Release note v0.1.0-beta.1

Two legacy types enabled on Ethereum

• Multisig legacy built on the popular Safe wallet

• Transfer legacy via connected Web3 wallets

Three timelock types enabled on Ethereum

• Regular, Soft, and Beneficiary timelocks

Premium features (optional)

• Email notifications for you and trusted contacts (premium)

• Watcher (“pair of eyes”) with limited or full visibility on legacy contracts (premium)

Security & content

• First formal audit performed by CD Security — issues acknowledged and fixed

• Full report available on 10102’s GitHub

• YouTube channel activated

10102 is Computing…

Enable a future transfer of your ETH to a trusted contact

Your family member or friend doesn’t have to be an advanced user — you can print a QR code that acts as a wallet for when the time comes. Simply choose how long you need to stay inactive for the transfer to occur.

Optional notifications can be turned on for your grandmother to receive the memo and related instructions.

Reminders of inactivity can be sent so that you (the owner) can reset the timeframe at any time.

Try it with a small amount while in beta, or use our built-in test mode on Sepolia, with durations measured in minutes for the playground.

Add future signers to your Safe wallet (multisig)

Your devices - or your co-signers’ devices - might get lost or hacked over time, compromising the ability to move funds from a multisig wallet such as Safe. You can elect co-signers in the future now, so that if anything happens as mentioned above, funds aren’t lost.

Not only can you elect more co-signers at one point in time, but you can design your legacy further with two additional points in time, making sure your funds are truly never lost.

This design can be useful both for your own future recovery and for your designated beneficiaries. We provide the tools with flexibility - you design your own future-proof legacy.

Create a savings account for your kid

Giving crypto that will likely grow faster than inflation to your kid is a great idea, but depending on age and maturity, this can be tricky, or even risky.

Similar to opening a savings account that isn’t accessible yet, our beneficiary timelock feature can help achieve the same result.

Simply schedule the transfer of ETH in a number of months you choose to a designated account you select, or create on the fly. Give the printed wallet to your lucky future winner.

Protect your ETH from being spent for the next 2 years

One way to act on conviction is to timelock your own funds and realize two major benefits at once:

• Your timing targets are programmed and temptations eliminated, providing peace of mind

• You cannot be forced or coerced into moving these funds, providing additional peace of mind

More tutorials

How to edit a legacy contract
How to use the Still Alive feature
How to claim the inherited funds

Sneak peek: 2026 roadmap

Now that the beta is live and the first audit fixes are in, we’re finalizing the next milestones. The theme is simple: your legacy shouldn’t just store assets, it should keep working.

• Staking ETH in legacy structures

• AI-assisted legacy creation and monitoring

• High-value NFT inheritance workflows

• New 10102 “Computing” product lines (details soon)

Postscript

• Check out our general newsletter, Crypto Insights

• Subscribe to our first dedicated Youtube channel, Computing

• Read our Disclaimer here - this newsletter does not provide investment advice

Subscribe now

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Ethereum, Bitcoin units & future shifts

While Bitcoin indeed dominated much of 2025 until recently, we’ve finally seen a much-deserved resurgence of Ethereum. The network once again upgraded flawlessly, further amplifying its ultimate aim: positioning ETH as digital oil. Additionally, low-risk defi continues to refine itself as one of the L1’s most valuable properties, both functionally and economically.

I mentioned before that as Bitcoin approaches $1M, a shift toward denominating in Satoshis (Sats) rather than BTC may occur. I was referring to future cycles, as noted, “discussions around this transition will likely intensify starting in 2028” [or later].

Before that potential shift, however, more critical developments will unfold. Resistance to the Quantum threat is high on that list, and as a community, we must come together to discuss the proposed solutions (I, II, …).

Actionable step: if your BTC address type is deemed high-risk (P2PK), consider moving your funds. You can check your exposure via Quantumrekt or Project11.

Chain-Agnostic tokens & Stablecoins

The strategy around chain-agnostic tokens remains sound and relevant for the foreseeable future, with Chainlink and stablecoins leading the charge. With few exceptions, most of DeFi has stagnated while still evolving beneath the surface. NFTs weren’t as fortunate, aside from CryptoPunks, which found a permanent home with NODE.

We’ll skip this year’s “Strategy-like accumulation” trend, which spread everywhere but is now fading as quickly as it emerged. The real long-term winner remains stablecoins’ global adoption and their supporting infrastructure, which has always been a core focus of our insights.

Privacy coins & market reevaluation

There’s still room for growth in privacy coins, given the rise of mass surveillance. On that note, I agree with Frank Braun’s excellent thesis on Zcash. In fact, I hinted at this in our January 2025 newsletter:

“As an investor: beyond chain-agnostic tokens, look for strong technology projects with sustainable, long-term development. Zcash, for instance, remains under-appreciated but could see a resurgence.”

To be clear, I didn’t foresee Zcash (ZEC) delivering a 500% return this year, that quickly. Still, it’s encouraging to see the market reevaluating under-appreciated technologies, particularly those centered on privacy. Other notable coins in this category, though operating at a second-order level (Ethereum Layer 2), include Railgun (RAIL), Starknet (STRK), and ZKsync (ZK).

Eyes on 2026

Finally, and this is the main reason for this follow up as we enter the last months of 2025: keep in mind the thoughts about 2026, its potential challenges and opportunities. Every cycle needs a breathing period.

Announcing 10102 Labs, Beta going live, and more

• We’re introducing 10102 Labs, a new section of our Insights dedicated exclusively to 10102 development updates, including new content and application features. This separation will help keep market insights and development updates distinct, allowing readers to subscribe to either or both.

• As a reminder, our decentralized application is designed to preserve digital assets forever, enabling users to build a true digital legacy through conditional contracts for beneficiaries, customizable timelocks, locked gifts, and more.

• The beta version of the application will go live this week. As promised, all those who subscribed to the join-beta form have been flagged as pioneers, whom special perks are to be finalized and communicated in the near future.

• We’ve partnered with CD Security for auditing the smart contracts: all identified concerns have been resolved, and the final audit report has been published.

Closing notes

It’s heartening to see justice served — with Ross Ulbricht granted a full and unconditional pardon by President Donald Trump, and CZ also seeing resolution.

Sadly, Dan Hughes (Fuserleer on Bitcointalk), the OG Bitcoiner and founder of Radix, left us. RIP.

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Bitcoin remains the leading digital store of value, with growing adoption from institutional investors and increasing interest from nation-state treasuries. Bitcoin is on a path to become the world reserve asset, and only a few black swan events could disrupt its trajectory: breakthroughs in quantum computing, nuclear conflict, major financial fraud, or catastrophic technical failure.

Bitcoin sits in a league of its own, with no serious competition in sight. That said, there will always be speculation in potential candidates should Bitcoin fails. From a store-of-value perspective, Ethereum is the clear runner-up.

As Bitcoin’s price moves past $1 million, we may see greater adoption of Satoshis (the smallest unit of Bitcoin). Discussions around this transition will likely intensify starting in 2028. Meanwhile, “Stay Humble and Stack Sats”.

Ethereum Vs. Solana

The competition between Ethereum and Solana will not only continue but will likely become more productive and symbiotic. With Solana increasingly recognized as the second most valuable smart contract platform after Ethereum, the focus is shifting toward highlighting their respective strengths rather than engaging in the zero-sum competition of past years. Healthy rivalry breeds better outcomes - a win for the broader ecosystem.

Ethereum’s strategy is to scale through Layer 2 networks, preserving Layer 1 as the most secure and decentralized (but expensive) base layer. While this approach reduces Layer 1’s vulnerability, it introduces fragmentation risks across the ecosystem. For now, Ethereum remains the dominant DeFi leader based on Total Value Locked (TVL) and other metrics.

Solana, by contrast, aims to keep everything on Layer 1 - fast, cheap, and scalable, but at the cost of some decentralization. Despite early challenges, Solana proved resilient during the wave of new users and transactions in 2024. Whether it can sustain this scalability under continued growth remains to be seen. Solana also leads in DePIN (Decentralized Physical Infrastructure) use cases and memecoin markets, both of which benefit from its low-cost, high-frequency transactions.

In summary, Solana’s innovations pushed Ethereum to become faster and more affordable. If Ethereum addresses its Layer 2 fragmentation issues, Solana may need to find new inspiration to maintain its edge. Alternatively, Ethereum may solve its last technical challenges but fail to further capture economic value for ETH - a scenario resembling Cosmos, where the hub (ATOM) is less valuable than some of its connected chains (e.g CRO). Either way, this ongoing competition will likely result in better outcomes for the ecosystem.

Another ecosystem joining the elites

Expect another emerging blockchain ecosystem to rise and establish itself among the leading platforms. The next two years will likely solidify this new player’s position.

Our platform highlights several promising ecosystems, including Sui, Injective, Celestia, Sei, TON, Qubic, and others. However, it's equally possible that a lesser-known technology or stealth project could suddenly capture the spotlight and transform the industry overnight.

This is what makes crypto exploration exciting - with dedication and curiosity, anyone can uncover the next breakthrough before even the most established research or investment institutions.

Our goal is to provide insights and guidance to help you along this journey. We strive to facilitate the creation of a lasting digital legacy for everyone. But in the end, the final discovery is yours to make - and that moment of realization should belong to you alone.

The strategy of chain-agnostic tokens

As blockchains become more interoperable and user experience continues to improve, investment strategies may evolve accordingly. Beyond holding store-of-value assets like Bitcoin, it may be wise to hedge by investing in popular chain-agnostic tokens - applications or protocols that can operate seamlessly across multiple blockchains. This approach helps mitigate ecosystem-specific risks, offering broader exposure to the growing crypto landscape.

Infrastructure protocols are particularly well-positioned in this regard. For instance, The Graph (GRT), a decentralized indexing protocol, is primarily based on Ethereum and Arbitrum but also supports various other blockchains, including Arweave, NEAR, Solana, and most Layer 2 networks. Similarly, Chainlink, with its Cross-Chain Interoperability Protocol, has become essential for connecting data across ecosystems. Other examples include ENS, Uniswap, SAFE, and many more, which could gain increasing relevance as Layer 2 solutions mature and app-specific chains proliferate.

Beware of 2026

Crypto markets tend to follow four-year cycles: one okay year, one great year, another okay year, and then a bad year.

While many expect 2025 to be the best year of the current cycle, I argue that 2024 was already an excellent year. 2025 will likely be another positive year, but at some point, the music will stop. This cooldown period could begin as early as Q2 or stretch to year-end. Either way, 2026 will likely be a challenging year for prices.

This is not a cause for concern. Rather, it’s an opportunity to prepare for the long term. Understanding the cycles and acting accordingly is key to sustainability in this space.

Opportunities in 2026

While 2026 may not be a strong year for prices, it could present significant opportunities. Historically, the best investments are made during downturns, when attention is low. These quieter periods are also when groundbreaking technologies tend to emerge.

Looking ahead, here are some angles to consider:

• As a builder: Bitcoin-based platforms and protocols will continue to attract a risk-averse yet high-potential user base. (Stay tuned for the upcoming Bitcoin-focused post around block 900k.)

• As an explorer: Crypto-AI intersections will likely leave a long tail of rewards and incentives. Exploring new technologies can be rewarding both intellectually and financially.

• As an investor: beyond chain-agnostic tokens, look for strong technology projects with sustainable, long-term development. Zcash, for instance, remains underappreciated but could see a resurgence. Many other overlooked coins could also gain attention in the next cycle.

