Social media has become a wild, untamed beast.

What if we could take back ownership? @AaveAave & @LensProtocol have the answer:

Lens Protocol is a blockchain-based open-source social graph designed to reshape social media concepts in the age of Web 3 and decentralization

It enables creators to own the connections between themselves and their communities, resulting in a fully user-owned social graph

Lens was introduced in early 2022 and received a lot of attention in the crypto community due to its social networking product and the well-known @AaveAave team developing it

Familiarity working in its favor!

The protocol seeks to address significant flaws in the current social media environment

It does this quite successfully by gradually gaining a base of dedicated users from a Web 3-ready community

How does Lens Protocol work?

When users make a profile, they're making a reusable NFT

This interactive NFT saves their content, comments, likes, and reposts

A wallet address is associated with their profile

Value for fans/creators:

- Users can receive a tradable NFT for being a loyal fan of someone's publication

- As a content creator, you can control who can view your publication

- Creators can charge others a fee to access certain content.

Lens Protocol relies heavily on modules (smart contracts with code that run under specific conditions)

Users can access modules to add custom functionality to features like Follow, Collect, and References

Here's how to get started:

• Create the Profile NFT
• Follow and Post anything
• Like what you see
• Create and Collect a publication
• Experience all the dApps

Some useful links if you want to join and experience Lens👇:

- Users need an NFT Profile which can be bought on @opensea using $USDC or $WETH on the Polygon Network
https://opensea.io/collection/lens-protocol-profiles

- Claim your handle and edit your profile
https://claim.lens.xyz/

There are two dApps you should check out building on Lens:

1. @lensterxyz - https://lenster.xyz/explore

2. @orbwagmi – social media platform where users have ownership - https://orb.ac/

What makes Lens unique?

NFTs and modularity

The protocol relies heavily on establishing user profiles as NFTs

As a system property, modularity refers to innovation, availability, and connectivity

The social graph of the Lens is open to all creators who want to propose and implement new features

Because of these mechanisms and the lack of a central actor controlling information, new social media networks can emerge while preserving free speech

Something invaluable

(I mean @elonmusk spent $44B trying to save free speech in Web 2)

Lens Protocol Risks:

- Because blockchains frequently have limited on-chain storage capacity, not all content and NFTs can be stored on this level and must be stored offchain

- The storage issue is inextricably linked to security concerns. Original files may be lost or damaged if not recorded on a blockchain

- There is also a risk of smart contracts and NFT maintenance because there are several scenarios in which hackers can attack networks

Will Lens Protocol have a token?

$LENS does not exist at the moment

But the protocol is compatible with wallets like MetaMask, Gnosis Safe, and Argent, allowing for interoperability

There are numerous areas to explore within the Lens ecosystem, including:

- Social media
- Creator monetization
- Curation
- Community tools
- Analytics
- Algorithms
- DAO tooling
- Developer tooling
- Identity
- Bridges
- Music
- Events
- Loyalty

Here's an overview of the Lens ecosystem done by @PolygonDaily:

https://twitter.com/PolygonDaily/status/1586751062903607296?s=20&t=BdtmddCNzQ4bNiuk4MKhjg

Future plans:

Lens is currently a multisig Web 3 platform, but the team intends to transform it into a DAO to give users a say in decisions

They would be able to vote on new features and modules that were proposed

A native token could be a future addition

Interested in experiencing Lens IRL?

On Dec 8, @dabit3 is hosting a Lens community event in Mexico City

They'll be giving an introduction to Lens, as well as a developer workshop, and all attendees will be able to claim a Lens handle

Get the latest news and research from M6 Labs directly in your inbox before Crypto Twitter!

Subscribe to our Substack for institutional quality content curated by a community of degens: https://www.m6labs.co/

You can read the unrolled version of this thread here: https://www.m6labs.co/p/lens-protocol-overview?sd=pf

Lens Protocol Overview

Sui recently announced no plans for an airdrop, but projects building on Sui are still game!

Here’s a Sui ecosystem airdrop guide (w/ a SPECIAL GIFT for airdrop hunters at the send)

🔎🔥👇

Sui Network is an L1 PoS blockchain with smart contract capabilities

The project is the effort of Mysten Labs, a company founded by ex-employees of Meta’s Libra project

Sui makes it easier for creators and developers to create experiences for the next billion Web 3 users

As a PoS chain, users can earn rewards for participating in its network.

