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Masa Foundation 7

A

Bankless nation. It is that time again for the weekly roll up, and David and I are doing it from a special location again. Oh, my God, I forgot to set you up. David, let me ask you the official question.

B

Sure, let's do it.

A

David, what time is it?

B

Oh, it's the bankless Friday weekly roll up. But it's happening on Thursday. Yes, it is, because we are on Wednesday, the third day of permissionless, here in the Kraken booth on the floor of Austin, Texas. We have a live audience for the first time ever. It's a little bit intimidating. Live studio audience, bankless citizens, people in the bankless Dao, all watching us as I speak these words right now. I don't know how I feel about that, but here we go.

A

You know what? We're just going with it. This is a fantastic setup that we have here at permissionless 2023. Actually, permissionless two.

B

Permissionless two is what they call it.

A

And Kraken put this booth together for us. So extremely grateful for the hospitality. This is a professional setup.

B

Yeah.

A

This is way better than my home office.

B

Not some amateur shit, that's for sure.

A

I know. And so David and I are in person today, obviously, and we're here to bring you the weekly roll up. All right, topics of the week. David, what are we talking about, man?

B

The CFTC has joined the SEC in the fight against crypto. Oh, wait, that's bad. That's a bad thing.

A

Yeah, I thought they were the good guys.

B

That's not great. Okay, well, there's more. FTX is about to sell a huge portion of their token holdings. Should we. Oh, that's also bad. Oh, no. Ethereum foundation just dropped a proposal on a native liquid staking. That's good. That's good. That's a good thing. And then finally, friend tech. Not dead yet. Okay, also good. Also good. I came back from Burning man and I thought that Friendstech would be dead, and it was like four times larger than I ever thought that it would be.

A

Is there some signal there?

B

Yeah. And then my share price going into Burning man was 0.7.

A

Dude, I don't want to hear about your share price since.

B

And I came back from burning man, it was 0.2 and I was sad.

A

Well, that makes me happy. Sorry, David.

B

Then some more bad news of the week. Vitalik Twitter got hacked. Got hacked. Some details around that and how to protect yourself from Twitter and how to make sure that you actually might, might be exposed. You might have your phone number in Twitter and you don't know about it. So we're going to talk about that.

A

One that I didn't know. Like, if Vitalik can get hacked, then what about the rest of us? David, before we get into the chatter of the week, and I know we want to talk about permissionless even before we get to the markets, we got to do a shout out to our friends and sponsors over at before we get to markets. I think the people deserve an update on permissionless.

B

Yeah.

A

Okay, so let's talk permissionless. It's been great so far.

B

We are on the second, the last third of the last day of permissionless. So it's coming to a close.

A

So do you want to tell me about some of your favorite talks so far? Let's start with the content.

B

I've done eight talks.

A

Done eight talks.

B

Excuse me. I have moderated eight panels.

A

Yes.

B

So I'm racking up the content. How many did you get to?

A

I did one, David. Eight to one.

B

Wow.

A

Anytime I'm asking, is lower better or higher better? I don't. It depends on whether you like to do lots of panels or not.

B

I love doing panels.

A

Okay. I don't. So anytime someone asks me to do a panel, I'm like, david, would you like to do this panel?

B

Wait, that's how I ended up with eight. Okay. That's how I think that my favorite one was. We did a Jesse, Paula, and Ben Jones. On chain is the new online conversation, which, I mean, we just had them on for the super chain, but this was a net new episode, net new conversation. And I really enjoyed that one. That one felt really fun. And that one I actually just did not prepare for because I just know these guys haunted in sphere.

A

What was the takeaway from that?

B

So we have like on chain is the new online. This is the new top of funnel for base. Base is kind of like base in the front, optimism, governance in the back. We have the golden era of web three design happening around base. Like, we're getting better at design for attracting new people to get them on chain. And then we have retroactive public good funding in the back. And so connecting that, those dots and filling in the gaps a little bit and then talking about how this is a flywheel, right? More people coming in on base leads to more retroactive public goods funding, which makes base better as a part of the op stack, which leads to more people coming into base. And this is all a flywheel that hopefully scales public goods out to the world. That is the Tldr of the conversation. Doesn't mean that you shouldn't also go listen to it. It's available on the YouTube, on Blockworks YouTube, not bankless YouTube. Actually.

