Tornado Cash news, Blobs analysis and more - The Daily Gwei Refuel #810 - Ethereum Updates

Transcript

hello everyone welcome to another episode of delway refuel where C latest news in eum ecosystem I'm your host and 28th of November 2025 all right everyone let's get into it so some big tornado cash related news that happened a couple of days ago here Paul grow coinbase's Chief legal officer did a little thread on it but essentially the news is that the fifth circuit in the US held that the US Treasury sanctions against tornado cash SM contracts are unlawful this is a historic win for crypto and all who care about defending Liberty coinbase is proud to have helped lead this this important challenge now there's been a lot of different takes on this but essentially the tldr is that uh because this is has been ruled to be unlawful as Paul says here the tornado Cash Smart contracts must now be removed

from the sanctions list and US persons will once again be allowed to use this privacy protecting protocol put another way the government's overreach will not stand you know what I find kind of insane about this and obviously this goes beyond crypto but what I find find most insane about this is the fact that there will be no consequences for the government over this like no one will lose their job no one's going to have to pay a fine nothing's going to happen to them even though they broke the law right at least that's what seems to always happen whenever the government literally breaks the law or does something unlawful they're not held to the same kind of consequences that you or I would be held to if we were to break the law right and I think this is obviously as I said not a crypto

specific thing it's a it's a broader thing here but that's one thing that's always annoyed me about these these kind of things because for years because it's been you know what two plus years since the um the contracts the torado cash contracts were sanctioned there have been a bunch of people that have fought against this lots of money spent a lot of uh hours put into this all to get a court to rule that what the government did or what the treasury Department did in this case uh was unlawful right was literally against the law so if if that's the case then that's not in my in my eyes Justice like I'm glad that that that this case was won in particular but that's not Justice right like justice is the I mean True Justice would be this not happening to begin with and the government not being allowed to do

this to begin with but I'm just really frustrated generally about this and I've been I've been thinking about this the last couple of days and I just kept getting more and more frustrated over it because I know some of the people that were involved in these cases like personally I know what they what they went through I know kind of the the toll that had on some of them mentally as well putting themselves in the crossfire essentially putting their names to to a case going against the government going against the treasury Department going against you know ofac against sanctions like that is something that takes courage to do and takes bravery to do uh and not to mention all the money that was spent as as well and all the effort that was put into this to get this result all for a court to basically say

that it was unlawful to begin with right so yeah that's my general take there I don't know if you guys agree or disagree with me on that I'm not a lawyer I'm not an expert on this stuff but that's my kind of view on it at least from the the the threads that I've read about this on on Twitter now going forward I guess as Paul says here the smart contracts the the tornado cach smart contracts at least the immutable ones need to be taken off the sanctions list which means that us persons or citizens will legally be able to get their funds out of the um out of the torado cach protocol and they may be able to use it I'm not I don't know about that like that's not confirmed I don't know if they're going to be able to use those contracts or not

um because uh there might be separate contracts it just depends on which ones get taken off the sanctions list if they even get taken off so don't kind of take my word for it definitely do your own research on this if you're planning on interacting with the tornado cat protocol at all but yeah that's that's essentially what has happened here now this actually extends beyond the Tado Cash Smart contracts it basically extends to every immutable smart contract if you read the letter of what was actually said here and Paul Paul kind of has a tweet about this where he says the Court ruled that while the treasury has the power to take actions against property the open source immutable smart contracts at the core of tonota cash can't be owned by anyone and so are not property subject to sanctions and that's the important bit of language

here because they're immutable because the smart contract immutable they're not owned by anyone they can't be uh I guess like subject to sanctions as the law is written today obviously the law can be changed and then you can basically say well you know things that aren't property can be subject to sanctions such as smart contracts like that is a possibility as well it's not like they can't change the law they certainly can but that's a much higher bar than just regulation by enforcement here right or just lawfare law you know law setting by enforcement you have to actually write legislation you have to actually get it passed through you know through Congress you have to get get it written into law and now with uh I guess like a change in administration happening quite soon and with that Administration I believe having control of pretty much every arm

of government here and them being very Pro crypto I don't see them doing this so this is it really is a huge win like don't get me wrong I'm just frustrated about the fact that there there's not going to be any consequences for the government um from this because there never is for the government like they're just a protected species um but yeah it also applies to mutable smart contracts which means that like if if that is the way the law is currently r written and we expect the law not to change at least on over the next four years under this current the next Administration I should say then it's bullish for immutable smart contracts generally it's bullish for protocols working towards be becoming immutable becoming you know ungoverned smart contracts or having the core of their protocols not being governable if only to make sure that

