Johnny

#DEXman. proud 🇨🇿
economics @wharton, CS @ETH

[Johnny @0xDavio]

@brunokoba_ Not able to DM you but I’m happy to chat with him and possibly refer into a few firms or a QR/QT recruiter!

[Johnny @0xDavio]

Sounds like @MakerDAO endgame

[Omid Malekan @malekanoms]

If economic security is only a meme, then a PoS chain doesn't need a native coin. You can--and arguably should--run the whole thing on a stablecoin.

Validators can stake some minimum amount of it (eg $10k) to achieve Sybil Resistance. Users can pay some minimum fixed amount per transaction (eg 0.01 cents) for SPAM/DDOS protection. You can have a priority fee to accommodate congestion.

You could even have slashing, and it would be easier to implement than via a native coin. The stablecoin issuer could just destroy the dollar coins of validators who misbehave.

The UI/UX and branding benefits of running a chain this way would be massive. Imagine advertising a blockchain to the general public where all costs are denominated in the world’s most familiar currency:

“Come use our chain. Trading a memecoin costs a penny and minting your own NFT is a nickel.”

Users wouldn’t have to do mental gymnastics to convert gas costs, and the endless volatility of crypto markets wouldn’t arbitrarily change the cost of using your chain.

Becoming a validator on such a chain would also be easier and in many ways more appealing: people can calculate the cost/benefit in dollars. The activity would have a dollar yield, like a bond.

Wall Street would love it!

Of course the one downside to this approach is that the stablecoin issuer has a lot of power and is a centralized point of failure.

But this isn’t a problem when economic security is only a meme, because any chain based on that philosophy--particularly one that doesn’t even have slashing--is relying on the social layer for liveness and safety anyway.

Why do validators on a chain that does have a native coin, but doesn't have slashing, behave in the first place? Because they can be blocked/censored by other validators. It's like being part of the popular crowd in high school, the threat of being ostracized is massive (just ask Regina George)

The same pressure and threat of coordinated off-chain action that keeps validators not subject to slashing in check on existing chains can be used to keep the stablecoin issuer in-check on the new chain.

Better yet, the native stablecoin could be issued by the Foundation.

The float from it would be a great source of revenues for them. They can even use it to give extra rewards to the validators they like, or to geographical dispersed ones located in different data centers all over the world. The Nakamoto Coefficient would be impressive.

Would issuing the native stablecoin that runs the whole chain give the Foundation a lot of power? Of course.

But that is actually a positive, because a chain that doesn’t believe in economic security is dependent on off-chain coordination, so it needs a powerful Foundation to restart or revert the chain if something goes wrong.

In the event of a liveness or even safety failure, all validators would have an incentive to do as the Foundation instructs and to do so quickly.

Arguably the biggest benefit of this approach is that you no longer have to deal with the endless confusion and complexity of having a native coin. This would be highly appealing to no-coiners in Tech, Academia, on Wall Street, and in Government, for the simple reason that there's no coin.

It's just a distributed cloud computing platform that offers tokens and smart contracts.

I could just hear the positive pontification by @TheStalwart on Odd Lots. "So it's like Ethereum, but users pay dollars and the people running it make dollars? And you don't have to worry about regulatory uncertainty or what happens if the crypto markets crash again? Tracy I don't know about you, but I find this compelling."

(Would @matt_levine like this? Maybe not, but only because there'd be less chaos and fewer shenanigans to write about).

Of course not having a native coin also means there’d be no inflation, no early VC rounds, no low-float high-FDV launch, no powerful insiders, and no mercurial vesting and lockup schedules.

But that’s an even better plus, because blockchains exist to provide a valuable service, not to benefit a select few.

When you zoom out, having a native coin makes no sense for a chain that mostly values social coordination. Not only does the coin not do much, it has questionable value accrual in the long run.

Economic security is the ultimate source of value accrual for a native cryptocoin. This, above all else, was Satoshi's greatest insight.

Anyone who believes that economic security is overrated should build a dollar-run chain instead.

They can call it Socialana.

