Unchained

Is ETH on Its Way to Becoming Ultra-Sound Money? Yes, Says Justin Drake - Ep.262

08.10.2021 - By Laura ShinPlay

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Ethereum just went through its most complex upgrade ever. Justin Drake, researcher at the Ethereum Foundation, discusses what the upgrade, aka the London hard fork, means for ether’s future as what he calls "ultra-sound money." At the end of the episode, he also drops a few Bitcoin hot takes. Show highlights:

his background and how he got involved in crypto

how EIP 1559 will affect Ethereum now that it is live

why burning ether is good for the Ethereum economy

what two concepts are crucial to understanding money

what three ways ether is used as money

why he believes ether will become “ultra sound money,” when gold and silver are just “sound money”

what the main drivers of ETH’s value are

how the merge from proof-of-work to proof-of-stake will happen for Ethereum 

how much more efficient Justin calculates proof-of-stake will be compared to proof-of-work

why people are saying Ethereum is going through a “triple halvening”

what factors influence how much Ethereum is issued and burned

how Ethereum could become deflationary

why net sell pressure is about to decrease

what projects are burning the most ETH now that EIP 1559 is live

why Justin is worried about Bitcoin’s future

what Bitcoin could do to survive once it only subsists on transaction fees

whether Justin considers himself a bitcoiner

how ETH as ultra-sound money is becoming a meme

 

Thank you to our sponsors!

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Episode Links

 

Justin Drake

Twitter: https://twitter.com/drakefjustin

 

Written content

June 23 Ethereum Foundation ETH 2.0 Research AMA (command F for Justin Drake responses)

https://www.reddit.com/r/ethereum/comments/o4unlp/ama_we_are_the_efs_research_team_pt_6_23_june_2021/

“If capped-supply gold is sound money decreasing-supply ether is ultra sound money”

https://twitter.com/drakefjustin/status/1396796596281614339

 

Math

Modeling ETH based on EVM fees

https://docs.google.com/spreadsheets/d/1U9cGxGY3_t7m4MEIpjKWtRcA2zRajywaxMCZYqbF9eI/edit#gid=0 

Calculating ETH supply

https://docs.google.com/spreadsheets/d/1ZN444__qkPWPjMJQ_t6FfqbhllkWNhHF-06ivRF73nQ/edit#gid=0

Podcast appearances

Bankless “Modeling Ultra Sound Money” (April 28)

https://shows.banklesshq.com/p/-sotn-44-modeling-ultra-sound-money

Bankless “Ultra Sound Money” (Mar 23)

https://twitter.com/drakefjustin/status/1374049775474114562

Bankless “Bull Case for Cryptography” (Jan 25)

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

 

London/EIP 1559/Ethereum 2.0 Resources

Unchained content

Episodes

Ethereum’s EIP-1559 Will Solve Some Problems But Big Ones Will Remain

https://unchainedpodcast.com/ethereums-eip-1559-will-solve-some-problems-but-big-ones-will-remain/ 

Ethereum 2.0: What You Need to Know

https://unchainedpodcast.com/ethereum-2-0-what-you-need-to-know/

Why Ethereum 2.0 Could Fail and How It Could Be Fixed

https://unchainedpodcast.com/why-ethereum-2-0-could-fail-and-how-it-could-be-fixed/ 

Previous resources

EIP 1559 links (Tim Beiko)

https://hackmd.io/@timbeiko/1559-resources 

Messari Research

https://messari.io/pdf/messari-report-eth2-the-next-evolution-of-cryptoeconomy.pdf 

Staked ETH address

https://etherscan.io/address/0x00000000219ab540356cBB839Cbe05303d7705Fa#analytics

DETH of Ethereum

https://medium.com/ideo-colab/the-deth-of-ethereum-98553866e81b

 

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