they can't be I guess like prosecuted for creating these things right or for essentially uh creating things like like defi protocols you know defi has been under attack for things like money trans and not having a money transmitter license and and you know and uh I guess like money laundering and fraud and all that sorts of stuff but if the smart contracts are immutable and if im mutable smart contracts are not property and thus not subject to sanctions then uh I guess like in this you know in the particular case of sanctions it's bullish or I guess like it's it's a motivation to make your smart contracts immutable at least that's my take there but anyway you can go read poll's whole tweet trade for yourself if you would like to I'm sure you guys saw a bunch of takes from other people on this but

generally yeah this doesn't seem to be I mean there doesn't seem to be any negatives here besides the fact that I guess like Roman storm and Alexa PV are still fighting their cases uh they're still not off the hook here this just applies to the sanctions that were placed on the core tornado Cash Smart contracts on ethereum L1 so yeah the the the the Roman and Alexa are still unfortunately fighting their battles there which again is a whole another thing there is another Injustice that that's happening uh but hopefully they are able to win their cases uh as well all right moving on so a big kind of bit of movement with regards to blobs today so you know what I should actually give a bit of context around this before I start talking about this but as you guys know with blobs and I've been talking

about this on the refill for for months now you know blobs had a target of three so three blobs per slot with a Max of six blobs per slot that was done you know it was done in a I guess like in a rather conservative way we didn't want to have much b Blobs to start with when blobs went live in March of this year because we didn't want to overload the network and we didn't even have data on on how the network would would react to blobs it's not just a bandwidth it's also transaction inclusion it's reor rates it's all that sorts of stuff so we obviously wanted to start conservatively and then ramp that up over time now as you guys know for pretty much the entire month of November blobs have been at Target there have been uh no I I think

on average at least no days where blobs have not been at Target which means that blobs are not free anymore they go up in price based on the natural fee Market that forms around Supply and demands uh and you know when there when when the supply limit has been hit demand is still going up things get more expensive now this is not a long-term sustainable thing we shouldn't want this to be long-term sustainable because those fees are passed on to users at layer 2os they're not just eaten by the layer twos themselves they will definitely pass that on to users in order to pay for those and the longer that the blobs are at capacity and the more demand comes in the higher the fees go Obviously good for eth Value acral in terms of fee capture and also good for the burn and for for the memes around that but that's

I guess like a short-term benefit long-term definitely not benefit here and there's actually a tweet here from Brad that talks a little bit about this where he mentioned that blobs are actually more expensive than cold data now as you guys will remember call data was the place that rups would post their Data before blobs came along and now that blobs are more expensive than call data what essentially happens is some of the rollups have a mechanism inbuilt where they basically just like switch between the two so if call data is cheaper than blobs they'll post the call data if blobs is cheaper than cold dat they posted the blobs and so on and so forth and I'll switch between the two now this again is a short-term thing because data is actually going to be repriced and made much more expensive in a future hard Fork I don't know if it

will happen in Petra but it might still happen in pectra uh if not it'll be the fork after that so this is really just like something that is very temporary it's not going to be a strategy going forward uh because we don't want this to be a strategy going forward right we don't want the network we don't want I guess like L 2 doing this we made blobs for them they should be using the blobs but as a as a a community as a network now we need to scale up those blobs because they're more expensive than Co data which is just crazy when you when you think about it right and we don't want this kind of Arbitrage having to happen between the two markets here now uh in saying all of that the thing that I want to talk about was this new bit of

research that came out of the um eth Panda Ops Team at the ethereum foundation here that looks into what is a safe limit that we can raise blobs to in Petra like for Petra is hopefully going live in March or April so what's a safe limit here and this is a really great bit of research it was based on um I guess like a direct uh I guess like data that was coming from home and solo stakers because those are the ones that really want to protect here pretty much like every other Staker would be fine with an increase it's all the solo and home stakers and those bandwidth constricted us users that we wanted to get Telemetry from in order to make an informed decision here now Sam here Sam CER Mason here on Twitter posted the tldd is that he believes that a increase

uh to four blobs per block with a Max of eight and six blobs per block with a Max of nine are both safe for main net under current conditions because I believe 95% of the entire network is able to handle an increase to those based on the data that he was able to gather here now this is exactly the data that we want to see I remember I mentioned this on the refuel saying that we needed more data around this before we could make any I guess like concrete proposals here but yeah it seems like this is something that will satisfy the core devs in order to increase the blob Target to four or sorry the blobs to 48 or 69 I'm personally in FA favor of 69 because 4/8 is not enough considering that it has to happen at every hard fork and if we do

it in Petra and we only do four four 4/8 and then we have to wait another year to do another increase I know pias is potentially I mean hopefully coming in the upgrade after Petra and faka uh which is going to go live look realistically early 2026 I'm not going to say late 2025 because it's probably not going to happen then but early 2026 that's still going to be too long especially as because we know that the demand is already there it's already been met and we're already at capacity here so I want an increase of uh six per uh per slot Target of six per slot with the max of nine here which should give us I mean I'm not going to say you know enough breathing room but should give us like I mean as much breathing room as we can possibly ask for in the current