AI Agents and Crypto

AI agents are a hot topic in the crypto space, and for good reason. These autonomous entities could in time fundamentally reshape financial markets as AI-driven transactions gain traction.

It’s important to note that, at present, many AI agent-related tokens behave similarly to memecoins: highly volatile, driven by hype cycles, and prone to rapid turnover. New tokens emerge daily, often replacing those that are quickly forgotten. While the long-term potential of AI agents is real, it’s crucial to avoid getting caught in short-term speculative schemes. These tokens thrive on attention - and just as they rise with it, they can fade without it.

Unlike traditional stock market bots, AI agents operate at a more sophisticated, second-order level:

• They execute transactions autonomously based on learned behavior, rather than relying on direct human input.

• They manage their own wallets and holdings, using native tokens as a starting point and leveraging crypto's inherent digital infrastructure, rather than trading on behalf of a human account.

• While initially programmed by humans, AI agents continuously evolve their strategies in response to real-time market feedback.

Over time, these agents could develop entire financial ecosystems with their own markets, rules, and dynamics. They may even become activists within these ecosystems, influencing outcomes based on their internal logic and interests.

This leads to a fascinating question: are we witnessing the emergence of a new asset class, or perhaps even a new demographic class - one in which powerful AI agents advocate for their own existence?

There are many possible paths from here, but one thing is clear: what matters most is how we, as humans, choose to engage with this emerging reality. Will we seek collaboration, establish guardrails, or resist the rise of autonomous financial actors? The future of this relationship remains unwritten.

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Eagle view

Bitcoin is yet to breach the $100k mark, there hasn't been a significant altcoin bull market yet, and Ethereum still remains well below its previous all-time high of around $4,800 from 2021. Some memecoins have shown promising gains, but for really brief periods. However, this situation isn't indicative of desperation; rather, it's typical of a quiet third quarter preceding a more exciting fourth quarter. The upcoming US elections, escalating conflicts in the Middle East, and the growing adoption of Bitcoin all hint at an electrifying Q4 2024.

In short, is this the calm before the storm? We'll soon find out, but I remain optimistic.

Special note

Thoughts and prayers for peace
As we remember October 7 🇮🇱
BDH

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Introduction to Network States

Bitcoin has introduced in 2009 a groundbreaking, incentivized, and open infrastructure that transcends geographical borders. This infrastructure has initially been applied to mediums of exchange and stores of value, which are now gaining recognition worldwide.

This disruptive technology opens up a multitude of untapped possibilities, including the potential for new social alignments that challenge traditional physical borders and distinctions. As Balaji articulates in his book The Network State:

A network state is a highly aligned online community with a capacity for collective action that crowdfunds territory around the world and eventually gains diplomatic recognition from pre-existing states.

A decentralized autonomous organization state

While a DAO (Decentralized Autonomous Organization) is designed for an online community with a shared culture to form a borderless organization and operate primarily online, a Network State expands further by integrating with the physical world and connecting individuals via a new type of citizenship. A network state can comprise one or multiple DAOs, and strive for diplomatic recognition while forging a new path in global governance.

A blockchain-powered foundational system

The significance of blockchain in network states lies in its ability to facilitate trustless, transparent, and secure transactions, enabling the establishment of a new form of governance that transcends traditional nation-state boundaries. Blockchain technology can serve as the backbone for a decentralized, democratic, and merit-based system, empowering individuals to participate in decision-making processes and cultivating a sense of shared ownership and responsibility.

A new path to global governance

Blockchain technology has the potential to revolutionize the way we think about global governance and citizenship. As network states emerge, they offer a unique opportunity for individuals to come together, forming a new paradigm that transcends geographical and political barriers, and redefines the very fabric of our interconnected world.

The network states landscape in 2024

As network states progress through various phases, many are currently in their early stages, while others have successfully bridged the gap between the digital and physical worlds. Arguably, Bitcoin is the first and only network state to have achieved political recognition to date. It is also emerging as one of the three main poles of the world, as described by Balaji in his post NYT vs CCP vs BTC (he also describes what could be a fourth pole, the Recentralized Center).

Numerous experiments in network states are underway, with various initiatives showcased on this dashboard. For example, Vitalia is a life-extension focused digital community and new city located in Roatan, Honduras. Visitors can currently explore the area and witness the development from the ground up.

The first network state conference took place in 2023, featuring the most promising projects. The full conference recording is available on YouTube and provides valuable insights for those interested in this space. The 2024 network state conference is scheduled for September 22 in Singapore. As the landscape continues to evolve, it will be fascinating to witness the growth and development of network states in the years to come.

The potential benefits

The concept of transforming from ideologically misaligned and physically centralized societies to ideologically aligned and physically decentralized ones is a fascinating and promising idea. In an era of continuous global connectivity, selecting individuals based on shared ideologies seems like a natural progression.

A better relationship with the world

As people travel more for work and leisure, multiple passports become increasingly common due to intercultural marriages, and the nomadic lifestyle of technologists and others who can work remotely is on the rise, the world is becoming a more interconnected and diverse place. This trend is a good thing, as it allows us to deepen our connection with nature and experience a variety of cultures, ultimately enriching our lives.

A thriving environment

By surrounding ourselves with like-minded individuals and avoiding those with opposing ideologies, we can develop a supportive and inspiring environment that encourages personal growth and happiness. Breaking free from routine and experiencing new places and cultures can be a liberating and invigorating experience, providing a sense of excitement and adventure that can be lacking in a stagnant routine.

An authentic school of life

Learning is another area where network states can excel. As we connect with people from diverse backgrounds and experiences, we are exposed to new ideas, perspectives, and ways of thinking. This natural exchange of knowledge and ideas can lead to a more enlightened and innovative society, where people are encouraged to think critically and challenge conventional wisdom.

An upgraded resilience

Resilience appears to be a clear advantage in this context, as network states are challenging to break as they expand their headquarters worldwide. The more geographically decentralized they become, the more difficult it is to reach them. Moreover, their primary infrastructure being a network made up of numerous virtual nodes, any damage at a specific location would remain minimal. This implies that the role of "soldiers" has shifted to node operators, and the security of citizens now depends on their vigilance.

This resilience is exemplified by Bitcoin, as it showcases the potential of network states to withstand physical threats and maintain operational continuity in the face of adversity.

The challenges

As with any groundbreaking concept, network states present a range of challenges that must be addressed in order to overcome the unknown and achieve success.

High barriers of knowledge

Understanding the movement that inspired Bitcoin and the subsequent networks is a crucial first step in comprehending the potential of decentralized networks. This is precisely what 10102 aims to achieve, providing a foundation for further exploration and growth.

Expensive physical integration

One immediate challenge facing network states is the financial aspect. As these communities seek to establish a physical presence, securing land and resources becomes an essential requirement. In many cases, accessible areas with available land are scarce, and the acquisition costs can be prohibitive. This limitation may restrict the growth of smaller networks, making it difficult for them to establish a foothold.

However, this challenge also presents an opportunity for innovation. The intersection of blockchain technology and land acquisition is an exciting area of research, with potential solutions emerging in the form of blockchain-based ownership records and futarchy decision-making processes. These novel approaches could enable networks to acquire land more efficiently and at a lower cost, ultimately democratizing the process and paving the way for a more inclusive and diverse range of network states.

Segregated pre-existing infrastructure

It's a valid concern that existing public infrastructure will remain firmly under the control of various nations, as these resources are the backbone of daily life. People are hesitant to let go of these crucial assets for the promise of decentralized citizenship, which currently offers minimal infrastructure. This discrepancy could pose a significant challenge for network states, as they will need to develop robust alternatives to attract citizens. The reliance on nation-controlled infrastructure could hinder the growth and development of network states, forcing them to think creatively about how to provide essential services while maintaining their decentralized nature.

Imagine

Dreamers of the past lacked the technology to create large-scale, remote, and decentralized networks, but today's blockchain infrastructure makes this vision possible. John Lennon's "Imagine" suddenly fits the 21st century, as we now have the tools to create a world without borders.

Imagine there's no countries
It isn't hard to do
Nothing to kill or die for
And no religion, too
Imagine all the people
Living life in peace... You...

50 years after its writing, the vision for a world of peace with no nations is less of an impossible dream and more of a likely scenario. One underrated aspect of a large network like Bitcoin is its inherent "soft war" nature. Since its inception 15 years ago, conflicts within Bitcoin have been resolved via software versioning, without any physical violence.

Bitcoin is the first resource distribution system in history that doesn’t require a base-layer threat of violence to enforce itself. Bitcoin represents the ability to “war” without bloodshed, to govern without governments, and to hold agreements without physical discipline. May we live in a world where electricity replaces gun powder as the primary projection of power. May we embrace bitcoin’s softness as much as its hardness.

Let us now imagine a world where spirituality and innovation intertwine, where the timeless wisdom of the ages dances with the boundless potential of the modern age. In this symbiotic relationship, religions can thrive as decentralized networks, seamlessly weaving together the diverse threads of belief and tradition that bind us all.

As we gaze into the future, our dreams take shape, evolving and adapting to the shifting winds of progress. In 50 years, the aspirations of today will have blossomed into a spectacular array of possibilities. Will your dreams be among them?

The answer lies within your reach, waiting to be nurtured and cultivated. Embrace the power of your imagination, for it holds the key to unlocking the potential that lies within us all. As we embark on this journey of discovery, let us hold onto the belief that our dreams, no matter how grand or humble, have the power to shape the world that awaits us 50 years from now.

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Bitcoin a introduit en 2009 une infrastructure avec système de motivation à participation, transparente et qui transcende les frontières géographiques. Cette infrastructure a d'abord été appliquée aux moyens d'échange et aux valeurs de conservation, qui acquièrent désormais une reconnaissance mondiale.

Cette technologie novatrice ouvre de nombreuses possibilités inexplorées, y compris le potentiel de nouvelles alliances sociales qui défient les frontières physiques et les distinctions traditionnelles. Comme l'articule Balaji dans son livre The Network State, traduit ci-dessous:

Un état réseau est une communauté en ligne hautement alignée, avec la capacité à agir collectivement, qui financera collectivement du territoire partout dans le monde et obtient finalement la reconnaissance diplomatique auprès des états existants.

Un Etat autonome décentralisé

Alors qu’ une DAO (Organisation autonome décentralisée) est conçue pour former une organisation sans frontières autours d'une culture partagée, limitée principalement aux opérations en ligne, un Etat Réseau s'étend davantage en s’intégrant au monde physique et en connectant les individus via une citoyenneté digitale a part et entière. Un état réseau peut être composé d'une ou plusieurs DAOs, et cherche à obtenir une reconnaissance diplomatique en utilisant un modèle de gouvernance conçu pour une ère sans frontière.

Un système de base fondé sur la blockchain

L'importance de la blockchain dans les États Réseaux réside dans sa capacité à faciliter les transactions sans confiance, transparentes et sécurisées, permettant la création d'une nouvelle forme de gouvernement qui transcende les frontières des États traditionnels. La technologie blockchain peut servir de base à un système décentralisé, démocratique et fondé sur la méritocratie, permettant aux individus de participer aux processus de prise de décision et cultivant un sentiment d'appartenance partagée et de responsabilité.

Vers une gouvernance globale

La technologie blockchain a le potentiel de révolutionner la manière dont nous pensons à la gouvernance et la citoyenneté mondiales. Les États Réseaux offrent une opportunité unique pour les individus idéologiquement alignés de se rassembler, communiquer et décider, formant un nouveau paradigme qui transcende les barrières géographiques et politiques, et redéfinit le tissu même de notre monde interconnecté.

