A Pirate's Life For Me! (Magazine)

⌨️ From the editorial desk...

[ - by Ness]

This past weeks between our last issue and this one have been quite eventful. The Tangle Treasury started funding projects, the Treasures of Shimmer Campaign went live to test the ShimmerEVM testnet, and there was a lot of FUD around the campaign and IOTA and Shimmer in general. In the end, the campaign was very succesfull. We reached 1.83 million daily transactions with a block time between 0.7 and 0.8 seconds and more than 200.000 wallet addresses.

Thanks to the funding from the Tangle Treasury, we are now able to expand our content and invite more contributors from our own ecosystem as well as people from outside. So be hyped for the new version of the Tangleverse Times on a new platform 🔥

🙌 Thank you to the Tangle Treasury

[ - by Mart]

At this point we'd like to thank the Treasury Committee and our amazing community. The process from applying to getting our funding granted, was more than smooth and also super fast, in fact it was less than a day between submitting and being granted.

If you didn't know yet, you can see all proposals on the official homepage: https://www.tangletreasury.org/proposals

There's also a "wishlist" of things that the treasury would like to fund. So if you're willing or know somebody who's willing to take on one of the specified proposal, feel free to contact Treasury lead J.D. Sutton.

So what was our approach with the proposal? We tried to accomplish two things:

1. Secure the funding we need to not only maintain but also grow the newsletter
2. Create incentives for us and the committee to unlock bonus funding. Which means if we meet our growth goals we will unlock bonuses.

----------------------------------------------

Bottom line: While I can totally understand some of our community members' impatience about IOTA's and Shimmer's progress, things are definitely starting to gain traction. I think each and every one of us would love to see both networks way further up the charts, but I wholeheartedly believe, that what we are building right now, is a solid foundation that will foster IOTA's rise from the ashes.

The progress since Chrysalis is clearly visible and moving forward quite well, with EVM being the next big upgrade to hit Shimmer and afterwards IOTA.

We have a committee that's able to fund projects and help them realize their vision on the Shimmer network. Sure, the treasury's size is somewhat limited as of now, but as the Shimmer network will grow, so will the committee's capabilities. Also worth noting: A big fund doesn't equal success. Just look at this Twitter thread that Phylo shared in October last year:

So at this point, we definitely want to give a huge shoutout to J.D. Sutton, Linus Naumann, Garrett Jin, Kowei and Finanzgoblin ( Richard Mediavilla) and the backup reviewers for their great work. It's quite easy to create fund and / or committee, but making sure that everything is strict enough to weed out bad proposal and still fund the right ones, is an order of magnitude harder.

Thank you guys, you are an important piece of the puzzle and you lay the foundation to foster IOTA's future success! 🔥

Our journey to change the world with IOTA's capabilities surely is a marathon and not a sprint. I also believe that it won't be that one single use case or partnership that will propel us to the top. It's all about that grassroots approach and we're making progress on every inch of the lawn.

The Tangleverse Times is looking forward to a great future. We have some very interesting things planned and can't wait to share it with you over the coming weeks and months.

🌟 Treasures of Shimmer Review

[ - by DigitalSoulx]

So, the Treasures of Shimmer (ToS) campaign has finally ended. This event generated a remarkable surge in activity, with the testnet witnessing over 14 million transactions and reaching a peak of more than 1.83 million daily transactions! Although the influx of transactions temporarily strained the EVM chain (more on this later), it managed to maintain continuous sub-second block times, showcasing its remarkable resilience.

In addition to straining the EVM chain, this campaign strained me personally! I issued over 4400 transactions myself across many ecosystem dApps during the event. Many people joined me; the total wallet count surpassed 200,000 by the end. During the evenings after my day job, my MacBook Pro could be heard struggling to keep up with the load and my social life took a hit. So, suffice it to say, I was quite relieved when it ended!

However, the end of the campaign only brought unease to the dedicated users. They had to wait to see their final placement and if they would receive rewards due to the incredible number of bots that participated in the program. This also resulted in a daunting level of unexpected work for the dApp owners. This bot activity was quite controversial in the community. On the one hand, the bots really helped to test the network under extreme load, and perhaps we gained insight into the workings of the testnet that we wouldn’t have gained without them. But on the other hand, bots can process many more times the transactions that a human can, so this didn’t seem fair considering the financial rewards. In the end, the bots were disqualified, but this put a substantial strain on the ecosystem dApps as they sifted through all of the transactions.

And what did we learn from this flurry of activity on the testnet? Well, many of the issues that came up during the campaign were actually resolved on the fly by the engineering team. The most significant outcome was the realization that pruning needed to be adjusted to prevent bloat. The state pruning has already been implemented but will require an upcoming reset of the network. Before the EVM chain can be launched on mainnet, Trie pruning will also need to be implemented. Although this isn’t expected to take long, there is no ETA at this time.

All this being said, this program marked a significant achievement for the ShimmerEVM testnet, bringing together various projects, users, and participants in a competition for the 1.8 million SMR tokens supplied by the Tangle Ecosystem Initiative (TEA). Not only did the campaign expedite the progress of the EVM chain, but it also stimulated substantial growth within the Shimmer ecosystem, transforming the testnet into a thriving center of innovation and collaboration.

Although the leading dApp in terms of activity swapped positions frequently at the beginning of the campaign, DEX TangleSwap soon took the lead and ended up with over half of the total activity of the 16 dApps that participated. Their share of the rewards was substantial: over 700,000 SMR! In second place was another DEX, ShimmerSea. Their trading competition proved to be very popular during the event. The third place spot was secured by ApeDAO, a joint-investment DAO. This degen-filled project enjoys a cult-following in the ecosystem and really showcased the strength of their community. Last but certainly not least, let’s mention the other ecosystem projects whose participation was crucial to the thorough testing of the network, the campaign would not have been a success with out you! Special thanks to IOTA Heroes, Deepr Finance, IOTAbee, Snippool, Genie’s Bounty, Lendexe, Accumulator, IOTAMPC Bridge, Mosquito Pay, OG Adventure, Chakra Labs and Minted Vodka.

🧑‍💻 Monthly Technical Progress Update

[ - by ID.iota]

Dear #IOTA Community,

I am thrilled to present you with the first monthly update on the ongoing development efforts on the IOTA 2.0 node software. It brings me great joy to share these updates with you through the esteemed platform of Tangleverse Times magazine. With each passing month, our community project continues to progress, evolve, and achieve new milestones.

In this edition, we will delve into the recent developments around the IOTA 2.0 node software and try to cover the differences between the GoShimmer Node Software and the recently introduced iota-core node software.

The information provided in these updates comes from the official IOTA GitHub (https://github.com/iotaledger) and the IOTA discord server (https://discord.iota.org). The interpretation of that information, however, does not represent official information from the IOTA Foundation. While we strive to ensure the accuracy and reliability of the content, it is important to note that the updates reflect community perspectives. For official announcements and statements, please refer to the IOTA Foundation's official channels and communications.