state of things before we get pieras because pieras is that order of magnitude unlock where just refresher for those who don't know it essentially means not every node operator or every I guess like um uh yeah node operator is the right term here not every node operator in the network needs to hold all the blobs we're basically like sharding the blobs or I mean we're sharting the blobs and then using data availability sampling to make sure that uh everything's kind of uh koser and everything's secure but uh essentially that is an order of magnitude increase and that basically means that we can increase the blobs way higher than what they are now uh safely without increasing the overall burden on the network whereas a blunt I guess like kind of Brute Force increase with this with going from from uh three to sl6 to 69 is is more of a I guess like burden

on the network and more of a Brute Force thing here but we have the data that backs it up now that basically says that that's okay we can do that there's nothing actually wrong with that at this point in time so great to see that great to see this research put out there you can go check out this research for yourself if you want to I'll link it in the YouTube description below for you to do so but as I said I'm in favor of an increase to 6/9 here I am ready and willing to store as many blobs as you can throw at me as you guys know I store all the blobs permanently they expire after 18 days on mainnet but I store them all permanently on my nases and they're all there like since day day one of blobs going live they're all still

there they're all kicking along uh they're all filling up my my storage space there but I got plenty i' got like 100 terabytes of storage space so give me all the blobs eventually that's going to be hit especially as we scale them up like exponentially with pier and stuff like that uh but yeah I mean I'm I'm happy to saw them it's just sitting there it's it's in my wardrobe it's just sitting there on a on a server there but anyway enough about that moving on to the next update which is from Preston van Lon so this isn't an update more of something that happened a few hours ago which was like a minor ethereum mainnet incident but the reason why I wanted to talk about this was twofold one I wanted to give some I guess like context around this because people would have seen this

and be like what's going on so essentially what happened over I think a 90minut period or a 2hour period there were 40 invalid blocks from the me boost pipeline pipeline the root cause wasn't known at the beginning but then Preston basically said the root cause was me boost relays causing invalid blocks to be produced this is not a bug in any client software or the ethereum protocol and a postmortem report is expected to come after the issue is fully resolved now as you guys know me boost is this kind of sidecast software that like 95% of the network uses to build their blocks it's got it's got a pipeline to it where essentially you have like these Searchers and these builders that uh or I guess like Searchers SL Builders I mean they can be the same thing but they can also be separate that sends that

that builds blocks and then sends it to a relay and the relay sends it to validators and then validators propose the block on the network and you know that that that's the whole pipeline essentially but that me boost software is not is not part of the core protocol it is as I said sidecast software which means that it can have its own bugs right it can have its own uh issues and that's exactly what we're seeing here and the most frustrating thing about this I think for qu developers is that they have to fix this or they have to diagnose this and they have to basically um look into this whenever something goes wrong even though it's not their software like that's not something that they've worked on it's not something that they that is part of their usual I guess kind of remit to work on or their

usual kind of pipeline of things to to Monitor and yet they have to be across it because of the fact 95% of the network uses it now of course this is I wouldn't say a failure of of the etherum protocol to date to deal with me in a better way it's more of the fact that we have all these different ways we want to deal with me specifically with epbs as it relates to this um ethereum propos a builder separation or I should say enshrine propos a builder separation um but I like etherum propability but yeah it's in Shrine propability separation which essentially eliminates relays and uh basically makes it so that this stuff I mean can still happen but it's like much rarer than what it is today and is also part of the core protocol that's why it's enshrined so that the core devs can

just worry about that and reason about that rather than having to worry about these sorts of issues here now in terms of when PBS could go live on the network uh I think I highlighted a post the other day from poz uh yeah it was on the on the last refuel I basically said that he wants to Target uh inclusion in fusaka but fusaka is looking like a pretty big upgrade at this point I mean pias alone is pretty big um and and doing P Das and epbs at the same time yeah it might not be something that the cevs want to do so we'll have to see but I definitely want to see epbs on the network as well because these issues just frustrate me as much as they frustrate the C devs because I don't don't like that the me boost software is

so critical to the network it just causes issues as you guys know it's caused issues with censorship uh in the past as well but yeah we have a bunch of things being worked on to fix that you know fossil is the um inclusion list proposal that might go live in faka as well as I said like faka is getting pretty big at this point already because there's so many cool things that are just becoming ready at the same time uh but yeah anyway uh you can go I guess like read this tweet if you want to read terrence's tweet but I'm sure there'll be a post more than about this uh sooner rather than later all right Tomas from nethermind gave us an update on what nethermind is working on right now so uh as you guys know nethermind is a pretty big team but I

