Bankless

Justin Drake is a researcher at the Ethereum Foundation and is leading the charge of applied cryptography to the Ethereum network. Last time he was on the podcast, we discussed cryptography as the foundation for what we called ‘Moon Math.’

This week, Justin returns to the show to discuss Ethereum’s economic engine and how its design decisions (EIP-1559, Proof-Of-Stake, Issuance, etc.) emerges as an incredibly bullish evolution of sound money: Ultra Sound Money. ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/  🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/  ------ GO BANKLESS WITH THESE SPONSOR TOOLS:

⭐️ AAVE - BORROW OR LEND YOUR ASSETS https://bankless.cc/aave 

🚀 GEMINI - MOST TRUSTED EXCHANGE AND ONRAMP https://bankless.cc/go-gemini 

💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith 

📱 DHARMA - MOBILE ONRAMP DIRECTLY INTO DEFI https://bankless.cc/dharma  ------

🎙️ 57 - Ultra Sound Money | Justin Drake

Last time Justin was on the Bankless podcast, we went in-depth about cryptocurrency's primitive tools: cryptographic hashes and signatures. He described these as the fire and wheel of cryptography technology. This time, we dive into the specific economic design of the Ethereum network and how it is positioned to expand upon the 'stone-age' cryptography of Proof of Work.

Given Ethereum's expressive capabilities, its future has infinite possibilities in terms of both innovation and development. To explore Ethereum's value proposition as Ultra Sound Money, we use the model of the Ethereum Economic Engine. In this metaphor, the basic energy harnessed is monetary value, stored in the 'engine' battery via tokens. The engine itself is structured by the network's consensus mechanism, Proof of Stake. The engine's efficiency is maximized through the issuance structures proposed in EIP-1559.

All of these components (explored in great detail throughout the conversation) contribute to the concept of ETH as 'Ultra Sound Money.' Soundness describes the degree of efficiency and security in the storage and exchange of monetary value. Economic security, anti-fragility, optimized issuance, efficiency, and scarcity combine to create a robust, maximally effective network. This could be the best episode we've ever recorded. ETH is Ultra Sound Money. Pass it on.

------ 🧑‍🎓 Want access to this episode's exclusive Debrief? Join the Bankless Nation: https://shows.banklesshq.com/p/exclusive-debrief-ultra-sound-money ------

Topics Covered:

0:00 Intro 5:08 The Economic Side of ETH 11:40 Ethereum's Economic Engine 24:00 Integration, The Meme, and Monetary Premiums 35:23 Sound Money & Economic Security 42:58 Cryptoeconomic Horsepower 47:57 Load-to-Power (Towing Capability) 55:59 Competing at the Base Layer 1:02:17 Repairing the Engine (Defense) 1:20:18 POS Plutocracy? Trust? 1:24:43 Engine Fuel 1:33:13 Engine Resilience 1:38:33 Redundance & Security 1:49:10 Stealth & Insurance 1:59:01 Economic Efficiency 2:09:11 Ultra Sound Money 2:18:00 ETH is Money 2:24:12 Hard Money 2:33:13 Closing & Disclaimers

------ RESOURCES

The Bull Case for Cryptography https://shows.banklesshq.com/p/-moon-math-the-bull-case-for-cryptography 

ETH is Ultra Sound Money https://newsletter.banklesshq.com/p/eth-is-ultra-sound-money-market-monday 

Justin’s Research https://ethresear.ch/u/justindrake/summary 

Justin on Twitter https://twitter.com/drakefjustin?s=20 

------ THIS WEEK ON BANKLESS:

🗞️ Weekly Rollup (3/19): https://shows.banklesshq.com/p/-rollup-elon-musk-nft-song-stimulus  🧢 Weekly Action Recap (3/20): https://newsletter.banklesshq.com/p/another-1400-weekly-recap  ⚫ Token Thursday - Ren (3/18): https://newsletter.banklesshq.com/p/rens-trillion-dollar-opportunity  ✏️ Ultra Sound Money (3/15): https://newsletter.banklesshq.com/p/eth-is-ultra-sound-money-market-monday  🐦 Follow Bankless on Twitter: https://twitter.com/BanklessHQ 

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures 

Justin Drake is a researcher at the Ethereum Foundation and is leading the charge of applied cryptography to the Ethereum network. Last time he was on the podcast, we discussed cryptography as the foundation for what we called ‘Moon Math.’

