Book - Securing Digital Rights for Communities | Chapter 17. Algorithmic Stable Coins on Layer I

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Alright, let's talk about Stablecoins then, how does that work?

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As we discussed, in order to create a stablecoin it can't be actually backed by physical goods

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at all, nothing that can be seized, nothing that's in the physical realm, it has to be

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backed by something digital that no one controls.

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Why is that?

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Because if they can get it then they might as well, you might as well just have it at

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your house because they're just going to come, it defeats the purpose of censorship

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resistance because it becomes centralized, therefore if you have everything in a centralized

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bank or in a centralized location like you're holding gold or some shit, you have to trust

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the person holding the thing first of all, and you have to trust that they won't be pressured

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by outside forces to censor or take away.

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So what's US dollar tether backed by?

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Supposedly it's backed by dollars.

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Dollars and treasuries in US dollars?

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Yeah, yeah.

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So they're seizable?

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I mean anything, I mean there's not, like there's, everything's seizable except crypto.

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So it's like you need, or you're trusting somebody, the great thing about crypto you

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can kill two birds with one stone, you don't need to trust anybody and it's not seizable.

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With Hive you have a protocol that is run autonomously, it has a natural incentive

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system that isn't centralized, therefore you're going to have people always popping up all

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over the world to compete to store.

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To have an algo stablecoin, you, what I like to think of Hive is, is digital real estate,

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you're able to store text, I.e. you're able to build your own digital realm online, whether

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it be a community or whatever it is, whatever you need to store is going to be there, it's

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a foundation.

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From there you can parameter that, you can say, hey, we want to section off some for

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a algo stablecoin.

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You have to parameter it in the correct way where there is something called a haircut,

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that stablecoin can never get larger and marketable.

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Yeah.

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So what's the difference between a market cap and the underlying principle, the digital

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real estate?

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So the digital real estate's always here, a lot of cushion, let's say this is 100 and

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then you're going to have the stablecoin from 10 to 30, max 30, you can debate that, maybe

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you say 20, you need to be flexible.

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It becomes more about liquidity at the end goal than it is market cap, you want to see

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a lot of it locked up, you want to see a lot of a bonding system in the future, things

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like this.

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And you're thinking about actually growing this thing out.

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But just for a basic actual model that works, where people can spend dollars all over the

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world, you need to back it by something, I can only think of digital real estate, I can

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only think of something that is inherently valuable that can't be seized.

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And you parameter that into a dollar, you're basically saying this is worth a dollar because

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you can redeem it for X amount of digital real estate at the cost at the time.

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Now you have a dollar that can't be seized, that lives on top of a transaction layer that

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doesn't require fees, so you have a dollar that can be sent instantly, that clears instantly

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all over the world, that you can self-custody, you don't need to rely, it's actually inconvenient

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to rely on a middleman.

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I'm trying to think of where would I hold my HBD, if I want to stake it, there's nothing

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a middleman can really offer me.

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The beautiful thing about Hive is most people are self-custodial.

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They're not going to take it.

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They're not going to take it.

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If you look at other chains, people don't even really know what that means.

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Most people don't use the base layer on these chains, they're too expensive, they'll find

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a centralized layer two to use, or a highly centralized layer one that is VC backed with

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low fees, fat nodes.

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You got to pay the piper somewhere on his computation layers, but yeah, talking back

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about Algo stablecoins.

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I think if you have fees, I think the biggest no's are high fees, it defeats the purpose,

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Because a stable coin is not just a unit of account to barter with.

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It's also a way to create an incentive system where it's like, I pay you $10 for doing $10

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worth of work.

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You need that.

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You can't just say, I'll pay you $10 and it's worth $5, like, you know.

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Tomorrow.

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Exactly.

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So it's like, to create an economy, you need a stable coin, period.

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That's why the dollar is so goddamn powerful and so valuable.

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That's why everyone wants it.

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It's what makes the world go round.

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If we didn't have it, like, if the dollar was worth this one day and next, and that

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was like our main unit of account, everything would be crazy.

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So algo stable coin is absolutely necessary.

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It's a two pronged approach, creates economies for barter, it creates the incentive mechanism

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in which to pay people for doing work.

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So I think it's inherent, I think it is one of the pillars absolutely necessary to create

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a parallel economy.

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Yeah.

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Yeah.

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Just touching briefly on a couple of things that Dan said and then going on my own spiel

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on this.

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So the dollar, why do you want a dollar?

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Because people can't understand the fluctuating crypto price, right?

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To do trade.

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If you want to go give normal people this currency to spend, whatever you're creating

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and get them to go spend it at shops and the price is fluctuating by 20% each day, they're

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not going to use it.

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Businesses aren't going to accept it.

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And then this assumption that Bitcoin is going to eventually stabilize, that's a big, that's

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a big if.

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It might not.

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And if it does, when?

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How long is that going to take?

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Are we going to suffice until then?

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Is the dollar system going to be enough where they're going to lock us all in our houses

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again?

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Right?

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So you want to have freedom, you want to have freedom until that point, assuming Bitcoin

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ever does stabilize.

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So then how do you do it?

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Like Dan was touching on earlier, you need to have a dollar.

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Why do you need to have a dollar?

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If any of you have ever driven past San Diego port, Naval port, you'll understand why you

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need to have a dollar.

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That is not going anywhere, right?

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This is not going anywhere.

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This is not going anywhere.

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This is not going anywhere.

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This is not going anywhere.

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This is not going anywhere.

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This is not going anywhere.

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If you need to have a dollar, that is not going anywhere, right?

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The scale, the immense scale of the US Navy is so tremendous, it's almost difficult to

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explain with words.

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And it's difficult to comprehend compared to any other Navy in the world times at least

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three or four.

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And so dollar trade will continue.

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People talk about the petrodollar.

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The petrodollar is about, I don't know, four or $500 million worth of trade a day, which

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was a big thing back in the 70s when it was started.

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But dollar trade ever.

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Dollar trade every day is in the $4, $5, $6 trillion, right, Forex, swap contracts,

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various different types of trade, mining, all sorts of stuff that goes on trade in dollars

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that's way, way, way, orders and orders of magnitude beyond the scale of the petrodollar.

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So it's not, even if the petrodollar went away, the dollar's still not going away.

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So a lot of things have got to go wrong to get rid of the dollar.

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And so the beauty of these systems is that you can peg.

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You can choose your own stable value because you always print in, like Dan says, the digital

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real estate or as I might call it, the social token that you create from these ecosystems.

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It's a dollar's worth of that social token.

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So you're always backing it with your unit of account being a dollar worth of that social

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token.

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Now, if the dollar did go away and something else came to replace it, you could just swap

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the peg to that.

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So you'll always have some form of recognized stable.

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Unit of account and an exchange, regardless of whether the dollar's successful in the

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future or not for the foreseeable future, it's, it's the dollar.

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So we, the currency that we use is called high by dollars, HBD, um, HBD is a bit of

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a shame because it needs rebrand into H dollars, I think, but it is what it is for now, but

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it's $1 worth of Hive or $1 worth of this social token or a Dan calls it $1 worth of

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digital real estate.

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And it always clears to $1 worth of digital real estate.

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And the reason it can be.

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The reason it can do that is because it's very, very, very, very small compared to the

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size of the governance or the digital real estate token that is issued as part of these

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ecosystems.

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And so you can always guarantee that you're going to get $1 worth of the crypto when you

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transfer the stable coin back to the original crypto that it's backed by.

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And that allows you to be completely digital and unbacked by dollars.

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It's backed by the fact that you have a net, a network effect, social, um, e-commerce,

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um, ecosystem where you have to stake a little bit of the token to get access to the resources

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in the system.

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The more network effect you get, the more staking of the token you get, the more demand

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for the token you get.

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That drives the economy of the token.

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It makes it sustainable.

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And therefore you can back a stable coin with that.

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Um, the, these are critical elements to understand as part of this, this philosophy.

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And a lot of people in crypto again, haven't even come close to touch on this.

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And the important thing here, again, as we mentioned in the previous paragraph is that

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it gives you sovereignty because it gives you a base layer.

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It gives you a base layer.

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It gives you a base layer.

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It gives you a base layer.

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It gives you a base layer.

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It gives you a base layer.

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It gives you a base layer.

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And the important thing here, again, as we mentioned in the previous paragraph, is that

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it gives you sovereignty because it gives you a base layer stable coin against which

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to trade the rest of your token ecosystem, without having to use even the DEX or, uh,

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a centralized exchange.

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Then what you do is you create money.

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You get the community to vote on a proposal that creates money that you put either side

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of the stable coin to stabilize it.

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And it's, again, this is all done in turning on the base layer.

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You don't need to cut any deals with any investors.

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You don't need to.

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with any exchanges or DEXs or anything like that, the community creates the selling item

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above the market, which is HBD, and it creates the buying item below the market, which is

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Hive, or the governance token, and it puts them essentially as liquidity pools to stabilise

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the price of the stablecoin.

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It's actually a stable-ish coin that it creates.

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It will never fully be a stablecoin, because you always have large liquidity cash-outs

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that are larger than the stability that you're providing on either side of the market.

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Let's say your normal trade is someone's doing between $50 and $2,000 to exit a day.

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You might need $40,000 or so either side of that to make sure it remains stable, to cope

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with a typical high peak in demand day.

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But if you get serious size selling, you can disconnect from the peg, and it takes the

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market some time to come back.

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You can either add more.

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You can add more liquidity by creating more money from the DAO, from the ecosystem, or

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you can wait.

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You can bide your time.

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There's been several examples in the past where these stablecoins have de-pegged, but

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they always have come back.

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I think in the last six years, there's been five examples where you get a de-peg, more

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than 20%, but they still always come back.

