How to increase your Bitcoin holdings

Passive profits: How to increase your Bitcoin holdings

Bitcoin has gained enormous popularity and legitimacy in recent months. This has triggered a domino effect and altcoins have also performed strongly in recent weeks – but how long will the good times last?

What happens next with Bitcoin?

Blockchain is here to stay, but the future of cryptocurrency is still up for debate for many. As Bitcoin’s supply falls and demand rises, forecasts tend to be positive and some even argue that Bitcoin will rise above $100,000 in 2021.

However, we are still early in the adaptation curve. No one knows exactly what the future holds, but when Bitcoin Superstar comes to cryptocurrencies like Bitcoin, there is only one thing that is certain: that is market volatility. Huge swings in the price happen all the time and the last few months in particular have shown that.

However, there are ways you can profit from these fluctuations.

Crypto arbitrage trading with Bitcoin and Co.

A good way to increase your Bitcoin holdings with manageable risk is crypto-arbitrage trading. The reason for this is that you can make high profits with arbitrage trading on different Bitcoin exchanges. By exploiting price inefficiencies, investors can make a return. To see exactly how this works, today we will take a look at one of the best crypto arbitrage platforms. One of the most well-known platforms is ArbiSmart.

ArbiSmart is a fully automated platform that scans 35 different bitcoin exchanges simultaneously around the clock looking for crypto arbitrage opportunities. In the process, the platform does all the work and you can sit back and relax as an investor.

It should be noted that ArbiSmart is an FIU-licensed platform. Crypto investments can be very lucrative, but you also run the risk of falling prey to hackers and fraudsters. For this reason, it is better to entrust your money to an investment platform that is fully licensed and regulated. ArbiSmart, for example, has to comply with strict EU regulations to protect investors and therefore seems to be a good choice.

What profit can one make with ArbiSmart?

There is no doubt that one can make big profits with cryptocurrencies. While many of those who got in early on Bitcoin are now millionaires, the profits from crypto investments are anything but predictable at this point.

But it is still possible to make big gains with relatively little risk. With crypto-arbitrage trading, this can be realised. ArbiSmart offers annual returns ranging from 10.8 per cent to as much as 45 per cent.

In addition, the company offers compound interest on profits as well as capital gains on the growing value of the company’s native token, RBIS, in which all platform transactions take place. In addition, ArbiSmart has a good reputation in the bitcoin community. On Trustpilot, for example, the company has a 4.2/5 star rating.

However, one should not overestimate the inherent risk of cryptocurrencies, as things can go up as quickly as they can go down. Those looking for a safe home for their savings will find ArbiSmart a good solution. For those who want to learn more about crypto-arbitrage, it’s best to check out ArbiSmart’s official site.

Bitcoin para todos: O novo curso gratuito anunciado pelo CEO da MicroStrategy, Michael Saylor

Após um conjunto bem sucedido de conferências aboout Bitcoin para Corporações, Michael Saylor está criando um programa educacional „para todos“.

Michael Saylor não está satisfeito em ter aconselhado a Elon Musk a comprar o Bitcoin Evolution. Ele quer espalhar sua mensagem para muito mais pessoas ao redor do mundo.

Em um tweet recente, Michael Saylor anunciou que estava lançando um curso para qualquer pessoa interessada em entender o que é Bitcoin, sua lógica e sua importância. O curso é 100% gratuito e está disponível na plataforma da Academia Saylor, uma organização sem fins lucrativos criada por Michael Saylor.

Apresentando Bitcoin for Everybody – um curso gratuito para educar o mundo em #bitcoin e ajudar qualquer pessoa que procure aproveitar esta rede monetária digital para promover o fortalecimento econômico. https://t.co/iqxv3vjHpg pic.twitter.com/VJz1kHiS8a

– Michael Saylor (@michael_saylor) 9 de fevereiro de 2021

A adoção do Bitcoin requer educação

O programa „Bitcoin for Everybody“ tem duração de 12 horas, com vídeos didáticos destinados a iniciantes. Ele inclui 5 Unidades e oferece a opção de receber uma certificação gratuita ao passar em um exame final.

