Kyle Samani - Why SOL Will Flip ETH - TOKEN2049 Singapore 2024

Summary

Kyle Samani from Multicoin Capital discusses Solana's potential to surpass Ethereum in market cap. He highlights Ethereum's slow development and lack of clear direction over its nine-year history, contrasting it with Solana's focused vision of a decentralized NASDAQ. Samani points to Solana's advancements in on-chain trading volumes, direct value accrual to the asset, and stablecoin transfers, as well as its readiness for regulated finance through token extensions. He also emphasizes Solana's alignment with the AI-driven hardware renaissance, suggesting it's poised for future scalability and growth.

Takeaways

• 🚀 Kyle Samani, co-founder of Multicoin Capital, believes Solana (SOL) will surpass Ethereum (ETH) in market cap due to its focus and performance.
• ⏳ Ethereum has been around for 9 years but has been slow to evolve, taking 5 years to commit to a scaling plan and 7 years to transition from proof of work to proof of stake.
• 📈 Solana has a clear vision from its inception to create a decentralized NASDAQ, focusing on fair and open access to market data.
• 💼 The Ethereum community has struggled with defining its purpose, leading to a lack of direction and an evolving scaling roadmap.
• 💡 Solana's approach to scaling is to organically grow with parallel hardware advancements, aligning with the current AI-driven silicon revolution.
• 🌐 Solana's token extensions feature provides advanced functionalities desired by Wall Street and payment companies, a significant advantage over Ethereum's fragmented ecosystem.
• 💰 Solana's validator rewards and on-chain trading volumes are rivaling those of Ethereum, indicating a strong value accrual to the SOL token.
• 🔄 Solana's token extensions are live on mainnet, offering features like interest-bearing tokens and confidential transfers, which are crucial for regulated finance to adopt blockchain.
• 💥 Fire dancer, a new Solana client by Jump Trading, is expected to enhance Solana's performance, making it a faster and more scalable network.
• 📊 Solana's stablecoin transfers, while still behind Ethereum, have significantly caught up, showing a 5 to 10x improvement in relative ratios over the past year.

Q & A

What is the main argument Kyle Samani is making about Solana?

Kyle Samani argues that Solana is poised to surpass Ethereum in market cap due to its focus and execution on creating a decentralized NASDAQ and its ability to scale with hardware advancements.

What are the three major issues Kyle Samani identifies with Ethereum?

The three major issues Kyle Samani identifies with Ethereum are its slow decision-making process, its changing scaling roadmap, and the shift of value accrual to Layer 2 solutions.

How long has Ethereum existed and what does Samani emphasize about this duration?

Ethereum has existed for 9 years, and Samani emphasizes this duration to highlight that despite having ample time, Ethereum has struggled to define its purpose and address its scaling issues.

What is the 'rollup-centric roadmap' Samani refers to and why is it problematic for DeFi?

The 'rollup-centric roadmap' is Ethereum's strategy to scale by moving transactions from Layer 1 to Layer 2 solutions. Samani argues it is problematic for DeFi because it creates fragmentation and bridging issues, which are detrimental to the DeFi ecosystem.

Why did Anatoli Yakovenko create Solana and what was his core insight?

Anatoli Yakovenko created Solana because he experienced the unfairness of not having real-time market data access like larger financial institutions. His core insight was that everyone should have fair and open access to market data.

What is the significance of the May 2022 upgrade for Solana?

The May 2022 upgrade for Solana was significant because it allowed the network to fulfill its vision of being a decentralized NASDAQ, with features like limit orders and cancels working effectively, leading to near-zero fees and a superior user experience.

What does Kyle Samani mean when he says Ethereum has 'surrendered fees'?

Samani means that with Ethereum's transition to a rollup-centric model, transaction fees and MEV (miner extractable value) are now largely going to Layer 2 solutions rather than staying on Layer 1, effectively reducing the value accrual to the Ethereum asset itself.

What are 'token extensions' on Solana and why are they important?

Token extensions on Solana are features like interest-bearing tokens and confidential transfers that cater to the needs of Wall Street and payment companies. They are important because they make Solana more attractive for regulated finance to move on-chain.

What is the significance of the Fire Dancer client for Solana?

