Why ETH is valuable, EIP-1559 call summary and more - The Daily Gwei Refuel #67 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily way refuel where i recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the first of march 2021 all right everyone brand new a month ahead of us so today i'll be going over the kind of news from the weekend uh friday saturday and sunday it was a fair bit that happened so we can get right into it but before i did that i guess you know a bit of comments on the price action right it seems that we had a bit of a bit of craziness over the weekend right i think eighth dropped down to almost thirteen hundred dollars you know bitcoin was about 43k or something like that it's pretty brutal it was definitely not fun but i posted this kind of um chart to twitter i don't usually post

charts on there but basically what this shows is bitcoin's last cycle so it's last market cycle from 2014 i think well kind of like its last all-time high um when it went to about 200 which was end of 2013 um up until you know i guess the beginning of 2017 when it broke through its its all-time high with kind of conviction there and you can kind of see on the on the right hand side we have eth from its last all-time high which was uh obviously in the beginning of 2018 when it went to 1400 to kind of today when it's just broken out and kind of gone up but then came back down and and kind of i drawn i've drawn some lines here and it's kind of showing that these patterns look very similar right

i'm not you know much of a chart guy i don't really do any technical analysis or stuff like that i don't actively trade but i do like zooming out and looking at the kind of macro picture now i've been a firm believer in the thesis that eth in terms of its market cycle was just repeating bitcoin's kind of last market cycle and it seems that that's kind of what's happening here um and then you know it lines up pretty well because i guess this was posted uh about 24 hours ago now and since then we've kind of bounced off that line that i drew on 8th and we're back up to over 1500 which is exactly what happened i guess on you know on the left-hand side chart there and these are weekly charts so kind of gives you a nice little little picture there but yeah i just thought

this was very interesting and i also thought it was interesting to compare the two in terms of uh the bear market they look pretty similar right except like the the bear market this time i guess at the beginning of 2020 eve had uh was part of the the black swan covered kind of dump but you see it was trending up before that so if we didn't have the black swan kind of cobra dump i think we would have just kept trending up and it would have looked even more similar to the chart on the left for btc so yeah i guess that's just something to keep in mind i'm not going to say that you know this is going to play out exactly as it is or whatever but the market generally on a long enough time frame especially within crypto seems to play out like this i think it's got a lot to

do with kind of the network effects of these kind of things right because if you think about it bitcoin is prop i think it's double ethereum's age so you know bitcoin came out in 2019 i guess you can say 2010 was really when you know people started getting at least a little bit interested in it 2019 2019 was very bare bones so if you say 2010 you know that means bitcoin's been out for 10 11 years right ethereum's been out since 2015 so about five six years there so you know if we take that into account then really if ethereum keeps growing like bitcoin did in terms of awareness in terms of like new addresses on the network in terms of like usage which has already surpassed bitcoin um and in terms of like people buying eth right i think we're gonna see that

play out and you know it's just a bonus that the prices are pretty much like very similar as well if you know the unit prices at least the market caps obviously are wildly different but the unit prices are very similar too so that plays into this narrative which i thought was pretty pretty interesting but yeah we'll see how it goes from here maybe we do kind of like trend up really quickly from here like btc did at the beginning of 2017 there i don't know usually march during a bull market's pretty good for eth um you know i don't know if we're gonna have like a really bad march like we did last year because last year was a black swan as i said um and where you know kind of like everything dumped at once worldwide it wasn't just crypto it was like stocks and you know bonds

and everything like the equities like everything um and on top of that i think uh as i said like march is really good for ethan for other coins not particularly good for btc i think btc kind of goes sideways or trends down a little bit usually in march but we'll have to see have to see how it plays out you know fresh month we'll have to see over the next kind of 30 or so days how we go from here speaking of march i put out this tweet uh i guess a couple days ago saying i have a feeling that march is going to be a very good month for ethereum and eth and then i followed it up with the reasons why now i dived a bit deeper into this uh in the delegate newsletter today but basically i'll go over what i said

so basically the first point is that optimism is going live so as i explained on last week's refuel optimism announced that optimus their optimistic ethereum network uh which is a layer two scaling network is going live on ethereum mainnet in march i think mid-march um from what i've seen as well and i think this is going to help a lot with the quote-unquote ethereum can't scale narrative right because that's been very prevalent over the last few months especially with the high gas fees and everything like that and people are acting like the high gas fees are something that's going to be around forever which is just bizarre to me you know people saying you know how can eth you know continue growing and when the fees are high it can't scale blah blah and they're just completely ignoring the fact that we are working on solutions