Para os interessados, o curso cobre os seguintes tópicos:

  • Unidade 1: Economia de Bitcoin: Explora o ambiente financeiro atual e como funciona o sistema financeiro, os erros do passado – e do presente – e o impacto ambiental do bitcoin.
  • Unidade 2: Investimento em Bitcoin: Examina as bases do bitcoin, se é um esquema Ponzi ou não, e como pessoas e corporações podem utilizá-lo em uma estratégia de investimento.
  • Unidade 3: História e Filosofia da Bitcoin: Elabora sobre os fundamentos teóricos e ideológicos por trás do movimento que deu origem à Bitcoin.
  • Unidade 4: Tecnologia Bitcoin: Discute os aspectos técnicos que tornam a Bitcoin uma forma segura de armazenar e transmitir valor de forma descentralizada, sem confiança e criptografada.
  • Unidade 5: A Bitcoin na Prática: Explica como incorporar a Bitcoin na vida cotidiana, como comprar/vender Bitcoin, enviar transações entre carteiras, evitar fraudes, etc.

Os esforços de Saylor para educar as pessoas sobre a Bitcoin valeram a pena. Pouco antes de anunciar este curso, a MicroStrategy – sua empresa – realizou a cúpula mundial, agora virtual. O programa „Bitcoin para Empresas“ de Saylor atraiu com sucesso 8.197 participantes de 6.917 empresas diferentes.

Michael Saylor está arriscando muito com sua estratégia Bitcoin

Mas Saylor não está fazendo este trabalho por amor a ele. Sua estratégia corporativa tomou um rumo completo após reconsiderar o potencial de Bitcoin como uma reserva de valor. Com esta premissa, ele se apresentou publicamente ao Elon Musk no Twitter, oferecendo-se para compartilhar seu „playbook“ confidencialmente.

O que veio depois foi a história. Tesla também mudou sua estratégia de investimento ao anunciar uma compra maciça de Bitcoin e a possibilidade de aceitar a BTC como meio de pagamento no futuro. Tudo isso culminou com os preços da Bitcoin disparando para novos máximos em tempo recorde e o preço das ações da MicroStrategy subindo também.

É fácil ver porque os maximalistas da Bitcoin seguem de perto os passos de Saylor. Se ele conseguir difundir sua mensagem, terá uma fortuna mais do que merecida. Ele também ganharia um lugar como um dos maiores influenciadores no mundo da moeda criptográfica.

Wird Apple nach Tesla das nächste Unternehmen sein, das Bitcoin einführt?

„Das Unternehmen könnte mit wenigen Klicks eine Milliarden-Dollar-Chance eröffnen“, sagte Analyst Paul Steves.

Tesla Motors gab heute bekannt, dass es einen großen Bitcoin-Kauf getätigt hat und plant, in Zukunft Krypto-Zahlungen einzuführen

Einige in der Branche spekulieren jetzt, dass Apple der nächste institutionelle Player sein wird, der das Krypto-Asset einführt.

In einem Marktbericht des Dominion Securities-Analysten Paul Steves von der Royal Bank of Canada könnte die Einführung des Technologieunternehmens in Crypto einen Jahresumsatz von mehr als 40 Milliarden US-Dollar erzielen und branchenweit Wellen schlagen.

Er stützt diese Vorhersage über die Geschichte der Bitcoin ( BTC ) Umsatz bei Zahlungen Unternehmen Platzes, die mehr als $ berichtete , 1,6 Milliarden an Einnahmen aus der BTC in Q3 2020. Platz hat rund 30 Millionen monatlich aktive Nutzer, um eine Fraktion von Apples Basis installieren, berichteten von CEO Tim Cook soll ab Januar 1,65 Milliarden Geräte haben.

