securing the DAO vote; verifiable delay functions; regulatory recap
securing the DAO vote; verifiable delay functions; regulatory recap
1. Top of mind: Keeping DAOs safe from malicious voters
Pranav Garimidi, Scott Duke Kominers, Tim Roughgarden
One of the benefits of DAO governance is permissionless voting rights, which gives people the ability to vote on various issues through fungible token ownership. But this can be vulnerable to attacks where someone acquires voting power through legitimate means… and then uses that voting power to manipulate the protocol instead. What to do? In this article, a16z crypto researchers share a simple equation and framework that could help mitigate the threat.
debate & discussion: Vitalik Buterin, co-creator of Ethereum, voiced a counterargument to this piece here
his responses/ suggestions to others discussing the piece, here and here
more context on his views here
2. Research overviews: Verifiable Delay Functions
Joseph Bonneau
In this a16z crypto research seminar series talk, research partner Joseph Bonneau provides an overview of Verifiable Delay Functions — a new cryptographic tool developed since 2018 — and on time-based crypto more generally. He covers applications, basic constructions, and open questions.
3. News & moves: Regulatory recap
David Sverdlov
🌽 Commodity Futures Trading Commission
CFTC Commissioner Caroline D. Pham issued a statement critical of the SEC’s charges against a former Coinbase product manager, calling the case a “striking example of ‘regulation by enforcement.’”
📈 Securities and Exchange Commission
The SEC alleged that 9 crypto assets are securities after filing insider trading charges against three individuals. The crypto assets called out include AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM. The Department of Justice announced parallel criminal proceedings.
Ranking Member for the U.S. Senate Committee on Banking, Housing, and Urban Affairs Senator Pat Toomey, echoed CFTC Commissioner Pham’s SEC criticism in a letter addressed to SEC Chairman Gary Gensler.
The Director of the SEC’s Enforcement unit, Gurbir Grewal, asked Congress’s House Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, for additional resources to hire more people for enforcement.
🏦 Federal Deposit Insurance Corporation / Federal Reserve Board of Governors
The FDIC and FRB issued a joint letter demanding that Voyager Digital cease and desist from making false and misleading statements regarding its FDIC deposit insurance status and to correct any such prior statements. The letter represents the first time the FDIC and FRB have taken action against a digital asset company relating to FDIC insurance. See the FDIC’s follow-up advisory and fact sheet for more.
🌏 Global
🇬🇧 United Kingdom The U.K. Treasury announced its proposed digital asset legislation, which will modify existing rules for banking and payment systems to cover digital assets. This legislation is the first legal step toward recognizing certain types of crypto assets as a valid method of payment in the U.K.
🇸🇬 Singapore The Managing Director of the Monetary Authority of Singapore, Ravi Menon, announced that Singapore will broaden cryptocurrency regulations to cover more activities.
🇮🇹 Italy Coinbase and Crypto.com announced that they received regulatory approval from the Organismo Agenti de Mediatori in Italy as a provider of virtual currency and digital wallet services, which will enable them to offer a suite of products and services to customers in Italy.
…horrendous tech predictions
--Robert Hackett, Tim Sullivan, and Sonal Chokshi
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