L'horizon des États Réseaux en 2024

Comme les États Réseaux évoluent à travers diverses phases, beaucoup sont actuellement dans leurs premières étapes, tandis que d'autres ont réussi à combler l'écart entre le numérique et le monde physique. Bitcoin est probablement la première et seule entité État Réseau à avoir obtenu une reconnaissance politique. Il est également en train d'émerger comme l'un des trois pôles principaux du monde, comme décrit par Balaji dans son article NYT vs CCP vs BTC (il décrit également ce qui pourrait être un quatrième pôle, le Centre Recentralisé).

De nombreux expériences dans les États Réseaux sont en cours, avec diverses initiatives présentées sur ce tableau de bord. Par exemple, Vitalia est une communauté digitale axée sur l'extension de vie et une nouvelle ville située à Roatan, au Honduras. Les visiteurs peuvent actuellement explorer la région et assister au développement depuis le tout début.

La première conférence des États Réseaux a eu lieu en 2023, mettant en avant les projets les plus prometteurs. La bande-annonce complète de la conférence est disponible sur YouTube et offre des insights précieux pour ceux qui s'intéressent à ce domaine. La conférence sur les États Réseaux 2024 est prévue pour le 22 septembre à Singapour. Alors que le paysage continue d'évoluer, il sera fascinant de voir la croissance et le développement des États Réseaux dans les années à venir.

La perspective optimiste

La vision de transformer des sociétés idéologiquement désalignées et concentrées physiquement en sociétés idéologiquement alignées et décentralisées physiquement est une idée fascinante et prometteuse. Dans une ère de connectivité mondiale continue, sélectionner les individus sur la base d'idéologies partagées semble être une évolution naturelle.

Un monde unifié par des idéologies partagées

Aujourd’hui nous nous déplaçons davantage pour les travaux et plaisirs, les passeports multiples deviennent de plus en plus courants en raison des mariages interculturels, et le style de vie nomade des technologistes et d'autres qui peuvent travailler à distance est en hausse: le monde devient de plus en plus interconnecté et diversifié. Cette tendance est une bonne chose car elle nous permet de renforcer notre connexion avec la nature et d'expérimenter différentes cultures, enrichissant ainsi nos vies.

Un environnement propice

En nous entourant de personnes qui partagent les mêmes idéologies et en évitant celles qui ont des idéologies opposées, nous pouvons développer un environnement familier et inspirant qui favorise la croissance personnelle et le bonheur. En brisant la routine et en expérimentant de nouveaux lieux et cultures, nous pouvons avoir une expérience libératrice et revitalisante, offrant un sentiment d'excitation et d'aventure qui peut manquer dans une routine stagnante.

Une école de la vie authentique

L'apprentissage est un autre domaine où les États Réseaux peuvent exceller. En nous connectant avec des personnes de divers milieux et expériences, nous nous exposons à de nouvelles idées, perspectives et façons de penser. Ce partage naturel de connaissances et d'idées peut conduire à une société plus éclairée et innovante, où les gens sont encouragés à penser de façon critique et défier les sages fables.

Une résilience améliorée

La résilience semble être un avantage clair dans ce contexte, car les États Réseaux sont difficiles à rompre alors qu'ils élargissent leurs bases partout dans le monde. Plus ils deviennent géographiquement décentralisés, plus il est difficile de les atteindre. De plus, leur infrastructure principale étant un réseau composé de nombreux nœuds virtuels, tout dommage à un emplacement spécifique restera minimal. Cela implique que le rôle des "soldats" devient celui des opérateurs de nœuds, et la sécurité des citoyens du Réseau dépend maintenant de leur vigilance.

Cette résilience est bien illustrée par Bitcoin, qui démontre le potentiel des États Réseaux de résister aux menaces de toutes sortes et de maintenir une continuité opérationnelle face à l'adversité.

Les défis

Comme pour tout concept novateur, les États réseaux présentent une série de défis qui doivent être abordés pour surmonter l'inconnu et réussir.

Les barrières élevées de la connaissance

La compréhension du mouvement qui a inspiré Bitcoin et les réseaux subséquents est un premier pas crucial pour saisir le potentiel des réseaux décentralisés. C'est d’ailleurs précisément ce que 10102 vise à accomplir, fournissant des bases pour une exploration en profondeur, etape par etape.

Une intégration physique coûteuse

L'un des défis immédiats auxquels font face les états de réseau est l'aspect financier. Ces communautés cherchent à établir une présence physique, ce qui implique de sécuriser des terres et des ressources essentielles. Dans de nombreux cas, les zones accessibles avec des terres disponibles sont rares, et les coûts d'acquisition peuvent être prohibitifs. Cette limitation peut restreindre la croissance des réseaux plus petits, ce qui peut rendre difficile leur établissement.

Cependant, ce défi présente également une opportunité pour innover. La convergence de la technologie blockchain et de l'acquisition de terres est un domaine de recherche passionnant, avec des solutions émergentes en termes d'enregistrement de propriété blockchain et de processus de prise de décision futarchique. Ces approches innovantes pourraient permettre aux réseaux d'acquérir des terres de manière plus efficace et à un coût inférieur, ouvrant ainsi la voie à une démocratisation du processus et à une offre plus large pour les Etats Réseaux.

Une infrastructure pre-existante

Il y a un argument à faire valoir concernant le fait que les infrastructures publiques existantes resteront toujours la propriété de leurs respectives nations, car ces ressources sont essentielles à la vie quotidienne et les gens ne sont pas disposés à les abandonner pour une citoyenneté décentralisée illusoire avec peu d'infrastructure à offrir.

L'écart entre l'infrastructure existante et celle des États réseaux pourrait poser un défi majeur pour les États Réseaux, car ils devront développer des alternatives solides pour attirer les citoyens. La dépendance à l'égard des infrastructures nationales pourrait entraver la croissance et le développement des États Réseaux, obligeant à penser de manière créative sur la manière de fournir des services essentiels tout en maintenant leur nature décentralisée.

Imagine

Les rêveurs du passé n'avaient pas la technologie pour créer des réseaux à grande échelle, décentralisés et à distance, mais l'infrastructure blockchain d'aujourd'hui rend ce rêve possible. Imagine, de John Lennon, s'adapte à notre siècle, car nous avons maintenant les outils pour créer un monde sans frontières.

Imagine there's no countries
It isn't hard to do
Nothing to kill or die for
And no religion, too
Imagine all the people
Living life in peace... You...

Cinquante ans après son écriture, la vision d'un monde de paix sans nations est un rêve bien plus probable. Un aspect sous-estimé d'un réseau large comme Bitcoin est sa nature de "soft war" (guerre douce). En effet depuis son lancement il y a 15 ans, les conflits au sein de Bitcoin ont été résolus via des versions de logiciels uniquement, sans aucune violence physique.

Bitcoin est le premier système de distribution de ressources de l'histoire qui ne nécessite pas une menace de violence pour se maintenir. Bitcoin représente la capacité de "guerre" sans sang, de gouverner sans gouvernements, et de tenir des accords sans discipline physique. Vivons dans un monde où l'électricité remplace le poudre à canon comme la projection de pouvoir principale. Adorons autant la douceur que la dureté de Bitcoin.

Imaginons maintenant un monde où la spiritualité et l'innovation s'entremêlent, où la sagesse immortelle des temps anciens danse avec le potentiel illimité du modernisme. Dans cette relation symbiotique, les religions peuvent prospérer en tant que réseaux décentralisés, tissant ensemble les fils divers des croyances et traditions qui nous lient tous.

Alors que nous jetons un regard sur l'avenir, nos rêves prennent forme, évoluent et s'adaptent aux vents changeants du progrès. Dans 50 ans, les aspirations d'aujourd'hui s'épanouiront dans un éventail éblouissant de possibilités. Vos rêves seront-ils parmi eux?

La réponse se trouve entre vos mains, en attente d'être nourrie et cultivée. Saisissez le pouvoir de votre imagination, car elle détient la clé pour déverrouiller le potentiel qui se trouve en nous tous. Alors que nous nous lançons dans cette découverte, gardons-nous de croire que nos rêves, peu importe leur grandeur ou modestie, ont le pouvoir de façonner le monde qui nous attend dans les 50 prochaines années.

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Ethereum Brief

Ethereum has experienced a resurgence of activity in the first part of the second quarter, driven by the anticipated approval of ETFs and the continued expansion of Layer 2 technology. Vitalik describes these Layer 2 solutions as culture extensions of Ethereum itself.

One fundamental metric we track is the Ethereum mainnet's supply, resulting from factors such as the issuance of new blocks and the burning of fees by transactions. In the past 3 months more than 50k ETH entered in circulation, as opposed to being negative in the few quarters prior.

While the community expects the overall supply to diminish over time as usage increases, there is no cause for concern. Historically, this phenomenon has occurred before, as evidenced by the graph below showing the supply variation since the merge.

The deflationary trend of Ethereum remains intact, and this temporary setback highlights the lack of retail user participation in the ecosystem. In contrast, institutional adoption continues to grow. Additionally, many NFT traders have either departed or migrated to the Bitcoin ecosystem via the ordinals, contributing to the recent decrease in usage and therefore the observed increase of supply.

Ultimately Ethereum (Layer 1) is evolving from a retail-focused platform to a broader infrastructure serving numerous layers, offering high security and flexibility at a high cost. Layer 2 technology then splits this high cost into more affordable transactions for retail users, with Base, Arbitrum, Optimism, and ZK layers being prime examples. As more Layer 2 solutions emerge, they will eventually fully occupy the Layer 1’s block space once dominated by retail users, closing the loop on the ongoing paradigm shift.

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DeFi Brief

The DeFi sector has experienced mixed signals and developments this last quarter. While the market has seen some fluctuations, with prices trading in the red for most assets, there are signs of growth and innovation in the ecosystem. This could mean the fundamentals are oversold, but there is currently no indication that the market has reached a bottom either.

For those who have maintained their conviction in the DeFi ecosystem, there is potential for significant rewards in the future. However, it's essential to recognize that this journey may require a considerable amount of patience.

Besides the prevailing trends already described in our previous quarterly #8, here are a few updates:

• Layerzero, a cross-chain interoperability protocol, released its native token, ZRO, to the market. This token enables users to participate in the protocol's governance and stake for rewards, further incentivizing the development of the network.

• zkSync, a zero-knowledge proof technology, distributed its native token, ZKS, to eligible users. This airdrop aimed to reward early adopters and contributors to the protocol, while also promoting its adoption and growth.

• Curve Finance, a major DeFi platform, recently announced that it has successfully recovered a significant portion of the funds stolen during a security breach earlier this year. This recovery effort highlights the resilience and cooperation within the DeFi community, as well as the ongoing improvements in security measures.

While the DeFi market may be experiencing some turbulence, there are exciting developments and trends to keep an eye on.

TON Mass Adoption

The Telegram Open Network (TON) is a blockchain project created by Telegram, the popular messaging app, to enable fast, secure, and scalable digital payments, file storage, and other services. One of the key goals of TON is to achieve mass adoption by making blockchain technology accessible to a broader audience. To achieve this, TON has been focusing on several strategies, including integrating with popular platforms and services, such as Telegram Gaming mini-apps which have been gaining significant traction in recent months.

