Voting

Celsius Network to make April 12 filing, including info on voting for restructuring plan

“Our Disclosure Statement will provide a summary of the Plan, account-holder recovery percentages, FAQs, and additional information on certain risk factors,” said Celsius.

Bankrupt crypto lender Celsius Network has announced it will be moving forward on its Chapter 11 restructuring plan with a disclosure statement containing information for claim holders.

In a April 7 notice to users, the Celsius debtors said they will file a disclosure statement on April 12. A March 31 court filing in United States Bankruptcy Court for the Southern District of New York said the statement was aimed at providing “adequate information” for claim holders to vote on the proposed restructuring plan sponsored by NovaWulf.

Celsius first presented the plan in February, which proposed creating a public platform fully owned by Earn creditors called NewCo. The committee of unsecured creditors will appoint the majority of the firm’s board members, with no “Celsius founder involvement or relationship.”

According to the debtors’ statement regarding the plan, the April 12 filing will include details of events leading up to Celsius’ bankruptcy, projected recoveries for certain stakeholders should the restructuring plan be approved, and answers to frequently asked questions. The bankruptcy court is expected to conduct a hearing regarding approval of the disclosure statement on May 17, with a vote on the plan to follow.

Related: Celsius publishes list of users eligible to withdraw majority of assets

Since filing for Chapter 11 in July 2022, Celsius’ bankruptcy proceedings in court have included discussions on assets from the firm’s Earn program, crypto holdings, Bitmain coupons, and personal information of its users. In March, the bankruptcy judge approved a settlement plan allowing Celsius custody account holders to get back 72.5% of their crypto.

Magazine: Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame

Arbitrum poses new governance proposals after community furor

The Arbitrum Foundation has made a couple of new governance proposals following the fracas that occurred over its first attempt.

The Arbitrum Foundation has released a raft of new improvement proposals following the fracas that ensued after its first failed attempt at governance.

On April 5, Ethereum layer-2 solutions provider Arbitrum posted new Arbitrum Improvement Proposals (AIPs) for the governance of the network.

The new proposals include AIP-1.1, which covers a smart contract lockup schedule, spending, budget and transparency. The other, AIP-1.2, tackles amendments to current founding documents and lowers the proposal threshold from 5 million Arbitrum (ARB) tokens to 1 million ARB “to make governance more accessible.”

In an April 5 tweet, it confirmed the Arbitrum DAO came to a consensus against its first proposal, AIP-1.

On April 2, the Arbitrum Foundation stated AIP-1 “likely will not pass” due to community backlash. Tokenholders objected to the proposal, arguing that it encompassed too many topics, and decried granting around $1 billion worth of ARB tokens to the foundation.

The foundation then backtracked, stating in an April 5 tweet that it would not take control of the tokens:

“The Foundation will not move any of the remaining 700M tokens in the Administrative Budget Wallet until an acceptable budget and smart contract lockup schedule have been approved by the DAO.”

The foundation also issued a transparency report that “describes actions taken to get the DAO up and running.”

“We have heard the feedback,” it stated, before adding that it has “worked diligently to address it and make sure the Foundation can represent, and serve the DAO’s best interests with their support.”

The two new AIPs were posted on the Arbitrum community forum and will be available for feedback for at least 72 hours before a planned week-long snapshot vote.

Related: Arbitrum to break up governance votes after community backlash

ARB prices have dropped 4% over the past 24 hours, falling to $1.22. The layer-2 token was dumped heavily following its airdrop on March 23 and is down 86% from its peak price of over $8.50 on that day.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Arbitrum to break up governance votes after community backlash

The Arbitrum Foundation has backtracked on a controversial proposal and ratification vote that gave it control of a huge chunk of tokens.

Ethereum layer 2 solutions provider Arbitrum has backtracked on its governance voting system following community backlash from token holders.

On April 2, the Arbitrum Foundation tweeted that its first governance proposal, AIP-1, “likely will not pass” and added its “committed to addressing the feedback received from the community.”

The move will break up the debatable governance package into smaller segments. The team noted:

“AIP-1 is too large and covers too many topics. We will follow the DAO’s advice and split the AIP into parts. This will allow the community to discuss and vote on the different subsections.”

