Monetary Policy
Ongoing coverage on Monetary Policy.
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Harmony mint exploit wipes 40% off ONE, but Bitcoin holds near $64,000 with U.S. CPI in view
The Harmony blockchain experienced an exploit resulting in the minting of approximately 4 billion ONE tokens, causing the token's value to drop by 40%. Despite this significant event, Bitcoin's price remained stable near $64,000, indicating the market's focus on upcoming U.S. CPI data and broader economic factors rather than the Harmony incident. The exploit's limited impact on Bitcoin suggests a compartmentalization of risk within the cryptocurrency market.
Ethereum Researchers Push Plan to Burn Staking Rewards Down to Zero at 60 Million ETH
A group of Ethereum researchers has proposed a plan to gradually burn all staking rewards as more ETH is staked, aiming for net issuance to reach zero when half of the total supply is staked. This proposal, intended to increase scarcity and bolster ETH's valuation, has sparked debate within the cryptocurrency community regarding its economic implications for DeFi and individual stakers. The plan faces a tight deadline for inclusion in Ethereum's upcoming Hegotá network upgrade.
Ethereum Devs Float a Hard Cap: Issuance Drops to Zero at 60.25 Million Staked ETH
A proposal from Ethereum researchers suggests implementing a hard cap on staked ETH, aiming for net issuance to reach zero once approximately 60.25 million ETH is staked. This mechanism would burn validator rewards proportionally as staking increases, with the burn reaching 100% at the cap. The proposal has sparked debate regarding its impact on DeFi borrowing strategies and potential centralization risks.
Asha Sharma joins Federal Reserve advisory task force days after laying off thousands at Xbox
Xbox CEO Asha Sharma has been appointed to a new US Federal Reserve task force focused on productivity and jobs, specifically examining the economic impact of artificial intelligence. This appointment follows Xbox's announcement of significant layoffs affecting thousands of employees and several game studios, including Double Fine and Ninja Theory.
