Kategorie: Crypto Business

• Sushiswap developers have submitted a new governance proposal to the community.

• The proposal seeks to divert 100% of fees generated on the platform to Sushi’s multisig.

• The funds would be used for Sushi’s multisig for a year or until new tokenomics are implemented.

Sushiswap developers want to divert trading fees

Developers of the decentralised finance (DeFi) protocol, Sushiswap, have submitted a new proposal to the community. According to the proposal, 100% of the fees generated on the platform would be diverted to Sushi’s multisig for one year or until new tokenomics are implemented.

This latest cryptocurrency news comes as Sushiswap is currently facing a significant deficit in its treasury. The deficit threatens the protocol’s long-term operational viability. 

In his proposal, the Head Chef, Jared Gray, said;

“After reviewing expenditures, it’s clear that a significant deficit in the Treasury threatens Sushi’s operational viability, requiring an immediate remedy. In my original proposal, Sushi operated with an annual runway of 9M USD. However, after my detailed review, we reduced that requirement to 5M USD. We made the reduction possible by renegotiating infrastructure contracts, scaling back underperforming or superfluous dependencies, and instituting a budget freeze on non-critical personnel and infrastructure.”

Despite reducing the project’s annual runway requirement from $9 million to $5 million, the treasury still provides for only about 18 months of runway.

The developers are now proposing to set up Kanpai, a fee-diversion protocol. The proposal, if accepted, will lead to 100% of fees diverted to the Treasury multisig for one year or until the project’s new token distribution and reward schemes become active. 

Sushiswap’s fee-diversion solution is temporary

The developers pointed out that the proposal is a temporary solution to a long-term problem. The proposal was put in place because new tokenomics will take time to implement

The Head Chef said;

“Kanpai is a temporary solution to a long-term problem, and a new tokenomics proposal is on the horizon, which will help address the long-term value proposition of Sushi for stakeholders. Sushi must implement a holistic token model that allows the rebuilding of the Treasury and delivers value for all stakeholders while reducing the fiscal liability carried solely by the protocol.”

In addition to Kanpai, the Sushi team said it increased its funding by securing several multi-million dollar partner deals. 

However, the developers added that relying on business development deals is only part of a successful business model to secure Sushi’s future. In October, asset management firm GoldenTree invested $5.2 million in Sushiswap.

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• Swyftx cuts 90 jobs as the cryptocurrency winter continues to affect more companies.

• The company follows exchanges like Coinbase, Bybit, and Kraken in reducing its employee headcount to cope with the bear market.

• Swyftx admitted that it grew too fast, and the bear market is now affecting its operations.

Swyftx becomes the latest crypto exchange to cut jobs

Australian crypto exchange Swyft, announced on Monday, December 5th, that it has cut 90 jobs. This represents 45% of the company’s total workforce, as the company has around 200 employees.

This latest cryptocurrency news comes as several companies find ways to cope with the bear market. In its blog post, Swyftx pointed out that even though it doesn’t have any direct exposure to FTX, its operations have been affected by the fallout FTX has caused in the crypto markets. The company wrote;

“Today, we’ve announced the hardest decision Angus and I have had to make in our careers. We’re saying goodbye to 90 talented friends and colleagues. As we’ve just announced to the team, Swyftx has no direct exposure to FTX, but we are not immune to the fallout it has caused in the crypto markets. As a result, we have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during H1 next year and the potential for more black swan-type events.”

Swyftx added that its business is uniquely well-positioned to weather events like FTX. Despite the robustness of its business, FTX’s collapse has affected the broader crypto market, and Swyftx also felt it. 

The cryptocurrency exchange added that its priority is to emerge from the current market in a position of strength. This will happen by managing operating costs to ensure its continued financial strength and to keep the confidence and trust of its customers.

Crypto companies continue to struggle in the bear market

Swyftx’s announcement comes a few hours after  Bybit, one of the leading crypto exchanges in the world, announced that it is set to cut 30% of its workforce. Bybit explained that the move is to ensure that the company survives the ongoing bear market. 

Coinbase and Kraken are some of the crypto exchanges that also reduced their workforce earlier this year. 

Swyftx admitted that it grew too fast. The company recorded massive growth earlier this year, but the bear market and the recent FTX collapse have affected its operations in recent months. 

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• PEGA Pool is set to launch next year and will become the first eco-friendly Bitcoin mining pool in the world.
• PEGA Mining is focused on reducing the environmental effects of Bitcoin mining.
• Clients that join the “Early Access” waiting list would benefit from a permanent 50% reduction in pool fees.

PEGA Pool will become the first eco-friendly Bitcoin mining pool 

PEGA Pool is set to become the first eco-friendly Bitcoin mining pool and is expected to launch next year.

PEGA Pool, a platform dedicated to reducing the environmental effects of Bitcoin mining, is expected to launch in 2023. The project focuses on making Bitcoin mining eco-friendly.

PEGA Pool is owned and operated by PEGA Mining, a UK-based cryptocurrency mining firm. 

According to the development team, PEGA Pool will focus on reducing bitcoin mining’s carbon footprint to create a more sustainable and eco-friendly industry. On its official website, the company said it would plant trees to help reduce the Bitcoin mining carbon footprint.

