🔥 Stale donuts and bleak moons

Let's have a look at what's happening with Reddit tokens

GM, frens! Ambire here with our weekly newsletter. Today we’re discussing - once popular Reddit tokens and what happened to them, Cointelegraph being accused of manipulating the market, Web3 on Fire’s latest podcast episode, The Protocol Council of Polygon (sounds fancy doesn’t it), France passing landmark legislation to regulate crypto games and another crypto/IT-friendly Free Zone being opened in UAE. Let’s get down to it!

Stale donuts and bleak moons

A look at what's happening with Reddit tokens

Crypto and Reddit share a long history. Many avid users have turned to the platform as a source of news, discussion, and even employment opportunities in the world of cryptocurrencies.

In May 2020, Reddit launched Moons as a part of the Community Points program, an initiative to reward users for their contributions to the different subreddits. Moons were ERC-20 tokens built on the Arbitrum Nova blockchain.

Subreddit Points, known as Donuts, are ERC20 tokens on the Ethereum blockchain. They serve as a dual-purpose system, functioning as both a reputation metric and a signaling tool for community governance. Points are earned by users for their contributions to the subreddit, based on their karma. They can be used to vote on weighted polls, display reputation in comments, purchase badges, etc.

Now, Reddit is getting rid of these tokens. According to an official statement, the Community Points program will be 'sunset' next month. This sudden decision has caused an uproar among token holders who had invested time and effort into earning these rewards.

Moreover, it was revealed that Reddit moderators allegedly had prior knowledge of the program ending and used it to their advantage by selling off their tokens before the public announcement. This has sparked outrage among users, who feel betrayed and outraged by this insider trading.

MOON token lost 87% of its value on the day of the announcement, leaving many holders with significant losses. The situation has also put the reputation of Reddit mods in question, as their actions have caused harm to community members who trusted and supported them.

If this were a stock, individuals engaging in similar behavior would face strict consequences, but alas, crypto is still crypto, and the boundaries remain vague.

Despite challenges, there is still a ray of hope for community tokens. This specific use case has ignited a new conversation about the potential of community-based tokens and their impact on online communities.

If there's one positive takeaway from Reddit's story, it's a clear indication that there is a genuine demand for these tokens as rewards and incentives. Given the right governance and oversight, they have the potential to flourish in the future.

Crypto news website accused of spreading fake information for personal gain

In the past few years (and as crypto gradually became more popular), some crypto websites have started to appear as go-to sources of news and information for the crypto community. However, "with power comes responsibility,” and it seems like some companies are not ethically handling the trust given to them.

One of these companies is Cointelegraph, a major crypto news website that has been accused of spreading fake information for personal gain.

Recently, Cointelegraph shared a tweet claiming that the Bitcoin Spot ETF had been approved. This news spread quickly, causing excitement and speculation among the traders. However, it didn't take long for this news to be debunked by Bloomberg analysts and Fox Business journalists, who confirmed that the information was not true.

Cointelegraph then edited their tweet, adding "according to rumors" before eventually deleting it completely.

After receiving backlash for spreading false information, Cointelegraph apologized and announced that they would be conducting an internal investigation into the matter. However, things took a turn when a crypto trading platform called Rollbit shared a screenshot of a long position allegedly opened by Cointelegraph right before the fake news was spread.

The screenshot showed a profit of over $2 million from a $50,000 trade that was opened with 50x leverage. While the accuracy of this screenshot is still unconfirmed, it raises questions about the ethics and motives of Cointelegraph.

Whether or not this was a genuine trade made by Cointelegraph, the impact of their false news was evident as millions of dollars in long and short positions were liquidated in just 4 hours afterward. This just highlights the fact that media still rules the crypto market, whether it's Twitter moonboys or greedy news outlets, it's a good idea to have a good sense of healthy skepticism when it comes to news in this industry.

The Web3 on Fire Podcast: Building Decentralized Social Protocols & dApps

In the latest insightful episode of the Web3 on Fire podcast, host Rob sits down with Ryan Li, the co-founder of CyberConnect and Link3. Ryan’s tech journey is nothing short of inspiring, having worked with industry giants like Google and Instagram before venturing into the crypto space. His work with CyberConnect and Link3 highlights his commitment to leveraging Web3 for social empowerment and digital ownership. Give the podcast a follow and listen to the latest episode now:

Polygon's PIP-29 and The Protocol Council

Polygon's latest governance proposal, known as PIP-29, has sparked a lot of discussion within the crypto community. This proposal introduces the innovative concept of a Protocol Council, entrusted with the crucial task of overseeing modifications to Polygon's core smart contracts.