The U-turn follows a weekend of community backlash over the foundation’s “ratification” vote for decisions it had already undertaken. The proposal would have given the foundation, a centralized company, control over 750 million Arbitrum (ARB) tokens worth around $1 billion.

Critics, such as decentralized finance and decentralization advocate Chris Blec, argued the proposal was “decentralization theatre.”

The foundation stated that the 750 million tokens received would be voted on in its own AIP. “We’re working on options to add more accountability,” it stated, adding, “for example, a vesting period of 4 years. Furthermore, tokens held by the Foundation cannot be used to vote.”

There will also be a budgeting proposal, in which the foundation will propose transparency reports “to make the community aware of how the funds are spent over time.”

The Special Grants program is vague and lacks DAO involvement, the foundation stated. It will be renamed “Ecosystem Development Fund” with context provided on how the funds will be used to benefit the Arbitrum ecosystem.

Related: Arbitrum’s first governance proposal sparks controversy with $1B at stake

The new Arbitrum Improvement Proposals will be issued “early this week,” the foundation concluded.

ARB token prices took a massive hit over the weekend, slumping 18% from an April 1 high of $1.40 to a low of $1.15 in the April 3 morning Asian trading session, according to CoinGecko.

ARB has seen an 86% price decline since its airdrop on March 23.

Hodler’s Digest: FTX EU opens withdrawal, Elon Musk calls for AI halt, and Binance news

Coinbase CEO calls for action in electing pro-crypto lawmakers following SEC Wells notice

Brian Armstrong urged crypto proponents to “contact their congressman, donate to pro-crypto candidates, show up at town halls” in an effort to achieve clear rules for crypto.

Brian Armstrong, the CEO of United States-based cryptocurrency exchange Coinbase, has renewed calls for crypto users to “elect pro-crypto candidates.”

In a March 23 Twitter Spaces discussion, Armstrong said Coinbase would be making efforts to organize the roughly 50 million U.S. citizens who use crypto into a political force. His statement followed the U.S. Securities and Exchange Commission issuing a Wells notice to the crypto exchange, suggesting a potential enforcement action.

“What we’re going to do is start putting out content where people can contact their congressman, donate to pro-crypto candidates, show up at town halls, make your voice heard,” said the Coinbase CEO. “We are going to elect pro-crypto candidates in this country to make sure that our success is ensured.”

Armstrong’s call to action was the latest move by the Coinbase CEO representing a change in his stance on mixing business and politics. In September 2020, he wrote a blog post claiming the exchange should not advocate “for any particular causes or candidates internally that are unrelated to our mission because it is a distraction from our mission.”

Related: Coinbase is planning to set up crypto trading platform outside US: Report

Since that 2020 post and following its initial public offering in April 2021, Coinbase executives have openly become more involved in U.S. politics. Armstrong has met with U.S. lawmakers and regulators, and chief policy officer Faryar Shirzad announced the creation of a voter registration portal in August 2022. In February, Coinbase called on its users to “advance pro-crypto policy in all 435 Congressional Districts across the U.S.” with the launch of the Crypto435 campaign.

“When you think about 20% of Americans owning crypto, […] those are real voters who care about these races and who can actually make a difference if they show up to vote,” said Coinbase’s head of U.S. policy, Kara Calvert.

It’s unclear if the SEC intends to pursue enforcement action against Coinbase despite the Wells notice. Chief legal officer Paul Grewal said Coinbase had “simply been told nothing” regarding which assets or services the SEC may be targeting. On Twitter Spaces, Armstrong renewed calls for listeners to support a petition to the financial regulator arguing that staking would not qualify as a security subject to its enforcement.

“A reprehensible amount of resources and brainpower have been spent in the U.S. trying to engage with this SEC and trying to create substance and a path out of the wraithlike comments issued by the agency,” Crypto Council for Innovation CEO Sheila Warren said to Cointelegraph. “Are we really going to allow one agency in the U.S. to set the entire trajectory of an innovation for the entire country, especially if that agency refuses to engage with the industry it is trying to regulate?”

