Hi!

Welcome to Web3 Bits, where I share a few of the most interesting web3 bits for you to consumer over the weekend.

Interesting things

• Biggest news by far this week has been the SEC suing Kraken over their staking offering (SEC filing here). Having read the 25 page, I find myself in the odd position of agreeing with the SEC. Kraken's staking product is indeed a security and but not registering it, they're not offering the public the information they deserve to assess the risks of staking with Kraken. To understand why Kraken's staking offering is materially different from solo staking or even other joint staking solutions (like Rocket Pool) I recommend you read my full analysis here.
• On a positive side, DeFi and crypto can help improve traditional financial markets. Uniswap and Circle conducted some good research on improving Forex markets, claiming that among other things moving to crypto rails can reduce market manipulation. For the TL:DR you can visit here. Go here for the full paper.
• Dan Romero, the CEO of Farcaster, a decentralized social media protocol has a really good crypto reading list of OG posts. Recommend browsing and reading, basically all of them. It's a bit heavy on the A16z thought leadership, so balance that out with other opinions.
• FWB (Friends with benefits) released a version of their own social media app open only to FWB holders. I'm excited about this because it showcases the inevitable migration away from Discord and towards newer, more community oriented and aligned, platforms. On the tokenomics side of things this unlocks a lot of new experiences and tiers that can be done.
• Security came into the spotlight recently because Kevin Rose, a well known NFT collector and founder of Moonbirds + Proof collective got hacked. It's worth investing in security for your wallet. This thread covers some techniques. A technological change that's coming soon (which really can mean anything) is account abstraction. You might have heard of it but it will open up many new UX experiences on the wallet side. This panel from Devcon Bogota is a good primer on it.

Tools

• If you haven't learned to use Dune Analytics, what are you waiting for? It's a must know in token design and analysis. This is a good tutorial.
• ​Machinations.io: A product built around modeling.

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Have a wonderful weekend.