Read our thread on Sui to learn Sui: https://twitter.com/M6Labs/status/1587306834305503232?s=20&t=s31FLtQ59jZY9-IV8971GA

Many people were hoping for an airdrop to get a portion of the probable success of SUI

However, the Sui team recently broke the news that there will not be an airdrop: https://twitter.com/SuiNetwork/status/1593346716857556992

While there are no plans for an airdrop from Sui, we can anticipate that some of the projects building on SUI will have an airdrop, allowing indirect exposure to Sui!

These airdrops are not verified, however, we included steps to best position you for eligibility

@KriyaDEX - fastest derivatives exchange on-chain, offering 20x leveraged perps and options!

Steps To Take🪜:

• Test by performing swaps and providing liquidity to increase chances of eligibility
• It would also be good to join their Discord

https://discord.gg/3K24T7MKJD

@OmniBTC = OmniSwap + OmniLending + OmniBridge

Steps To Take🪜:

• Using test dApp, initiate swaps and test the OmniBridge and the provision of LP tokens to increase chances of eligibility
• It would also be good to join their Discord

https://discord.com/invite/Z2EzZcJ72x

@SuiSwap_app - swaps platform on Sui, testnet hasn’t yet launched

Steps To Take🪜:

• As SuiSwap is still in early stages, the best step is to join their Discord and await opportunities

https://discord.com/invite/D3M5CpMEch

@joinMovEX is the first DEX on Sui

They recently announced their Concentrated Liquidity AMM going live

Steps To Take🪜:

• Using testnet, initiate swaps and provide liquidity
• It would also be good to join their Discord

https://discord.com/invite/U5BPsCFCRu

@BallastFi is a DeFi infrastructure initiative built on Sui

They recently announced how to obtain $BLT in the upcoming airdrop

Steps To Take🪜:
https://twitter.com/BallastFi/status/1597113615038918656?s=20&t=hRbGhIJWBhM23KbLFY6Z-A

The key to airdrop eligibility is often interaction with the project in the early development stages

Here are some projects for an NFT maxi/degen..

NFT collections:
@SuiBirds
@Sui_MB
@Babyapessociety
@theSuiPunks

NFT marketplace:
@BlueMoveNFT

Sui domain service:
@SuiNames

Sui is now in Testnet Wave 1, indicating how close we may be to seeing the full-scale launch of the Aptos competitor: https://twitter.com/SuiNetwork/status/1593334723551428608?s=20&t=43fB4Mem24UVXvmsN86EBQ

Alpha is achievable by being aware of potential airdrops coming up in the most anticipated ecosystems

For more updates on the Sui blockchain, you can follow the following:

@SuiAnalytics and @Sui_Station

Interested in airdrop hunting on other chains?

Check out @DefiLlama tool for hunting tokenless protocols that may airdrop: https://defillama.com/airdrops

Get the latest news and research from M6 Labs directly in your inbox before Crypto Twitter!

Subscribe to our Substack for institutional quality content curated by a community of degens:
https://www.m6labs.co/

Sui ecosystem airdrop guide

FTX/Alameda Collapse for Dummies: Crypto's Tower Moment

Family & friends asking about the #FTX collapse? Share this simplified breakdown of events with them

Bookmark this Tweet, we will update this thread as events unfold!

🧵👇

The main characters:

• @SBF_FTX (SBF): founder of @FTX_Official, a self-proclaimed  'effective altruist'  who has been active with creating DeFi regulation in the US

• @cz_binance (CZ), founder and CEO of @binance, the largest crypto exchange in the world

It all started when the balance sheet of FTX's sister-company Alameda Research (@AlamedaResearch) was leaked

(Alameda is a trading company mostly owned by SBF)

It is speculated that most of the SBF empire revenue comes from Alameda

The leaked balance sheet looked really bad

Mainly due to the fact that over $2B of Alameda's borrower collateral is denominated in $FTT, a token that FTX launched to raise funds for itself

https://twitter.com/DylanLeClair_/status/1587890966580658177?s=20&t=HFOamWaPCxHY68m53VpQeA

This token is quite illiquid - so when Alameda becomes insolvent, borrowers won't be able to sell the token to recollect debts

This may cause (actually already caused) a domino effect that brings down FTX

CZ was actually an early-stage investor in FTX

The exchange eventually became #2 in the world

After the leak of the balance sheet, CZ made the public decision to sell all of his FTT tokens

