Unchained - Why One Solana Builder Is Still Optimistic About the Network - Ep. 606

Episode Date: February 9, 2024

Listen to the episode on Apple Podcasts, Spotify, Fountain, Overcast, Podcast Addict, Pocket Casts, Pandora, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform. On Tuesday, Solana suffered a network outage, just shy of a year since its last shutdown. The blockchain had to quickly get a new version out and notify its validators to upgrade to it and restart their systems before blocks could be produced again, resulting in downtime of roughly five hours. This was previously something that had happened regularly to the blockchain, but seemed to have been largely addressed over the past year. Lucas, the CEO of Jito Labs, which builds infrastructure for Solana and staged a highly successful airdrop last year that helped rejuvenate the blockchain, joined Unchained to discuss what caused the outage, whether it’s something that builders on Solana should be concerned about for the future, recent improvements Solana has made to its technology, whether the implementation of Firedancer would have prevented this incident, and the promise of the Solana phone.  Show highlights: What caused the Solana blockchain’s outage this week Whether Solana needs to have better quality control  Whether the halt of the network affects the builders in the space What recent developments in the infrastructure surrounding Solana give Lucas confidence in the network Whether the Firedancer client that’s now in development would have prevented this week’s outage The promise of the Solana phone Whether the network going down presents a setback for the Solana community in terms of recognition and momentum Whether financial companies will consider using Solana if these issues keep occurring Thank you to our sponsors! Popcorn Network iTrustCapital Polkadot Guest Lucas Bruder, CEO of Jito Labs Links Recent coverage of Unchained on Solana: Jupiter Founder Meow to Critics of JUP Airdrop: ‘Give Me a Break’ Three Crypto Pioneers on Crypto’s Monolithic vs. Modular Debate Anatoly Yakovenko on Solana’s Astounding Recovery and Its Future Plans Outage Unchained: Solana Back Online Again After Suffering 5-Hour Outage Matthew Sigel’s explanation for why the outage happened Mert’s tweet on how Solana prioritizes security over liveness CoinDesk: Can We All Stop Pretending That Solana Is in Beta? Learn more about your ad choices. Visit megaphone.fm/adchoices

I mean, I think it's definitely a setback, but I think that it's a good reminder that these systems are hard and that testing needs, there needs to be a lot of testing on these networks, Solana and also other networks that may have similar issues. I think people are still very optimistic on Solana. I'm certainly very optimistic on it. Hi, everyone. Welcome to Unchained. Your no hyperestead. You're no hyperestead. source for all things crypto. I'm your host Laura Shin, author of The Cryptopians. I started covering crypto eight years ago and as the senior editor of Forbes was the first mainstream meter reporter to cover cryptocurrency full-time. This is the February 9th, 2024 episode of Unchained. Pocodot is a leading layer zero blockchain with over 2,000 developers, and the Pocodot 2.0 upgrade will be a massive accelerator for the ecosystem. Join the community at Pocodot.network

slash ecosystem slash community. With I trust capital, you can buy and sell crypto in a tax advantage retirement account. Enjoy significant tax advantages, 24-7 access, and the industry's lowest fees. VaultCraft is your no-code

defy toolkit for customizing non-custodial automated yield products on any EVM chain. Join the referral program today and start earning rewards. Learn more at vaultcraft.io. Betmov activated.

The score bet app here with trusted stats and real-time sports news. Yeah, hey, who should I take in the Boston game? Well, statistically speaking. Nah, no more statistically speaking. I want hot takes. I want knee-jerk reactions. That's not really what I do. Is that because you don't have any knees?

Or... The score bet. Trusted sports content, seamless sports betting. Download today. 19 plus, Ontario only. If you have questions or concerns about your gambling or the gambling of someone close to you, please go to conicsonterio.ca.

With Amex Platinum, you have access to over 1,400 airport lounges worldwide. So your experience before takeoff is a taste of what's to come. That's the powerful backing of Amex. Conditions apply. Today's guest is Lucas Bruder, CEO of Gito Labs. Welcome, Lucas. Hi. Thanks for having me.

