GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Base to Enhance Decentralization with Optimism’s Fault-Proof System

- TeraWulf Plans $350 Million Raise for Share Buyback

- zkLink Postpones Token Vesting to April 2025 for Market Strategy

- Consensys Appeals for Pro-Web3 Regulation in Open Letter to U.S. President

- Chainlink Expands to Bitcoin With Botanix Labs and Spiderchain Partnership

- Popcat Surges to All-Time High, Overtakes Bonk and Floki in Market Cap

Base to Integrate Optimism's Fault-Proof System to Boost Decentralization and Empower Community Oversight 

Coinbase’s layer-2 network, Base, is preparing to launch Optimism’s fault-proof system on October 30, marking a significant step towards greater decentralization. This system, also known as fraud proofs, allows users to independently verify withdrawal transactions without relying on centralized third parties. By enabling community members to monitor and challenge invalid transactions, Base aims to foster broader participation and reduce reliance on central authorities.

Currently, Base's state is determined by centralized proposers who submit output roots, but the integration of Optimism’s permissionless output proposals will change this dynamic. Community members will now have the ability to propose and challenge transaction data, making the network more transparent and secure. The fault-proof mechanism, already implemented on Optimism, ensures that faulty or fraudulent claims do not make it to Ethereum’s layer-1 blockchain. Built using the OP Stack from OP Labs, Base’s adoption of this system reflects a push towards a more community-driven, decentralized ecosystem within the Ethereum landscape.

Bitcoin Miner TeraWulf Aims to Raise $350 Million via Convertible Notes to Fund $200 Million Share Buyback Program

Bitcoin mining firm TeraWulf is planning to raise $350 million by offering convertible senior notes, with the proceeds aimed at funding a $200 million share repurchase program. The notes, maturing on February 1, 2030, include an option for initial buyers to add $75 million within 13 days of issuance. The specific rates for the notes will be announced later. The funds will primarily support the repurchase of common stock shares, as well as cover general corporate expenses.

TeraWulf’s board has authorized the company to buy back up to $200 million of outstanding shares through December 31, 2025, reflecting confidence in its business strategy and financial health. This move follows the firm’s recent sale of its 25% stake in the Nautilus facility for $92 million. TeraWulf mined 176 bitcoin in September, slightly down from August’s 184. Despite challenges from increased mining difficulty, which surged by 3.9% this week, TeraWulf's stock has soared 178.26% year-to-date, closing at $6.40 on Wednesday. With a market cap of $2.44 billion, TeraWulf is the fifth-largest public bitcoin miner.

zkLink Delays Token Vesting Schedule by Six Months to Strengthen Market Position Ahead of Key Product Launches

zkLink Core DAO has announced a six-month delay in its token vesting schedule, pushing the commencement from October 22, 2024, to April 22, 2025. This decision impacts 40.5% of the total ZKL token supply, including tokens for early private round purchasers, team members, and advisors. Despite the delay, the total vested token amount will remain unchanged. The postponement is part of a broader strategy to align the firm’s market entry with upcoming product launches, such as magicLinks and magicPortal, which aim to enhance web3 onboarding through seamless, zero-knowledge proof logins.

zkLink hopes the extended timeline will better align with market conditions, ensuring long-term success for both the company and its investors. The team emphasized that this delay is designed to prevent any negative impact on the token's market value and fortify zkLink’s position in the competitive web3 infrastructure space. Notably, CoinList token buyers and tokens reserved for ecosystem development and community treasury are unaffected by the new vesting schedule. The ZKL token serves as both a governance and utility token for the zkLink protocol, with its total supply capped at 1 billion tokens.

Consensys Urges Pro-Web3 Regulation in Open Letter to Future U.S. President, Advocates for Clear Blockchain Rules

In an open letter addressed to the next U.S. president, Ethereum-focused blockchain developer Consensys has called for a regulatory framework that supports blockchain innovation. Published on October 24, 2024, the letter urges the incoming administration to prioritize regulatory clarity, safeguard consumer protection, and foster technological growth in the blockchain space. Consensys, the company behind MetaMask and Infura, emphasized that the U.S.'s fragmented approach to crypto regulation leaves room for bad actors to thrive and discourages legitimate participation.

The company highlighted the need for Congress and regulatory bodies to collaborate on transparent guidelines to promote fair blockchain practices and innovation. The letter underscores the importance of pro-Web3 regulation for advancing progress, accountability, and equitable access in the digital space. Consensys is not alone in this appeal; earlier in October, 21Shares called on European regulators for clearer rules regarding cryptocurrency investments, highlighting the global demand for regulatory reform in the crypto sector. Consensys concluded by urging the future U.S. president to adopt these measures, ensuring a brighter future for blockchain technology and the individuals who rely on it.

Chainlink Expands to Bitcoin, Partnering With Botanix Labs and Spiderchain for Layer-2 Shift and Cross-Chain Integration

Chainlink has made its first venture into Bitcoin, partnering with Botanix Labs' layer-2 network Spiderchain, marking a significant step for the world's original blockchain. This integration, announced on October 24, 2024, will enable Bitcoin to leverage Chainlink’s oracle services through the Chainlink Scale program. Spiderchain, built by Botanix Labs, will now have access to real-world data from Chainlink, which previously supported major blockchains such as Ethereum, Solana, and Fantom.

This collaboration is set to bring features like smart contracts, rollups, and cross-chain functionality to Bitcoin, which have been largely absent from the network until now. Chainlink's Cross-Chain Interoperability Protocol (CCIP) will also be integrated, allowing token transfers across different blockchain ecosystems. Spiderchain's goal is to make Bitcoin compatible with Ethereum Virtual Machine (EVM) layers, enabling Ethereum-based applications and smart contracts to operate seamlessly on Bitcoin. This partnership highlights ongoing efforts to modernize Bitcoin and integrate it with the wider blockchain economy, as layer-2 solutions become increasingly important across different networks.

Popcat Hits Record High, Surpassing Bonk and Floki Amid Soaring Market Cap and Whale Accumulation

Popcat, the cat-themed meme coin, has surged to a new all-time high, surpassing popular meme coins Bonk and Floki in market capitalization. On October 24, 2024, Popcat's price reached $1.66, marking a 17.8% increase in the last 24 hours and an impressive 80.3% rise over the past 30 days. Its market cap now stands at $1.61 billion, up significantly from $457 million in September. This rally is driven by a sharp increase in futures open interest, which has jumped from $46.91 million in early September to a peak of $274.8 million.

Whale activity has also played a pivotal role, with several major wallets accumulating significant amounts of Popcat. One whale was even observed selling Bonk tokens to buy Popcat. The rise in meme coin outflows from centralized exchanges is viewed as a bullish signal, with investors opting to hold their tokens long-term. Technical indicators, such as the MACD's bullish crossover and the Average Directional Index (ADX) of 37.48, confirm the coin's strong upward trend. Market analysts remain optimistic, with predictions of potential resistance at $0.2768 and further price targets at $0.7416 and $1.4926, indicating Popcat's continued bullish momentum.

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