This triggered a series of events
https://twitter.com/cz_binance/status/1589283421704290306?s=20&t=4P9Sxj0JhrwONCDo8gvArg

The uncertainty around FTX after CZ's announcement sent customers running to withdraw

As of right now clients are having problems getting funds off the exchange

Just to have a clue about the scale of this:
https://twitter.com/lookonchain/status/1589941317660217344?s=20&t=T5YR_zGAwA2JB8ovldYjyQ

Over the past week, FTX has seen more than $8.7B in withdrawals compared to $7.7B in deposits

Shortly after, @cz_binance announced that he's looking into the full acquisition of FTX

People started speculating that it was his plan all along...
https://twitter.com/cz_binance/status/1590013613586411520?s=20&t=IjvAnKjUlU8-D0W1wM6rrw

Later, he reiterated by posting this:
https://twitter.com/cz_binance/status/1590351182513729544?s=20&t=n0d3kwfgAdsCzggYhFiscQ

The next day, @binance backed out from the deal stating the following: “The issues are beyond our control or ability to help”
https://twitter.com/binance/status/1590449161069268992?s=20&t=4gkI-97_nunMZEGWB7sefA

Many say that CZ's role in this was minimal as it all started to unfold a while back:
https://twitter.com/CryptooIndia/status/1590055853314318336?s=20&t=L2EAE0ifFiVs9VgYywuwiQ

@Reuters wrote a good article on how Alameda used consumer funds to bail themselves out in May:

https://www.reuters.com/technology/exclusive-behind-ftxs-fall-battling-billionaires-failed-bid-save-crypto-2022-11-10/

Global regulatory backlash is inevitable at this point.

FTX collapsing is a global catastrophe for crypto. This is BIGGER than Terra and Celsius combined.

Sam was one of the faces of this whole industry.

Although most people forget the following fact:
https://twitter.com/jchervinsky/status/1590894256394498049?s=20&t=BnQWY5nEILPLI3fzvKWvCg

A larger shift of the crypto-community from CEXes to DEXes is absolutely crucial for this space to survive
https://twitter.com/ShapeShift/status/1590861631877095426?s=20&t=hIstbk7qUvYeSK34PXKDTw

To be continued...

Bookmark this thread, we will update it as events unfold!

FTX/Alameda Collapse for Dummies: Crypto's Tower Moment

💊 Daily Bullets 💊

Tuesday, November 8th

The drama continues! The FTX/FTT/Binance saga rages and the crypto markets swing in tandem.

FTX halting withdrawals, cries of insolvency, rumors and speculation - Not Great!

The surprise revelation: Binance is now set to acquire FTX…

This is surprising as FTX was making such large moves and acquisitions, it didn’t seem likely they were in such financial straits. Earlier, FTT and SOL were in the crosshairs.

The theory was that Alameda might try to dump its SOL, Alameda's second-largest holding, and Solana ecosystem tokens in order to raise liquidity. How deep does their liquidity crunch go?

Now everything is up in the air while we wait for the results of their due diligence and more details to emerge. Things should ultimately blow over but it still highlights concerns... What will this mean for the crypto industry?

It started as Twitter drama and now we’re here, markets in shambles and crazy volatility.

Real life is more interesting than any movie..

This post is just a small excerpt. To catch the full version of today's alpha, check out our Daily Newsletter:

https://www.m6labs.co/p/crypto-bingo-card-binance-to-acquire?sd=pf

These days, the crypto community has a split opinion about the future of #StarkNet

Some call it our savior, while others say it’s #NGMI

Here’s a curated list of notable projects in the StarkNet ecosystem

🧵👇

StarkNet is a permissionless decentralized ZK-Rollup

It operates as an L2 network on Ethereum, enabling any dApp to achieve unlimited computational scaling without compromising Ethereum’s composability and security

As with any ecosystem, we need to begin the story by highlighting the unique benefits that separate it from competitors

Developers can use StarkNet smart contracts to deploy any business logic quickly

StarkNet and its developer tools are built by various teams and individuals developing diverse STARK-based solutions for the blockchain industry

Eli Ben-Sasson and Uri Kolodny founded the company

Before we continue...

