- Build in Bear Newsletter
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- Could this kill DeFi? 😰
GM folks, we're excited to announce that we're now on Product Hunt 🎉! Web3 Seems Legit started 2 months ago to help crypto newcomers dip their toes into the wild west of crypto Twitter.
Every week, we round-up of the latest web3 news + alpha insights from Twitter 🧠. If you've been enjoying our content, we'd appreciate if you could like and support us! 👇👇👇
In this issue, we're getting to the bottom of these latest web3 stories:
Will the DCCPA kill DeFi? A copy of the Digital Commodities Consumer Protection Act (DCCPA) bill was leaked with some alarming language that could wipe out DeFi.
Will Blur marketplace save the NFT industry? Blur is a newly launched NFT marketplace for "pro traders" and it aims to tackle the 0% royalties debate.
Will Jack Dorsey's decentralized Twitter save social? The Dorsey funded project, Bluesky, has finally provided an update to reveal The AT Protocol - a new decentralized network for social apps.
Will the DCCPA kill DeFi?
Getting clarity on crypto regulation has been a major issue in the industry. Some believe that regulation could fuel mainstream adoption, while others see it as an innovation killer. It's all about balance and compromise, right?
Well, a draft copy of the Digital Commodities Consumer Protection Act (DCCPA) was leaked and there's hardly anything balanced about it 🙅♀️.
I have long been a believer in transparency and open discussion of the future of cryptolaw.
Accordingly, I have obtained a copy of a draft of the notorious DCCPA circulating secretly in D.C. and am hereby making it available to the public.
— _gabrielShapir0 (@lex_node)
7:23 PM • Oct 19, 2022
Though the bill doesn't directly mention DeFi, their definition would classify all DeFi projects as a "digital commodity platform". This would subject them to the rules in this bill that's structured to require centralization.
Here are just some red flags in the draft:
DEXes could be required to grant emergency power to authorities to perform on-chain freezing 🚩
All DeFi projects could be required to have a Chief Compliance Officer to work with regulators 🚩
Regulators could begin charging platform fees and conduct oversight on trading 🚩
The DCCPA greatly threatens DeFi innovation.
The proposed bill:
- gives CFTC new powers to regulate spot markets
- forces human intermediation
- forces projects to sacrifice decentralizationIt favors centralized incumbents and kills startups.
Alliance opposes the DCCPA. 🧵
— Alliance 👽 (@alliancedao)
6:26 PM • Oct 19, 2022
At its current state, the bill fails to acknowledge the uniqueness of truly decentralized projects. Instead, it would force DeFi platforms to comply to rules made for traditionally centralized companies, effectively killing the core nature of DeFi.
And guess who is lobbying for the bill? None other than SBF, CEO of popular centralized exchange, FTX 🧐.
2) I’m optimistic that the Stabenow-Boozman’s bill will provide customer protection on centralized crypto exchanges without endangering the existence of software, blockchains, validators, DeFi, etc.
If I were convinced I was wrong about that, I would not support it.
— SBF (@SBF_FTX)
1:10 AM • Oct 19, 2022
We knew we couldn't fully trust this SBF guy...
For now, the DCCPA is still being revised, but if it looks anything close to this current draft, we don't want it 🙅♂️.
There’s some weird stuff in the dccpa bill
— hype.eth (@hype_eth)
5:11 AM • Oct 14, 2022
Will Blur marketplace save the NFT industry?
A few days ago, popular NFT marketplace, Magic Eden, found themselves in hot fire after announcing optional 0% creator royalties.
🧵After some difficult reflection and discussions with many creators, we’ve decided to move to optional royalties on @MagicEden.
Effective later today, we will also begin running a promotion to waive our platform fees.
— Magic Eden 🪄 (@MagicEden)
1:53 AM • Oct 15, 2022
This has been a highly debated topic on whether or not removing NFT royalties would kill the industry. Well, it looks like there's a new competitor in town to challenge it 🔥.
Instead of trying to enforce or eliminate royalties, Blur's approach is to incentivize it. Traders will have the choice to opt-in (or out) of royalties. The more you pay, the more airdrops, rewards and benefits you'll receive from the marketplace.
NFT royalties have been a widely discussed subject recently
@blur_io went live today and has come up with a clever solution that is designed to alleviate the royalty conundrum
A short 🧵 on Blur—including some airdrop alpha🪂
— Brrr (💙,🧡) (@0x___Brick)
12:23 AM • Oct 20, 2022
To start, anyone who has traded NFTs in the past 6 months is eligible to receive an airdrop gift containing $BLUR tokens. If you've stuck around the bear market, you have two weeks to claim your gift!
Blur is officially LIVE!
To celebrate our launch we’re airdropping Care Packages containing $BLUR tokens to everyone who’s stuck around in the bear market.
You have 14 days to claim ⏰
— Blur (@blur_io)
4:56 PM • Oct 19, 2022
To us, this seems legit and we're interested to see how Blur will perform in terms of royalty volume 👍.
Will Jack Dorsey's decentralized Twitter save social?
You may think that it's only recently that Jack Dorsey became an advocate for decentralized social. In reality, he's been working on developing a web3 social network since 2019 👀.
Twitter is funding a small independent team of up to five open source architects, engineers, and designers to develop an open and decentralized standard for social media. The goal is for Twitter to ultimately be a client of this standard. 🧵
— jack (@jack)
2:13 PM • Dec 11, 2019
Three years later and after Dorsey stepped down as CEO of Twitter, the Bluesky team has finally re-emerged to provide an update.
Bluesky is building a social protocol. We released “ADX” (the X stood for Experiment) in May. Now that the design is starting to solidify, we’re renaming it to the “Authenticated Transport Protocol” — the “AT Protocol.”
— bluesky (@bluesky)
6:24 PM • Oct 18, 2022
The AT Protocol is all about giving users control to choose what they see and who they reach, rather than being manipulated by corporate interest.
Here are some features of the AT Protocol:
🔒 Cryptographically secured data: user identity will remain private and owned by the user.
🔌 Account portability: users have control to port their data to other social platforms.
✅ Algorithmic choice: users can choose different algorithms, or choose none.
Bluesky Social will be the first app built on The AT Protocol and you can sign-up for the waitlist now. We don't know much else about the release, but we think this seems legit and a step in the right direction 💯!