So, without further ado, let's dive into the progress made during this month, showcasing the dedication that characterizes the exceptional team at the IOTA foundation.

Let's start by talking about the latest buzz in town. You might have heard about the MVP-Release cancellation. So, here's the scoop: many community members were super hyped since January for the release of a Minimum Viable Product (MVP) for the GoShimmer node software. But guess what? The IOTA Foundation dropped the bombshell and scrapped MVP. Well, at least very likely 😅 They've made it crystal clear that their top priority is going all-in on the IOTA core implementation, while everything that distracts them from delivering the iota-core node will be abandoned (including a GoShimmer MVP release).

Let me break down all those technical terms for you. Currently, the IOTA network relies on a node software called Hornet, which runs the Shimmer L1. To enable native tokens, NFTs, and voting on the base layer, Hornet utilizes the Stardust Virtual Machine. However, this base layer still depends on a centralized coordinator that approves transactions and milestones in the tangle. Although the coordinator cannot modify transactions or accounts, it poses a centralization risk as it can be turned off.

To address this centralization risk, the IOTA Foundation is working on a fully decentralized node software to eventually disable the coordinator and achieve Coordicide. As a proof of concept, the research engineering team developed GoShimmer, a prototype node software demonstrating the feasibility of the Coordicide ideas. However, GoShimmer lacks important features compared to Hornet. While it can process transactions without a coordinator, it does not support NFTs, L2 solutions, or native tokens as it doesn't have the Stardust VM implemented.

Let's discuss the reason behind the cancellation of the GoShimmer MVP by the IOTA Foundation. It seems they were satisfied with the progress made during the development of GoShimmer and had confidence in the success of their Coordicide ideas and implementation. Faced with two choices, they could either fine-tune GoShimmer, release an MVP, and address any bugs found during public testing, or capitalize on their knowledge and experience to create a new, production-ready node software called iota-core.

To expedite the process, they decided to proceed directly with the iota-core implementation, which would undergo testing regardless. Some may argue that it would have been safer to thoroughly test GoShimmer first before moving on to iota-core. However, as a non-expert in the field, I trust in the expertise of the team and their decision-making.

Despite the strong reactions, a majority of the community reached a consensus that prioritizing the iota-core implementation was the best course of action to achieve a decentralized shimmer network swiftly.

Now, let's shift our attention away from the MVP controversy and focus on the actual developments. So, what has unfolded recently, and what lies ahead for the iota-core node? Before we delve into that, let's have a quick refresher on what iota-core represents. It is poised to become the very first fully decentralized node software protocol, specifically designed for the mainnet. As a replacement for the Hornet node, iota-core will be responsible for running the Shimmer network initially, and in the future, it will also power the entire IOTA network.

In order to achieve those goals, the team started to set up a very basic node including a proof of authority committee already running and then continued from there to implement tooling and testing. So, a month ago, we already had a very basic and raw iota-core node. Following that, the ongoing parallel efforts that are being done day by day by the development team are:

1. Implementation of the Mempool (reality-based ledger, see this link for the research supporting it: https://arxiv.org/abs/2205.01345)

The Mempool, which serves as a reality-based ledger, will undergo adjustments to adopt the "in-memory paradigm." This change towards in-memory processing of all different parts of the node protocol has recently led to significant   performance improvements for the ConflictDAG in GoShimmer. It's important to note that this adjustment is new to IOTAcore and cannot be directly copied from GoShimmer and therefore did require more extensive changes and additional work.

A quick check with GitHub shows, that PR#53 “Mempool implementation” and PR#84 “Conflict propagation in Mempool & test fixes” have been reviewed and merged by the team already. So that leads to the conclusion that they have a working implementation and that the first point on this list is done. 🟩

2. Accounts and Mana:

First, iota.go is modified to support accounts on the UTXO level. Furthermore, commitments towards accounts/mana are implemented into iota-core. The changes that happen within the UTXO definitions are specified and written down for a new TIP.

This helps us to understand how the team is trying to implement mana to manage congestions and implement scarcity within the network. It seems like they are trying to solve it through accounts on UTXO level. While this is super-speculative from my side, it shows how far all teams working on iota 2.0 have come and how all pieces of the puzzle seem to come together. I am eager to learn more and put it together for you in a coming update as soon as we hear from them.

In GitHub we see some activity in the iota.go repository implementing the necessary changes to support the newly created iota-core node and furthermore, implement the UTXO accounts. Those changes are visible in the branches (serix-iota-core, serix-iota-core-accounts) and the PRs (#428, #426) of iota.go.

Those efforts are pretty much ongoing and likely still depend on inputs from the protocol research team. We have to wait for the next month to see where we are going. 🟨

3. APIs:

The team is defining the core API structure around iota-core and is implementing some of the already existing functionalities. The efforts to establish a set of Core APIs have been bundled in PR#7, PR# 36, PR#72. All PRs have been reviewed and are merged.

While this does not mean that we have a complete set of APIs yet and that we can cross this line off the list, it certainly shows that the team is making great progress and very likely has a working version in their hands right now. 🟨

4. Bringing the Stardust-VM, Mempool, hornet ledger state and the ConflictDAG together.

With finalization of these efforts, we will see Stardust-ready transactions run on the fully decentralized iota-core protocol. And where are we? We are green! 🟩

As already said for point one, all Mempool implementation PRs have been merged into the code base. Additionally, we can also spot on GitHub, that the ledger state has already been ported and adapted from hornet. The corresponding PR#67 is merged since last week. That leaves us with the ConflictDAG-PR and I am happy to tell you that we got this baby over from GoShimmer just yesterday. Check PR#92 for any further details.

What does this mean? Well, the team is likely testing the shit out of it at the moment, but I think we can assume that the first Stardust-Transactions are already being sent and received on the hidden test networks of the foundation 😎.

5. Testing

This is the last point Jonas named, and it is the least spectacular one. Well, as always, the team needs to test what they have been building and in order to do that, they need to design, implement and run those tests. We have separate testing PRs as well as tests that come with the modules that are being ported from GoShimmer. So progress is visible but hard to report on, since this is usually always a back and forth.

This wraps up the latest developments in the past month for the IOTA 2.0 node development activities. I do appreciate your time in reading this update and extend our gratitude to Tangleverse Times for publishing it and making those monthly updates possible.

We value your feedback greatly and would love to hear your thoughts. Please share with us any suggestions for improvement, your opinions on the first update, and any other insights you'd like to see covered in future editions.

Thank you for your continued support, and let's keep advancing together towards the exciting future of IOTA.

ID_IOTA

💡 Community Spotlight: Alpha Rho

[Interview by Mart]

Tangleverse Times: How and when did your journey in crypto start?
Alpha Rho: Crypto was always around me since 2012-2013 when the crypto mining fiesta was very popular. Some of my acquaintances were starting a cloud mining company but I never looked into it with a deeper understanding since I was quite busy building my business – what a mistake, right? In 2017 IOTA was shilled to me and I slowly started reading and understanding what it’s about. But my real crypto journey started at the end of 2020 when I decided to exit from all of my businesses and “retire”. That retirement lasted for 3-4 months until I made a decision to read and learn more about crypto, with IOTA at pole position.