„Wenn [Apple] beschließt, in das Geschäft mit Krypto-Börsen einzusteigen, könnte das Unternehmen unserer Meinung nach sofort Marktanteile gewinnen und die Branche stören“, sagte Steves und fügte hinzu, dass der Schritt dazu beitragen könnte, die USA für bis zu 20 Jahre zum Krypto-Marktführer zu machen.

„Das Unternehmen könnte mit wenigen Klicks eine Milliarden-Dollar-Chance eröffnen.“

Tesla Motors gab heute bekannt, dass es einen Teil seiner Bilanz Bitcoin zugewiesen hat und zu einem späteren Zeitpunkt Krypto-Zahlungen für seine Autos einführen wird. Die Einführung eines hochkarätigen Spielers in der Technologiebranche – und der anschließende Anstieg des BTC-Preises auf ein neues Allzeithoch – hat viele in der Crypto-Community dazu veranlasst, dass Apple der nächste sein wird.

Im November sagte der Portfoliomanager von Toroso Investments, Dan Weiskopf , dass eine Investition von 10 bis 20 Milliarden US-Dollar in Bitcoin langfristig rentabler wäre als das Technologieunternehmen, das „aggressiv Aktien zurückkauft“. Er fügte hinzu, die Krypto-Investition sei auch eine Absicherung gegen Inflation.

Mit einer Marktkapitalisierung von mehr als 2,2 Billionen US-Dollar ist Apple das wertvollste Unternehmen der Welt und verfügt über einen Kassenbestand von rund 200 Milliarden US-Dollar – hypothetisch genug, um 25% aller im Umlauf befindlichen Bitcoin-Produkte zu kaufen.

Ny ATH eller ikke, dette er hva du bør vite

Ny ATH eller ikke, dette er hva du bør vite

Mens prisen på Ethereum gikk parabolsk på pressetid, ser det ut til at Ethereums daglige transaksjonsvolum også har gått parabolsk, ifølge Messaris Crypto-diagrammer. Faktisk legger verdens nest største kryptovaluta nå over 12 milliarder dollar i daglige transaksjoner. For å sette figuren i perspektiv er det 3 milliarder dollar mer enn Bitcoin.

Dette er også en avgjørende figur siden det daglige transaksjonsvolumet er en topp beregning for å vurdere tilstanden til Ethereums prisoppgang, selv om prisutviklingen er lik Bitcoin Billionaire på grunn av den relativt høye korrelasjonen mellom de to eiendelene i den nåværende markedssyklusen.

ETHs transaksjonsvolum flyr fra diagrammer

Akkurat som Ethereums prisrally hadde DeFis støtte til å øke nettverksgebyrene i oktober 2020, har den nåværende prisrallyen DeFis støtte gjennom økt transaksjonsvolum og nettverksgebyrer.

Det faktum at Bitcoins prisrally har lav volatilitet og kryptoaktiva er mellom $ 34.000 og $ 38.000, kan ha spilt en rolle i dette ettersom retningen på investeringsflyten også har endret seg. Dette kan bevises av det faktum at mot Bitcoins ukentlige prisøkning på 5% steg Ethereums pris med over 21,91% denne uken.

Nå er det rasjonelle bekymringer rundt det økende transaksjonsvolumet, da det kan skade reell adopsjon og bruk i det lange løp

Men selv om kryptokurrencyens pris går på en prisoppdagelse etter å ha truffet en ny ATH, er det en mulighet for at økende nettverksgebyrer vil føre til et fall i transaksjonsvolumet.

Det bør imidlertid bemerkes at det å klatre så høyt som det gjorde på pristabellene alene, er en bragd for Ethereum, spesielt i lys av Bitcoins nylige volatilitet.

Fra å være basisvalutaen for ICO til vertikal vekst, har Ethereum blitt mer relevant enn Bitcoin i mange sammenhenger og institusjoner, og detaljhandelsmenn kan ha identifisert trenden tidlig. Mens investeringsflyten i Bitcoin i stor grad kommer fra institusjoner, er det samme ikke for Ethereum siden det er flere detaljhandelshandlere som kjøper Ethereum og genererer etterspørsel på spotbørser.