You can read the unrolled version of this thread here: https://www.m6labs.co/p/exploring-the-starknet-ecosystem?sd=pf

A trusted place to store digital assets is crucial for any ecosystem

Major wallets in the StarkNet ecosystem:

@argentHQ - a simple and secure mobile crypto wallet. It is open-source and built on zkSync, a ZKP-based Layer 2 rollup solution for Ethereum

@myBraavos - created to make a self-custodial wallet that is easy and reassuring to use while not compromising on the enormous benefits of decentralization and self-custody of assets

More wallets are expected to join the ecosystem

Bridges:

The fees for bridging to StarkNet will vary depending on the network you transfer from

For example, if you are bridging from Ethereum you pay slightly higher fees because transactions on the mainnet are generally more expensive due to higher demand for blockspace

On the other hand, if you are bridging from other Layer 2s like Polygon, Arbitrum, Optimism, and Metis the transaction fee is much lower

Qasr and Kubri are bridges under development in the testnet phase to bring cash flow to StarkNet

DAO infrastructure:

• @SnapshotLabs - a voting framework built on StarkNet. It will allow any DAO to run their governance on-chain on Layer 2 and execute transactions on Ethereum

• @BibliothecaDAO - a pioneering Web 3 game studio building eternal games on StarkNet

• @ZorroProtocol - a fast way for people to prove that they're unique users so they can obtain democratic DAO voting rights and other benefits

Gaming/NFT projects:

• @TheDopeWars - a fully decentralized, community-driven, gaming metaverse project inspired by hip-hop culture

• @influenceth - a space strategy MMO game with true player ownership, set in a realistic asteroid belt, all built on Ethereum

• @LootRealms - the first module in an infinitely expanding player-owned game world

• @AgeOfEykar - A decentralized strategy game

• @bitmapbox - a 2D block-building game and protocol

• @phi_xyz - build your own web3 world with your wallet activities

• @ninth_gg - a crypto-native and on-chain metagame

• @MintSquareNFT – enables NFT trading with cheaper transactions and faster confirmation time

• @NftflowStarkNet – a platform for creating liquid markets for illiquid NFTs

Other projects in the StarkNet ecosystem:

• @FujiFinance - First and only yield aggregator project

• @zkxprotocol – Project on Derivatives on StarkNet

• @AstralyXYZ – Launchpad project on StarkNet

• @ibetyouxyz – Project on betting on StarkNet

Projects launching soon on StarkNet:

• @nostrafinance - the liquidity layer of StarkNet

• @StarkDefi - aims to facilitate and simplify the onboarding process for the “next-generation user” in the blockchain space with a hub that accommodates a variety of DeFi solutions

• @ZKGraph - a social graph with limitless possibilities

• @KandraFinance - a new DeFi protocol on StarkNet

• @zohal_starknet - next-generation AMM coming soon to Starknet

• @cryptoswaporg - Decentralized Exchange on zkSync and StarkNet

StarkNet is still in the early stages of the ecosystem, where the most basic DeFi applications are just beginning to be developed and not yet launched

The most exciting DEXs are in the testnet stage

Exploring the StarkNet Ecosystem

Wireless networks are the gateway to the internet but aren’t transparent, which can soon change

With the internet transforming, some question whether the telecom industry can serve the next generation of internet users

Decentralized Wireless (DeWi) is the solution

🧵👇

Traditional wireless networks are restricted by bandwidth, congestion, service lags, and outages

Customers must deal with these issues in addition to determining the appropriate coverage, which is often complicated and costly

#DeWi aims to revolutionize how communication networks are built, operated, and owned by encouraging operators to deploy and maintain telecom hardware in exchange for token rewards

Thanks to mobile phones, 66% of the world uses the internet, up from 7% in 2000

Before we continue...

This is just a summary, you can read the full article here: https://www.m6labs.co/p/decentralized-wireless-dewi-introduction

The rise of new technologies, such as autonomous vehicles, the Internet of Things, smart cities, and virtual reality environments, has increased global demand for higher bandwidth and lower latency networks

@helium, a new decentralized network, is working to address these systemic, costly, and inequitable issues by introducing coverage operated by a cluster of nodes, each emitting radio frequency from their location

Hundreds of thousands of people can easily earn rewards, gain more reliable coverage, and contribute to developing a robust network by allowing anyone with a Hotspot to participate in the network

The Helium Network runs on a proprietary algorithm called Proof of Coverage, verifying that Hotspots are located where they claim