found out recently that there are over 300 people in the team right now and nethermind build the ethereum execution client called nether mines but that's not the only thing they do they do so much more than that but most people will know them for their clients but essentially they've got a whole list here of things that they're doing so um as some of you may know already they've been working closely with stocket to scale ethereum and and work on stocks with with them uh they're doing uh a lot of client support client builder stuff they're working with flash flash bots on their new thing called Builder Nets which I'm actually going to talk about in a sec um they're executing on uh Justin Drake's beam chain Vision so they're one of the teams that want to help build that that they want to uh build more performant clients for

rollups so essentially uh join the gigas era they've got a new rollup template that they launched the other day called surge which is uh based on tyos technology here um and they're doing open Hardware initiatives with with flash as well so they're doing a lot of different things across the ethereum ecosystem and you know so they should I guess considering they've got so many people working there like there's no use having 300 people working at your company if they're you know most of them aren't doing anything right like and and that might may sound silly of me to say but there are a lot of companies I mean in outside of crypto too but inside of crypto that have so many people that they hire because they just come into so much money uh because maybe they do like a raise because they have a token or

something like that and then those people most of them just do nothing or just like I mean this happens all the time in the corporate world but I guess like most of crypto isn't very corporate at this point it's a lot of startups right uh not to say ne ne mind is a startup at this point but you get what I'm saying here so it's great to see that they're working on so many different things and the I guess like the through line here or at least the common theme is that this is all ethereum align stuff they're not working on non- ethereum things you can see here that everything on this list involves ethereum in some way even working on uh open Hardware initiatives with flash Bots that applies to ethereum because I would assume I don't know for sure what they're working on but I would assume I

would assume they're working on stuff for like tees um and ZK stuff and hardware for that because as you guys know they're um proving is the most expensive thing for for ZK technology and creating aics that can do proving uh much cheaper is like the end game there for that so that you know and then having obviously uh uh having that be open source and open source hardware and open source software stack for that is critically important so I'm sure they're working on all of uh that there but anyway just wanted to give an update there on all the stuff nethermind is working on so as I mentioned building was announced by The Flash Bots team recently and what it is is basically a decentralized block building Network for ethereum that runs on tees and shares Mev and gas fees with users a lot of

buzzwords there but essentially it's supposed to be the end game of or maybe not the end game but like a potential endgame design to eliminate as much toxic me as possible and share it back with um share it back with users while also doing uh I guess secure ordering and secure execution so Victor buan uh who's I believe involved with flash bots in some way here uh quot tweeted this tweet by saying he believes that this will kill censorship on ethereum kill exclusive orderflow deals uh have gas and M M refunds built in neutralize Builder duopoly and create a pathway for L2 decentralization now if to understand this fully you need to understand what the current pipeline looks like for

ethereum Block building and and proposing like uh and I I explained a little bit of this before but essentially as it exists today I think two or three Builders block Builders uh Titan build Beaver build and one of the other builders they basically account for it's got to be like 90% of all the blocks built on ethereum now obviously this is quite centralized or very centralized I should say um but the end game is to have centralized B Builders with cheap validation now I know that is not everyone's end game I know people disagree with this but if you just look at the incentives it's quite hard to I guess essentially have a decentralized kind of building Network now in saying that that's what Builder net is trying to do they're trying to essentially make

it so that or go against the grain of no we don't believe that centralized block building is the end game we believe that we can decentralize this with novel Technologies such as tees and this is how we're going to do it now uh uh there's a thread here which I'll link in the YouTube description that explains in-depth more of this and I can't really give a tldr on the refuel and I don't fully understand how this works myself either tees are very new I'm still learning about them it's quite complex stuff and I I I don't want to be giving the wrong information so I'm not going to even bother at this point but if it does even half of what Victor claims it's able to do here uh I think that's that's that's a pretty killer list there but there was some comments where

someone asked you know can you share more technical details on how this solves censorship plus exclusive uh order flow and then Victor replied by saying with censorship it makes block building distributed so long as any block Builder includes a bundle with the censor transaction it will still be included in the block that's similar to I guess like inclusion list as part of the fossil design there so that's that's pretty straightforward on exclusive orderflow it basically creates a way to attribute value based on me G uh gener generated and and and refund that and then um AA or I don't know how I'm sorry I'm pronouncing your name wrong uh she said yep one of the the ideas behind Builder net is that you no longer have to submit exclusively to a centralized blog builder in order to get refunds instead you can get refunds from a

network that's run by many Builders behind the scenes so that makes sense I guess like it's more of a I guess alignment kind of thing I know that that that word's been I guess uh made fun of a lot in recent times but it's more of an alignment thing where essentially you want these Builders to be part of this network but how do you get them to be part of that and there was another uh a comment here from thogard who says the interesting thing to watch isn't when Tian or beava joins Builder net it's when they turn their non-b Builder net designs off which should be a function of the order flow so it really is a function of the order flow and what what that means to break it down a bit further is it's basically a function of how much money you can make off of this