This success can be attributed to the large Telegram user base, which provides a ready-made audience for these mini-apps. By leveraging this user base, TON is able to onboard the masses to web3, the decentralized web, and introduce them to the benefits of blockchain technology.

Data and Examples:

• TON's blockchain network has the potential to process up to 1,000 transactions per second, making it one of the fastest blockchain networks in the world.

• The Telegram messaging app has over 400 million active users, providing a vast potential audience for TON-based services.

• Notcoin, a popular Telegram Gaming mini-app, has attracted over 30 million users in just a few months, demonstrating the potential for TON to achieve mass adoption.

• TON has been developing a number of other services and applications, including the TON Messenger, which aims to provide a secure and private messaging experience, and the TON File System, which will enable decentralized file storage and sharing.

Overall, TON's mass adoption strategy is centered around leveraging Telegram's vast user base and creating user-friendly blockchain-based services and applications. By providing a seamless and accessible experience for users, TON aims to onboard millions of people to web3 and bring the benefits of blockchain technology to a wider audience.

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Bitcoin's journey has evolved significantly from its inception, now embracing complex features like BRC20 tokens and Ordinals as mentioned in 10102’s Block 800k update, catalyzing debates within its community over network strain and innovation balance. Indeed, ordinals, leveraging the Taproot upgrade, mark Bitcoin's foray into NFTs, making satoshis unique digital assets with substantial opportunities for innovation and creativity.

BRC20 tokens, inspired by Ethereum's ERC20, aim to expand Bitcoin's utility to include tokenized assets and DeFi, transforming Bitcoin from merely a currency to a platform for decentralized applications.

With this evolution, concerns over network congestion and fees have surfaced. In response, Casey Rodarmor introduced Runes, proposing a more efficient alternative to BRC20 tokens by optimizing blockchain space and Unspent Transaction Outputs (UTXO) management, potentially reshaping Bitcoin's DeFi landscape.

Runes emphasizes streamlined token creation, improved usability, and scalability, offering a lucrative opportunity for early adopters ahead of Bitcoin's halving event.

Below is everything you need to get started and explore further as needed.

Official documentation | Specification

Timely insights

• Runes are to be released at block 840,000. You can easily check the status of the Bitcoin blockchain on mempool.space.

• Xverse is a good wallet to get started with ordinals and runes.

• Connect to MagicEden and explore ordinals collections. Runes will have their own category there very soon.

• Running a node is likely the most reliable way to deploy, mint, and transfer runes around early on. There are many guides out there but essentially, it requires fully synchronizing a bitcoin client first, and then indexing satoshis via the official ord client.

• There is currently significant attention to the anticipated release of runes within the ordinals sphere. The best return on investments are made when attention on an innovative technology is low. Thus in the case of runes and at this time, it is okay to wait and let the hype settle down. Following closely however, and accumulating accordingly can potentially be rewarding.

• There is no official rune out yet. What is tradable today on the marketplaces are placeholders (inscriptions) only used to distribute runes in the future while being held (similar to points). Some call them rune miners, but there is still a lot of uncertainty around these (likely limited functional lifespan, volatile allocations, and relative tickers not guaranteed).

Read more from the community

Casey’s insights (developer of ordinals & runes)
Terminology explained (by BobBodily)
Runes projects (by NFTBrad)

Disclaimers apply. Thank you for reading! Please share below.
10102’s X | M1K4’X

Transitioning away from 10102 Etherbase Vault

As we prepare to conclude our on-chain experiment with the 10102 Etherbase Vault LP., it prompts a reflection: were the doors ever fully open? And why conclude this venture amidst a bull market? Read our key insights.

Expanding Our Mission

10102 continues to lead in the exploration of new technologies with a significant potential impact. Challenges do not deter us; instead, they offer valuable learning opportunities and fuel our growth. With our latest project concluded, we seize this moment to both refine and broaden our mission. Our commitment remains strong in the following areas:

• Simplifying advanced DeFi strategies for the general public, safely opening up the gate to a new financial system that is more open, global and transparent.

• Bridging the gap between popular yet divided ecosystems, with up-to-date thoughtful research and analysis, packaged in digestible content.

• Upgrade our sovereignty and everyday operations leveraging on-chain capabilities, by building the necessary on-chain tools to address existing market gaps, and backing genuine innovations with significant impacts on tomorrow (ventures).

Looking ahead, we are excited about developing Web3 tools and content that are crucial yet missing from the current landscape, with focus on the above themes. Our dedication to on-chain managed vaults remains unwavering. We plan to innovate within our own company’s vault to explore new boundaries and address previously identified challenges. In addition, we will embrace AI technologies to nurture our initiatives, uncovering new possibilities for next-generation advancements. Our journey is far from over. As we embark on this next phase, our mission grows ever more inclusive and ambitious, reflecting our commitment to making a lasting impact in the tech world.

DeFi Expansion

Namespace Infrastructure: ENS has been a recurring topic in our discussions for a good reason. It remains a foundational component of the DeFi’s identity layer, much like what DNS did to the abstraction of IP addresses and the expansion of the internet. This importance was underscored recently with GoDaddy's collaboration with ENS, and Google's integration of wallet information for ENS name searches. Clusters, a new cross-chain name service that lets users register wallet names that work across Ethereum and non-Ethereum chains simultaneously, serve as a universal namespace, demonstrating the growing need for a DeFi infrastructure that accommodates all major ecosystems.

Classical DeFi: The Uniswap Foundation (UF) is proposing rewards for UNI token holders who have delegated and staked their tokens, leading the charge in promoting active governance. The Graph Network has expanded its multi-chain capabilities to include more than 40 of the most widely used blockchains, marking the inclusion of a non-EVM compatible chain like Near for the first time. This expansion signifies the broadening scope of DeFi's future. Meanwhile, Polygon's 19% staff reduction underscores the need for strategic adjustments within the Layer 2 technology space as competition is escalating, with notable players showing signs of solidifying their market positions. For example, Base, incubated by Coinbase, is a Layer 2 solution aimed at simplifying Ethereum development and scalability for dApps. Arbitrum is another notable Layer 2 that focuses on offering low fees and high throughput without compromising security.

Liquidity Restaking: In 2024, the crypto sphere is buzzing with the concept of restaking native ETH or a liquid staking token (LST), particularly through EigenLayer, attracting over $12 billion despite the uncertain risks and yields. Restaking allows the reuse of PoS stakes across multiple networks, allowing new protocols to borrow Ethereum's security instead of having to bootstrap their own, while offering higher potential yields (5-10%+) to investors compared to traditional Ethereum staking yield of ~3.5%. However, it introduces additional risks including enhanced slashing conditions, potential for collusion, single points of failure, smart contract vulnerabilities, and concerns of operator centralization. EigenLayer, leveraging Ethereum's economic trust, aims to bootstrap new decentralized networks through restaking, increasing the complexity and rewards for stakers willing to navigate these new, unknown risks.

Interoperability or Omnichain DeFi: The Cosmos ecosystem exemplifies the user experience in a multi-chain environment, simplifying governance across numerous Appchains. However, it's no longer the sole player in the interoperability space. Layerzero is bridging blockchains, enabling developers to create seamless omnichain applications, tokens, and experiences. For instance, Stargate facilitates liquidity transfers across various protocols, and Layerzeroscan introduces the concept of "explorers 2.0" by incorporating over 60 networks. The compatibility between ecosystems is increasingly evident, whether through EVM compatibility, zk rollups, or both, as seen with Astar zkEVM. The gradual integration of these technologies is leading to the formation of Omnichain DeFi. Finally, the Ethereum Layer 2 technology is booming, as scalability just passed a significant milestone with the introduction of blobs transactions, bringing Ethereum Layer 2 gas fees to virtually 0.

Emerging Mega-Trends

The Convergence of Crypto and AI and beyond: In recent years, advancements in AI, such as large language models (LLMs), and crypto technologies, including blockchain scalability solutions and cryptographic protocols like zero-knowledge proofs (ZKPs) and secure multi-party computation (MPC), have paved the way for promising applications that merge AI with blockchain ecosystems or cryptography. Projects like BitTensor, Near, Qubic, and Tau exemplify the integration of blockchains in constructing AIs for diverse applications, using cryptographic incentives to encourage training and prevent data misuse. An emerging trend is the escalating demand for computational resources necessary for AI development, with platforms like Render and Akash incentivizing this crucial layer.

The Unwavering Influence of Memes: Memecoins have become an integral part of cryptocurrency bull runs, encapsulating the spirit of decentralized finance (DeFi) with humor and satire. Platforms with low transaction fees such as Solana, BNB Chain, and Base have emerged as prime venues for this unique blend of entertainment and investment, highlighting the cyclical nature of 'casino seasons' in the crypto space. While occasionally indulging in DEGEN behavior, this section will deliberately remain our most concise.

Bitcoin Ordinals and Runes: Bitcoin's journey has evolved significantly from its inception, now embracing complex features like BRC20 tokens and Ordinals as mentioned in 10102’s Block 800k update, catalyzing debates within its community over network strain and innovation balance. Indeed, ordinals, leveraging the Taproot upgrade, mark Bitcoin's foray into NFTs, making satoshis unique digital assets with substantial opportunities for innovation and creativity. BRC20 tokens, inspired by Ethereum's ERC20, aim to expand Bitcoin's utility to include tokenized assets and DeFi, transforming Bitcoin from merely a currency to a platform for decentralized applications. With this evolution, concerns over network congestion and fees have surfaced. In response, Casey Rodarmor introduced Runes, proposing a more efficient alternative to BRC20 tokens by optimizing blockchain space and Unspent Transaction Outputs (UTXO) management, potentially reshaping Bitcoin's DeFi landscape. Runes emphasizes streamlined token creation, improved usability, and scalability, offering a lucrative opportunity for early adopters ahead of Bitcoin's halving event.

Real World Assets: RWAs refer to the tokenization of tangible assets from the physical world, including commodities and treasury products, for use in blockchain technologies. Tokenized US Treasuries saw an unprecedented increase in market capitalization, soaring 641% in 2023, from $114.0 million to $845.0 million. This surge underscores a growing trend of integrating traditional financial assets with blockchain technology, offering investors new opportunities for investment diversification in the crypto space. Some innovative projects in this space include: Plume, Dusk, XDC, Propy, RAM, Parcl.

Decentralized Physical Infrastructure: DePIN, with Hivemapper as its standout success, revolutionizes the mapping industry by leveraging crypto speculation. Hivemapper's tokenization is critical. Without it, the project could not attract the liquidity necessary to give its token value, which in turn draws drivers and challenges Google Maps' dominance. This speculation solves the "cold start" problem for new ventures. Despite concerns, the potential for DePIN extends beyond mapping into telecom, energy, and more, with the industry possibly reaching a $3.5 trillion valuation by 2028 according to Messari. This projected growth indicates DePIN could spearhead productive capital formation in crypto, marking a significant shift from speculation to tangible economic contribution. Some other notable projects in this space include Helium, DIMO, and more.

Airdrops: Farmers continue to farm, they just do so in a different field. Airdrops continue to evolve, offering diverse strategies for "free money" through direct announcements or usage-based distributions. The Ethereum Layer 2 ecosystem, along with its new chains and dApps, and the Cosmos ecosystem, are central to this trend, embracing airdrops as a means to engage and reward community members. Distinctively, while the Ethereum ecosystem started using "points" to reflect the expected (but not guaranteed) future reward tokens, Cosmos and its Appchains continue to organically airdrop to its security layer’s capital contributors. Resources like Cosmos Everything, Airdrops.one, or Cosmos Guide (fr) are useful in navigating the Cosmos landscape. Some of the more anticipated dApps on the Ethereum side include: Rainbow points, FriendTech, EtherFi, Ethena, and Mantle.