The Protocol Council comprises 13 members who have been carefully chosen based on their expertise and contributions to the blockchain industry. These include renowned names such as ZachXBT, Mudit Gupta, Mariano Conti, Viktor Bunin, Zaki Manian, Anthony Sassano, Justin Drake, Jordi Baylina, Jerome de Tychey, Liz Steininger, Gauntlet and L2Beat.

The purpose of the Protocol Council is to ensure that any modifications made to Polygon's system-level smart contracts are done in a secure and smooth manner. This is crucial for the overall functioning of the network and for maintaining trust among users.

The Council will be responsible for supervising time-locked changes to the smart contracts, with a minimum of 7 out of 13 consensus signatures required for ordinary changes. In case of an emergency, a 10/13 consensus will be needed but with no time lock.

It's important to note that this governance mechanism is separate from Polygon's existing community-led governance process, which is determined through on-chain voting. The aim of introducing the Protocol Council is to add an additional layer of oversight and ensure that the network continues to evolve and improve in a secure and transparent manner.

The Council will play a crucial role in the upcoming Polygon upgrades, which include the development of a decentralized network of multiple ZK-based Layer 2 chains (the upgrade is also sometimes called Polygon 2.0). These upgrades are expected to be implemented in the first half of 2024.

France passes landmark legislation to regulate crypto games

Last Tuesday French National Assembly passed the so-called Sorare law, which introduced the first dedicated regulatory framework for video games utilizing NFTs and crypto-powered monetization.

Among the members, 437 voted for its adoption, while 77 voted against it.

This new legislation aims to regulate video games that utilize NFTs and cryptocurrency-based monetization schemes. It was voted as part of the broader Digital Space Regulation Law, with 437 members voting in favor and 77 against its adoption.

The law represents a momentous milestone in establishing the legitimacy of the crypto gaming industry, which has encountered numerous challenges and scams in recent times. The law provides a clear definition for games featuring monetizable digital assets, thus laying the foundation for a new regulatory framework specifically designed to cater to the unique characteristics of crypto games.

This legislation must still undergo examination by the Constitutional Council though, and the Council has the authority to review and potentially reject it. Some deputies are still hoping for a rejection, as opponents have pointed out that this law would give preferential treatment to crypto games over online casinos.

In any case, this brought a sigh of relief for many popular crypto games in France, like Sorare and Stables. These games were previously facing the risk of being categorized as gambling, which could have led to higher tax burdens and stricter regulations or maybe even a ban.

UAE opens up new 'free zone' for web3 and AI

The United Arab Emirates' emirate of Ras Al Khaimah has recently launched a new free zone dedicated to digital assets, Web3, and AI.. This move is part of the emirate's efforts to attract businesses from emerging technology sectors.

The new zone, called RAK Digital Assets Oasis (RAK DAO), was officially inaugurated on October 19th by Sheikh Mohammed bin Saud, the ruler of Ras Al Khaimah. The aim of RAK DAO is to support companies involved in digital and virtual assets, blockchain technology, Web3, and artificial intelligence (ie. emerging technologies) by providing specialized support and grants.

This initiative comes as the emirate looks to diversify its economy away from traditional sectors such as tourism. The ruler of Ras Al Khaimah, Sheikh Saud, stated in his opening remarks that the goal of RAK DAO is to create a hub where digital assets can thrive and new innovative ideas can come to light. He also noted that the emirate has recognized the potential of digital assets and wanted to be a first adopter in this space.

RAK DAO joins other Web3-friendly free zones in the UAE, such as Abu Dhabi Global Market, Dubai Multi Commodities Centre, and Dubai International Financial Centre. These free zones offer entrepreneurs 100% ownership of their businesses and have their own tax schemes and regulatory frameworks.

The Oasis already signed up a set of partners, including the HBAR Foundation, local bank Rakbank and Romanian AI firm Humans.ai to help grow its ecosystem. The RAK DAO also has financial, administrative and legislative independence, allowing it to function as a purpose-built, innovation-enabling free zone for the virtual assets sector.

The fun page

Other worthy reads:

Info on Flooring from waleswoosh:

A thread on Scroll by Shiva:

Tokenized Pokemon cards meta by S4ammy.eth:

That's all for now, frens.

We'll see you next week. And remember, the market conditions are temporary, but our commitment to building a better DeFi is here to stay. Thanks for joining us, and we look forward to seeing you back next week. Cheers!

Yours, The 🔥 Team

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