for this so i think you know optimistic ethereum going live is going to help with that there are other scaling solutions as well going live um you know obviously i'm an advisor to to polygon which used to be called manic uh they're doing a lot of good stuff they're getting a lot more kind of um apps on their platform as well and things like that and they're building more technology there there's other solutions like i think immutable x from immutable is launching soon i'm not sure exactly when but pretty soon i think which is going to be really cool as well on the kind of price side you know 8th consolidating around its old all-time high price is actually pretty bullish right setting a nice little floor there um you know above 1400 and then continuing up from there after testing it is you know based on

the technical indicators based on kind of market action is pretty bullish uh this month we're going to have heart forks for the berlin sorry we're going to have test nets for the berlin hard fork and then hopefully the berlin hard fork in april which is the next ethereum network upgrade and then we will most likely get the all clear for eip1559 to be included in the london hard fork which is scheduled for july now there was the ip1559 community call that happened on friday that i will go over at the end of the episode i've got it scheduled for them because it's going to be a bit of a lengthy discussion there um but yeah these are all very bullish catalysts in march kind of bleeding into april and obviously you know one five five nine going live in july is going to be huge

so and this isn't even to mention like all the other stuff happening right the nft craziness bringing all these new people in you know d5 apps going live seemingly every day now you know up major upgrades coming to different d5 apps d5 apps getting on layer 2 so they can scale better i mean there's so much to be bullish about right now with ethereum in general that this price action i mean i saw it i'm like you know it's normal for ether fall you know or or eth or btc to four like 35 percent during bull markets that's completely normal um you know bts did it many times in 2017. you know eighth at one point felt 70 percent from 420 to like 120 so completely normal to see these kind of things i know people get scared because it's like you know was that it

is the bull market over i've been saying obviously for the past you know week since the crash happened that i don't think the bull market's over and it's nice to see a bit of a recovery happening right now but yeah it's always hard to tell with the price but i think you know it's always good to look at the fundamentals step away from the charts listen to some podcasts what really helps me actually is listening to podcasts because they're very positive right you get to hear from the builders and you get really excited about things i mean the other day i told you guys that i was listening to the the scaling podcast on the bankless uh on the bankless podcast uh the one with um synthetics loop ring and immutable and you know that was just getting me really really bullish and this was

during the massive crash when it was coming down from 2000 and it was like at 1500 again and i was like ah like what you know it was kind of like i mean you know crappy to see that happen right but then you step away and you remember why you're so bullish based on the fundamentals not based on like the day-to-day price movements so always good to keep that in mind as well but yeah march is shaping up to be a really really awesome month for ethereum i think speaking of its value i did want to talk about this tweet that i put out about its value accrual pillars now i think i've spoken about it on the refuel before but basically eth has these three main value accrual pillars uh the first one being staking in eth2 which will just be called ethereum eventually of course so

i guess just staking ether in general right there's currently 3.3 million each steak which is about five billion dollars i think at current prices maybe a bit less than that um and that's earning an eighth denominated return right i think demand for staking is just going to be persistent i think we're always going to have millions of each staked i think it's going to settle around a certain amount because of the apy that gets paid i don't think that will get that that might get like to a point where it's too low for people to kind of stake but there'll always be like this perpetual kind of like eat steak and then the existing stakers are probably just going to restake or just take the eighth and use it as collateral and d5 which brings me to my second point that eth is trustless collateral indeed phi

it is you know highly liquid collateral right it is accepted everywhere as cloud rule it is completely decentralized because it's the native token of the ethereum network um and you don't have to trust anyone like you know there's a lot of custodial kind of collateral solutions like wbtc where you have to trust that they're not going to freeze your wbtc right with ether you don't have to trust anyone and there's currently 8.4 million ether locked in d5 right now a lot of it's in maker right supporting a lot of die which is really cool i think that's just going to keep growing you know the fact that we already have 8.4 million in there is really really bullish that's like i think how much of a supply is that i think it's like five or six percent of the total supply or something like that

