Shifting Gears

Hey everyone! As some of you may have noticed, this newsletter hasn’t gone out as frequently as I had originally intended. There’s plenty of cool stuff that’s been happening in the EOS ecosystem, but I’ve been spending far more time working on internal projects at Greymass than I have been writing about the space.

As a result, I’ve decided to shift gears with this newsletter. From now on, this newsletter will be a group effort from the team at Greymass. You can still expect a general overview of the EOSIO ecosystem, as well as longer commentary on specific things that we think are worth highlighting. We’ll also keep you up to date on all of the cool things we’re working on internally (like the upcoming 1.0 launch of our Anchor wallet).

One major benefit here is that the new format will offer a wider perspective than I can give on my own. Other members of the Greymass team can offer far better commentary on some of the more technical happenings in the ecosystem than I can, and we’ll also be able to send out the newsletter more frequently.

From now on, you’ll be getting this update from a new Greymass Substack account that we’ve created. If you’d like to opt out, you can do so by simply unsubscribing here. We’ll import the updated subscriber list before the first Greymass edition goes out next week.

As always, thanks for your support, and feel free to reach out any time!

Best,

Myles

EOS Update - May 31, 2019

An EOSIO Ecosystem Newsletter

I’m sending out this newsletter just as I’m about to hop on a flight to head to Washington, DC for #B1June. If you’re in DC for the event this weekend, make sure to let me know! While I’ve been trying to do this newsletter bi-weekly, I might send out an update next week to talk about the B1 event, provided there’s exciting enough news. If you want to follow the action live, the good folks at EOS New York and Everything EOS will be doing live updates in their Telegram channels.

As always, feedback and suggestions for the newsletter are welcome! You can find me on Twitter.

Myles Snider


1 Token 1 Vote (?)

One of the major discussions that kicked off a couple weeks ago revolved around changing the way voting works on the EOS mainnet to a new system called 1 token 1 vote (1T1V). While the idea has been floated for quite some time, the debate was reignited by a tweet in which Brendan Blumer said he believed it was the right path forward for EOS.

Currently, every EOS account can vote for up to 30 block producers. If I have 1000 EOS, then I can vote for 30 BPs, each of whom receive 1000 votes. Votes are tallied and BPs are ranked by total number of votes received (approval voting). One of the benefits of this system is that it allows for “co-opetition” among BPs. They are happy to work together on various projects, knowing that any given voter could support both of them for their efforts. But it also encourages vote buying and trading. Any given whale can spread out their voting power among 30 different entities, potentially collecting kickbacks from those BPs.

1T1V changes this up significantly. Instead of giving each account 30 BP votes, it would give each account only one. If I have 1000 EOS, then I can only vote for a single BP, who then gets 1000 votes from me. If I wanted to support multiple BPs, I’d have to split my EOS into different accounts. I could create two accounts with 500 EOS each and vote for a different BP from each account, but now each of those BPs would only receive 500 votes. This would make it harder to do vote buying or vote trading, since each BP added to one’s votes would decrease the total amount of voting power allocated to each.

Switching to 1T1V would be a pretty major change to the EOS governance model, but I tend to agree with Blumer that this would be a positive change for the network. That said, this wouldn’t be an easy change to implement, and it seems more likely that new EOSIO chains will launch with this model than seeing this happen on the mainnet in the short term.

Anchor Wallet Beta Release

Here at Greymass, we’re super excited to release the beta version of Anchor, the successor to the eos-voter desktop wallet. Aaron, Daniel, Johan, and Scott have been working on this product since long before I joined the team, and it’s quite impressive. I’ve been a user of the eos-voter wallet since mainnet launch. It integrates super well with my Ledger, and it makes participating in governance quite easy. Anchor not only includes new branding, a new interface, and a bunch of fantastic new features, but it also introduces a new signing protocol that will allow you to use Anchor (or any other compatible wallet) to interact directly with dApps and services.

You can now download and play around with the beta version (link here). It won’t interact with or override your current eos-voter installation, so don’t worry about it affecting your legacy wallet. If you have feedback, feel free to join the Anchor wallet Telegram channel or the Anchor developers channel.

