SushiSwap, the community-owned automated market maker (AMM), now has a new set of leaders. Nine signers of a multisig wallet controlling the project’s funds have been elected to govern SushiSwap through full decentralization.
On Ethereum, a multisig has worked out to be something like a board of directors in the analog world, such that it takes any six of the nine members to approve changes to the SushiSwap code or to spend its development funds.
These new leaders were chosen through a process largely inside the SushiSwap Discord server following the departure of two of the project’s three co-founders. Some stumped for a spot and some sailed through by name recognition within the community, reflecting a campaign-like process we are likely to see more of in the future.
For context, cryptocurrency projects approve actions using signatures by private keys. Properly signed statements authorize the Ethereum blockchain to take the actions it is directed to take. By allowing multiple-signature setups – where actions can be approved by a few of a larger set of authorized signers – smart-contract-based protocols can create a board, but without the face-to-face meetings.
In the SushiSwap election, 2,143 wallets participated, each able to vote for as many candidates as they wanted. Participants could also vote against specific candidates. Voting ended at 14:00 UTC on Sept. 9.
Users had to have liquidity provider (LP) tokens in the SUSHI/ETH pool on SushiSwap to vote, rather than simply holding SUSHI.
Newly elected multisig member Mick Hagen, a founder of crypto startup Genesis Block, explained to CoinDesk, “The people who have the most skin in the game, their SUSHI and ETH actively at stake, should have the loudest voice and most voting power.”
Newly elected multisig member 0xMaki pointed out that this setup protects against people borrowing SUSHI to impact a vote. 0xMaki, the remaining SushiSwap co-founder, added that more advanced participation schemes such as quadratic voting will be floated to the community soon.
The newly elected members are Sam Bankman-Fried (FTX), Robert Leshner (Compound Labs), 0xMaki, Larry Cermak (The Block, who is sometimes credited with inspiring SushiSwap), CMS Holdings (an investment firm launched in November), Matthew Graham (Sino Global Capital), Hagen, Adam Cochran (DuckDuckGo) and Zippo (the pseudonymous creator of the SushiSwap dashboard).
CoinDesk has not yet managed to confirm directly with all nine of the elected members as to whether they will take their positions.
Thus far, Leshner, 0xMaki and Hagen (tentatively, pending counsel) have confirmed directly that they plan to take the role. Based on statements on Twitter, it seems clear that Bankman-Fried, CMS Holdings, Cochran and Zippo will as well.
Politics is coming to crypto.
Crypto entrepreneur Ric Burton has been well ahead of the trend of people taking leadership roles in protocols, first stating his intention back in January, during discussions of the DigixDAO token buyback, to be a “protocol politician.” The idea is to enable smaller holders of governance tokens to delegate their clout to protocol politicians as a countervailing force to crypto whales and the big venture capital firms with large token holdings.
The SushiSwap process hewed closer to a traditional political campaign than some others have, though in much more modest ways. Several candidates posted statements of various kinds in the “multisig-interviews” channel on the SushiSwap Discord, for example.
There, Cochran wrote a lengthy statement, including the following:
“I was the first voice to come out pointing out the major red flags in Chef Nomi’s project and the need for a multi-sig wallet. Because of this I was accused of spreading FUD and even received personal threats. People didn’t realize I was invested in $SUSHI.”
Hagen told CoinDesk that when the multisig was first floated, a lot of anonymous accounts and influencers started making noise about it on Twitter, but that quickly became pointless, from his perspective.
He wrote in an email, “The only semi-influencer that became a signer in the end was journalist Larry Cermak. But all the other signers are serious builders/operators/investors in crypto/defi. The interview channel in Discord was mostly only used by candidates who were desperate for attention.”
Cermak has not replied to repeated requests for comment from CoinDesk since the nomination, though he has retweeted some positive mentions about his election. He told CoinDesk via email on Sept. 1, “I am not involved in any way and have no stake whatsoever,” though he did provide a fair amount of feedback early on in the Discord.
When EOS was launched, a similar attitude prevailed, but then “block producer” roles were quickly overtaken not by builders but by larger holders. However, Hagen noted that the plan now is to make the multisig a temporary situation, a matter of months, not years.
Aaron Wright, co-founder of the ConsenSys-backed OpenLaw, wrote on Twitter that multisig members could get themselves in a hairy spot with regulators:
Leshner replied to Wright, saying, “DeFi is reinventing the board of directors.”
