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$PSTAKE and $XPRT are Poised to Make Persistence the Epicenter for Liquid Staking in DeFi

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$PSTAKE and $XPRT are Poised to Make Persistence the Epicenter for Liquid Staking in DeFi


Across the proof-of-stake (PoS) industry, a vast number of users and protocols have been long reaping the benefits of the PoS consensus mechanism. It is not only an easy and practical way to secure blockchain networks but also a fool-proof way for users to earn high APYs in exchange for their participation via staking. However, the fact that staked assets remain locked for extended periods of time, limits their usability and deters many users from staking altogether.

This is precisely why liquid staking as a means of unlocking liquidity of staked assets is being explored within DeFi, and leading the charge in this realm is the Tendermint/Cosmos-based Persistence network. Persistence empowers the creation of an ecosystem of products that help make liquid staking the default form of staking. And with the tokens $XPRT and $PSTAKE at the helm of operations to capture the value of this ever-growing ecosystem, the Persistence network is poised to become the epicenter for liquid staking in DeFi.

A Symbiosis Like Never Before

As mentioned before, Persistence is a layer-1 blockchain network that aims to build an ecosystem of products to promote liquid staking in the industry. For the uninitiated, liquid staking is a way of issuing tokenized versions or derivatives of staked assets to unlock their liquidity and allows them to be stored, transferred, used in DeFi, or spent just like any other tokens. In this regard, pSTAKE, the signature product and the cornerstone of the Persistence ecosystem, is the epitome of liquid staking.

It allows token holders to stake their PoS assets via the pSTAKE protocol to receive 1:1 pegged stkASSETs as representative tokens that can be spent or used to generate additional yield with DeFi protocols. The PoS assets staked via pSTAKE are staked with top validators on their underlying networks. This means that users while reaping the full staking rewards for assets on underlying networks, will also have the opportunity to re-use those assets on DEXs and DeFi lending protocols. As such, $PSTAKE is the native governance token of the pSTAKE protocol that gives holders the right to participate in platform governance by staking the token.

Along with this, $PSTAKE is also used to incentivize the use of products and protocols built by the Persistence network to create innovative use-cases for the unlocked stkASSETs. A protocol like this is poised to unlock liquidity of billions of dollars worth of assets staked in DeFi, and by incorporating them into other protocols within the industry, will contribute to the growth of DeFi as a whole.

While pSTAKE is its signature protocol, the Persistence network has plans for an entire ecosystem of DeFi protocols that incorporate the stkASSETs at the core of their operations and create utility for them. And $XPRT as the native token of the Persistence chain is in a unique position to foster the development of these new protocols and capture the value of the ecosystem. Users of pSTAKE and these new protocols will pay user fees and gas fees in $XPRT, which are then partly funneled to $XPRT stakers who are helping to secure the persistence chain.

As such, both $PSTAKE and $XPRT have a unique symbiosis with each other. While one of these fosters the growth of new utilities for liquid-staked assets, the other incentivize their use, ultimately positioning Persistence as the go-to liquid staking platform.

The Next Generation of DeFi

With DeFi’s mainstream adoption underway, the industry is taking strides toward fixing gaps that could potentially hinder its adoption. In this regard, the lack of utility for staked assets is a problem that was glossed over for a long time and only recently has come into full view. Now, with networks like Persistence taking steps towards closing this gap with liquid staking, the next iteration of DeFi will move from mere speculation towards real-value creation, creating a brand new financial infrastructure for users.

 

 

 



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Blockchain

censorship resistance and nodes disrupting tech giants

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censorship resistance and nodes disrupting tech giants


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In the twenty-first century, blockchain is the only practical route to privacy and censorship resistance

Privacy and censorship resistance are not the same things, but they are closely related. When the government or another organization, like an advertiser, has complete access to your activities, they can punish you for misbehavior.
It might be time to move quickly to ensure that seismic cracks in Web2 aren’t repeated in Web3. This would be preferable to going backwards and trying to patch up Web2 flaws with duct tape. The so-called internet of the future might actually safeguard our private information and stop zealous or oppressive censorship by taking proactive measures before these problems get out of control.

Encryption is used to send the message

Suppressing open communication and free speech in nations battling for civil liberties and human rights makes it harder to overthrow repressive governments. Here, the blockchain technology’s transparency and encryption features can help to protect sensitive data. File-sharing platforms like the InterPlanetary File System and Web3-based email extensions like ShelterZoom’s Document GPS may be able to assist activists and citizens in hotspots for human rights in avoiding censorship and unauthorized surveillance.

When files are placed on a ledger, the sender has complete control over visibility and permissions and has access to a time-stamped record of all actions involving the file. Imagine it as Google Docs or DocuSign on steroids.

It’s simple to see how these blockchain-based tools are essential in a system with strict surveillance and censorship laws. Blockchain is also used in these kinds of solutions to address the censorship blind spots in cryptocurrency. Contrary to the widespread belief that cryptocurrencies are inherently private, transactions are stored on an open, transparent distributed ledger. Because of this, they can be tracked even more precisely than conventional financial transactions.