Ergo, det som ligger foran Ethereum er avhengig av åpen rente og transaksjonsvolum på derivatbørser. Basert på volumdiagrammet til ETH-opsjonene har alternativvolumet imidlertid falt med 63% siden begynnelsen av januar 2021, og den pågående prisoppgangen kan møte motstand eller en korreksjon hvis volumet fortsetter å synke.

Hva innebærer dette? Dette betyr at det kan føre til et ytterligere prisfall og til tross for økende popularitet og investeringsstrøm til DeFi, kan det være en utfordring for Ethereum å sprette tilbake fra en priskorreksjon på dette tidspunktet i markedssyklusen, ny ATH eller ikke .

Hier ist, warum die nächsten 8 Jahre für Bitcoin wichtig ist

Hier ist, warum die nächsten 8 Jahre für Bitcoin wichtig sein werden

Der Vergleich von Bitcoin mit der traditionellen Anlageklasse und Rohstoff-Assets wie Gold war ein häufiges Thema im Jahr 2020. Doch während die meisten Vermögenswerte nicht mit dem Aufstieg von Bitcoin in Bezug auf den RoI konkurrieren konnten, hat Tesla es besser gemacht. In der Tat, fast 3 Mal besser.

Um die Dynamik in einem größeren Maßstab zu verstehen, hat der neueste Newsletter von Ecoinometrics einen Vergleich bei Bitcoin Pro zwischen mehreren beliebten Aktienoptionen, Gold und Bitcoin durchgeführt. Er wurde durchgeführt, um das Wachstum von Bitcoin auf einer 1-Jahres-, 4-Jahres- und 8-Jahres-Zeitachse zu verstehen

Im 1-Jahres-Chart wird Bitcoin nur von Tesla übertroffen, da das Automobilunternehmen einen Anstieg von 698% im Jahresvergleich verzeichnete. Bitcoin blieb Kopf und Schultern über dem Rest der populären Aktien, wobei Gold, NASDAQ und S&P 500 magere zweistellige Höchststände verzeichneten.

Als der Vergleich jedoch auf die 4-Jahres- und 8-Jahres-Zeiträume heruntergebrochen wurde, waren die Leistungen von Bitcoin unangetastet. Bitcoins Gesamtrendite betrug 2675% über den 4-Jahres-Zeitraum, wobei Tesla mit 1406% auf Platz 2 und AMD mit 695% RoI auf Platz 3 landete.

Im 8-Jahres-Chart war es ein kompletter Stillstand, der seinesgleichen sucht

Tesla, NVIDIA, AMD und Amazon verzeichneten respektable Renditen, wie in der Grafik zu sehen ist, aber das beispiellose Wachstum von Bitcoin von 202.328% war geradezu phänomenal.

Nun, die Zahlen mögen darauf hinweisen, dass es in den letzten 8 Jahren keinen besseren Vermögenswert als Bitcoin gab, um darin zu investieren, aber es ist wichtig zu beachten, dass die nächste 8-Jahres-Periode als noch wichtiger angesehen werden sollte. Hören Sie mir zu.

Was Bitcoin in den letzten zehn Jahren in Bezug auf Marktkapitalisierung und Kurswert geschafft hat, ist wirklich unerreicht. Es ist jedoch auch wichtig zu beachten, dass sein anfängliches Wachstum zu einer Zeit kam, als niemand auf Bitcoin geschaut hat.

Es ist nicht weit hergeholt zu behaupten, dass es im Jahr 2012 eine schwierige Aufgabe gewesen sein muss, an Bitcoin heranzukommen oder auch nur eine große Anzahl von Investoren davon zu überzeugen, Kapital in ihn zu stecken. Viele Berichte deuteten sogar darauf hin, dass vor 2014 eine größere Anzahl von Coins verloren ging, da die privaten Schlüssel nicht richtig verwaltet wurden und BTC in großen Mengen gemined wurde.