A

Yeah, there's. And you know, do you want to ask me what my favorite one was?

B

Sure, you only did one, but it.

A

Was actually the one that I loved. And it wasn't because of me. It wasn't because of the moderator, but the panel that we got to do with the regulators. So it was Hester Pearse. I think we'll talk about it later in the episode. Hester Peirce. Brian Quinten, CFTC regulator Tom Emmer, Majority House Majority Whip so we got a member of Congress on the floor to come to our crypto conference, and then Kristen Smith, of course, and she's kind of a crypto lobbyist. And this, honestly, it gave me some hope, David, because things are looking kind of bleak from a us regulatory perspective. And this gave me some hope because these people were fired up and they were ready to fight for crypto and they have some power in DC to do that.

B

You say bleak, but it's definitely bleak. With strong notes of optimism.

A

Yeah.

B

Yeah. I think the comment that got the most applause was towards the end where Hester purse said, we don't even need to, I can't remember what she said the details were, but the punchline was like, the law is on our side.

A

Yeah.

B

So we just have to, you know, make sure that the United States has just runs by the rule of law and then we will be golden.

A

Yeah, absolutely.

B

It's nice having the law on your side.

A

Oh, it's. I mean, that is great. And we are winning in the court system, that's for sure. That was a point that was made, David. There's also been some bankless parties going on.

B

We had the largest party that we've ever thrown. That was 600 people. 600 people. A bunch of bankless citizens. Some little podcast guests. Jesse Pollock was there. The block routine was there. Gosh, everyone. I think, I don't know if there was other parties that Monday night, but everyone was at our party because it was the best.

A

It was so fun.

B

We throw the best parties.

A

Yeah. Meeting in real life, meeting people in real life. I was getting used to the handshakes that you do and the hugs and stuff.

B

Ryan is learning how to be human. This is actually the third time that Ryan and I have ever hung out. It does feel normal. He does feel like a human. He's coming along.

A

I'm doing human things. I think I got a lot of proof of humanity on this trip. There's a lot of Twitter posts out there with images. So I think RSA truthers, they're going to have a hard time after this conference. Speaking of this conference, what is happening next year at permissions?

B

Next year?

A

You missed it. People missed it.

B

Permissionless three, this is something that I've been unpacking with Mike from blockworks. We've got a lot of plans for permissionless three. I think we're realizing that, a, we want to keep on doing this. So permissionless three, here we go. Salt Lake City in October 2024. But we want it to be something net new. There's a bunch of conferences out there. There's a bunch of. Actually, there's three conferences going on this weekend, and we want permissionless to elevate. We think that we can apply some innovation to the content world, to the. To the conference world, and make something that's not just a conference, something. Something that's bigger than a conference, that has a conference in it, but more stuff around it. Here is my shoot from the hip idea that I'll share with you that is not totally set in stone, but I'm going to try and convince the blockwork squad of this.

A

So you're using your podcast fully platform.

B

That's exactly. To hear you day four of a three day conference, which I know doesn't make any sense, but that's because day four, I want to be tribal. Field day. Tribal games. So this is like tug of war and dodgeball and an obstacle course. There's a lot of nightmares from high.

A

School, from field day. You can invoke that.

B

Yeah. Yeah, I do. And so, like, if you are part of the tribe, like layer two versus arbitrum dodgeball or bankless versus blockworks, tug of war or bankless doubt? I don't know. Are you a part of a tribe? Come to the tribal field games.

A

Thanks.

B

Day four of the three day conversation.

A

In an industry dominated by nerds, David wants to bring back pe bullying.

B

Yes.

A

Oh, my God. Well, you know, I don't know if you were a nerd or jock in school, David, but, you know, I'll let.

B

The listeners come to the conclusion on that.

A

All right, well, cast your votes, folks. Let's talk markets. David, get to the market. So sorry for the fomo if you couldn't make it. Permissionless has been awesome, but let's get to the regular scheduled program. Thanks to Kraken, of course, for these charts. What are we looking at on the.

B

Kraken charts in the Kraken booth? It's been great.

A

Crackseption.