Excited to be on. So heads up, everyone. In case you can't tell, I have a cold, which is actually technically COVID, but it doesn't feel too bad. So if I sound congested, that's why. why. So let's talk about this along of blockchain, which was approaching this one-year anniversary of having no outages. But then on Tuesday, it did have another one lasted five hours. What caused it? Yeah. So there was a bug in the client. And I guess I'll try to keep it pretty high level here.

But I don't know the exact details, but there's basically a piece of the code that is kind of running a a translator and it keeps the state of that translator intact and there was some some bugs in there where the translator kind of froze inside the validator. And so the network stopped producing blocks. And when you say translator, what does that mean? Yeah. So taking a level deeper, there's something called there's like a program cache. And you can think of this cache as storing, let's say like, a program can be in like Spanish and the validator will translate that to English and it will save the results of that translation in this cache.

And so this is happening for programs and the cache is there to kind of help speed up the runtime. So you're not constantly doing this translation every time a program is called. And so there's a bug where I think something along lines of like there's a bug that kept putting things into the cash and kicking them out and kind of got stuck in this loop. The post-mortem will come out pretty soon, but that's my understanding of it. Okay. So, you know, obviously I'm not a technical person, so correct me if I'm

wrong. But to my mind, this is more like some kind of core functionality in Solana, which is different from like the type of problem, a lot of blockchain C, which is, you know, they get overwhelmed by traffic, like the classic kind of throughput issue, the blockchain Trilemma. Would you say that this is more like a Solana specific problem or is it like, you know, Solana struggling with a general blockchain problem? I would say this is like a Solana. This is just like a software bug. It wasn't related to some of the other bugs that we've seen on Solana or other networks.

Like there's been a few networks that have shut down with the inscriptions traffic. I wouldn't say it's not related. to like increased activity. It was just a bug and some piece of code that basically caused the network to essentially halt. So that makes me wonder then about quality control issues because how is it that something like that ever even made it to main net? Yeah, that's a good question. I think that's something that the Salonelot Labs or now the Onza team with the new client that's coming out, focus a little better on.

I know they've been making good progress on there and you know, it is, all it takes is one bug for something like this to happen in, you know, I think the, there needs to be a little more quality control and testing around the network.

They have made huge strides and performance. The update from 116 to 117 saw massive reduction in the amount of memory and compute required to run the network. There's been a lot of bug fix too, but, you know, there's still, unfortunately, some lingering bugs in there. And so for you, as a builder on Solana, like, does that change your confidence in the

blockchain at all? Or, like, how does it change your perception as somebody who's building on it? Yeah, I mean, I think there's a part of me that is somewhat, I think anytime these things happen, whether it's Solana or another network, you can feel somewhat frustrated. but I think that Solana, the amount of effort and the amount of improvements that they've made over the last several years is kind of outshining this for me personally. I think we're also in a unique case in that Gito Labs builds a, or we basically fork the Solana Labs validier client and made a MEV optimized version of it. And so we're kind of in a unique position that we, during the outage, like right now, roughly 59% of Solana steak runs our client. And so we have to pull in that patch as well.

So I think we kind of get a unique insight into like how the validator works and kind of the release process and fixing these bugs compared to the average Salana team, which maybe is just focused on like trading or borrow lend and things like that. But yeah, I think like still very confident in the team. team's ability. And I think there's going to be, there continues to be improvement in testing on Solana. And I think, you know, with the addition of other clients like Fire Dancer, I think that the testing and test coverage will continue to increase. And when you say there are things that you see that give you confidence in developing a salon, like what are those kind of more

insidery things that you see? Because I'm sure you're aware, like to the outside, it's like, this keeps happening. It's shaking confidence in the blockchain. So. Yeah. I think like, some of the stuff I touched on earlier, like the performance, I think in the past, Solana has gotten a lot of, I guess, like, criticism around having high compute requirements. And so to see the network continue to bring those computer requirements down with the introduction of 117 and in the future with, you know, future software releases, I think that is super promising. And what are those new compute requirements?

