misaka Profile picture
May 2 15 tweets 4 min read
2 of the most used blockchains Solana and Ethereum became *unusable* for a while yesterday.

Both actually share 2 sides of the same problem:

The Race for BlockSpace 🧵👇
2) For Context:
🦧ETH became *unusable* because it costs too much gas (1.5 ETH) to do anything as APEs bid for high gas to mint Otherdeed land

◎ Solana on the other hand got spam >100Gbps so bad by NFT bots for block space that the network had to shut down and restart
3) BlockSpace is a commodity 🫧

- Blockspace has different values depending on chains ⛓️ you are in ( i.e. more valuable on ETH and less on Fantom, etc)

- Blockspace is valued differently based on Time ⏲️ (more valuable during NFT mint, congestion, etc)

4) ETH and SOL have 2 very distinct BlockSpace types to solve the BlockSpace race.

🦧ETH: BlockSpace- type L, limited supply, price(gas fees) scale according to demand

◎ SOL: BlockSpace- type U, unlimited supply, more demand increases BlockSpace supply instead of price
5) Advantages of Limited BlockSpace (Type L) 📦:
- Bots 🤖 are penalized (limit spam)
- Anyone can send transactions through albeit paying the market price for Blockspace

- Surge pricing during congestion ⛔️
- scalability (can be solved with Rollup)
6) Advantages of Unlimited BlockSpace (Type U) 🧱:
- more scalability ⚖️
- flat fees

- bots will literally take down the network to mint JPEG 🎨.
7) Why can't you have both cheaper fees and more block space?
A lot of these have to do with making tradeoffs in the Transaction Quality Dilemma, outlined here

8) Would a new L1 solve gas wars? Unlikely

This is a problem of paying a higher ⚡️fee so your transaction gets prioritized and not a problem of sending any transaction through

As long as the cost of mint fits the budget, people will still pay higher gas

9) Could Otherdeed design a better mint mechanic⚙️? short answer yes

- Dutch Auction and Long sale duration are designed to prevent gas wars ⛽️

long answer why?
what better narrative than *ETH can't support our Blockspace demand, we need new L1*

Broke: Use Dutch Auction

Woke: Caused Gas Wars to promote new L1

*Your users can't afford to burn money, mine can.*

We are not the same

* this is a joke btw, don't take it too seriously
11) Back to SOL◎
Solana is having this problem because there are no effective fees market.
bots are literally spamming with no penalty ⛔️

On Eth, you at least still pay high gas for failed transactions.
12) How does Solana plan to solve this problem? 🏗️

- limit spam: QUIC -> TLDR; Rate Limit Spam 🦔
- introducing per account fee market: NFT mint will only cause surge pricing for NFT mint and not for other users
BlockSpace as a commodity is a new thesis currently in development 🖥️.
It will likely play a significant role in the near future but may be too early for now.

There are other factors that play a role 👑 here as well MEV, Rollup, Gaming, etc.
*Further Clarification:
To prioritize Txs so you can mint NFT first, you can do 2 things:
- ETH (Limited Blockspace): pay higher gas
- SOL (Unlimited Blockspace/ Flat fees): spam to make sure your Txs are in front.
*on ApeChain new L1:
new L1 with more backspace doesn't necessarily fix this (more blockspace -> more spam) unless you have spam detection (QUIC, etc).

ImmutableX L2 on StarkEx was able to achieve this although this introduces a bit of centralization

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More from @0xmisaka

Apr 25
Trifecta of making money in crypto: MEV, Buildoor, and NFT 🧵👇

No BS; making $10m a year is not hard in crypto if you have skills + focus

1/x Image
First, you need to understand the meaning of Asymmetric upside: the rewards are magnitude more than what you sacrifice.

Example of Asymmetry: Building Stuff, MEV, etc

Example of Symmetry: going to college, getting a job, etc

primarily, focus on Asymmetry and take risks.

2/x Image
Basically, you need to drop out and take risks.

misaka has seen a lot of dropouts building in web3 and making >$3m.

Never look back.

Read 24 tweets
Apr 20
NEAR Mega Thesis 🧵:

@NEARProtocol blockchains with:
- Solana TPS + speed
- AVAX EVM ecosystem
- Terra algo-stable

Everything you need to know before $USN launches tomorrow.

@ilblackdragon @mattdlockyer @Cameron_Dennis_
@nearbigbrain @j0hnwang @Nakameowdough

1/x Image
NEAR Edges 🧀:
- $800m+ in ecosystem funds from basically all the VCs
- $USN
- Thriving NFT community
- Sharding
- Aurora - faster EVM chain than AVAX-C-chain
- Trustless Rainbow bridge


The repo binary-star was leaked. The design and incentive structure is very similar to Terra UST.

There will be 3 stability mechanisms:
- NEAR and stablecoin Reserve Fund backed
- On-chain arbitrage contract
- StableSwap stabilization

Read 28 tweets
Apr 5
1/ Transaction Quality Trilema🧵
How it relates to MEV, gas fees, and decentralization.

Why do your Txs fail?
Why are fees so high?

@epolynya @sxysun1 Image
2/ In an ideal world, the highest transaction quality means
- anyone can send a transaction (no censorship)
- no spam
- low fees

Obviously, this is not possible so you can only have 2 of the 3. Some compromises need to be made.
3/ MEV made this a very difficult problem to solve.

- no spam + low fees: censorship like web2 is needed
- no censorship + low fees: MEV searchers will always spam to get their Txs in front
- no censorship + no spam: You need a fee market to prioritize Txs.
Read 7 tweets
Mar 23
$100k profit starting with just $200 in a single transaction.

Best #solana MEV from @CashioApp hack 🧵👇

Thoughts? @wireless_anon @buffalu__ @raggedsec Image
Another $76k profit from just $12 in a single transaction Image
What’s better? Some main course

Another $60k profit starting from $12 Image
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Mar 22
MEV on Solana Cookbook: Arbitrage 🧵👇
$20m profits from arbitrage in 90 days

Here is everything you need to know about MEV on Solana.

Would love thoughts from @bertcmiller, @samczsun,
@sxysun1, @wireless_anon, and @buffalu__

1/10 Image
I wrote a custom script to ingest the data and calculate the total arbitrage in the past 3 months.
Here are what I found:

There were $20m of arbitrage profit made in the past 90 days. Here is the time vs. profit chart

2/10 Image
However, it's important to note that the number goes down to $7m if not including $13m of arbitrage 30 minutes after the wormhole incident.

I made a separate thread a few weeks ago about arbitrage during wormhole here:

Read 15 tweets
Mar 14
1/ A Thought Experiment:
The Ship of Theseus of Blockchain and L2.

Blockchain has 3 comps: Execution, Consensus, and Data Availability (DA).

Replacing Exec:
At first, L2 starts out as replacing just the execution layer and rollup on the Eth consensus layer.
Replacing DA:
There is also work being done like Celestia and Avail to replace DA but still relying on ETH as a consensus layer.

Replacing Consensus:
Finally, there is a solution like Arbitrum's Anytrust to replace ETH consensus with a committee and post block hash on ETH.
3/ Question: If we keep replacing the chain's main components and just use them as a fallback,
Is it still fundamentally the same chain, is it still ETH?
Read 4 tweets

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