Fire Dancer is a new Solana client built by Jump Trading, known for high-frequency trading. Its significance lies in incorporating trading expertise into Solana's codebase, potentially making it the fastest permissionless exchange and enhancing its performance.

How does Solana's focus on scaling with hardware advancements give it an edge over Ethereum?

Solana's design principle focuses on organic scaling with parallel hardware, which means it can take advantage of increases in core counts due to advancements in silicon technology. This is in contrast to Ethereum's EVM, which is a single-threaded processor and has not scaled in this manner.

Outlines

00:00

🚀 Introduction to Ethereum's Challenges and Solana's Potential

Kyle Samman, co-founder of Multicoin Capital, introduces the topic of his talk, which focuses on why he believes Solana (SOL) will surpass Ethereum (ETH) in market cap. He outlines a three-part presentation: a brief history of Ethereum to provide context, an explanation of Solana's potential for success, and an analysis of key on-chain metrics. Samman emphasizes Ethereum's nine-year existence and the community's slow decision-making process, which has led to problems and a lack of clear direction. He also mentions legal disclaimers, clarifying that his views are personal and that the presentation should not be considered investment advice.

05:01

📉 Ethereum's Scaling Issues and DeFi's Dominance

Samman discusses Ethereum's scaling challenges, highlighting the emergence of DeFi as the primary use case for blockchains. He points out that it took five years after Ethereum's launch for DeFi to become significant. He also addresses Ethereum's commitment to a rollup-centric roadmap in 2020, which he believes has created fragmentation and other issues detrimental to DeFi. Samman further explains the transition from proof of work to proof of stake in 2022, noting the slow pace of Ethereum's evolution. He argues that Ethereum has never had a clear vision and has been slow to adapt, leading to a structurally broken asset that doesn't accumulate value as intended.

10:02

🌐 Solana's Clear Vision and Progress

The narrative shifts to Solana, founded by Anatoli Yakovenko, who was motivated by the unfairness of not having real-time market data access for trading bots. Solana's vision from the beginning was to create a decentralized, real-time exchange accessible to anyone. Despite early failures and network issues, Solana has made significant progress, especially after the upgrade in May, which improved transaction processing and reduced fees. Samman contrasts Solana's clear vision and focus with Ethereum's indecisiveness and lack of direction.

15:04

💹 Solana's Metrics and Future Advantages

Samman delves into on-chain metrics, showing Solana's trading volumes rivaling those of Ethereum. He discusses the direct value accrual to the SOL asset, positioning it to compete with ETH. While Solana still lags behind in stablecoin transfers, it has made significant progress. Looking ahead, Samman highlights Solana's unique advantages: token extensions offering features for regulated finance, a new client called Fire Dancer built by Jump Trading for high-performance trading, and the potential for hardware scaling due to advancements in AI芯片. He believes these factors will contribute to Solana's growth and its ability to flip Ethereum in market cap.

20:05

🌟 Conclusion: Solana's Unified Vision and Future Growth

In conclusion, Samman expresses excitement about Solana's future, emphasizing the community's unified vision for a decentralized NASDAQ. He points out the cohesive efforts in building the ecosystem, including asset issuance, token extensions, and performance improvements. Samman anticipates that Solana's focus on scaling and value accrual will lead to it surpassing Ethereum in the coming years,感谢 the audience for their attention.

Keywords

💡Ethereum

Ethereum is an open-source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. It enables the development and deployment of decentralized applications. In the video, Ethereum is discussed in the context of its history, challenges, and comparison with Solana. The speaker highlights Ethereum's slow development and lack of a clear vision, contrasting it with Solana's focused approach.

💡Solana

Solana is a high-performance blockchain platform designed for decentralized apps and cryptocurrencies. It is noted for its high transaction throughput and low fees. The video emphasizes Solana's commitment to becoming a decentralized NASDAQ and its focus on real-time data accessibility and high-speed trading.

💡DeFi

DeFi stands for decentralized finance, a financial system built on blockchain technologies that aims to create an open, permissionless, and transparent alternative to traditional finance. The video discusses DeFi as a significant use case for blockchains, highlighting Ethereum's initial role in its development and Solana's potential to surpass it.