When you say they're lower, what are they? Or what were they? And now what are they? So one is the memory. I can't remember the exact memory usage in 116. I think right now in 117, I want to say 116 was like 150 to 200 gigabytes of RAM was being used or memory on these servers. Now it's down to like 30 gigabytes or so.

And then we're also seeing a massive reduction in the compute as far as like the processor utilization. So previously we were saying like 40% on our servers. Now those are down to 20%. And so basically, yeah, that creates what more decentralization because there's a lower threshold. Yeah, it creates a lower threshold for running a validator. So that, well, I guess there's two different ways you can look at it. One is in the network today, you can run a Salana validator RPC node on hardware that wasn't possible a year ago.

And so that's great because it opens up more options for lower server fees. potentially more data centers or running validators at home on cheaper hardware. The other kind of way to look at it is that there's a potential to increase the performance of the network as well. And when I'd talk about performance here, I'm talking about increasing the block size and the number of transactions per second that the network can run. Okay. So one other thing about, you know, this kind of perception is, so a few things like

Murmuntas of Helius Labs told a crypt that he thought an outage would likely happen again. and he said he would be prepared to take the heat for it. He said, quote, what we can't do is be afraid of progress for the sake of not being harassed on Twitter, which I thought was just interesting for somebody to say like, oh, it's going to happen again. But then the other thing I see is the Salana team talking about how like it prioritizes the security of people's funds over liveliness. But then, you know, the truth is like there was a threat on Twitter that talked about how, you know, after the chain came back on they expected, or would come back online, they expected there would be arbitrage opportunities for bots. They even estimated that there would be about $25 million in MEV that, you know,

you know, you look skeptical. So, you know, let me know if that didn't end up being true. But, you know, I just wonder, like, you know, is that accurate when they say they're prioritizing the security of people's funds if it does have a financial cost? Um, yeah. I mean, I mean, I think obviously the situation is not ideal, and I wish that this didn't happen, but I do think that it's better than the network. I do think it's important that users' funds are protected at the actual L1, and in a perfect world, this wouldn't happen. But I think that given the situation, like, for better or worse,

Salana's gotten very good at these restarts, and I think if you were to look at an other network with similar like decentralization characteristics as Solana, where you have, you know, hundreds of validators or thousands of validators. I think the five-hour restart's pretty good. Like, I don't know how like an Ethereum or these other L-1s would handle a similar situation. Yeah. I mean, I think Ethereum hasn't had any downtime. So I'm just trying to think if there's another example, I pray they don't. So in a moment, we'll talk about the future of Solana and other issues around its tech. But first, a quick word from the sponsors who make this show possible.

Pocod is the original and largest layer zero blockchain with over 2000-plus developers. The anticipated Pocodot 2.0 upgrade will be a massive accelerator for the ecosystem, upgrading the infrastructure with eight times higher transaction throughput and twice as fast block times, tailored core time for the needs of every protocol, trustless bridges to multiple chains, revised tokenomics with a token burn to reduce inflation, perfect for GameFi and Defi to build, grow, and scale. Get your one-three ideas to market fast.

Think big, build bigger with PogoDot. Join the community at PogoDot.network slash ecosystem slash community. Did you know you can buy and sell crypto with tax benefits in an individual retirement account? I trust capital makes this possible. But what does this mean? When you buy crypto outside an IRA, like on an exchange, you face taxes on gains. But in an IRA, like a Roth IRA, gains can be tax-free.

ITrust Capital also has some of the lowest fees in the industry and 24-7 accessibility. Start now and maximize your retirement savings with I-Trust Capital. Back to my conversation with Lucas. So one other thing that I saw that seemed to be an interesting point was CoinDes published an op-ed. And the title was, can we all stop pretending that Salana is in beta? And then the little tagline said, like, you can't target mass adoption. And here they were talking about the Salana Saga phone through storefronts and smartphones while also claiming to be a work in progress when things go wrong.