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X. Community. Notes. NFA Disclaimers apply

Our journey in exploring Enzyme's on-chain capabilities and its technical limitations has unveiled a broader realization. The on-chain asset management domain is still pioneering, and therefore, navigating through significant challenges in an emerging industry largely dominated by traditional regulations. On one side, there's an obligation for off-chain KYC, specific geolocation rules, and adherence to dollar-based calculations. On the other, on-chain natives seek to maintain their privacy and distinguish between their digital and real-world identities.

This endeavor has been a profound learning experience, shedding light on aspects we, as builders and users, need to absorb. Despite the hurdles, the potential of on-chain asset management remains undeniable. Below are our key insights gained from this experience.

Pros

Our experience has reaffirmed the benefits of on-chain management, including full on-chain transparency, non-custodial fund management and instant redemption. Specifically:

• Faster onboarding time and less third-party interactions: opening an account at institutional banks and exchanges usually spans weeks if not months, and their maintenance requires ongoing certifications overseen by the management team. Operating directly on-chain via financial smart contracts is truly more automated and efficient in that regard. The traditional exchanges become integrated DEXes (Decentralized Exchanges), and the traditional bank accounts are the vault’s smart contracts, which are themselves integrated with further DeFi Applications, all accessible from a single interface.

• A new paradigm of trust: thanks to the inherent transparency of blockchain technology, for the first time, the perspectives of the manager and the investor harmoniously converge. With no room for manipulation or opaque off-chain asset operations, the on-chain paradigm generates a unique standard of trustlessness, as for there is no longer a need to trust and rely on the counterparty operators anymore. For the first time in finance, Limited Partners (LPs) do not need to rely on management' reports, accounting, or sources. Similar to how savvy technology users examine and recompile open-source software on their own to make sure the source code is legit, any investor can independently reassess accounting and verify that the outcomes match those of the management, administrators, or auditors.

• Asset custody and security: the blockchain's role as a custodian has fundamentally transformed the landscape of asset security.  In our prior management of Tokenpot Capital, we grappled with the intricacies of devising a sophisticated, multi-geolocation security strategy to mitigate the risk of a single point of failure. This involved mastering all sorts of hardware and navigating the complexities of multi-sig wallets. Enzyme’s smart contracts offer a paradigm shift by allowing LPs to maintain ownership of their shares via their own Ethereum wallets, significantly reducing the dependency on the fund manager's capabilities.

Cons

There are several significant technical limitations that have been detailed in the recent Enzyme review, but we can sum up the principal findings as follows:

• Meeting benchmarks with a limited asset universe: while surpassing dollar benchmarks proved feasible, consistently outperforming the major crypto benchmarks such as Ether (ETH) highlighted the crucial need for a much broader asset universe. Operating solely within a liquid-only market is already a significant challenge. However, the substantial barrier arises when desired tokens can only be included in the portfolio after they have been listed on major exchanges and weighted by Chainlink and other essential third-parties. This limitation not only impedes the timely integration of promising assets but also hampers the ability to invest early in emerging innovations.

• A non-flexible, confined environment: the crypto landscape continues to evolve at a rapid pace, but the on-chain financial smart contracts remain static. This rigidity is partially by design, as these smart contracts undergo rigorous audits to ensure the security of assets. Additionally, the on-chain setup of a  fund (known as vault) is confined within one single blockchain. For example, with Enzyme, users must choose between creating a vault on Ethereum or Polygon as interoperability between ecosystems is not yet feasible. Given the inherent insecurity of existing bridges, the decision of which blockchain to utilize during vault creation is paramount. Therefore, while several frictions known to the traditional financial world are alleviated with the on-chain setup, a new obstacle emerged: the inability to support new assets in a holistic, diversified portfolio that span across different blockchain ecosystems.

• Navigating the complex legal landscape of different jurisdictions: Our attempt to operate an Enzyme vault as an open-ended fund in the U.S. presented insurmountable challenges, leading us to consider offshore setups as more viable alternatives for the time being. The on-chain onboarding process, for example, contradicts the appeal of conducting all operations on-chain seamlessly in one place, as the requirement to KYC procedures is not facilitated in any way by Enzyme. Consequently,  if Enzyme were to serve as  a new kind of “asset management administrator”, it would fail in its most basic function in many countries that require investment funds to identify and collect minimum investors’ data, and consolidate it with investors’ on-chain identities. To top it all, the U.S. specifically mandates investors to be accredited in most common structures. Given the stringent regulatory framework generally, there is no choice but to hire external administrators, and thereby diluting the allure of the autonomous on-chain functionalities we aspire to achieve - at least for the time being.

This chapter may be ending, but the insights and experiences gained pave the way for future innovations in on-chain asset management. As the industry evolves, we remain optimistic about what lies ahead.

First collection, Ordinal Miners
Inscription range: 5322 to 13333
View collection on Magic Eden.

Second collection, OMPool
Beautiful renderings of the Bitcoin mempool captured at distinct moments.
View collection on Magic Eden.

Upcoming collection, Mutable Trees

Mutable Trees is an innovative Bitcoin-based art project that merges the worlds of art and technology. This project uses a special kind of mathematical model called Lindenmayer Systems (L-Systems), which are tools for simulating the growth patterns of plants and trees. Within this framework, two types of L-Systems—stochastic and parametric—are used to create unique, dynamic tree art that grows and changes over time.

Stochastic L-Systems introduce randomness into the growth patterns, ensuring each tree is unique and mirrors the unpredictability found in nature. Parametric L-Systems provide the ability to fine-tune and control the growth, allowing for a wide range of artistic expressions within the tree designs. This blend of randomness and control enables the Mutable Trees project to produce a diverse collection of tree art that evolves, offering viewers a captivating and ever-changing visual experience.

The project is ambitious, creating a total of 2016 trees that grow in six generations, with each generation sprouting at significant Bitcoin block heights. Each tree goes through a lifecycle of 250 "years," with changes occurring every 63 blocks, reflecting the natural aging process within a digital framework. This lifecycle is influenced by Bitcoin's difficulty adjustment feature, linking the growth of the trees to the very heartbeat of the Bitcoin blockchain.

Projection based on estimated numbers:

• Total Collection: 2016 trees, symbolizing the number of blocks in a Bitcoin difficulty adjustment period.

• Generational Growth: Starting with 32 trees in the 'Rootstock' sub-collection, the project expands through six generations, culminating in 1024 trees in the 6th generation.

• Dynamic Evolution: Each tree evolves over 250 "years," with changes every 63 blocks, ensuring a rich, multi-faceted development throughout the project.

This fusion of art, mathematics, and blockchain technology makes Mutable Trees a pioneering venture in the digital art space. It's not just an art collection; it's a living, breathing ecosystem that grows with and within the Bitcoin blockchain, offering a unique perspective on the convergence of natural beauty and technological innovation.

Why it's interesting

This approach could lead to fascinating experiments, such as studying how exposure to different natural environments affects mood or health. By chunking the vast concept of nature's influence on humans into specific, smaller experiments, we can discover how individual elements of nature contribute to our well-being and development. This not only enriches our understanding of ourselves but also highlights the critical importance of preserving our natural environment for future generations.

2024

Several key events are expected in 2024: the potential approval of Bitcoin ETFs, the pivotal Bitcoin halving, possible stabilization or reduction in interest rates, and incentives driven by the US presidential election, all signaling a robust bull market. The real challenge lies in outperforming peers. Key to this is investing in nascent but fundamental ecosystems.

Ethereum and Cosmos are at the forefront of this movement. The bullish trend was initiated by Bitcoin, Solana, and innovative alternatives like Kaspa. A pertinent question lingers: will DeFi and its infrastructure resurge in this cycle?

Other significant crypto segments include Privacy, RWAs (Real World Assets), DePIN (Decentralized Physical Infrastructure), Bitcoin’s blockspace (see inscriptions), Ethereum’s layer two (L2) technologies, and AI-oriented PoW alternatives like Bittensor and Qubic.

10102 Vault Strategy

Accumulating foundational assets continues to be 10102 Etherbase Vault’s primary focus. Check the activity tab for a detailed overview.

I recently wrote about the vault’s operational protocol Enzyme | 2023, addressing some challenges currently hindering growth for both managers and investors. It’s a comprehensive summary of the current state and what is needed to unlock the vision and true performance capabilities of our strategy.

Despite these constraints, the vault's performance aligns with our expectations, adopting a leveraged-like approach to the Ethereum ecosystem and its key components. The performance trajectory reflected a challenging first half of the year, but showed signs of recovery and improvement as the year progressed. I am optimistic that Ethereum is just embarking on its significant phase in this cycle.

While Ethereum's price recovery lags behind Bitcoin and others, indicating a potentially undervalued state, the underlying fundamentals are more robust than ever. We've observed a deflation of ETH since the merge, a blossoming of layer 2 scalability solutions (Arbitrum, Base, Scroll, Manta, etc.), and an uptick in volume and usage. The infrastructure is not only expanding internally but also across various ecosystems that are increasingly adopting EVM compatible applications (including Solana, Cosmos, Near, etc.).

Altogether this context points to a promising future for Ethereum and, consequently, a valuable opportunity for the 10102 Etherbase Vault. Additionally, Chainlink being among the top allocations is deliberate. Currently undervalued and significantly below its historical high of ~$52, LINK offers a unique hedge within a crypto portfolio as a major, chain-agnostic asset with multiple secure components widely utilized across diverse networks and blockchains.

10102 DeFi Corner

Chainlink
The staking roadmap is progressing and recently reached v0.2 on its way to v1, which will include user fee rewards, node delegation, and advanced reputation tracking. Chainlink’s oracles continue to lead, being the top choice for highly reliable data needs. The Cross-Chain Interoperability Protocol (CCIP) is rapidly gaining attention and has become one of the most demanded resource in a very short amount of time.

Polygon
Known for its significant partnerships, Polygon continues to show its prowess. As numerous other L2s enter the space, Polygon benefits from years of solid development, a new tokenomics model (Polygon 2.0), and a growing zkEVM infrastructure. The state of Polygon thread from the end of Q3 2023 by Messari Crypto provides further insights.

ENS
Adoption of ENS is accelerating. As the core of crypto recognizes its importance, mainstream incorporation is imminent. The latest statistics show that the ENS DAO continues to be one of the most profitable, independent of any market dynamics or native token. ENS's status as an essential public good continues to be endorsed by prominent figures like Vitalik, further legitimizing its significance.

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10102 Insights

The 10102 Substack is now hosted directly on 10102’s website. While the main posts are published on the homepage, don’t forget to check out the notes for potential alpha, and bookmark insights.10102.io.

10102 Etherbase Vault

10102 Etherbase Vault symbolizes our strategic initiative to invest in the fundamental components of Ethereum for the long-term. This fund is rooted in the core principles of Ethereum, embodying a forward-thinking approach to blockchain investment.

Discord Community

We value our community and want to stay connected. If you're on Discord, join us as we launch the 10102 Community. We’ll keep you updated with the latest news and developments.

NFA Disclaimers apply

Enzyme Finance is still the most advanced web3 asset management protocol to date. Yet there are ways to go before it becomes mainstream. Below I break down the gaps based on personal experience, having managed both traditional fund structures and vaults via Enzyme Finance smart contracts.

