Kevin @Berrey | Sunny @sunnya97 | Chjango Unchained @chjango
tl;dr
-OSL (Support Lab) Town Hall August 26 10am EST, 2pm UTC in the Osmosis Discord
-big discussion of Tornado Cash sanctions: working on next steps with Void Protocol to provide a middle ground of privacy on Osmosis that fulfills our need for private transactions without running afoul of regulators
-Rektdrop underway, all tokens except OSMO, ATOM, UST, and LUNC distributed
-Osmosis Grants Program: Q1 Retroactive just published, also includes lots of new RFP suggestions
-Grant Recipient Showcase:
-Blockpane: Tenderduty validator monitoring
-Yieldmos: authz restaking & pool compounding
-Margined Protocol: perps on top of Osmosis, starting with OSMO
Sunny in northern Croatia, taking in the beautiful view
Kevin remembers the Game of Thrones vibe
OSL (Support Lab) Town Hall August 26 10am EST, 2pm UTC in the Osmosis Discord
-thoughts on the Ethereum merge and validators censoring transactions, soft forks, etc?
Sunny: yeah, the Tornado Cash sanctions are a big deal
-first time that a piece of code has been added to the OFAC sanctions list
-not a lot of clarity yet
-are validators (or miners/mining pools) on the hook for respecting sanctions list
-and what will they do? will they refuse to propose blocks with txs from sanctioned addresses, refuse to vote Yes on those blocks, refuse to keep working on a chain that has such txs?
-lots of over-reaction at the moment, going above and beyond what’s necessary according to US sanctions law
-e.g. blocking addresses that have ever interacted with a sanctioned address (e.g. the Tornado ETH dusting)
—I don’t expect over-compliance to continue, and I expect users will begin to delegate away from validators who over-comply
-Kevin: it’s super lazy regulation and compliance to the regulation
Sunny: we’ve been chatting a lot with the Void team lately
-it’s top of mind for them, with devs getting arrested
-floating some ideas:
-the reason Tornado Cash got hit so hard was that N. Korea laundered a billion dollars through it
-so how can we encourage proper/legal uses of privacy while blocking nefarious uses
-e.g. maybe governance could de-anonymize certain transactions
-so if there was a $1 billion hack and it got put through Void, governance would probably want to de-anonymize the transaction
-and we could also restrict the scope of Void/Osmosis privacy
-purpose of privacy on Osmosis is not coin mixing — we want private trading
-trading without all your trade info being revealed on-chain
-so people can copy-trade, front-run, etc.
-we could make it so you can’t transfer through Void, but just for private trading and then you have to withdraw back to Osmosis to transfer anything
-most users/governance does not want to be helping N. Korea launder money
-privacy shouldn’t be scary: we need to combat the narrative that it’s for money laundering only
Chjango: we need a ‘don’t be evil’ motto like Google’s
-there will be more censorship possible in Ethereum PoS
-Sunny: I don’t think this has much to do with the merge
-some PoW mining pools are also censoring transactions
-the difference is that if 1/3 of Ethereum validators decide not to vote on sanctioned address txs - but that hasn’t really been discussed
Chjango: on Bitcoin, it’s higher-level apps that are being censored (Blender)
-vs Ethereum, where resisting censorship could potentially break consensus
Sunny: right, which is the reason for exploring the privacy design space in such a way as to not run afoul of sanctions
-there are other protocols building private transfer systems, like Anoma
-so if we remove that from the scope of what we’re building, we avoid a lot of legal risk
Chjango: and N. Korea is unlikely to use Osmosis if txs can be de-anonymized, and there are no private transfers
Kevin: you’re not going to rob a store with security cameras
Rektdrop: you may have noticed that you got some tokens in your account
-the process took a long time, but it has finally gone through
-it’s based on which pools you were LPing in at the time
OSMO, ATOM, UST, LUNAC remain undistributed, everything else is finished
-working on acquiring the appropriate assets for distribution
-we’ll distribute OSMO equivalent of UST and LUNAC, since they are difficult to acquire, and we expect users to prefer OSMO to useless tokens
-transferring assets from foundation multisig to the rektdrop—finishing the legal requirements, and then it can go through
-capped the rektdrop on the lower end at $.50, bc it saves a lot of blockchain space, unless there is a large community backlash
Kevin: question from community about large Terra Classic burn happening in a couple days [if I heard this correctly—oh, maybe an airdrop expiry], what will Osmosis do?
Sunny: I’ve talked to the team about steps to reactivate IBC, so it’s up to them.
-Osmosis is happy to provide technical support for them to do this, but they have to do the actual work
Front-end: swap widget has gotten an upgrade:
-it takes up less space on the front-page, making room for new upcoming features… (!)
recently released a blog post: https://grants.osmosis.zone/blog/ogp-retroactive-report-q1