So I wondered what you would say to that criticism. I think the beta tag still applies. I think they get a lot of slack for it. But I think for me as a builder, it's fine. It's just kind of a tag. Okay. But so do you feel that the phone is marketed in that way? Or like, do you have one of those phones?

I don't. Okay. If you were to kind of talk about the appeal of it to somebody, like, how would you sort of bill, you know, what it is? The promise of the phone. Yeah. Yeah. I think it's, we've seen, I think it's like the first actual chance at interoperable. interrupting the App Store kind of duopoly and making a phone that is targeted towards

people that are into crypto and making it, making a system that securely stores private keys for people to use. I think that the phone isn't, obviously, it's a Salana mobile and it has a Salana branding, but I think it's not just about Salana. I think it's about any other network that requires cryptography and, you know, custody of funds and private key management. I think this is pretty important if you are, if you're in the industry, you want to, you want people custody their own funds and you want secure management of private keys. And I think it's a big step forward, big step towards that. And then earlier you mentioned Fire Dancer. So let's say, that Fire Dancer had existed this week.

Is this the kind of problem that would have also affected anybody using Fire Dancer? Or, you know, I think back to like the Ethereum DDoS attacks when they kind of were switching between clients. Like, I don't know what, you know, how this problem compares to,

you know, a situation where there would be multiple clients. Like, would have still happened or not? I don't think this would have happened. No, I think this isn't related to like the network. as a whole, it's related to a particular

implementation of the client. And so what I mean by that is, you know, the Salana Protocol, it uses a standard language to communicate between all these validators on the network, just like Ethereum and other networks do. There's like a gossip network and it has a protocol for sharing blocks

and how transactions are encoded and all of that. And I think that this particular instance was not some like shortcoming in the protocol, but it was more of just a software bug in the implementation of the protocol itself. And so I know the FireDancer team is taking security extremely importantly. It's like, you know,

their number one concern. They're rebuilding a lot of stuff from the ground up. It's not just like a copy pace or it's like, oh, like, let's look at this program cache and like, we'll just copy and translate this code to see. It's like, okay, let's look at the system as a whole and figure out what are the individual pieces of the network, how do they communicate with each other, and how do we kind of communicate the same language with different code running. And so I think that this particular bug most likely would not have happened with FireDancer. That's not to say that FireDancer will be bug free.

I'm sure there will be bugs in that as well. But I think that this is something that probably would not have happened in FireDancer. Oh, interesting. Honestly, when hearing you say that makes me worried for Bitcoin. Why is that? Because they also have the one software client, I think, Bitcoin Core. Oh, yeah. Yeah, all software has some form of bugs. And it's just software engineering is really hard. So one other thing that, you know, I just was thinking about in terms of the bigger context is this happened. And at this moment when Salinas sort of seemed to be rising from the ashes of FTX and the whole SPF thing, especially with the trial, you know, over.

And it just feels like the whole community has been super energized. You know, you guys have this huge air drop. Actually, I think it was during the trial. But then, you know, I wondered what you thought, like, at this moment when it sort of seemed to be on this upswing to have this event. Like, you know, how do you think it affects the community? What do you think it means for the future? success of Solana if it continues to have this kind of issue? Yeah. I mean, I think it's definitely a setback, but I think that it's a good reminder that these systems are hard and that testing needs,

there needs to be a lot of testing on these networks, Solana and also other networks that may have similar issues. I think people are still very optimistic on Solana. I'm certainly very optimistic on it. you know, we're not looking at other blockchains or anything like that. I think there's a lot of work to do on Solana. And I think other people feel the same way. It's like the only network that's proven that it can scale to like thousands of transactions per second in production and not just like, you know, 10 servers running in the same data center in AWS.

