The DAO bolstered its framework and community by enabling ARB staking and enhancing token utility and security.

The Arbitrum DAO has approved a temperature check proposal that aims to boost the utility of the ARB token and strengthen governance security.

The proposal garnered overwhelming support with 91% approval from more than 25,000 participants and concluded its onchain voting.
ARB staking and governance enhancements
The core of the proposal focuses on unlocking the utility of the Arbitrum (ARB) token by enabling ARB staking. However, it stops short of distributing fees to tokenholders for now. Instead, it introduces a liquidity-staking ARB token (stARB) through the Tally protocol.

The staking mechanism will allow ARB tokenholders to stake and delegate their tokens in exchange for stARB, which represents their stake. The stARB token supports the automatic compounding of future rewards, restaking options and compatibility with various decentralized finance (DeFi) applications.

This strategic initiative is anticipated to encourage greater active participation within the Arbitrum ecosystem. By staking ARB tokens and actively delegating them, holders will be eligible to receive surplus sequencer fees in the future.

This mechanism is intended to incentivize voter participation in the DAO, addressing the current low levels of engagement.
Addressing ARB underperformance and security measures
The proposal highlights a pressing issue: the underperformance of the ARB token in terms of value accrual. According to the proposal, less than 1% of ARB tokens are currently active within the onchain ecosystem, and voter participation has been on a decline since the DAO’s inception.
Related: Arbitrum DAO votes on $1M fund for Tornado Cash devs' legal defense
Another critical aspect of the proposal is the focus on preventing potential governance attacks. As the Arbitrum treasury grows, it becomes an increasingly attractive target for malicious actors.

By implementing the staking mechanism and ensuring active delegation, the DAO aims to create a more robust and secure governance structure. This proactive approach is crucial in safeguarding the treasury and maintaining the integrity of the governance process.

In June, the team behind Arbitrum, a layer-2 network built on Ethereum, allocated 225 million ARB tokens worth roughly $215 million for distribution via the Gaming Catalyst Program over the next three years.

Additionally, in March, the Arbitrum DAO rejected a proposal to cover the legal expenses of Roman Storm and Alexey Pertsev, the developers behind Tornado Cash.
Magazine: Web3 Gamer: Devs quit after Torque Drift 2 added crypto, big problem with MetaFighter

#dao #web3 #Adoption #Tokens #Defi

The plan would create markets for DAI-replacement USDS on Aave.

Decentralized finance (DeFi) protocols Aave and Sky (previously Maker) are exploring a partnership designed to “close the gap between DeFi and TradFi,” according to a Sept. 2 announcement.

The proposed partnership, referred to as the Sky Aave Force, follows a Sept. 2 governance proposal by Phoenix Labs, a DeFi research and development organization. The proposal suggests issuing SPK tokens—native to Sky’s subDAO, Spark—to help establish a market for USDS, a stablecoin launched after Maker’s August rebranding to Sky.

“Sky Aave Force has an ambitious goal: to drive mass adoption and close the gap between DeFi and TradFi. Now is the time to work together,” said Aave Labs, the developer behind the Aave DeFi lending platform.

Sky Aave Force aims to bridge DeFi, TradFi. Source: Aave Labs

Related: Maker DeFi lending protocol rebrands to Sky ahead of USDS stablecoin launch

Phoenix Labs proposes distributing up to 3.33 million SPK tokens per month to incentivize an Aave v3 market for Sky’s sUSDS, a yield-bearing token representing deposits in the Sky Savings Rate (SSR) program. Similar to its predecessor, the DAI Savings Rate (DSR) program, SSR provides yield to depositors from the revenues generated by Sky’s protocol.

As proposed, idle sUSDS on Aave “consistently earns the Sky Savings Rate (SSR), allowing the market to outperform the USDC/USDT counterparts,” Phoenix Labs said.

The proposal also suggests introducing a USDS Direct Deposit Module (D3M) to Aave’s Lido Market, with an initial debt ceiling of $100 million. In July, Aave partnered with Lido, the leading Ethereum staking protocol, to create a lending market for wstETH, a liquid staking derivative (LSD) representing a claim on Lido’s ETH staking pool.