of of these designs because orderflow is is where these I guess like people these these Builders are making their money from essentially you will I guess in in the simple simplest example on chain you'll do like a swap and then that order flow will be sent to some pipeline does it depends on what decentralized exchange you're using depends on what RPC you're using it depends on a bunch of different factors but then the profit of your order flow will be extracted in some way for these Builders uh and then they'll kind of make make money off of that now that that's why thow guard is right here where where he says U the interesting thing to watch is when these uh I guess Builders join Builder net but also turn off their own nonb builder net design so turn off their in-house stuff and just be fully on Builder net because

maybe it's more profitable for them to do that that that I guess is the end game essentially to get them to do that now as I said if this works and and and I guess like um fulfills half of what Victor says it can here that would be incredibly bullish for the entire block building Pipeline and would really work nicely and implement the existing Solutions such as fossil and epbs that will hopefully go live on the network within the next 12 to 18 months to get them fully rolled out there but yeah that's the that's the view on that there all right so just one little bit of fud that I wanted to address that has been going on for years at this point but as you guys know a lot of these kind of Twitter accounts a lot of people they love to watch onchain movements of

different types of assets right so they like to watch things like when the ethereum foundation moves e to an exchange or addresses linked to the ethereum foundation address moves funds to an exchange or when there's a big movement of onchain um token you know onchain of some token right we we've all we've all seen these accounts we've all seen uh people pile onto this but what I wanted to talk about was the fact that you can't just I guess get any information and get accurate information from an onchain movement and the perfect example of this is actually a recent thing that happened a couple of days ago where this account that is pretty popular that tracks a lot of this stuff called look on chain tweeted out saying an addressed linked to the ethereum developer or the ethereum foundation account transferred uh over 5,000 eth

which is about 20 million to crack in 1 hour ago now of course everyone assumes this is the ethereum foundation as you guys know there's a meme in the community that the ethereum foundation is always selling Ethan they're always selling the top and they're just dumping on everyone which is ridiculous because no one ever asks what the other foundations are doing with their tokens right it's always the ethereum foundation the etherum foundation has said well we our budget's $100 million a year we have like a I dollar worth of of um of money right now in Ethan in in in Fiat and we do have to sell in order to keep funding the what the etherum foundation funds and I've gone through that before and there's a transparency report that you can check out there but essentially it's just a dumb fud Vector but what's even dumber is the fact that

Josh Stark who is um uh who who's in who's part of the leadership team at the etherum foundation had to reply to this tweet and basically say this is just a really bad tweet because this wallet does not actually belong to the ethereum foundation in any way and he four steps removed from the actual EF wallet address um which over a period of 9 years and you can see see here where Josh basically summarized this by saying what actually happened is that in 2015 the EF wallet paid 3 million e to some count now 3 million eth at the time in 2015 was worth basically nothing I mean even when eth was like uh I guess um a dollar or something it was worth $3 million it wasn't worth anywhere near I guess uh the crazy amount that it's worth today like 3 million e right like

and I know $3 million back then but if you contextualize it to what it's worth today is ridiculous then that wallet transferred 6 67,000 e to a different address and then in 2016 it transferred 42,000 e to a different address then in 2017 it transferred another 242,000 e to a different address and today that final address there uh trans sorry the different address transferred 5,600 e to an exchange it is very easy to know whether a transfer is from the EF treasury or not because the EF treasury has only ever been in one place since 2015 and it's the address labeled as e Dev on on ether scan so I just wanted to quick like the reason I bring this up is because stop trusting these these kind of I guess like look onchain or whatever

other I guess Twitter accounts uh for information about onchain movements they they're wrong like they're simply wrong they don't have the relevant context or information to be able to make any kind of uh summary or any kind of conclusion off of these movements as I said yes the ethereum foundation does sell eth and as Josh said here it comes from the ethereum developer account it doesn't come from a accounts that the ethereum foundation paid in freaking 2015 because they were paying a lot of people in eth back then they were paying a lot of organizations in eth back then they were uh they were transferring ether different parties back then so if you're are claiming that that's the ethereum foundation just because it was funded or paid out of the eum foundation account then that is that is dumb it's just dumb there's as I said there's not enough

context to make that conclusion and in this case it was totally wrong so going forward I would suggest that you really take anything that these kind of like onchain tracker accounts tweet out with a grain of salt most of the time if not like almost all the time they're completely inaccurate but anyway enough rancing about that just wanted to highlight that for you guys there all right so Obel and ethery have teamed up and I mean they've been teamed up for a while now but today they've announced a new expansion of operation solo Staker so this initiative will help decentralize the eifi validator set by onboarding home stakers running obal distributed validators so you can actually get more information about this in the blog post here so essentially this is something that was originally created in late 2013 I remember I covered it on the refu back then in

