I've been participating in my first DeFi DAO project and as a 20+ year ASF member, this is literally open source v2. It is really fascinating to be part of this new generation.
These protocols typically have various strong incentives to prevent drops below a certain collaterization ratio.
There is a real danger that ETH/USD moves too quickly while gas fees get too high for the system to function properly and we see a lot of defi losses. I don't think this is likely but it could happen.
I was hoping this is Dragon Age Origins but it is just another crypto scheme. Or whatever this is...
>If a majority and at least 10M ZRX in voting power are cast in support of the proposal, it is queued in the (optional) Timelock.
I have been on the internet since 1996 and that sentence just sounds like "we'll print money unless you stop us". Which is great, even though I have not been part of this particular money making scheme, I have profited of similar crypto monetizations.
I think I do not understand stuff like this anymore: "We created an on-chain binding governance system able to perform arbitrary actions on a 2M ZRX community-owned Treasury, seed-financed by 0x Labs. The smart contracts work in orchestration with 0x’s existing staking system, for what concerns both the voting power delegation management and votes cadence."
Even having read the ToS from https://0x.org/terms it feels like I understand even less now. It sounds like you put money on their ledger and you are fine with whatever.
I think I don't understand crypto and I would like to play DAO. I share a really popular Dragon Age Inquisition spreadsheet if you are interested in something completely different: https://docs.google.com/spreadsheets/d/16Pt3AMXjBogM7UZ7Y92-.... I'll approve your edit or copy requests soonish...
The principles behind the technology are very simple, but actually implementing it in a way that is secure, decentralized, and robust is incredibly difficult and requires a great deal of technical sophistication. Since a lot of this stuff is some what new, people take liberties to create jargon for describing it. It's not that unreasonable, when people come up with something they like to name it and sometimes those names can be fancy or unfamiliar.
The main problem is that running programs on Ethereum is expensive, every computation costs money. Past efforts to create a fully automated stock market on Ethereum ran into these costly problems and the end result is that the exchange ends up having very little liquidity or users. Imagine a version of eBay were just placing a bid costs you money. Well with a market you place bids and cancel them, and often time do that repeatedly as you gain new information. If every single one of these actions costs you money and you need to wait potentially 20-30 seconds for your action to be confirmed by Ethereum (think of Ethereum as a very very slow computer), well people become hesitant to participate.
0x is a system to remove the vast majority of an exchange's function off Ethereum and only use Ethereum as a settlement layer or to resolve potential disputes. To do this, they introduce a market maker system where market makers act as middle men between people adding liquidity and people removing liquidity. These market markets do not use Ethereum to act so a user can interact with them without worrying about fees or time delays. To be a market marker, you need to put up some collateral into a pool, if you perform your function correctly then you get rewarded with fees, if you make a mistake or try to screw someone over, you lose your collateral.
The market maker system 0x uses is what allows basically 99% of activity to operate outside of Ethereum and drastically reduce costs and improve performance. If everyone acts honestly then things run smooth and cheap. If someone decides to do something funny, then and only then does the power of the Ethereum blockchain get involved and a dispute resolution process is engaged, there is a cryptographic system to verify which participant is at fault and that participant gets penalized.
That's all 0x is in a nutshell, it's a system that markets can participate in to run cheap and fast decentralized exchanges.
Okay so now the question is... who runs 0x itself? Who makes decisions about 0x, its future, how will the exchange improve over time?
This announcement is an answer to that question. Instead of 0x itself being a centralized entity, 0x is creating a set of computer programs that will run on Ethereum where future upgrades are voted on by people who own 0x tokens (ZRX). Someone can propose an upgrade to the system (by uploading an Ethereum program to the Ethereum blockchain), people who own 0x tokens can vote on the proposal. If the proposal gets the necessary votes, then the proposed program will receive write permissions to resources associated with the 0x system.
One of the resources the program will get write access to is a pool of 0x tokens. Initially there are 2 million 0x tokens that will be placed in a pool, and proposals can make use of those tokens to fund activities or do who knows what, it's basically some seed-financing to get the ball rolling.
The snark in this comment, and the general aggresiveness on HN to a new technology is becoming tiring.
If you don’t know about it and want to join the discussion then research it or askquestions rather than armchair dismissing it.
There is a lot of new jargon in crypto but what scientific field doesnt have jargon? I’m no expert but have read a bit about crypto and while I may not back every project out there I think the basis of using digital signatures and blockchains for registration of immutable data and verification of it has a lot of potential.
Sorry it wasn’t about your dragon game :) I may go and read about that today
Wait a second, you are calling my comment out for snark but I'm not allowed to call the OP news post "indistinguishable bullshit". Oh wait, I did not call the post bullshit...
You can join the discussion about DAI, it'll take about 5 minutes on your end if you google DAI spreadsheet and you will be able to farm on the top end of every other DAI player. It'll also not cost you any money.
If you can not explain your crypto bullshit maybe it is my prerogative to call out your bullshit. Maybe I think smart contracts are dumb, digital signatures is something that has been solved in 1996 and your blockchain is just dumb.
Sorry my post wasn't pretending your bullshit is magic. Maybe go read about something else.
Given the massive negative externalities and lack of widespread adoption beyond speculation and crime after more than ten years, I think that snark is a reasonable default response to any cryptocurrency-related news.
By that logic, we should have given up on the idea of cell phones in the late 20th century[1]. FWIW Motorola released the first commercial mobile phone in 1983.
The market for mobile communication was well established. In the mid 80s, car phones were already popular for rich executives and other people who needed to be accessible on the go, and it was the late 90s when flip phones started becoming accessible for middle class. In 2004, polyphonic ringtones raked in $4 billion in sales.
Bitcoin was released in 2009. By that metric, we should be far past the car phone stage by no, but we're still trying to figure out who needs this thing.
If we're talking about car phones, which I admittedly know very little about, those were released in 1946[1]. So that would mean it was ~40 years until they became popular for rich executives.
I think it's fair to say that crypto's "release" was in 2009. But the point being, technologies rarely hit "widespread adoption" within 10 years of release. I'd be curious to hear counterexamples.
Car phone service in Chicago was launched in 1946 and reached capacity within the year.
>On October 2, 1946, Motorola communications equipment carried the first calls on Illinois Bell Telephone Company's new car radiotelephone service in Chicago.[2][3] Due to the small number of radio frequencies available, the service quickly reached capacity.
Widespread adoption of mobile phones was limited by availability (or distribution) of radio frequencies. Laptops were adopted between 1987 and 1991 as soon as the input device was figured out. The 3G smart phone was figured out between 2003 and 2006 (the time most markets took to adopt 3G data). The modern touchscreen smartphone was figured out between 2007 and 2010 (the rise of the iPod touch and Android).
The problem is it not a "new technology" -- the original Ethereum DAO was made 5 years ago. The arguments for and motivations for the 0x DAO read exactly the same as 5 years ago, and the same as many other decentralized government schemes that came after.
Is this going to be better than the previous N attempts? I seriously doubt it.
It's really weird though when you realize that jEveAssets and the tools accompanying your API access are more capable that anything your bank makes available to you and the only issue is how they integrate with your banks bond/fund structure.
Even weirder when you realize that your Eve Online market tools and their historic data access might be more capable then what you account manager at your coop has access too.
I mean, of course there is regulation and there are reasons, but come on... Regional ammo/torpedo/missile markets may be far more volatile then a lot of real markets...
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