This week, Justin returns to the show to discuss Ethereum’s economic engine and how its design decisions (EIP-1559, Proof-Of-Stake, Issuance, etc.) emerges as an incredibly bullish evolution of sound money: Ultra Sound Money.
------

Download the crypto meta to your brain in this weekly show. ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/  🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/  ------ GO BANKLESS WITH THESE SPONSOR TOOLS:

⭐️ AAVE - BORROW OR LEND YOUR ASSETS https://bankless.cc/aave 

🚀 GEMINI - MOST TRUSTED EXCHANGE AND ONRAMP https://bankless.cc/go-gemini 

💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith 

📱 DHARMA - MOBILE ONRAMP DIRECTLY INTO DEFI https://bankless.cc/dharma  ------ TOPICS COVERED:

0:00 Intro

1:00 MARKETS 1:10 BTC Price 1:55 ETH Price 3:00 DeFi: TVL, DPI, DPI/ETH 5:41 AssetDash https://assetdash.com/  7:23 ETH in Smart Contracts vs. Exchanges https://twitter.com/sassal0x/status/1371648558122737665?s=20  10:05 Anniversary of ETH’s $90 Low https://twitter.com/AlexanderFisher/status/1370719570789609472?s=19  13:31 Uniswap Dominating Dexes https://twitter.com/spencernoon/status/1371937457449676802?s=20  15:49 DPI Performance https://twitter.com/BigSky_7/status/1371169093764722690?s=20 

16:44 RELEASES 19:10 zk.money https://zk.money/  22:25 Superfluid - Cashflows https://www.superfluid.finance/  26:05 Argent Layer 2 https://www.argent.xyz/blog/layer-2-plans/  26:45 OpenZeppelin Sentinels https://blog.openzeppelin.com/introducing-sentinels/  28:02 SafeSnap - Decentralized Governance https://blog.gnosis.pm/introducing-safesnap-the-first-in-a-decentralized-governance-tool-suite-for-the-gnosis-safe-ea67eb95c34f  30:26 Gemini $GUSD on Aave? https://twitter.com/tyler/status/1371960808498982917?s=20  33:34 FLI Index - Indexcoop x DeFi Pulse https://twitter.com/indexcoop/status/1372268192530243584?s=21  35:35 0x Live on BSC https://blog.0xproject.com/0x-protocol-is-now-live-on-binance-smart-chain-d9329fc974ad  38:03 Ether Cards - New NFTs https://sale.ether.cards/ 

39:07 NEWS 39:26 Stimmies & Crypto https://www.marketwatch.com/story/americans-ready-to-plow-10-of-stimulus-checks-into-bitcoin-and-stocks-survey-says-11615823512  42:25 Wealth in America 44:55 Morgan Stanley & Direct Crypto Access https://www.cnbc.com/2021/03/17/bitcoin-morgan-stanley-is-the-first-big-us-bank-to-offer-wealthy-clients-access-to-bitcoin-funds.html  46:53 Meitu Buying ETH https://twitter.com/frxresearch/status/1372206714255147008?s=20  49:22 Yearn v2 TVL https://twitter.com/bantg/status/1372374377573011462?s=20  50:19 UNI Grants https://twitter.com/uniswapgrants/status/1371893183454580738  52:39 PancakeSwap & Cream DNS Hijacking https://www.theblockcrypto.com/linked/98353/defi-pancakeswap-cream-dns-hijackings  54:02 NFT Google Search Boom https://twitter.com/Darrenlautf/status/1370980084820025348?s=20  55:04 Good Luck Brian? https://www.businessinsider.com/bad-luck-brian-meme-nft-crypto-art-blockchain-ethereum-foundation-2021-3?utm_source=reddit.com  57:03 Elon Musk NFT Song https://twitter.com/elonmusk/status/1371549960030842893?s=20  58:15 Tesla Meme Title Changes https://i.redd.it/v0wt07kb47n61.jpg  59:04 NFTX Protocol https://twitter.com/scott_lew_is/status/1371989298791251968?s=20  1:01:20 CFTC Investigating Binance https://www.theblockcrypto.com/linked/98138/binance-us-investigation-report  1:04:11 Binance Hires Former US Senator https://decrypt.co/60946/binance-hires-former-us-senator-to-help-navigate-regulations  1:04:44 Canada ETFs. USA Soon? https://www.theblockcrypto.com/daily/98098/canada-bitcoin-etf-us-2021  1:06:27 Bill Gates, POW, and the Environment https://www.nytimes.com/2021/03/09/business/dealbook/bill-gates-bitcoin.html 

1:08:13 TAKES 1:08:43 ETH - Store of Value for the People https://twitter.com/BanklessHQ/status/1371876278886875136?s=20  1:10:20 Three Types of People in Crypto https://twitter.com/RyanSAdams/status/1372208566971535365?s=20  1:14:46 Porting Your Career to DeFi https://twitter.com/sassal0x/status/1371305642179186692?s=20 

