What Does The Future of DAOs Look Like?
Importance of Crypto Insurance | CitiBank on CBDCs | Impact of ETH Shanghai
GM, this is your Daily Bolt briefing.
In this weekend edition, we have compiled intelligence on the impacts of ETH Shanghai, and ways for you to keep track of them yourself. We’ve also included key points from key crypto figures on the specific narratives and driving factors behind blockchain's upcoming adoption.
Additionally, we have included a report on the world of crypto-insurance, which is a vital aspect that many active DeFi users may overlook.
If you’re curious about the state of protocol governance following the recent Arbitrum AIP-1 situation, keep reading to get the full scoop on what the future of DAOs could look like, and how regulatory concerns may affect the outcome. ⬇️
Stay informed, stay ahead.
1/ The Delphi Podcast - The Future of Crypto Insurance
Preview: In the episode of The Delphi Podcast, Host and Delphi Co-Founder Tommy is joined by Robert Forster (co-founder of Ease) and Hugh Karp (founder of Nexus Mutual) to discuss the future of crypto insurance. Click here to listen to the full episode (57 mins).
Read our Note (2 mins) and save 55 mins.
Robert has a background in development and has been involved in Ethereum since 2016/17, with a focus on security and bug bounties.
Hugh founded Nexus Mutual and is focused on the product side, while Robert became interested in DeFi-focused security and insurance.
Insurance is not as prevalent in the crypto space due to new risks, difficulty in building protocols, and a smaller user base.
DeFi projects use their own tokens as insurance, but it's not optimal as token prices can tank during hacks.
Projects may rely solely on insurance protocols like Ease to backstop hacks instead of using their own treasuries.
Insurance is critical for attracting institutions and giving people peace of mind as the industry moves more onto the blockchain.
2/ Coin Bureau - Crypto’s Killer Use Case - Citibank's Report
Preview: In this episode, Guy talks about Citibank's report, CBDCs, decentralized social media, NFTs, smart legal contracts and more. Click here to watch the full episode (25 mins).
Read our Note (7 mins) and save 18 mins.
Here are some key takeaways:
The CitiBank report is titled “Money, Tokens and Games: Blockchain’s Next Billion Users and Trillions in Value”.
It was authored by some key figures in the industry which includes Algorand founder, Silvio Micali, Aave founder, Stani Kulechov, Ava Labs president, John Wu, Polygon Labs president, Ryan Wyatt, and Zooko Wilcox, founder of Zcash.
True blockchain adoption will be achieved when blockchain has a billion-plus users who do not even realize they are using the technology.
The authors project that between 2 and 4 billion people will voluntarily adopt CBDCs.
This is inconsistent with the adoption projects from the BIS and real CBDC adoption in countries like Nigeria where the adoption is at a fraction of a percent.
Vitalik Buterin said that stablecoins, like $USDC, would have the power to decide future blockchain forks.
The authors provided a list of countries that are working on CBDCs and included notes about which technologies they are using.
3/ blocmates - Shanghai Upgrade, LSDs, AVAX & Tapioca DAO
Preview: In this episode, Dan, Jedi and Grant from blocmates team discuss the recent events in the ecosystem including Shangai Upgrade, FTX and Tapioca DAO. Click here to listen to the full episode (80 mins).
Read our Note (4 min) and save 76 mins.
Here are some key takeaways:
The Shanghai upgrade has taken place, which combines changes to the Ethereum execution layer and the consensus layer.
The speakers discuss how logic dictates that people would sell their assets after being underwater for so long, but instead, they are buying more.
Nansen dashboards provide a brief overview of what's happening in Shanghai.
The upgrade will help bring transaction costs down on the network, which could impact validators.
Michael Saylor is currently in the green with an average buy price of $29.803 per BTC.
If Michael Saylor had bought Ethereum instead of Bitcoin, his bag would be worth over 7 billion dollars.
Having a true decentralized and collateralized stablecoin is very important.
Even successful stablecoins like $USDC are still backed by central bodies, and there is a need for options that allow users to choose a completely decentralized option.
If you read these 3 Notes on Revelo Intel you would have saved: 2 hours and 29 minutes!
On the Brink Ep. 415 - Dennison Bertram on The Future of DAOs
This episode of On The Brink Podcast hosted by Nic Carter, joined by Dennison Bertram, co-founder & CEO of Tally discussed the regulatory pendulum, distributing Tokens, and the future of DAOs.
Read our notes below to learn more.
Introduction
Dennison
Dennison has been in the crypto space for a long time and he founded one of the first Bitcoin exchanges in the Czech Republic in 2012 which is called BuyBTC.
Dennison saw Bitcoin as the money of the machines which is relevant right now.
Money is the only human concept that can’t be natively transmitted over the internet.
Bitcoin is making the human concept successful.
Decentralized Autonomous Organizations (DAOs) feel like the future but it seems like there’s no application yet.
Nic
The history of cryptocurrency space and decentralized money is a huge market.
The decentralized operating system for launching applications is an unbelievably large market.
DAO
Dennison
Dennison thinks the DAOs, the application, and innovation are really gonna be in the order of the joint stock corporation in India.
Maybe in the future people will be studying corporate history, stock corporations, LLC DAOs, and other things in the future.
The DAO structure itself really scales.
There’s an entirely new class of digitally native infrastructure that needs to be governed.
Things like Bitcoin are public infrastructure and they are run by private individuals and companies all over the world.
It’s gonna be an enormous amount of innovation that corporate structure can’t be used for.
The opportunity gets larger when there’s a general partnership and stock corporation.
Over time, there are things that will rise and develop first as corporations like Artbitrum.
There are some DAOs with few members.
There’s a natural imbalance between the relationship of corporations to human good and DAOs to human good.
People want to maximize profit but there are social benefits that have to be prioritized and held in balance.
Productivity can be seen as a function of a goal or task, and DAOs will be an evolutionary start.
There will be more efficient organizations.
Nic
One of the things that are really beneficial to being a centralized company is to build really fast into the scale.
It’s different when owning a corporation, changes can be made.
Over time, it’s just a matter of who will make the choices and how will it be scaled.
Distributing Tokens
Dennison
Distributing power to the governance is very important for Dennison.
There’s is value in giving tokens, everyone provides liquidity, and everyone who bought an NFT gets some tokens.
The team should think very hard and long enough about the radiation on how they distribute tokens.
There’s a difference between the upper bound of what people receive and the lower bound of what people should be in Dennison’s opinion, which should be enormous.
People missed the point that systems used in token-related voting are designed for a one-person, one-vote democracy.
If a system was built in a decentralized way for only the banks of rich people, it is still a decentralized bank of rich people.
Rich people and banks have the same trust issues as regular people.
Building a system that allows banks to trustless deal with one another and know that there’s a system for managing disputes.
Representative governance is very functional.
Regulatory Pendulum
Dennison
The permissionless nature of the word DAO means that there are a lot of good actors and bad actors that were hiding under the same umbrella.
Somehow, there are a lot of bad actors that exploited the system at scale.
There are organizations that call themselves DAO even if they are not DAO.
Unfortunately, some large organizations use those setups.
On the other side, there are a lot of people who see an opportunity.
People recognized that there was a new organizational format with a new perspective and new opportunities to work on.
Other Needs of DAOs
Dennison
There are a lot of things Dennison gets excited about.
People who work in DAOs need things like better accounting tools for paying taxes, better tools for saving money, better wallets, and more.
Tally focused more on helping hyper-scale public infrastructure things be decentralized.
DAO will benefit by being able to prove their member or maybe not.