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And that is because there's several controls in place.

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Also pegged to the upside as well.

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Yep, pegged to the upside and the downside.

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Yeah, so you can get breaks on the upside.

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It's a stable issue.

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You can get a stable coin that's worth $15 sometimes, and it comes back.

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And as the technology matures, these breaks away from the pegs are getting less and less

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and less.

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You can also get a stable coin that drops to 80, 60 cents instead of staying at $1.

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But there's several controls in place to stop this from happening.

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I don't know if you want to come in before I go into those controls.

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Well, I mean, just talking about why $1.

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It's like you were talking about the Navy.

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It's like, so you have centralization, which is always going to win in terms of efficiency

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and just brute forcing things.

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So with centralization, it tries to brute force something natural.

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Yes, it makes it a bit unnatural.

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But where, so there's always balance.

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So for every, as centralized as you become, you become just as decentralized.

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You eventually create balance.

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Sometimes things are out of balance, and you have what we see in the world that's unstable.

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But eventually, that unstableness creates.

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It's sort of the hard times, weak men or strong men sort of thing.

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You have centralization at its peak, where it's created the apex asset in the dollar,

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where it's dominant all over the world.

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We've never really quite had anything like this except maybe, say, gold.

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But this thing really has a strong grip over the entire world.

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Why would we recreate that?

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That's not where, like, decentralization would always lose if it had to compete.

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Decentralization doesn't compete.

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It creates a mirror world.

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So it's kind of like a fuck you, and it's capped to about 50%, which is balance.

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Because the fuck you can't become bigger than the one you're saying fuck you to, right?

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Because you can't become stronger than the dollar, right?

234
00:12:26,280 --> 00:12:27,500
Because you're pegged to the dollar.

235
00:12:27,500 --> 00:12:29,460
So it's always sort of like a haircut there.

236
00:12:29,940 --> 00:12:36,060
So if you look at this just from a balanced point of view, we have extreme centralization here.

237
00:12:37,300 --> 00:12:40,520
Something like Hive just takes the mirror and says, what's your grade?

238
00:12:40,520 --> 00:12:42,340
Greatest asset, the dollar, thank you.

239
00:12:42,480 --> 00:12:43,180
We'll take that.

240
00:12:43,900 --> 00:12:45,160
We'll take that parameter.

241
00:12:46,180 --> 00:12:50,040
Free speech, front ends, whatever we need, we'll take all of that.

242
00:12:50,160 --> 00:12:51,200
Oh, you know, even the text.

243
00:12:51,320 --> 00:12:54,580
Everything that we've come to from the centralization world that we've learned,

244
00:12:54,640 --> 00:12:56,500
we've taken it and just tried to mirror on it.

245
00:12:57,300 --> 00:12:58,900
And we kind of leapfrog.

246
00:12:58,900 --> 00:13:00,400
We don't compete with centralization.

247
00:13:00,560 --> 00:13:01,620
We leapfrog off of it.

248
00:13:02,100 --> 00:13:05,080
And most people are trying to think, oh, let's replace the dollar this and that.

249
00:13:05,160 --> 00:13:06,380
It's like, no, no, no, no.

250
00:13:06,440 --> 00:13:08,700
Let's find a way to use the dollar where it can't be seized.

251
00:13:08,940 --> 00:13:10,240
Let's use the dollar in our world.

252
00:13:10,520 --> 00:13:11,620
In the people's world.

253
00:13:11,940 --> 00:13:12,980
That's all this is.

254
00:13:13,060 --> 00:13:13,860
So we're not competing.

255
00:13:14,020 --> 00:13:17,960
We're just riding on the coattails, riding on the shoulders of these centralized giants.

256
00:13:18,380 --> 00:13:19,780
And we're just kind of like, oh, that's nice.

257
00:13:19,840 --> 00:13:20,280
That's nice.

258
00:13:20,360 --> 00:13:20,900
We'll add this.

259
00:13:21,000 --> 00:13:21,960
Why not change this parameter?

260
00:13:22,080 --> 00:13:23,300
Oh, the dollar's not good anymore.

261
00:13:23,400 --> 00:13:24,120
It's this asset.

262
00:13:24,660 --> 00:13:26,140
Let's just, you know, peg to that.

263
00:13:26,140 --> 00:13:31,940
So people who don't think about that aren't thinking down the line for 100 years.

264
00:13:32,260 --> 00:13:33,860
Because the dollar's not always going to be.

265
00:13:34,040 --> 00:13:36,220
There's going to be something in the future that evolves.

266
00:13:36,320 --> 00:13:37,800
The dollar's going to morph into something.

267
00:13:37,980 --> 00:13:39,080
You've got to be flexible.

268
00:13:39,760 --> 00:13:40,300
You can't just.

269
00:13:40,800 --> 00:13:42,260
You know, maybe the dollar is always is.

270
00:13:42,320 --> 00:13:43,820
And maybe that's the highest chance percent.

271
00:13:43,960 --> 00:13:45,380
But you can't just guarantee that.

272
00:13:45,620 --> 00:13:53,220
So if you're going into a place where there's even a few percent chance that you're fucked and there's no recourse, you're in a bad situation.

273
00:13:54,360 --> 00:13:57,260
Because eventually, over the amount of days, that percent's going to hit.

274
00:13:57,460 --> 00:14:01,000
And that's what a lot of these centralized stable coins are doing.

275
00:14:02,220 --> 00:14:06,900
USDC, USDT, they're backing themselves with real physical dollars, seizable in U.S. banks.

276
00:14:07,600 --> 00:14:10,440
If that dollar does devalue, which it seems to be doing over.

277
00:14:10,720 --> 00:14:12,840
Many decades, then that's what's going to happen.

278
00:14:13,040 --> 00:14:14,960
Whereas on a stable coin, it's not backed by dollars.

279
00:14:15,160 --> 00:14:16,200
It's tied to a dollar.

280
00:14:16,400 --> 00:14:20,520
Eventually, the community can pivot to something else that's more stable, if it so wishes.

281
00:14:20,720 --> 00:14:22,800
Yeah, I think they know about Algo stable coins.

282
00:14:23,000 --> 00:14:30,120
I'm very sure something like Luna was a psyop where it was meant to fail because we saw a mile away all the red flags

283
00:14:30,320 --> 00:14:33,600
kind of scare people off from the idea to think that you can't actually do this.

284
00:14:33,800 --> 00:14:37,120
Yeah, it really, really discredited very, very possible.

285
00:14:37,320 --> 00:14:39,600
It really discredited Algo stable coins.

286
00:14:39,600 --> 00:14:45,640
Luna was an interesting scenario because we have in the same way that we have parameter coin voting,

287
00:14:45,840 --> 00:14:48,680
whereas proof of stake is unparametered coin voting.

288
00:14:48,880 --> 00:14:50,720
This is parameter stable.

289
00:14:50,920 --> 00:14:53,080
This is parametered Algo stable coins.

290
00:14:53,280 --> 00:14:56,720
Whereas Terra Luna had unparametered Algo stable coins.

291
00:14:56,920 --> 00:14:57,520
Right. Yeah.

292
00:14:57,720 --> 00:15:01,480
Where they let they had no controls, no economic controls over the ecosystem.

293
00:15:01,680 --> 00:15:04,000
So what happened is everyone went crazy about this dollar.

294
00:15:04,200 --> 00:15:06,800
This was it, UST.

295
00:15:07,000 --> 00:15:09,600
And so the price of the market cap of UST,

296
00:15:09,800 --> 00:15:13,880
exceeded the price, the market cap of the base token.

297
00:15:14,080 --> 00:15:16,040
So you had a stable coin that was backed

298
00:15:16,240 --> 00:15:19,040
by a base token, which is a collateral for the stable coin,

299
00:15:19,240 --> 00:15:22,160
which is smaller than the stable coin itself.

300
00:15:22,360 --> 00:15:25,080
Yeah. And it was and the thing it was backed by wasn't useful.

301
00:15:25,280 --> 00:15:26,640
And yeah, that's the other thing.

302
00:15:26,840 --> 00:15:31,840
I think it was backed by the token Terra, Terra Luna, a weak ass computation layer.

303
00:15:32,040 --> 00:15:36,960
It was just it didn't have any economic activity, didn't have any reason to hold it.

304
00:15:37,160 --> 00:15:38,760
So it's just this massive stable coin

305
00:15:39,800 --> 00:15:41,840
with a little base token.

306
00:15:42,040 --> 00:15:45,920
So then someone took a short position out on the stable coin, right?

307
00:15:46,120 --> 00:15:47,520
Depeg the stable coin.

308
00:15:47,720 --> 00:15:51,280
And at the same time, they took a short position out on

309
00:15:51,480 --> 00:15:53,280
with no parameters in and out.

310
00:15:53,480 --> 00:15:56,560
Everything was just it was all instant, easy to get in and out.

311
00:15:56,760 --> 00:15:58,680
No problem. No haircut rule.

312
00:15:58,680 --> 00:16:00,000
No, no economic control.

313
00:16:00,000 --> 00:16:01,480
So you can easily move between the two.

314
00:16:01,680 --> 00:16:03,560
And so what happened is, is they

315
00:16:03,760 --> 00:16:07,680
accumulated a massive position of the stable coin, shorted the main token,

316
00:16:07,880 --> 00:16:09,480
and then they

317
00:16:09,800 --> 00:16:11,960
instantly, which is insane to us to hear.

318
00:16:12,160 --> 00:16:14,320
You can instantly swap your stable coin

319
00:16:14,520 --> 00:16:18,680
at a massive position and force the protocol on the other side to create a

320
00:16:18,880 --> 00:16:26,200
ton of new base layer tokens, Terra Luna, which just inflates the thing to zero.