It uses radio frequency (RF) technology to generate confirmations that aid in the operation of the network

The company behind Helium, Nova Labs, has announced its intention to transform Helium into a decentralized platform on which any type of telecom network can be placed

This strategic shift transformed Helium into a network of networks

DeWi networks employ a token distribution mechanism that rewards participants for performing verifiable work in the real world

This incentive system is in charge of the economic flywheel that allows a network to be bootstrapped without the assistance of a centralized entity

A protocol can motivate participants to bootstrap the supply side of a network until its coverage is extensive enough for end-user use

This enables protocols to gain the initial momentum required for adoption and competition with centralized telecommunication services

Operators can use DeWi to enter automated revenue-sharing agreements based on the revenue generated by each hardware device

In TradWi deployments, operators must pay a fixed cost to landlords

DeWi enables users worldwide to build networks in parallel, which is significantly faster than the centralized method

With TradWi's macro coverage and DeWi's small cell coverage, 5G may become more accessible worldwide

Decentralized Networks are the future of telecommunication services

Nova Labs is well-positioned to expand and strengthen its coverage

The DeWi sector is still in its infancy, but its potential to transform the telecom industry is undeniable

Get the latest news and research from M6 Labs directly in your inbox before Crypto Twitter!

Subscribe to our Substack for institutional quality content curated by a community of degens:

https://www.m6labs.co/

Decentralized Wireless (DeWi) Introduction

The macro economy is the monolith standing tall above financial markets, and we must consider it when making market decisions

In this thread, we will cover notable upcoming events and why they're significant

🧵👇

Nov 2nd - FOMC

The Federal Reserve has been increasing interest rates for several months, but inflation hasn’t decreased significantly

This is important in considering how the Fed will react to inflation data

The PCE price index was up 0.3% month-over-month in September

This could be a good sign regarding the efficacy of previous rate hikes.

Expectations for this meeting are a 0.75% increase in interest rates to make the rate = 3.75 - 4%

Markets tend to have whiplash volatility on this news, so expect that to come.

Nov 4th - NFP, Unemployment Rate

Non-farm payrolls (NFP) - the change in the number of employed people in the economy (excluding farming)

NFP indicates the level of consumer spending (more employed = more spending), which is a large part of economic health

An increase in this measure can mean increasing inflation - increased spending = increased demand

When we see businesses hiring more, it can often indicate success

However, the double-edged sword comes into play when sellers react by raising prices due to business expansion

Although it may sound harsh, we want this measure to fall in the current macro state as it shows that monetary policy actions are impactful

The unemployment rate, similar to NFP, is an indicator for demand and inflation.

Nov 5th - OPEC Meetings

OPEC regulates the oil supply, provides price stability for oil, and controls price movement

At the beginning of October, OPEC cut oil production by 2 million barrels per day, intending to combat rising interest rates and a weakening global economy

However, most believed this was purely a decision to drive prices upward

Oil prices impact inflation with its influence on energy prices, so this meeting will be vital to watch for any decisions which may worsen or improve inflation

Nov 8th - Congressional Elections (Midterm Elections)

Federal offices are up for election, which includes all 435 seats in the United States House of Representatives and 33 or 34 of the 100 seats in the United States Senate

This is highly impactful on markets as new federal electees mean new/innovating policy, which scares investors, so the markets will react based on who wins certain positions

Tip: have a look at the candidates and their ideals.

Nov 10th - CPI

CPI measures the overall change in consumer prices based on a representative basket of goods and services over time

CPI is currently at 8.2% YOY, so we need a decrease from this benchmark for a positive market reaction

The result will spur volatility heavily as the market tries to price, in effect, forward-looking at FOMC in December

You can keep yourself updated further using an economic calendar like Forex Factory @ForexFactory - https://www.forexfactory.com/calendar

You can read the unrolled version of this thread here: https://www.m6labs.co/p/upcoming-macro-events-to-keep-up

Upcoming macro events to keep up with & why

The battle of the shiny new high-performance Layer 1 PoS blockchains has begun

Today, let’s take a look at @SuiNetwork, a permissionless Layer 1 blockchain that allows creators and developers to build experiences more easily for the next billion Web 3 users

🧵

Sui is a decentralized proof-of-stake blockchain with horizontally scalable throughput and storage, allowing unrivaled speed and low-cost application development

Before we continue...