Magazine: Samsung’s Bitcoin ETF, $700M bust, Coinbase exits Japan

LinksDAO likely to put in ‘compelling offer’ to buy Scottish golf course

If the final tally remains in favor of the purchase, the LinksDAO acquisition committee is expected to pitch an offer around $900,000 to purchase the Spey Bay Golf Club.

The decentralized autonomous organization-operated golf startup, LinksDAO, may soon put in an offer to purchase the newly marketed Spey Bay Golf Club in Scotland worth about $900,000. 

LinksDAO — self-described as a “global group of golf enthusiasts” that is on a mission to build the “world’s greatest golf community” — officially opened the proposal vote on Feb. 20, which came after a few weeks of informal deliberation.

It would be the DAO’s first ever golf course purchase.

While voting officially closes on Feb. 22 at 12pm Eastern Time, over 88% of the 4,100 LinksDAO tokenholders had already voted in favor of the proposal at time of writing.

If the final tally remains in favor of the purchase, the LinksDAO acquisition committee will meet with the relevant parties required to construct a “compelling offer” for the purchase of the club “with the full intent of successfully purchasing the golf course,” the proposal stated.

The current voting tally of LinksDAO tokenholders on the proposal to put in an offer for the Scottish golf course. Source: LinksDAO

The authors of the proposal — “Bez,” “Jim,” “cbruce” and “nickwalkermsu” — explained that while much of the DAO’s research efforts have gone into finding a suitable golf course purchase in the United States, “this listing was too special to ignore.”

“In our search for our first golf course to purchase, we have identified a promising property in Scotland called Spey Bay Golf Club. This vote is to determine if we should move forward with submitting an offer and working to purchase the course.”

The authors added that the course is “playable today,” and that its high ceiling to low price ratio makes it a worthy investment.

“Even a price of triple the ‘guide price’ would be cheaper than most mediocre courses we have assessed thus far in the US,” the authors explained.

As such, LinksDAO compressed the voting window to 48 hours in order to act swiftly on the potential purchase and hopefully get good price for the club:

“The timing of the sale requires us to act now should we decide to participate in the process. […] We intend to execute this purchase while maintaining velocity on our efforts to acquire course(s) in the US.”

LinksDAO is expecting to pitch an offer in the vicinity of $900,000, which is roughly its current market value, according to Golf Business News.

The 18-hole golf course is located in Fochabers, about a three-and-a-half-hour drive away from Scotland’s capital city of Edinburgh.

The DAO explained the potential purchase would be financed with capital from its fundraise and that it would transfer funds from its treasury to a corporate bank account to support ongoing operations.

The authors of the proposal noted that this would occur within 30 days of the purchase.

LinksDAO officially established itself as a DAO in January 2022, which came on the back of a $10.5 million fundraising effort where more than 9,000 of its “leisure” and “global” membership NFTs were sold on OpenSea in a short 24-hour period.

There are now 5,302 owners of LinksDAO memberships, which are issued on the Ethereum network, according to nonfungible token marketplace OpenSea.

The average floor price of the memberships is 0.29 Ether (ETH), or about $480 at current prices.

Related: Types of DAOs and how to create a decentralized autonomous organization

While it is not known how much is in the LinksDAO treasury, the LinksDAO market cap is currently $4.34 million, according to CoinGecko.

NBA superstar Stephen Curry is a notable figure to have invested in a LinksDAO membership. However it is not known whether he is still a token holder.

The Agenda podcast explores how DAOs can strengthen workers’ rights

TheCaféDAO and TheLaborDAO sit down with The Agenda to discuss how decentralized autonomous organizations can revolutionize the fight for workers’ rights.

Collective action, labor struggle and protest go hand in hand, and it’s no secret that unionizing and organizing to fight for workers’ rights is a tedious task. But is there a way to simplify and boost the efficiency of the process?

On this week’s episode of the newly launched podcast The Agenda, Cointelegraph senior copy editor Jonathan DeYoung and head of markets Ray Salmond sit down with Larry Williams Jr., co-founder of TheLaborDAO, and Daniel Carias and Dustin Tong, co-founders of theCaféDAO, to discuss the state of workers’ rights in the United States and how blockchain can strengthen labor movements.