Hagen concurred but noted, “This multisig is only temporary. It’s progressive decentralization. It’s not perfect, but it’s much better than having Chef Nomi or [Sam Bankman-Fried] having full control.”
Burton declined to actively pursue a role in SushiSwap. As an ongoing observer of roles like these, however, he told CoinDesk:
“I think what we are seeing is that the incentives today are for whales to rig the game in their favour. The only way I can think of that shifting is if protocol politicians can make a great income.”
Today SushiSwap extracted over $800 million from Uniswap, though nearly all of that had only been placed in Uniswap for the purposes of earning SUSHI ahead of the extraction. In fact, at the end of the process, Uniswap has come out ahead in terms of liquidity, at least as of this writing.
The SushiSwap token migration is complete, according to Bankman-Fried. DeFi Pulse shows Uniswap liquidity dropping from well over $1 billion in crypto assets to $430 million as of 18:00 UTC.
Uniswap had $285 million in total value locked on Aug. 26, the day SushiSwap was first announced by the now exited creator, NomiChef, on Medium.
SushiSwap does not currently have an accurate portal to check total value locked and it is not yet tracked by DeFi Pulse. Based on the estimates prior to migration, it should have something like $300 million more in liquidity than Uniswap, though representing many fewer tokens.
It remains to be seen how many liquidity providers will maintain their stakes now that the liquidity mining rewards in SUSHI have dropped from 1,000 per block to 100, however.
Coinbase Targets Direct Nasdaq Listing of its Class A Common Stock
After the confidential submission of a draft registration statement to become a publicly-traded company announced last year, Coinbase has taken a major step to be listed on the giant US stock exchange – Nasdaq.
- CryptoPotato reported earlier that Coinbase had submitted a confidential draft registration statement to the US Securities and Exchange Commission (SEC) to go public via a direct listing instead of an IPO. Initial estimations suggested that the potential valuation was at about $28 billion.
- Earlier today, the company announced that it had filed a registration statement on Form S-1 with the Commission “relating to a proposed public direct listing of its Class A common stock.”
- This signifies a vital step towards becoming a publicly-traded company. Coinbase plans to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol “COIN.”
- It’s worth noting, though, that while the registration statement has been filed, it has yet to become effective. As the company explained it:
“These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.”
- Furthermore, Coinbase asserted that its filing doesn’t “constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.”
- The company reported that its net revenue results for 2020 were substantially larger than the 2019 numbers – $1.1 billion against $483 million. The expenses had also increased from $580 million in 2019 to nearly $870 million last year.
Polkadot, Ethereum Classic, IOST Price Analysis: 25 February
Polkadot saw a bounce to $36 after touching $28 over the past few days, but it has once again sunk beneath the $34 mark. Ethereum Classic also found some resistance at the $12 mark, and IOST showed rising bearish pressure.
The Supertrend indicator showed a sell signal for DOT after it slipped beneath the descending channel (cyan) and plunged to $28. However, since then it has made a recovery toward $34-but whether this is more of a bounce rather than a recovery is a pertinent question.
At the time of writing, trading volume did not really back the recent price rise, indicating that it was indeed a bounce. The Awesome Oscillator showed bearish momentum, but no real strength over the past few hours.
Key levels to watch out for are $34.5 and $36 above it. A rejection would indicate bearish strength, while a flip to support can be used to enter a long position on a retest.
Ethereum Classic [ETC]
Using the Fibonacci retracement tool for ETC’s drop from $18 to $9, some levels of importance are highlighted. The RSI showed bears were in control of the market over the past couple of days, as the RSI stayed beneath the neutral 50 value.
The Parabolic SAR climbed into overbought territory even as the price slipped beneath the 38.2% retracement level- which was not an encouraging sign for the bulls.
It is likely that ETC would continue to move lower, toward the $10.75 mark once more.
IOST was in a steady short-term decline. It attempted a recovery, on strong trading volume, to $0.059 from the depths of $0.039. However, bears were able to force the price lower once more.
An interesting aspect is a lack of buying strength when IOST began to slip after a rejection at $0.059. This showed that bears were in control. The levels that bulls would try to defend are the $0.044 and $0.039 levels.
A defense of either of these levels over the next couple of days would point toward weakening bearish pressure in the short-term, and another possible recovery back toward $0.059.
