouble someone's in trouble yeah okay I'm gonna talk about uh I'm gonna do my classic uh ethereum as a piece of software that's actually meant to produce culture so uh because like somebody else can teach them computer science way better than I can yeah but I'm going to talk about how cold it's culture yeah applications SpongeBob uh sweater in order perhaps show the culture exactly yeah uh anyways I'm just like stoked on it because like there's more and more surface area for college kids universities both grad and

undergrad there's graduate students in the NYU class to get exposure to crypto and the professor of this class I actually met at ECC so professors are in the ethereum community going back to their University to teach their kids about crypto what do you think the um like colleges and universities do you think any students are listening to bank list you think we get the uh the Gen Z yeah so uh the the professor I asked her is like it was uh how much a bank list is in your uh like uh your what you call it curriculum yeah and she's like uh a lot a lot of pain really like articles yeah episodes yes and Evan McMullen has also taught and like guest lectured for classes around New York and she says she just like regurgitates bankless episodes

nice well I've always wanted and that's just the ones we know about I've always wanted to be a professor personally I've also always wanted to be a professor well maybe are we being professors right now is this how you do pseudo Professor yeah podcast I both want to and I really really don't want to do you know what I mean like yeah I want I want a guest lecture I don't want to teach yeah well you live in the dream man that's awesome dude yeah where do you bullish on man I am bullish that this bear Market doesn't feel like a bear Market what I'll say is it just feels different um I've said this before but look 2018 2019 if you weren't there it was utter despair ethereum was dead Bitcoin uh was maybe kind of alive it was on Live support but defy had zero product Market

fit um it was the Great Depression of it was real it was very Bleak it was very sad this does not feel like that at all prices are down but there's no depression I mean the builders are building like nothing has stopped that nothing has stopped in fact I think the velocity has increased because there's less noise yes and there's more good building is off the charts there's also like better Talent entering the space and so we we actually slowed down are building I think during the last uh bear Market we didn't even know what to build and this time I see more uh firm like resolution rather than Despair and uh so this is the bear Market but it's a bear Market that's different than the last one this one bear Market we already have

product Market fit you know what I think this makes it David it's the most obvious bear Market ever because you know we're coming out the other side the most obvious time to buy is what I mean okay like yeah so obvious fair market I don't think anyone was contesting that's a bear market like the most obvious um bear Market implying that like uh we're actually gonna grow and and the bear Market exactly a bear Market before the bull market is what I mean it's just only a matter of time and I didn't honestly feel like so last time David I was like we might not make it like this story might not end well um this is a completely different feeling which means like um I'm back back to maybe lessner's uh tweet right it's like this is the price of eth now

it's the price that was five years ago and look at the five years of building and look at all of the talent that is continuing to build in the space and has entered the space in order to build tell me you're bullish on that I bearish on that I dare you to be bearish on that um so it's going to be fine and I think that's the difference between this one and the last nice getting me bullish getting excited getting the people excited at the end of the podcast uh all right what's the meme of the week is that gonna get amazing week let's do it anyone else getting Deja Vu says Nick white of Celestia monolithic layer ones are like iPhones made to be obsolete in a couple years so you buy a new one and here here's the meme of uh this guy but

getting receiving a shirt as a present and it's the same exact shirt he already is wearing and he's wearing Solana uh oh uh uh what's that what's the one below Salon again uh cardano cardano I don't know why cardano's there actually uh dfinity avalanche now he's holding Aptos and he goes oh my God thanks I can't wait to try out my new monolithic layer one I do like the evolution of like monolithic layer ones that's just like a shinier phone a shinier iPhone yeah I think that's I think that's a good metaphor yeah totally I love this guy's face too he just like got these awesome again we keep receiving this gift every single song he clearly loves it he's wearing it totally you just put another one in the closet it's benefit I guess maybe you could do that the player ones

too yeah all right guys uh this has been the roll up we appreciate you hanging with us as always got her in my you have this very important advice that is not Financial advice risk and disclaimers eth is risky Bitcoin is risky so is D5 so is all crypto you could lose what you put in but we are headed west this is the frontier it's not for everyone but we're glad you're with us on the bank list Journey thanks a lot but this guy right Ryan Sean Sean Adams I don't know Noir he's dear Lord and any lawmakers or adults reading this tweet just know bitboy doesn't represent this either talk to Jay Stravinsky talk to Miller cwl talk to coin Center you know what we are tired of people that look like this guy trying to run stuff I don't

represent the people the I don't does behind the scenes trying to save crypto while these Devils Sam Bateman freed Brian Armstrong they're trying to permanently ruin it this is not about money for me I hope you guys understand this I'm here fighting for you this guy with these freaking glasses on this douchebag is out here trying to tell you that only the suits know what to do only the suits only the people who have all the money they're the ones who can determine what happens no our bill is for the people and you're gonna find this out we've got the funding for it and it's coming out