The trio also touched on whether a decentralized autonomous organization (DAO) could successfully and equitably run a business.

Workers should be stakeholders and have access to equity

For Carias, the initial idea for theCaféDAO — whose goal is to create a physical coffee shop governed by a DAO — came about during the peak of the COVID-19 pandemic when most of his colleagues at the coffee shop he was working at had been laid off and he experienced new freedoms as part of a skeleton crew.

His boss let the workers take control of the coffee shop’s operations and run it as they pleased. “I was just so grateful,” he shared. “The people that were left, we were just so happy to work together that it was almost seamless.”

“That’s when I first conceptualized the idea of theCaféDAO. How can we run an organization, decentralized, where there isn’t a central leader? There isn’t a CEO-type person, right? […] Our customers were very happy. We were very happy. It was like the happiest time of my life, to be honest with you. And I just kept thinking, is there a way to do this out in the real world where I have a say, a vote?”

When asked about what finally catalyzed him to co-found theCaféDAO, Carias said:

“At least for me, it’s born from the frustration of not being able to control your destiny, essentially. I mean, we work these jobs like literally five or more days a week. We spend a large majority of our time at these places of work, but we don’t really have a say in the direction of the business. A DAO could potentially give workers a say in their destiny.”

And as for why he opted to go with the DAO model rather than a worker cooperative, he shared: “You have grocery cooperatives. You have farming cooperatives. Those already exist. But how can we use this blockchain technology to scale that up?”

Using blockchain to strengthen workers’ movements

While theCaféDAO is exploring how a DAO could give baristas more agency in the day-to-day processes of running a coffee shop — while also allowing them to develop and harness the equity of their unique coffee-making skills — TheLaborDAO aims to enhance workers’ movements in a variety of ways.

Williams believes that blockchain technology, along with the DAO structure, can be used to fund workers who are striking, enhance communications and ensure that the objectives of various unionized groups are aligned. He shared:

“Organizers are great at some of the most important skills, which is listening, documenting what workers are saying and bringing them together to get past issues, to win, to build power. But it’s very difficult to do that when your opposition has all the technology and basically all the cards. So, technology levels the playing field.”

Williams explained that while large, traditional unions tend to be very large and have deep treasuries, independent unions have significantly smaller resource pools — which is where blockchain and the DAO structure come in.

Related: As labor struggle takes center stage, can DAOs democratize work?

Tong of theCaféDAO chimed in with an alternate view, suggesting that unions may not even be necessary if a DAO is managing a company. “In my opinion, a union forms because there’s a misalignment between the business and its employees. Hopefully, a DAO won’t have that kind of misalignment.” 

DAO, Web3, Coffee, decentralized autonomous organization
TheCaféDAO serves up freshly brewed coffee at NFT Seattle. Source: TheCaféDAO

Tong explained that he sees DAOs as a potential way to help build more equitable structures of power and create more sustainable relationships between company initiatives and the employees who have to do the work.

He said, “We want to do this to pioneer a new business model that doesn’t suck. We believe that a DAO structure may be able to align not only the business objectives but also align on employee rights.”

When asked about the future of the labor movement and what role blockchain-based DAOs may play, all three guests excitedly agreed that the future is bright and that a growing number of people are expressing interest in becoming involved with unions and DAOs.

According to Williams, “The beauty of a DAO is that it can be part time as a contributor. You can be full time, you can work in multiple DAOs, you know? You can work a full-time job and be in a union, just like Dan.”

Tong summed up the group sentiment:

“I think DAOs are an answer to how we can unite in the future. But if not DAOs, I think blockchain philosophies and technologies will enable this simply through just increased transparency. As anybody in a level of organization can see all the decisions being made at any level, I think that will level the playing field across the board. So, whether DAO or not DAO, I think the future is going to be better because of how blockchains enable transparency at a scale.”

To learn more about how theCaféDAO and TheLaborDAO use blockchain and the structure of decentralized autonomous organizations to accentuate organized labor movements, tune into the full episode of The Agenda on Cointelegraph’s new podcasts page or on Spotify, Apple Podcasts, Google Podcasts or TuneIn.