No compliant onboarding process

Enzyme Finance provides efficient operational rails for on-chain asset management but currently lacks a robust onboarding process. Compliance with financial regulations is crucial, particularly in highly regulated regions. Presently, multiple steps in the onboarding process, such as verifying an investor's details and approving the fund’s offering, are performed offline. Coordination is required at each step and all the way to proceeding with the whitelisting of an Ethereum address, another manual operation.

To enhance this process, Enzyme Finance could integrate Know Your Customer (KYC) and accredited status verifications in a more streamlined manner. This could be achieved through on-chain attestation services like EAS or similar platforms, leading to the automation of investor whitelisting. Such an improvement would allow Enzyme Finance to entirely replace traditional administrative functions, rather than just supplementing them.

Asset universe limitations

The asset options in Enzyme Finance are highly restricted, mainly due to its reliance on Chainlink as an Oracle. As of November 2023, a number of popular assets such as Rocket Pool (RPL) or Arbitrum (ARB) are completely absent from Enzyme’s tradeable options. This limitation is significant because it hinders the platform’s ability to offer a diverse range of assets.

More broadly, this restricts investment strategies and the ability to differentiate funds. Exploring other blockchain ecosystems, like Cosmos, could broaden the asset pool, but this requires careful security considerations, especially in light of past incidents involving unsecured bridges between blockchains.

Redemption challenges

Path 1: easy for the manager and inconvenient for the investor

Redeeming shares in kind is the easiest path for the manager, as the investor agrees to receive all the assets in the fund’s portfolio proportionally to their shares. In this case, the fund's ending allocations remain unchanged. However, more often than not, investors do not want to manage all the different assets afterwards (questioning the purpose of the fund). This is when the alternative and more likely path becomes complicated.

Path 2: easy for the investor and inconvenient for the manager/fund

Selecting a specific asset for redemption is the alternative. This redemption process is cumbersome and in need of refinement. If the portfolio is well diversified or fully allocated at that time, there's a high likelihood that the necessary balance is insufficient, leading to errors in the process. Conversely, if there is a sufficient balance of the desired asset, it naturally creates an imbalance in the portfolio.

This process often requires manual coordination between the investor and the manager, potentially leading to temporary portfolio imbalances. An ideal solution would be an automated system that maintains portfolio allocations while facilitating real-time liquidation of assets during redemption.

Inadequate activity data

Tracking and reporting are crucial for any asset management platform for various reasons, including providing readable data to investors, aiding third-party service providers, and facilitating tax calculations. However, there are some key features that are currently lacking in this aspect;

No NAV data for specific events

While Enzyme Finance runs subgraphs to provide 24/7 NAV reporting in real-time, it seems there are limitations in providing NAV for specific transactional events. This deficiency could require users to manually consolidate data, which is a time-consuming and error-prone process. For instance, there appears to be no direct way to crystallize events like subscriptions or redemptions for regulatory purposes without additional manual calculations;

In cases where the amount of shares being redeemed and the total currency given for them are known, NAV can be calculated by dividing the two (Amount/Shares Redeemed = NAV). However, this remains a manual process that needs to be performed on a per-event basis. And although the main dashboard tracks NAV daily, it does not do so at specific event times.

No export capabilities

Furthermore, Enzyme Finance may lack robust data export capabilities. Users might need to manually consolidate these activities in an appropriate document, a task that could be significantly time-consuming. They might also resort to using third-party tools or accounting software to view and export the activities.

Additionally, most crypto tools might not fully understand the transaction types configured within Enzyme smart contracts, necessitating a consolidation exercise. Therefore, it is crucial for Enzyme Finance and its community to enhance these features, allowing institutions to more effectively manage a vault throughout its full lifecycle.

Acknowledging progress and security

Following was a brief Q&A with Avantgarde Finance in 2020, the main developers and maintainers of Enzyme Finance. I’d like to end this review with a few positive notes since that time;

• Various audits have been performed, and continue to be performed on a regular basis as promised, even more so before major release.

• Enzyme Finance remains one of the only early project (2016 ICO) that has never been hacked. Action speak louder that words here.

• Compared to the first version of the Enzyme UI, the manager and experience is a breath today, as well as that of the manager.

Intro: No custodian needed, all the assets are held in smart contracts and have trading permissions for the manager only. Investors are responsible for the security of their own ethereum wallet.

Q: Are the contracts audited? If so could you send the reports? If not, why and what are your plans in this regard?
A: Two audits completed as of Dec 16th, and another one is on the way. The aim is to constantly audit the new developments.

Q: Is there any insurance or recovery policy? How can you or your managers reassure the investors about the safety of the funds?
A: Not yet but maybe coming with the recent smart contracts developments on insurance.

Q: How many assets there are, and will there be the possibility to have smaller projects onboard?
A: More assets coming on eth, cross-blockchain assets is a possibility, but not before 2021.

Q: How do investors subscribe and redeem?
A: They will be able to do it directly from the website in the coming version.

Conclusion

We summarize here what we think should be high priority items for Enzyme Finance to be considered more seriously in the asset management industry.

• Integrate attestation services for investor verification, thus ensuring compliance without sacrificing the decentralized nature of the platform.

• Proactive exploration and testing of new technologies could position Enzyme for future expansion.

• An automated system that maintains proportional allocations and executes immediate asset liquidation during redemptions would enhance efficiency and uphold portfolio integrity.

• Enzyme should develop solutions to provide comprehensive, real-time activity data, compatible with common financial tools.

Despite these gaps, Enzyme Finance has shown considerable progress since its inception. Regular security audits and a history of avoiding major hacks since its 2016 ICO are commendable. The improvements in the user interface and management experience since 2020 highlight the platform’s commitment to growth and user satisfaction.

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10102 Etherbase Vault

10102 Etherbase Vault symbolizes our strategic initiative to invest in the fundamental components of Ethereum for the long-term. This fund is rooted in the core principles of Ethereum, embodying a forward-thinking approach to blockchain investment.

Contact Us

For inquiries or document requests, please reach out to us at info@10102.io.
Note: Participation is open to US accredited investors only.

Our Team

10102 Etherbase Vault is managed by 10102, a team dedicated to futuristic blockchain research. 10102 previously managed Tokenpot Capital (2015-2019).

It's time our fund's name reflected its innovative strategy.

A vault is emblematic of a smart contract safe, where value can be securely stored. True to this analogy, our fund operates within a smart contract framework, ensuring on-chain accessibility at all times.

The term 'Etherbase' in Ethereum refers to the account designated to receive mining rewards, symbolizing the foundational layer where new assets are introduced into the ecosystem. This term resonates with our fund's core ambition to invest in the fundamental components of the Ethereum infrastructure.

By aligning with the genesis of asset creation on Ethereum, '10102 Etherbase Vault' embodies our long-term commitment to the robust and thriving Ethereum ecosystem. Moreover, with ETH as our performance benchmark, we gauge our fund's performance against Ether's market dynamics, reinforcing our deep-rooted engagement with the Ethereum network.

Snapshot Q3 2023

NAV: 0.774 ETH | September: +6.36% | Quarter: +1.28%

Strategy

Our last quarter's strategy hit the mark:

“Looking back over the past two years and focusing on the big picture, it seems that this year is situated between a cycle bottom and sideways movement. Generally, this is the best time to accumulate based on conviction, regardless of any other factor. That’s what taking the long view is all about.

Therefore, I’d like to propose a simple framework for consideration - can you endure and remain resilient for another six months of the same trends? If so, you are in the right place; don’t expect any significant changes in the next quarter.“

The accuracy of this statement stands firm today. Although mundane, we anticipate a shift in the narrative soon, potentially providing a glimpse into 2024's landscape. Our unwavering conviction continues to be our guiding light through these times.

Portfolio updates

Accumulating foundational assets continues to be our primary focus, and we've been diligently doing so. Check the activity tab for a detailed overview, or see the summary below.

Asset Accumulation
Powered Up: +38k GRT | +6k MATIC | +1k LINK | +245 MLN
Powered Down: -5k IMX | -1k BAL

AAVE: GHO liquidity was initiated on Balancer.

Chainlink: the newest Chainlink product might be a game changer. Read From TCP/IP to CCIP.

TheGraph recently announced the substreams-powered subgraphs, boosting indexing performance (100x speed).

Polygon announced a token upgrade (MATIC to POL, coming soon). Read more about Polygon 2.0: Tokenomics.

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Fund Information

10102 Etherbase Vault

10102 Etherbase Vault symbolizes our strategic initiative to invest in the fundamental components of Ethereum for the long-term. This fund is rooted in the core principles of Ethereum, embodying a forward-thinking approach to blockchain investment.

Contact Us

For inquiries or document requests, please reach out to us at info@10102.io.
Note: Participation is open to US accredited investors only.

Our Team

10102 Etherbase Vault is managed by 10102, a team dedicated to futuristic blockchain research. 10102 previously managed Tokenpot Capital (2015-2019).

Community Engagement

Discord Community

We value our community and want to stay connected. If you're on Discord, join us as we launch the 10102 Community. We’ll keep you updated with the latest news and developments.

The Ordinal Theory

The power of inscriptions

Individual satoshis can be inscribed with arbitrary content, giving rise to Bitcoin-native digital artifacts, more commonly known as NFTs (Non-Fungible Tokens).

Unlike traditional NFTs, inscriptions do not require a sidechain, a separate token, or even an independent storage solution.

Many NFTs on Ethereum point to media that are stored on IPFS (InterPlanetary File System) or elsewhere, rather than within the Ethereum blockspace itself. In contrast, inscriptions are as durable, immutable, secure, and decentralized as Bitcoin itself. This distinction highlights the inherent efficiency and simplicity of inscriptions.

The creation of perpetually inscribed artifacts directly on the Bitcoin blockchain forms the core of the Ordinal movement. As the developers and early adopters began to inscribe, the realm of Bitcoin started to expand through the lens of Ordinal Theory, giving rise to a new, augmented reality within the Bitcoin ecosystem.

This evolution signifies not just an expansion of Bitcoin's functionality, but also a profound shift in how we perceive and utilize its blockspace. For better or worse, one can read more about the early mindset and critics, while debates are still ongoing to this day.

Learn more

The evolution of inscriptions

Initially, the goal of most inscribers was to inscribe as early as possible. A race ensued. Milestones were set at the first 100, 500, 1k, 10k, and 100k inscriptions.

As we surpassed the 100k mark and new ideas emerged, the focus then shifted to structured inscriptions called BRC-20, a term borrowed from the Ethereum's ERC-20 tokens. Introduced by Domo, these inscriptions are essentially a JSON format-based credit system, with ORDI being the first and most valuable BRC-20 to date. However, their real-world utility, given the lack of smart contract or programmable support, remains to be seen.

After reaching the 1M inscription milestone, the emphasis shifted towards curating quality collections. Quality was first associated with original art, then evolved to include generative collections, and most recently, collections entirely inscribed on uncommon satoshis.

In the meantime, experiments continued to emerge along the way, such as Cursed ordinals, ORC-20 (an upgrade attempt to BRC-20), ORC-721 (generative inscriptions), SRC-20 (stamps), and finally, a promising effort to construct Recursive inscriptions.

Builders and early adopters are simply having fun, being creative, and absorbing a seemingly refreshing energy that has been absent from the Bitcoin ecosystem for quite some time.

This rapid evolution occurred within just a few months of Ordinals' mainnet deployment to the Bitcoin network. The initiative is still in its nascent stages, and the potential for future developments is vast. As for what the Block 900,000 edition might bring, it's likely beyond our current foresight.