so it's a lot right and then the third bit here for its uh for its value accrual pillars is it that it's used to pay fees on the network and this is going to be constant demand forever as long as the ethereum network is used eth will be used to pay fees and this of course is supercharged with eip1559 not only because of the fee burning but also because it cements eth as the only token that can be used to pay the base fee right because the the the um erp 1559 comes with the base fee and the tip and as i've explained on the refuel before right now miners can actually go completely um around this and then just like put whatever transactions they wanted to blocks and accept transaction fees out of bound so i can go to a minor or a mining pool and kind

of say hey can you put this transaction in instead of paying you you know 10 bucks in each i'm going to pay you 10 bucks in usdc and if they take that then they completely bypass the need to pay eth for fees right now obviously the coordination efforts and everything like this means that this probably wouldn't take off in a big way but what 1559 does with the base fees it basically cements that the base fee always has to be paid in eighth which is then burned so that's a kind of a double whammy there for its value accrual and the reason why these are valuable cruel pillars is because staking brings demand for eth right because people want to stake their eat to get more eath using it as trusts collateral on d5 is obviously a huge use case because you want to be able to

to put up collateral borrow stable coins do yield farming you know whatever and then use the pay fees of course everyone has to have eight to pay fees at the end of the day even if it's abstracted away where the person themselves doesn't have to have eighth the app that's abstracting it away has to have eight and eight will have to be paid somewhere so even if you know you're not buying eight to pay fees yourself because you're able to pay in another token it will have to be paid somewhere and that's you know especially true with one five five nine now on top of these value accrual pillars ether is also used as a story of value right there are many many people who are holding eth not just beholding it in cold storage doing nothing with it because they believe having exposure to

just the asset itself will give them exposure to the growth of the network which is proving to be very true i mean you know eth has gone 15 times in the last kind of year right that's just an incredible amount of appreciation it's beaten bitcoin it's i think it's doubled bitcoin's appreciation in terms of like return there so that's really really great to see there on top of that it's providing security to ethereum not only with proof of stake but also with proof of work without eve being valuable right um we wouldn't have as many kind of like miners on the network right and we wouldn't have as much hash rate we wouldn't have as many people staking all this kind of good stuff and it's powering the nft economy as money which i think is an underrated use case here because nfts are all priced in eighth for now i

mean maybe this changes in the future i kind of expect it will because pricing things in ether is not really i guess friendly because of the fluctuations in its price but we'll have to see we'll have to see what happens there but in general eighth is being used as money regardless of if in the nft economy or anywhere else it is being used as as money so yeah i think these kind of things are good to keep in mind as well when you see these day-to-day price movements and also on top of that i mean justin drake put out a really cool tweet i just before where he's got this meme that ethies ultrasound money because it potentially will have a decreasing supply due to erp-1559 which i actually really like and if you see here he's kind of got a nice little chart here that shows that

there's like an ultrasound barrier where uh fee burn would exceed proof-of-stake inflation or proof-of-stake issuance uh the assumption here is that 20 million each is staked and there is 70 percent of a fee burn now we only have 3.3 million if staked so the inflation in pods is much lower than it would be at 20 million uh and we don't have like uh eip1559 yet so there's no fee burn but this is showing what the potential is and he's got like ultra mark one and ultra mark ii here which i thought was pretty funny but basically based on the fees being paid today we're potentially already at a point where eath will become deflationary net deflationary right after paying out issuance in eth2 as well so i mean again looking all these fundamental things reminding yourself

about them reminding yourself about why you bought in the first place is always a good way to go about it and i mean i put a tweet out before saying that during these dumps right these really heavy dumps i kind of like think to myself like i remind myself about all these things and i'm like okay why am i buying more eth right now if i if i truly believe these things if i truly believe that these things are going to lead to its value accrual why am i not buying eighth and i do i go ahead and buy more with whatever money i can whether that's trading other tokens for each or whether that's using yield farming gains which i usually do right to buy more eth and i think that's just a good way to play it always remember reminding yourself about things but also

you know there is a risk there like for for example if either went to ten thousand dollars and then dumped down to seven thousand i'd probably be re you know realizing it then be like yes i'm bullish on on things right now but like is the market like super hot right have we just gone through like a massive bull market you know is this kind of like the top for a while and then you kind of have to reevaluate it there but in certain scenarios for me i still think is incredibly undervalued for what it is and how much utility it has right now as an asset um so yeah i mean i keep buying and i'm going to keep going for a while i mean i have a permanent eath bag that i'm going to keep that i just want to keep there on steak

