The governance token of Compound is set to be available for distribution to all of its users, set to begin on the 15th of June, within the Decentralized Finance (DeFi) protocol.
Enabling COMP Distribution
In relation to this, Compound tweeted on the 10th of June about it. The lending platform had successfully completed its testnet trials for the COP token, standing as part of its governance proposal to have tokens be distributed to its various users.
We've completed the $COMP Distribution testnet trial; thank you to every community member that participated.
Compound Governance Proposal 007 has been created, which if passed, will begin the COMP Distribution on June 15th.
— Compound (@compoundfinance) June 11, 2020
With the testing successful, the community of the Compound protocol was quick to approve the proposal. For no other reason than amusement, it should be noted that the proposal was called “007,” but no secret agent is involved with it, sadly. The lending platform itself will distribute an impressive 1,116,310.81 COP tokens across an array of markets: DAI, ETH, USDT, USDC, REP, ZRX, as well as WBTC. The distribution will be in proportion to the interest that the market has accrued, according to the statement.
A Small Minimum Threshold
The statement went further, explaining that each market will see half of the allocated COMP supplied to it, be distributed to the suppliers. Likewise, the other half will then be distributed to the borrowers, in turn. The proposal explained that should an address interact with one of Compound’s markets, the address will receive all the COP that was earned within the market. However, this will only apply should the COMP earned exceed the minimum threshold of 0.001 COMP.
Coinbase Giving The Green Light
It was back in March. 2020 when Coinbase announced that it had officially integrated support for the Compound protocol within the Coinbase wallet app. The recent approval of Compound’s governance proposal came just as the DeFi protocol had a large influx of new DeFi users. It’s expected that the total of users will soon reach the 600,000 mark.
Alongside this, Coinbase was quick to announce that it will support the COMP token, as well as 17 other tokens, as well. It should be noted that this hasn’t been implemented yet, but acted more as an announcement that it will dedicate itself to integrate it into the exchange’s many offerings.
DeFi stood at the cusp of cutting edge blockchain technology. It’s hard to remember, sometimes, that blockchain is a very fledgling technology, in the grand scheme of things. Not a week goes by that someone finds some new way to leverage it. While its ultimate utility is still debated, it’s because of these constant innovations that DeFi protocols like COMP were developed. It’s a product of someone making a discovery.
India Reportedly Plans to Tax Crypto Investors As Bitcoin Price and Trading Activities Soar
Barely ten months after the Indian Supreme Court lifted the RBI’s ban on cryptocurrency transactions, fresh reports from yesterday revealed that the country’s tax authority is now keeping a close watch on crypto traders as Bitcoin’s price continues its bullish trend.
Taxing Crypto Gains
According to local media, the Indian Tax Department is already in possession of data belonging to investors who invested in Bitcoin or cryptocurrencies through banking channels before the RBI’s ban in 2018.
This development is coming after data shows a tremendous increase in crypto trading activities in India. Since the crypto ban was lifted earlier this year, retail investors between the ages of 25 and 40 have been spending millions of dollars on crypto trading every day.
Over $25 Million Daily
Two of India’s largest crypto trading platforms, Binance-acquired WazirX and CoinDCX, saw a significant increase in activities over the last six months. According to an earlier report, WazirX recorded a massive 125% increase in user signups in the last two quarters. The exchange also has a daily trading volume of $19-26 million, with more than 85% of the transaction coming from Indian traders.
Some experts believe it will be difficult for the country to tax crypto because there’s no regulation in place for crypto dealings. They feel a regulatory framework will provide the needed clarity to make taxation easier. While India is yet to release its crypto regulation, an earlier report suggests that the country may regulate crypto as commodities.
Declaring Bitcoin Profits As Capital Gains
Although it is unclear how India plans to implement the tax law, sources familiar with the matter claimed that the country’s taxman is already preparing to collect tax on the gains made from Bitcoin. And notice may be sent out to investors if “something goes out of this.”
Experts believe that the tax authorities may classify crypto gains as business income, and investors may have to pay up to 30% tax on profits made from selling cryptocurrencies.
However, some tax experts are advising their clients to declare their Bitcoin earnings as capital gains, which is similar to profits generated from shares.
Bitcoin Breaks 2017 ATH But Gets Rejected: The Crypto Weekly Market Update
To say that this week was interesting would be an understatement. It had a little bit of everything.
Starting off, towards the beginning of the week, Bitcoin officially surged past its 2017 high and recorded a new all-time high, clocking at almost $20,000 but couldn’t really manage to surge past that point.
Naturally, as it always happens with the primary cryptocurrency, things took a turn for the exact opposite of what many were expecting. The price took a beating ad dropped to the low $18,000s in a matter of hours. This resulted in around $800 million worth of liquidations in less than 24 hours.
The bulls weren’t finished, however. They intercepted the move, and the price started recovering. At the time of this writing, Bitcoin is trading around $19,000, and it’s interesting to see where it would take from here.