This is just a summary, you can read the full article here: https://www.m6labs.co/p/dissecting-mystens-sui-protocol?sd=pf

Sui applications are powered by Move smart contracts, a programming language created at Facebook to power the Diem blockchain to write secure smart contracts

The platform-independent language allows libraries, tooling, and developer communities to be shared across chains

Sui was designed with several security guarantees for asset owners on the network:

• An owned asset is only usable by the owner
• Everyone can operate on shared assets
• Users choose validators through the delegation of $SUI tokens.

The $SUI token serves as the network's native asset, paying for gas fees and rewarding proof-of-stake (PoS) participants

$SUI is also used for on-chain governance and protocol upgrade voting

Sui proposed a Storage Fund, which redistributes storage fees from previous transactions to future validators

Users pay upfront fees for computation and storage, which are then saved in the Storage Fund to incentivize future validators to keep the network secure

The team wants to make Sui the most accessible smart contract platform, empowering developers to create great user experiences in Web 3. Their core team includes four co-founders:

@EvanWeb3 (CEO)
@EmanAbio (CPO)
@b1ackd0g (CTO)
@GDanezis (Chief Scientist)

Want to learn more about Sui?

Keep reading here: https://www.m6labs.co/p/dissecting-mystens-sui-protocol?sd=pf

Dissecting Mysten’s Sui Protocol

Eisenberg, the person behind the #Mango Markets exploit claimed that his actions were legal

Are hacks and exploits now considered legal?

Here's the current state of crypto laws 🧵👇

Recently, there was a $114M exploit on Mango Markets

@avi_eisen was a part of the team that is responsible for the exploit

He confessed that he was involved with a team that operated a highly profitable "trading strategy"
https://twitter.com/avi_eisen/status/1581326197241180160?s=20&t=3BK0n2iv9fiLCJWkYqQnmg

He also believes that all of their actions were legal open market actions, using the protocol as designed

Even if the development team did not fully anticipate all the consequences of setting parameters the way they are

Before we continue...

You can read the unrolled version of this thread here: https://www.m6labs.co/p/are-hacks-and-exploits-in-crypto

They manipulated the price oracle to increase the $MNGO price from $0.30 to $0.90

This allowed Eisenberg and the team to boost the value of their collateral and borrow more funds from the protocol

Eisenberg had a stake of $10M

As a result, Mango Markets became insolvent with the insurance fund being insufficient to cover all liquidations

Eisenberg decided to negotiate a settlement agreement with the insurance fund

With the help of the Mango community voting process, Eisenberg returned $67M to the project while keeping $47M

Eisenberg also made an agreement with the Mango community that they won't pursue legal action

Is all of this legal?

What does the law say about these crimes?

The current state of Crypto laws:

According to the World Economic Forum’s Global Future Council on Cryptocurrencies:

Regulation of blockchain and cryptocurrencies has lagged behind, as regulators globally have found it difficult to regulate a technology that is borderless

To date, there has been no internationally coordinated regulation of blockchain & cryptocurrencies

Globally, there has been a spectrum of responses to cryptocurrencies

Some have banned it entirely, some are adopting novel models to understand the technology to regulate it

1. Cryptocurrencies are not considered legal tender in the States.

The IRS has defined it as “a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value"

A cryptocurrency regulation was imposed that required data collection from cryptocurrency exchanges and wallets

This would require exchanges to submit suspicious activity reports for txns over $10k and require KYC for wallet owners sending more than $3k in a single txn

The Biden administration focused on stablecoins in 2021 in an effort to manage the risk posed by the tokens' value appreciation

However, no laws or regulations have been established as of yet

Crypto exchanges are considered legal, and they are known as "money transmitters"

However, the US has regulations that differ from state to state for money transmitters

Example:

New York requires companies to seek a license from the New York State Department of Financial Services to hold, buy, and sell Crypto

In 2018, Wyoming State exempted cryptocurrency sellers and developers from securities regulations

The U.S administration also sees huge advantages in developing a central bank digital currency (CBDC) or digital dollar

According to Jerome Powell, the main rationale for releasing a CBDC would be to eliminate the necessity for alternative coin use in the country

Powell said:

“You wouldn’t need stablecoins; you wouldn’t need cryptocurrencies if you had a digital U.S. currency, I think that’s one of the stronger arguments in its favor.”

