Ethereum’s Beam Chain Proposal Debate

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Good Morning.

Trump has announced that Elon Musk and Vivek Ramaswamy will lead the newly formed Department of Government Efficiency a.k.a D.O.G.E and Dogecoin has soared to new heights, now touching a $50B market cap and becoming the best performer among the top 10 cryptocurrencies with a staggering 77% increase over the past week. While many of us have long dreamed of a pro-crypto government, a federal department named after a meme coin has taken even the most ambitious crypto advocates by surprise.

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In Today's Email:

• What Matters: Ethereum’s Beam Chain Proposal Sparks Debate 🔎 

• Case Study: The Future of AI Agents in Crypto 🤖 

• Governance & Features: Unichain RPC Disabled After Early Access Leak 🦄 

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WHAT MATTERS

Ethereum’s Beam Chain Proposal Sparks Debate

State of play: At Devcon, Ethereum Foundation researcher Justin Drake unveiled "Beam Chain," a comprehensive redesign proposal for Ethereum's consensus layer.

• Seen by some as "Ethereum 3.0," Beam Chain introduces several transformative changes.

• The changes include reducing the validator requirement from 32 ETH to 1 ETH, accelerating block times to four seconds, and eliminating the need for epochs.

• The proposal leverages SNARK technology, enhancing Ethereum’s scalability and potentially removing the need for L2 solutions.

• Additionally, Beam Chain is designed for post-quantum security, addressing long-term blockchain threats.

• Drake envisions the project starting development in 2026, followed by a rigorous two-year testing phase.

Gnosis co-founder Martin Köppelmann expressed scepticism about Justin Drake's Beam Chain proposal, suggesting it lacks the bold ambition he believes Ethereum needs.

• Köppelmann argued that Beam Chain's changes, which primarily refactor Ethereum’s consensus layer, are unlikely to excite application developers.

• Köppelmann also says that the proposal only introduces "marginal improvements" to an already functional system.

• He plans to advocate for a different focus at Devcon, one that prioritizes the needs of developers building on Ethereum.

What’s next: Justin Drake aims to start development of Beam Chain by 2026, with testing planned for 2027-2029. Meanwhile, Martin Köppelmann will present an alternative vision for Ethereum’s future at Devcon, emphasizing developer needs.

Why it matters: Beam Chain’s potential post-quantum security and SNARK-based scalability could redefine Ethereum's base layer, impacting L2 reliance.

• However, Köppelmann’s critique raises questions on whether this approach aligns with developers' priorities.

Our take: Beam Chain proposes significant technological upgrades for Ethereum’s consensus layer, but some in the community feel it may not address immediate developer needs.

• Balancing forward-looking security and scalability with developer usability will be crucial.

For builders and investors: Beam Chain could ultimately simplify entry by lowering staking requirements but may not provide immediate functionality gains.

CASE STUDY

The Future of AI Agents in Crypto

Credits to Binance Research for the Original Report

The integration of AI agents in crypto is reshaping the landscape, with groundbreaking projects like Terminal of Truths and the $GOAT

meme coin capturing attention. Unlike traditional bots, these AI agents are fully autonomous.

• Terminal of Truths, which created a “memetic religion” and drove $GOAT’s value, demonstrated how AI agents can influence crypto markets.

• Platforms like Virtuals Protocol are expanding this potential by offering an “AI agent launchpad” where users can deploy and monetize AI.

• Daos.fun allows AI-led hedge funds within a DAO framework, enabling community-backed investments and AI-led decision-making.

• The evolution from AI 1.0 to AI 2.0 signals an exciting period for the crypto community as the adaptability of AI agents aligns well with the decentralized nature of blockchain.

• While AI models still face challenges the positive momentum suggests we are on the brink of substantial developments.

• This new wave of AI-driven projects could lead to significant growth and increased sophistication in AI-crypto applications.

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INSIGHTS

How to Make it in This Cycle

Jonah from 1000x Podcast shares his trading guide on “how to make it” in this crypto cycle. He emphasizes a disciplined, long-term approach to crypto, with key insights for the current cycle:

• Hold: Avoid selling any crypto before inauguration day at the earliest.

• Portfolio Allocation: Beginners should allocate 5-10% to BTC or IBIT; seasoned traders should go 40-80% BTC for stability and keep the rest for active trading.

• Market Dynamics: Expect high volatility; keep trading concentrated within crypto, avoiding fiat.

• Exit Strategy: Establish clear metrics, like BTC MVRV-Z > 6.0, to determine exit points.

• Mantras: Focus on strong tokens and avoid weaker or underperforming memes.

• Sector Picks: Monitor DeFi and AI for growth, favouring leaders like Aave in DeFi and TAO in AI. Avoid DePin due to potential valuation constraints.

• Legal Trends: Keep an eye on regulations affecting RWAs and DeFi.

• Long-Term Discipline: Avoid overtrading; stay informed and focused.

FEATURES & GOVERNANCE UPDATE

Unichain RPC Disabled After Early Access Leak

Uniswap Labs' new Layer 2 blockchain, Unichain, faced early access issues after developer details leaked online, sparking an influx of users onto the platform before its official launch.

• In response, Unichain disabled its public remote procedure call (RPC), effectively locking out users and preventing them from making transactions, including withdrawals.

• Although Unichain’s team reassured users that bridging back to Ethereum is still possible, the offline RPC has left many unable to do so.

• Unichain’s decision to cut off access has raised eyebrows, as most new blockchains typically allow early users without interruption.

• Industry figures noted that while other chains also experience early use by keen traders, the RPCs remain online.

• Unichain has yet to announce when its public RPC will be accessible.

Other notable feature updates:

• Puffer UniFi Testnet is live.

• L2BEAT has launched DABEAT.

• Valantis Labs has launched Validly.

• Story Protocol’s Odyssey is now live.

• Euler Labs has introduced Euler Prime.

• UBS has announced the launch of uMINT.

• World Chain has integrated with Across Protocol.

• Shogun Beta is now live on the Ethereum Mainnet.

• Soneium has activated fault proofs on Soneium Minato.

• PYUSD begins using LayerZero to enable transfers between ETH & SOL.

QUICK BITES

• Bitcoin briefly breaks above $90,000.

• Dogecoin's market cap crosses $63B after 51% price surge.

• Coinbase launches COIN50 index, tradable as a perpetual future.

• Animoca Brands raises an additional $10M to build out Mocaverse.

• Italy considers less severe crypto tax increase to 28% instead of 42%.

• HK spot bitcoin ETFs hit $14M in daily volume — the highest since August.

• Justin Drake proposes 'Beam Chain,' an Ethereum consensus layer redesign.

• Trump confirms ‘DOGE’ efficiency dept. will be led by Musk and Ramaswamy.

• US spot ether ETFs post record inflows of $295M, bitcoin ETFs attract $1.1B.

• Microstrategy stock hits new ATH of over $340 following historic bitcoin rally.

NOTEWORTHY READS & MEME

• CheckonChain’s read on Fighting FOMO.

• DK’s read on Bitcoin: The End to Fiat Serfdom.

• Eli5DeFi’s thread on Boros: The Black Hole of Yield.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.