Elsewhere, there was quite a bit of positive news throughout the entire week. Just yesterday, the audio streaming giant Spotify posted a job opening that revealed that it’s contemplating cryptocurrencies for payments. The acting Comptroller of the Currency in the US, Brian Brooks, said that banning crypto is not part of the country’s plans, reassuring that positive news will follow by the end of Trump’s term.
Unfortunately, the week also presented us with some bad news. As CryptoPotato reported, a large Australian exchange accidentally exposed over 270,000 customer emails in a serious privacy breach. This is not the first time an incident of this kind happens as in late 2019, BitMEX went through something similar.
In any case, the overall sentiment within the community remains overly positive. In fact, a cryptocurrency sentiment survey conducted by Kraken revealed that investors hold that Bitcoin will hit $36,000 in 2021. Will it happen? Only time will tell.
Market Cap: $562B | 24H Vol: 139B | BTC Dominance: 62.7%
BTC: $18,915 (+13.03%) | ETH: $587.46 (+16.13%) | XRP: $0.56 (+5.61%)
Audio Streaming Mogul Spotify Considering Cryptocurrency Payments. The popular audio streaming mogul Spotify has posted a job opening that reveals its intention to potentially incorporate bitcoin and other cryptocurrencies as a means of payment. With this, Spotify follows a group of major corporations that are putting effort towards implementing digital assets in their ecosystems.
Bullish Indicator to Buy Bitcoin Has Flashed Yet Again After 5 Months. The majorly bullish indicator has flashed green once again after five months. The Hash Ribbons, as it’s referred to, preceded BTC’s rallies to $10,500 in April and the run-up to $12,500 in August. It’s interesting to see if it will be correct again and if BTC will produce yet another leg up, taking it above $20,000.
Bitcoin Arrives At Wall Street: Crypto Indexes To Be Launched in 2021 By S&P Dow Jones Indices. In another news of serious cryptocurrency adoption, the leading index provider S&P Dow Jones Indices has revealed a partnership with the crypto-based Lukka to launch cryptocurrency indexes that follow 550 of the leading coins.
Bitcoin Price to Hit $36,000 in 2021: Kraken Crypto Sentiment Survey. According to a recent sentiment survey conducted by the popular cryptocurrency exchange Kraken, a majority of the respondents believe that Bitcoin will hit $36,000 in 2021. The same also think that Ether will clock in at a price of around $1450.
Visa Partners With Circle to Integrate USDC for Payments. The payment processing giant Visa has partnered up with Circle with the intention to integrate the USDC stablecoin within its network of merchants. The report also shared that 25 other companies involved in Visa’s Fast Track program would be included in the collaboration.
Australian Crypto Exchange Accidentally Exposes Over 270,000 Customer Emails. In what seems like another serious privacy breach, an Australian cryptocurrency exchange has accidentally exposed over 270,000 customer emails. This follows another mistake of the kind that happened with BitMEX in late 2019.
This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin – click here for the full price analysis.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
The Polkadot Multi-Chain: Building Out the Blockchain Superhighway
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The race to build a better blockchain is intense. But Gavin Woods, co-founder of the Ethereum blockchain, did not set out to create the best blockchain when he launched the Polkadot blockchain this year. Polkadot’s aim is to combine the best of all blockchains through its interoperable protocol.
Polkadot is an ecosystem of interoperable blockchains called parachains. These chains operate in parallel on the highly scalable Polkadot fabric. Parachains serve diverse functions working as the following:
- smart contract chains to execute on-chain and cross-chain actions
- oracle chains to act as a bridge between real-world data and events and on-chain functions
- identity chains that link personal identity information across parachains
- layer-1 chains to host decentralized finance (DeFi) DApps
- internet of things (IoT) chains to support multi-chain IoT interoperability
- data chains to collect and curate data across chains
Each parachain is a sovereign blockchain with its own tokens.
The Polkadot multi-chain fabric was built on the Substrate blockchain but owes much to the community of Ethereum developers. With next-gen Ethereum features like sharding and parallelization, Polkadot is emerging as the blockchain superhighway. The blockchain’s true potential is unleashed when the ecosystem can draw on the strengths of each chain and share resources and transfer value.
Following are some of the parachains building out increased functionality and services by leveraging the competencies of other parachains on the Polkadot multi-chain.
According to the blockchain marketplace Dapp.com, there are currently 44 DApps building on Polkadot. The total number of ecosystem developers exceeds 300 projects, according to PolkaProject.
The fast growth of the network is also indicated by the number of explorers (more than 10 explorers provide data about Polkadot) and the wallets (27), which have extended support for Polkadot.
The network has a little bit over 50,000 active accounts, which have executed 400,000 transactions. The average block time is approximately six seconds. The average transactions processed daily are approximately 3,0003,500.
The network is growing quite fast, onboarding 5001,500 new accounts on a daily basis.
Below, we present five projects that are getting the most traction in these (still) early days for Polkadot.
Kylin Network, a data infrastructure component of Polkadot, is designed to be the data infrastructure for the future DeFi and Web 3.0. It is powered by Polkadot and hopes to provide validated data feeding, data exchange and analytics tools for the future of DeFi and Web 3.0 applications.