order to further decentralize out ethereum uh you know ethereum staking and ethereum validating now with obal's technology being Fully live on mainnet and with distributed validated technology getting more and more popular by the day they re I guess launching or I guess launching um uh phase two or expanding the the the solar ster program here with ethery in order to onboard more note operators onto the network so if you want more information about this you can go check out the blog post for yourself I'll link it in the YouTube description below for you to do so so staying on the topic of staking there was a bug report put out uh about the E Staker or sorry I should say the staking deposit CLI and this was put out by E Staker on their GitHub here so essentially there was a bug found in the

deposit CLI so basically the tool that everyone uses to uh I guess um generate their key store files when they set up like a staking node whether that be as a solo Staker or as a professional node operator it doesn't matter if you use the deposit CLI you are affected by this uh this bug or this security issue that has been patched at this point so if you have generated keys I believe from the patch onwards which is kind of recent you're not affected by this but everyone else is affected by this now not to alarm anyone about this if this is something that that covers you but the this isn't something that is I guess like highly exploitable it's not something that is easy to exploit it requires a lot of money to exploit this uh and it requires a lot of uh I guess

like effort uh to to get access to to the relevant files to exploit this and to give you the TDR here hopefully I I'm remembering this correctly because this was explained to me a couple of weeks ago but I hopefully I'm remembering this correctly here so essentially what this bug is is basically if as is said here in the in the in the GitHub report if a malicious actor obtains your key store files there is a risk of exposing the private key of those files so while a small number of leaked keystore files would require significant computing power to exploit the attack becomes increasingly increasingly feasible as more files are compromised from a single tool run so essentially if someone has gotten access to your key store files which uh obviously you should be keeping safe but if for some reason they got

access to your key store files they may be able to with enough computing power break those key store files and and basically get access to the private Keys which in the worst case scenario they couldn't actually take your eth what they could do is they could get you slashed because they'd get access to your validators and basically get you slashed and then in the worst case scenario if it's enough validators getting slashed at the same time you would lose all of your eth to a slashing or almost all of your eth to a slashing event there as I said they can't steal your e but that's that's basically the worst case scenario but again I don't want to alarm anyone here because as was said in this report it requires significant computing power to exploit and there isn't a number put to this but from my knowledge it would require I

think hundreds of millions of dollars to exploit this in terms of computing power in order to basically just slash you don't get anything out of this as an attacker you aren't able to access the funds you're able to do a slashing event but to profit from that I mean you could I guess like short eth on the market and hope eth goes down but then essentially uh that that there's also a huge risk because you can't do that on any centralized exchanges because it's going to be quite obvious if you're some large actor being like well I'm just going to put a massive short on eth just before this exploit happens right like you you know on on a centralized exchange your kyc so your identity is already known you can do it on chain as well right but then I I I I I think that the the I

guess like the PRI taking that bet that the price is going to move based on this exploit based on the fact that you were able to slash someone or slash some I guess like some big staking operation it just doesn't seem worth the risk yeah there are way better ways to make money if you've already got a lot of money than trying to do this kind of exploit now obviously that's for a um economically incentivized actor that's not for like a nation state wanting to screw with ethereum here but as I said they need access to your key store files so I assume all the professional not operators out there were I guess like safely storing their key store files where it can't be just accessed remotely or anything like that or it can't be accessed easily uh but for I guess like solo and home home operators definitely

something to I guess like check on check where your key store files are check that you haven't kind of haven't kind of like leaked them out or there's you know check if maybe they they got stolen or not but if you are like a solo Staker with even like 10 validators again it costs so much to do this exploit in order to I don't know what slash you like it it just doesn't seem feasible right it's just like the edgiest of edge cases when it comes to actually exporting this but I don't want to diminish the fact that this is obviously um you know an issue it is something that affects pretty much everyone that used the staking deposit CLI which was known as the eth2 deposit CLI as well as the E Staker deposit CLI and the wagu key gen um s wagu keyen tool I should

say here if you used your those tools to to to generate your keyst files then you are I guess like at risk but as I said the risk is so small that you're more likely to just get fished randomly on chain like way more likely probably 100 times more likely to do that than you are to to lose anything here but there is remediation essentially the I mean it's it's remediation but it's kind of annoying the remediation is to regenerate the key store files with the fixed um the fixed tools here with the the bug patched so you can regenerate the key store files and which would require you to essentially go through a whole proc process to do it and make sure you're securing those key store files but you can do that um and uh there essentially is um a bunch of guides for this if you want to do that