There's servers running all over the world on Solana. And so it's a very, I think it's still very promising. there's still a lot of work to do and I look forward to more people getting involved in the core software and helping out. And what was your background before you chose to work on Salana? Like, you know, had you tried other blockchains or like what was it?

You know, you talked about how you think it's the only one that can really scale, but I wonder, you know, what led you to that conclusion that this was the answer? Yeah, so my background's in electrical and computer engineering. So I studied computer engineering at Carnegie Mellon focused on embedded systems and firmware. So I was writing low-level C and some assembly code on microcontrollers.

And I played around with Ethereum a little bit, did some M-EV on Ethereum. And my first, I guess, experience with Solana was participating in one of the first Solana hackathons. And I really just kind of fell in love with it. I think Anatolia is a pretty similar background to myself, being kind of this low-level OS and like C and C++ engineer and a lot of the other people on the Salonelan Labs team kind of shared that background and using, I think when you like go from using Ethereum to using something like Solana, the user experience is just infinitely better. I think as an engineer,

there's still like a few things that can be done to improve the developer experience, but I think overall it's a very smooth developer experience and interacting with the chain is just super nice experience. And I feel like there's a lot of people that have kind of shrugged off increasing the performance of the L1. And I think that there's still a lot more juice to squeeze out of this hardware and software. And I feel like obviously it's kind of changing now

with the appearance of other kind of like all L1s that are focusing on performance and TPS. But I think at the time, Solana was like the clear winner there. And I think it still is a clear winner. I don't think we're seeing any networks that are as decentralized as Solana from a node standpoint, data center standpoint, geographic standpoint that's doing the performance of Solana. So Anatoly also talks frequently about his vision of Solana being used for financial use cases. But I actually felt like this history of outages would kind of scare off financial applications more than some of these other applications that have been taking off on Solana, like, you know,

gaming, meme coins, et cetera. So I just wondered, you know, how do you think Salana kind of overcomes the reputational damage to try to appeal more to these financial developers? Yeah. I think a big thing will just be time. I think time in a lot of testing and multiple clients and increased decentralization. I think that like the TVL of like Ethereum took a very long time. for it to get to the billions and where it is today.

And a lot of that was time. I think Solano will have a similar thing where it's, you know, the more battle tested and the more time elapses, the more people will trust it, especially the more time that elapses without outages. And I think, you know, having other teams contributing to the core code base will help a lot as well. So you have Onza, you have the jump crypto team and FireDancer,

you have Jito Labs. syndica building another validator client in like all of these kind of valid air clients contributing to consensus will help these financial institutions kind of get over that hump. All right. Is there anything else about this news this week or this issue that you would want to mention? Yeah.

I mean, I think it was cool to like be a participant in the restart process. I think anyone that's participated in it before can like kind of watch in on what's going on. And, you know, you see hundreds of validators all over the world in Discord communicating on how to restart the network and coming to consensus on how to do that. And I think that's, you know, it is a bummer that it happens. But I think it's cool to see that, you know, there are a lot of participants in this network that are kind of coming to together to get the network back up. So it's pretty cool. Yeah, I saw Anna totally tweeted that. that he like basically slept through the whole thing and he woke up and it was not resolved.

Yeah. So. Yeah. I think people, people don't realize like how many people are involved with that. I think a lot of people associate Solana with SBF or Anatoly or these other kind of like, people want these like figureheads for these networks, you know, Doquan and not these people are Anatolias in a completely separate bucket from all these people.

but they don't realize that there's like, you know, amazing core engineers from the Onza team and Jito team. And you have like some of the big validator companies that are contributing to this protocol. And so I think it's pretty cool to see a lot of those people kind of shine when these things are happening. All right. Well, thanks for giving us an inside look at it all. Yeah. Don't forget. Next up is the weekly news recap today presented by Unchained contributor, Megyn Christensen. Stick around for this week in crypto after this short break. Defy just got way easier with Valkraft, your no-code toolkit for building, deploying,

and monetizing automated yield strategies in a few clicks. Forget spending months of R&D and capital when you can instantly launch your crypto fund with Valkraft on any EVM chain. From wallets and institutional service providers to a non-DIFIDGens, anyone can use Valkraft to supercharge their crypto. Join Vaultcraft's referral program, unite with the community, and supercharge your crypto. Details on vaultcraft.io. Local news is in decline across Canada, and this is bad news for all of us.