Während der Preisanstieg in den letzten 3-4 Jahren auf den Handel mit Privatkunden und institutionellen Anlegern zurückzuführen ist, war es davor eine Kombination aus einem systematischen Halbierungszyklus mit frühen BTC-Befürwortern/Investoren, die ein Risiko mit dem digitalen Vermögenswert eingingen.

Zeit, die Lorbeeren der Vergangenheit zu ernten

Im Jahr 2021 wird Bitcoin einen zweiten Aufwärtszyklus abgeschlossen haben und sich über dem Preisniveau von 20.000 $ konsolidieren. Damit wird die Wachstumsrate der letzten 8 Jahre irrelevant und die kommenden 8 Jahre werden wichtiger in Bezug auf die Akzeptanz und die weltweite Nutzung. Wenn Bitcoin es schafft, auch nur 5% des Wachstums der letzten 8 Jahre zu erreichen, wird es die Marktkapitalisierung von Gold um ein Vielfaches absorbieren und dann wird es ein Chart sein, der einen Vergleich wert ist.

Do your own research: where can you find good bitcoin data?

How can someone interested in Bitcoin read stories from the data? And where can you find useful data? The first steps to do this should be explained in the article.

A motto closely related to the crypto scene: Don’t trust, verify . Don’t just trust, check. An attitude that is reflected in the abbreviation DYOR ( Do your own research ) , which is also known in the Bitcoin ecosystem . After all, it’s not just about disclosure, but about turning every BTC-ECHO reader into a responsible crypto citizen. Therefore, two of the data sources used are presented in this article. For today we are focusing on Bitcoin.

One word in advance: I use the programming language R for data analysis. If you want to learn more about the powerful statistical programming language, you can learn a little more in this video . However, all of the data sources mentioned below are also accessible with other tools such as Python.

TradingView: Great source for raw data

TradingViewis known far beyond the Bitcoin scene. The course analyzes on our side are generally carried out using this powerful platform. TradingView is a fantastic platform for making charts. What few people know: A first step in juggling data can be to export the TradingView data. With Pine, TradingView has a very powerful programming language, which we presented in this article .

But what if you want to combine external data with the TradingView data? For a few months now, the platform has offered the option of data export. One click makes it possible to export both the Bitcoin rate and all indicators in the layout as a csv file:

Exporting data from TradingView made easy

CSV- Files are tables in which all values ​​in a line are separated by commas. This gives you an easy-to-read format that can also be imported into Excel or the like, for example.

The future analyst can now work with this data. He would be able to read them into R with a simple command:

daten <- read.csv(„Pfad/zum/Dateinamen.csv“)

Of course there are other options. Many R fans swear by Tidyverse, a group of libraries for R that makes working with data extremely easy. The Tidyverse is also particularly reflected in the Bitcoin reports. However, it would now go beyond the scope to go into these in more detail.

Juggling with Bitcoin price data from Coingecko

One disadvantage of the above approach: processes cannot be automated. Why do you work with programming languages ​​when you have to click three more times to continue processing the data? More direct access to the courses would be helpful here.

For the analyst from Bitcoin & Co., it’s often not just about prices. The development of supply and market capitalization is always the focus of the analysis. TradingView can also help here and the amount of available data is growing. But analysts are dependent on additional data sources in this regard.

Working with programming interfaces, so-called APIs, is ideal here in many places. API stands for Application Programming Interface and, in simple terms, enables access to data from the command line or from a program. Coingecko is an example of such a platform with API. The nice thing is that you don’t currently have to register for them.

These days the price of bitcoin is setting new absolute records.

In fact according to the data reported on CoinMarketCap, new all-time highs have been recorded in the last three days.

After reaching $24,200 for the first time in its history, on December 20, the price seemed to have settled in a range that went from $22,000 to $24,000, but on Christmas Day a new rapid and powerful rise began.