💡Rollup-centric roadmap

A rollup-centric roadmap refers to Ethereum's strategy to scale its network by using layer 2 solutions like rollups. The video critiques this approach, arguing it has led to fragmentation and a loss of value accrual for the Ethereum network itself, as transactions and fees are pushed to layer 2 solutions.

💡Proof of Stake

Proof of Stake (PoS) is a consensus algorithm that selects validators to create new blocks based on the number of tokens they hold and are willing to 'stake' as collateral. The video mentions Ethereum's transition from Proof of Work to Proof of Stake in 2022, which was intended to increase scalability and energy efficiency.

💡Validator

In the context of blockchain, a validator is a node that participates in the consensus process to validate transactions and create new blocks. The video discusses validator rewards as a measure of direct value accrual to the native tokens of blockchain platforms, such as Ethereum and Solana.

💡Stablecoin

A stablecoin is a type of cryptocurrency designed to minimize price volatility by pegging its value to a stable asset, like fiat currencies or commodities. The video uses stablecoin transfers as an on-chain metric to compare the activity levels of Ethereum and Solana.

💡Token Extensions

Token Extensions on Solana refer to a set of features that allow for more complex token functionalities, such as interest-bearing tokens and confidential transfers. The video highlights this as a unique advantage for Solana, enabling it to attract traditional finance and Wall Street companies to its platform.

💡Hardware Scaling

Hardware Scaling refers to the ability of a system to increase its performance by adding more hardware resources, like processing cores. Solana's design principle focuses on leveraging advancements in hardware, particularly parallel processing capabilities, to scale its network effectively. The video suggests that this approach will give Solana a significant edge in performance as hardware technology advances.

💡Fire Dancer

Fire Dancer is a new Solana client developed by Jump Trading, known for high-frequency trading. The video positions Fire Dancer as a significant upgrade to Solana's performance, incorporating the expertise of Jump Trading to create a faster and more efficient blockchain client, aligning with Solana's vision of a decentralized exchange.

Highlights

Kyle Samman, co-founder of Multicoin Capital, discusses why he believes Solana will surpass Ethereum in market cap.

Ethereum's history is examined to provide context for its current state and challenges.

The emergence of DeFi as the primary use case for blockchains is highlighted as a significant milestone for Ethereum.

Ethereum's commitment to a rollup-centric roadmap is critiqued for its negative impact on DeFi.

The transition from proof of work to proof of stake for Ethereum is noted as a long-awaited change.

Ethereum's scaling roadmap is criticized for its frequent changes and uncertainty.

The argument is made that Ethereum has surrendered value accrual to layer 2 solutions.

Solana's history and its focus on creating a decentralized NASDAQ are outlined.

Solana's vision of a global real-time exchange is presented as its guiding principle.

The challenges Solana faced in achieving its vision and the importance of persistence are discussed.

Key metrics are analyzed to show Solana's progress in rivaling Ethereum's on-chain activities.

Solana's direct value accrual to its token is compared to Ethereum's.

The growth of stablecoin transfers on Solana relative to Ethereum is noted.

Solana's token extensions feature is highlighted as a significant advantage for traditional finance integration.

Fire dancer, a new Solana client by Jump Trading, is presented as a key development for high-performance trading.

The potential for Solana to scale with hardware advancements in the AI industry is discussed.

The conclusion emphasizes Solana's cohesive community vision and the network's potential for future growth.