Finally, check out our Greymass team update, with more info on Anchor and all of the other things we’ve been working on lately!

B1 Equity + Holdings

A recent Bloomberg article about Block.one offered some really interesting details into Block.one’s capital structure. A few quick facts:

  • B1’s assets totaled about $3B at the end of February 2019

  • B1 has a mega-bag of BTC, holding as much as 140,000 BTC at one point

  • They hold $2.3B in “liquid fiat assets,” most of which are US government treasury bonds

  • EOSVC has made $147M in investments to date

Perhaps even more interestingly, B1 bought back equity from its early investors at a 6,567% return. Yes, you read that right. One of the early investors whose shares were purchased was Mike Novogratz, who was the highest-profile early public backer of B1. Novogratz later clarified in a tweet that Galaxy Digital still holds both B1 equity and EOS tokens, but they decided to take profits after B1’s equity vastly outperformed their other holdings in the bear market.

The BTC component is actually the most interesting to me here. A few months ago, Dan and Brendan spent a lot of time on Twitter talking cryptically about how EOSIO could be used to scale Bitcoin. If they are actually building a product they think will benefit Bitcoin, they could stand to benefit greatly from such a large position. I’d love to see BTC and EOSIO tech come together in some compelling way.

Block.one Makes Mainnet Moves

Ahead of their June 1st announcement event, Block.one made some interesting moves with their EOS stake for the first time since mainnet launch. First, they unstaked 9.8M EOS, with Dan commenting on Telegram that they had no current plans to sell EOS and that the move was “to facilitate new internal policy and strategic initiatives.” As usual with Dan, he was light on details and that could mean just about anything.

Just a few days later, B1 purchased 32GB of RAM on the mainnet, spending 3.3M EOS to do so (the RAM trading fee ended up being 16,500 EOS, which went straight to the books of the REX— great time to be a REX lender). What does this mean? Well, nobody knows for sure, but it does strongly signal that B1 is doing something on the mainnet. A lot of the rumors going into B1June were that B1 was planning to launch a new EOSIO chain for their social media project, perhaps with an airdrop to current EOS holders. Brendan put the airdrop rumor to rest on Twitter, which seems to further signal that they’re not focusing on building out another blockchain at the moment.

Purchasing that much RAM on the mainnet strongly signals that B1 is planning to build something there. Some are speculating that they will deploy their social media product (or at least a proof of concept of some sort) directly on the mainnet as a dApp. Others have speculated that B1 has some sort of inter-blockchain communication (IBC) solution they’re ready to deploy, and the RAM is needed to build IBC hubs on the mainnet. Given everything we’ve heard from Dan and Brendan lately, I’d say the social media product seems far more likely. The good news is that we only have to wait until tomorrow to know for sure!

EOSIO Labs Authenticator

Block.one’s EOSIO Labs initiative just published some open-source example code for an iOS signature provider app, as well as a Google Chrome extension. From the article:

The EOSIO Reference iOS Authenticator App is an implementation on iOS that allows users to sign in and approve transactions from 1) web applications running in Mobile Safari and 2) other native iOS apps on the same device. Key management and signing take place in Apple’s Secure Enclave and/or Keychain and are protected with the device’s biometric authentication.

B1 talked for a long time about building an EOS iPhone wallet, and then later said they’d simply release their code as an open-source template that other developers could use. I’m really excited to see who takes this and introduces it into an app that actually gets through the App Store. Using TouchID/FaceID + Apple’s secure enclave feels like the future of key management. You can read more about the project here.

EOS = DeFi?

Everyone who has been following the crypto space for the past year has seen the explosion of the Open Finance/DeFi narrative. This narrative really came from within the Ethereum community and has been closely tied to that chain— mostly because of a few key projects like Maker, 0x, Compound, Dharma, Uniswap, etc. Many have called DeFi Ethereum’s “killer app,” and the community has really latched onto that as a meme and narrative.