On December 25, a new all-time high was touched at $24,700, surpassed the next day by a new all-time high at $26,700.

Yesterday, Sunday, December 27, 2020, the symbolic wall of $27,000 was also knocked down, recording a new all-time high even above $28,200.

Therefore, it was an increase of almost 20% in three days, followed by a rebound towards $27,000.

Compared to the beginning of the month, when the price was at $19,600, the increase in value was more than 40%, and compared to the beginning of November it is more than 100%.

That is, in less than two months the price of bitcoin has more than doubled, while compared to a year ago it has more than tripled.

Bitcoin, the record price makes the market cap fly too

Among other things, in these days another psychological barrier has been broken down, namely that of half a trillion dollars of market capitalization.

In fact, bitcoin’s market cap is currently over 500 billion dollars, which is not much lower than that of Facebook and Alibaba, in line with that of Tencent, higher than that of Warren Buffett’s Berkshire Hathaway, and much higher than that of companies like Visa, Walmart or Nestlé.

Note, however, that other cryptocurrencies have also shown significant growth in value over the past week, although not at all-time highs.

In particular, Ether gained 13% in seven days, as did Litecoin, while Polkadot and Monero gained 7%.

On the contrary, XRP goes against the trend, losing almost 50% due to problems with the SEC. Bitcoin Cash and Chainlink also lose between 3% and 4%, while Cardano and Binance Coin hold up.

Uniris: between major advances and continuous innovation

The frantic pace on which Uniris is engaged is not weakening. Author of an innovative solution, guaranteeing a new kind of security system based on the venous system. The French company announces its regular progress in a newsletter which has become extremely popular .

This promotional item is offered to you in collaboration with Uniris.

A recognized technological solution

After winning the CSF label , Ethereum Code offered itself a major communication coup. The company appears in the short list of companies likely to ensure the security of the Olympic Games in Paris in 2024. The ARCHE validation consensus , specific to Uniris technology, continues to assert itself. The promise to swap passwords for a swipe of a finger, and access its usual application panel has never been closer.

In its last newsletter , published on December 20, the company highlights its attribute of “condition of origin” , promising a unique and secure authentication for users.

“It is possible in the PoW to select a device category to find the associated cryptographic key. Thus, the addition of an additional “ biometric” type condition ensures optimal security of transactions ”

Uniris Weekly Newsletter N ° 51

For example, it will now be possible for any voter to guarantee their identity via a reliable and secure biometric system . There is no doubt that administrations will have to adopt this type of technology in the near future. In fact, in addition to increased productivity and substantial savings, data security has become a major strategic issue.

A flood of new products

The “original condition” is not the only novelty announced. The company has indeed worked on a major improvement, which completes the smart contracts deployable on Uniris. Indeed, a smart contract interpreter will significantly improve their capacity, thanks to the introduction of the following attributes:

Code detection
Generation of the transaction based on smart contract triggers: choice of the possible frequency (day, time, etc.)
Utility function calls: regular expression, hash, and others.

This one factor could give new impetus to the Bitcoin rally

Bitcoin has seen immense volatility in the past few days. The coin is currently trading for $ 13,800 – above the lows of $ 13,200 on Monday, but below the daily highs of $ 14,100 and the weekend highs at the same level.

Bitcoin is up about 1.5% in the past 24 hours – and some analysts think that because of the futures market, BTC is poised to move higher.

An analyst has shared data that the cryptocurrency futures markets are clearly declining right now.
The problem, the analyst said, is that many of these shorts are bearish, while the funding rate is also negative.

This could lead to what is known as a short squeeze, which is driving Bitcoin high.

Futures data shows: Bitcoin could move even higher

Bitcoin has seen immense volatility in the days leading up to and during the US presidential election. The leading cryptocurrency is currently trading for $ 13,800, above Monday’s lows of $ 13,200 but below the daily highs at $ 14,100 and weekend highs at the same level.

Bitcoin has risen slightly over the past 24 hours, while volatility has left the cryptocurrency fluctuating between $ 13,000 and $ 14,000.

