Welcome to The Protocol, your go-to source for the latest and most significant developments in the cryptocurrency technology realm. I’m Ben Schiller, CoinDesk’s Opinion and Features editor, here to guide you through this week’s highlights.
In this edition, we will cover:
– Strategic Merger in DAO Governance
– Turbulence at the Ethereum Foundation
– New Stablecoin USDh Launching on Bitcoin
– A $25 Million Grant Initiative for DePIN Projects
Network Developments
Strategic Merger in DAO Governance
In a bold move to enhance decentralized governance, Agora, a blockchain governance startup, is set to acquire its rival, Boardroom. This acquisition is framed as a strategic initiative aimed at strengthening governance within the Ethereum ecosystem. Agora co-founder Yitong Zhang emphasized the importance of this merger, citing expectations for a renewed focus on decentralized governance, particularly in light of President Trump’s commitment to providing regulatory clarity for the blockchain industry.
Zhang stated, “2025 is the year we make good governance the standard for all protocols in Ethereum.” Founded in 2022 by Zhang, along with Charlie Feng and Kent Fenwick, Agora initially focused on governance tools for Nouns DAO, a prominent protocol that emerged during the DAO and NFT boom of 2021. Agora’s mission is to provide user-friendly, open-source governance tools for decentralized autonomous organizations (DAOs) such as Uniswap and Optimism.
Boardroom, which predates Agora, initially offered similar governance solutions but has since shifted towards being a data feed service, akin to a “Bloomberg” for crypto governance information. While the financial terms of the acquisition remain undisclosed, Boardroom’s employees will transition to Agora, and founder Kevin Nielsen will stay on as an advisor. Zhang assured that there are no plans to discontinue Boardroom; instead, both platforms will remain operational as the Agora team collaborates with users to explore potential integrations.
Turbulence at the Ethereum Foundation
Amidst ongoing discussions about Ethereum’s future, Konstantin Lomashuk, founder of the Lido staking protocol, has expressed his intention to establish a “Second Foundation” aimed at advancing Ethereum’s ecosystem. Concurrently, Ethereum co-founder Vitalik Buterin has proposed a significant restructuring of the Ethereum Foundation (EF), the nonprofit responsible for supporting the network’s development.
Buterin’s reorganization plan, shared in a series of posts on X (formerly Twitter), aims to streamline decision-making processes and rectify existing inefficiencies. However, this announcement has drawn criticism from some community members who argue that Buterin’s prominent role in the restructuring might contradict Ethereum’s core ethos of decentralization. The EF itself has faced scrutiny over the past year for its perceived centralizing influence as competition from networks like Solana intensifies.
New Stablecoin USDh Launching on Bitcoin
Exciting developments are on the horizon as USDh, a new stablecoin built on Bitcoin’s layer 2 solution, Stacks, secures approximately $3 million in liquidity. This initiative is spearheaded by the decentralized finance (DeFi) protocol Hermetica, which aims to make USDh the largest stablecoin on the Stacks network through a partnership with Bitcoin lending platform Zest.
The newly acquired liquidity will enable Hermetica to offer competitive yields on USDh, with projections of an impressive annual percentage yield (APY) potentially reaching 50%. Currently, Hermetica provides an average APY of 18%. Stablecoins play a pivotal role in the crypto economy, allowing users to hold assets in a stable token pegged to fiat currencies, typically the U.S. dollar. This advancement is a crucial step for Bitcoin as it evolves toward supporting DeFi capabilities, a trend that has been gaining momentum over the past few years. However, it’s essential to note that the $3 million liquidity for USDh is relatively small compared to the leading stablecoins in the market, such as USDT and USDC, which boast market caps of over $138 billion and $51 billion, respectively.
$25 Million Grant Initiative for DePIN Projects
In a move aimed at fostering innovation, World Mobile, a decentralized wireless network, has announced a $25 million grant program dedicated to supporting Decentralized Physical Infrastructure Network (DePIN) projects. Partnering with Tenity, a leader in early-stage investment and startup acceleration, this initiative will provide access to six international hubs to maximize its impact.
Micky Watkins, CEO of World Mobile Group, stated, “By collaborating with Tenity, we ensure that the World Mobile Chain Grant Program not only funds projects but also provides the necessary guidance and resources to drive scalable, impactful innovation.” The grant program will offer funding starting at $5,000, focusing on key areas like decentralized communications, on-chain governance, and the tokenization of real-world assets. Notably, World Mobile is built as an EVM-compatible Layer 3 solution developed on Base.
In Other News
Layer 2 Protocols Achieve Record Throughput
Layer 2 protocols are hitting new throughput records, with Base leading the charge in efficiency and speed.
Letters of Credit for DeFi
Anvil, an Ethereum-based smart contract project, is making strides toward creating a new form of money, according to its founder, Tyler Spalding.
Regulatory Developments
In a significant move, Trump has signed an executive order focused on digital assets, among other post-inauguration initiatives.
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