Evening News | a16z releases 2022 Crypto Industry Status Report; Do Kwon proposes to fork the Terra chain into a new chain without algorithmic stability

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"What important events have occurred in the past 24 hours?"

1. a16z releases 2022 Crypto Industry Status Report, stating it is in the middle of the fourth "price innovation" cycle

a16z today released its 2022 Crypto Industry Status Report, which points out that the crypto industry is in the middle of the fourth "price innovation" cycle; for creators, Web3 is much better than Web2, offering fairer economic terms; cryptocurrencies are having an impact on the real world, including wireless networks, carbon credits, and digital identities. Cryptocurrencies are not just a financial innovation but also a social, cultural, and technological innovation; Ethereum dominates Web3, but competitors like Solana and Polygon are also striving to catch up. Currently, there are nearly 4,000 active developers on Ethereum each month, 1,000 on Solana, and about 500 on Bitcoin.

a16z also stated that the development of the crypto industry is still in its early stages, estimating that there are currently 7 million to 50 million active users on Ethereum, and Web3 could reach 1 billion users by 2031. (Source link)

2. South Korean lawmakers urge bringing Do Kwon and executives of related crypto exchanges to Congress for hearings

According to Newspim, South Korean lawmakers are urging to bring Do Kwon and executives of related crypto exchanges to Congress for hearings. Representative Yun Changhyun of the People's Power Party stated, "We should bring Luna CEO Do Kwon and executives of related crypto exchanges to the National Assembly to hold hearings on the reasons for the current situation and measures to protect investors."

Yun Changhyun accused, "Some people have questioned the behavior of exchanges during the crash of Luna and UST. Coinone, Korbit, and Gopax stopped trading on May 10, Bithumb stopped on May 11, but Upbit did not stop trading until May 13. As legislative delays continue, investor losses are increasing. Meanwhile, authorities continue to treat the massive losses in digital assets as unavoidable." (Source link)

3. Vitalik: Hope to see Ethereum become a system more like Bitcoin

Ethereum founder Vitalik Buterin tweeted that there are still some public contradictions in his thoughts and values that he has been contemplating but feels he has not fully resolved. He hopes to see Ethereum become a system more like Bitcoin, emphasizing long-term stability, including cultural stability, while realizing that achieving this goal requires quite a bit of positively coordinated short-term changes, which are contradictory. He tends to reduce reliance on individuals and tries to establish a fixed system that can withstand the test of time.

He hopes to see Ethereum become an L1 that can survive in truly extreme situations, but he realizes that many key applications on Ethereum already rely on security assumptions that are much more fragile than anything we think is acceptable in Ethereum protocol design, which is contradictory. He does not like many modern financial blockchain "applications" (like high-priced NFTs), but he reluctantly appreciates that these things are an important part of maintaining the cryptocurrency economy and pay for all the cool DAOs/governance experiments he likes. (Source link)

4. Do Kwon proposes new Terra revival plan, suggesting to fork Terra chain into a new chain without algorithmic stability

According to the Terra community website, Do Kwon proposed a new "Terra Ecosystem Revival Plan." Specifically, it includes: 1. Forking the Terra chain into a new chain without algorithmic stablecoins, with the old chain called Terra Classic (token Luna Classic--LUNC) and the new chain called Terra (token Luna--LUNA); 2. Luna will be airdropped among Luna Classic stakers, Luna Classic holders, remaining UST holders, and important application developers of Terra Classic; 3. TFL's wallet addresses will be removed from the airdrop whitelist, making Terra a fully community-owned chain; 4. Incentivizing network security through token inflation, with a target staking return rate of 7% per year.

Do Kwon stated that the plan is still under negotiation with the community, and specific details may change. The proposal will take effect after being approved by token holders' votes. Kwon promised that voting would start on May 18. (Source link)

5. S&P Ratings establishes DeFi department to build DeFi analysis and risk assessment capabilities

S&P Global Ratings has established a DeFi strategy department to create a decentralized market framework for investors. Additionally, the company has hired Chuck Mounts as Chief DeFi Officer to lead the department and will work closely with newly appointed DeFi transformation head Charles Jansen. The team will build S&P's analysis and risk assessment capabilities for traditional finance and DeFi clients.

Previously, S&P Ratings stated last year that it was seeking to hire crypto analysts to address the "potential widespread impact of decentralized finance on the existing ecosystem." (Source link)

6. Miami city token MiamiCoin price has plummeted by 95%, potentially attracting regulatory attention

According to QUARTZ, the first city token MiamiCoin, promoted by Miami Mayor Francis Suarez, had dropped to $0.0032 on May 13, a decline of up to 95%, and the current price has slightly rebounded to $0.0044.

Additionally, TheVerge reported that regulators may investigate the related token, and if the SEC investigates and determines that MiamiCoin is an unregistered security, both CitcyCoin and the city of Miami may have to refund investors.

Previously, Miami Mayor Francis Suarez announced in November last year that he would invest in MiamiCoin and obtain Bitcoin returns through the investment. He also stated that Miami would become "the first city in the U.S. to distribute Bitcoin returns directly to residents as dividends." (Source link)

"What excellent articles are worth reading in the past 24 hours?"

1. "Dragonfly Capital partner reviews Terra incident: Algorithmic stablecoins need strong regulation"

Terra was initially aimed at creating experimental stablecoins. In just one year, Terra became one of the best-performing assets in this cycle and also experienced the most spectacular collapse of mainstream coins in history. The impact of Terra's failure will resonate throughout the industry in the coming years, and people's impressions of DeFi and decentralized stablecoins will be "significantly diminished."

This article provides a complete review of Terra's development history and ultimately poses and answers two questions: What else can Terra do? What long-term consequences will Terra's failure bring?

2. "Opinion: The Web3 debate should focus more on types rather than the degree of decentralization"

Existing "centralized" systems are not as excessively centralized as Web3 advocates typically describe. "Traditional" banks delegate many activities to local branches, and even central banks are often consortiums. On the other hand, many Web3 critics point out the extreme inefficiencies brought by proposed decentralized architectures and the inevitable re-emergence of "centralization" in Web3 (NFT platforms, currency exchanges, wallet providers).

This article describes some areas that may have potential impacts on Web3 from aspects such as identity and reputation, data empowerment, and organizational innovation, making it easier for readers to understand the distinction between universality and redundancy.

3. "IOSG: Random numbers are an indispensable part of the Web3 world"

Some typical on-chain random number generation methods, such as future block hashes, have significant room for cheating and security vulnerabilities. So what kind of random number is truly trustworthy and secure? This article reflects on the topic of randomness and security and illustrates the indispensable role of random numbers in almost all of Web3 through scenarios and use cases such as GameFi, NFTs, DeFi, DAOs, and the use of VRF in L1 consensus mechanisms.