I agree with @Justin_Bons here
SUI indeed has great tech and terrible tokenomics
I have talked about that in the past and have both used and supported the Sui Network for a brief period, but I believe SUI's problem goes beyond tokenomics at this point
I'm talking about the
🚨 @SuiNetwork is Centralised
> 52% of 10B supply "unallocated" till 2030.
> Founders control that supply.
> They stake it. They earn the rewards.
> 84% of all staked $SUI belongs to them.
> They claim it's parked with centralized custodians (BitGo, Anchorage...)
> Refused to
More brilliant work @Justin_Bons and extremely disappointed in transparency from @SuiNetwork @EmanAbio stating they are decentralized when they are not
I love SUI the protocol which had been making a real contribution to the future of Crypto
Sad
@RaoulGMI - what’s your take? Can you use your influence to get the project to make the right decision here and burn the unallocated supply?
HYPE has devils hiding in the details:
Co-located low node count, off-chain ordering & it is closed source!
Yet, dismissing it as "centralized" is foolish, as its core design is decentralized!
HYPE is decentralizing more, racing SOL to win. Pay attention or get left behind: 🧵
The reason why HYPE has been so successful, leading the charts in fees, is that their product is superior to everyone else's, including SOL's!
SOL's leadership is well aware of this & its future upgrades, Alpenglow & MCP, are meant to close that gap
In the meantime, HYPE has been running unopposed within its particular niche, which includes Perp trading & RWA's!
The Latency Race:
HYPE currently only has 24 validators, most of which are located in the same data center in Tokyo. This is an extreme degree of centralization! Despite the validators themselves still being permissionless
This happened because of the high demand for low latency. We will not defend this design; however, we do still have to recognize the market demand for lower latency
It gets exciting when we realize that both SOL & HYPE want to achieve such low latency within a fully decentralized design environment. It then becomes a question of who gets there first!
Fake It Till You Make It:
The truth behind HYPE is that people are not trading on-chain at all. Their orders are getting matched in the mem-pool & are only included on-chain later
Most people cannot tell the difference; that is how HYPE managed to offer a superior product. They took shortcuts others were unwilling to make. Which, honestly, can also be said for SOL during the early days
However, contrary to my own expectations. As I was a SOL critic at that time. SOL fixed all of its issues & managed to take the lead in usage. Convincing me in the end to pivot & support the project
HYPE is also saying & doing all of the right things, giving us a clear path towards full decentralization in its future
The Prize:
Make no mistake, whoever wins this race wins the entire crypto game!
The use cases these chains cover collect the vast majority of fees. Which is what ultimately pays for decentralization, security & scarcity
That means, from an evolutionary perspective, whoever comes out on top of this competition. Becomes "Bitcoin 3.0"; the most decentralized & performant chain
The blockchain trilemma was effectively solved years ago. The trade-off space now entirely revolves around latency instead
Trillion Dollar Questions:
Will SOL close the gap before HYPE fixes all of its problems? Or will HYPE decentralize before SOL catches up? These are the trillion-dollar questions
HYPE is committing to open-sourcing the codebase & moving trading fully on-chain. While increasing & better distributing their validators globally
Do we bet on the more decentralized chain, which is catching up in performance? Or do we bet on the more performant chain, which is catching up on decentralization?
Or maybe it comes down to which team we trust more to get us across the finish line first. Or what technical challenges are harder or easier to overcome? It is a combination of all of these factors that will determine the ultimate winner
Conclusion
All that matters in the end is that we, the people, get a fully permissionless, decentralized & performant chain at scale. How we get there matters far less in the grand scheme of things
The crypto revolution is inevitable exactly because of the type of utility SOL & HYPE offer the world. Building competitive products for mass adoption is the only way we can make a real impact
That is why this should all matter more to the cypherpunk movement, as only highly performant & decentralized chains can liberate the world. By making financial sovereignty & privacy available to all! 🔥
Do not underestimate HYPE! Dismissing it as "centralized" is foolish
HYPE has a decentralized design!