321
00:16:26,400 --> 00:16:28,720
And then the short position makes huge profits.

322
00:16:28,720 --> 00:16:30,480
It's such it was such a low risk trade.

323
00:16:30,680 --> 00:16:33,600
And because there's no parameters in the ecosystem, there was almost no risk

324
00:16:33,600 --> 00:16:35,400
behind taking that trade. It was a no brainer.

325
00:16:35,600 --> 00:16:36,800
And it was going to happen eventually.

326
00:16:37,000 --> 00:16:39,600
And Dan and I, during the whole time we were saying, this is.

327
00:16:39,800 --> 00:16:41,480
This is just ridiculous. We can't believe people are doing that.

328
00:16:41,680 --> 00:16:46,720
And the whole time you've got HBD sitting over here doing exactly the same thing,

329
00:16:46,720 --> 00:16:49,920
except it's got all these control and safety parameters so that these types

330
00:16:49,920 --> 00:16:52,760
of things can't happen and yet no one pays attention to the industry.

331
00:16:52,960 --> 00:16:55,680
Everyone's just obsessed with whatever's hot right now.

332
00:16:55,880 --> 00:16:57,600
Yeah, there's really only one way to do it.

333
00:16:57,600 --> 00:16:58,720
It's an algo stable coin.

334
00:16:58,920 --> 00:17:01,640
You have to back it by something that cannot be seized.

335
00:17:01,840 --> 00:17:04,880
That is, and the only thing that can't be seized is a crypto asset.

336
00:17:04,880 --> 00:17:08,120
So it really has to be backed by a crypto asset, a native crypto asset.

337
00:17:08,120 --> 00:17:09,440
It can't be backed by, let's say,

338
00:17:09,600 --> 00:17:12,920
Bitcoin because any of the centralized company taking a risk with their Bitcoin

339
00:17:13,120 --> 00:17:15,920
actually has to be backed by the protocol itself.

340
00:17:16,120 --> 00:17:18,720
What you would call a layer one.

341
00:17:18,920 --> 00:17:20,000
Yeah, that's the only way.

342
00:17:20,200 --> 00:17:21,840
So there's

343
00:17:22,040 --> 00:17:25,680
that's where the pillars really come from, because there's one way to do it.

344
00:17:25,880 --> 00:17:29,440
And you can try to argue it, but it's like there's one way to do fucking light.

345
00:17:29,640 --> 00:17:32,640
There's one way to do oxygen and there's one way to do fucking water.

346
00:17:32,840 --> 00:17:35,840
You can't just start throwing shit, mixing it up and get, you know,

347
00:17:35,840 --> 00:17:37,920
you're going to get something different like.

348
00:17:38,120 --> 00:17:39,400
To get an algo stable coin,

349
00:17:39,600 --> 00:17:42,760
it has to be backed by an unseasonable crypto asset.

350
00:17:42,960 --> 00:17:43,920
There's no other way.

351
00:17:44,120 --> 00:17:45,400
If it can be seized, it's fucked.

352
00:17:45,600 --> 00:17:48,200
If it can be seized, it's.

353
00:17:48,400 --> 00:17:51,840
Completely centralized, if you have to trust somebody

354
00:17:52,040 --> 00:17:54,960
with some gold in a field somewhere centralized because you have to trust

355
00:17:55,160 --> 00:17:58,360
that person, it has to be backed by the distributed protocol itself,

356
00:17:58,560 --> 00:18:00,920
I.e. we have a distributed database.

357
00:18:00,920 --> 00:18:04,160
You look at a map and there's just little databases everywhere that's high.

358
00:18:04,360 --> 00:18:09,000
And then we tokenize it and little pieces of that give you access to this.

359
00:18:09,000 --> 00:18:11,720
This bandwidth to post things on this database.

360
00:18:11,920 --> 00:18:13,440
Now you inherently have value.

361
00:18:13,640 --> 00:18:15,200
There's no other way to do that.

362
00:18:15,400 --> 00:18:17,360
You can't just say, all right, we're not going to store text.

363
00:18:17,560 --> 00:18:20,120
We're going to store fucking wheelbarrows.

364
00:18:20,120 --> 00:18:20,760
I don't know what the fuck.

365
00:18:20,960 --> 00:18:23,840
Like, we're just do computation like there's no other way to do it.

366
00:18:24,040 --> 00:18:25,040
It's text.

367
00:18:25,240 --> 00:18:27,840
It's almost like a natural elements kind of freaky.

368
00:18:27,840 --> 00:18:30,480
When you think about it, you have something that's text is unmovable.

369
00:18:30,680 --> 00:18:32,440
It's unchangeable. It's there.

370
00:18:32,640 --> 00:18:34,880
And it's the most important thing in the world right now.

371
00:18:35,080 --> 00:18:38,160
Text, just text, being able to preserve the integrity of this.

372
00:18:38,160 --> 00:18:40,280
To give ourselves freedom of speech.

373
00:18:40,480 --> 00:18:42,160
That's what it starts with.

374
00:18:42,360 --> 00:18:45,160
And then you say, how do we distribute?

375
00:18:45,160 --> 00:18:46,120
It has to be distributed.

376
00:18:46,120 --> 00:18:48,320
If it's in one place, somebody attacks it, it goes down.

377
00:18:48,520 --> 00:18:52,240
So, like, we're, you know, long winded back from the Agro stable.

378
00:18:52,240 --> 00:18:53,720
We're talking about what it's backed by.

379
00:18:53,920 --> 00:18:56,680
But still, these pillars all intertwined with each other.

380
00:18:56,880 --> 00:18:59,520
And when you look at them, there's only one way to do it.

381
00:18:59,720 --> 00:19:02,920
Maybe you do the database in a different coding language.

382
00:19:03,120 --> 00:19:06,080
But the principle is a distributed database.

383
00:19:06,280 --> 00:19:08,080
You now tokenize.

384
00:19:08,360 --> 00:19:10,480
You now parameterize it into a dollar.

385
00:19:10,680 --> 00:19:16,120
The dollar is backed by a portion of the market cap where it can't exceed that market cap.

386
00:19:16,320 --> 00:19:17,440
They'll be cut off.

387
00:19:17,640 --> 00:19:21,040
So now you've created a dollar.

388
00:19:21,560 --> 00:19:23,920
You just go down the line and you start

389
00:19:24,120 --> 00:19:28,320
to realize that, like, this is sort of a blueprint, like, to evolve as humans.

390
00:19:28,520 --> 00:19:32,400
We are evolving into the digital era and people think of the digital realm as

391
00:19:32,400 --> 00:19:35,800
unnatural, but it's actually natural when you think about it because there's natural,

392
00:19:36,000 --> 00:19:38,160
basic, wheel-like elements.

393
00:19:38,360 --> 00:19:41,720
It's like the wheel is, you say, maybe the wheel is not natural.

394
00:19:41,920 --> 00:19:45,120
Right. But it's something that's a universal.

395
00:19:45,320 --> 00:19:46,640
Text is universal.

396
00:19:46,840 --> 00:19:49,600
Distributing that text all over the world is a universal.

397
00:19:49,800 --> 00:19:53,320
Tokenizing that text and making it into a dollar is universal.

398
00:19:53,520 --> 00:19:56,880
These are things that really you can't do another way.

399
00:19:57,080 --> 00:20:00,960
I want to also add here, you know, on the provision that those layers that control

400
00:20:01,160 --> 00:20:05,680
that mechanism are neutral layers that aren't controlled by any central party.

401
00:20:05,880 --> 00:20:07,280
That's the key critical thing.

402
00:20:07,480 --> 00:20:09,800
Once they're neutral, they provide everyone with digital rights.

403
00:20:09,800 --> 00:20:11,080
And this is all about digital rights,

404
00:20:11,280 --> 00:20:14,000
ultimately, so that everyone has digital freedom.

405
00:20:14,200 --> 00:20:17,600
Like, I don't like the idea of a digital world controlled by Google, but I do.

406
00:20:17,800 --> 00:20:19,360
I don't mind the idea of a digital world

407
00:20:19,560 --> 00:20:23,480
controlled by a distributed community that guarantees my rights.

408
00:20:23,480 --> 00:20:25,000
And that's what this is all based on.

409
00:20:25,200 --> 00:20:27,440
So then the question is, how do you protect the stable coin?

410
00:20:27,640 --> 00:20:30,200
How do you stop what happened to Terra Luna?

411
00:20:30,400 --> 00:20:31,680
Happening to your stable coin?

412
00:20:31,880 --> 00:20:33,440
I think it's the haircut.

413
00:20:33,640 --> 00:20:34,840
The main thing is the haircut rule.

414
00:20:34,840 --> 00:20:37,280
So what it means is the community votes on a haircut level.

415
00:20:37,480 --> 00:20:41,360
Currently on Hive, which I think is a little bit too high,

416
00:20:41,560 --> 00:20:44,000
but you can, you know, there's many ways, many ways to skin a cat,

417
00:20:44,200 --> 00:20:48,000
but it's currently set at 30%, which means that if

418
00:20:48,200 --> 00:20:53,400
the market cap of Hive, the governance token or the digital real estate token

419
00:20:53,600 --> 00:20:58,800
gets to less than three times bigger than the market cap of the stable coin,

420
00:20:59,000 --> 00:21:03,000
the chain automatically stops creating new HBD.

421
00:21:03,200 --> 00:21:07,280
And this is I just want to come back a little bit because we haven't set this up properly.

422
00:21:07,480 --> 00:21:12,360
The other thing here is that the in order to have zero fees on these layers,

423
00:21:12,560 --> 00:21:15,480
it ultimately comes down to the fact that you have to have inflation.