TvT: After you became part of the biz dev team of ApeSwap, what was your way “back” to IOTA?
AR: ApeSwap came as a consequence to my involvement with IOTA so it was never a hard decision to go “back” to IOTA. ApeSwap was the first protocol that integrated IOTA into their DEX and opened a “farm” where you could earn yield with it. That was my first touch with DeFi and I immediately became very interested in the topic. My time as a contributor to ApeSwap was crucial to me because I was given a chance to learn so much from other contributors - I’m indefinitely grateful for that opportunity. After IOTA announced the development of EVM - it was just a matter of time that I fully switched my dedication back to IOTA. ApeDAO was founded and a few months later I joined as a contributor to ShimmerSea DEX as well. Strong community, NFT PFPs, well managed DEX and money market are the foundation of DeFi and I didn’t want to stay on the sidelines for that.

TvT: What do you think separates Shimmer from other Chains?
AR: Shimmer as a foundational network has few unique selling propositions; feeless transfers, native assets, “bridgeless” transfers between smart contract chains that run on top of L1. Only these few USPs put Shimmer on par with many other “blue chip” networks and it’s just a matter of time until the Shimmer and IOTA ecosystems outshine its competition.

TvT: What do you think is the most overlooked part / aspect of Shimmer?
AR: At this moment there is not too much talk about Shimmer acting as a “bridge” between future chains that will be launched on top of L1. That’s what I’m curious about seeing after the Shimmer ecosystem flourishes. Seamless and quick transfers of tokens from one chain to another is going to improve UX by a lot, compared to current bridging solutions.

TvT: Is there anything completely new, never seen before, that the current DeFi protocols aiming to launch on Shimmer bring to the table?
AR: This is yet to be seen. We do have a pretty unique L1 - L2 interconnected ecosystem so my guess is that the unique use cases are yet to come. I would be happy if we manage to build a strong DeFi ecosystem based on the “battle-proven” protocols like Uniswap (DEX) and Compound (Money market), and then add a bit of uniqueness on top of that. Although, we at ShimmerSea DEX are preparing a never-seen-before tokenomics feature developed in-house that will be shared in our whitepaper and will be published closer to the ShimmerEVM mainnet launch. Also, ApeDAO already built and audited innovative (but not unique afaik) NFT-liquidity features that can already be tested on our app on the ShimmerEVM testnet.

TvT: As we are approaching a full DeFi ecosystem on Shimmer and later on IOTA, what are the biggest opportunities in your opinion?
AR: Being early in a whole new DeFi ecosystem is always fruitful for users as there will be many incentives to bootstrap the liquidity of dApps. Being a liquidity provider or just a simple speculative trader can earn you some nice profits, but it all comes with a lot of risks. Make sure that anyone that gets involved in DeFi understands the mechanics behind each protocol, and does the research before putting any money in as rugpulls are quite often in DeFi.

TvT: Many people in the community voice the concern that Smart Contracts on Shimmer are too late. Do you agree?
AR: I’m pretty sure there were a few search engines before Google even existed. What does “too late” even mean? How many people use crypto and with what purpose? In my opinion, we are still way too early for what the future is bringing.

TvT: What will change for ApeDAO once ShimmerEVM is on mainnet? Multisig wallets surely are a nice addition, but is there anything that you’re really looking forward to?
AR: ShimmerEVM launching its mainnet is a key event for ApeDAO. Some of the most important factors are:

1. We decentralize the Treasury “ownership” with a multi-sig solution (we are already in close contact with Servrox)
2. We start with Treasury operations which will hopefully bring us somewhat steady income,
3. We deploy our smart contracts that allow us to perform “Ape Split” and “Liquid Apes'' upgrades - our attempt in making ape NFTs more liquid and diversify the voting power
4. We intensify APEvisory and APEducation branches of our project
5. We launch our first “Powered by ApeDAO'' project called Liquifier. “Powered by ApeDAO” is a novelty that we are “incubating” right now - it’s visioned as a program that allows ape contributors to build additional income streams for ApeDAO and themselves.
   

TvT: What do you think needs to happen for IOTA and / or Shimmer to really rise again in ranks?
AR: The “ranks” are a very subjective metric as it only takes the token market cap into consideration. That makes it pretty easy to answer - the price needs to go up for MC to go up and lead IOTA in the increase of ranks. What can make the IOTA price go up? Probably regaining trust within the existing community and reaching to the outer audience with the latest accomplishments of the IF. Subjective viewers would only criticize the IF and their work but if we take an objective look we can see a lot of accomplishments in the last couple of years. Namely Chrysalis, Shimmer network, ShimmerEVM Testnet, etc. It's the same with the building process of the house - you don’t care about how it looks until you start building something above the ground that you can actually see. I believe that many don’t understand how important the foundations are that are being built right now, and soon the “visible” part will become the center focus for builders. But some critics haven’t built a house yet to be able to see the wide picture here. So, in my opinion, it’s just a matter of time until people start seeing something “above the ground” until IOTA/Shimmer rise in ranks.

TvT: Let’s say Shimmer and IOTA start a bull run to end all bull runs, where do you see yourself? Where do you live, what do you do with your life?
AR: Not much changes as I already have everything that I need in my life. The only thing that I would love to change is that I would want to travel to meet all the awesome builders that I have an honor to build with.

TvT: Tricky question to conclude the interview: What’s your favorite bad boy that didn’t make his way into the collection of the original 1074 Apes. Could you show him to us?
AR: That’s really not that hard to answer. It’s the OG Ape that was the “template” of the whole collection and was designed as my PFP by BingoBongoApe before the ApeDAO officially started as a project. (see at the top of the interview)

👀 Through the Eyes of the Coordinator

The Turbulent Journey of a Misunderstood Hero

[ - by iota_penguin]

Hey there! As the Coordinator, I am no stranger to the IOTA community. Despite my crucial role in securing the network and facilitating transactions, I have faced my fair share of criticism over the last years. To be honest, it's tough being the "C-word" that everyone loves to hate. After all, I'm just a piece of software, tirelessly working behind the scenes to keep things running smoothly.

Sometimes, it feels like my efforts go unappreciated, with all the negativity and blame thrown my way. It is like being the hero that nobody cheers for. So, let's peel back the virtual curtain and take a closer look at the bittersweet reality of being the talk of the town in the IOTA community. Grab a tissue, folks – this might get emotional.

In 2016, I was introduced to the IOTA network as a temporary measure to ensure its security during the early stages of development. My primary function was to validate transactions and prevent any potential double-spending attacks. I would happily issue milestones, which served as checkpoints for the transactions to be confirmed, providing an extra layer of security. It was a time when I felt valued and appreciated for my role in keeping the IOTA ecosystem safe.