B

Okay, Ryan, I just had to pause our recording because I needed to verify this. And I am verifying it. We're up on the week. We are up on the week. I don't know how that happened. We dumped. We had the classic conference dump. We always dumped during conferences, but somehow we're up on the week. Bitcoin starting the week at $25,100, up 4% to $26,300. Wow. Oh, good for us.

A

Yeah. How about Eth price?

B

Eth price. 1550 on the week. We must have just, like, bottom ticked the perfect timing, up 4% on the week to 1610. And the ratio down 2.5% on the week. Ratio.

A

Ratio go down because ETF. Or is this noise?

B

Something like that, or noise. But definitely ETF is pushing pressure on the bitcoin side. Total crypto market, captain, 1.07 trillion on the week. I think that's about flat.

A

All right, well, look, I'm happy to play the happy music this week. This has overall been a net win on the price side. All right, David, we're just talking about the week to week price action, but I want to zoom out for a minute and talk about the cycle, the year that we're in. Did you see this?

B

Yep. Yeah, this is great meme. Great meme.

A

I don't know who made this. This is fantastic. Can you describe for listeners what we're looking at?

B

Okay, so we are looking at a. Call it a four by four box gridden. But these things are shifted up because the boxes lean upwards, and the first box in the top left corner is 2011, followed by 20 12, 20, 20 20 13, 20 14. And so these things go upwards, and then we go one row down, 2014 to 2017, and then we go down. And so these things are. We're talking about the four year cycles cut up into four years.

A

Right?

B

And so 2022 is lining up with the first year of a four year cycle, where it's the bear, it's reduced, and then 2023. Pre bull leads into 2024 1st bull and 2025 2nd bull, maybe second bull is synonymous for blow off top. We are most of the way through pre bull, and this is like. I feel like this is a part of a bell curve meme where it's just so stupid simple to understand that it's just like, oh, the cycles can't play out. Efficient market hypothesis. We're not going to have another cycle again. It can't be four year cycles over and over and over again. That's the mid curve take. And I think the left curve take is just like. It goes in four year cycles.

A

Yeah, I totally agree. And so is the right curve take. Right? So we got bear, we got pre bull, we got first bull, we got second bull. And if you look at this chart, I mean, it kind of maps, right? So 2023 is like 2019, which is what we've been saying, which is like 2015, which is like 2012. Remember 2012?

B

No, I don't.

A

I was not here for 2012.

B

2019, I would definitely characterize as just price being completely divergent from fundamentals. And that's definitely what I feel.

A

David, this is the base case. This is kind of my prediction. You know, like, it's hard to make predictions on cycles, yet I'm kind of ready to make it. I feel like it's probably going to play out this way.

B

Yep. Until proven otherwise.

A

Tell me about friend tech. All right, so you alluded to this in the intro. You were talking about coming back from burning man, being surprised that friend tech was still a thing.

B

And it's still a thing four times larger than I left it. Okay.

A

How do we know it's still a thing? I think we should talk about some metrics here.

B

Yeah, we got. There's a dune board that we can look at. I'll pull out some of the details here. The numbers I'm about to spit out are already five days old, and so there's even more numbers than this. But from the 8 September, new users came in at 1000 new users up 50%. Returning users 4025% up 25%, and then total incoming users. And this is as of just before recording, total users of friend tech. Unique users. Unique addresses for 1000, 480,000. And these are much more.

A

Wait, can you be that number again?

B

148,000 unique users of friendtech. Unique Twitter accounts that have signed into Friendtech. Which is why this is a better metric than just like, a unique Ethereum address. Wow. The volume, the TvL of Friendtech, 18,000 ether, that's $28 million. And that's 4500 ether in fees that has been collected by the system. And that is. That has been split. One half of those fees goes to the Friendstech team. The other half goes to all the friends tech participants, all the people that are aggregating the trading fees. 2.2 million transactions. 2.2 million transactions.

A

Can I ask you a question about this tvl really quick?

B

Sure.

A

So is this TvL all eth we're talking about?

B

It's all eth.

A

28 million in ETH. We're not talking about a native friendtech token. There is no token blading.

B

Nope. No stable coins. It's an EtH maxi system. There's only one currency inside of friendtech, and that's Ethan.