What is DeFi, exactly? Different people likely have different definitions. In my opinion, DeFi is hardly limited to Ethereum. Bitcoin is DeFi. Bitshares/bitUSD are DeFi. And although some have criticized EOS for not having a similar critical mass of DeFi applications as Ethereum, I disagree with the argument. First, it’s early. Many of the Ethereum projects listed above didn’t go live until several years after Ethereum was built. “DeFi” didn’t even exist as a real narrative in Ethereum’s early days. EOS still needs time to build some of these critical pieces of infrastructure. Second, I think some people just choose to ignore the clear DeFi applications that exist on EOS— REX, Chintai, NewDEX, WhaleEX, and a few others.

Most notably, however, is the recent uptick in REX usage. One of the metrics most often used to gauge the success of DeFi applications is the amount of value (usually measured in Ether) that’s “locked” in DeFi apps. A site called DeFi.Review has been collecting a bunch of data there. With ~$700M worth of EOS locked up in REX, it’s one of the biggest DeFi applications out there. I expect this growth to continue, and fully expect to see stablecoins, DEXs, and more thriving on EOS in the near future.

Cool Stuff

EOSIO Labs - Native SDKs for Swift and Java

EOS DNS by EOS Cafe Block and EOS Name Service

RAM Usage Tracker by dfuse Labs

Introducing TokenYield.io

Decentium - Censorship-Resistant Medium Alternative Built on EOS

Watching and Listening

EOS Mainnet Drifts Eastward - EOS Weekly

EOS DNS, airHODL, StrongBlock, and more on Everything EOS

Upcoming Events


Support This Newsletter

If you want to support this newsletter, you can do so in two ways: cast a vote for teamgreymass, or send us a donation to eosvoter.x

Your support is much appreciated!

Welcome to the New EOS Update!

An EOSIO Ecosystem Newsletter

Hey everyone, and welcome to the new and improved version of my EOSIO ecosystem newsletter! I’ve decided to move everything over to Substack, which is a much better platform than what I was using before. That switch has also offered me the opportunity to change up the format of the letter a bit.

I’m going to start sending out the letter every two weeks, instead of weekly. That will give me a little more time to digest the biggest news and separate the signal from the noise. I’m going to focus on narrowing down the most important developments, highlighting those, and offering some commentary on each. Then I’ll add a list of links with things that are worth reading, watching, or listening to. I may experiment a little in the coming weeks, so feel free to ping me here or on Twitter with feedback.

In case you missed it, two weeks ago I announced that Aurora EOS and Greymass would be joining forces— we’ll be spinning down the Aurora brand, and I’ve joined Greymass as a partner. You can read the entire announcement here. Be on the lookout for some really awesome announcements from our team this month (follow us on Twitter and Telegram). If you’re currently voting for Aurora EOS, please know that we’ll be unregistering the node at the end of this week. We’d love for you to continue to support our efforts by switching your vote over to teamgreymass.

Thanks!

Myles Snider


REX is Live

The EOS resource exchange (REX) is officially live on the mainnet. What does this mean? Any EOS user can lease out their EOS through a system-level contract, and anyone who wants to use the EOS network can access bandwidth by leasing EOS for a much lower price than purchasing it directly. REX users also have to vote for 21+ BPs (or delegate to a proxy) in order to use REX, so it should increase voter participation, as well. If you’re an EOS holder looking to start using REX, EOS New York has you covered with an awesome tutorial here. There’s a number of really slick interfaces offering users the ability to access REX with Scatter, Ledger, and other wallets. If you’re a user of the eos-voter wallet by Greymass, you can download the latest version here for full REX support.

Now that REX is live, we’ll be able to collect some good data on how it affects the network, both in terms of resource pricing and voting. EOS Authority has a great page for REX data and statistics, as does Bloks.io. If you want to hear me dive into REX dynamics from an investor perspective, check out my latest podcast with Maple Leaf Capital, where we discuss that and much more.

The latest release candidate for EOSIO adds a new feature that will allow applications to manage resources (CPU, NET, RAM, etc) for their users, on the back end, without those users having to know about those things at all. This, combined with REX and other solutions like Eclipse, is a game-changer for user experience. Developers can now access cheap resources through REX, stake those for their users, and completely abstract away the complexities of blockchain. I’m especially excited to see what this means for some of the gaming apps that are coming online this year.

eosio.saving Burned

When the EOS network launched, the code had 5% annual inflation configured. 1% of that inflation was used to pay BPs, and the other 4% went into a smart contract called eosio.saving. The idea behind that contract was that it could be used as an on-chain treasury to fund non-BP projects that could bring value to the ecosystem. The problem was that there was no clear plan in place for how to allocate those funds. A lot of people (myself included) were fearful that having so much EOS accumulate, without a plan to distribute it, could lead to conflicts.