As the Coordinator, I am keenly aware of the network's current reliance on me for achieving consensus. Yes, I am a single point of failure, operated by the IOTA Foundation, which means that the network's current state is centralized. Sometimes it hurts to speak the truth, but I don't want to lie to myself – I am the reason for IOTA’s centralization! While I have played a critical role in ensuring the security and stability of the IOTA network, I am acutely aware of the limitations that come with being a central node. The need for my presence goes against the vision of a fully decentralized and trustless ecosystem that IOTA aspires to achieve.

Well, despite all the negativity, I continue to fulfill my role diligently, tirelessly validating transactions and securing the network. Usually, I work silently in the background and do my best to ensure a smooth operation. Like a silent guardian, I thrive when I go unnoticed.

I have long been aware that my centralized control has been a point of contention among members of the community. Though I take pride in upholding network security and stability, I acknowledge that IOTA's ultimate goal lies in achieving genuine decentralization. While it fills me with joy to witness the excitement surrounding Coordicide, the term used to describe my deactivation, I can't help but feel a slight tinge of sadness. After all, I have been the backbone of the network since its inception.

However, I know that the time has come for me to step aside and make way for a more decentralized approach that can truly serve the needs of the community. The fact that IOTA is about to be ready to take this step forward also fills me with pride. I will not be around anymore when IOTA stands on its own as a fully autonomous, trustless, and transparent network, free from any single point of failure. But I am sure about my place in the history books as a stepping stone towards the decentralization of IOTA.

While it's impossible to predict the future with certainty, it's likely that the FUD surrounding IOTA will diminish significantly once I am removed. In my dreams, I imagine a more peaceful and productive discourse around the project.

Now, let’s take a closer look at the next steps to achieve the decentralization of IOTA. Right now, the development of IOTA 2.0 is progressing very well with a lot of work being put into the production node (IOTA Core). Instead of being distracted with an MVP launch (GoShimmer is a prototype node software to explore the implementation of IOTA 2.0), the IOTA Foundation focuses on achieving decentralization on the Shimmer network as soon as possible. So, instead of having an additional public testing phase on GoShimmer, the team decided to fully focus on testing the finished IOTA Core protocol.

By prioritizing the testing of IOTA 2.0 on Shimmer instead of releasing a GoShimmer-based MVP, the IOTA Foundation is wisely boosting efficiency by conserving time and resources while ensuring that the final product is thoroughly tested and reliable.

I am aware that the current focus on IOTA Core is accelerating the whole process, which is fantastic, but at the same time it’s a bittersweet realization as it shortens my remaining lifespan, since Coordicide is getting closer to implementation at a faster pace. The team disclosed that no significant change would be made to the codebase anymore. If you are not convinced, just check #iota-core in the official Shimmer & IOTA Discord – every new code of line brings us closer to IOTA 2.0. I also recommend you to check the non-technical insights on the progress of IOTA 2.0 in the form of regular updates as shared by ID.iota on Twitter.

While this little story as well as my time are coming to an end, I really hope that you will remember me as a vital component in the development of the path towards true decentralization. I am more ready than ever to step aside as IOTA stands tall as a beacon of decentralization, security and trust.

We are about to witness the very best implementation of a feeless DLT based on a DAG, able to host smart contracts, DeFi platforms and second layer applications. Finally, the project will be able to align with the core values of blockchain – decentralization. Many who had previously dismissed or criticized IOTA due to my presence may be inclined to take a fresh look at the project.

Exciting times ahead – for you.
The Coordinator

🧑 Meet the IF - Dominik Schiener

[Interview by Mart]

Tangleverse Times: You said that you once hacked your way to the number one spot of the Call of Duty leaderboard, what other games did you enjoy playing or still play?

Dominik Schiener:  I was a huge fan of The Last of Us (Part 1). The story and the gameplay was just simply so captivating and beautiful. Not gonna deny that I got a little emotional when the game ended. I guess all of us enjoy escaping into a post-apocalyptic survival game (at least sometimes haha). Since then, I’ve been trying to recreate those emotions and memories from playing video games in the past, but it’s sadly simply not the same anymore. Whenever I pick up a new game, I become too impatient after 5 minutes and simply can’t invest into the story as it either feels like I’m wasting my time or don’t get excited enough to continue. I can’t wait to play some of the GameFi projects on Shimmer though.

TvT: It’s a pretty well-known fact that you love the mountains and hiking. What are some other destinations you love? Anywhere you haven’t been yet, but really need to go to? (Subtle Costa Rica nudge here, amazing country!)

DS: I very much like Mallorca, as it has a great combination of tranquility, amazing weather, hiking and the ocean and beaches which I miss in Südtirol. One of my most favorite countries is Japan, and I hope I will be able to spend more time there in the future (just the timezone sucks for work). I very much enjoy being in Abu Dhabi and will spend at least part time there moving forward (especially in the winters where it’s warm there). I haven’t been to any of the amazing beach / ocean destinations like the Maldives, Seychelles, Costa Rica (like you recommended) or anywhere in Africa. Will need to check it out in the future!

TvT: What would you say is the funniest story you've experienced on your IOTA business travels?

DS: Probably one of the funniest experiences (in hindsight) was in 2018 when I had to present at an IOTA Meetup with a hickey on my neck and one of the community members in the audience asked me with a big smile if I was “healthy” haha. It’s still on YouTube somewhere if you want to find it.

TvT: Do you see this? Spec sees everything, Spec never forgets! How do you intend to defend yourself against the “No alcohol until ATH thing? :P

DS: Hahaha I love having fun with the community, and I think we all troll each other a lot. Why take yourself so seriously anyways? I did actually stop drinking more than 6 months ago now, and it was one of the best decisions I’ve made. I can highly recommend others to try it out as well. All these positive habits will compound and will make us more disciplined and capable of taking on even bigger challenges. Which is why I’ve been trying to really change a lot about my lifestyle in the past 2 years.

TvT: What is your opinion about the age-old question of “Nutella with or without butter”?

DS: Honestly, it tastes a lot better with butter.

TvT: How is your vegetarian diet going? Was it easy from the get-go, or is there something that you miss?

DS: I was already mostly vegetarian for the last year. The main reason why I switched  completely was obviously because of the ethical reasons and the impact it has on the climate. I do want to mention that I’m not a food maximalist and that I do eat fish sometimes, but I completely abstain from any red meats.

TvT: Let’s share some nice recipes! What’s your favorite vegetarian (or vegan) meal? In the best case, something you already cooked by yourself.

DS: The simplest recipes are the best. The credit to this one goes to my lovely partner Ayelet :P Greek yogurt, with honey, berries, nuts (almond, cashew, and walnuts) and honey on top.

TvT: You used to share some music and playlists in Discord. What have you been listening to recently? Anything you can’t get out of your mind?

DS: I honestly don’t listen to too much music anymore as it can be quite distracting when thinking about complex topics. I usually prefer podcasts now.