424
00:21:15,680 --> 00:21:20,000
It's basically a Keynesian argument versus a Bitcoin Maxi argument,

425
00:21:20,200 --> 00:21:22,640
which is that we were Austrian economists, and therefore we don't.

426
00:21:22,840 --> 00:21:24,760
We want the caps. We want to cut money supply.

427
00:21:24,960 --> 00:21:28,160
But with the cut money supply, you have to have fees and you exclude the masses.

428
00:21:28,360 --> 00:21:33,360
So we have come to the conclusion that you have to have inflation so you can have zero fees on the base layer.

429
00:21:33,560 --> 00:21:37,200
And with that inflation, when you distribute that inflation, you can have 50%

430
00:21:37,480 --> 00:21:38,280
of that inflation.

431
00:21:38,480 --> 00:21:43,280
The majority of it gets distributed to the community members for doing valuable things

432
00:21:43,480 --> 00:21:47,360
as voted by the community on a daily basis.

433
00:21:47,560 --> 00:21:52,720
Half of that goes as the main governance token or the digital real estate token,

434
00:21:52,920 --> 00:21:56,720
and half of that goes as the stable coin to the users.

435
00:21:56,920 --> 00:21:59,840
So you're constantly distributing the stable coin out to the users.

436
00:22:00,040 --> 00:22:04,600
The users can earn the stable coin by blogging, by doing cool things for the community.

437
00:22:04,800 --> 00:22:07,080
So that allows you to distribute the stable coin, which is

438
00:22:07,280 --> 00:22:10,360
incredibly important. It means that users can earn the stable coin,

439
00:22:10,560 --> 00:22:13,040
which means they don't have to risk any investment money.

440
00:22:13,240 --> 00:22:17,320
There's no point in this whole process that you ever have to ask anyone to invest a single penny.

441
00:22:17,520 --> 00:22:18,760
Everyone can always earn tokens.

442
00:22:18,960 --> 00:22:22,600
They can earn the governance token and they can earn the stable coin.

443
00:22:22,800 --> 00:22:26,240
So then the risk is, is if you keep creating new stable coins

444
00:22:26,440 --> 00:22:30,520
and the market cap of the stable coin is getting bigger compared to the market cap

445
00:22:30,720 --> 00:22:37,240
of the governance token or the digital real estate token, you get to a risky area where maybe a stable coin

446
00:22:37,440 --> 00:22:40,360
gets a little bit too big and then someone converts a ton of stable coins

447
00:22:40,560 --> 00:22:43,960
into the main base layer token, and then that forces the base layer token

448
00:22:43,960 --> 00:22:46,840
to increase in market cap in order to cover the guaranteed one dollars worth

449
00:22:47,040 --> 00:22:51,960
of stable coins on the conversion and then that hyper inflates the base layer token to zero.

450
00:22:52,160 --> 00:22:54,040
Right. That's the worry.

451
00:22:54,240 --> 00:22:58,920
But when you say, OK, the first thing we're going to do is if it gets to a certain size,

452
00:22:59,120 --> 00:23:03,680
meets the haircut rule of 30 percent, now we're going to cut off stable coins

453
00:23:03,680 --> 00:23:06,760
from being created at all, there'll be no more stable coins from being created

454
00:23:06,760 --> 00:23:07,240
from the inflation.

455
00:23:07,440 --> 00:23:13,800
That then buys you time and it allows, it'll even allow the stable coin to depeg

456
00:23:14,000 --> 00:23:17,680
a little bit, but it buys you time because you're not putting new stable coins into the market.

457
00:23:17,880 --> 00:23:21,800
So now there's no new supply of people earning stable coins and then converting

458
00:23:22,000 --> 00:23:26,800
them into the base layer token to then inflate, to inflate the supply of the base

459
00:23:27,000 --> 00:23:32,320
layer token, which means you cut off that force that's coming in from the new

460
00:23:32,520 --> 00:23:35,400
stable coins being converted into the base layer token.

461
00:23:35,600 --> 00:23:37,160
That's the first thing you do and it gives you time.

462
00:23:37,360 --> 00:23:40,360
And that is all that's ever had to happen so far in the five or six occasions where

463
00:23:40,560 --> 00:23:43,240
there's been depegs, that's all that's happened so far.

464
00:23:43,440 --> 00:23:45,320
And eventually the peg comes back.

465
00:23:45,520 --> 00:23:49,360
The haircut rule gets exceeded because there's a network effect of constantly

466
00:23:49,360 --> 00:23:52,600
growing community members that are constantly staking more and more money and also apps

467
00:23:52,800 --> 00:23:56,520
that are being built, they're staking more and more of the base layer token,

468
00:23:56,720 --> 00:24:01,120
which means that eventually your price of your governance token comes back to a high

469
00:24:01,120 --> 00:24:04,720
enough level that it exceeds the haircut rule and now you can start creating

470
00:24:04,920 --> 00:24:07,240
stable coins again and go back to normality.

471
00:24:07,440 --> 00:24:14,960
And that's kind of the general set up so far and that's what we've seen historically happen.

472
00:24:15,160 --> 00:24:17,000
And that's the sustainable model on its own.

473
00:24:17,200 --> 00:24:21,920
Yeah, you have a haircut model, you have an inflation, small inflation model.

474
00:24:21,920 --> 00:24:24,840
You're able to do that because you have parameter coin voting, meaning you don't

475
00:24:25,040 --> 00:24:27,880
have to pay a thousand validators, you pay 20

476
00:24:28,080 --> 00:24:32,240
plus backups of the best, the best of the best who are voted in.

477
00:24:32,440 --> 00:24:37,160
You also counter that with incentivized stakeholder distribution,

478
00:24:37,400 --> 00:24:41,800
which means you are incentivized to distribute the stake to new participants.

479
00:24:42,000 --> 00:24:46,400
This is very important to counter off the Red Queen game that would happen if you

480
00:24:46,600 --> 00:24:50,640
were only getting paid or the validators were only ones getting paid.

481
00:24:50,840 --> 00:24:55,240
So you have that balanced and all of these things are very intricate.

482
00:24:55,440 --> 00:25:00,240
If you think about it, little ecosystems that require balance.

483
00:25:01,240 --> 00:25:03,480
So once you have that, now you have a way

484
00:25:03,680 --> 00:25:07,240
to have no fees because if you have high fees, it kind of discludes.

485
00:25:07,440 --> 00:25:10,040
Everyone, you know, the masses.

486
00:25:10,240 --> 00:25:13,520
One important key factor is in the tech

487
00:25:13,520 --> 00:25:15,680
stack, you have to make it instantly confirming.

488
00:25:15,680 --> 00:25:19,160
And you can only do this with parameter coin voting because you trust the people

489
00:25:19,360 --> 00:25:23,640
anyway, so they're able to confirm it basically instantly.

490
00:25:23,640 --> 00:25:25,880
Because if you had to wait a minute, that destroys it.

491
00:25:26,080 --> 00:25:28,040
It's no longer cash. Cash is instant.

492
00:25:28,240 --> 00:25:29,960
This is cash. HBD is cash.

493
00:25:30,160 --> 00:25:31,680
When you use it, it's instant.

494
00:25:31,880 --> 00:25:35,600
It's basically handing them cash and them counting it.

495
00:25:35,600 --> 00:25:37,200
By the time they're able to do that,

496
00:25:37,400 --> 00:25:42,600
the transaction is done is absolutely key because when you're dealing with new

497
00:25:42,800 --> 00:25:45,760
technologies, especially people want to, you know, they don't want to wait around.

498
00:25:45,960 --> 00:25:48,880
They want to know it's confirmed.

499
00:25:49,080 --> 00:25:50,840
So.

500
00:25:51,040 --> 00:25:53,800
This thing that literally turns into cash, you have in your account,

501
00:25:54,000 --> 00:25:57,640
you're able to cash out anywhere, another thing HBD did, you know,

502
00:25:57,840 --> 00:26:02,240
or the Algo stablecoin just piggyback off of, you know, why wait to be listed

503
00:26:02,240 --> 00:26:05,240
on centralized exchanges when you could piggyback off something like the Lightning

504
00:26:05,440 --> 00:26:06,240
Network?

505
00:26:06,440 --> 00:26:07,240
It's like.

506
00:26:07,480 --> 00:26:10,520
It's like a decentralized infrastructure and just mirror it, just mirror.

507
00:26:10,720 --> 00:26:12,280
It's all you need to do.

508
00:26:12,480 --> 00:26:13,800
You don't have to compete with it.

509
00:26:13,800 --> 00:26:15,800
We don't have to create our own Lightning Network in a way.

510
00:26:16,000 --> 00:26:19,120
We are our own Lightning Network, but it's another topic.

511
00:26:19,320 --> 00:26:23,800
Yeah, this is just able to clear to fiat world as far as I'm concerned.

512
00:26:24,000 --> 00:26:28,080
So it just it's a very it's very nice the way it's set up.

513
00:26:28,080 --> 00:26:30,960
When you think about it, there's really nothing stopping it.

514
00:26:31,160 --> 00:26:34,160
Whenever you try to place a hurdle, it's hurdle, right?

515
00:26:34,160 --> 00:26:36,640
You say, oh, well, no centralized exchanges will cash out.

516
00:26:36,640 --> 00:26:37,920
It's a Lightning Network.

517
00:26:38,120 --> 00:26:39,240
It's like you can earn it.

518
00:26:39,440 --> 00:26:40,880
No oligarchy.

519
00:26:41,080 --> 00:26:43,720
It's incentivized to be to be distributed.

520
00:26:43,920 --> 00:26:45,640
So that means you encourage new people.