The Agenda is a new podcast from Cointelegraph that explores the promises of crypto, blockchain and Web3, and how regular people level up and improve their lives with technology.

The views, thoughts and opinions expressed in this podcast are the participants’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Election tally: Does blockchain beat the ballot box?

With election integrity under assault in the United States and elsewhere, is blockchain technology part of the solution? Greenland explores voting options.

In October, Greenland was reported to be exploring the feasibility of an online voting platform for its national elections. Among the options being considered is a blockchain-based system. 

That isn’t entirely surprising. Electronic voting, or e-voting, has long been viewed as a promising use case for blockchain technology. “It’s time for online voting,” wrote Alex Tapscott in a New York Times opinion piece in 2018. “Using blockchain technology, online voting could boost voter participation and help restore the public’s trust in the electoral process and democracy.”

It seems especially timely now as large swaths of the world’s population are raising questions about election integrity — most notably in the United States, but in other countries as well, such as Brazil.

Tim Goggin, CEO at Horizon State, for one, believes that blockchain-enabled elections represent a “significant improvement” over the way most elections are operated today. Voting machines break down, software fails and election irregularities often create uncertainty and doubt among the voting public.

With a public blockchain, by comparison, “it is much easier for voters to trace their vote,” Goggin told Cointelegraph, “and audit an election themselves.”

Moreover, if something untoward does occur in the voting process, it is easier to identify it on a decentralized ledger with thousands of nodes than on current tabulation systems “where counting is done behind closed doors,” says Goggin, whose company set up a public election for South Australia in 2019, the first time blockchain technology was used in the voting process for that Australian state.

Still, blockchain technology’s potential vis-a-vis public elections has been highlighted off and on for some time now. No country has yet to use blockchain technology in a national election.

Marta Piekarska, senior DAO strategist at ConsenSys, recalls working at Hyperledger in 2016, where blockchain voting was discussed as a promising use case. “Six years later, and we are still talking about this,” she told Cointelegraph. “We are still quite far from a situation where any kind of distributed ledger would be considered” — at least in a national election. 

A few countries, notably Estonia, have been experimenting with systems that allow people to vote online, she further explained. On the other hand, “Netherlands abandoned the idea of doing electronic voting due to some of the concerns around security and authenticity of the votes.”

Then, there’s sparsely populated Greenland, where the vast distances make it difficult for people to vote in person. A group of researchers from Concordium Blockchain, Aarhus University, the Alexandra Institute and the IT University will soon be investigating “whether a blockchain-based system will be a more trustworthy e-election on the world’s largest island,” according to the Concordium press release.

Ensuring trust is critical

Any voting system requires trust, and trust requires a number of properties — any one of which can be a challenge depending on the circumstances, Kåre Kjelstrøm, chief technology officer at Concordium, told Cointelegraph. For in-person voting, these include: whitelisting: ensuring only eligible voters take part; identification: voters need to prove their identity when casting a vote; anonymity: votes are cast in private and can’t be traced back to the voter; security: locations are secured by the government; and immutability: cast votes can’t be altered.

“Any digital system that replaces a manual voting system needs to address at least those same issues to ensure trust and this has proven to be rather tricky to pull off,” Kjelstrøm explained. “But blockchain may prove to be part of a solution.”

A public decentralized blockchain ensures immutability by default, after all, “in that any transaction written can never be deleted.” The system is secured by cryptography and “transactions are anonymous, but are open for inspection by anyone in the world,” said Kjelstrøm, adding:

“The trick is to maintain privacy and anonymity while ensuring any eligible voter can only cast their vote once. […] This is a current research topic at top institutions.”

Permissioned or public chains?

“The main problems I see for public elections as opposed to say corporate governance is that there cannot be a permissionless [blockchain] system because voter information is private and we cannot trust all third parties,” Amrita Dhillon, professor of economics in the department of political economy at King’s College London, told Cointelegraph.

“The second problem is that of inputting the vote at a location of the voters choice: We cannot prevent anyone coercing voters at the point at which they submit the e-vote,” she added.