After holding a widely-supported on-chain referendum on the subject, the elected BPs voted with a 15/21 BP approval vote to burn the EOS that had been accumulated in the saving fund thus far. The EOS was officially burned, but the faucet itself was not turned off. So the funds that had accumulated since network launch are gone, but EOS will continue to flow into the account from this point forward. There are a number of other proposals in the works— to reduce the faucet to a smaller amount, to use the funds to create a worker proposal system, to eliminate the fund entirely, any many other options.

This evolution will likely happen in steps, beginning with this burn. While I’m glad the burn happened, I do think that some form of on-chain treasury/worker system could be very useful in the future. For that reason, I’m in favor of keeping the faucet open (perhaps at a lower rate) and exploring ways to allocate the funds. In the meantime, I’d like to see a yearly or quarterly burn of unallocated funds. I’ll continue to dive into this issue as the conversation progresses.

Rewarding Voters

EOS New York put out a really interesting proposal to reward voters on EOS. It’s clear that voting imposes a cost on EOS holders— they have to diligence BPs or proxies, and then they have to actually spend time to cast their votes and update them regularly. Yet there’s no reward for voting, and the only incentive to do so is to make sure that good BPs are elected, which protects the value of the network.

This alone should be a good enough reason to vote for anyone with a major stake in EOS, but the reality is that it’s not. I’ve spoken to large EOS holders (even fund managers) who weren’t voting because they simply felt that it wasn’t worth their time. Contrast that with networks like Cosmos and Tezos, which offer rewards to stakers that incentivize active participation. That’s surely part of the reason why custodians like Coinbase are prioritizing support for those networks with their institutional clients.

One of the benefits of voting rewards is that they would reward active network participants at the expense of passive network participants. Given that the security model of the network depends on active management by token holders, this seems like a good thing. I’m fully in support of this proposal.

Dan’s New Stablecoin

Dan released a mind-bogglingly complex new proposal for a stablecoin design. When I wrote about stablecoins back at Multicoin Capital, I identified 3 primary types of stablecoins: fiat-backed, collateralized, and non-collateralized (aka seigniorage shares). Dan’s proposal mostly falls into the second category (collateralized on-chain), but it adds new elements that make it among the most novel designs I’ve seen in a while.

I tried to do a write up to explain how this design works. It took me several times reading the article, a few conversations with other people who had read it, and some time spent drawing out diagrams for me to really grasp how it works. Frankly, the write-up I had didn’t do it justice, as it’s a lot better explained visually. I might try to put together an article with some graphics, or maybe EOS Weekly will beat me to the punch. That said, I highly recommend that anyone who is interested in stablecoins take a look at this and give it a read-through.

Interestingly, Dan mentioned on Telegram that Block.one would not be building this project themselves. Dan put a little bit of example code on Github, but he says that he’s leaving it up to the community to actually build something using this design. It will be interesting to see who steps up to the plate.

B1June

Block.one continues to tease their June event, but they’ve managed to remain extremely tight-lipped with regards to actual details. If I had to guess, I think we’ll see the debut of their long-hyped social network project (potentially called MEOS), and we’ll likely also figure out the strategic reasons for the event taking place in Washington, DC.

I’ll be in DC for the event. If you’re there, make sure to let me know!

Cool Stuff

Use dfuse to Easily Find Your Transactions

dGoods v1.0 — Public Beta Release

EOSIO UTXO by Everipedia

Watching and Listening

EOS Voter Podcast - Rick Schlesinger of EOS New York

EOS Voter Podcast - The Maple Leaf Capital Interview

Everything EOS Weekly Series

EOS Weekly - Token Contract Security Risks

dfuse Video Series for Developers

Upcoming Events


Support This Newsletter

If you want to support this newsletter, you can do so in two ways: cast a vote for teamgreymass, or send us a donation to eosvoter.x

Your support is much appreciated!

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