521
00:26:45,840 --> 00:26:49,680
You don't like all these other models are not encouraging the new participants.

522
00:26:49,680 --> 00:26:51,080
Like what they call proof of stake.

523
00:26:51,080 --> 00:26:52,800
They don't want to give their shit away.

524
00:26:53,000 --> 00:26:55,880
Like they want to get more because then they get more right.

525
00:26:56,080 --> 00:27:00,640
Like with this, it's like the more you get, the more you got to give.

526
00:27:00,840 --> 00:27:03,600
So it's a completely different model.

527
00:27:03,800 --> 00:27:05,960
And as you give and you're building reputation,

528
00:27:05,960 --> 00:27:10,840
based on whom you give it off, give it to the communities you're building

529
00:27:11,040 --> 00:27:15,000
and all that's on chain, people can see what you did.

530
00:27:15,200 --> 00:27:19,200
This is a completely different model than anything else.

531
00:27:19,400 --> 00:27:23,320
So, I mean, like I said, we feel like archeologists here.

532
00:27:23,320 --> 00:27:27,360
We're just kind of dusting the shit off and like it's making sense more and more.

533
00:27:27,360 --> 00:27:29,560
Then you start to realize it not just makes sense.

534
00:27:29,760 --> 00:27:32,880
This thing is designed in such a way that's very elegant.

535
00:27:32,880 --> 00:27:35,240
Like if you were to study the nature and how it works, you're like,

536
00:27:35,960 --> 00:27:37,440
there's some kind of designer here.

537
00:27:37,440 --> 00:27:39,600
Like this shit's fucking crazy how it works.

538
00:27:39,800 --> 00:27:40,840
The same thing here.

539
00:27:40,840 --> 00:27:43,680
Although I don't think there was a designer based off of one person.

540
00:27:43,680 --> 00:27:45,400
I think that a lot of this is serendipity.

541
00:27:45,600 --> 00:27:50,760
A lot of this just came to be and how it is based off of certain things.

542
00:27:50,960 --> 00:27:54,240
Maybe the HBD was included just so people

543
00:27:54,240 --> 00:27:57,360
could get dollar payouts at first from their social media posts.

544
00:27:57,560 --> 00:28:00,480
But you don't realize it creates a parallel economy is absolutely needed

545
00:28:00,480 --> 00:28:02,400
for the incentive layer and everything else that goes with it.

546
00:28:02,400 --> 00:28:04,160
You can say the same with the upvotes.

547
00:28:04,360 --> 00:28:05,840
Oh, it's just a friendly way to

548
00:28:06,160 --> 00:28:09,840
to pay somebody for social media is like what also turned into one of the most

549
00:28:09,840 --> 00:28:12,880
powerful distribution mechanisms and distribution happens to be the most

550
00:28:13,080 --> 00:28:17,040
important thing on any kind of voting system, any system.

551
00:28:17,040 --> 00:28:18,600
Because why say voting system?

552
00:28:18,800 --> 00:28:20,160
All systems are important.

553
00:28:20,360 --> 00:28:23,160
Distribution is the most important thing to any protocol.

554
00:28:23,360 --> 00:28:24,760
Distribution of infrastructure,

555
00:28:24,960 --> 00:28:29,600
distribution of tokens, distribution of everything,

556
00:28:29,800 --> 00:28:33,320
the way you perceive things, different cultures, different jurisdictions.

557
00:28:33,520 --> 00:28:35,200
One might say it's bad.

558
00:28:35,200 --> 00:28:36,320
One might welcome it.

559
00:28:36,320 --> 00:28:38,360
You got to be fluid. You got to be all over the world.

560
00:28:38,360 --> 00:28:40,080
You can't be like, oh, we're only here.

561
00:28:40,280 --> 00:28:43,240
And if this place says that we're kind of fucked, it's like you got to be

562
00:28:43,440 --> 00:28:46,120
everywhere and encouraging everything simultaneously.

563
00:28:46,120 --> 00:28:48,160
And that's what incentivize stakeholder distribution does.

564
00:28:48,360 --> 00:28:52,080
That's what the DAO, a real DAO does.

565
00:28:52,280 --> 00:28:54,000
You see people come up who wouldn't have

566
00:28:54,000 --> 00:28:56,440
the money to buy steak, have steak that they have and they're

567
00:28:56,640 --> 00:29:00,120
participating every day, and that's something you actually really can't pay

568
00:29:00,320 --> 00:29:04,400
for people who come here voluntarily, not knowing they're going to get a paycheck

569
00:29:04,400 --> 00:29:05,120
or not.

570
00:29:05,240 --> 00:29:06,640
They're working their way up to build

571
00:29:06,840 --> 00:29:08,560
reputation and then they start to earn.

572
00:29:08,760 --> 00:29:10,640
You can't really buy those people.

573
00:29:10,840 --> 00:29:13,360
Those people are kind of built different.

574
00:29:13,560 --> 00:29:15,920
So this is what this protocol attracts.

575
00:29:15,920 --> 00:29:17,800
It attracts a bunch of people who are built different.

576
00:29:18,000 --> 00:29:21,920
And that's why you have such a powerful,

577
00:29:22,360 --> 00:29:25,120
powerful network effect, because it's not just a bunch of people holding.

578
00:29:25,120 --> 00:29:27,360
There's a lot of people who are holding and they're doing good.

579
00:29:27,560 --> 00:29:29,320
They're actually using this protocol for good.

580
00:29:29,320 --> 00:29:31,840
They're not just flipping meme coins or whatever the fuck.

581
00:29:32,040 --> 00:29:33,320
They're actually changing lives.

582
00:29:33,520 --> 00:29:34,880
They see what the focus,

583
00:29:35,200 --> 00:29:38,520
what's going to be directed, where big and small.

584
00:29:38,720 --> 00:29:40,520
They're taking advantage of the stakeholder

585
00:29:40,720 --> 00:29:43,480
distribution to better their communities.

586
00:29:43,680 --> 00:29:46,960
Yeah, a couple of other things that protect the stable coin.

587
00:29:47,160 --> 00:29:49,800
This isn't implemented on Hive, but I think it could be.

588
00:29:50,000 --> 00:29:52,360
And it's certainly one of the potential solutions.

589
00:29:52,560 --> 00:29:54,880
If the peg continues to detach after you've

590
00:29:55,080 --> 00:29:59,920
cut the supply of new HPDR for the supply of new stable coins off and the it keeps

591
00:30:00,120 --> 00:30:04,880
dropping, it keeps, you know, the stable coin goes to 80 cents and 75 cents and 70

592
00:30:05,200 --> 00:30:07,840
cents and you can't seem to, you know,

593
00:30:08,040 --> 00:30:11,280
stem that stem the crash of the price of the stable coin.

594
00:30:11,480 --> 00:30:15,680
You could inherently within within the layer one

595
00:30:15,880 --> 00:30:25,520
prioritize the devaluing of the stable coin over saving the whilst saving the base

596
00:30:25,720 --> 00:30:29,120
layer governance token. So if you keep devaluing the stable coin,

597
00:30:29,320 --> 00:30:34,520
you get a lot more conversions, forcing the the base layer token to expand.

598
00:30:35,200 --> 00:30:40,000
Well, if you start to say, OK, we get in a market price worth 75 cents.

599
00:30:40,200 --> 00:30:46,320
So what we'll do is we'll put the internal price of the token to like 60 cents or 50

600
00:30:46,520 --> 00:30:49,320
cents and let the blockchain register as 50 cents.

601
00:30:49,520 --> 00:30:50,440
And you're going to get people going

602
00:30:50,640 --> 00:30:55,040
internally and buying it at 50 cents by converting and then selling it on

603
00:30:55,240 --> 00:31:00,040
the exchanges. And then that will push the internal price back up.

604
00:31:00,240 --> 00:31:04,880
And also it stops people from converting their lower value stable coin

605
00:31:04,880 --> 00:31:11,000
into into the main base token and selling it because they're not going to make as

606
00:31:11,200 --> 00:31:14,520
much money. So, you know, as it gets lower, as you get

607
00:31:14,720 --> 00:31:18,040
down to 50 cents and 40 cents, you can really devalue that stable coin

608
00:31:18,240 --> 00:31:20,480
internally on the blockchain down to almost zero.

609
00:31:20,680 --> 00:31:24,240
And then that prioritizes the stakeholders of the ecosystem, the governance token

610
00:31:24,240 --> 00:31:25,640
holders, and it doesn't dilute them.

611
00:31:25,840 --> 00:31:29,600
And it says to the stable coin holders, you hold an established coin

612
00:31:29,800 --> 00:31:33,120
and it could potentially devalue to zero for a temporary.

613
00:31:33,320 --> 00:31:34,680
This is the key thing here.

614
00:31:34,880 --> 00:31:39,120
It's always going to be a temporary period of time because eventually the system will

615
00:31:39,320 --> 00:31:43,640
rebalance and come back into equilibrium and then you can go back to the place

616
00:31:43,640 --> 00:31:47,680
where because obviously if you devalue the stable coin, you're going to drastically

617
00:31:47,880 --> 00:31:51,000
reduce the size of the haircut, the market cap of the stable coin,

618
00:31:51,200 --> 00:31:54,320
drastically reduce the haircut rule and slowly but surely the thing can start

619
00:31:54,520 --> 00:31:58,800
kicking back in and you can start re reissuing stable coins back to the community

620
00:31:59,000 --> 00:32:03,120
by inflation and thereby protect the state.

621
00:32:03,320 --> 00:32:04,800
Well, prioritize the token.

622
00:32:05,000 --> 00:32:08,680
The governance token holders over the stable coin holders and as long as stable

623
00:32:08,880 --> 00:32:12,600
coin holders know that and know that they're not even deprioritized.

