1/ imo, the ethereum community has been galvanized and is becoming aligned around the new rollup-centric roadmap recently described by @VitalikButerin.
2/ With the new rollup-centric roadmap, developers can now confidently expect their dapps to scale on ethereum, more or less immediately and into the future.
3/ Before the new rollup-centric roadmap, I think the extended community of ethereum developers felt a general sense of ambiguity around scaling. Should we just wait for sharding? Do we have to wait until sharding? Are people looking seriously at other base layers?
4/ At least since cryptokitties congested the network, concerns over ethereum's ability and timeline to scale have stoked developer interest in other base layers—especially interest in Polkadot, NEAR, and Solana, which I think are all excellent platforms.
5/ Developers may have found it temporarily easier to scale their dapps on other base layers vs. on ethereum.
However, ethereum now has the new rollup-centric roadmap, as well as huge adoption, the most mature tooling, and best-in-class property rights and censorship resistance.
6/ Ethereum's new reality seems to be that basically everybody is completely aligned around scaling ethereum today, by building support for L2s everywhere.
Plans for eth2's sharding, still years away, may be heavily modified to focus on supporting L2s.
7/ As L2 adoption grows, it seems likely that a handful of L2s will become disproportionally large and powerful, so it matters who owns them.
@optimismPBC is a community favorite and I think will be an exemplary leader here.
8/ Other base layers may increasingly struggle to attract ethereum developers on the promise of scaling alone, because ethereum now scales today and still has the best adoption and best-in-class property rights and censorship resistance.
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Curiously, the above debate's overview tees up stablecoins as riskier than tokenized deposits. But deposits are likely the riskier of the two, as they are fractionally reserved and loaned out, whereas stablecoins are moving to "full reserve" models, with no reserves loaned out.
When it comes to stablecoins vs deposits, imo the operative question may be, which has the greater opportunity to pass yield on to end users? Competitive pressures in crypto are extremely high. Today's big stablecoins (USDT and USDC) have a 100% take rate. That won't last.
"Significant governments globally are establishing their own stablecoin laws. ... [They] are enacting laws to regulate [their own] US dollar [stablecoins]"
Tomorrow, Jeremy says that to Congress.
American regulatory legitimacy is the final boss. Godspeed Jeremy. Some Thoughts🧵
Let me summarize Jeremy's remarks to Congress tomorrow:
Stablecoins are super useful. Today, by market demand, 99% of stablecoins are US dollars. If America wants to control its own currency's stablecoins and maximize US Dollar stablecoin market share, then we need legislation.
If America doesn't urgently pass a reasonable stablecoin bill, then other countries will soon own & operate the dominant *US Dollar* stablecoins, in addition to more effectively growing the market share of stables in their own currencies, due to the competitive void from America.
Devil Take the Hindmost explains how to navigate exuberant bull markets. Most of the behavior we see in bulls has been happening for at least hundreds of years. There's a big-picture playbook to learn and follow.
Tomorrow 3.0 explains why transaction costs matter, how to break them down, and helps you to see why crypto's superpower is selling reductions in transaction costs. Most crypto benefits we discuss, such as composability, are actually specific forms of transaction cost reductions.
Ledger Recover was a huge project. For many people, it might be a good solution.
However, the community invested in ledgers based on the firmware having no backdoor of any kind.
I have a starter proposal for us to put away the pitchforks🧵
I'd prefer that you kill Ledger Recover entirely.
I'd prefer that recovery be solved downstream in smart contract wallets.
If you don't kill it, I'd prefer that Recover be only available on a new dedicated kind of device.
Unfortunately, we're in a situation where we've all trusted and invested in your company and devices for years, and now you've betrayed us. "Betrayed" is harsh, but it is what it is.
You probably won't kill Ledger Recover. We need an immediate path forward.
First off, stables don't dodge monetary policy. A public market of privately-run stables is downstream of monetary policy because stables are subject to the ordinary forces of interest rates and liquidity.
However, given that the EU is the largest Western government actively pursuing the possibility of a China-style panopticon retail CBDC, it seems fair to say that a public market of privately-run stablecoins may be an effective substitute and competitor of such a retail CBDC.
Stablecoin legislation has been drafted in Congress
I read the bill.
TL;DR decentralized stables become illegal in the US (DAI, LUSD, RAI, etc. become illegal🚨) while centralized stables, defi, Ethereum, and ETH win big.
The Act also makes it illegal for a licensed stablecoin to be backed by reserves other than US-dollar equivalents. For example, it would be unlawful for a licensed stablecoin to be backed by reserves of gold, ETH, shares of Google, British Pounds, etc.
It seems really bad that the bill would make it illegal for American businesses or residents to receive unlicensed stables.
Imagine your buddy sends you 50 euro stablecoins for your trip to Paris. Oops, you're a criminal now.