[Johnny @0xDavio]

@neelsomani @inversebrah

[Johnny @0xDavio]

Exploring new CEX on @Solana made by #BONK

[Johnny @0xDavio]

Thank you for reviewing my first thread. Provide your feedback below.
I just wonder which DEX I should do again, I am becoming a #DEXMAN
~ John, CR ex-trader

[Johnny @0xDavio]

DEX #36: @PhoenixTrade_ (an interface for @ellipsis_labs) 🔥🦅
Blockchain: @Solana
Rating: 7 / 10

Since my post about @cubexch receive likes, I decide to do a review of Phoenix, which appear to have just launched its website. John's first 🧵

[Johnny @0xDavio]

Important links:
1. Phoenix exchange website: https://t.co/ynOLlJsbUI
2. Technical overview https://t.co/ElmJWCctWJ

[Johnny @0xDavio]

After spending the last few months going down the DEX trading rabbithole (I think I have tried 35 different ones), I stumbled into @cubexch on #Solana, which is now coming out of stealth. Very excited to be a part of the beta! Thanks @baalazamon and team 🥶🧊

[Johnny @0xDavio]

@gadikian @EffortCapital @KyleSamani @Uniswap I believe the point Kyle is making is that for X & Y to matter, you need large quantites of X & Y (liquidity), which application-specific chains currently lack. Do you have any data or projects on USDC or USDT supply on app-chains? TIA

[Johnny @0xDavio]

@segfaultdoctor @toly @buffalu__ @crispheaney Wow the implied TPS via replies to this tweet will likely surpass Aptos in the next 4 minutes. Please provide ticker for this new #L1, I am ready to maximum bid

[Johnny @0xDavio]

@macbrennan Important point about transparent reporting (Swiss Foundations do not have reporting responsibilities which American nonprofits do)! Would be good to hear from @SolanaFndn leadership @mattwyndowe @Austin_Federa https://t.co/D9OqOFGw4N

[Johnny @0xDavio]

@Austin_Federa @sumatt @macbrennan @0xShitTrader @Hactar0 @bennybitcoins In strong favor of a rich grants program! But as a charity maxi who understands foundation is a non-profit, shouldn't Foundation have a responsibility to report income, expenses, assets, and activities? This would establish a lot of credibility in the ecosystem. Alas, EF.

[Johnny @0xDavio]

@0xngmi Definitely @MetaMask and other leading wallets, but I doubt you are able to track this?

[Johnny @0xDavio]

@brian_smith_0 @Austin_Federa @barrett_io Agree https://t.co/OGBW9aq1eE

[Johnny @0xDavio]

@Austin_Federa @sumatt @macbrennan @0xShitTrader @Hactar0 @bennybitcoins In strong favor of a rich grants program! But as a charity maxi who understands foundation is a non-profit, shouldn't Foundation have a responsibility to report income, expenses, assets, and activities? This would establish a lot of credibility in the ecosystem. Alas, EF.

[Johnny @0xDavio]

@Austin_Federa @barrett_io There is a wide space of disclosure between everything and nothing. See below comment!

[Johnny @0xDavio]

@Austin_Federa @sumatt @macbrennan @0xShitTrader @Hactar0 @bennybitcoins In strong favor of a rich grants program! But as a charity maxi who understands foundation is a non-profit, shouldn't Foundation have a responsibility to report income, expenses, assets, and activities? This would establish a lot of credibility in the ecosystem. Alas, EF.

[Johnny @0xDavio]

@Austin_Federa @sumatt @macbrennan @0xShitTrader @Hactar0 @bennybitcoins (Yes I am aware Swiss Fnd's do not have to file w IRS 990 and not subject to AEOI, @lex_node @LeXpunK_Army would surely know more though, curious your opinion team)

[Johnny @0xDavio]

@Austin_Federa @sumatt @macbrennan @0xShitTrader @Hactar0 @bennybitcoins In strong favor of a rich grants program! But as a charity maxi who understands foundation is a non-profit, shouldn't Foundation have a responsibility to report income, expenses, assets, and activities? This would establish a lot of credibility in the ecosystem. Alas, EF.