With less local news, noise, rumors, and misinformation fill the void, and it gets harder to separate truth from fiction. That's why CBC News is putting more journalists in more places across Canada, reporting on the ground from where you live, telling the stories that matter to all of us. because local news is big news. Choose news, not noise. CBC News. Welcome to this week's Crypto Roundup. I'm Megan Christensen from Unchained.

FTCX, the bankrupt crypto exchange founded by Sam Bankman-Fried, is reportedly seeking bankruptcy court approval to sell its substantial stake in AI startup Anthropic. The stake, valued at approximately $1.4 billion, represents a crucial asset for FTCS, navigates through bankruptcy proceedings. Concurrently, FDX creditors are challenging the bankruptcy repayment plan, arguing for compensation based on current crypto prices rather than November 2022 values. An additional argument is that the digital assets themselves could be returned to

creditors rather than a value based on the date of the bankruptcy filing. This leaves for a chance that creditors can be repaid in full for their losses. Simultaneously, multi-coin capital, a renowned crypto investment firm is reportedly in discussions to sell its FTX bankruptcy claim, which is estimated to be around $100 million. This development indicates a broader trend within the crypto industry, where firms are actively seeking to mitigate risk and liquidate assets in the wake of FtX's downfall. The legal challenges for Terraform labs have deepened. Hong Chengjun, former CFO with a crypto firm, has been extradited from Montenegro to South Korea. This extradition, decided upon by Montenegro's Ministry of Justice comes after Han completed a four-month prison sentence

for attempting to travel with forged documents. In contrast, Do-Quan, Terraform's former CEO, finds his situation evolving differently. A Montenegro court has once again revoked the approval for his extradition to South Korea or the U.S., citing procedural issues and a lack of clarity and the handling of the extradition requests. This decision follows a series of appeals and reversals concerning Kwan's extradition, underscoring the ongoing legal contention surrounding his case. In a related development, a former Terraform Labs developer testified against Doe Kwan and co-founder Shin Hong Song in a sole court. The developer, referred to as quote, Mr. Lee, end quote, claimed that both Kwan and Shin were aware that they were violating local security laws

when promoting the TerraUSD stable coin. While lawyers for Shin and Kwan disputed these claims, the testimony could impact the case by South Korean prosecutors who have accused Terraform Labs of defrauding investors. Bankrupt crypto lender Genesis, part of the digital currency group, DCG conglomerate, is reportedly seeking approval to sell its nearly $1.4 billion of shares in grayscale Bitcoin Trust, GBTC. The proposed sale also includes assets from the grayscale Ethereum Trust and gray scale Ethereum Classic Trust. This development follows an intense legal tussle between Genesis and Gemini, a crypto exchange and a bank. Genesis had previously pledged GBT shares to Gemini under the Gemini Earned program,

and Gemini subsequently foreclose on these shares, citing Genesis for failing to uphold its financial obligations. Who owns the legal rights to these shares remains in dispute. Prometheum, a U.S. regulated broker-dealer for digital asset securities, has taken a notable step by including the cryptocurrency ether in its new custodial services. The firm set itself up as a special purpose broker-dealer and crypto-custodian through the financial industry regulatory authority, indicating its alignment with SEC guidelines for crypto-asset securities. In choosing ETH as the initial asset for custody, Prometheum is venturing into a gray area of regulation. The SEC, led by Chair Gary Gensler, has so far not definitively classified ETH as a security,

making Prometheum's decision to do so a bold move. Aaron Kaplan, co-CEO of Prometheum, has emphasized their focus on tokens with major market cap and liquidity, with ETH being the first among them. The firm's move to treat ETH as a security could have implications for how digital assets are regulated and classified in the U.S., especially considering the SEC's ongoing ambiguity regarding ETH status. Continuing with the SEC, a new, quote, dealer, end quote, Brul has alarm bells ringing within the crypto community. This week, the Commission voted to adopt new rules redefining securities dealers as a market participant acting as a market maker and proving liquidity. The SEC's decision described in a 247-page document clarifies that the dealer framework will apply based on trading activities and not the type of security. The securities include, quote, crypto-acid securities, end quote, and the rule requires dealers controlling over $50 million in funds to register with the agency.