PEGA Pool is currently in the pre-launch phase and will be open to the public in Q1 2023. Clients can join the early access waiting list until launch. The team added that the PEGA Pool is open to all bitcoin mining clients regardless of their renewable energy usage.

PEGA Pool added that for clients that mine with non-renewable energy, it would use a portion of their pool fees to plant trees to help offset their mining carbon footprint. Clients that use renewable energy to mine cryptocurrencies will enjoy certain incentives. 

For instance, clients that mine with renewable energy will enjoy a 50% reduction in pool fees. Furthermore, pool fees are 2% for non-renewable energy clients and 1% for renewable energy clients.

Clients that join the early access waiting list will enjoy certain benefits

The use of non-renewable energy to mine Bitcoin is a subject that gained wide coverage over the past few years. Companies like Tesla had to suspend accepting Bitcoin as a payment method due to concerns over its carbon footprint during mining. However, the company said it intends to start accepting Bitcoin as a payment option for its vehicles again in the future. PEGA’s effort toward ensuring eco-friendly Bitcoin mining could be what is needed to convince Tesla to start accepting BTC payments again. 

With PEGA Pool currently in its pre-launch phase, the team said clients that join the “Early Access” waiting list would benefit from a permanent 50% reduction in pool fees.

PEGA Pool said it had planted 41,715 trees so far, for an estimated annual CO2 offset of 1111T. According to their official website, the team said PEGA Pool was built by miners and is run by miners. With years of experience in the crypto mining sector, the team understands what it is that miners need in order to be successful and profitable.

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FTX’s bankruptcy proceedings continue, and the company has now asked a judge to allow it to hire BitGo to secure its assets.

Bankrupt crypto exchange FTX has notified a federal judge that it wants to hire BitGo to safeguard the remainder of its digital assets as bankruptcy proceedings play out.

BitGo is a leading institutional custody firm.

The cryptocurrency exchange signed a custodial agreement with BitGo n November 13, a day after someone completed unauthorised transfers draining $372 million worth of assets from the company’s accounts. 

FTX and its various affiliates currently seek the consent of the judge overseeing its bankruptcy before moving assets. This latest cryptocurrency news means that FTX wants to ensure the safety of its assets. 

The crypto exchange told the court during yesterday’s hearing that it was concerned about theft and cyber threats. Hence, the reason it wants to move its assets to BitGo. 

Per the terms of the deal, FTX will pay a $5 million upfront fee to BitGo. The crypto custody firm will also charge FTX a monthly fee equal to the average U.S. dollar value of the digital assets it stores, multiplied by 1.5 basis points.

FTX lawyers revealed in the filing that it would cost the company around $100,000 per month, based on the initial transfer of $740 million worth of assets to BitGo. The crypto exchange added that it would continue to investigate and attempt to recover lost or stolen assets as the bankruptcy proceedings continue. 

The FTX lawyers added that recovering funds stolen from the exchange could increase the number of assets in custody. In a message to The Block, co-founder and CEO of Bitgo Mike Belshe said;

“It’s time to get serious about ending the human-created disasters in crypto. When you break down FTX subsidiaries, the ones that used BitGo products are solvent and safe. The ones that didn’t, aren’t.”

Any objection to the custodial services agreement is due by December 7th. The next FTX bankruptcy heading in the United States Bankruptcy Court for the District of Delaware will take place on December 16th.

In an interview with Coinjournal earlier this year, Ben Chan, CTO of BitGo, revealed that the company is focusing on custody this year as they seek to improve and strengthen its position in custodial services.

However, BitGo is also planning to offer other financial services soon, with Chan revealing that the company is interested in decentralised exchange. 

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Crypto lending platform Genesis is currently struggling and could be in need of investors to enable it to maintain its operations.

Cryptocurrency exchange Binance will not invest in Genesis, according to a recent report by the Wall Street Journal.

The report revealed that the cryptocurrency lending platform sought investment from Binance, the world’s leading cryptocurrency exchange. However, Binance turned down the opportunity to invest in the company owned by the Digital Currency Group.

The WSJ report added that Binance turned down the opportunity over a potential conflict of interest with Genesis’ business model. Furthermore, Genesis also sought investment from Apollo Global Management. However, it remains unclear if Genesis will receive the funds it needed from the asset management firm.

This latest cryptocurrency news comes roughly a week after Genesis suspended redemptions and new loan origination on its platform. 

Today Genesis Global Capital, @GenesisTrading’s lending business, made the difficult decision to temporarily suspend redemptions and new loan originations.

— Digital Currency Group (@DCGco) November 16, 2022

At the time, Genesis said;

“This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion. The impact lies with the lending business at Genesis and does not affect Genesis’s trading or custody businesses. Importantly, this temporary action has no impact on the business operations of DCG and our other wholly owned subsidiaries.”

Genesis assured its users that it would continue to offer over-the-counter trading for spot and derivatives trading in addition to its custody services. 

Despite Binance turning down a chance to invest in Genesis, a company spokesperson told The Block that Genesis doesn’t plan to file for bankruptcy soon. The spokesperson said;

“We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”

Genesis’s announcement to suspend redemptions affected Gemini, another leading crypto exchange. At the time, Gemini said its Earn program would not be able to meet customer redemptions within the service-level agreement of five business days.

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