Devil is in the details: Co-location, low node count, mem-pool matching & closed source
HYPE is decentralizing, though, racing SOL to win. Pay attention or get left behind: 🧵
The reason why HYPE has been so successful, leading the charts in fees, is that their product is superior to everyone else's, including SOL!
SOL's leadership is well aware of this & its future upgrades, Alpenglow & MCP, are meant to close that gap
In the meantime, HYPE has been running unopposed within its particular niche, which includes Perp trading & RWA's!
The Latency Race:
HYPE currently only has 24 validators, most of which are located in the same data center in Tokyo. This is an extreme degree of centralization! Despite the validators themselves still being permissionless
This happened because of the high demand for low latency. We will not defend this design; however, we do still have to recognize the market demand for lower latency
It gets exciting when we realize that both SOL & HYPE want to achieve such low latency within a fully decentralized design environment. It then becomes a question of who gets there first!
Fake It Till You Make It:
The truth behind HYPE is that people are not trading on-chain at all. Their orders are getting matched in the mem-pool & are only included on-chain later
Most people cannot tell the difference; that is how HYPE managed to offer a superior product. They took shortcuts others were unwilling to make. Which, honestly, can also be said for SOL during the early days
However, contrary to my own expectations. As I was a SOL critic at that time. SOL fixed all of its issues & managed to take the lead in usage. Convincing me in the end to pivot & support the project
HYPE is also saying & doing all of the right things, giving us a clear path towards full decentralization in its future
The Prize:
Make no mistake, whoever wins this race wins the entire crypto game!
The use cases these chains cover collect the vast majority of fees. Which is what ultimately pays for decentralization, security & scarcity
That means, from an evolutionary perspective, whoever comes out on top of this competition. Becomes "Bitcoin 3.0"; the most decentralized & performant chain
The blockchain trilemma was effectively solved years ago. The trade-off space now entirely revolves around latency instead
Trillion Dollar Questions:
Will SOL close the gap before HYPE fixes all of its problems? Or will HYPE decentralize before SOL catches up? These are the trillion-dollar questions
HYPE is committing to open-sourcing the codebase & moving trading fully on-chain. While increasing & better distributing their validators globally
Do we bet on the more decentralized chain, which is catching up in performance? Or do we bet on the more performant chain, which is catching up on decentralization?
Or maybe it comes down to which team we trust more to get us across the finish line first. Or what technical challenges are harder or easier to overcome? It is a combination of all of these factors that will determine the ultimate winner
Conclusion
All that matters in the end is that we, the people, get a fully permissionless, decentralized & performant chain at scale. How we get there matters far less in the grand scheme of things
The crypto revolution is inevitable exactly because of the type of utility SOL & HYPE offer the world. Building competitive products for mass adoption is the only way we can make a real impact
That is why this should all matter more to the cypherpunk movement, as only highly performant & decentralized chains can liberate the world. By making financial sovereignty & privacy available to all! 🔥
Call Canton out for what they are. Anyone who knows crypto and blockchain know Canton is not a blockchain. No self respecting exchange will list this database posing as a blockchain @cz_binance @binance @okx @krakenfx @coinbase
@Justin_Bons I have been actually waiting for you to post on this very subject being the leading CRYPTO MAXI out there and always appreciate your thoughts
Tradfi and Web2 were always going to build their own platforms
Thoughts
@CantonNetwork @YuvalRooz @HeslinKim @TrenchWeb3
Canton is misleading the public & investors with lies & fake metrics!
It is a centralized money printer with a built-in tax, tiered fees, KYC & censorship built in
That is not "blockchain"!
It is instead a nightmare of centralization worthy of a dystopian cyberpunk novel: 🧵
The definition of permissionless is that we do not need permission to participate in consensus. That is not at all the case for Canton!
There is a literal invitation-only application proccess, where the pre-existing validator set decides who is allowed to join, determining consensus!
The fact that there even is an application proccess is the perfect litmus test for permissionlessness that Canton clearly fails
That makes it a totally permissioned system & by extension, also makes it totally centralized. It can never achieve credible neutrality, despite their claims to the contrary
Centralized Money Printer:
Canton has an insane net inflation rate of 21.8%!