The D3M would enable Sky to mint USDS directly into Aave’s market without needing to meet the usual collateral requirements.
Aave is the largest lending market in DeFi with over 11b in TVL across multiple chains. This presents a lot of synergies between the two protocols with USDS being the largest decentralized stablecoin,” Phoenix said.

“We view this as a first step to a deeper relationship with Aave to promote both protocols as the core of scalable DeFi,” Phoenix added.
#Blockchain

#Altcoin

#Ethereum

#Adoption

#KNIFE

Should the current rate of adoption continue, blockchain technology could have 100 million daily users by 2028, according to projections by Bloomberg Intelligence analyst Jamie Coutts. 

On X (formerly Twitter), Coutts pointed out that blockchain adoption has been "unabated" throughout bull and bear markets over the past years. "Not having exposure to one of the largest structural trends of the next decade could be costly," said the analyst.

Daily active addresses exceed 5 million in the third quarter of 2023, up 14% from 2022, according to Coutts, while quarter-on-quarter growth has averaged 29% since 2019. "If we apply a more moderate 20% QoQ growth rate then we could reach 100 million daily users by 2028."

Bear market/Bull market, adoption of #blockchain technology continues unabated. Not having exposure to one of the largest structural trends of the next decade could be costly. 5 million daily #crypto users today, is likely to be 100m in less than 5 years. pic.twitter.com/RG6dRoiCes

— Jamie Coutts CMT (@Jamie1Coutts) November 3, 2023

Coutts compared blockchain rate adoption with PayPal’s rate growth. According to him, it took the fintech giant 13 years to reach 100 million daily users. "If Ethereum was day zero for smart contracts (2015) then it may take a similar time frame for blockchains to reach similar level of adoption," he added.

Keeping the current pace of adoption, blockchain-based companies may also see a rise in valuations. Coutts noted that basic regressions show the blockchain ecosystem could be valued between $5 trillion to $14 trillion once 100 million users are onboard. "Thats up from $350b today."

Coutts projections are consistent with data suggesting sustained interest in blockchain technology. In spite of the market downturn, development in the crypto industry rose 5% in 2022. Additionally, a survey conducted by Celent in 2022 showed that 91% of institutional investors are interested in investing in tokenized assets — blockchain-based tokens that represent ownership of physical and digital assets.

"While overly simplistic extrapolations such as this should never be soley relied on for valuation purposes it, the exercise illustrates that users and prices are inextricably linked and that as adoption continues prices are likely to track much higher for some assets," Coutts predicted.

Magazine: Ethereum restaking — Blockchain innovation or dangerous house of cards?

In June 2023, the crypto world witnessed a seismic legal clash between Binance, a global cryptocurrency exchange powerhouse, and the U.S. Securities and Exchange Commission (SEC). The SEC, in a move that reverberated through the industry, accused Binance and its founder, Changpeng Zhao (CZ), of violating securities laws. The allegations included misleading customers and diverting funds to Zhao's separate investment fund.
Binance, in a spirited defense, challenged the SEC's jurisdiction, arguing that the transactions in question occurred outside the United States. The exchange criticized the SEC's reliance on a $4.3 billion settlement with the Department of Justice (DOJ), dismissing it as irrelevant to their case.
Legal Maneuvering:
The SEC sought to bolster its case by leveraging Binance's admission of guilt to the DOJ, implying that Binance knowingly operated within the U.S. This tactic intensified the legal standoff, with both parties digging in their heels.
In a surprising turn of events in November, Binance opted to settle with the DOJ, agreeing to a substantial $4.3 billion fine. Changpeng Zhao resigned as Binance CEO, and both he and the exchange admitted to violating the Bank Secrecy Act. The repercussions of this settlement are far-reaching, marking a pivotal moment in the evolving landscape of crypto regulations.
Market Ripples:
The impact of the legal uncertainties surrounding Binance was palpable in the crypto market. Binance's native coin, BNB, underperformed against Bitcoin by at least 16%, signaling the apprehensions and skepticism that legal battles can instill in investors.
Broader Implications:
This legal clash extends beyond a mere confrontation between a crypto giant and a regulatory body. It serves as a crucible for the challenges confronting the regulation of the burgeoning crypto industry. The decisions made in this case are poised to become precedents, shaping the trajectory of future legal battles in the crypto space.
Key Questions and Considerations:
As this case unfolds, crucial questions loom over the crypto industry. Will the outcomes set benchmarks for future regulatory decisions? How will these legal developments impact innovation and investor confidence within the crypto ecosystem? These questions are not just legal intricacies but touch the core of the delicate balance between regulation and the unbridled spirit of innovation that defines the crypto world.

