$1 million distributed to 58 Ethereum projects

By November 17, 2021Ethereum
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$1 million distributed to 58 Ethereum projects 

Yesterday, Ethereum co-founder Vitalik Buterin announced that $1 million has been distributed to 58 projects developed for the Ethereum ecosystem.

Review of Optimism retroactive funding round 1, an exciting new mechanism-design experiment which distributed $1 million among 58 Ethereum ecosystem public-good projects in recognition of their good work for the ecosystem so far.https://t.co/ydq45x6m5w

— vitalik.eth (@VitalikButerin) November 16, 2021

Ethereum projects funded

The project that received the most funding was Ethersys, with $51,345, followed by go-ethereum and EthGlobal. Other funded projects include WalletConnect, Solidity and Etherscan.

This funding was provided last month by Optimism, thanks to the first round of retroactive funding for public projects on Ethereum. The aim is to reward the good work these projects have already done for the Optimism and Ethereum ecosystems.

The ranking of funded projects

According to Buterin, this is the first major retroactive experiment in funding public projects for general use, and the first experiment in a new type of governance through badge holders and a quadratic vote among a medium-sized group of 22 participants.

The whole process was transparent, as the rules the badge holders were supposed to follow were public, as were the list of nominated projects and all discussions among the badge holders. The votes of the individual badge holders and the complete results were also made public.

Successes and ambitions of the Ethereum funding system

Buterin believes that this first funding round of Optimism has been a success.

He says that many interesting and valuable projects were funded, and there was a lot of discussion before deciding who and how much to fund.

But at the same time, he suggests some ideas to further improve the process.

First of all, he proposes to increase the number and diversity of badge holders, so that there are no issues that only a small number of badge holders are experienced enough to deal with.

He also proposes to introduce some sort of two-tier appointment structure, to reduce the decision-making burden faced by the entire set of badge holders.

He would also like to increase discussion channels and ways of participation for non-badge holders, and address the issue of how to select new badge holders, or how to remove them in case of malpractice.

Currently, the selection is centralized, but Buterin would like to consider some alternatives.

A system of representative democracy

The first proposal, which is quick and easy to implement, would be to allow existing badge holders to vote for some new badge holders. But Buterin argues that, in the long term, this procedure should be replaced by “something with more open participation”, such as a “proof-of-humanity” vote.

In this case, it would be a kind of “representative democracy” to all intents and purposes, although the question of the actual weight of each individual vote remains to be resolved, since in decentralized systems each person does not have a single vote, but rather as many votes as he or she has tokens. Not being able to verify the identity of the voters in decentralized systems effectively prevents the creation of voting systems in which each individual voter is entitled to one vote, and one vote only.

Infrastructure Bill, a law to review crypto brokers 

According to a statement released by the spokesperson of Texas Republican Senator Ted Cruz, there is a bill in the works to repeal certain provisions on cryptocurrencies (including the definition of a broker) in Biden’s recently enacted 1.2 trillion dollar Infrastructure Bill.

“Broker”, the mistake in the Infrastructure Bill

Specifically, the senator would like to remove the paragraph defining the reporting requirements for “brokers” in the digital asset sector.

In fact, this attempt was already made in August in the Senate with an ad hoc amendment, which was then scuttled. Now Ted Cruz is trying again with a law.

The infrastructure package was signed on Monday by US President Joe Biden.

But the cryptocurrency world is in turmoil because of some of its provisions, which would be considered punitive for the sector.

Senator Cruz stated:

“As a deliberative body, the Senate should have done its job and held hearings to properly understand the consequences of legislating on this emerging industry before we risked the livelihoods and privacy of participating Americans”.

He then concluded:

“I urge my colleagues in the Senate to repeal this harmful language that will create regulatory uncertainty and in turn an unnecessary barrier to innovation”.

Infrastructure Bill hits the crypto world

The Infrastructure Bill, a massive $1.2 trillion public works plan over the next ten years, also contains some provisions on cryptocurrency taxation and regulation, which the cryptocurrency world has heavily criticized.