Transcripts

uh my name is Kyle samman I'm a

co-founder and managing partner at

multi-coin Capital today I'm going to

talk about why we think soul is going to

flip e in market cap some of you may

already believe this um some of you may

think that's heretical uh or you think

it's just not going to happen my goal

here is to help you at least reconsider

your priors this presentation is going

to have three parts first I'm going to

talk a little bit about the history of

ethereum because I think that provides

important context for understanding the

state of ethereum today and a lot of its

problems then I'm going to talk about

why salana is positioned to succeed and

then we'll wrap up by looking at some of

the key metrics in which salana is

either already passed or is you know

close to passing ethereum that are

really key onchain metrics that we look

at at

multicoin um before we get started I do

have couple quick legal disclosures

first uh my commentary today uh is are

my own personal views and not those of M

M coin uh and second legal disclosure is

that uh nothing in this presentation

should be investment advice or should be

construed as an offer of multi coins

investment advisory

Services all right so uh let's start off

with the history of

ethereum ethereum is 9 years old main

net launched in July of

2015 um I think that's really important

to emphasize and I'm going to emphasize

it a lot through this presentation they

this thing's been around for N9 years

they've had a lot of time to figure out

how to deal with their problems and even

figure out what they want to be and I'll

touch on these themes so it's been 9

years what's happened in that time I

think there's been kind of three major

things that have happened first is the

emergence of defi as the most important

use case of of asset ledgers and of

blockchains uh obviously there was a lot

that happened prior to 2020 but you know

like defi summer happened and I I'll

kind of call that like the birth of

modern defi um so that took 5 years

after ethereum launch to have that

happen uh second really important thing

that happened was the commitment to the

rollup Centric road map and that

decision was made in October of 2020

just a few months after uh D5 summer uh

I think that's also really important to

note because uh the rollup Centric road

map one of the most obvious shortcomings

of it is that it is just bad for defy

it's created all these fragmentation

issues bridging issues all this other

stuff and you know defi summer happened

and then two months later they're like

roll up road map which is going to be

bad for

defi uh and then I think the third major

transition has been of course the

transition from proof of work to proof

of stake which was in 2022 and that was

7 years after main net launched again I

highlight the S years because they knew

they wanted to make the switch before

mainnet launched in 2015 so they knew

they wanted to do it and it took seven

years to actually do the thing that they

said they wanted to do um this community

has been slow they've never known what

they wanted to do and and that's kind of

the point I'm trying to emphasize here

um next we're at uh am I here we go um I

want to talk briefly about the scaling

road map um quite frankly the road map

has changed more times than we can count

um in the early days of ethereum there

was a whole bunch of talk of sharding

plasma State channels if you really go

back far enough you'll remember hyper

Cube routing bunch of other crazy ideas

uh all of these things obviously haven't

panned out took them five years and they

committed to this rollup Centric road

map thing in October of 2020 uh today

now that road map even seems to be in

question or at least partially in

question if you've been following along

in kind of the public discourse there's

been a lot of talk about hey should we

scale the L1 should we do multiple con

block proposers a lot of these other

things that have been kind of more

salana or near Centric in their

approaches are now being reintroduced to

the ethereum discussion uh we have no

idea what decisions the EF is going to

make on these front it may take him

three more months may take him six may

take him nine more months who knows but

my point to you is that the road map

that was committed to four years ago

today is at least partially in question

and perhaps entirely in question um and

so it's just like okay you've been

around for 9 years you're back to the

drawing board like you know what's going

on last thing I want to say about

ethereum before get into salana is that

eth is not acre value the the transition

to this rooll OB Centric road map has

very explicitly surrendered fees both

transaction fees and me fees that used

to go to the L1 and now they're going to

l2s l3s l4s whatever they are um the

intent of this road Ro rollup Centric

road map was of course to push

transactions from L1 to L2 and they've

done that but in doing so they also just

moved all of the actual value accretion

to e the asset away from the

L1 uh you know the E people will tell

you well oh you can still use eth for da

and that's true but as I'm going to show

in the next few slides da rounds to zero

um there's plenty of Da to go around in

ethereum and elsewhere um and of course

the last thing you'll hear people say

about you know value AC cruel for eth is

that eth is money uh and this is

nonsense um this is a circular statement

it is non-falsifiable therefore like

they're just subjecting you to their

religion you can't reason about this at

all the litmus test for is something

money is go to the coffee shop and ask

them hey how do you price the coffee if

they say e then eat is money if they say

