Did you get the upgrade?

Good morning! Welcome to The Daily Moon. The Digital Rupee pilot begins on Thursday. Bengaluru, Bhubaneswar, New Delhi, and Mumbai will be the initial test beds. Later, it'll be extended to a few chosen customers and sellers in nine other cities.

The markets recovered. Bitcoin was at $16,400 and Ethereum moved to $1,210 levels. Nasdaq rose in early trade. Back home, Sensex and Nifty scaled new highs.

DAI’s Redoing TradFi

It’s time for DAI holders to make some money. MakerDAO may increase the annual rewards for its DAI stablecoin to 1% if the community agrees. So far, an overwhelming majority is in favour of the change.

What’s this reward?We’ll need to first understand how DAI Savings Rate works. It’s similar to the interest you earn from bank accounts.

1. You earn interest when you deposit DAI in Maker’s DSR Smart Contract.

2. A cut or hike in this interest rate influences DAI’s demand.

3. The rate is earned based on the worth of the DAI deposited.

For instance, if the DSR is 1% and you’ve deposited 200 DAI, you’ll get 202 DAI at the end of the year.

How did it happen?Your earnings are paid for by people who borrow DAI from MakerDAO. And Maker uses those funds to invest in high-yield products as well as government bonds. The community felt that since Maker’s earning, so should its stakers.

Where are we now?DAI interest rate is just 0.01%. The community had asked for a revision to make staking more attractive. There were multiple options, but the community chose the highest figure. Let’s see if it sticks.

BTC Has A Sneaky Upgrade

Not all updates are praiseworthy. Bitcoin Core, a software used to connect to the Bitcoin network, has a new upgrade. There’s a particular proposal under Bitcoin Core’s 24.0 version that has irked the community; it’s got to do with which transaction gets approved first.

Eh?How does a transaction work? You pay, it lands in the queue, and when it’s your time, the transaction is processed. Now, this new upgrade allows you to skip ahead of the queue. Essentially, pay to not wait. So, those who have more get better service. Something like what TradFi does for wealthy customers.

Wait. No…Things will change at Bitcoin ATMs, where transactions were processed even before actual confirmations. It’s good news for miners though, because they’ll earn money out of this. Loyalists also claim that this is Satoshi’s vision for Bitcoin. No double spending if transactions take long.

SEC Lost Money

BlockFi owes money to everyone. We mean everyone. Including the SEC. According to bankruptcy filings by the now-bankrupt lender, the US securities regulator is owed $30 million.

Wait, what?Yes. So, earlier this year, BlockFi offered crypto lending as a product to ~600,000 customers. The SEC was not too happy, and BlockFi had to pay a fine of $100 million as part of the settlement. It didn’t pay the entire fine.

Tip of the icebergUnfortunately, this will get worse. Ankura Trust is its biggest creditor, and the lender owes it ~$700 million. It seems the trust is feeling the loss.

Curious fact: Valar Ventures, Peter Thiel’s VC, owns about 19% equity in BlockFi. For those who forgot, Thiel is Elon Musk’s mentor. An interesting read on the billionaire, if you have time on your lunch break.

Some Of Them Are Leaving Crypto

New research shows the crypto market saw its biggest outflow in three months. Basically, investors withdrew $23 million from the market.

What’s in, what’s out?Here’s what the report reveals:

1. Bitcoin outflows were worth $10 million.

2. Ethereum outflows were $6 million.

3. XRP, Polygon, and Tezos had combined outflows worth $1 million.

4. Blockchain equities saw outflows worth $13 million.

Among regions, the US, Sweden, and Canada saw the highest outflows.

Thank you, SBFThis is all a spillover from the fall of FTX. Confidence in crypto and crypto products has fallen post the FTX collapse. It’s been a downward trend over the past couple of weeks.

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