The bill envisages a cryptocurrency taxation plan of around $28 billion.

But what is generating the most heated discussions is the provision that would include cryptocurrency exchanges among financial brokers. It is this provision that Senator Ted Cruz would like to repeal.

The provision requiring exchanges to report all transactions over $10,000 to the IRS (US tax agency) is also unconstitutional.

Dr Amber Ghaddar, co-founder of DeFi startup AllianceBlock, strongly criticized the measure, asserting that the cryptocurrency world has a very different infrastructure from traditional finance and, therefore, applying rules that apply to traditional finance to the crypto sector

“shows a lack of understanding on the part of the government”.

New cryptocurrency bill proposed by Ripple

Ripple‘s regulatory case is still going on, but in the meantime, the company has put forward its proposed cryptocurrency bill.

The Ripple-SEC lawsuit

Although the end is not in sight, the lawsuit filed by the SEC against the blockchain company Ripple Labs seems to have reached a point of development.

The basis of the accusation is the classic one brought by the US Securities and Exchange Commission, namely the unauthorized sale of cryptocurrencies.

A few weeks ago, the SEC issued a new analysis of the structure that manages and supports the cryptocurrency XRP, which aims to make a difference in the banking market.

The announcement of the lawsuit, sponsored by Ripple Labs’ lawyers, caused the cryptocurrency to lose a lot of ground, especially at the beginning, but already for a couple of weeks, it seems that the value of XRP has settled on a rising line.

Ripple applied twice for an extension of time, which was anticipated by a letter filed with the prosecution for a new fact-finding session.

The SEC had also received a formal request from the blockchain company for an agreement between the parties so that the time frame would not be too long.

It seems that the SEC’s tone has once again started to become firm and not questionable. Ripple has therefore appealed to the Court.

Ripple’s proposed cryptocurrency law

The focus of Ripple’s strategy is to seek a connection between public and private finance. This is while waiting for a suitable regulation to foster its development.

The question of cryptocurrencies and their democratic capacity to bring innovation is still a topic that has not been fully resolved.

The CEO of Ripple, Brad Garlinghouse, said.

“Cryptocurrency and blockchain technology need clear regulatory and licensing frameworks designed to address and remedy the specific challenges to our industry. All of the proposed measures discussed in this framework aim to provide legal clarity to industry, markets, and consumers in a way that a regulation-by-enforcement approach simply cannot”.

What is lacking is an informative strand that is embraced by policy in order for the legal framework for digital assets to take a different and actionable form within financial policies.

Not all public policies are devoted to the experimentation or acceptance of digital currencies as a possibility of investment or return in the national economy.

A law must therefore be made to promote and protect the characteristics and possibilities of the decentralized world.

Susan Friedman, head of public policy at Ripple, said:

“Developing an effective policy framework for cryptocurrencies will only be possible if there is clear communication and collaboration between private and public actors. That is the reason why we have proactively discussed the issue on a bipartisan basis with regulators and members of Congress,” said Susan Friedman, Head of Public Policy at Ripple. “These conversations have helped shape our perspective on the type of regulatory clarity the industry and broader ecosystem need from regulators, as well as the type of requirements regulators should demand from the industry”.

New cryptocurrency bill proposed by Ripple

New legislative initiatives

The Ripple issue is reminiscent of many other realities surrounding the unlawful execution of crypto investments.

The SEC itself continues to obstruct even internal communication plans that could lead to real regulation, albeit in part.

There is, however, one bill that puts the discussion back on a level playing field. It is the Eliminate Barriers to Innovation Act.

This proposal envisages the creation of two different dialogue groups appointed by the SEC and the CFTC, as well as having the support of private and public companies. The cryptocurrency issue would be addressed in the direct way in which these differentiated assets are managed.

According to Ripple, working within new financial frameworks that partially regulate the management of crypto-related securities would be an important first step.

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