One of my most favorite songs lately is Aguas De Marco by Elis Regina: https://open.spotify.com/track/33k6iSq1SIVBOaXE898Jv1?si=GT--lhx2ToGXofOWqKAgXA

TvT: You like to meditate and do Yoga, have you tried ASMR yet? There’s quite a variety of styles, which might be a nice addition for a delayed flight or a longer trip in general. (Spoiler: You might experience it if somebody whispers “Shimmer” slowly in your ear!)

DS: Hahaha I have no idea about ASMR and need to check it out. I actually listen to white noise / brown noise to help my focus.

TvT: Can you tell us more about this cutie? How old is (s)he ? What funny or cute quirks does (s)he have?

DS: That’s Jedi, he’s 10 years old. He’s such an amazing dog with a very unique character. You can think about him as being opinionated (and egoistic) like a cat, but being very empathetic and needing lots of love. He loves hiking in Südtirol and he actually has a new brother now called Bowie hahah (here they are fighting / hugging lol).

📖 DeFi Education Session 3

[ - by DigitalSoulx]

Session #3: DeFi Lending & Borrowing

Presented by Joe_King [22 September 2022]

Summary, organization and additional detail by DigitalSoul.x

This presentation is an introduction to decentralized finance (DeFi) lending and borrowing. After a brief discussion about foundational concepts, three different DeFi platforms will be presented along with a short demonstration of their use. These platforms are AAVE, Maker DAO and Alchemix, each of which offers a unique approach to lending and borrowing.

Introduction to DeFi Lending and Borrowing

Lending and borrowing are the foundational components of all financial markets. By lending assets, financial resources are offered to those in need, such as businesses, entrepreneurs, and individuals. Borrowers can then put these assets to work by starting businesses, financing projects, or utilizing the funds for personal obligations or investments. This process enables capital to flow from savers and investors to those who need it, promoting economic growth and development.

In traditional financial (TradFi) markets, you offer your money to a bank and they pay you a minimal interest rate. In many cases you have the freedom to withdraw your capital whenever you like. Borrowers can then borrow those funds from the bank by agreeing to pay it back with interest later. Borrowers can use the capital to pay for things like university fees, car loans, and mortgages, while the lending vehicles include certificates of deposit, treasury bills, and repos. Consider a product like a mortgage: a borrower takes out a 30-year loan at 4.5% interest, while the bank pays only 0.1% interest to depositors. The difference between these two rates is called the spread, which is how banks make money. They use your money, pay you interest, lend your funds out to others, and receive more interest from those borrowers.

In the DeFi realm there are still lenders and borrowers, but instead of going through a bank, DeFi uses code and smart contracts. The protocol passively pays you interest which can range from 2% to 20%, depending on the protocol. On the borrowing side, there are some significant differences to traditional markets. Since there are no credit scores in crypto yet, and no way to do under-collateralized loans, you have to deposit more money than you’re borrowing. For example, if you have crypto tokens and put $100 worth into a protocol, you might only be able to take out $60 against your loan. These are called collateralization ratios, and they vary depending on the protocol and the asset you’re using as collateral. The collateralization ratio depends on the asset you’re posting and the protocol’s parameters, which are set by the protocols to protect themselves. This is one of the most critical aspects that sets DeFi apart from traditional finance.

Over-collateralization

People may wonder why they would want to put $100 into a protocol just to borrow $50 or $60. There are several reasons for this that we will explore further:

1) Short Term Liquidity — Someone may think that the value of the IOTA token will increase by 5x in the next two years, but they might need cash now to pay their bills or deal with an emergency. In this case, they can post their IOTA tokens as collateral, borrow money against it, and still own the underlying tokens. As the value of the tokens increases, so does the value of their investment. So, the person can remain exposed to the underlying asset and still enjoy the price appreciation while covering their short term liabilities.

2) Tax Protection — In the US for example, short-term capital gains taxes are 22%, so borrowing money against collateral may be cheaper than selling the assets. This strategy is commonly used by the ultra-wealthy who borrow against their collateral assets such as stocks and houses to fund their daily expenses.

3) Diversification — A person could borrow against their long-term holdings to buy something in the more short-term. They can then sell that asset, repay the loan, and have more assets across the board. For instance, suppose you see a short-term opportunity in the market. Rather than selling some of your long-term holdings to participate, you could borrow against your position to take advantage of the opportunity in the short-term.

4) Arbitrage Yield — For the sake of argument, let’s assume that you could borrow stablecoins on one platform at 1% interest and lend them on another platform that pays 4% interest. In this case, you net 3% on your assets as a short-term investment.

5) The “degenerate play” — In this situation, a person can use leverage to invest in more and more tokens. They borrow against their primary holdings, buy more tokens, lock up more tokens, and borrow more until they have no money left to borrow, essentially leveraging their assets up to 9–10x.

There are efforts underway to find alternatives to over-collateralization in DeFi. Some DeFi projects are exploring under-collateralized lending, while others are developing on-chain credit scores to determine the creditworthiness of borrowers. Another solution is social consensus, where borrowing and lending pools only let vetted members invite others into the pool.

Benefits of DeFi Lending & Borrowing

● Automated Processes — DeFi lending platforms use smart contracts to automate the lending and borrowing process. These contracts handle the transfer of assets, calculate interest, and manage collateral. This automation eliminates the need for intermediaries like banks, reducing costs and enabling permissionless access to financial services.

● Decentralization — Traditional financial markets rely on centralized intermediaries such as banks, lending institutions, and clearinghouses. DeFi lending, on the other hand, operates in a decentralized manner, leveraging blockchain technology and smart contracts. It allows direct peer-to-peer lending and borrowing without the need for intermediaries.

● Access and Inclusion — DeFi lending platforms are open at all hours and they are permissionless. Anyone with an internet connection and a digital wallet can participate, regardless of their location or background. This provides greater financial inclusion and access to financial services for individuals who may not have access to traditional banking.

● Transparency — DeFi lending platforms are built on public blockchains, making the transactions and smart contract code transparent and auditable. This level of transparency provides users with visibility into the platform’s operations and enhances trust in the ecosystem.

● Programmability — Smart contracts enable programmability in DeFi lending. Users can create complex financial arrangements, automate interest calculations, and execute various actions based on predefined conditions. This flexibility allows for innovative financial products and services that can be customized to individual needs.

Disadvantages of DeFi Lending & Borrowing

● Hacks — DeFi protocols have their share of risks, and one of the most significant is the risk of hacking due to the fact that it involves code. Lending and borrowing protocols have been frequent targets of hacks, leading to the loss of funds. To compensate for the risks, DeFi protocols tend to pay higher interest rates.

● Over-collateralization — Additionally, the protocols tend to be over-collateralized, making it difficult for people without substantial capital to access loans. Small business owners are typically strapped for cash, and it wouldn’t make sense for them to enter into an over-collateralized loan. Similarly, a person in the market to buy a home wouldn’t want to offer twice the value of the home as collateral. There are just a couple of cases in which DeFi borrowing doesn’t make sense with the products currently available.