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Others say permissioned chains aren’t the answer because they are run by a single entity or a group of entities that exert complete control of the system. “Worst case this means that a private blockchain can be tampered with by those self-same guardians and elections rigged,” said Kjelstrøm. This isn’t much of a problem in Western countries, “but in large parts of the world this is not true.”

On the other hand, if one can “weave self-sovereign identity (SSI) into the core protocol,” as Concordium, a layer-1 public blockchain, aspires to do, that “may be just the right technology to power public elections,” said Kjelstrøm.

That said, Goggin noted that many governments will probably opt to use private blockchains in line with their own privacy/data laws, and there are many ways to set up permissioned blockchains. But, if they don’t at least offer the public an auditable trace of voting records, then they aren’t likely to boost the public’s belief in election integrity. He calls himself “a big fan” of public and distributed blockchains.

The privacy question is especially knotty when it comes to public elections. “You should not be able to tell which candidate some individual voted for, or even if they voted at all,” wrote Vitalik Buterin in a blog titled “Blockchain voting is overrated among uninformed people but underrated among informed people.” On the other hand, you want to ensure — and if necessary prove — that only eligible voters have voted, so some information like addresses and citizen status may need to be collected. Buterin viewed encryption as a way to get around the privacy conundrum.

Goggin suggests something similar. Horizon State might ask a client to “hash,” i.e., encrypt or scramble, eligible voter identities “before we are provided them, and we then hash those identities again.” This means that neither the client nor Horizon State can readily determine who voted or how they voted. He added:

“Voters will be able to see their vote on the chain, but there is no way for voters to prove that it is their vote, given they can see other votes on the blockchain also.”

Dhillon, for her part, proposes a compromise where “some parts of the process are centralized,” i.e., voters come to a booth where their identity is checked and they submit their vote, “but subsequent parts of the chain can be decentralized to make them more secure and tamper proof.”

Technical limitations?

In 2014, the city of Moscow’s Active Citizen e-voting platform was created to let Muscovites have a say in non-political municipal decisions, and in 2017 it used the Ethereum blockchain for a series of polls. The largest of these tapped 220,000 citizens and the voting results were publicly auditable. It revealed some scaling limitations.

“The platform based on proof-of-work reached a peak of approximately 1,000 transactions per minute [16.7 transactions per second]. This meant that it would not be easy for the platform to handle the volume if a higher proportion of Moscow’s 12 million citizens participated in the voting,” according to Nir Kshetri, a professor at the Bryan School of Business and Economics at the University of North Carolina at Greensboro. From this, Kshetri and others concluded that this PoW version of the Ethereum blockchain “was not sufficient to handle national elections.”

Things might be different in 2023, however, when Ethereum 2.0 implements sharding. This could boost the chain’s speed to as high as 100,000 TPS, which in turn “increases Ethereum blockchain’s attractiveness for voting,” he told Cointelegraph.

But blockchains probably still need to be more secure before they are ready for public elections, though this is manageable in Kshetri’s view. “Blockchains are likely to become more secure with increasing maturity.”

Buterin, too, said in 2021 that security was still an issue vis-a-vis elections. For that reason, “in the short term, any form of blockchain voting should certainly remain confined to small experiments. […] Security is at present definitely not good enough to rely on computers for everything.”

Online transactions, unlike manual systems, “can occur in the blink of an eye,” added Kjelstrøm, and software-driven attacks on an e-voting system can “potentially foil or damage the system or the vote.” Therefore, “any new system would have to be introduced slowly to ensure the voting system remains intact and fully functional.” Governments might begin at a small scale and conduct proof-of-concepts for select non-critical elections first, he said.

Usability is critical 

Technology isn’t the only obstacle that needs to be solved before blockchain voting attains wide adoption. There are political and social challenges, too.

“The technology is there,” said Piekarska. “We can do it right now. I mean, decentralized autonomous organizations are governed through online voting now, and they are managing trillions of dollars.” But national elections are a different beast, she suggested, because:

“On the government level, your problem is: how do you create a system that is usable by citizens?” 

One’s constituency is not tech-savvy members of a DAO, “but people like my mom, who is still struggling with online banking,” Piekarska added.

