EthHub Weekly #179

Dune Analytics raises $8 million, ETHOnline announced, Polygon acquires Hermez Network, Arbitrum One Portal launched and much more!

Aug 17, 2021

Curated by Anthony Sassano (@sassal0x) and Eric Conner (@econoar)

🔥 50,000 Burns Under the Mempool

At time of writing it’s been around 10 days since EIP-1559 went live and during that time the Ethereum network burned 50,000 ETH (worth around $170 million at current prices). How insane is that? If we annualize that number it nets out to a whopping 1.8 million ETH burned per year and in a proof-of-stake world this would make ETH net deflationary. I know you’re probably sick of hearing about EIP-1559 at this point, but I still think people are underestimating the profound effects this burn mechanism is going to have over the long-term - buckle up!

Just a note: I filled in for Ryan on last week’s Bankless Weekly Rollup which you can watch here.

Have a great week everyone!

- Anthony

News of the Week

⚖️ SEC Hits Crypto Exchange Poloniex with $10 Million Fine

The U.S. Securities and Exchange Commission (SEC) has fined crypto exchange Poloniex $10 million for operating an "unregistered online digital asset exchange." Poloniex has agreed to pay the fine without admitting or denying the SEC's filings.

Founded in 2014, Poloniex was purchased by Circle in 2018 for $400 million. In late 2019, it was spun out of the company, forming a new firm named Polo Digital Assets. According to The Block's sources, Tron founder Justin Sun was leading the consortium that acquired it.

The SEC's action focuses on the timeframe July 2017 to November 2019, until the point of the sale. The SEC claims the exchange sold digital assets that were securities — although the exchange was not registered to do so.

⚖️ Senate Passes Trillion-Dollar Infrastructure Bill with Unamended Crypto Tax Language

On August 10, the Senate passed H.R. 3684, a landmark infrastructure package months in the making that in its final steps became a flashpoint over cryptocurrency regulation in the United States.

The final vote tally was 69-30, with one abstention from Senator Mike Rounds. The bill has been a priority for the Biden administration and saw broad bipartisan support, despite Democrats asking for more and Republicans asking for less spending.

The bill's process, with the Senate version incubating behind closed doors with a bipartisan group, has proved controversial, especially for the crypto community.