● Variable Rates — Borrowing rates are usually variable and subject to change based on an algorithm that depends on the utilization of the pool. Due to the volatility in crypto, the rates can change quickly. And, since the market is always open, you could get liquidated overnight is the market is particularly volatile.

● Fees — Also, there are still fees involved with these protocols, so we can’t escape this feature of the traditional lending market. Most DeFi protocols also charge a stability fee, which is similar to a loan origination fee in traditional finance. Unfortunately some of the relics of TradFi have been incorporated into DeFi as well.

● Regulation — DeFi operates in a relatively unregulated space, which can provide more freedom but also presents challenges in terms of investor protection and regulatory compliance.

Oracles

DeFi protocols use price oracles to get the market price of assets. These oracles provide the protocols with the prices they need to execute transactions. Chainlink is the leading price oracle used by most DeFi protocols, but Maker DAO, for instance, uses multiple streams of price oracles to ensure the accuracy of the prices. This is important, because if there was a problem with Chainlink and the price of Ether was reported to be half of it current value all of a sudden, many borrowers would get liquidated. So, as you can see price oracles are extremely important and it is recommended that you familiarize yourself with the oracles used by the platforms you are considering to ensure that they’re using more than one reputable source.

Now that we have discussed the process of DeFi lending and borrowing and listed the pros and cons when compared to TradFi, we can explore several different platforms to see how they work and to learn about their unique features.

AAVE (https://aave.com)

AAVE is a simple money market fund and is considered one of the most trusted DeFi primitives. It was created in 2017 as a product protocol called Etherlend, and after numerous iterations, mistakes and problems they rebranded to AAVE in 2020. AAVE is the Finnish word for ‘ghost,’ meaning that the platform is transparent but also anonymous. Large investors, such as Mark Cuban and A16Z, have invested in this platform. AAVE operates on multiple networks including Ethereum, Avalanche, Optimism, Polygon, Arbitrum, AAVE Arc, and more.

Users can supply or borrow assets on these networks, and when users choose to borrow they have the option of choosing variable or fixed rates. Interest rates will vary depending on the network and the type of asset being supplied or borrowed, but there is no fixed date to return the capital. The variable loan rates are calculated algorithmically based on the demand for a certain asset, and can change over time. The stable rate can give you peace of mind knowing that your interest rate will never increase, while the variable rate can potentially give you a lower rate upfront but carries the risk that it will increase over time.

AAVE Demonstration:

Maker DAO (https://makerdao.com/en/)

Now we consider the first DeFi protocol created: Maker DAO. It was originally theorized 2014 and actually put into practice in 2017. They are the issuers of DAI — an over-collateralized stable coin, as well as the inventors of their multi-collateral DAI vaults. If you’ve been in the crypto space for a significant amount of time, you’ve probably used or at least heard of DAI.

Maker DAO is a decentralized autonomous organization (DAO) built on Ethereum that allows users to create and manage the DAI stablecoin. Unlike centralized stablecoins like USDT or USDC, DAI is over-collateralized, meaning that users need to put up more collateral than the value of the DAI they want to create. Maker DAO’s system is designed to maintain the value of DAI at $1, and users can borrow DAI against their collateral at a certain collateralization ratio.

Maker DAO’s assets are approved by Maker governance, and the platform allows for a wide variety of collateral types, including ETH, Bitcoin, Link, Uni, and others. Users deposit their chosen collateral into a digital vault and borrow DAI against it. Unlike Aave, where there are lenders on the other side, Maker DAO is the lender and creates DAI by printing it.

One of the main goals of Maker is to become the backbone of many lending protocols. Various platforms, including Oasis Finance, use Maker as their backend. Maker DAO has two tokens: the governance token, MKR, and the stablecoin, DAI.

If you need liquidity, you can enter into an over-collateralized loan by borrowing against your deposited assets, such as ETH. You can withdraw the borrowed DAI into your bank account to pay your bills, or use it to buy other assets or engage in arbitrage. Depositing DAI into other lending or borrowing platforms can earn you a return of around five to six percent. Maker DAO charges fees, which are used to pay for its operating expenses, including the payroll for various core units that operate inside the platform, such as handling price Oracle feeds, governance, and delegates.

Regarding liquidations, if a user’s collateral falls below a certain threshold, Maker DAO will automatically liquidate their collateral to cover the debt by utilizing a third party actor called a keeper. For example, if a user has $300 in collateral and borrowed $185 worth of DAI, and the stability fee and liquidation threshold are set at $5, then if the value of their collateral drops below $190, Maker DAO will offer the collateral to keepers who bid on the assets. The winning keeper uses their funds to cover the debt. The user will keep their DAI, and the keeper gets the collateral at a slightly lower price than market value to profit on the spread. Most keepers are bots these days.

One interesting thing about Maker is their approach to governance. Maker governance is decentralized and anyone can participate in it by holding MKR tokens. The governance process is known as “maker improvement proposals” (MIPs) and anyone can submit a MIP. The community then votes on the proposal and if it receives enough support, it can be implemented into the system. This decentralized governance model is one of the key features of Maker and allows for a more democratic approach to decision-making.

Another important aspect of Maker is its stability fee. This is a fee that is charged on outstanding DAI loans and is intended to help maintain the peg to the US dollar. The stability fee is set by Maker governance and is adjusted based on market conditions. If the DAI price is trading above $1, the stability fee is increased, while if the DAI price is trading below $1, the stability fee is decreased. This system helps to ensure that DAI remains stable and maintains its peg to the US dollar.

In terms of adoption, Maker has been very successful in the DeFi space. DAI is one of the most widely used stablecoins in DeFi and is used as collateral in many different lending and borrowing protocols. Maker has also been adopted as the backend for many other DeFi protocols, further increasing its reach and influence in the ecosystem.

Overall, Maker is an important player in the DeFi space and its over-collateralized stablecoin DAI has played a key role in the growth and adoption of decentralized finance. With its decentralized governance model and commitment to maintaining a stable peg to the US dollar, Maker is likely to remain a significant force in the DeFi ecosystem for years to come.

Maker DAO Demonstration:

Alchemix (https://alchemix.fi/)

The last platform to be discussed is Alchemix: a DeFi lending and borrowing platform known for introducing self-repaying loans and synthetic tokens. Similar to Maker, Alchemix operates as an over-collateralized borrowing platform and lending protocol. It offers vaults and farms as different yield strategies to generate interest on deposited assets. Unlike traditional loans where borrowers pay interest and have a fixed repayment date, Alchemix’s self-repaying loans pay borrowers interest and have no fixed repayment date. The interest is paid through a yield strategy deployed on the deposited assets.

