🔥 Surging Burn Rate Drives First Deflationary Week for ETH Issuance
Hello Defiers! Here’s what we’re covering today:
Trending in The Defiant
The open economy is taking over the old one. Subscribe to keep up with this revolution. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button below ($15/mo, $150/yr).
🙌 Together with:
Zerion Zerion is Mission Control for Web3: an intuitive DeFi portfolio manager, multichain tracking & trading and the best place to show off your NFT collection
Cryptex Finance (CTX) the fully decentralized creators of TCAP, The World’s First Total Crypto Market Cap Token.
DESTROYED Ethereum has posted its first consecutive week of deflationary issuance amid surging network activity, meaning more ETH was destroyed than created over the past seven days.
ISSUANCE More than 1.5M Ether has now been burned since EIP-1559 introduced Ethereum’s burn mechanism in early August. Nearly $5B worth of ETH has been destroyed in less than six months. Ethereum’s issuance rate also recently dropped below that of Bitcoin for the first time.
REWARDS The milestone bodes well for Ethereum’s coming 2.0 roadmap. The Merge is expected to drive a further 90% reduction in ETH issuance with the introduction of Proof-of-Stake consensus, putting an end to block rewards for Proof-of-Work miners.
LOSSES OlympusDAO (OHM) and many of the forked rebase projects it inspired have suffered brutal losses this past week despite the broader DeFi markets rebounding from last week’s lows.
BURN RATE The tumultuous markets have also pushed Ethereum’s seven-day burn-rate up to 11 ETH per minute, while the Fantom, Arbitrum, and Terra networks each posted significant TVL growth for the week.
TOKEN OHM ranks as the weakest performing top 100 DeFi token for the week according to CoinGecko. The token is down roughly 53% since Jan. 10, including a loss of 32.6% in the past 24 hours.
LAUNCH Even the Chinese government is down with NFTs now. China’s state-backed Blockchain Service Network is planning to roll out infrastructure enabling the creation and launch of NFTs by the end of this month.
NO LINKS Yet with public blockchains and decentralized crypto assets prohibited in China, the country has largely sat out of the NFT boom. In a Medium post published on Jan. 17, BSN said that its NFT ecosystem will have no links to cryptocurrency and all transactions will be settled in Yuan.
LOCAL ENTERPRISES “As cryptocurrency is banned in China, the payments […] are in fiat currency to comply with the Chinese regulation,” the post said. The BSN is a blockchain network backed by the Chinese government intended to allow local enterprises to harness DLT without risking running afoul of local anti-crypto regulations.
The intersection of socially responsible investing and DeFi has the potential to alleviate poverty and support the developing world, Gabriela Chang writes.
While global crises are never welcomed, they do tend to kick people to find solutions to crucial challenges.
After the 2008 financial crisis, for instance, interest in impact investing grew. The COVID-19 crisis has further demonstrated the need for cooperation through investing strategies that are driven by values and ethics as much as profit.
Since the pandemic began in early 2020, we’ve seen an increase in the number of companies building out dedicated ESG teams, according to the head of J.P. Morgan’s Development Finance Institution. And institutional investors are launching more impact-focused investment funds to fulfill the UN Sustainable Development Goals.
More than $715B of assets under management are now committed to impact investing. This is a paradigm shift that is reshaping the future of investing. That’s why there is a natural fit between impact investing and DeFi, which, of course, has not only upended the traditional order in finance. It’s also providing impact investors with a powerful tool to track performance.
Former Merrill Lynch CFO joins the first Decentralized ETF as Advisor
The Decentralized ETF, an ERC-20 based exchange-traded fund established to simplify and enable investors broad exposure to the crypto market.
The D-ETF is completely self-operating by a DAO, which automatically executes the successfully voted proposals. Token holders can suggest token swaps, and participate in voting in token proposals.
Besides being a price speculative asset, the D-ETF protocol offers a 1.5% accumulating yield to token holders, coming from all daily transaction volume. Another 1.5% is added to a treasury to purchase more intrinsic value. These percentages are generated from transaction fees, incentivizing token holders to stay in the protocol and generating passive yields without locking up their tokens.
The D-ETF protocol has already started to add intrinsic value, with familiar tokens such as WOO Network, Fantom, Wrapped Luna, Chainlink, Wrapped Bitcoin, and ThorChain.
The D-ETF team has recently onboarded former Merrill Lynch CFO Peter Olden to assist the team with reaching better FIAT on-ramp opportunities via traditional fund structures to onboard institutional clients.
The D-ETF has not officially launched yet, but their tokens can be purchased pre-IDO on their website.
Ethereum is the foundation for a digital civilization. It is hardened, secure, and reliable. It is the bedrock necessary to support the digital cities being built on top of it.
A critical vulnerability that affected 6 cross-chain tokens was reported by security firm Dedaub and fixed by Multichain team.
Crypto investment firm Mechanism Capital is launching a $100 million fund focused on the play-to-earn (P2E) gaming industry, the company shared on Monday.
Proposal for the development and introduction of Aave Governance V3, based on storage-proofs, rollup-optimised (Starknet), with free (or almost) voting and fully integrated with the new SnapshotX system by Snapshot Labs.
It wasn’t just a bull run for prices last year. Careers in crypto outstripped price action in 2021, as crypto job searches soared by 395% in the United States alone, according to LinkedIn.
Trending in The Defiant
Ethereum Burn Rate Hits Record High as DeFi Market Jumps Severe volatility has driven Ethereum’s daily burn to an all-time high, with roughly 18,070 ETH, or $57.8M, destroyed in 24 hours on Jan. 11.
The Defiant’s Go-To Guide to OpenSea Challengers OpenSea is the giant of the NFT marketplace space. It’s the place everyone looks at if they want to buy or sell an NFT.
Osmosis Lights Up the Market with 80% Run in Last 14 Days Osmosis, a decentralized exchange, has made its way to the front page of CoinGecko as its token has repeatedly rallied in the new year.
🧑💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Samuel Haig, DeFiDad, and yyctrader, and edited by Edward Robinson, yyctrader, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access, while free signups get only part of the content. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button above ($15/mo, $150/yr)