#43 Solana, from Web3, down to Reality. The Dual Token Approach.
Disclaimer: Everything we write in "The Crypto Insider Report" is an x-ray of the industry as we see it, through the lens of publicly available information. We are not financial advisors.
The Dual Token Approach
A recent opinion piece by Da Hongfei, founder of the Neo blockchain, tackles the issues faced by traditional, single token chains and how a dual model could help.
If you think about Ethereum, ETH is the single token it works with. You use it to pay for fees, as well as to accrue a stake in the network. As usage and demand increase, it can lead (as it has, historically) to situations where transactions become expensive and users have less of an incentive to spend (use) the token. E.g. you wouldn’t perhaps pay for a coffee with ETH as by doing so you essentially diminish your share in it. This also applies to DAOs and their native currency, as we’ve discussed in past newsletters - most DAOs have a treasury composed of mainly their own token, as well as the core contributors. They wouldn’t want to exchange those tokens for something as they lose part of their share in governance.
Hongfei proposes a dual model, which Neo uses, in which there is a governance token and a utility token. The governance token accrues value and represents the stake in the network, while the utility token is simply that - a way to pay for transactions. He claims that this way, the issues of single token chains like Ethereum are solved.
In my opinion, it’s not that easy. I think that in ETH’s case, EIP-1559’s burning mechanism is helping ETH go up in price with usage, as each transaction is burning some ETH, essentially limiting the supply. Dual token models would need a way to tie the main token’s value to the network’s adoption. Make sure to check out the article for the full story and see what you think about it.
Mihnea
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Coinbase Ventures Q2 report on market outlook and key emerging themes
Coinbase Ventures has released its quarterly report highlighting its view on the crypto market outlook and key emerging themes in the space, from the point of view of their investment thesis (and companies that it has invested in so far).
On the deal activity front, it has closed a total of 47 deals in Q2, a decrease from 71 closed in Q1 2022, but a 68% increase YoY, reflecting the steady growth of its ventures practice over the past year.
On a macro scale, it saw founders rethink or put their rounds on pause, particularly at the later stages. Companies are only undergoing financing rounds unless absolutely necessary and only if they feel confident they can show the rate of needed growth to justify a new round. At early stages, activity is still elevated, where multiple talented teams are receiving the desired funding capital. This level is also where Coinbase Ventures is the most active.
The venture capital division highlights a number of key trends and focus areas in the industry:
Web3 gaming: will onboard the next massive wave of crypto users, with experienced founders from Web2 gaming continuing to pour into the space. The use of NFTs and the ownership economy will continue to take a slice of the 3.2bn+ gamers in the world. Also, while Axie Infinity’s model was based on a faulty feedback loop, its key figures (nearly $1bn in sales in a single month and 2m DAU with essentially zero marketing budget) are a good barometer for Web2 companies and founders of the attractive Web3 economics.
Rewiring Web2 - Web3 user applications working to upend the captive models of Web2 and give users control over their audiences and communities. Web3 apps can also provide more aligned monetization for creators as opposed to the ad spending model cherished by Web2 platforms like Twitter or Instagram.
Solana ecosystem - strong ecosystem momentum and developer activity. Coinbase Ventures did 10 deals building on Solana in Q2. It saw a clear trend in early teams placing importance on Solana and choosing to either build solely on Solana or build support for both Rust and EVM from the onset.
UX improvements - projects streamlining and verticalizing the entire retail transaction journey.
Razvan
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Solana, from Web3, down to Reality
Solana is planning to establish an IRL store and a Web3 "embassy" in New York. The new store, called Solana Spaces, is being opened in collaboration with the Solana Foundation and is situated in Hudson Yards.
You can find NY Bottle, Degen Hat, Solana Socks, WAGMI/NGMI Bucket, Preppi x Solana, Puff Print Logo Tee, and Solana "Waist" Pack. The world’s first retail & educational space dedicated to Web3. Brought in collaboration with @solanafndn, and partners @phantom, @stepnofficial, @orca_so, @magiceden, @metaplex, @degenapeacademy, and more.
Start by onboarding at the @phantom seed phrase booth, and receive your first NFT. The retailer has an NFT gallery with the Degenerate Ape Academy collection on display.
The store also has an interactive installation that displays real-time activity on the Solana blockchain, including completed transactions and the creation of new NFTs.
According to Vibhu Norby, CEO of Solana Spaces, the store's primary goal is to educate anyone unfamiliar with the cryptocurrency industry and welcome newcomers.
Previously, the Solana sneaker was revealed, created in association with @blanksoles. People could also demo Solana’s Web3 mobile phone, Solana Saga.
Crypto & IRL are headed toward one another. Powered by @Decaf_so, visitors to Spaces can mint and redeem the physical version in one step.
And we're not done yet. There's more to this story. Stay tuned!
Cosmin
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PepsiCo Promotes Plastic Recycling Using Blockchain Technology
In tackling climate change challenges and promoting sustainability in the European supply chain, PepsiCo Labs has announced the collaboration with six startups. One of these startups, Security Matters, uses blockchain technology to identify, sort and pack waste more effectively by using an invisible market system in waste sorting to track closed loop recycling and verify sustainability claims.
Focused on traceability in recycling and the circular economy, Security Matters, has developed a blockchain-powered recycling conveyor that identifies plastics during the recycling process using its chemical marker. The marker allows a digital twin to be stored on a blockchain network, which enables product identification and traceability. This is not the company’s firs high profile partnership and it comes after securing a joined venture with government-owned Perth Mint to track the authenticity of gold and was part of the BASF reciChain blockchain pilot for recycling plastics. On top of these collaborations, Security Matters has just announced a NASDAQ SPAC listing. The SPAC deal valued the company at $200 million, 14 times its valuation on Australia’s ASX stock market the day before.
Other competitors such as Everledger and Circulor have similar ambitions. Circulor recently secured $25 million funding and Everledger has partnered with Source Certain International (SCI) to improve transparency in the mining industry. Netherlands-based Circularise is involved in plastics traceability and has secured partnerships with big names like Porsche and Mitsubishi.
Other big corporations tapping into blockchain technology to tackle recycling challenges include IBM, Mitsui Chemicals and Nomura Reasearch that have started a plastic recycling blockchain consortium. Additionally, Japanese chemical manufacturer DIC is conducting a pilot with the SAP blockchain solution invol
This is not the only Web3 related action that PepsiCo Labs has taken recently. Until August 15th, PepsiCo Labs is accepting submissions for the Metaverse call.
The team is looking for game-changing tech solutions for any on the following business needs:
Evelyne
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For more educational crypto content, check out the links below:
The Stakeborg DAO Talks on YouTube: https://www.youtube.com/playlist?list=PLOrFZZifNn4Nx4nSQL3WS52ALPXgrTSVG
Discord channel: https://discord.com/channels/901898461568442458/903006233584341052
StakeborgDAO Quarterly Reports: https://docs.stakeborgdao.com/reports/dao-quarterly-reports
Stakeborg Academy: https://academy.stakeborg.com/