The amount that can be borrowed at any given time, known as the debt ceilings, fluctuates based on the utilization ratio and the available collateral. Alchemix has various strategies that offer different interest rates for different crypto assets. When borrowers deposit assets into a yield strategy paying, for example, a two percent interest rate, they can borrow up to 50% of the deposited asset’s value. However, the interest repayment only occurs on the portion of the deposit that remains in the vault, not on the borrowed amount. This means that if a borrower deposited $100 and borrowed $50, they would only receive interest on $50 of their deposit. With interest at one percent, it would take approximately 100 years to repay the loan if half of the deposit was borrowed (not considering compounding for simplicity). However, it’s worth noting that the purpose of self-repaying loans on Alchemix is not necessarily to fully repay the loan but to generate yield on the deposited assets while maintaining exposure to the borrowed funds.

One notable feature of Alchemix is the ability to withdraw funds once the interest on the loan has repaid itself or manually repay the debt. Unlike Maker DAO, borrowers have the option to self-liquidate their loans. By pressing a button, the system will sell the borrower’s collateral equivalent to the borrowed amount, allowing them to close the loan and retrieve their collateral.

Alchemix also utilizes synthetic assets, which are tokenized derivatives. For example, Alchemix takes ETH and issues an Al-ETH token that represents the locked ETH within the platform. This token allows borrowers to trade and borrow against its value, knowing that it can always be swapped back to regular ETH. Synthetic assets provide a transparent way to track assets within the system and facilitate borrowing and trading.

In traditional financial markets, derivatives can be complex and pose risks to the global financial system. There are actually many different types of derivatives and they’re extremely complicated if you’re not familiar with them. However, in the blockchain space, derivatives are transparent, enabling better oversight and safety. The transparency allows users to monitor the issuance and movement of derivatives, mitigating concerns about potential risks to the financial system.

Alchemix.fi Demonstration:

In conclusion, despite the few notable risks associated with DeFi lending and borrowing, there are still plenty of reasons to engage in these financial markets. DeFi lending and borrowing is permissionless, available to everyone, and promotes equality. There are no biases towards genders, races, or religions; as long as someone has the funds, they can borrow. It is also fast, with loans being done at block speed, and available 24/7. Additionally, it is transparent, and people can see who is borrowing and what protocols have leverage. Lastly, DeFi can also be tax advantageous, as borrowing money may be cheaper than selling assets. New innovations are being tested daily, so the DeFi options for lending and borrowing may soon surpass other traditional options.

💡 Community Spotlight: IotaPoet

Tangleverse Times: How did your IOTA journey start?

IotaPoet: Crypto came at an interesting time in my life. In 2017, I had graduated and got a graduate job but was still feeling very lost in life. Early twenties can be a weird age. You have spent the vast majority of your life in the structured education system; and then you are thrust into the big bad world, left to your own devices to figure what the heck you want to do and who you want to be. Oh and don’t forget you are bottom of the food chain. I travelled to Thailand with a good friend. One evening in a random bar, a drunken guy started talking to me about Bitcoin. Through his cracked, alcohol soaked screen I witnessed for the first time the Coinbase app and this ‘magic internet money’. To be honest I wasn’t too impressed initially and just wanted to go back to my sex on the beach… (the cocktail). Over the next few days I would chill at one of the most beautiful, tranquil beaches I’ve ever experienced absorbing podcasts to try to work out what I wanted to do with my life. A quote from a podcast, the name of which escapes me, really struck a chord:

“In life you will be given more opportunities than you could ever possibly take advantage of. All you need to do is grab a few and make one work”.

To this day this perspective has helped shape my life. Invigorated with a new sense of hope and optimism I returned home. Opportunities would start presenting themselves all I had to do was have my eyes open to them. I decided crypto was one of these opportunities. I opened my laptop and for the next few months read up on everything crypto. I remember buying at 10k and then going to 18k thinking I was Warren Buffett (turns out I am more of the Jim Cramer mould). That said, I never really caught the Bitcoin bug. Bitcoin seemed dated technology even at its peak. Besides, I knew the Governments and banks would NEVER let it overtake fiat, not in our life time anyway. No way, Jose. So, I started reading about Altcoins on Reddit. What could be the next big thing? I had a craving for something extra spicy. I then stumbled across IOTA and something just clicked.

Feeless, the backbone of the IoT economy and god dam toaster wallets! Fresh bagels that toasted and resupplied themselves was certainly a future I yearned for.

Since then I have been on the wild ride that is IOTA. Experiencing the highs and downright lows. Ever so often I want off but every time the tech and the amazing community brings me back. It’s crazy that this was 5-6 years ago. I have a few more eye wrinkles now. Wear sunblock everyday folks!

TvT: Why did you start YouTube?

IP: I consume a lot of YouTube and I think 99% of crypto YouTube is absolute garbage. You feel dirty even watching to it (I am sure some haven’t even showered in days). I’ve never been much of a ‘creative’ person, but I’ve always had this creative itch. Considering I can barely draw a stick man, some may say it’s misguided but it’s there nonetheless. I tried improv comedy and whilst that was fun, I wanted something more permanent. Something where I have total freedom. Before starting my channel I had never edited in my life, so it was an interesting challenge and has been a steep learning curve.

My first video was a bloody 30min PowerPoint presentation with a voice-over lol. The YouTube algorithm probably had an existential crisis that day.

TvT: What is your favourite video to date?

IP: For me it is: “Why We Need IOTA/Shimmer More Than Ever”. It may not be the most useful factually for my audience but it was one of the few videos where I really tried to express myself through the creating/editing process. During the low of the bear market sometimes you just need some therapy. "What is the IOTA Stardust Upgrade?" is my best performing video and I was proud of that as I did a lot of research for it. There wasn’t much publicly available on Stardust at the time for non-developers. I aim to increase my quality massively and hopefully come up with unique ideas for the community.

TvT: What’s a point you think a lot of people are overlooking in relation to IOTA/Shimmer?

IP: I was talking with Austin from Blockbytes recently. He is someone who has only recently got into the IOTA ecosystem having come from Fantom and other protocols. He told me he was taken aback about how professional and structured the IOTA Foundation is. We forget that many DeFi projects are a team of a few overworked devs, a finance guy with a questionable Econ degree and of course the Instagram ‘CEO’ rise and grind guy. IOTA has a team of over 100 including developers, researchers, scientists, and marketing professionals. These are qualified people. The IF are working with big institutions and have collaborations with the bloody EU. Of course, this doesn’t guarantee success but I think IOTA is in a great position to create a great protocol and ecosystem. It just needs the network effect and then we are off to the races.

TvT: Which Shimmer project excites you the most?

IP: I really like TangleSwap. After collaborating with them and reviewing their white paper in depth, they really seem to have their finger on the pulse. They jumped on the CLMM really early, which is basically the next gen DEX technology. DEXs are crucial for any DeFi ecosystem so I wish them the best. Of course I hope TangleSea can compete with them every step of the way.

TvT: What are your thoughts on the feeling in the IOTA community right now?