with it and use it as collateral never want to kind of let go of it um and i think that's a really cool thing to strive for if you you know if you can do it obviously not everyone's in the same position you have to kind of think about your own position here um and obviously none of anything that i say here is investment advice but always good to keep yourself kind of on your toes about the fundamentals of things i think is really important so gas was really cheap over the weekend we had i think the far like fast i mean i've got this extension here um uh it's gone up a little bit since then and actually there's an extension from gasnow.org a new chrome extension that i thought was really cool um that shows you gas prices there's a few of these now which is really cool

but anyway um gas over the weekend dropped down to i think like the 60s for fast which is the lowest it's been in quite a while and then i put a kind of tweet out about it i mean here you go like it was 73 on fast but i think it dropped down to 60s i put a tweet out saying you know nature is healing for now and then things to do while gas is cheap i think it's always good to keep a list of things to do when gas is kind of like um you know under 100 at least and these things consist of getting on layer twos right because onboarding onto layer twos does cost gas on layer one and you know once you get on there you it's kind of like you know you're free to do whatever you want on there but getting on there can be

expensive harvesting any of the yields that you've been waiting to harvest always a good thing to do swapping some of your i said coins here for eighth what i meant by that was basically just anything in your portfolio that you've been wanting to get rid of that is like just a couple hundred dollars or something right uh and that like sometimes doesn't make sense to trade because of the the transaction fees um you know this is a good time to do it as well and you can check all the balances using zapify i mean i love using zappify to find things i didn't even know existed in some of my addresses and most importantly i think is revoking contract approval so for those who don't know what this is um there are multiple tools to do this but basically um you can search your address here in your search box

and on the other tools and it'll show you all the contracts that you've approved to spend your assets now the reason why you want to revoke uh the contracts from especially ones that you don't use anymore is because a lot of them do what's called infinite approval now what this means is that if you've approved the transaction to spend your usdc for example right and you're giving them the infinite ability to spend sorry you've been given them the ability to spend infinite amount of your usdc say you have 10 000 usdc in your wallet right and then you've given them the the kind of approval to spend this if the contract it becomes malicious or if it was malicious they could withdraw 10 000 usdc from your address without your approval because you've already given them approval right so that's scary and and you know that's why

you always have to be on top of these things and i think they're trying to work like the um eighth core developers are working on a way to kind of get rid of this this flow here because it's not very friendly and there are d5 teams that are working uh that have options to just do single approves where i mean i think one inch and curve have this where you just approve the amount that you're using as part of your transaction you don't do infinite approve but you know we all went through d5 summer right we all foamed into stuff and a lot of that stuff turned out turned out to be scams so it's always good to just go through the contracts that you've approved and just and kind of unapprove them which obviously cost gas to do that's why i say it's good to

do while gas is cheap right so yeah there's just a list of things to do you've probably got things that you want to do as well that are too expensive normally definitely just get a list ready and then when you see gas is cheap just just go for it i think and on the note of gas being cheap there was a bit of fearing uh theory theories going on over the weekend about why so vitalik actually proposed um uh something to the ethereum github to remove the gas refund tied to the self-destruct method on ethereum in the london upgrade now in normal people terms what this means is that vitalik basically said we should remove the ability to mint gas tokens now for those who don't know what gas tokens are they basically allow you to kind of mint think like mint gas i guess at a cheaper

price uh i i if that's probably maybe the best way to explain it um and then you can kind of like use it when it's more expensive so say you meet the gas token at like 70 gr 70 right you can use that gas at like 100 grain it's like you're spending it on 70 grain now this actually if you think about it this actually is not really great right from multiple perspectives one it increases state bloat because to do this you have to kind of like destroy a contract to get like a gas refund on the network so that's not good but secondly you can imagine that as soon as gas gets cheap enough people have an incentive to mint these tokens because they're worth real money right so if gas gets to 70 all these people come in and mint these tokens it

pushes the gas price up right so by removing it we might we may remove the kind of incentive to do that uh but we will remove the incentive to do that and we're already seeing it play out where uh the gas token price is actually dumped just on this proposal it hasn't gone through yet but i think it's quite a popular proposal among the researchers and we'll have to kind of see how that goes but the gas tokens dumped in price by about 30 or 40 percent i think um and the gas prices have been quite low but i did some analysis on this asked a few people apparently uh the gas prices are also low because a lot of the bot activity has calmed down lately uh you know how i was spoken about the arbitrage bot activity and things like that and i also think