To add insult to injury, centralized designs do not actually need a token... Yet, Canton still does
There is no application proccess in any truly decentralized system. Consensus instead relies on incentives, either in the form of a stake or work. That is why a token of value is needed to award participants
However, in Canton, these rewards still go to validators who did not put up any stake! Along with a select group of applications chosen by this centralized authority...
This makes it essentially "free money," from the perspective of these validators & applications. This helps to explain, to a large extent, the motive behind many of these partnerships
A board for a for-profit company has a fiduciary duty to agree to a deal where they are offered millions of dollars to simply run a node & say they have a partnership, which also looks good for their company's evaluation...
That does not mean it is not all BS, it only "works" due to the magic of a crypto money-printer scheme, which has a lot in common with a Ponzi scheme
This is a playbook we have seen time & time again in crypto; it is nothing new
Extractive Economics:
Talking about there being nothing new under the sun: Canton has a literal tax system in which holders have a portion of their tokens taken directly from their wallets & burned!
There is also a tiered fee system, where a higher fee is paid for smaller users & a lower fee for larger users. Making it an inherently unequal system, another reason why it is more like the old banking system than crypto
The centralized authority decides which applications are "featured," significantly increasing their rewards & visibility. This obviously also opens up countless opportunities for favoritism & even corruption!
Fake TVL Metrics:
Canton claims to have an RWA TVL of over $326 billion! That would put it ahead of all other blockchains by an extremely large margin
This claim is entirely false; it is instead an accounting trick that they achieved through their partnerships
Certain companies, such as Broadridge, are simply mirroring their balance sheets within their private networks on Canton. This is then counted as "on-chain" TVL...
Despite that, nothing would change if the Canton network disappeared tomorrow!
That is why some sites report that full amount, but more reputable sites, such as DeFiLama, report a total TVL as $0! That is the very definition of a fake metric. It is all smoke & mirrors
Preying On Ignorance:
There is a continuous cycle of centralized "crypto" that exploits people's ignorance
The main innovation of crypto is decentralization: The ability to do finance in a permissionless, credible neutral, & censorship ressistant manner is the real breakthrough of this technology
This requires a major paradigm shift in thinking. Something many people are simply not ready for, especially such large institutions
So, in the meantime, we see countless attempts to present them with a more palatable form of "crypto"
However, much like the history of the early internet, where large institutions resisted the public internet & pushed for private internets. The public internet won & helped create the brave new world we live in today
The history of crypto is surely going to play out in the same way, as the type of centralized authority we see in Canton has become outdated
Conclusion:
It is a free market & people can build whatever they want. However, we must draw a line once misleading claims are made
That is where it went from live & let live to us needing to take action against Canton. Cryptocurrency is special, & we cannot allow anyone to falsely invoke the values & principles we hold so dear. Only to sell a token that is antithetical to that very movement
That free market only works if we can self-police against bad actors. Something that has to be done in the free marketplace of ideas. That is why I implore you today to reject Canton & all that it represents
Canton is regressive, as it goes against everything crypto stands for. While pretending to have the same attributes of crypto, when nothing could be further from the truth. It is, frankly speaking, significantly worse than the current banking system
The crypto movement was born as a protest against such arbitrary centralized power. As the Bitcoin genesis block so clearly stated
It would be tragic if crypto ends up birthing a monster that turns out worse than what it was trying to fight.
Help us fight this monster by spreading this message far & wide. As crypto deserves better, we deserve better
That is why we must push back against all pretenders to the throne, as crypto is meant to be a liberating force. Canton has no business being in that exclusive club
As ultimately, crypto is here to make the world a better place through economic freedom, privacy, censorship resistance & individual sovereignty! 🔥
Canton is misleading the public & investors with lies & fake metrics:
A permissioned & centralized money printer with a built-in tax, tiered fees, KYC & censorship built in!
That is not "blockchain"!
It is a nightmare of centralization worthy of a dystopian cyberpunk novel: 🧵
The definition of permissionless is that we do not need permission to participate in consensus. That is not at all the case for Canton!