dollars then dollars is money like

that's that's the litmus test for money

there is no other litmus test and so if

we look at the data of this whole L2

thing um here we're looking at the

percentage of transactions that have

moved from L1 to L2 over the last three

4 years uh and it's obviously very clear

basically everything is on L2 at this

point 90% plus is on L2 this is by

Design which is great they they

accomplish their objective but to what

end they talk about this da value acral

here we're looking at you know you talk

about da value ACU well in fact the l2s

are the ones making all the money um the

blue this is the revenue and expenses

for base which is the largest L2 by most

major metrics uh and you can see here

very clearly uh Bas is making a lot of

money this is like on the order of a

million dollars a week plus or minus and

uh their expenses are effectively zero

and an expenses here is eth paid for da

to the L1 um as of March that went to

zero and you know it's probably going to

stay at zero um the other thing I really

want to highlight here is that this

whole talk of alignment people have been

saying oh l2s are aligned with l1s but

actually this chart really emphasizes

the fact that they are actually um

anti-aligned base uh is owned by

coinbase and the point of base is to

produce profits for coin bases

shareholders and so they want to

maximize revenues and minimize expenses

and so in fact the incentives are base

are the exact opposites of the

incentives of eel1 because Bas wants to

minimize the cost it

pays um if we look at some of the other

major l2s like optimism you see the

chart looks more or less the same uh I

don't want to highlight just bace you

optimism looks more or less the same and

arbitrum again more or less is the same

uh so you can see this pattern

consistently across all of the l2s

uh I'm going to say the Qui part out

loud ethereum has never really known

what it wants to be uh it it launched as

you know a world computer n years ago uh

and that was never defined still isn't

defined and to be clear I don't think

they have to Define World computer like

whatever it's fine it's a marketing term

but it's been n years so like tell us

what this thing is useful for um

obviously there's been you know defi

there's been nfts there's been web 3

there's been decentralized identity

storage whisper whatever all these

things that you know it could have

evolved into um but right now it's kind

of a mish mash of all of the above and

is quite frankly therefore nothing

because nothing actually stands out um

even as of as recently as a few weeks

ago vitalic and others from the EF were

publicly basically saying def5 is just

circular nonsense like do other stuff

with ethereum and like great I would

love it for ethereum to do more too but

like hey it's been n years like you know

provide some guidance like where do you

think we should go have some opinions

and it's just like the the the lack of

urgency of wanting to figure out what

it's useful for and pushing the

ecosystem that direction has created a

tremendous amount of really bad inertia

in the system as a whole defi is the

most important thing that happens on

blockchains today you see this on

ethereum you see it on salana you see it

on Aptos you see it everywhere you look

and ethereum people are telling you eh

defi whatever okay well if you're not

going to optimize for defi that's fine

then tell us what you're going to

optimize for and they fail to do that

because they don't know so that's recap

ethereum thing is N9 years old it took 5

years to commit to a scaling plan and

then it took seven years to commit to to

actually do the proof of work to proof

of stake transition this thing has never

really known what it wants to be scaling

plan continues to change there's no

Northstar they don't know what they're

optimizing for and because of this

rollup road map they've effectively

taken all of the value ACC cre out of

out of the E the asset and sent it off

to the l2s like base and others

meanwhile e still trades at like 300

billion this is one of the largest

assets in the world probably number 40

asset roughly by market cap in the world

and this thing doesn't know what it

wants to be this asset is just

structurally

broken all right now we're going to turn

to

salana um it's important we started with

the history of ethereum so now we're

going to get into the history of salana

whereas ethereum has never really known

what it wants to be salana has always

been very focused Anatoli founded salana

in started thinking about salana in 2017

cuz he was riding trading Bots um using

a service in the US called interactive

brokers Brokers is like Robin Hood kind

of a thing but a little more advanced

you can do some more powerful trades he

was writing trading Bots and he realized

that he could not get realtime Market

data of what was trading on the New York

Stock Exchange or on the NASDAQ um to

ride his trading Bots and obviously it's

well known that you know vertu jump

Citadel Jan Street all these guys have

access to real-time data from the major

stock exchanges and he found that to be

fundamentally unfair and unjust he's

like wait a minute it's if Market I

should be able to trade just like them

and he has you know physically unable to

even get the information to be able to

trade and and so this was the core

Insight that led to the development of

Solana that anyone in the world should

be able to uh have fair and open and

permissionless access to Market data 24

hours a day s days a week the system of

course then needs to be optimized to

propagate this information to anyone who

has computer and internet who can

obviously receive that market data in

real time um this of course kind of

