Optimism's stage 1 decentralization fault proofs, Arbitrum's token unlock, Solana Foundation removes sandwich attack validators, MOTHER memecoin pumps.
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Optimism Implements Fault Proofs for Further Decentralization

Optimism Implements Fault Proofs for Further Decentralization

Date:
Jun 11, 2024
| Issue
#
298

GM. Crypto is booming with Optimism's fault proofs decentralization update, timing perfectly with the over $363 million in tokens set to be unlocked in the DeFi market this week. Overall, celebrity memecoins remain the main narrative, while AI could benefit from the recent OpenAI and Apple partnership.

Macroeconomically, the market is expected to fluctuate in the coming days due to the release of important economic reports in the US (OPEC, CPI, PPI, UoM Consumer Sentiment) and the June FED meeting, where officials will discuss inflation and interest rates. The market is anticipating no change in rates.

Optimism Implements Fault Proofs for Further Decentralization

Optimism, the Ethereum layer-2 network, has implemented fault proofs in its smart contracts, reaching "Stage 1" of decentralization as defined by Ethereum co-founder Vitalik Buterin. This update allows users to withdraw Ether and ERC-20 tokens without relying on trusted third parties, and users can challenge invalid withdrawals through a new fault-proof system named "Cannon."

This marks another step towards full decentralization, or "Stage 2," where overrides will only occur if multiple proof systems conflict. Developed with OP Labs, Base Network, and Sunnyside Labs, the change was approved by Optimism's governance bodies. At least four other OP Stack networks will implement the fault proofs “soon,” including Base, Metal, Mode, and Zora.

Aptos, Arbitrum, and Others to Unlock $363M in Tokens

There will be over $363 million worth of tokens unlocked this week. Key projects include Aptos (APT) on June 12 with 11.3 million tokens, Immutable (IMX) on June 14 with 25.5 million tokens, Cyber (CYBER) on June 14 with 886,120 tokens, Starknet (STRK) on June 15 with 64 million tokens and Arbitrum (ARB) on June 16 with 92.6 million tokens. Other unlocks include dYdX (DYDX), and Render (RNDR).

Token unlocks, which release previously restricted tokens according to a project's fundraising terms, are carefully scheduled to prevent market pressure and price drops. These unlocks increase the circulating supply and can influence market behavior. Despite often being seen as bearish, strategically planned unlocks can support a project's long-term success by aligning with development milestones.

Solana Foundation Removes Validators for 'Sandwich Attacks'

The Solana Foundation has removed certain validator operators from its delegation program due to their involvement in sandwich attacks, a type of front-running exploit that manipulates transaction prices to profit at the expense of retail users. Tim Garcia made the announcement on Discord, and there will be ongoing enforcement against operators engaging in such malicious activities.

Mert Mumtaz highlighted that this move aims to ensure the foundation only delegates to ethical validators. Despite being banned from the delegation program, these operators can still participate in the Solana network, but without the foundation's support. The delegation program is designed to help validators by delegating SOL tokens, provided they adhere to good practices.

Iggy Azalea’s MOTHER Memecoin Surges on a New Use Case

Iggy Azalea's Mother Iggy (MOTHER) token surged following an announcement that it would be used to purchase mobile phones and monthly cellphone plans from her relaunched telecommunications company. Azalea revealed on June 9 via X that the relaunch would allow purchases using MOTHER or Sol tokens, with an ad campaign expected to boost social media hype further.

Despite MOTHER's 30% intraday increase, other meme tokens remained largely unaffected, with a notable decline in overall trading volume and significant losses for popular tokens like PEPE, BONK, and BOME. Meme coins typically lack intrinsic utility and are highly volatile, driven largely by social media trends. Yet they are still the best-performing altcoins sector for 2024.

Data of the day

Data from CoinShares indicates that investments in cryptocurrency products saw inflows of almost $2 billion last week, extending a five-week run to over $4.3 billion. Exchange-traded products (ETPs) saw $12.8 billion in trading volume this week, a 55% increase over the previous week.

With weekly inflows of over $1.97 billion, Bitcoin ETFs topped the list of investment instruments, while Ether (ETH) recorded its highest inflow week since March, totaling almost $70 million, likely in response to the surprise SEC decision to allow spot-base ETFs.

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More breaking news

  • South Korea’s Financial Services Commission published a new set of guidelines for regulating NFTs on Monday, according to Yonhap news agency.
  • Uniswap Labs has acquired the web3 blockchain-based game Crypto: The Game (CTG). This announcement follows a surge in the UNI token price.
  • DeFi Technologies, a Canadian public company, has made a strategic decision to adopt Bitcoin as its primary treasury reserve asset, purchasing 110 Bitcoin.
  • Ripple, the cryptocurrency firm behind XRP, is strengthening its collaboration with the Republic of Georgia by exploring ways to digitize the local economy.
  • UK crypto ETNs see low trading volumes, generating only $500k in total volume since May 28. Retail access would be a 'game changer' however.

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