1:18:28 What We're Excited About https://www.linkedin.com/pulse/why-world-would-you-own-bonds-when-ray-dalio/ 

1:27:18 MEME OF THE WEEK https://twitter.com/L_Nakaghini/status/1372216933546921987?s=20 

1:27:51 Closing & Disclaimers

------ THIS WEEK ON BANKLESS:

🎙️ Podcast | 1confirmation (3/15): https://shows.banklesshq.com/p/-authenticity-in-crypto-1confirmation  🏴 SotN | Andrew Steinwold (3/16): https://shows.banklesshq.com/p/-sotn-38-the-state-of-nfts-with-andrew  ✏️ ETH is Ultra Sound Money (3/15): https://newsletter.banklesshq.com/p/eth-is-ultra-sound-money-market-monday 

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures 

Download the crypto meta to your brain in this weekly show.
------

Devin Finzer is Co-Founder & CEO of OpenSea, the largest decentralized NFT marketplace for buying and selling digital goods.

Like all our AMAs, this was streamed live and incorporated questions from our Inner Circle Discord and live YouTube Chat. These are hosted the 2nd and 4th Wednesday each month, so mark your calendars, tune in, and ask your questions!

----- 🚀 SUBSCRIBE TO NEWSLETTER: http://bankless.substack.com/​​​ 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/​​​  ----- GO BANKLESS WITH THESE SPONSOR TOOLS:

⭐️ AAVE - BORROW OR LEND YOUR ASSETS https://bankless.cc/aave​​​ 

🚀 GEMINI - MOST TRUSTED EXCHANGE AND ONRAMP https://bankless.cc/go-gemini​​​ 

💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith​​​ 

📱 DHARMA - MOBILE ONRAMP DIRECTLY INTO DEFI https://bankless.cc/dharma 

------ Resources:

OpenSea https://opensea.io/ 

Devin on Twitter https://twitter.com/dfinzer?s=20 

----- THIS WEEK ON BANKLESS:

📈 Market Monday (3/8): https://newsletter.banklesshq.com/p/eip-1559-on-the-horizon-market-monday  🎙️ Podcast | Bankless 2.0 (3/8): https://shows.banklesshq.com/p/-welcome-to-bankless-2021-edition  🛠️Tactic | Synthetic Stocks (3/9): https://newsletter.banklesshq.com/p/how-to-trade-synthetic-stocks  🏴State of the Nation | 3LAU (3/9): https://youtu.be/5KY9W3Ybmdc  🐦 Follow Bankless on Twitter: https://twitter.com/BanklessHQ 

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures 

Devin Finzer is Co-Founder & CEO of OpenSea, the largest decentralized NFT marketplace for buying and selling digital goods.

Like all our AMAs, this was streamed live and incorporated questions from our Inner Circle Discord and live YouTube Chat. These are hosted the 2nd and 4th Wednesday each month, so mark your calendars, tune in, and ask your questions!

-----

Andrew Steinwold is a respected voice in the NFT space and is managing partner of Sfermion, an NFT-native investment firm.

We unpack the recent NFT boom and digest the innovation, successes, failures, and lessons in the space as we reflect and move forward. ------ 📣REGISTER FOR COINDESK CONSENSUS 2021 AND SAVE $20 W/ BANKLESS: http://bankless.cc/consensus2021  ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/  🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/  ------ GO BANKLESS WITH THESE SPONSOR TOOLS:

⭐️ AAVE - BORROW OR LEND YOUR ASSETS https://bankless.cc/aave 

🚀 GEMINI - MOST TRUSTED EXCHANGE AND ONRAMP https://bankless.cc/go-gemini 

💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith 

📈 KWENTA - DERIVATIVES TRADING WITH INFINITE LIQUIDITY https://bankless.cc/kwenta  ------ SotN #38: The State of NFTs, with Andrew Steinwold (Past, Current, and Future)

When Andrew was last on Bankless for 'The Bull Case for NFTs' in September 2020, the Nation was introduced to NFTs as an ocean of opportunity for democratizing value. The landscape for NFTs has changed drastically in the last 6 months, but Andrew's approach has remained generally similar.

Andrew updates us on his expectations on the future of NFTs in the context of the current boom. He addresses the notion of the 'NFT Bubble' and the blurred distinction between memes and value. We dive into Proof-of-Work vs. Proof-of-Stake and what makes for a genuine NFT – in terms of both content and distribution.

Through the trials of this cycle, we have found many NFT-specific insights and lessons. Andrew explores the successes and failures of experimentation in this space. We highlight Cryptopunks, which boasts an organic release, being the first of its kind, and mass community adoption.