as well but you can go uh read this uh I guess like report here I'll link it in the uh the Youtube description below uh but yeah as I said nothing to be kind of too concerned about I guess uh I guess honestly I wouldn't even concern myself with I'm not concerned about this like I gen I'm affected by this like as a solo Staker I'm not concerned about this like I don't think anyone's going to spend hundreds of millions of dollars just to slash my validators it's like okay cool bro and also that as I said they have to still get access to my key store files to begin with so it's it's just like a huge kind of effort for very little if any gain so yeah I don't think it's a huge issue there but enough of me rancing about that I just wanted to make

it clear that you shouldn't you know I guess I have a heart attack over this you shouldn't stress over this if you do want to make sure that you're fully not affected by this you can regenerate your key store files you can do that as I said there's a bunch of guides out there to do that uh and yeah it's been patched as far as I know uh from here all right last up so this episode's gone a bit longer but this is something that I really feel is uh I guess appropriate to talk about at this point in time so on the last episode IAL I talked about the fact that the Market's getting real heated it feels like the last phase of the bull market you know basically the parabolic phase of the bull market and it's really easy to lose your head in

this phase now Lucid eyes on The Daily grade Discord Channel today asked me to essentially give some tips on how to keep your mental health in check during this period period of time because I'm sure like Lucid eyes many of you are currently fully locked in and plugged in and it's probably taking a toll on your mental health because there's so much going on right like prices are going up every day you feel like you're missing out if you're not in a particular coin you're fooing over the latest stuff happening on chain there's so many chats popping off you know so many people talking about crypto it it's absolutely crazy and I I fully understand that because I've been through that many times before in terms of tips on how to maintain your mental health during this period of time um it's difficult it's very difficult and it's completely

dependent on who you are as an individual and what kind of like sacrifices you want to make in order to achieve I guess like good mental health because you have to make a choice you either accept the fact that your mental health is going to be shitty for a little while you know maybe for the rest of the the bull market but due to that sacrifice you may be able to take advantage of more opportunities in order to make more money right like that's just the the I guess like the the black and white event but then the other side is well you could sacrifice potentially getting those opportunities by prioritizing your mental health by not being fully Locked In by only being online for a couple hours a day and then doing other stuff uh other than crypto as I said like that means that you're

probably going to miss out on opportunities to to to make money so there are sacrifices on either end of the spectrum here but just generally if I'm looking back on how I've handled it in the past like my I I would say like my my most craziest cycle was last cycle I've been around since 2013 but the craziest cycle for me was definitely the period of I would probably say like June 2020 to the end of 2021 so like basically the whole bull market from the start of defi summer to the the second top that we had there that was definitely the craziest period ever in crypto for me and one of the craziest periods in my life my mental health was definitely completely wrecked by the end of that to the point where I don't want to get into it because it's it's it's uh

getting too much information if I get into exactly what happened in my life but to the point where like I I I wasn't doing too well for a while there I'll just put I'll just put it like that I wasn't doing too well at all I um basically shut everyone out of my life uh for for a long period of time there and I almost killed some of my longstanding relationships with people because of it now I directly attributed that to the fact that I didn't take care of my mental health during that 18-month period And I basically uh had a meltdown essentially and it all hit me at once and it was a pretty dark period I I think to get through um it was weird uh and it was something that I had to work through and and luckily I made I made my

you know I made it through it I know there's some people that haven't made it through it uh that in a similar position to me and they have just been like stuck in this this hole but thankfully I was able to get get out of it and that's the end result right as I said like there are sacrifices to be made yeah you can make more money like I definitely made more money by sacrificing my mental health if I wasn't paying attention during those 18 months I would have missed so much right and like and honestly like I can't even say that I regret doing it considering how much it changed my life but again like I'm I consider myself lucky that I was able to essentially get out of the rout that I was in but also be you know very conscious of it as well but I'm still

not in a good place or I mean okay I'm not a good place I still not in a perfect place I still have issues I need to work through as I said the the other day like my physical health has taken a toll because I've just like fallen off the the the fitness B the fitness wagon if you will and I've been I've been struggling to get back onto it so there's a lot of things going on in my life there so I don't really have like concrete tips for for um for you besides basically managing your your time managing your exposure to it because as as I said like when I took my I said this on the ref before but in May of this year you guys know before the EF was approved I took like a 2 and 1 half week cold turkey break from crypto that

was amazing for my mental health like that was some of the best things I ever did for my mental health I felt like a a pure cleanse of my mind I wasn't worrying about all this crypto related stuff I wasn't constantly online I wasn't even on a computer that much because because of the fact I didn't have much crypto stuff to do I literally was bored on my computer like I I could play games and stuff like that but honestly I wasn't even in the mood to do that most of my time was spent riding my bike I did a lot of that during that time I went out and saw friends more I spent more time with my fi I did like a lot of stuff that was uh completely offline I guess you could say right not on a computer and I Fel felt a lot

