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Good morning, Tim here.
- The launch of Berachain has encountered difficulties.
- Ondo has introduced a new blockchain aimed at Wall Street.
- Justin Drake seeks to enhance Ethereum’s economic framework.
Short Sellers Focus on Berachain
Berachain, a blockchain themed around bear markets with a market capitalization of $3.2 billion, has not fulfilled its anticipated objectives.
Since its debut on February 6, internal sell-offs and an exaggerated initial valuation have exerted pressure on the initiative.
The native token BERA commenced trading at approximately $13 but is currently valued at around $5, indicating a decrease of over 60%.
As per on-chain information initially uncovered by the anonymous DeFi analyst Ericonomic, a wallet associated with an unnamed co-founder of Berachain liquidated nearly $1 million worth of BERA tokens obtained through Berachain’s airdrop.
“He may be experimenting in a live environment or simply aiming to boost liquidity, but in any case, this must be clarified and addressed promptly,” Ericonomic remarked.
The co-founder, recognized as Itsdevbear, who also functions as the project’s CTO, has not replied to this inquiry.
Numerous investors, including Arthur Hayes from Maelstrom, contend that the inflated initial valuation of the BERA token is a key factor contributing to the asset’s depreciation.
Investors have previously criticized cryptocurrency initiatives for launching tokens at exaggerated valuations.
“If a project debuts with a billion-dollar valuation, investors will doubt its growth potential,” Marc Weinstein, a partner at the crypto investment firm Mechanism Capital, stated to DL News.
Ondo’s New Blockchain
Ondo Finance stands as one of the most prominent tokenized U.S. Treasury issuers, intending to introduce its own blockchain to draw Wall Street investors into the cryptocurrency arena. This blockchain, referred to as Ondo Chain, is currently being developed with the involvement of several leading global financial entities, as disclosed by Ondo’s Chief Strategy Officer, Ian De Bode, during the Ondo Summit on Thursday.
In order to tackle Wall Street’s regulatory apprehensions, the validators on Ondo Chain will be restricted to selected participants. “This signifies that only reputable and reliable—generally regulated—organizations will be permitted to operate validators,” De Bode remarked. “It also implies that when you join the chain as an investor, you can be confident that your transactions will not be front-run, and you can benefit from safeguards akin to those found in conventional finance.”
Financial organizations that are wary of public blockchains, which are accessible to anyone—including hackers from North Korea—have previously endeavored to establish their own invite-only blockchains, yet most of these initiatives have resulted in failure.
### Ethereum Developments
Ethereum has not succeeded in its ambition of becoming “ultrasound money.” This viewpoint is held by Ethereum Foundation researcher Justin Drake, who has put forward several recommendations to help mitigate the issuance of new Ether.
To this end, Drake advocates for lowering the exorbitant fees on the Ethereum blockchain. Reduced fees would imply that fewer Ethers are eliminated with each transaction, but this decrease in “elimination” would be counterbalanced by new users who were formerly discouraged by high fees now engaging with the blockchain.
“Handling 10 million transactions per second at $0.001 per transaction is significantly more lucrative than managing 100 transactions per second at $100,” he emphasized in an extensive post on the X platform. Furthermore, Drake aspires to impose a limit on the quantity of new Ether generated through staking.
He suggested a distribution curve for Ethereum that is akin to a croissant—while this analogy is distinctive, its implication is straightforward: once a quarter of all Ethereum is staked, the quantity of newly generated Ethereum will peak at 1% of the overall supply. As additional Ethereum is staked, the generation of new Ethereum will slowly decline, eventually reaching zero when half of the Ethereum is staked.
“In my view, a soft cap of 50% staking appears both impartial and sensible,” Drake remarked.
At present, roughly 27% of Ethereum tokens have been staked. Crypto Magnate’s $AUCTION Token Collection Ends in $3.76 Million Income
**This Week’s DeFi Governance Developments**
– Vote: Gnosis DAO has opted to convert Karpatkey into a DAO and distribute KPK tokens.
– Vote: GMX DAO is deliberating on utilizing fees to improve token liquidity.
– Vote: Arbitrum DAO has resolved to boost the budget for the Stylus Sprint initiative.
**This Week’s Articles**
Kevin Owocki, the writer of “How to Build a DAO,” shared his thoughts on Uniswap’s recent advertising image.