------ RESOURCES:

The Bull Case for NFTs https://newsletter.banklesshq.com/p/the-bull-case-for-nfts-jake-burkhman 

Andrew on Twitter https://twitter.com/AndrewSteinwold?s=20 

Zima Red - Andrew's Podcast https://andrewsteinwold.substack.com/ 

Sfermion https://www.sfermion.io/  

------ THIS WEEK ON BANKLESS

🗞️ Weekly Rollup (3/12): https://shows.banklesshq.com/p/rollup-march-2  🧢 Weekly Action Recap (3/13): https://newsletter.banklesshq.com/p/weekly-action-recap-683  🛠️ Trading Synthetic Stocks (3/9): https://newsletter.banklesshq.com/p/how-to-trade-synthetic-stocks  🏴 State of the Nation | 3LAU (3/9): https://youtu.be/5KY9W3Ybmdc  ✏️ The Digital Culture Revolution: https://newsletter.banklesshq.com/p/defi-options-strategies-for-traders  ⚫ The Case for $100 SUSHI: https://newsletter.banklesshq.com/p/the-case-for-100-sushi  🐦 Follow Bankless on Twitter: https://twitter.com/BanklessHQ 

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures 

Andrew Steinwold is a respected voice in the NFT space and is managing partner of Sfermion, an NFT-native investment firm.

We unpack the recent NFT boom and digest the innovation, successes, failures, and lessons in the space as we reflect and move forward.
------

Nick Tomaino and Richard Chen are partners at 1confirmation, a crypto venture fund with $75M+ in assets under management (AUM).

In this episode, we explore the relationship between narratives and fundamentals in the space. ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/  🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/  ------ GO BANKLESS WITH THESE SPONSOR TOOLS:

⭐️ AAVE - BORROW OR LEND YOUR ASSETS https://bankless.cc/aave 

🚀 GEMINI - MOST TRUSTED EXCHANGE AND ONRAMP https://bankless.cc/go-gemini 

💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith 

📈 KWENTA - DERIVATIVES TRADING WITH INFINITE LIQUIDITY https://bankless.cc/kwenta​  ------ Topics Covered:

0:00 Intro 3:05 How this bull market feels 10:57 1confirmation's Thesis 14:40 Authenticity 18:26 Crypto-Natives vs. the fakes 26:05 Authentic 'ETH Killers,' Fake VC Chains 38:58 BinanceChain 43:53 Narratives vs. Fundamentals 49:30 On-Chain Verifiable Authenticity 1:01:00 MaRkEtS aRe eFfiCiEnT 1:05:07 Narrative Bull, Fundamental Bear 1:10:31 Dune Analytics & Data 1:20:25 What's The Next Big Thing? 1:24:02 The Changing Landscape 1:33:13 Bull Market Predictions 1:39:32 Closing & Disclaimers

------ Resources:

Nexus Tracker https://nexustracker.io/ 

Richard's Superrare dashboard https://duneanalytics.com/rchen8/superrare_4 

Crypto Art https://cryptoart.io/ 

Three Underrated Predictions https://thecontrol.co/under-the-radar-product-trends-2020-recap-and-2021-predictions-61125c98415 

Dune Analytics Blog: The Revolution Will Not Be Reported Quarterly https://duneanalytics.com/blog/revolution-not-quarterly 

1confirmation https://www.1confirmation.com/ 

Nick on Twitter: https://twitter.com/NTmoney?s=20 

Richard on Twitter https://twitter.com/richardchen39?s=20 

------ 📣REGISTER FOR COINDESK CONSENSUS 2021 AND SAVE $20 W/ BANKLESS: http://bankless.cc/consensus2021  ------ CATCH UP ON BANKLESS

🗞️ Weekly Rollup (3/12): https://shows.banklesshq.com/p/rollup-march-2  🧢 Weekly Action Recap (3/13): https://newsletter.banklesshq.com/p/weekly-action-recap-683  🛠️ Tactic | Synthetic Stocks (3/9): https://newsletter.banklesshq.com/p/how-to-trade-synthetic-stocks  🏴 State of the Nation | 3LAU (3/9): https://youtu.be/5KY9W3Ybmdc  ✏️ The Digital Culture Revolution: https://newsletter.banklesshq.com/p/defi-options-strategies-for-traders  ⚫ The Case for $100 SUSHI: https://newsletter.banklesshq.com/p/the-case-for-100-sushi  🐦 Follow Bankless on Twitter: https://twitter.com/BanklessHQ 

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures 

Nick Tomaino and Richard Chen are partners at 1confirmation, a crypto venture fund with $75M+ in assets under management (AUM).

In this episode, we explore the relationship between narratives and fundamentals in the space.
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