The truck convoy blockade in Canada, which accepted donations in Bitcoin, which could be easily tracked and sanctioned, learned this lesson the hard way. Crypto is much more transparent than traditional finance, according to Michael Gronager, CEO of the blockchain data company Chainalysis.

Crypto is far more transparent than traditional finance. […] We follow the funds

Why then is crypto known for being censorship-resistant? The decentralized ledger, which is very hard to take control of and makes transactions immutable once they are recorded, is part of the solution.

Tomi, a producer of Web3-based decentralized solutions and assisted-computing hardware, is one network working to provide total anonymity. With the help of 72 developers and eight anonymous senior crypto veterans, Tomi is creating TomiNet to enable the unrestricted exchange of information between journalists, activists, and generally law-abiding citizens. While the anonymity features of TomiNet are comparable to those of the dark web, the network is controlled by the Tomi community via a decentralized autonomous organization (DAO) to ward off undesirable or harmful activities.

The basic tenet of DAO governance is to keep corporations and governments out while still providing a means of combating violence.

Decentralization is more than just a theoretical necessity

The controversial right-wing social network Parler being banned from cloud-based web hosting services like Amazon Web Services is another noteworthy instance of gatekeeping in Big Tech. The cloud is hailed as a truly advantageous component of internet infrastructure. However, the problem is that only a small number of cloud providers offer essentially all necessary infrastructure, giving them the authority to serve as gatekeepers.

Whether or not you support Parler’s ban, the incident shows how a business can be effectively barred from using the internet because a cloud service wouldn’t work for them.

A critical fix might be provided by decentralized web hosting. Businesses like Akash and Flux provide a variety of cloud services that are essential in the internet age, but by utilizing decentralization, they limit the ability of the cloud service to exert control over users.

The instances of powerful governmental and private organizations stifling free speech and communication are increasing daily. The time has come for Web3 to step up, but this time with more vigor and clarity than before. Privacy and censorship resistance are mutually dependent; without the other, neither is meaningful. If the cryptocurrency industry is to live up to the lofty expectations placed on it, it must keep this in mind.

Today, maintaining privacy is practically impossible. Every person is vulnerable to unintentional exposure, from data theft incidents to governments tracking citizens. TikTok recently confirmed that staff, including those based in China, can access user data in an update to its privacy policy for the European Economic Area. As a result of the Iranian regime’s ongoing repression of protesters, the populace is afraid to criticize the government.

Nodes will depose tech oligarchies like Google and Apple

Marc Andreessen’s seminal 2011 essay, “Why Software Is Eating the World,” was well-regarded even at the time it was written and has since proven to be even more prescient than it seemed. Andreessen argued that every company was now ostensibly a software company, whether the company liked it or not, at the beginning of a decade in which software would prove invaluable to almost every aspect of modern life.

His ideas eventually applied to businesses that either hadn’t fully defined their markets or didn’t even exist yet but would go on to generate billions in market share, including Uber, Lyft, TikTok/ByteDance, Robinhood, and Coinbase, to name a few. He adapted his argument to many of the market leaders at the time. Software was probably going to be a crucial component of becoming a unicorn in the twenty-first century.

The emergence of true cloud computing and cloud giants, an industry in which Andreessen himself had been a pioneer at a time when many inside and outside computing were scoffing at the notion, was the covert force behind this complete disruption of modern economies and life.

But making so many aspects of life so simple came at a high price

They had stopped scoffing entirely by the second decade of the twenty-first century. Global spending on cloud computing increased by more than quintupling in the 2010s, going from $77 billion to $411 billion. The computer in our pockets relied on it to make everything available at the touch of a button.

As with anything else, the mobile-powered software revolution had trade-offs even though it made life as simple as pressing a button. Software has taken over the world, making very few, very large cloud hosting companies the dominant force. Currently, 65% of the market for cloud hosting is dominated by Amazon, Google, and Microsoft.

By using cloud hosting, this established a monopoly of sorts. For instance, hosts can remove services from clouds when using cloud hosting, as Amazon did with the infamous social media service Parler. The Apple App Store also prohibited Parler from using it.

Whether or not you concur with a service like Parler doesn’t matter when it comes to the bigger issue at hand. The incident proved that, in the post-software world, it only takes two corporations—Amazon and Apple—to completely shut down a service, effectively forcing it out of business.

What happens if a developer or service violates a less serious Amazon policy or term of service? The internet has been forced into a corner where it can no longer truly function as a marketplace for free ideas and development, especially if that development is in some way seen as a threat by businesses like Amazon and Microsoft.

A new world can be created by nodes

Newer blockchain protocols have the potential to “break” data in a world consumed by software and oligopolistic companies, allowing us to think about the exchange of that data in new ways, just as Bitcoin “broke” money and allowed people to think about the exchange of value in new ways.

Web3 and the initiatives it will spawn promise to fundamentally alter how information lives and is transmitted through the internet in a transparent and self-sufficient manner. Ecosystems that prioritize decentralization and the community promise to return control to programmers and, by extension, the users of their decentralized applications (DApps) and software. This will make it possible to create a common framework that supports best practices and economies of scale and can compete with the biggest centralized internet entities.