#cryptocurreny #Adoption #Binance #SEC #BinanceWish
$BTC $BNB $ETH

Stablecoins, or crypto assets that follow the price of a well-known fiat currency like the US Dollar, have grown to over $100 billion total market capitalization — and with great transaction volumes to boot. Amid an increasingly welcoming regulatory environment, we might soon see stablecoins as the most widely used crypto product.

The premise of stablecoins is fairly simple: you get to benefit from the versatility of a global blockchain network, but with none of the annoyances from the unstable value of even major cryptocurrencies like Bitcoin and Ethereum.

And just as the value of the entire crypto market went through a major downturn, stablecoins have continued to grow and reach new heights of adoption throughout this year, according to QuickNode’s Q3 On-Chain Report.

Growing business and grassroots adoption

While 2023 has been largely tough on crypto markets — VC funding continued to dry up, DeFi and NFT usage declined — stablecoin active user counts are up on the year.

Leading stablecoins like USDT, USDC, DAI can be found across most layer-1 and layer-2 networks, offering a large degree of versatility and ease of use. Ultimately, decentralized bridges further expand the range of stablecoins usable on-chain, though they’ll most likely need to be bridged back for peer-to-peer integrations and fiat conversion.

The rosy picture for the stablecoin class, in truth, is mostly the story of one of them. With BUSD being culled bowing to pressure from the NY Department of Financial Services, and the Silicon Valley Bank collapse and subsequent USDC depeg severely affecting its momentum, only USDT has seen a positive and uneventful year.

Beyond the large, crypto-related transactions, USDT is also seeing some signs of local grassroots adoption. Earlier in the year, it became possible for Argentinians to purchase groceries at Mercado Central, one of the largest markets in the region, with USDT and other cryptocurrencies. As countries torn by inflation look to adopt the US Dollar — unofficially, at least — stablecoins offer an ideal source of it for both local and global usage. 

Finally, some regulatory clarity

Importantly for stablecoins, regulators have now taken a closer look at stablecoin transactions, and the verdicts seem overall positive.

Earlier this year, the milestone MiCA regulation passed in the EU, mandating among other things the full auditability of “centralized” stablecoins. The implementation takes multiple steps, with the bulk of the measures set to be enforced starting December 2024.

Other jurisdictions across the world have mostly followed along, with the UK, Singapore, Hong Kong and others passing a mostly similar set of regulations in the summer of 2023 — a period some have termed the “stablecoin summer.”

As always, regulations carry a double-edged sword. By defining clear rules, they are designed to ensure that episodes like the Terra UST collapse could never happen again, as well as potentially putting an end to the longstanding speculations about reserves and trust in stablecoin providers. But the more stringent requirements for operating legally could make it tough for decentralized alternatives to establish themselves effectively, especially considering an outright ban on “algorithmic” stablecoins seen across many of the regulatory frameworks.

Stablecoins are a big business, and about to become even bigger

Rumors are circulating about Circle, the issuer of USDC, actively considering an IPO in early 2024. According to Bloomberg, the firm is actively studying a potential go-to-market strategy, though the plans are not finalized just yet.

At their last 2022 valuation for a SPAC-driven listing, Circle was valued at 9 billion, taking its rightful place as one of the most valuable crypto companies.

It’s unclear if Tether has anything similar in plan, though it too is an incredibly profitable company. The recent shuffle with Paolo Ardoino, formerly CTO, now officially becoming CEO might be a sign of a longer duration plan.

Regardless, stablecoins are proving their worth and rapidly growing. Though crypto purists might not like this outcome, stablecoins can be the first killer application of blockchain — a way for everyone across the world to experience it.