So, even though there have been many laws and regulations in place for specific fields like taxes, stablecoins, and crypto exchanges, there are numerous potholes that need to be filled

For one, there are no specific laws and regulations for on-chain activity

These potholes can't be discovered until the crypto markets mature and the regulators have a far better understanding of the technology

Until then, scammers can theoretically claim that their acts are legal b/c there is no law that says that they have committed a crime

2. The European Union announced its Markets in Crypto Assets (MiCa) proposal

The EU is examining the effect of blockchain in financial markets & assessing how to mitigate typical #crypto risks such as fraud, cyberattacks, and market manipulation
https://twitter.com/paddi_hansen/status/1577647947692621825?s=20&t=3aOQ4o3A2WKpX-gg7_M_jg

This type of cross-border regulation is positive reinforcement of the potential of cryptocurrencies

3. India has both legalized cryptocurrency and made its cryptocurrency tax clear

The legal actions that would be taken against Indian individuals who are guilty of exploits and hacks have not yet been published.

4. China has banned initial coin offerings (ICOs) in its country. It's also developing a digital version of its fiat currency - Digital Yuan

China banned crypto mining, which knocked off 40% of total crypto mining operations

Globally, central banks and regulators share a common objective:

To promote innovation and economic growth while stabilizing their monetary system, to prevent illegal funding, and maintain market integrity

However, each country has a different approach to achieving it!

Are hacks and exploits in crypto considered legal?

Parker Jay-Pachirat @parkerjayp, a VC at Fintech Collective @fintech_io was recently interviewed by @banklessHQ about #criticaltheory in the context of blockchain innovations.

We listened to the entire podcast to provide you with a summary of the important insights

🧵👇

@parkerjayp has a unique take on systems and power structures at a broad scale

She argues that power exists in any context

Some forms of power are explicit and some are inexplicit

It’s very reminiscent of @jordanbpeterson's  idea of hierarchies existing everywhere

Before we continue...

You can read the unrolled version of this thread here: https://www.m6labs.co/p/building-power-structures-in-crypto?sd=pf

The goal of critical theory is to make inexplicit or assumptive forms of power more explicit

Understanding the current systems of power will allow society to break out of them and make progress

This is where #crypto comes in

The current two-party political system has maximized political polarization to record levels in the US, forcing everyone into one of the parties

She argues that the values of #Web3 and Crypto may allow people to transcend existing political systems

Parker states that all media tends to be biased today and to make your own opinion you have to consume information about the same stories and events from different sources (left-wing & right-wing)

Avoid group thinking!

A diverse information diet is the healthiest diet!

Transparency, social mobilization, and an open financial system may allow for building different political communities within the current system, and they have the potential to transcend them

Crypto economies are introducing fundamentally novel and innovative ways of doing governance that we have never seen before

Voting systems and completely unconventional governance mechanisms to how traditional institutions operate

The DAO design space creates more dynamic forms of governance mechanisms to keep up with changing belief systems of people

Conviction voting allows staking your vote which gains more power over a set time period and then retracting it if you change your view

@parkerjayp encourages not to be afraid of #DAO failures as there are big opportunities to put a lot more research documentation and experimentation into DAO governance

Learning from the mistakes of existing and failed DAOs will allow the whole space to progress faster

The narrower the niche of the community, the stronger it is (the strongest subreddits are very niche)

Focusing on a specific thing helps attract the most intrinsically motivated participants

Be open about how to interact with the community and opportunities for members

@parkerjayp points to token-based governance as one of the challenges of DAOs, as it will lead to a corrupt system where the most financially resourceful accrue all power

Resulting in voting fatigue and low participation will lead to non-reflective decision-making

She argues there is no one right way to do a DAO - for DAOs to succeed - the proliferation of diverse forms of governance need to be realized and experimented with

However, it is known the most consistent way communities dissipate is when members don't feel heard

Parker points out that for the first time in history with these innovative forms of organization, different initiatives more quickly mobilize around a common goal or values

@Ukraine_DAO and @ConstitutionDAO are prominent examples

"@Ukraine_DAO  raised more money in the first week of it being formed than the UN did for humanitarian relief in Ukraine

It's insane!" - Parker points to the power that DAOs bring to the world

@parkerjayp raises a question that exists within critical theory: Does culture shape law or does law shape culture?

She notes that direct engagement with community members and their problems resulted in better policy decisions as opposed to external institutional research

See the full podcast episode: https://youtu.be/NC_j34Yc_hA