SEC commissioners Hester Pierce and Mark Ueda opposed the rule, expressing concerns about its broad reach and practical implications. Pierce highlighted the challenges for liquidity providers and automated market makers to register, citing a lack of clarity and potential implementation challenges. Ua warned about the extensive jurisdiction claimed by the SEC and the regulatory confusion it could cause, particularly in the crypto markets. The SEC also postponed a decision on a joint ether ETF application by Invesco and Galaxy Digital, continuing to delay direct spot ETH exposure for U.S. investors. This week, bankrupt crypto lender BlockFi and collapse hedge fund three-ears capital reached a court settlement, the terms of which remain undisclosed. U.S. bankruptcy judge Michael Kaplan, presiding over the case, ruled that the settlement detail should be

sealed, stating that disclosing them would be, quote, counterintuitive. end quote. This settlement comes after a dispute where BlockFi claimed 3AC owed it $129 million, while 3AC countered with the claim of $200 million against BlockFi. The disagreement centered around preferential payments made just before bankruptcy, potentially giving the recipient an unfair advantage. The Dimension Network, a new modular blockchain, has been in the spotlight following its main net launch and the air drop of 70 million dim tokens, valued at approximately $400 million. despite the successful airdrop the launch faced technical challenges, particularly with validator issues. One such problem arose with Chorus 1, a major validator holding a considerable portion of the network's voting power.

Chorus 1 experienced technical difficulties, affecting the network's consensus mechanism. Amid these challenges, Dim, witnessed a substantial price increase of nearly 30% within 24 hours, reaching a market cap of $877 million. However, concerns were raised within the crypto community regarding the centralization of voting power. Big Brain Staking, the largest validator on the Dimension Network, controls about 18.5% of the voting power. Sparking discussions about the need for more decentralization. Egenlager, an Ethereum restaking protocol, saw a remarkable surge in its total value-locked, TBL, following the unpausing of caps on its smart contracts. The TVL soared by $2.8 billion to over $5.5.5.5.5.5.5.5.5.5.5.

billion, marking the largest daily increase in dollar terms since the protocol's mainnet launch in July 2023. A significant portion of this growth is attributed to deposits of Lido's stake to ETH, the most popular liquid-seeking token. The surge in eigenlayers, TVL, caused the protocol to hold nearly 1.5% of Ethereum's total circulating supply, emphasizing its growing influence on the restaking market. The protocol allows users to deposit various liquid stake tokens, like Rockup Pools, R-Eath, and coin bases, CBE, aiming to enhance liquidity and yield earning opportunities. Concurrently, Ethereum's reached a notable staking milestone, with over 25% of its supply staked on the network, valued at about $73 billion. And that is all. Thanks so much for joining us today.

If you enjoy this recap, go to unchainedcrypto.com. That is, unchainedcrypto.substack.com And sign up for a free newsletter so that you can stay up to date with the latest in crypto. Unchained is produced by Laura Shin, with help from Nelson Wang, Matt Pilchard, Juan Aronovich, Megan Gavis, Shoshank, and Merr in Korea. The weekly recap was written by Juan Aronovich and edited by Jeannie Kim. Thanks for listening. Unchained is now a part of the Coin Desk Podcast Network. For the latest in digital assets, check out markets daily five days a week with host Noel Atreson. Follow the Coin Desk Podcast Network for some of the best shows in critical. Crypto.