there's not much leverage in the system right now or at least risky leverage so people aren't like scared and and kind of trying to cover their positions whenever there's some market volatility right now uh so yeah enjoy the low gas while it lasts i don't know if it's gonna it's gonna last like this uh for very much longer but nick chong here had a really great thread which i'll link in the youtube youtube description about this removal of the gas refund uh the technical details the kind of how it works you know all that sort of stuff so definitely go give this a read if you want the full details so dc investor had a really great thread over the weekend where he went through kind of like the different ethereum l2s to watch coming in march and april he said the top two are obviously

optimistic ethereum and immutable x but there's a bunch of other ones down here as well that are already out i guess um and and kind of live he mentions like loot bring diversify you know polygon all that sort of stuff and and starkware there was a bunch of different discussions in the comments as well so actually go i actually highly recommend going and reading this um and reading through kind of like the comments as well because you'll learn a lot from this thread i think it's it's a really great way to kind of just get a quick overview of the layer 2 ecosystem right now on ethereum and to get up to speed on it so yeah kudos to dc for putting this thread out there so you know a bit of fun over the weekend actually you might have sawn that i uh you know you might have seen sorry

that i uh on twitter was kind of like i guess bashing cardano a little bit and i don't mean to pick on you know cardano specifically i just i i think this is like an easy target for me but antipers has had a really great great tweet here where he basically kind of like said this is what eath fudd was like in 1995 and he goes on to say and i quote the internet is too complicated and the many websites being built could contain bugs and scammed we much we must stick to gopher and then he says dial-up internet is too slow and expensive although broadband is coming we should invest in another dial-up internet without users and this is what it would be like to hear like eat fight in 1995 right and i've used this example in the past where i said that ethereum today is at

like the dial-up stage or maybe even the 56k modem stage where you know it's very slow not like not many people can access it because it's expensive it's not really rolled out in any big way yet right it has some network effects but i think you know with layer 2 coming with eth2 coming that's our like broadband moment right that's our fiber internet moment that's when we get like this mass kind of network effects going and i think it's short-sighted to say stuff like you know ethereum can't scale ethereum's dead ethereum's like uh not gonna make it and stuff like this and actually this is why i was picking on the cardano kind of community is because like they were just coming at me with all these weird kind of talking points saying you know cardano is going to be you're going to be ethereum for this this and this and

then having a go at me saying you know i'm a toxic ethmaxy for calling that out when it's just it was just so hypocritical to me i was like what like you guys are saying that is crap it's gonna die it can't scale and then you're having a goal on me because i'm just hitting back and saying you know cardano doesn't have smart contracts and and it's overvalued whatever i mean it's just it's just funny when i see this playing out so i mean this kind of like fighting in drama is so like useless i don't even know why i get it caught up in it sometimes but i think it's important to educate people as well and to kind of like get the conversation started on these things because so many of them uh these other layer ones are so so overvalued for what they are

and i just because it's a bull market i think that's the case but in general i just like think that just because you made money on a token right doesn't mean that the platform is good that applies to everything um you know including you know i guess like even to some extent bitcoin and ethereum right but it it applies to like all these kind of what i like to call promise projects right not just layer one chains but like projects in general they have all the promises in the world they're always talking about stuffs coming right stuff's coming here stops coming down they're promising all these things and they kind of never deliver anything right and then when they do deliver the problem is is that they actually don't want to deliver on purpose because if you think about it i've spoken about it before

the whole space runs on narratives so if you have the narrative that you know your chain is going to kill ethereum and when it delivers x y and z and then you deliver x y and z and nothing happens then that's not good because people will see the emperor has no clothes they're like oh wow you said that was going to kill ethereum as soon as this came along and you know you released all this stuff and ethereum is growing and growing and and we're doing nothing right so i think the narrative the story is much more powerful than the reality and that goes for things in ethereum too i mean there's plenty of defy apps that hype up things all the time right you know ethereum suffered from this in 2017 where the narrative was very strong that eth2 was like just around the corner in 2017

and if you kind of like were in the weeds you knew if you wasn't around the corner but the narrative was strong and it's very hard to kind of break through um a strong narrative and it takes i think like markets going through a bear market to break through it but that happened then and i'm seeing the same thing happen now where all these kind of like promise projects promising the world because it's a bull market you know they're getting caught up in the hype you know the price are going up they're they think they're invincible and then eventually when we have another down market you know this stuff's going to get washed out people are going to see that you know this was all just like a massive mass hysteria basically so i think always good to keep that in mind um it's going to be interesting i mean