Sign Up For Our Newsletter
Inside the blockchain developer’s mind: Koinos approaches testnet
Cointelegraph is following the development of an entirely new blockchain from inception to mainnet and beyond through its series, Inside the Blockchain Developer’s Mind. In Part Four, Andrew Levine of Koinos Group discusses some of the challenges the team has faced since identifying the key issues they intend to solve.
In this post I will summarize the solutions we’ve developed to these problems, which we will be showcasing in the upcoming Koinos testnet planned for the second quarter of 2021.
Since that series Koinos Group has successfully launched a token, KOIN, as a proof of work mineable token on Ethereum. By using proof of work to distribute the initial token supply we were able make the token accessible to early adopters and forgo an ICO.
Assessing the ICO model
ICOs and similar token sale tools, while not without their use cases, have created their own crisis within the space by misaligning incentives before development even begins. The issue is not with the ICO as a tool, but what happens when a team is financially rewarded before they have even shipped a product.
While so many projects have followed in the footsteps of Bitcoin, it’s surprising how few have replicated arguably the most successful aspect of its launch; a token distribution exclusively through proof of work.
The benefit of this approach is that it ensures with algorithmic certainty that the people behind the blockchain have no advantage in acquiring the token. In short, everyone, no matter who they are, has to make a financial sacrifice in order to acquire that token and the scale of that sacrifice is determined by some neutral third party. In the case of proof of work, that neutral third party is the manufacturer of hardware.
For Koinos Group, that means we had to spend money to acquire our token just like everyone else. In fact, because we have to spend most of our time developing the product, we are even at a disadvantage relative to professional miners. So we have to keep working to add value to the protocol if we’d like to get a return on our investment.
Proof of work algorithms are not without their problems, but we mitigated those in a few ways.
- First, the mainnet will be governed by a totally different consensus algorithm that won’t be proof of work or proof of stake, so any attempt to develop an ASIC would be a waste of resources.
- Second, we made the algorithm GPU resistant.
- Third, we released this token long before releasing our mainnet. In fact, we released the token long before we had even completed development of our framework. Without a functional product, this token becomes a way for people who believe in our team and who share our vision for a fee-less smart contract platform to acquire the token at a reasonable cost.
Rapid rate of improvement
Part of what makes this launch strategy work is the innovative property set of Koinos. We built Koinos totally from scratch, not around any single feature like transactions per second or sharding, but with the goal of creating a blockchain that would improve at a much more rapid rate than any other blockchain out there.
In our experience developing the Steem blockchain, the need to execute hard forks was the single biggest factor holding back progress. If we wanted to eliminate that bottleneck, we reasoned, moving as much of the system code as possible into smart contracts that could be upgraded in-band would do the trick.
That’s why the Koinos blockchain framework contains only the most basic blockchain features (called “thunks”) like contract input/input, getting parameters, and writing to the database. All of the more complex features that people are more familiar with (consensus algorithm, accounts, resource management, governance, etc.) have been moved into modular WASM smart contracts running in the virtual machine that can be upgraded without a hard fork.
Because all behaviors are now coded in distinct “modules” that can be individually “upgraded” we call this feature modular upgradeability.
As a result of modular upgradeability, any behavior can be added to the blockchain without a hard fork because individual upgrades can be distributed in blocks and transactions that are pushed to the network much like an operating system patch, but with the added benefit of an on-chain record of the entire upgrade path.
By moving nearly all of the system code of the blockchain to smart contract modules that can be upgraded without a hard fork we have made Koinos into a blockchain that derives its strength not from the features it is born with, but based on its ability to rapidly acquire new and better features faster than anything else out there.
This is why we call Koinos the first blockchain capable of evolution.
Modular upgradeability was just the first major technical innovation that we developed to make Koinos less monolithic and an order of magnitude more upgradeable. Just like there is code that does not need to be implemented natively (in the blockchain itself) but that can be implemented as smart contracts (most of it in fact), there is plenty of code that does not need to be implemented either natively or as smart contracts and can instead be implemented as microservices.
Microservice architectures have many benefits which is why this has become the industry standard for modern software development, but one major benefit is scalability because individual services can be scaled up without having to scale up the entire system. This can dramatically reduce the cost of running a network while improving both the speed and quality of improvements to that network. As a result of historical accidents, blockchain stacks appear to be the last to adopt this new standard as Koinos will be the first blockchain built on a microservice architecture.