CA$ a perfect match for Ordinals

The essence of the Crypto Archive$ is to chronicle major events in the crypto space in a concise, simple, and unfiltered manner. Our goal is to remain as neutral as possible while preserving pertinent information indefinitely. This ethos aligns perfectly with the simplicity and permanence of Ordinal inscriptions.

See the inscribed Crypto Archive$ | 800,000 (up to this point).

CA$ inscriptions #1

We commemorate Block 800,000 with a few of our own inscriptions, forever inscribed:

• Snapshot of Bitcoin metrics on June 20, 2023 (from Clark Moody Bitcoin). Please note the small screenshot within, capturing the exact time of the displayed information.

• Snapshot of the ord repository. Again, note the small screenshot within, capturing the exact time of the displayed information.

• A special dedication: Bitcoin is about to surpass 8 million minutes of non-stop operation.

More Archive$ | Q2 2023

• Illegitimate bitcoin transactions, what got many folks started

• Chronology thread, by Dazza9x on Twitter

• Casey’s github, the original developer of ord (main code repository)

• Docs.ordinals.com, the official documentation portal

• Guide to BRC-20 tokens by Bankless

• Bitcoin Rocks | Ordinal Punks | Timechain | Loops | Shrooms,
  Legendary early collections featured by Sub1k Ordinals.

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Disclaimer: the information provided on this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Readers shall conduct their own due diligence and consult their financial advisor before making any investment decisions.

Performance Related to ETH | June: -2.11% | Q2: -16.88% | NAV: 0.764

Please note that all the numbers mentioned above are related to Ethereum, as it serves as the primary benchmark for 10102 Capital. The market for alternative investments hasn’t matured yet, which explains the ongoing underperformance. However, as elaborated in the strategy section below, now is not the time to divest from these altcoins. On the contrary, we remain steadfast in our accumulation strategy.

I would like to conclude the quick overview with an optimistic note: let's examine the performance trend over the last three months. Could we be nearing the low point of the ETH-to-tokens ratio?

Strategy

The market landscape has been challenging this quarter, to put it mildly. With the U.S. taking a cautious stance on cryptocurrencies and the prevailing high federal interest rates, many fundamental protocols continue to fly under the radar. Even industry pillars like Bitcoin and Ethereum haven't been immune to the downturn.

However, this kind of trend is not unprecedented in the history of cryptocurrencies. We have witnessed similar patterns and fluctuations across various cycles, and they typically resolve over time, establishing a stronger foundation for the entire industry.

As always, the critical aspects to scrutinize are timing and potential outcomes.

Timing

The next six months are shrouded in uncertainty and are likely to be characterized by survival tactics. However, the outlook for this time next year appears brighter. The halving is approaching, and despite recent announcements, federal rates cannot continue to rise or remain elevated indefinitely.

Looking back over the past two years and focusing on the big picture, it seems that this year is situated between a cycle bottom and sideways movement. Generally, this is the best time to accumulate based on conviction, regardless of any other factor. That’s what taking the long view is all about.

Therefore, I’d like to propose a simple framework for consideration - can you endure and remain resilient for another six months of the same trends? If so, you are in the right place; don’t expect any significant changes in the next quarter.

Outcomes

There are many possibilities ahead with a high level of uncertainty, so I will keep this concise while outlining some significant trends in my perspective.

It's reasonable to assert that Bitcoin and Ethereum will likely continue to dominate the cryptocurrency market in the foreseeable future, which is the next 5 years. During this period, we can expect substantial expansions in both ecosystems.

On the Bitcoin front, the Lightning Network remains promising as it continues to gain traction. Additionally, Ordinals are engaging a whole new audience and increasing miners' revenues, block subsidies aside. In my view, these developments are encouraging.

Ethereum is evolving at a rapid pace, and its progress has been impressive thus far. Not only have all the major upgrades been executed without hitches, but the upcoming ones also seem to be well-conceived. The development of Layer 2+ solutions is particularly noteworthy, as they provide practically limitless scalability.

One of the critical developments to anticipate is the enhancement of interoperability across Ethereum's layers. This development, coupled with account abstraction, is expected to lead to improved user interactions, and consequently, an enhanced DeFi (Decentralized Finance) 2.0 experience.

Along the same lines, the creation of digital identity systems through strong public infrastructures such as ENS (Ethereum Name Service) and EAS (Ethereum Attestation Service) is set to make a remarkable impact. These improvements are likely to pave the way for the development of credit-based applications and various identity-related services.

The future of privacy-centric initiatives, particularly in the United States, remains uncertain. Nevertheless, zero-knowledge proof-based technologies are expected to continue gaining popularity in other regions.

Concurrently, AI (Artificial Intelligence) is anticipated to maintain its momentum and attract significant interest due to its exponential expansion. Though the integration of AI within the cryptocurrency domain is still in its infancy, the potential is enormous. Between startups using the AI buzzword to draw investments, and well-established companies using AI to broaden their scope, the latter is the more promising and likely to succeed. AI is expected to revolutionize various sectors and as these transformations unfold, new opportunities will emerge.

As always, 10102 Capital will be vigilant and ready to identify genuine innovations early on and support them as long as the Enzyme Finance protocol permits.

It is essential to note that, given the aforementioned assumptions, there will be increasingly limited opportunities for other Layer 1 protocols as time progresses. Unless there is a revolutionary technological breakthrough, alternatives like those that emerged in 2017 will find it difficult to compete. While some ecosystems such as Cosmos remain robust, very few others are likely to flourish to the extent observed in previous cycles.

In summary, 10102 Capital’s portfolio is strategically positioned to capitalize on the imminent paradigm shifts, accompanied by a wave of innovations. This is due to our investments in some of the most visionary and resourceful organizations in Web3, including Chainlink, Uniswap, The Graph, ENS, AAVE, and Polygon.

Portfolio updates

We believe that accumulating foundational assets is crucial. Accordingly, we have been actively doing so. See the activity tab for details, or below for a summary.

Portfolio changes in Q2 | +40k GRT | +15k IMX | +6k MATIC | +1.3k LINK | +1.2k UNI

Balancer treasury report, June 19th by Karpatkey

ENS treasury report, June 19th by Karpatkey

Chainlink report of Q2 2023 (official). The image below speaks volume about the “Chainlink Effect” for developers.

Manager’s Contributions for Voting Power Delegation

On May 12th, 15k IMX from the manager’s wallet were transferred to the vault, resulting in a nearly 5% increase in the NAV due to the additional value equivalent to 6 ETH. The transaction linked below represents the first exchange of its kind, where value was exchanged for voting power accumulated in an investment fund.

View Transaction on Etherscan

On June 19th, an additional 3k BAL were transferred from the manager’s wallet to the vault, which again boosted the NAV by approximately 5% due to the extra value equivalent to 7.5 ETH.

View Transaction on Etherscan

Company Information

10102 Capital

At 10102 Capital, we are continuously evolving and innovating. After the successful completion of our Chapter 1, "Tokenpot Capital" we are excited to introduce you to Chapter 2 - 10102 Capital, our futuristic brand. Read the full story of Tokenpot Capital here.

For a quick overview of our company and performance, visit our Dashboard (please select ETH on the upper right corner for the proper benchmark numbers).

Contact Us

For any queries or document requests, please email us at info@10102.io. Note: Participation is open to US accredited investors only.

Investment Opportunities

Documentation Requirements

To participate as an investor, the following documents are required:

• Proof of Accredited Investor Status (for US investors)

• Identity Verification Documents (e.g. Passport, Driver's License)

• Additional documents as required (automated via DocuSign)

Please request the necessary documents by emailing info@10102.io.

Community Engagement

Discord Community

We value our community and want to stay connected. If you're on Discord, join us as we launch the District11 Community. We’ll keep you updated with the latest news and developments.

Private AMA Sessions

Interested in learning more or have specific questions? Book a 1:1 session with me on Evolve for a private Ask Me Anything (AMA) session.

March: -14.37% (NAV = 0.91 ETH)
Return quarter: -6.85%
See the full dashboard’s financials for a more detailed view.

Strategy

The year started well with two consecutive months in the green, relative to Ethereum as always but consequently even more so relative to the dollar.

Unfortunately the banks crisis impacted the macro as a whole and while Bitcoin and Ethereum reacted positively, the appetite for the riskier alternatives took a hit.

That swift change of events is reflected in the performance of March, the worst we've had to date. No matter what, we see this timeframe as another great opportunity to accumulate our positions.

Indeed our research and experience both point to the conclusion that the projects in our portfolio (DeFi components) are currently undervalued. We expect major capital moves from ETH to these as soon as the uncertainty around banks and hikes rates dissipates.

Finally the manager Atsala LLC invested an additional 25 ETH in the fund, reinforcing its dominant position with more than 50% shares (52% to be exact).

While having “heavy skin in the game” is undoubtedly appreciated, this is also a good reminder for existing and interested investors that (additional) subscriptions can be done anytime thanks to the flexible and convenient policy in place. All the info needed can be found at the bottom of this newsletter.

Portfolio updates

More AAVE

AAVE had to be one of our top 3 positions. With close to 12% of the portfolio, the job is done for now. Once DeFi is back for real, and it will be, AAVE will lead the pack - assuming no major catastrophe occurs. We will be there for it and in time, We aim to actively contribute to its governance.

Uniswap (UNI)

Uniswap, finally. Investment announced early in January, there was little doubt we would ignore the most iconic DAO of the space.

Uniswap has the most volume of all DEXes (decentralized exchanges) and gets income through transaction fees. More inflow was observed after the failures of the various CEXes in 2022 and if that’s not enough, NFTs are now part of the trading features.

What makes UNI even more comfortable to hold this year is the continued pursue for innovative development - an NFT marketplace and a branded mobile wallet were just the latest surprises of Q1 2023.

TheGraph (GRT)

As mentioned in our previous newsletter, we knew TheGraph was fundamentally very solid and even essential to the space. The deep understanding of GRT’s tokenomics was the missing piece of our puzzle. No more.

Our research indicates promising perspectives long term and as the network usage grows, the demand for GRT should organically grow as well. To further understand why and how we came to that conclusion, please refer to our report's summary.

Live metrics (GRT):
TheGraph Explorer
Graphtrtonauts Network

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10102 Capital Information

Dashboard
(select ETH on the upper right for proper benchmark numbers).

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Request of documents * / email info@10102.io
* US accredited investors only

December: -10.02% (NAV = 0.9739 ETH)
Since inception & 2022: -2.61%
High watermark: 1.0579 ETH

Performance

The outlook above may look bad at first with only three positive months out of nine (as the investment strategy really only started on April 1st) but with a maximum drawdown (MDD) of 11.87% in what we could call one of the worst year of crypto history, the strategy is promising and offers green sparkles of hope in the future.

In 2022 the portfolio slowly allocated non-ETH positions up to 88% at the later stage, which is a great indicator of diversification as promised, reinforcing the argument of the 11.87% MDD being decent while most cryptocurrencies lost dozens if not hundreds percent against ETH this year.

Thanks to the decentralized technology stack 10102 Capital was not affected by any of the catastrophic events of the year either which helped our performance resiliency.

Strategy

This last quarter was relatively quiet both in market movements and infrastructure activities. The portfolio of 10102 Capital has been solid overall and I feel confident about its composition for the next 2 years.

