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The Protocol: Blast\'s $3B Airdrop and Bitcoin\'s Mt. Gox Moment

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2024-06-27 11:14:48758browse

Inthisweek'sissueofCoinDesk'sweeklyblockchaintechnewsletter,we'recovering$100millionoffundraisings,projectupdatesfromSolanaandotherteams,complaintsoverLayerZero's"pay-to-claim"airdropandnervousnesssurroundingtheMt.Goxbitcoindistribution.

The Protocol: Blast's B Airdrop and Bitcoin's Mt. Gox Moment

CoinDesk'sweeklyblockchaintechnewslettercovers$100millioninfundraisings,projectupdatesfromSolanaandotherteams,complaintsoverLayerZero's"pay-to-claim"airdropandnervousnesssurroundingtheMt.Goxbitcoindistribution.ThisarticleisfeaturedinthelatestissueofTheProtocol,ourweeklynewsletterexploringthetechbehindcrypto,oneblockatatime.SignupheretogetitinyourinboxeveryWednesday.AlsopleasecheckoutourweeklyTheProtocolpodcast.NetworknewsFREE,FORAFEE:Tokenairdropsare,afterall,freemoney–onereasonwhyprojectteamsmightbelesssympathetictouserswhocomplainthattheydidn'tgetwhattheythoughttheywereowed.Now,theblockchaininteroperabilityprojectLayerZerohasintroducedanewtwisttotheprocess–whatsomeobserversarecalling"paytoclaim."WhenLayerZeroFoundationcameoutlastweekwiththeZROairdrop,itforceduserstoforkovera"proof-of-donation"beforetheycouldclaimthenewtokens.AsdetailedbyCoinDesk'sShauryaMalwa,usershadtomakeadonationof10centsinUSDCtoProtocolGuild–acollectivefundingmechanismforEthereum'slayer-1researchanddevelopmentmaintainers–foreachZROtokentheyhopedtoclaim.InavideoaddresspostedonX,LayerZeroLabsco-founderBryanPellegrinosaidthat"usersneedtodosomethinginordertogetsomething,"addingthattheamountwas"extremelysmall"andthat"theeasypath"wouldhavebeento"optimizefortheleastamountofcriticism."LayerZeroFoundationsaiditwouldmatchalldonationsupto$10million.Theostensiblerationale?“BydonatingtoProtocolGuild,eligiblerecipientsshowlong-termalignmentwiththeLayerZeroprotocolandacommitmenttothefutureofcrypto,”LayerZerosaidinanXpost.Itgoeswithoutsayingthatendorsementofthemovewasnotuniversal:"IfI'matMcDonald'sandtheyforcemetodonatetogetmycheeseburger,doIreallycareaboutthekidsoramIjusthungry?"onefrustratedposterwroteonX.MOUNTTOP?Mt.Gox,theonce-dominantbitcoinexchangethat'sbeentiedupinbankruptcycourtforyearsfollowingadevastating2014hack,announceditwouldstartdistributingassetstoclients,sendingtheBTCpricetumbling.Theleadingcryptocurrencytookabiggerhitthansmallertokens,pushingitsshareoftheoverallcryptomarketdownby1.8percentagepointto54%.Thefearisthat,astheMt.Goxinvestorsandcreditorsgetthebitcoin,someofthemmightrushtocashout,unleashingawaveofsellingthatwould,atleastintheshortterm,pushthepricelower.Technicalmarketindicatorssuggestapricedropto$50,000couldbeintheoffing,thoughasofpresstimebitcoinappearedtostabilizejustbelow$62,000.Sometradersarguedthattheriskofmasssellingmightbeoverblown.TheWinklevossTwins,foundersoftheGeminicryptoexchange,wroteonXthattheyeachgave$1milliontoDonaldTrump'spresidentialcampaign–butlatertheyhadtoberefundedbecausethedonationswereoverthelegallimit.Mexicancartelshavebeenusingthecryptocurrenciesbitcoin,ether,moneroandtethertobuytherawmaterialsneededtomakethedrugfentanyl,accordingtotheU.S.TreasuryDepartment'sFinancialCrimesEnforcementNetwork(FinCEN).TheGermangovernment,whichholdsover45,000BTC,includingbitcoinsseizedfromaprivacywebsite,transferred750BTCvaluedatover$46million,with250BTCsenttothecryptoexchangesBitstampandKraken,accordingtoblockchainsleuthLookonchain.Thetransfersaddedtospeculationthatthecountrymightbepreparingtosellsomeofitsbitcoinholdings,addingtobearishpressuresincryptomarkets.ToppicksofthepastweekfromourProtocolVillagecolumn,highlightingkeyblockchaintechupgradesandnews.Schematicillustratingthenewallocationforpriorityblock-producingrightsunderBEP-341(BNBForum)1.BNBChainannouncedanewBEP-341proposal,"GovernanceEnabledContinuousBlockProduction."Accordingtotheteam:"ThisproposedenhancementaimstosignificantlyimprovethetransactionprocessingcapacityofBSCbyenablingvalidatorstoproduceconsecutiveblocks.Toaddressanyrisks,BEP-341introducesadjustablegovernanceparametersaimedatbalancingperformanceimprovementswithcriticalsecuritymeasures."2.AlgorandFoundationannouncedatitsannualDecipherconferenceinBarcelonathatithascreatedanew"implementationfordecentralizedauthenticationandcommunicationcalledLiquidAuth."Accordingtotheteam:"LiquidAuth,adecentralized,free-to-use,open-source,andchain-agnosticauthenticationtoolprovidesgreatersecurityandprivacyto

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