624
00:32:12,600 --> 00:32:15,280
They're just it's just the amount of time that they have to wait is longer if

625
00:32:15,480 --> 00:32:18,760
the catastrophe happens, which is very rare anyway.

626
00:32:18,960 --> 00:32:21,880
It's a one it's a it's a black swan event anyway.

627
00:32:22,080 --> 00:32:24,160
As long as you keep the haircut rule really, really low.

628
00:32:24,360 --> 00:32:29,760
The other way to protect these chains are, as you saw in the Terra Luna case,

629
00:32:29,960 --> 00:32:33,760
they were able to instantly convert the stable coin into Terra Luna governance

630
00:32:33,960 --> 00:32:34,880
tokens.

631
00:32:35,080 --> 00:32:36,560
And

632
00:32:36,760 --> 00:32:40,600
in Hive, but what we recommend in these systems in general and other stable coins

633
00:32:40,800 --> 00:32:44,880
is having a three day waiting period so you can't instantly convert all of your

634
00:32:44,880 --> 00:32:47,800
stable coins into governance tokens and sell them into the market.

635
00:32:48,000 --> 00:32:50,000
You have to wait for three, three and a half days.

636
00:32:50,000 --> 00:32:51,560
And what that does is it puts a lot of

637
00:32:51,760 --> 00:32:55,800
risk on you because you get you get the average price over that three and a half

638
00:32:55,800 --> 00:32:59,160
days, so you don't necessarily know if the price is going to go up or down while you

639
00:32:59,360 --> 00:33:04,000
transfer, which means and this is if you're transferring in bulk

640
00:33:04,200 --> 00:33:07,120
with this with the previous stabilizer that I talked about, you're able to get out

641
00:33:07,320 --> 00:33:10,960
a few thousand dollars here and there if you want to get a significant amount such

642
00:33:11,160 --> 00:33:14,840
that you can attack the chain with it, you know, you're talking five, six, seven

643
00:33:15,040 --> 00:33:19,640
million or even billion dollars, 100 million dollars maybe in one go.

644
00:33:19,680 --> 00:33:20,760
Then you're going to have to go through

645
00:33:20,760 --> 00:33:24,760
the internal conversion mechanism and that's a three and a half day wait.

646
00:33:24,960 --> 00:33:27,440
And that puts a lot of risk on you because you don't know what's going to happen.

647
00:33:27,440 --> 00:33:29,040
Those three and a half days to the price

648
00:33:29,040 --> 00:33:32,160
and you might get a really, really terrible price, which puts you under water in your

649
00:33:32,360 --> 00:33:33,120
positions.

650
00:33:33,120 --> 00:33:36,320
And the other thing you can do as well is when you convert internally, you can have

651
00:33:36,520 --> 00:33:40,000
a five percent feel some of the some of the fee that people have to pay.

652
00:33:40,200 --> 00:33:44,400
So, you know, that the people who are using the internal conversion mechanism

653
00:33:44,600 --> 00:33:49,160
to get into the stable coin or out of the stable coin are doing it because they've

654
00:33:49,160 --> 00:33:52,200
got a genuine reason that they're not doing it because they're attacking the chain

655
00:33:52,400 --> 00:33:54,800
because they wouldn't. Attackers won't do that if they're going

656
00:33:55,000 --> 00:33:59,120
to take a five percent haircut as soon as they do the conversion.

657
00:33:59,520 --> 00:34:02,320
Anything else to mention on that before we go to the next point, I want to talk about

658
00:34:02,320 --> 00:34:08,720
the infinite liquidity that becomes a critical point where HBD

659
00:34:08,920 --> 00:34:13,480
or a stable coin that when you have enough trust in it,

660
00:34:13,680 --> 00:34:18,120
because the only time it's going to go down, really, in theory and practice is

661
00:34:18,320 --> 00:34:21,640
when the market crashes and people panic.

662
00:34:21,840 --> 00:34:25,200
So that is when everyone's selling into a stable coin.

663
00:34:25,200 --> 00:34:28,000
So that's in theory when a stable coin should be the strongest.

664
00:34:28,000 --> 00:34:29,200
You know, when the market's going down,

665
00:34:29,200 --> 00:34:32,280
you often see Tether and these others with billions in volume and

666
00:34:32,480 --> 00:34:35,720
almost sometimes above peg by a cent or two.

667
00:34:35,920 --> 00:34:38,280
So the demand for these stable coins goes up.

668
00:34:38,480 --> 00:34:43,280
So in a natural environment where the stable coin is perceived as a stable coin

669
00:34:43,480 --> 00:34:46,280
and it's solid, people will be selling for the stable coin,

670
00:34:46,480 --> 00:34:49,960
making it stronger during a down buying the stable coin instead of buying.

671
00:34:50,160 --> 00:34:52,440
But yes, on the Hive and buying HBD,

672
00:34:52,640 --> 00:34:56,160
for example, which is going to make, you know, reinforce HBD.

673
00:34:56,360 --> 00:34:57,920
It's only when you don't have confidence

674
00:34:58,120 --> 00:35:02,240
in the underlying asset, people actually start to sell the HBD for another stable.

675
00:35:02,440 --> 00:35:04,480
Point when you actually have a problem.

676
00:35:04,680 --> 00:35:09,760
So at the end of the day, the system is designed to work if it's used as intended.

677
00:35:09,960 --> 00:35:13,240
If you panic out and sell during a time

678
00:35:13,440 --> 00:35:16,760
when you shouldn't do it, then you're probably going to

679
00:35:17,480 --> 00:35:18,560
miss out.

680
00:35:18,760 --> 00:35:22,160
So so one of the one of the downsides of this model, it's not really a downside.

681
00:35:22,360 --> 00:35:24,760
It's a beautiful balancing mechanism.

682
00:35:24,960 --> 00:35:27,760
But in the short term, it's a downside because

683
00:35:27,960 --> 00:35:30,520
in order to distribute the stable coin, you have to do it by inflation.

684
00:35:30,560 --> 00:35:31,480
So you have to have.

685
00:35:31,600 --> 00:35:35,560
It's a really, really slow expansion of the market capital of the stable coin,

686
00:35:35,760 --> 00:35:40,840
which means initially it can't compete with the size of some Tether or USDC,

687
00:35:41,040 --> 00:35:43,800
which can just press a button and issue a shit ton of stable coins.

688
00:35:44,000 --> 00:35:45,200
Right.

689
00:35:45,400 --> 00:35:47,760
The way that Tether does it is it

690
00:35:47,960 --> 00:35:52,000
bankers or financiers will call it the Tether company, the centralized Tether

691
00:35:52,200 --> 00:35:57,480
company and say, hey, we want to make a we want a billion USD USDT.

692
00:35:57,680 --> 00:35:59,640
We've got a billion dollars worth of treasuries.

693
00:35:59,840 --> 00:36:01,440
So they'll say, OK, send the

694
00:36:01,640 --> 00:36:04,520
treasuries to our banks and they're in a centralized U.S. bank.

695
00:36:04,720 --> 00:36:10,600
Tether then makes the interest of those treasuries and the financier gets USDT

696
00:36:10,600 --> 00:36:14,000
and is able to go stake those into DeFi protocols to hopefully make more than what

697
00:36:14,200 --> 00:36:17,720
the U.S. treasuries are paying, and that's the business model.

698
00:36:17,920 --> 00:36:18,680
That's the way that works.

699
00:36:18,880 --> 00:36:22,400
What that means is that because it's a centralized model, there's someone to call

700
00:36:22,600 --> 00:36:25,960
up and you can arrange a deal where you can put one hundred million dollars worth

701
00:36:26,160 --> 00:36:30,600
of treasuries into Tether and then Tether will give you USDT tokens in return with

702
00:36:30,600 --> 00:36:31,400
a few clicks of a button.

703
00:36:31,680 --> 00:36:35,400
Which means that the market caps of these centralized stable coins can expand

704
00:36:35,600 --> 00:36:38,800
massively in a very, very quick way over a very, very short period of time.

705
00:36:39,000 --> 00:36:41,280
It can become very, very liquid very, very quickly.

706
00:36:41,480 --> 00:36:42,920
Algorithmic stable coins.

707
00:36:42,960 --> 00:36:44,720
I mean, there's ways that you can expand the market cap.

708
00:36:44,720 --> 00:36:46,120
You could just do an airdrop, for example,

709
00:36:46,320 --> 00:36:49,800
but that's not particularly in the spirit of decentralization.

710
00:36:50,000 --> 00:36:53,800
So generally what happens is people do inflation.

711
00:36:53,800 --> 00:36:55,800
So you make a blog, you do something valuable for the community,

712
00:36:55,800 --> 00:36:58,360
the community votes for your blog, and then that distribution of the inflation

713
00:36:58,560 --> 00:37:01,480
to you, like I was saying earlier, you get half of that in governance

714
00:37:01,680 --> 00:37:02,640
token and half of that in stable coin.

715
00:37:02,840 --> 00:37:07,240
Then it expands the market capitalization of that stable coin over time slowly.

716
00:37:07,440 --> 00:37:10,520
But it's so slow, even if you have the APR at 20 percent,

717
00:37:10,720 --> 00:37:14,360
which is currently in place on Hive and it's sustainable as it currently stands

718
00:37:14,560 --> 00:37:18,800
because it's nowhere near the debt limit, the haircut rule.

719
00:37:19,000 --> 00:37:22,280
It means that even if you're at 20 percent inflation,

720
00:37:22,280 --> 00:37:24,920
it's going to take 30 years before you get to a billion dollar market cap.

721
00:37:25,120 --> 00:37:29,480
So you need another way to get to expand the market cap of a stable coin.