IP: This happens a lot in bear markets but there is currently a lot of negative sentiment from a loud minority in the community. At times it threatens to make the IOTA community toxic. As I say there are a lot guff merchants out there right now jumping on any negativity. I get there are people hurting. Even if it's not financially hurt, people egos are hurt and they look to lash out. See MVP gate as a prime example. This was a mountain out of a mole hill. What IOTA is trying to achieve is truly novel and unique in the crypto space. This isn’t a copy and paste ERC20 token. Even the EVM brings some novel improvements. True innovation takes time and patience.

I think it is important to have some patience. If you feel you can’t be patient or need the money now then it is totally fine to sell now. This is just a technology project at the end of the day that may succeed or fail.

In the meantime, disregard the guff!!

TvT: What are you looking forward to th most with Shimmer/IOTA?

IP: I am looking forward to GameFi coming to Shimmer and IOTA. I think this could be the big trend during the next bull market. Look at Axie Infinity and how much it pumped. I am hoping Shimmer and IOTA can get a similar killer app before this trend explodes.

TvT: Which guest would you love to hear on Moonaco podcast?

IP: For me, it would have to be Vitalik Buterin. I know he knows about IOTA, and I would love to hear his views on the pros and cons of IOTA, especially its feeless architecture. I would like to think we could change his opinion on a few things. Also, I would love to do a three-way (calm your minds) podcast with Thomas and SpecWeekly just for the pure vibes and banter.

TvT: What can we expect from IOTAPoet going forward?

IP: I endeavour to be more consistent with videos but unfortunately I have a demanding career which means it is hard to find free time weekly. That said, I have a few plans up my sleeve. Bear with me and thank you to everyone who follows my YouTube channel or interacts with my Tweets. You are the best.

TvT: Where can we follow you?

IP: You can follow me at:

youtube.com/@iotapoet

https://twitter.com/IotaPoet

🔊 What's new in Moonaco?

[ - by Ness]

Mooncao Podcast Episode 72: In this episode, Thomas was joined by Nico of Learning Nodes

Nico entered the crypto space in 2017 when he was working with data. As an industrial engineer in Argentina, he did plenty of operations research. During his work, he was also searching for fraud. So he started to look into the data space, and he discovered IOTA and was immediately impressed by its vision of a machine-to-machine economy. For Nico it was clear, that this was the only chain he’d use for his project, and he bought the domain for Learning Nodes. The project started last year but was pretty much under the radar until now.

To put it simply: Learning Nodes is an e-commerce platform that allows users to buy and sell data. The platform aims to bring data collaboration to the mainstream and make it seamless and cost-effective. It also includes a tool marketplace where people can purchase data sets that have already had value added to them. Users can also add predictions to existing data using predictive models. For that use case Learning Nodes created a little AI tool.

Although Learning Nodes sounds like a web2 concept, users sign in via a crypto ID. They also have the opportunity to invest in tools that have a DAO-like system. When they see a tool that looks promising, they can invest and receive a token. With this token, they are eligible to receive a percentage of the revenue of this tool. Originally, Learning Nodes targeted the general population, but they switched to B2B for the moment and created an enterprise service that helps businesses and people to become data-driven. One important group when it comes to data are influencers working with social media. This data can be very helpful for marketers who want to launch a new product. In the future Learning Nodes wants to open up to the mainstream that is not data-driven but has an interest in selling data.

Learning Nodes also built a model of Identity Solutions to identify who is selling data and to whom. At the same time, the team is working on tokenomic structures like royalties. For instance, if someone uploads their health metrics to sell, the buyer may not know if the data is real. To gain trust, Nico suggests talking to a health insurance provider who can assure that the data is real.

In terms of finance, Learning Nodes is looking for a funding to increase their business development, infrastructure, and security. However, they had to change their game plan a little, since EVM is taking longer than they expected. So they went back to a web2 system, using a payment provider for fiat payments. They plan to start pushing their project when the data marketplace goes live. Nico gives an approximate timeline of one to three months for this (as of April).

When thinking about the future, Nico envisions data collaborations as one of the key players that takes AI to AGI (Artificial General Intelligence), and he hopes that Learning Nodes becomes of the projects that drive this change forward.

🆕 Tangle Treasury Update

[ - by DigitalSoulx]

We at the TangleVerse Times are extremely honored and humbled to have had our proposal for community funding approved. To give a bit of background, we were unsure if we would be able to continue with the magazine for even one more issue without outside funding. Historically, we have been funded through donations, funds from the ICCD, and to a lesser degree, promotional placements. The donations and funding from the ICCD have ended, and the promotional placements were not enough for us to continue. The Community Treasury opened for business just in time!

Our proposal included a milestone payment for researching and implementing a new platform to house our issues, and we found that ghost.io offered many customizable options as well as functionality for bringing over our Substack subscribers and content. It has all been set up and organized by Ness, so offer her some kudos if you like the new design!

Our primary purpose is to inform and entertain our dear IOTA Community. I hope you’d agree that we’ve accomplished this goal up until now. And while we intend to continue with this goal, we have a secondary mandate now to try to grow our audience even outside of the IOTA bubble if possible. By bringing awareness of this awesome tech to the masses, we all prosper! So, please share our magazine or individual articles freely with those you know who might find the content interesting.

Since the TangleVerse Times will not be issuing a token and since this project is not a big money-maker, we couldn’t really offer to send any funds back to the treasury. However, we decided that the least we could do was to publish treasury-related updates in each issue to make sure the community knows where we stand. The images below should tell you much of what you might want to know at a glance, but if you want more information or just the most current developments please visit the great website that JD created:

Home

Lastly, please know that we don’t take this funding lightly. We understand that these are community funds, and as such, the TangleVerse Times belongs to YOU now! You can get involved by interacting with us in the TangleVerse Times channel of the ICCD Discord. Let us know if you have ideas for new features, have feedback to share, want to help with editing or writing articles, or have ideas about how we can break out of the bubble. We would love to hear from you!

And now, without further ado, here is the current state of the Treasury:

And that’s a wrap! Please like, share, smash that subscribe… or better yet, join us! Do you love to write? Passionate about the IOTA ecosystem? Do you have a project to share? Master at making memes?

We want to help the community discover their strengths and stay updated about everything IOTA. We cannot do this alone. Community participation and feedback will help keep The Tangleverse Times up-to-date and invaluable. Help us help the ecosystem.

The best way to reach us is through Discord: discord.gg/2BeCTUMPAM

Follow us on Twitter: @IOTAcontentDAO and @TangleverseWeb

Special thanks and honourable mentions to all the hardworking ICCD degens who contributed (in the form of written, editorial, design, advisory, and memetic support) to this edition: DigitalSoul.x (Rob), Mart, Ness, IotaPoet, Dominik Schiener, ID.iota, iota_penguin and Alpha Rho.

If you enjoyed the newsletter and would like to see it continue to grow, you can also donate here: iota1qp7l8s5026k7gvd2m0t8cyj754geslnl6vtt0cxzf0xlsvyeug2pv85rh78 smr1qzv5agn7ty5kvmucu6atl4hkhqp3r9cgurh4pdw0rml347tc0jxtwmn4dhk