turned into the vision that we've now

been talking about for for 6 years which

is uh building this decentralized NASDAQ

kind of a concept and this has been the

north star that has guided salana from

day one to build this Global realtime

exchange that anyone can

access it's been a lot more difficult to

build this exchange than any of us

thought it was going to take Anatoli

myself and many others included um they

started working on it in 2018 and

launched 1.0 in

2020 uh and uh you know if has had a lot

of public failures Network's gone down I

don't know 10 times since Inception

there's been congestion issues all kinds

of weird stuff has happened uh but the

reason I highlight all of this is that I

want to emphasize even once you pick a

North star a vision and you say okay

we're going to go commit to this Vision

it then takes a lot of time to actually

get there I I think salana really only

since like May of this year has been

able to kind of credibly say it fulfills

the vision that it's set out for cuz

only after the8 upgrade in May that

salana actually the limit orders and

cancels worked on chain transactions go

through meme coins were firing or mining

I mean everything was working Oracle

updates were working and the fees were

effectively zero and you know it's like

right and it took years of battle

testing the system to get there um and

of course the beauty of this model is

that they committed to this really

difficult and ambitious vision and it

took a lot of time to get there and they

failed a lot on the way and uh but the

beauty of that now is that the user

experience is amazing no bridging no

liquidity fragmentation none of that

stuff um and you also get to a crew

value to so the asset so today depending

on the day you look at it's earning

between 500 million and a billion of

Revenue annualized um and that's all

coming from

MV uh and so this is really the beauty

of of salana is that it took you know we

had this focus and we executed on it for

six years and this is really why we

believe Sol is going to flip Ethan

market cap um now next few slides I'm

going to dig into some of the metrics um

on CH metrics that we think are really

the critical ones we look at uh to kind

of Judge hey is the thesis playing out

here uh first of course blockchains are

Financial systems I've been talking

about trading for the last few minutes

um and and onchain trading is in RV the

most important metric for a blockchain

uh over the last year we've seen Salon

dexes basically come to rival ethereum

dexes some weeks I believe every data

point here is weekly so some weeks we're

seeing salana is higher than ethereum

other weeks it's less than ethereum but

it's today effectively on par with

ethereum in terms of daily trading

volumes on chain um we think this is the

most important thing to look at because

that's the whole point of NASDAQ is to

trade next I want to look at actual

Direct Value acral to so the asset

versus Direct Value acral to East the

asset um and as of today's salana again

is effectively caught up to or is

rivaling eth on this metric this is the

looking at the total validator tips paid

to e stakers and soul stakers in these

respective systems um some weeks along

is high or some eth sire but again these

these metrics are more or less neck and

neck right

now uh and then the third metric I want

to look at is stable coin transfers um

here salana is still well behind

ethereum but I want to look at the

relative ratios here um about a year ago

salana was at roughly 110th or 12th of

daily onchain stable coin transfers to

relative to ethereum today it's roughly

half so it's caught up by a ratio of

roughly 5 to 10x depending on exactly

how you want to measure it um and again

we think this is key to show that hey

money is moving around on

chain um and of course if you then look

at the last three charts and look at the

shape of those um it's actually no

surprise to see the shape of the so e

chart looks more or less the same and so

if you believe that the metrics on the

prior three charts are going to continue

in the same direction then it's pretty

reasonable to conclude that the ratio of

this chart is also going to continue in

the same

direction all right now I want to talk a

little bit about the future for salana

and why we think it has a couple of

really three unique advantages that we

think are going to be basically

impossible for the ethereum community to

recreate and why we're even more excited

about this thing going forward the first

is token

extensions um token extensions went live

earlier this year on mainnet uh token

extensions provide a lot of features

that Wall Street companies want or that

uh payments companies want or any major

asset issue around the world those

include features like interest bearing

tokens so like if you want to have

stable coins on chain uh that earn

yields uh if you want to be be able to

have confidential transfers so you can

hide sender and receiver if you want to

do uh ability to issue and revoke assets

and a whole bunch of other uh features

that that in this kind of bucket of of

ideas um and all of these features were

developed based on Direct input from

payments companies and Wall Streets over

the last few years uh and all of this is

live on mainnet today it's 100% free

100% open all the documentation is is

open and available uh and I highlight

this because uh I think that you know we

have meme coins we have defi assets we

have dpin assets we have all of these

things that are Crypton native obviously

us and most of you all probably are

following a lot of that stuff but then

there's this whole other world of

Finance which is regulated finance and