722
00:37:29,680 --> 00:37:31,480
And what I see.

723
00:37:31,680 --> 00:37:34,960
Hive as one of the value mechanisms of these governance tokens on these genuinely

724
00:37:35,160 --> 00:37:40,960
distributed chains that we're describing here with parametered coin voting is that

725
00:37:41,160 --> 00:37:45,240
the the base layer governance token is what backs the stable coin.

726
00:37:45,440 --> 00:37:47,960
And so by so inherently is the mechanism

727
00:37:48,160 --> 00:37:52,320
through which you can get into the stable coin in an infinite amounts

728
00:37:52,520 --> 00:37:54,640
because you can you don't need to call tether up.

729
00:37:54,640 --> 00:37:56,240
You don't need to call the Hive community up.

730
00:37:56,440 --> 00:37:58,560
You just go on the open market and buy Hive.

731
00:37:58,560 --> 00:38:01,440
And it doesn't matter what price you buy it at even because you

732
00:38:01,680 --> 00:38:04,520
you're just kind of buying it and then you instantly converting day by day

733
00:38:04,720 --> 00:38:08,600
into the stable coin to get yourself into a stable coin that's genuinely non

734
00:38:08,800 --> 00:38:13,560
custodial outside the system has zero fees and clear instantly or within three seconds.

735
00:38:13,760 --> 00:38:15,800
And there isn't any centralized element

736
00:38:16,000 --> 00:38:20,840
behind it where it can be seized, such as with USDT and USDC

737
00:38:21,040 --> 00:38:22,760
and many of the other stable coins.

738
00:38:22,960 --> 00:38:27,480
So an algorithmic stable coin lets you exit the system and go into parallel economy

739
00:38:27,680 --> 00:38:31,440
dollars, truly parallel economy dollars that can't be seized, that can be used in

740
00:38:31,640 --> 00:38:34,000
all sorts of different ways, which we'll go into in a short while.

741
00:38:34,200 --> 00:38:35,480
But what what does it mean?

742
00:38:35,680 --> 00:38:37,640
The equivalent is you're calling up tether,

743
00:38:37,840 --> 00:38:40,920
you're getting your hundred million dollars with USDT in exchange for your treasuries.

744
00:38:41,120 --> 00:38:48,000
What this is saying is go on the open market by Hive off the open market or by

745
00:38:48,000 --> 00:38:50,880
this base layer governance token or digital real estate token off the open

746
00:38:51,080 --> 00:38:54,560
market, which will move the price of that token up.

747
00:38:54,760 --> 00:38:59,480
But it will allow you day by day to convert into

748
00:38:59,680 --> 00:39:01,400
or it will allow the financier

749
00:39:01,600 --> 00:39:09,840
to convert into USD stable coins or HBD as we call them or Hive dollars as we call them.

750
00:39:10,040 --> 00:39:13,000
And they are outside the economic system in a truly parallel economy.

751
00:39:13,200 --> 00:39:16,800
You will have to wait for three and a half days and you'll have to pay the 5% fee.

752
00:39:17,000 --> 00:39:19,280
But because there's a 20% interest

753
00:39:19,480 --> 00:39:23,880
on the on the token as it currently stands, as the community has voted for,

754
00:39:24,080 --> 00:39:26,400
that means you get your 5% back in three months.

755
00:39:26,600 --> 00:39:30,640
And there's a multitude of other things that you can do with that token to get

756
00:39:30,760 --> 00:39:34,040
collateralized loans, which we'll go into in a second.

757
00:39:34,240 --> 00:39:35,560
But what does that mean?

758
00:39:35,760 --> 00:39:37,120
Effectively, instead of you calling up

759
00:39:37,120 --> 00:39:40,000
Tether and putting a ton of money into them and getting a ton of stable coins out,

760
00:39:40,200 --> 00:39:42,840
you're not calling anyone up because there's no one to call because it's truly

761
00:39:43,040 --> 00:39:47,360
decentralized on Hive and you are buying the Hive token off the open market and then

762
00:39:47,560 --> 00:39:51,880
you're converting those tokens into HBD in the using the internal conversion

763
00:39:52,080 --> 00:39:56,400
mechanism and that gets you unlimited liquidity of these tokens.

764
00:39:56,600 --> 00:40:00,640
So then what happens is I believe in that scenario, the debt ratio,

765
00:40:00,840 --> 00:40:06,800
will actually go down. You'll expand the market cap of HBD tremendously,

766
00:40:07,000 --> 00:40:10,800
right, by a huge financier coming in or several of them coming in.

767
00:40:11,000 --> 00:40:15,680
But it will push the Hive price up so much because one of Hive's other value

768
00:40:15,880 --> 00:40:19,200
mechanisms now is the fact that it is a mechanism through which you can convert

769
00:40:19,400 --> 00:40:23,560
your current world dollars into parallel economy dollars.

770
00:40:23,760 --> 00:40:25,160
That's incredibly valuable.

771
00:40:25,360 --> 00:40:28,600
I don't think we can even understate the value of that.

772
00:40:28,800 --> 00:40:30,600
And that will, because

773
00:40:30,840 --> 00:40:33,760
Hive's the mechanism through which that's been done, that pushes the price of Hive

774
00:40:33,960 --> 00:40:38,200
up more, the market cap of Hive goes up more than what the market cap of new stable

775
00:40:38,400 --> 00:40:42,200
coins being created is. And so you might have $100 million come into Hive,

776
00:40:42,400 --> 00:40:45,240
but the market cap of Hive is going to go up by $500 million as a result.

777
00:40:45,440 --> 00:40:48,880
So the actual haircut rule, the debt ratio between the stable coin

778
00:40:49,080 --> 00:40:53,280
and the governance token will drop even though you're expanding the governance token.

779
00:40:53,480 --> 00:40:55,400
And that's another beautiful thing here

780
00:40:55,400 --> 00:40:58,400
that I think is not well understood in the crypto community.

781
00:40:58,600 --> 00:41:00,560
These algorithmic stable coins, if they're done properly,

782
00:41:00,760 --> 00:41:03,320
if they're parameterized properly,

783
00:41:03,520 --> 00:41:07,560
when they use the conversion mechanisms to go from current world dollars to new world

784
00:41:07,760 --> 00:41:12,280
genuinely decentralized dollars, you have a drop in the debt ratio.

785
00:41:12,480 --> 00:41:16,560
You have a massively sustainable system and you have infinite liquidity.

786
00:41:16,760 --> 00:41:20,520
This is like people look at the amount of Hive-backed dollars on the exchanges.

787
00:41:20,520 --> 00:41:23,520
Right now, it's not many and they say, oh, it's not liquid enough for me.

788
00:41:23,720 --> 00:41:25,400
So no, it is liquid enough for you if you

789
00:41:25,600 --> 00:41:29,760
use Hive as the conversion mechanism through which to get into the HBD.

790
00:41:29,960 --> 00:41:30,560
And

791
00:41:30,840 --> 00:41:38,160
it's truly an unlimited liquidity token, stable coin, and that is very much misunderstood.

792
00:41:38,360 --> 00:41:41,400
But I foresee that in the future where you're going to have genuinely

793
00:41:41,600 --> 00:41:45,440
decentralized stable coins with billions and billions of dollars in liquidity

794
00:41:45,640 --> 00:41:48,560
and with the governance tokens as long as they're parameterized correctly

795
00:41:48,760 --> 00:41:52,400
and as long as they're backed with the right things like social interactivity,

796
00:41:52,600 --> 00:41:56,360
they're going to be much bigger than the base layer stable coin tokens.

797
00:41:56,560 --> 00:41:59,560
And so as a result, you have a stable

798
00:41:59,760 --> 00:42:03,680
sustainable economy and a sustainable, sustainable state.

799
00:42:03,880 --> 00:42:08,280
You have to back it by either text like we did with Hive or maybe a computation

800
00:42:08,480 --> 00:42:11,600
layer, but then the fees will be a problem even with inflation.

801
00:42:11,800 --> 00:42:14,360
You'd love inflation and it's fine.

802
00:42:14,560 --> 00:42:17,880
So, yeah, I mean, there's really only

803
00:42:18,080 --> 00:42:20,440
the concept is backed by something that can't be seized.

804
00:42:20,640 --> 00:42:28,680
But if you zoom in on that, the best option is obviously text because it's scalable.

805
00:42:28,680 --> 00:42:31,960
You're stable and.

806
00:42:32,160 --> 00:42:36,720
You understand that it's lightweight to store

807
00:42:36,920 --> 00:42:39,000
and it's the most important for free speech.

808
00:42:39,200 --> 00:42:41,960
Computation is nothing without text.

809
00:42:42,160 --> 00:42:44,520
So what are you computing?

810
00:42:44,720 --> 00:42:46,240
A lot like to tie those together.

811
00:42:46,440 --> 00:42:48,280
But yeah, yeah.

812
00:42:48,480 --> 00:42:50,320
Let's take a. Well, hold on, hold on, hold on.

813
00:42:50,520 --> 00:42:56,640
The last thing here is the is the the bond system, the pristine collateral.

814
00:42:56,640 --> 00:42:57,600
Let's just do quick, quick.

815
00:42:57,600 --> 00:42:58,640
We won't go into detail on it.

816
00:42:58,800 --> 00:42:59,720
Because I'll be mentioned somewhere else.

817
00:42:59,920 --> 00:43:02,600
It can be further reading from beyond the scope of this book.

818
00:43:02,800 --> 00:43:06,960
But because you can always clear with the system we've just described,

819
00:43:07,160 --> 00:43:10,400
you can always clear into one dollars worth of crypto.