Analysts say Bitcoin is likely to continue to rise in the coming hours and days. A crypto asset analyst shared the chart below, according to which the futures markets of the crypto currency are clearly declining at the moment.

The problem, the analyst said, is that many of these shorts are in bearish while the funding rate is also negative. This greatly increases the chances of Bitcoin being subject to a short squeeze, which drives prices up quickly.

“In the meantime, Binance’s funding has been consistently negative for the past few days, and the L / S ratio has also decreased (more shorts). It looks to me like a pile of over-indebted shorts is under water. „

Chart of the price development of BTC in the last few weeks with analysis by the crypto trader Byzantine General (@ByzGen on Twitter). Source: Byzantine General: BTCUSD from TradingView.com
The funding rate is the fee with which long positions regularly pay short positions in order to maintain the future price of the spot market. Negative refinancing rates combined with rising prices increase the chance of a short squeeze.

Post-election uncertainty could spur correction

The election uncertainty could mean that this scenario does not come to fruition.

Several analysts have noted how uncertainty surrounding the US election due to different economic and financial policies could lead to movements in markets like the dollar and bitcoin.

For one thing, BTC has already risen by $ 400 from the election – but also crashed by $ 300.

MakerDAO’s flash loan could weaken tokenized governance

A recent MakerDAO governance vote was influenced by a flash loan.

The Maker community offered to burn MKRs to prevent this type of incident from happening again

The systems for many DeFi protocols remain centralized, although they claim the opposite.

The Trust Project is an international consortium of news organizations based on transparency standards.

Decentralized funding protocols strive to gain recognition of governance tokens. However, new forms of weakness are appearing in the system, and MakerDAO is the latest “victim”.

A recent vote on the governance of MakerDAO was marred by a flash loan that allowed a dominant party to influence the outcome and pass the proposal. The team that made the proposal essentially wanted to whitelist access to MakerDao’s course oracle, and therefore took out a flash loan to manipulate the process.

A flash loan is a loan that is taken out and repaid during the same transaction. It has been used in the past to conduct arbitrage trades , most recently on Harvest Finance. In this case, the flash loan was used to influence the token governance vote.

The team detailed these maneuvers on the protocol blog , with the following question: Should the Maker community burn affected MKRs in the event of a governance attack that leads to a redeployment of the protocol?

Does token governance really work?

A DeFi platform named Protocol B wanted to be whitelisted and therefore submitted the proposal on October 23. On the 26th, several transactions took place, allowing the team to secure enough crypto collateral to borrow $ 7 million in MKR, which was used to vote and pass the proposal before being repaid.

While it was not entirely malicious, as the team was transparent in its actions, the move reignited the debate on token governance. Maker has thus launched another proposal to prevent any further exploitation of flash loans.

The purpose of this message is to discourage holders of large amounts of MKR from providing MKR liquidity on lending platforms and AMM platforms until Maker’s governance contracts can be replaced with versions that cannot be attacked by flash loans.

Chris Blec, a finance industry insider who had previously criticized token governance, was just as vehement in the face of this new fiasco.

What a mess.

With each passing day, I am more and more skeptical of tokenized governance.

It’s time for us to start testing tokenless governance. And to reward users who continuously use the product with non-transferable votes.

Less favors for the whales. Power to users.

Power to the whales

The first Uniswap governance vote was also marred by controversy. Its author, Dharma, was one of the biggest carriers of tokens. At the time, he wanted to reduce the quorum, which would give him even more control over the voting process.

Fortunately, in the interest of further decentralization, the proposal did not meet a quorum. She nevertheless garnered 98% of the vote (from a handful of whale accounts).

Other protocols that claim to be decentralized, such as SushiSwap, are also governed by whale accounts. This raises questions about the effectiveness of tokenized governance systems.

As BeInCrypto has previously reported, most DeFi governance systems mirror those of corporations , with large carriers acting as leaders and CEOs.