regulated Finance is only ever going to

come on chain at scale if they have all

of these collect features um and all of

this stuff is just built into salana L1

natively and it's ready to go uh we

think this is super important and we

think it's going to be basically

impossible to recreate this in the

ethereum ecosystem because the evm

itself is fragmented what do I mean by

that well there's a lot of different

flavors of the evm out there there's the

different optimistic flavors there's

different ZK flavors there's the polygon

side chain flavors there's the JP Morgan

internal blockchain flavor and all of

these versions of the evm are not the

same they're like 98% the same but

they're not 100% the same and so if

you're going to try and create a common

set of Standards to have interest

bearing stable coins to have

confidentiality work through Bridges

across these systems it's going to be

really really hard to make all of those

pieces talk and connect to each other

again it is possible that there's no

physics limitation or software

limitation it's it's a people problem

you have to get all of these different

groups of people to sit down and agree

and that's going to be very very

difficult to do um the first major token

using token extensions is live now it's

called PUSD it's PayPal stable coin it

went live a few months ago uh on mainnet

uh and so we we're really looking

forward to seeing token extensions roll

out it's been a little slow you probably

heard about it and kind of forgot about

it but I would say keep your eyes on

token extensions I think in 3 or four

years time it's going to be like one of

the defining things that makes salana

really stand

out next I want to talk about fire

dancer um fire dancer is a new salon

client I expect it to go live in the

next few days or next few weeks uh I

think they're announcing the dates

tomorrow at that breakpoint for those of

you who are unfamiliar fired aner is a

new uh Salon client being built by jump

trading jump trading is one of the

largest hft firms in the world uh and of

hft firms jump is actually known for

being the fastest um and we think this

is really important because the jump

team is taking all of their accumulated

knowledge and wisdom from building high

performance trading systems uh and

they're building all of that into the

salonic code base um this system again

from day one the vision was

decentralized NASDAQ and we're now

taking one of the preeminent trading

firms and applying all of that wisdom to

making the world's fastest

permissionless exchange um this thing is

going to scale SC it's going to be fast

and it's going to allow everything that

we like about salana the composability

the no the no bridging all these things

will just magically work even better

under fire

dancer um and of course the last thing I

want to talk about then this kind of

built on fire dancer is scaling with

Hardware one of the foundational design

principles of salana is the focus on

scaling organically with parallel

Hardware an has been talking about this

since day one I've been talking about

this for years um and the idea is very

simple is if you double or triple the

number of cores in the system you would

hope that the performance would double

or triple of the system very

straightforward idea um this is

obviously a generically a good idea

because of Moors law over the last 50

years um as core counts have grown

especially over the last 10 or 15 years

um systems that can take advantage of

that have have gotten better in terms of

performance uh but this is actually

particularly important today because of

the Renaissance happening in AI um

there's now more Capital going into the

entire silicon uh value chain from

design through manufacturing uh and

that's growing at the highest rate in

both percent terms and absolute terms in

the last 30 years uh and this is all

because of this AI Renaissance and all

of these AI chips that are being built

by all of these different startups

Nvidia AMD everyone all of these chips

are massively massively parallel chips

uh not all of them will work for salana

but it doesn't matter you only need a

couple of them to be to be applicable

and those are going to be help Drive the

performance of salana even further

what's so amazing about this a

Renaissance is it has absolutely nothing

to do with crypto no one in the salon

ecosystem has to know or care about any

of the stuff going on in AI land and you

just have like an incremental 30 4050

billion dollar of R&D happening across

all these various companies and all of

that labor and energy is going to

produce a better Salon Network and like

those are the kinds of really

foundational bets that you have to make

at the core of the design of the system

in order to win what is going to be one

of the largest markets in the world

which we think is decentralized NASDAQ

the EV m is a single threaded processor

they've been talking about paralyzing it

for 9 years done absolutely nothing um

and like we think this kind of full

embrace the parallelism is going to

again really become more evident over

the coming years as we scale the assets

on

chain uh to wrap things up we really

could not be more excited about the

future of salana the community has

coalesced around a common Vision uh and

that is and everyone's rowing in the

same direction everyone's working

towards this decentralized NASDAQ we

have the teams building we have the

asset issue we have the token extensions

we have the new uh performing clients

all of this m works together cohesively

to produce a network that scales and to

produce an asset that can acue value as

it scales we're really looking forward

to seeing Soul flip e in the coming

years ahead thank you