This is not to say that a decentralized utopia has already been attained. Ironically, despite the fact that decentralized systems are also ostensibly “trustless” systems, both users and developers still need to develop trust in these systems. Whatever the drawbacks of relying on corporations like Amazon, Google, Microsoft, and Apple, they have built up decades’ worth of that trust, credibility, and familiarity that makes it challenging for users and developers to adopt a completely different way of doing things.

Rewiring the incentive model that has supported the last several decades of the internet is a part of establishing that trust. In order for a new decentralized internet to function, users will need to invest in nodes, and developers will need to make the most of those nodes by creating software that is as easy to use on a phone as Uber or Wordle.

We can rebuild the world that was destroyed by software, one node at a time, if the decentralized Web3 community is successful in doing that.

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Investment

Sushiswap developers propose to divert 100% of fees generated to Sushi’s multisig

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Sushiswap developers propose to divert 100% of fees generated to Sushi’s multisig


  • Sushiswap developers have submitted a new governance proposal to the community.

  • The proposal seeks to divert 100% of fees generated on the platform to Sushi’s multisig.

  • The funds would be used for Sushi’s multisig for a year or until new tokenomics are implemented.

Sushiswap developers want to divert trading fees

Developers of the decentralised finance (DeFi) protocol, Sushiswap, have submitted a new proposal to the community. According to the proposal, 100% of the fees generated on the platform would be diverted to Sushi’s multisig for one year or until new tokenomics are implemented.

This latest cryptocurrency news comes as Sushiswap is currently facing a significant deficit in its treasury. The deficit threatens the protocol’s long-term operational viability. 

In his proposal, the Head Chef, Jared Gray, said;

“After reviewing expenditures, it’s clear that a significant deficit in the Treasury threatens Sushi’s operational viability, requiring an immediate remedy. In my original proposal, Sushi operated with an annual runway of 9M USD. However, after my detailed review, we reduced that requirement to 5M USD. We made the reduction possible by renegotiating infrastructure contracts, scaling back underperforming or superfluous dependencies, and instituting a budget freeze on non-critical personnel and infrastructure.”

Despite reducing the project’s annual runway requirement from $9 million to $5 million, the treasury still provides for only about 18 months of runway.

The developers are now proposing to set up Kanpai, a fee-diversion protocol. The proposal, if accepted, will lead to 100% of fees diverted to the Treasury multisig for one year or until the project’s new token distribution and reward schemes become active. 

Sushiswap’s fee-diversion solution is temporary

The developers pointed out that the proposal is a temporary solution to a long-term problem. The proposal was put in place because new tokenomics will take time to implement

The Head Chef said;

“Kanpai is a temporary solution to a long-term problem, and a new tokenomics proposal is on the horizon, which will help address the long-term value proposition of Sushi for stakeholders. Sushi must implement a holistic token model that allows the rebuilding of the Treasury and delivers value for all stakeholders while reducing the fiscal liability carried solely by the protocol.”

In addition to Kanpai, the Sushi team said it increased its funding by securing several multi-million dollar partner deals. 

However, the developers added that relying on business development deals is only part of a successful business model to secure Sushi’s future. In October, asset management firm GoldenTree invested $5.2 million in Sushiswap.



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Regulation

Kazakhstan Continues Bitcoin Mining Regulation – Bitcoin Magazine

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Kazakhstan Continues Bitcoin Mining Regulation - Bitcoin Magazine



Kazakhstan is moving forward with regulation that will further stifle its bitcoin mining industry.

The country’s federal parliamentary body has completed secondary approval of a bill “On Digital Assets in the Republic of Kazakhstan.” With a third approval, the legislation will introduce new licensing requirements for bitcoin miners based on their facility ownership and operational structure. It would also require that miners purchase their electricity from the energy provider Korem at market rates.

Previously, specific reporting and tax requirements were implemented, including registration of names, locations and quarterly reports to the government. These occurred as a result of the major influx of mining amidst energy shortages and protests, all while bitcoin miners fled China as a response to the government’s banning of bitcoin.

Kazakhstan’s close proximity to China and previously highly favorable energy access led to the large amounts of hash rate migrating to the country. Afterwards, Kazakhstan went as far as seizing up to $200 million in mining equipment who did not comply with regulation, and the country continues to try and absorb the benefits of the influx in bitcoin mining using legislation like this most recently approved bill.

Bitcoin Magazine previously reported on regulation in Kazakhstan, citing a report from the Russian media outlet Tass. In the report, Ekaterina Smyshlyaeva, a member of the Committee on Economic Reform and Regional Development of the Majilis (Kazakhstan’s federal parliamentary body) detailed the government’s intentions, describing how, “Kazakhstan was used as a raw material appendage of the blockchain industry. [Through] bills, we oblige miners to license in Kazakhstan, that is, to create legal entities and become full-fledged subjects of taxation.” 



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