How long will it be, then, before the first national election with blockchain voting? “Hopefully not decades, but surely we’re not there yet,” said Kjelstrøm.

“It could be tomorrow or it could be in 50 or 60 years,” opined Piekarska, “because there are so many things that need to align.” In Europe, most people trust their governments and the quality of voting is not really an issue, so the push for encrypted auditable ledgers may not be so urgent. In nations with weaker governance where elections are often manipulated, conversely, why would the powers-that-be ever consent to tamper-free blockchain voting?

Greenland, which struggles with participation in its general elections primarily because of the great distances that its citizens must travel to vote, might prove an exception.

“Yes, some solid governments want to do the right thing but they struggle with the accessibility of in-person voting,” Piekarska acknowledged. “That’s probably where we might see the first movers because there is a very high incentive for them to do it. But these are unique situations.”

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All in all, it’s critical that people have trust in their voting system, whether manual, electronic or blockchain-based, and building trust can take time. But, as more people become used to accessing public services online, electronic voting should take greater hold in different parts of the world, and once that happens, blockchain voting could catch on, given its well-documented advantages, allowing individuals to audit their own votes.

Large-scale blockchain-enabled national elections are probably some years away still. Even so, Goggin has been engaging in discussions recently “about providing elections at that scale,” adding:

“While it isn’t the norm yet, governments are beginning to consider the value that online blockchain voting systems can offer in efficiency, accessibility, speed, security and transparency.” 

MakerDAO Risk Core Unit makes urgent parameter change request in light of recent market events

The proposed change would prevent certain coins that have fallen in value recently from being used as collateral.

The MakerDAO Risk Core Unit, a key group within the MakerDAO governance system, submitted an urgent request on Nov. 11 to change collateral parameters for the decentralized autonomous organization’s stablecoin, Dai (DAI).

Primoz, a member of the Risk Core Unit team, posted the request to the MakerDAO forum.

“In light of recent events in the crypto ecosystem and surrounding uncertainty regarding financial stability and asset liquidity of various entities and their possible relations with token governed protocols, we are proposing following temporary emergency measures.”

The message proposed that the debt ceiling for MATIC (MATIC), LINK (LINK), YFI (YFI) and renBTC vaults should be reduced by the following amounts:

  • MATIC: from 20 million to 10 million (50%)
  • LINK: from 25 million to 5 million (80%)
  • YFI: from 10 million to 3 million (70%)
  • renBTC: from 10 million to zero (100%)

A separate, earlier proposal also suggested that the debt ceiling for MANA (MANA) be lowered from 10 million to 3 million.

If the proposal passes, it will reduce the number of tokens that can be used as collateral to mint new Dai.

Some of the tokens on this list are so close to the new debt ceiling that they will immediately hit it or be close to hitting it should the proposal pass. For example, there is currently $14.2 million worth of MATIC backing Dai, but the proposal would lower the debt ceiling for MATIC to $10 million. This would mean that users would no longer be able to mint new Dai by depositing MATIC.

In the proposal, Primoz sought to calm users and express that the changes may only be temporary:

“When the situation becomes clearer and the environment less risky, we (@Risk-Core-Unit) or either MOMC will propose further parameter changes to adjust parameters based on the future state. While we do not necessarily want current positions to unwind, we want to limit further possible exposure.”

Over the past few days, the crypto community has been rocked by the news that FTX, the world’s third-largest crypto exchange by volume, did not have enough liquidity to handle all customer withdrawals. This event started a contagion that has spread through the crypto market, leading many coins to have huge losses.

MakerDAO has turned out to be the latest victim of this contagion. As the value of the collateral backing Dai has fallen, debt levels have risen too high for the comfort of the Risk Core Unit team. This may lead to lower debt ceilings and increasing frustration for borrowers who wish to mint new Dai.

Single-issue crypto voters weigh in on midterms before US Election Day

The outcome of elections with pro- and anti-crypto political candidates could determine the future of digital asset legislation and regulation in the United States.

On Nov. 8, registered voters across the United States will cast ballots for political candidates to represent them at the local, state, and federal level — and for some people, crypto is the main issue.