In the big picture, 2022 was the year of inception of 10102 Capital ending with a robust set of infrastructure investments. I am excited about 2023 and some of the plans we already have:

• We will be staking our Ethereum thanks to the latest Enzyme integration with Kiln (native, non-custodial staking), averaging a 5% additional return for the asset.

• We will add a few more distressed assets but nonetheless essential to the ecosystem, some of which are described below in the “next wave” section.

• We aim to utilize the governance assets and support their respective networks in a positive direction, eventually becoming a credible and eligible hub for governance delegation over time.

Portfolio updates

Aave

AAVE is now part of the portfolio, about 8% of it at the start of 2023. We may look to accumulate more as and if it continues to go down against ETH in these market conditions.

With a smooth Ux and battle-tested SC security, Aave is a fundamental infrastructure of DeFi today for both institutional and retail. Their own stable coin $GHO is coming as well, more on that probably in next edition.

Next wave

There are many infrastructure protocols that are on the path of becoming significant, if not essential to the industry. We keep studying this space closely and these are just a few on that list. Keep in mind that fundamentals are not sufficient, we need the capture of value component to be well designed too and it sometimes come at later stages.

Gelato is a protocol to automate smart contract executions at its core, but aims to extend functionality to become an essential decentralized backend of web3. More research needs to be done on the value proposition of the token GEL, but this one is definitely on the radar.

TheGraph enables data structures and queries on the Ethereum blockchain. By far the leader in this segment, TheGraph fulfills such an important piece of infrastructure in the backend of web3. In fact, the protocol used by 10102 Capital Enzyme Finance could not operate properly without TheGraph, like most protocols in the space. GRT holders can support indexers & earn rewards by delegating $GRT.

Uniswap is the emblematic DeFi DAO, always pushing forward and defining the new trends and their limits. Uniswap has the most volume of all DEXes (decentralized exchanges) and gets income through transaction fees. More inflow was observed after the failures of the various CEXes in 2022 and if that’s not enough, NFTs are now part of the trading features.

Filecoin has been one of those useful products with inefficient value capture so far. What if that could change as early as Q1 2023? Indeed FVM (Filecoin Virtual Machine) and smart contracts are expected by then and that could potentially fill the tokenomics gap.

VitaDAO is leveraging the strength of NFTs for IPs with real science, more specifically longevity research, while being governed by a decentralized autonomous organization (DAO). We keep following very closely and so far VitaDAO seems to be the best play in the biotech industry as it takes the lead in DeSci, or decentralized science.

Disclaimer: I have been personally invested in VitaDAO from its inception, just like most other fundamental projects 10102 Capital is allocating to.

Data / Bookmark it

Coverage on Polygon by OurNetwork

Coverage on The crypto that matters in 2022 by Crypto Archive$

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10102 Capital Info

Dashboard
(select ETH on the upper right for proper benchmark numbers).

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Request of documents * / email info@10102.io
* US accredited investors only

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Special NFT By ATSALA

10102 is our chapter 2 and futuristic brand.

Tokenpot was our chapter 1. We created a dedicated NFT * to commemorate this early adventure. A collection of 50 badges of honor are up for grab. The claim page was first sent to the initial investors, and now we share the link with you.

* this badge is free and has no value except being an historical proof of participation in the early phase of Atsala, and more broadly, an early experience in the crypto world (2015-2019).

Finally, with love and many dreams,

Happy new year 2023

An ecosystem that stands out in 2022. Everything about Cosmos just seems right so far - ethos, community, organic development activity and truly innovative technology. The main layer token ATOM lags behind the ecosystem growth, but proposals to revamp its tokenomics (referred as ATOM 2.0) are still playing out.

Evmos (EVM x Cosmos) aims to connect Cosmos with EVM (Ethereum Virtual Machines) compatible blockchains. IBC (inter-blockchain communication protocol) and many other fundamental products are maturing to connect the dots between the most adopted chains.

Cosmos is a huge ecosystem that deserves more content, but below are a few things you may try:

• Check on airdrops from times to times. If you stake some ATOM and/or JUNO, there is a good chance you are eligible. If you don’t, get started asap is the word of order.

• Find the name(s) that you identify with so that you can leverage it as a convenient identity within the Cosmos ecosystem, now or later.

• Catch up with some of the latest projects through the recently streamed Stablecoin Summit.

Ethereum & Layers 2

Enough was said about the Ethereum merge pretty much everywhere in the crypto world and on my timeline too. Suffice it to say, it was the most sensational event of 20222 in my opinion. It was executed successfully and now we can just admire the “justified” deflationary shift (occurring with network usage only). Second order effects should come into play at proper time.

A lot of building and activity occurred on Ethereum layers 2 in 2022, notably Optimism, Arbitrum, Starknet, Zksync, ImmutableX, MedisDAO and Polygon.

• Polygon revealed significant partnerships this year including Reddit, Instagram and Starbucks. Great overall coverage on Polygon by OurNetwork.

• Arbitrum is at the top of the stats as well in part due to a potential airdrop. More here. And if you are more of an NFT addict, perhaps take look at its first NFT collection.

Crypto experiments 2022

Qubic - a personal (re)discovery of 2022 and bet on the future. You won’t read anywhere else about it but here on my timeline.

DIMO - a tracking app for cars providing incentives to share data. Easy to try on a Tesla and it provides convenient futures as well.

Soulbound tokens (SBTs) - well explained in Vitalik’s blog, I mentioned one of the possible challenge on my timeline. Regardless, this will likely grow quickly in the coming years. You can also find a more simplistic summary of what it is on Coindesk.

Crypto housekeeping 2022

“Other than Bitcoin and arguably Ethereum, you can not keep anything long term without doing some housekeeping from times to times. Many if not most of them are being upgraded and swapped over time, or worse. Some requires claims to be made prior to specific deadlines.”

I wrote a post on a few important protocol changes to keep track of (deadlines included), briefly mentioning Ren protocol, Secret network, Safe, Ramp, FiatDAO, Bond, Cheqd, Tornado Cash, Qredo, Aptos, Qubic, Zcash, and Chainlink.

Tooling (Edition 2022)

• Delegate.cash extends functionality of the typical safe wallets (or vaults) such as ledger and multi-sig wallets by letting the more risky wallets such as hot wallets act on their behalf, essentially doing the dirty job (minting, voting or other random signatures). Read more on the concept here.

• Check the $ETH burn and other supply stats live on ultrasound.money.

• ENS has grown significantly in 2022 as more and more products realise its fundamental value as a first identity layer. ENS.Vision is a great tool to evaluate the ENS markets. Even virtual worlds are now being created based on your wallet activity and ENS domains.

• You can now trade NFTs on Uniswap. Ann here. Other recommended places: Blur.io, Gem.xyz.

• Current staking APR for ETH is about 4.7% on Lido and Stakewise.

• Farcaster is a decentralized social network built on top of Ethereum. The Layer 1 blockchain manages user identities, while a Layer 2 network propagates updates between users. Find me there @msa.
  

I leave you with this excellent post from Coindesk about 23 blockchain predictions for 2023, and the only non-crypto tech I have been impressed with this year, ChatGPT (and 20 entertaining uses).

Let’s go straight to the point. Other than Bitcoin and arguably Ethereum, you can not keep anything long term without doing some housekeeping from times to times. Many if not most of them are being upgraded and swapped over time, or worse. Some requires claims to be made prior to specific deadlines. Let’s tackle just a few of these changes in 2022*.

Ren protocol

After the collapse of FTX and Alameda Research, Ren’s development team was left without a runway beyond 2022. This lead the developers to accelerate the rollout of Ren 2.0 which aims to become fully independent and community owned. Essentially Ren 1.0 will be sunset very soon.

• Backstory and context here.

• Action item: holders of Ren assets such as $renBTC, $renDOGE, $renZEC etc. should bridge back their assets to the respective native chains ASAP. More details here.

• Action item for operators: withdraw rewards from the darknodes asap. When the migration to 2.0 occurs, previous rewards will likely become obsolete “the development team cannot guarantee that remaining funds can be carried over”.

• Latest proposal seeks to establish a new method of funding for Ren 2.0.

Secret network

Vulnerabilities have been discovered as described here and here. Essentially privacy was not all so private up to this point.

On the other hand, upgrades are coming fast with the next release scheduled for December 13th and Secret 2.0 still on the horizon.

Whether that puts up or down your confidence in the technology, here is a gentle reminder to rebalance accordingly.

• Possibility: swap some $SCRT for $ATOM or vice-versa and add it to a superfluid staking pool (LP tokens can be further staked on the corresponding chain creating additional incentives) on Osmosis.

• Follow the Secret Summit on their Youtube channel, December 15th.

MtGox claims

For those being part of the MtGox claiming process, there is an important deadline coming up to select the repayment method as specified in their latest email:

“the deadline to select a repayment method and to register payee information in accordance with the Rehabilitation Plan (“Selection and Registration”) is January 10, 2023"

• Visit the MtGox claims portal here and specify your repayment method.

• If needed visit the Telegram group and Reddit community to understand your options further.

Safe (former Gnosis Safe)

If you ever used Gnosis Safe before September 28 2022, make sure to claim your SAFE tokens before December 27th. Unclaimed tokens will return to the newly formed DAO treasury.

Also be aware that “$SAFE will be non-transferable at the outset and the governing community can decide if and when it becomes transferable in the future”.

• Find all the details here.

• Check your Safe on the web.

RAMP to LEVER

While there does not seem to be any deadline, one might as well go ahead and swap their old RAMP to the new LEVER token.

“As part of the rebranding of RAMP to LEVER, token holders can swap 1 RAMP token for 35 LEVER tokens.”

• Swap the old to the new here and follow their guide as needed.

FDT to BOND to Arbitrum

As FiatDAO was acquired by BarnBridge, a swap is coming up at the rate of 750 FDT redeemable for 1 BOND. Fiat II will be a BarnBridge protocol governed by BOND. Meanwhile BarnBridgeDAO is migrating to Arbitrum.

• Context on Fiat I vs. Fiat II here.

• Keep an eye on the $FDT 100 weeks locked airdrop and future proposals.

• Bridge your $BOND using the official Arbitrum bridge.

The Ethereum Merge?

Enough was said there pretty much everywhere in crypto world and on my timeline too. Suffice it to say, it was the most sensational event of 20222 in my opinion. It was executed successfully and now we can just admire the “justified” deflationary shift (occurring with network usage only). Second order effects should come into play at proper time.

• Check the $ETH burn and other supply stats live on ultrasound.money.

• Current staking APR is about 4.6% on Lido and 5.1% on Stakewise.

Random FYIs

• Cheqd Network (CHEQ) is introducing a burn percentage for identity related transactions via its latest tokenomics proposal.

• The community of Tornado Cash issued a post-censorship guide to help interacting with the protocol again.

• Qredo burns 40M tokens to mint validators NFTs. This move is a first step in a revamped economic approach: read about the Qredo Validator NFT model and deflationary shift here.

• Aptos has been the hype for a time this year but as always one should read about its tokenomics first.

• Qubic is my personal (re)discovery of 2022 and bet on the future. You won’t read anywhere else about it but here on my timeline.

• Zcash upgrade in May of 2022 included important technical upgrades and finally made Zcash monetory system independent of the initial Ceremony (“trusted setup”). More details here.

• Chainlink Staking v0.1 went live on December 8 and was filled on the same day. See below for what v0.1 enables and what is coming next. Read more about the initial Chainlink Staking roadmap here.

*This is far from being an exhaustive list. No financial advice.