This creates amazing new opportunities for developers who will be able to build application specific microservices for Koinos that will help them run their nodes, and their applications, more efficiently; and as a consequence deliver better user experiences. Best of all, this will make Koinos node operation more accessible, thereby improving decentralization, and enabling the network as a whole to run more efficiently so that developers and their end-users can get more out of their decentralized applications.
Another benefit of a microservice architecture is that individual microservices (basically small programs) can be written in the best (fastest, most secure, best libraries, etc.) programming language for the job, a capability we also wanted to offer for smart contract developers. But in order to take advantage of this trait we needed to develop a way for these small programs written in different languages to “talk” to one another in a way that conformed to the unique needs of a decentralized network. To solve this problem we created a cross-language serialization framework named Koinos Types.
Koinos Types is like the Rosetta Stone for blockchain data structures. It allows programs written in different languages to talk to one another in a simple and unified way by giving them access to the same objects (the “building blocks” of modern programming languages). Koinos Types allows for the interpretation of Koinos (i.e. blockchain) data structures in practically any programming language which will be extremely useful for the development of blockchain-related microservices, clients, and smart contracts.
Koinos Types solves a number of problems. It helps us add multi-language support to Koinos more generally (including for smart contracts), it enables microservices to communicate with one another, and it makes it far easier to develop and update client-libraries. While modular upgradeability and the microservices architecture alone make Koinos far more upgradeable than any other blockchain, Koinos Types takes that upgradeability to another level. That’s why we were so excited to make Koinos Types the first piece of Koinos that we open sourced.
As you can see, ensuring that Koinos can improve at a more rapid rate than any other blockchain isn’t about any one feature.
- It’s about getting the incentives right from the beginning.
- It’s about ensuring that the blockchain has modular upgradeability.
- It’s about modularizing the very architecture itself as microservices.
- And it’s about making sure that developers operating at every level of the stack (not just smart contracts) are able to use the programming languages they already know and love.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Andrew Levine is the CEO of Koinos Group, where he and the former development team behind the Steem blockchain build blockchain-based solutions that empower people to take ownership and control over their digital selves. Their foundational product is Koinos, a high-performance blockchain built on an entirely new framework architected to give developers the features they need in order to deliver the user experiences necessary to spread blockchain adoption to the masses.
Ankr adds Eth2 futures (fETH) to its staking system
Ripple now registered as a Wyoming business
Elon Musk Explains to Peter Schiff What Money Is
Former BoE, BoC Governor Mark Carney joins Stripe board of directors
Litecoin, Cosmos, Tezos Price Analysis: 21 February
Peter Schiff Now Discusses Bitcoin More Often Than His Beloved Gold
A Review of BTCGOSU — Reviewer of Crypto Casinos
Kraken Daily Market Report for February 21 2021
DeFi Protocol Primitive Finance Self Hacks to Prevent Exploit
Long Blockchain Corp has officially been delisted by SEC
The Many Theories Of Elon Musk Being Satoshi Nakamoto
NFT Platform Ethernity to Launch IDO on Polkastarter
Is Ethereum heading to another ATH?
3 key factors that propelled Ethereum to $2,000 for the first time ever
Banks will be required to work with crypto, e-money and CBDCs to survive
Bitcoin falls to $45K in sequel to 20% BTC price crash
Kraken Daily Market Report for February 20 2021
MoneyGram suspends Ripple partnership, citing SEC lawsuit
Today 11:40 am EST: First Bitcoin Elite NFT Art Drop
Kraken users demand refunds over flash-crash liquidations
Blockchain1 week ago
Motley Fool adding $5M in Bitcoin to its ‘10X portfolio’ — Has a $500K price target
Blockchain3 days ago
Ankr adds Eth2 futures (fETH) to its staking system
Blockchain7 days ago
The Graph adds support for Polkadot, NEAR, Solana and Celo
Blockchain1 week ago
Blockchain7 days ago
Nvidia Announced the CMP HX Dedicated GPUs for Professional Crypto Mining
Blockchain1 week ago
Bitcoin mining firm Blockcap buys additional 10,000 ASIC miners
Blockchain1 week ago
Bitcoin surges past $52,000!
Blockchain5 days ago
Are Bitcoin’s long-term hodlers entering the seller’s market?