it's always very interesting to see the psychology of this place uh of the space kind of play out uh especially among new entrants because i mean we all started off as noobs right i mean my first foray into crypto was 2013 when i first got into bitcoin i fell for so many scams like i'll be honest like so many pump and dumps i mean i was very young as well i was in my early 20s um and then you know i got i kind of like left the space then and kind of like ignored it until i came back in 2017 in early 2017 discovered ethereum and all that but even in 2017 i was falling for some of the the kind of narratives where you know i participated in the polkadot ico in september of 2017 because i i believed that you know this

kind of like thing was gonna you know i believe all the stories that were time it's multi-chain world right polka dot's gonna be additive to ethereum blah blah all this sort of stuff and turns out you know polka dot you know is not additive to ethereum you know it's creators waged war on ethereum and one and wants to replace ethereum and also my biggest kind of um i guess miss in 2017 was a platform called aeon now this was hyped up beyond belief right you will not believe i mean i actually see parallels in the cardinal community today with what happened with aeon and i got caught up in it because i had a large bag of aeon and they had like this this program where they were paying you bonus tokens for locking up your tokens and all this sort of stuff and and they had a really good salesman in

their ceo and i actually think charles hoskinson is a really good salesman as well that's why you know cardinal is the way it is and again i'm not trying to pick on it but i think it's a perfect example but you know i've suffered from this with aeon and i actually said in december of 2017 basically the peak of the the bull market almost the peak i put out a post on on facebook back when i was using facebook and i said i i truly believe aeon is the next ethereum now you know obviously like that was just like so off-brand for me if you if you've just been following me over the last few months you know i would never say that about any of the other platforms today um but back then i was just new a noob right and then i stuck through the bear

market and i realized you know the truth behind all of this and all that all the crappy narratives so i think that's what has to happen for all the new entrants they have to experience their own down market because they're just caught up in the hysteria in the bull market gains and i feel that i sympathize with that but you know i went on a blocking spree because i just couldn't deal with the attacks i was getting attacked left right and center and i get that i kind of you know brought it upon myself a little bit by putting out some kind of like tweets where i provoked them i get that but at the same time i mean i don't have time to like wade through all the replies and all the attacks and i don't want my followers to kind of have to be exposed to that either so

yeah anyway i digress for now obviously you know i have a lot of a lot of comment on that but i think it's it's it's pretty important to talk about because of the fact that there's a lot of new people in the ecosystem so there are now over 100 000 active validators staking on eth2 and that's taking over three million eighth which is really really cool to see i mean you know this just speaks to i guess like how easy it is to run validators and how user-friendly it is and and and the decentralization of the network here now i've been through kind of like what the distribution of these validators looks like and i think the biggest whale is cracking with about 14 of the total validators so that's actually really good because the biggest whale on ethereum right now proof of stat proof of work mining

i think i think the two biggest actually owned like almost 50 in terms of the pools now pools don't equal kind of users so it's not that huge of a threat but it's still like less than ideal so to say that there's over a hundred thousand validators with only i think kraken owning the most at 14 or 15 or something like that i think binance is second like eight percent or something it seems very decentralized here and that's that's credit to i guess the researchers and the developers making it so that you can run these validators on very lightweight hardware which i thought was really really cool and like getting set up staking isn't actually that hard i've written a daily gray about it you can look up there's plenty of guides out there right now about how to do it on your own obviously the the barrier to

entry is now pretty high because it's a 32 minimum but as i've spoken about before right i mean there's going to be decentralized solutions coming out like rocket pool and things like that hopefully soon and then you know you can always stake on an exchange if you want obviously that doesn't happen help with decentralization but if you've only got like a few eth then i totally don't blame you for for wanting to stake um but not being able to do so because you don't have the minimum right so you can stake on a centralized exchange that's all that's all fine there but yeah really great achievement for the eth2 network here so alchemix i spoke about this protocol i think a couple of times over the last couple of weeks they officially went live so you can go to app.alcomix.phi um and then you can go on there and