Discover the Crypto Intelligence Blockchain Council

Cardano’s ADA is one of the biggest gainers in the top ten of the crypto market this week. This comes during a price increase of more than 8% from last week despite being down almost 2% in 24 hours. Only Bitcoin gained more over the past week in the top ten, with an impressive 13% gain.

Near the overhead resistance level, the ADA/USDT pair has been trading in a constrained range. This suggests that both bulls and bears are unsure of the path forward. Meanwhile, SundaeSwap, one of the most well-known DEXes on Cardano, just crossed the milestone of 600,000 ADA. In total, there are now 1,289,818 Staked Addresses, according to data from Adaverse.

Several new developments have come to the Cardano ecosystem in recent weeks, supporting the price rally and signalling increased adoption.

For instance, Lace, the lightweight Cardano wallet for ADA and web3, released its v.1.2 updates with expanded browser support, enhancing how users can organize their NFTs, improving privacy choices and enhancing speed. At the same time, the Adrestia team focuses on improving the congruity of node v.8.1.1. with the Cardano wallet, database layer improvements, and introducing the capability to delegate functions of a multi-signature wallet.

Cardano’s smart contract language Plutus also sees impressive adaption, adding over 1,000 smart contracts since the beginning of 2023.

The Plutus Tools team achieved significant milestones, which include finalizing the Marconi GetUtxoFromAddress and GetTokenBurnEvent indexers for the Sidechain Tribe. They also conducted a thorough comparison between the GetTokenBurnEvent indexer result and Cardano-db-sync. Additionally, they carefully changed the JSON-RPC request and response for the Marconi-sidechain to follow the API definition. To improve functionality, they also added an AssetId filter to the CLI of the Marconi-sidechain.

The Hydra team performed research and testing in Basho to enhance a head’s performance on the mainnet. They addressed bugs and issues to prepare for the release of version 0.11.0, including various changes and fixes. The Mithril team worked on bug fixes and updates while concentrating on the signer deployment methodology for SPOs and developing a stress test tool for evaluating the aggregator. Discussions on creating the first Minimum Viable Governance (MVG) framework, which aims to encourage participatory governance within the Cardano ecosystem by incorporating community feedback, went on in Voltaire.

According to EssentialCardano.io, there are now 130 launched projects, with almost 1,300 still building, an impressive 8.44 million native tokens and close to 70 million transactions in the Cardano network.

Going by data from Artemis, at present, over 66,000 daily active addresses participate on Cardano with 77,700 daily transactions and 156 million in Total Value Locked (TVL). Total Value Locked measures the entire value of assets locked or held within a specific protocol, platform, or smart contract frequently used in the cryptocurrency and decentralized finance (DeFi) field. A DeFi platform’s overall activity and popularity are frequently gauged using TVL. 

According to Cointelegraph, blockchain technology could have 100 million daily users by 2028 if the current rate of adoption continues, according to projections by Bloomberg Intelligence analyst Jamie Coutts. Coutts highlighted that blockchain adoption has been consistent throughout bull and bear markets over the past years. Daily active addresses exceeded 5 million in the third quarter of 2023, up 14% from 2022, while quarter-on-quarter growth has averaged 29% since 2019. Coutts suggested that a more moderate 20% QoQ growth rate could lead to 100 million daily users by 2028.

Coutts compared blockchain rate adoption with PayPal’s rate growth, noting that it took the fintech giant 13 years to reach 100 million daily users. He added that if Ethereum was considered day zero for smart contracts in 2015, it might take a similar time frame for blockchains to reach a similar level of adoption. With the current pace of adoption, blockchain-based companies may also see a rise in valuations. Coutts noted that basic regressions show the blockchain ecosystem could be valued between $5 trillion to $14 trillion once 100 million users are onboard, up from $350 billion today. Coutts' projections are consistent with data suggesting sustained interest in blockchain technology, with development in the crypto industry rising 5% in 2022 despite the market downturn. A 2022 survey conducted by Celent also showed that 91% of institutional investors are interested in investing in tokenized assets, which are blockchain-based tokens representing ownership of physical and digital assets.