There is a literal invitation-only application proccess, where the pre-existing validator set decides who is allowed to join, determining consensus!
The fact that there even is an application proccess is the perfect litmus test for permissionlessness that Canton clearly fails
That makes it a totally permissioned system & by extension, also makes it totally centralized. It can never achieve credible neutrality, despite their claims to the contrary
Centralized Money Printer:
Canton has an insane net inflation rate of 21.8%!
To add insult to injury, centralized designs do not actually need a token... Yet, Canton still does
There is no application proccess in any truly decentralized system. Consensus instead relies on incentives, either in the form of a stake or work. That is why a token of value is needed to award participants
However, in Canton, these rewards still go to validators who did not put up any stake! Along with a select group of applications chosen by this centralized authority...
This makes it essentially "free money," from the perspective of these validators & applications. This helps to explain, to a large extent, the motive behind many of these partnerships
A board for a for-profit company has a fiduciary duty to agree to a deal where they are offered millions of dollars to simply run a node & say they have a partnership, which also looks good for their company's evaluation...
That does not mean it is not all BS, it only "works" due to the magic of a crypto money-printer scheme, which has a lot in common with a Ponzi scheme
This is a playbook we have seen time & time again in crypto; it is nothing new
Extractive Economics:
Talking about there being nothing new under the sun: Canton has a literal tax system in which holders have a portion of their tokens taken directly from their wallets & burned!
There is also a tiered fee system, where a higher fee is paid for smaller users & a lower fee for larger users. Making it an inherently unequal system, another reason why it is more like the old banking system than crypto
The centralized authority decides which applications are "featured," significantly increasing their rewards & visibility. This obviously also opens up countless opportunities for favoritism & even corruption!
Fake TVL Metrics
Canton claims to have an RWA TVL of over $326 billion! That would put it ahead of all other blockchains by an extremely large margin
This claim is entirely false; it is instead an accounting trick that they achieved through their partnerships
Certain companies, such as Broadridge, are simply mirroring their balance sheets within their private networks on Canton. This is then counted as "on-chain" TVL...
Despite that, nothing would change if the Canton network disappeared tomorrow!
That is why some sites report that full amount, but more reputable sites, such as DeFiLama, report a total TVL as $0! That is the very definition of a fake metric. It is all smoke & mirrors
Preying On Ignorance
There is a continuous cycle of centralized "crypto" that exploits people's ignorance
The main innovation of crypto is decentralization: The ability to do finance in a permissionless, credible neutral, & censorship ressistant manner is the real breakthrough of this technology
This requires a major paradigm shift in thinking. Something many people are simply not ready for, especially such large institutions
So, in the meantime, we see countless attempts to present them with a more palatable form of "crypto"
However, much like the history of the early internet, where large institutions resisted the public internet & pushed for private internets. The public internet won & helped create the brave new world we live in today
The history of crypto is surely going to play out in the same way, as the type of centralized authority we see in Canton has become outdated
Conclusion
It is a free market & people can build whatever they want. However, we must draw a line once misleading claims are made
That is where it went from live & let live to us needing to take action against Canton. Cryptocurrency is special, & we cannot allow anyone to falsely invoke the values & principles we hold so dear. Only to sell a token that is antithetical to that very movement
That free market only works if we can self-police against bad actors. Something that has to be done in the free marketplace of ideas. That is why I implore you today to reject Canton & all that it represents
Canton is regressive, as it goes against everything crypto stands for. While pretending to have the same attributes of crypto, when nothing could be further from the truth. It is, frankly speaking, significantly worse than the current banking system
The crypto movement was born as a protest against such arbitrary centralized power. As the Bitcoin genesis block so clearly stated
It would be tragic if crypto ends up birthing a monster that turns out worse than what it was trying to fight.
Help us fight this monster by spreading this message far & wide. As crypto deserves better, we deserve better
That is why we must push back against all pretenders to the throne, as crypto is meant to be a liberating force. Canton has no business being in that exclusive club
As ultimately, crypto is here to make the world a better place through economic freedom, privacy, censorship resistance & individual sovereignty! 🔥