It represents extensibility and a synergetic increase to the off-chain workers’ capability as it will provide not only access, management, insights and coordination to a greater array of data sources, but also bolster the validity and decentralization of the data sources themselves.
On October 29th, the project was officially admitted into the Web3 grant list and began its development with full force with the first PoC product expected to be rolled out in Q4 2020. It also announced the completion of seed round financing in November, receiving $1.1 million from large institutional investors including Digital Strategies, SigNum Capital, PNYX Ventures, AU21 Capital, Moonrock Capital, CMS, ZMT Capital, Tenzor Capital and Rarestone Capital.
Kylin Network is committed to building a cross-chain platform that will power the data economy on Polkadot. It strives to become the data infrastructure for DeFi and Web 3.0 applications on Polkadot and provide them with secure, reliable and cost-effective data sources and analytic services.
The PAID Network
The PAID Network has joined PolkaDot multi-chain so that anyone on any blockchain can benefit from its DeFi legal system rolled into a smart contract. Business disputes and litigation slow business growth and tie up court systems. Small businesses alone spend on average $20,000 on business litigation annually.
Smart contracts issued on the blockchain digital ledger make it easy to enter into business transactions, but businesses still face a myriad of legal risks. To mitigate these risks, PAID has developed a free smart contract to make doing business easy, secure and low-cost.
PAID’s digital legal services are easily accessible on mobile apps or the web. Choose the SMART Agreement template that meets your legal needs, fill in the terms and execute the contract. Ensuring your contract is legally secure is that easy.
If a dispute does arise, PAID provides arbitration services through another PolkaDot member, Chainlink. Chainlink provides arbitration via the Chainlink Verifiable Random Function (VRF), an unbiased and auditable arbitration process. The dispute resolution process uses randomness to choose arbitrators.
If a dispute does arise, parties have access to a community-governed arbitration.
Another PolkaDot parachain, the Plasm Network, provides middle layer protocols to support DeFi protocols. PAID will use Plasm to expand its DeFi services. They currently include insurance, staking and peer-to-peer reputation scoring.
Kusama is the rebel parachain on Polkadot. Kusama builds on Polkadot code to provide next-generation features not available on Polkadot, including improvements in interoperability and scalability.
Since its launch in 2019, Kusama’s token has shot into the top 50 on CoinMarketCap. Its founder Gavin Woods also co-founder of Ethereum, PolkaDot and Parity Technologies has given the project a huge boost with his blockchain dev experience and creds. The blockchain development platform aims to ensure the blockchains connecting to Polkadot’s chain of parachains are high performance. Kusama is built on Parity Technologies’ blockchain building kit.
Polkadot has been called the internet of blockchains. The benefits of a digital superhighway based on advanced digital ledger technology has quickly attracted hundreds of parachains to the Polkadot multi-chain. China’s Blockchain Network Service (BNS) has recently added the Polkadot multi-chain.
The above use cases provide a glimpse of the many ways parachains are building out functionality and enhanced products and services by deploying across other parachains. If you want to follow the future of business and society on the blockchain, keep a close eye on the Polkadot ecosystem.
Ocean Protocol is breaking down enterprise data silos to host and support curated big data marketplaces. The more data sources Ocean can access, the higher its data value. As a parachain, Ocean has the potential to access data from the over 300 parachains currently operating on Pokadot.
Decentralized data marketplaces set up shop on Ocean’s parachain to buy and sell the curated data. Businesses are hungry for quality data to feed into their artificial intelligence and machine learning systems. Polkadot has many blockchains hosting enterprises and other generators of data. The more blockchain Ocean Protocol can extract data from, the higher quality the data and value to businesses.
Polkadot has the scalability required for big data collection and curation. Digital ledger technology (DLT) can collect data anonymously in a transparent and secure environment.
This allows data providers to share their data while maintaining control over it. In addition to data providers and consumers, network keepers earn fees on Ocean’s protocol by running nodes within the network.
AAVE is a lending protocol on Polkadot. The popular DeFi DApp uses Chainlink to aggregate off-chain pricing data on lending rates. By using the decentralized oracle network, AAVE avoids having one point of failure for its pricing data. Chainlink brings reliability and data integrity.
Depositors provide liquidity to lending pools in exchange for aTokens. aTokens earn interest on the deposits. Borrowers can obtain collateralized and uncollateralized loans from the pools. The loan rates are weight-adjusted based on the oracle feed rates. This trustless approach ensures fairer pricing. The ability of Polkadot protocol to run transactions in parallelfor instance, pricing loans, staking collateral and depositing the loan makes flash loans possible.
Nikolaos Kostopoulos is a fintech advisor incumbent with a focus on capital markets and asset tokenization. Nikolaos is a pioneer in the consensus industry since early 2015. He is an early adopter and enthusiastic evangelist for decentralized technology as a way to improve many aspects of the modern world. His master’s thesis, “Developing an Optimal Financial and Regulatory Governance Mechanism for Cryptocurrencies in the European Union,” was among the very first academic papers to argue the need and method for regulating cryptocurrencies in the European Union. Nikolaos is a frequent speaker at financial events related to regulation and security.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Captain Wang
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