820
00:43:10,600 --> 00:43:12,160
It's the equivalent of holding the US

821
00:43:12,360 --> 00:43:15,880
treasury that always clears into one dollar worth of dollars.

822
00:43:16,080 --> 00:43:16,800
Right.

823
00:43:17,000 --> 00:43:21,280
And that is seen in the current collateralized loan

824
00:43:21,480 --> 00:43:24,640
economy as pristine collateral, what they call pristine collateral.

825
00:43:24,840 --> 00:43:28,640
And it gets you the lowest interest rates so you could do the same thing.

826
00:43:28,840 --> 00:43:33,400
With this, where if you stake the stable coin for a year,

827
00:43:33,600 --> 00:43:37,840
you get a guaranteed APR that's set by the community.

828
00:43:38,040 --> 00:43:41,760
In batches and you can auction those bonds off in the same way that the US

829
00:43:41,960 --> 00:43:45,920
government auctions its own bonds off and then you can use those stable coin backed

830
00:43:46,120 --> 00:43:49,800
bonds are always clear into one dollars worth of crypto.

831
00:43:50,000 --> 00:43:52,280
But, you know, you can't go crazy issuing bonds.

832
00:43:52,280 --> 00:43:55,400
You have to do it sensibly and the community has to come to a consensus on

833
00:43:55,400 --> 00:43:58,680
how many bonds are issued and make sure that doesn't damage the economic.

834
00:43:58,880 --> 00:44:00,400
Balance of the ecosystem.

835
00:44:00,600 --> 00:44:02,000
But that's not difficult to do.

836
00:44:02,200 --> 00:44:03,520
You can you can plan for that.

837
00:44:03,720 --> 00:44:05,560
You can see that happening.

838
00:44:05,760 --> 00:44:08,320
You can see the amount of bonds that are going to come to you as you issued them.

839
00:44:08,520 --> 00:44:12,280
You know, you know when they're mature data so you can you can plan for the amount

840
00:44:12,480 --> 00:44:16,160
of tokens that are going to come onto the market at certain times and make sure

841
00:44:16,360 --> 00:44:19,520
you're not overextending yourself and then.

842
00:44:19,720 --> 00:44:25,720
With that, you have a set of pristine collateral backed bonds that you can use

843
00:44:25,920 --> 00:44:28,560
to create a collateralized loan market that is

844
00:44:28,720 --> 00:44:33,040
the equivalent and a replacement for the euro dollar system, which is currently

845
00:44:33,240 --> 00:44:37,280
broken because all the other types of collateral basically became invite

846
00:44:37,480 --> 00:44:43,040
became useless after 2008 crash and everyone only wants US dollars,

847
00:44:43,240 --> 00:44:46,400
which is great for the USA, but it's not necessarily great for everyone,

848
00:44:46,600 --> 00:44:49,920
which explains why there's so much demand for US debt.

849
00:44:50,120 --> 00:44:53,280
It's not because the US is printing money is because there's a printing debt and

850
00:44:53,280 --> 00:44:56,080
people want to buy it because they can use it as pristine collateral to go

851
00:44:56,280 --> 00:44:58,600
make collateralized loans.

852
00:44:58,880 --> 00:45:02,560
So once you have a base layer stable coin that's in a parallel dollar that can't be

853
00:45:02,760 --> 00:45:08,720
seized or KYC'd and you can move it anywhere in the world with zero fees in

854
00:45:08,920 --> 00:45:12,160
three seconds flat, you can create a bond out of it that

855
00:45:12,160 --> 00:45:15,560
guarantees a certain APR over a certain period of time that you're locked in for.

856
00:45:15,760 --> 00:45:20,840
You can use that bond as a collateralized as a basis for a collateralized loan.

857
00:45:21,040 --> 00:45:22,040
And then other people.

858
00:45:22,240 --> 00:45:26,160
So let's say there was an airdrop on Ethereum and I had, I don't know, 10

859
00:45:26,160 --> 00:45:28,440
Ethereum, right, so I was going to get a certain amount of this airdrop.

860
00:45:28,720 --> 00:45:32,760
But if I had 50 Ethereum, I could get five times more of the airdrop.

861
00:45:32,960 --> 00:45:36,000
So what I'm going to do is I'm going to go to Dan who's got a ton of HBD stable

862
00:45:36,200 --> 00:45:42,960
coins and get asked to loan his bonds, pay him a fixed fee for the loan of the bonds,

863
00:45:43,160 --> 00:45:47,080
go use that bond as collateral in the bank, get a massive liquid loan

864
00:45:47,280 --> 00:45:53,280
against that, and then make more more go buy Ethereum with that liquid loan and

865
00:45:53,280 --> 00:45:56,440
then make the airdrop and make more in the airdrop than I would have done.

866
00:45:56,640 --> 00:45:58,640
Once the airdrops happened, I'm going to go send

867
00:45:58,840 --> 00:46:05,280
the ETH back, get my liquid money back, put that back in the bank, get my NFT back,

868
00:46:05,480 --> 00:46:09,800
which is the bond, give that back to Dan and everyone takes their cut along the way.

869
00:46:10,000 --> 00:46:13,680
And I just end up with, I don't know, 40% more tokens in the airdrop than I would

870
00:46:13,880 --> 00:46:18,600
have ended up with, right? This is how these systems are going to work.

871
00:46:18,800 --> 00:46:23,760
And because you're on a genuinely decentralized stablecoin system

872
00:46:23,960 --> 00:46:28,520
that always clears into one dollar, it can be considered as pristine collateral.

873
00:46:28,840 --> 00:46:34,120
Which means it can always have the lowest interest rates because you can see which

874
00:46:34,320 --> 00:46:37,640
bonds are coming due, you can see the transparency of the system.

875
00:46:37,840 --> 00:46:41,280
It's a lot less dangerous and risky than the shadow banking system where there's

876
00:46:41,480 --> 00:46:45,040
loads of shady stuff going on and no one really knows what the actual risk is.

877
00:46:45,240 --> 00:46:47,560
So that's where I see that going.

878
00:46:47,760 --> 00:46:51,880
And the subject in itself is the bond system, the pristine collateral and loan

879
00:46:52,080 --> 00:46:56,840
system is a massive subject in itself and you could probably write a whole book on it separately.

880
00:46:57,040 --> 00:46:58,640
But that's where this economy is going.

881
00:46:58,840 --> 00:47:02,000
It's going to offer banks a replacement to the euro dollar system.

882
00:47:02,200 --> 00:47:04,600
And it's not like someone's going to make a lot of money out of this.

883
00:47:04,800 --> 00:47:08,000
This is a genuine decentralized ownerless replacement

884
00:47:08,200 --> 00:47:14,000
where no one's got any control in stake and everyone can come and compete equally.

885
00:47:14,200 --> 00:47:15,480
The other thing there that's important to

886
00:47:15,680 --> 00:47:19,480
note is that if there is a bank or a financier putting hundreds of millions

887
00:47:19,680 --> 00:47:23,280
of dollars into these stablecoins, they could change their stablecoin back

888
00:47:23,480 --> 00:47:27,440
into the governance token and dictate governance on the main chain.

889
00:47:27,640 --> 00:47:28,520
So that is a risk.

890
00:47:28,840 --> 00:47:29,800
But.

891
00:47:30,000 --> 00:47:31,560
From previous experience with what's

892
00:47:31,760 --> 00:47:36,440
happened on Hive and the Steem takeover, if a financier wants to do that and start

893
00:47:36,640 --> 00:47:40,320
voting in governance against the wishes of the community, the community would

894
00:47:40,520 --> 00:47:44,040
always be able to fork away and zero their balance on the new chain.

895
00:47:44,240 --> 00:47:46,400
So the financiers would always be

896
00:47:46,600 --> 00:47:50,080
incentivized not to do that and just to keep making their finance happen.

897
00:47:50,280 --> 00:47:54,080
But it would also be three and a half day wait and then a month wait for voting.

898
00:47:54,280 --> 00:47:57,280
Yeah. So that's a long attack.

899
00:47:57,480 --> 00:47:58,160
And then, of course,

900
00:47:58,160 --> 00:48:02,800
if we were to see any centralized amount being powered up,

901
00:48:03,000 --> 00:48:06,320
we'd immediately be very skeptical.

902
00:48:06,520 --> 00:48:08,480
As with as with any whale that's been doing

903
00:48:08,680 --> 00:48:13,360
abusive stuff to the community, potentially they have to explain themselves and be benevolent.

904
00:48:13,560 --> 00:48:15,520
There's been an average over the years

905
00:48:15,720 --> 00:48:19,400
of what the powered up amount is during peaceful times and war times.

906
00:48:19,600 --> 00:48:20,880
And

907
00:48:21,080 --> 00:48:28,120
if there was like, you know, a hundred percent increase or even a 50 percent increase, we'd all be

908
00:48:28,360 --> 00:48:29,160
highly alert to that.

909
00:48:29,360 --> 00:48:30,440
So

910
00:48:31,640 --> 00:48:34,280
no, nothing's impossible.

911
00:48:34,480 --> 00:48:39,840
And nothing is 100 percent certain in terms of even if they were to attack.

912
00:48:40,040 --> 00:48:42,440
Obviously, we have the fork in the way out.

913
00:48:42,640 --> 00:48:48,120
So it would have to be more of a person who isn't looking for money and be more

914
00:48:48,320 --> 00:48:52,160
of a person who's trying to take over the chain and doesn't care about money like

915
00:48:52,360 --> 00:48:54,240
a nation state or something.

916
00:48:56,280 --> 00:48:57,920
But yeah, even then, we have worst case

917
00:48:58,160 --> 00:48:59,600
scenario, but.

918
00:49:01,600 --> 00:49:03,400
Yeah, to close the chapter.