Voters took to social media amid early voting in certain U.S. states and ahead of Election Day to proclaim that despite many of the issues driving people to the polls — including ensuring free and fair elections, gun control, and abortion — digital assets were at the forefront of their decision-making process. President Joe Biden’s term doesn’t end until January 2025, but the future majority control of both the House of Representatives and Senate currently hangs in the balance, with a number of openly pro-crypto candidates running.

“Two thoughts on my mind in the voter’s booth tomorrow,” said Twitter user MetaSailor. “1. What’s the candidate’s stance on Crypto? 2. What’s the candidate’s stance on decriminalizing Cannabis?”

Though many Republican lawmakers and those in their base have come out in support of crypto-related regulations and policies, promoting adoption or a framework for digital assets is not limited to one side of the political aisle. President Biden, a Democrat, signed an executive order establishing a regulatory framework for digital assets in March, and members of his party have worked with Republican lawmakers on stablecoin legislation.

“We need a few Dems and a few Republicans in Congress who want their States to be crypto friendly to pass a good bipartisan Bill that protects the rights of Americans to buy, sell, and hold crypto,” said Reddit user Invest07723.

Source: Twitter

Related: US election update: Where do the pro-crypto candidates stand ahead of the election?

“It’s the most consequential election that crypto has ever had,” Jeff Howard, North American head of business development at digital assets platform OSL, told Cointelegraph. “It will determine how crypto is regulated for many, many years to come.”

According to Howard, crypto has become a force to be reckoned with in elections due to a number of political action committees funding candidates and crypto groups becoming “a real voting block.” However, the party that assumes control of the House or Senate could influence ongoing legislation on digital assets in the United States:

“Democrats are more concerned about consumer protection and financial inclusiveness, where Republicans are more concerned about financial innovation and kind of a free market economy.”

A survey initiated by asset management firm Grayscale in October suggested that roughly a third of U.S. voters planned to consider political candidates’ positions on crypto in the midterm elections. According to a Nov. 4 CNN report, roughly 41 million people across 47 states participated in early voting, but the majority of these ballots came from voters over the age of 65.

Crypto and decentralization could influence voters in 2022 US midterm elections: Report

“Voters are less likely to support candidates perceived as standing in the way of a decentralized internet,” said Haun Ventures.

A poll of 800 likely midterm voters in four U.S. swing states suggested that the overwhelming majority favored ideas around decentralization, and many were HODLers.

According to a Sept. 29 report from venture capital firm Haun Ventures on a survey conducted by business intelligence company Morning Consult, roughly one in five voters polled in New Hampshire, Nevada, Ohio and Pennsylvania said they owned cryptocurrency or nonfungible tokens. In addition, 91% of respondents supported a “community owned, community governed” internet that “gives people greater control over their information.”

Poll of 800 swing state voters who own digital assets. Source: Haun Ventures

“Significantly, and reflective of how the values that voters associate with Web3 will drive electoral behavior, voters are less likely to support candidates perceived as standing in the way of a decentralized internet,” said Haun Ventures. “In other words, as both parties consider how good Web3 policy will translate into good politics, the values of Web3 are what voters want to see elected officials supporting, not standing in the way of.”

The survey noted that the voters polled leaned slightly Democratic, but promoting a decentralized and democratized internet seemed to be a bipartisan issue, with both sides having “limited faith in the government’s ability” to regulate Web3. Haun Ventures reported that 55% of voters surveyed would be less likely to vote for political candidates who opposed internet decentralization policies, while 72% of HODLers in the poll said they owned digital assets “because they want an economic system that is more democratized, fair, and works for more people.”

“This poll makes it clear that in these swing states, Web3 Voters now represent a significant cohort of the middle class electorate, and are younger and more diverse than the population as a whole.”

Source: Haun Ventures

Related: US lawmaker hints at calling for Republican votes in 2022 midterms over crypto policies

The poll targeted people planning to vote in the 2022 midterm elections in the United States, to be held in November with candidates taking office in January. Morning Consult conducted the survey from Sept. 15–20. Katie Haun, a Coinbase board member and former board member for OpenSea, raised $1.5 billion to form Haun Ventures in March for investments in Web3.