basically put your stable coins in there um and yield farm essentially they're paying out their alcx token in um in yield farming uh right now there's like a pool two so you can put like a lc cx an ethan to sushi swap and earn kind of rewards there and you can also put your stable coins into their farms too to earn it and i think they hit like you know a couple hundred million dollars of tvl or something like that or with just die um and they're using urine vaults for this as well so they're kind of like feeding value into yern which i thought was really cool so definitely go check out check out the project i think it's really interesting and there's some really great apy right now um given that the token price went pretty nuts actually so definitely worth checking out so okay

this is the eip1559 section i'll go into hasu's blog post in a sec but basically on friday i think it was a couple of hours after the last refuel came out we had the eip1559 community call and this was a call to bring together i guess a bunch of stakeholders within the community right the community members developers uh you know core developers researchers and miners to discuss one five five nine really the heart of it was to just get miners concerns out in the open right and hear their arguments now i'm obviously i've obviously gone on about this like for the past couple weeks and about how you know i don't think miners have any kind of sway in one five five nine going in or not i think or what all their threats are bluffs i don't think anything bad is

going to happen and after watching this call i kind of just think that even more because i mean you can read this thread because tim put together a really great thread here of all the arguments but i watched the whole kind of thing and the tldr of the minor arguments was just that they were going to take a pay cut and they wanted to make up for that whether that be increasing the block rewards or kind of like getting rid of the fee burn both of those things are not going to happen i mean the community would not want that to happen at all um because that we don't need to we're already overpaying miners and they had arguments like you know the network's going to become less secure because the miners are going to lose i think like 30 or 40 percent of their revenue

um or their fee revenue and all this sort of stuff and you know it was just very unconvincing because there have been periods in time where miners have lost 90 of their revenue because of the bear market right um you know and they've been fined the network has not been attacked right the hash rate goes down as it should because the difficulty adjusts as more miners drop off because it becomes unprofitable and all this sort of stuff right um so from that perspective i don't think that that argument was sound where like cutting the rewards would increase the the the likelihood of an attack and things like that so that was basically i mean it's pretty obvious what their arguments were right they don't want to pay cut but at the end of the day the um ethereum network belongs to its users right belongs to

it's it's kind of like um it's builders it does not belong to miners i've argued this many times miners are service providers right and not all the miners on this call were against one five five nine there were two that were with it right um but in terms of i guess like uh the ethereum network itself as i've explained before miners are service providers they get paid for their service and that's it right the ethereum community and the ethereum developers and researchers and ecosystem kind of stakeholders all determine whether the ethereum kind of chain um gets an upgrade or not and this specific specific upgrade is i guess you could call it a monetary policy upgrade because um it does touch on i guess like burning fees so i guess like the

the um the issuance can kind of go down because of that but at the heart of it is a usability upgrade right that's going to bring much better usability to ethereum and for the get for the gas market and for fees in general it's not going to bring down fees but it's going to smoothen it out make the process a lot easier a lot better and ethereum's monetary policy basically um is minimum viable issuance or minimum necessary issuance that basically means that we will pay issuance as is necessary to secure the network and no more and if we think we are overpaying for that we will reduce the block reward or we will introduce other things like erp 1559 to make up for that and i don't think anyone that is not a miner can argue right now that we are not paying miners enough in

fees we are overpaying them in fees and it's about time that that fee revenue went back to the eth holders and the community and the ecosystem as a whole and that's what 1559 does with the with the burn mechanism but again the heart of one five five nine was always the usability upgrade which trumps minor concerns about a pay cut because i don't think it's gonna pose any threat to the network there's been modeling done here um you know much more deep research and modeling done on this and i don't think anything like that has come up before so yeah that was kind of the gist of it but definitely read the thread to get a more detailed overview here and i just wanted to quickly talk about a post that was published by by uh hasu and georgios before the call they were both on the

call and they publishes just before it and they basically um their blog post is called establishing bounds for minor revenue in one five five nine so they basically did a deep analysis on how much minor revenue would be cut by in one five five nine making a bunch of different kind of assumptions based on mev as well so basically i think that what they said is that at most uh i mean the range is 20 to 35 of fees will be burned so that's a 20 to 35 pay cut which is basically the numbers that i've been quoting for quite a while on the numbers that i've been seeing thrown around but it was good that this deeper analysis was done by by these two guys so yeah definitely go read this as well it'll be linked in the youtube description for you but i think that is it for today i've

gone over time so yes thank you again everyone for listening and watching you haven't done so be sure to subscribe to the channel give the video a thumbs up join the daily grade discord channel subscribe to the newsletter and i'll catch you all tomorrow thanks everyone