better now obviously that's not a sustainable way to do it you I I'm not just going to leave crypto all together to solve all my you know all my issues but the way to do it is just to find that that balance and in a bull market that balance is extremely hard to find because as I said if you try to balance in a bull market you are definitely definitely 100% guaranteed to miss out on opportunities but you also definitely 100% guaranteed to have better better mental health because of it so it's up to you what you want to do you know this bull market May last six more months May last 12 more months it's probably not going to last longer than that like 12 months would be the absolute Max from here and even that's like pushing it out I personally don't think it's going to

last that long but hey let's just say worst case scenario in terms of like sacrificing mental health you have to do it for another 12 months do you think that's worth it do you think that that sacrificing uh your good mental state your good mental health that deteriorating over time because you're just so locked in all the time you're ignoring relationships in your life you're ignoring personal responsibilities you're ignoring your you ignoring the nagging sensation because I'm sure a lot of you feel the same thing I feel where you just get nagged at constantly by yourself it's like you should stop doing this you feel like why are you doing this like you know this is bad for you but you just ignore that voice and you keep doing it because the other vo is in your ear being like no you need to lock in

because there's money to be made there's so much opportunity right now and that's the issue it's like you're stuck in two different places where each one has its own pros and cons and you have to basically balance that but balancing it also has its pros and cons so as I said like I don't I don't actually have good advice here because I personally have gone through this and I personally know the what what the trade-offs are here and as I said I don't even regret doing that the first time because I know that my life would be very different if I bounced I guess my crypto exposure during the meat of the bull market I would have not made anywhere near as much money as I made not just the money either I would not have grown grown As I Grew the daily guay was actually born

during that time mid 2020 I started writing the daily gay newsletter late 2020 I started doing the daily gay YouTube channel the daily way could have never been a thing maybe if I was more balanced there so as you can see like for me in my my personal circumstance what I consider myself very lucky and you shouldn't think that I'm the norm or that your situation is going to mirror mine but in my personal circumstance I don't regret it but you might regret it in 12 months time or it might even take longer than that maybe the bull market ends in 6 months and then it takes 12 months for it to set in let's just say in 18 months time you just really feel those effects on you it's like a delayed kind of feeling but you feel it and you think to yourself

wow that actually wasn't worth it because of such and such reason or so so and so reason so yeah I I unfortunately don't have good advice other than you need to make the decision yourself you need to basically understand how you are as a person understand your mental state understand uh uh the fact that it's not like a forever thing if you do want to lock in totally it's not a forever thing but you need to realize that even if you feel fine after like the bull Market's over and you you stop paying as much attention and you're not as locked in like I'm not going to guarantee this is going to happen but there is a good chance that later on it's going to hit you and it's going to hit you hard and it's not going to be pretty like I know from experience it's not pretty so yeah

anyway but also uh there's this uh tweet thread that I spoke about the other day that I wanted to just highlight again my Pro tips for the bull market my six Pro tips here that you guys should definitely follow basically uh it covers some of this but I've seen the number one thing that I've seen a lot of you guys doing is talking about the fact that why is this coin pumping but my coin isn't I think I said this the other day but this is just what happens in Bull markets money rotates through constantly there'll be coins pumping like crazy one week then they'll be dead the next week and there'll be newer coins pumping like crazy and then that's basically how the bull market goes and then it it's basically keeps going like that for a little while and then it just hits a wall and stops and then we get

like a massive dump and the bull market ends essentially that's just the way it always works it's probably the way it's going to work for a long time in crypto but yeah I wouldn't I wouldn't Fred about that but anyway you can go give this thread a read uh I'll link it in the YouTube description below um but yeah as I said like I I don't have any good tips other than the fact that the usual normal tips of if you want to take care of your mental health you know meditation being more mindful about things strengthening real life relationships with people that you care about exercising is absolutely massive of course getting more fresh air doing newer things in life but all of that all of that requires sacrificing time that you spend in crypto and if you spend it all in crypto during the bull market

like full-time I'm talking like every day like from when you wake up to when you go to bed that's all you're doing you will most likely make more money and have access to more opportunities but you will also sacrifice the other stuff that I just talked about not just your mental health but you'll sacrifice personal relationships to do it you'll sacrifice your physical health as well like all that sorts of stuff so you have to just decide on what you are comfortable with at this point in your life you could try and find a balance but then you have to be comfortable with the fact that that balance also has its um has its cons right it's not just all Pros I mean life is a balance right that that's kind of I guess the uh the the the core premise of Buddhism right like

trying to find balance in life um or at least one of the core premises or or core properties there uh but anyway I've rented on for for too long here W 45 minutes anyway I'm going to end the there for today so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subcribe to news L join the Discord Channel and I'll catch you all next time thanks everyone