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first_img Arya.ag, an agricultural loan company in India, is testing tokenized grain warehouse receipts on Avalanche

Arya.ag, an agricultural warehousing and loan company in India, is testing a system for tokenizing warehouse receipts for stored grains on the Avalanche dedicated Layer 1 blockchain. Arya.ag is collaborating with Finternet to connect grain storage, warehouse receipts, collateral commitments, and loan statuses through this network. Devika Mittal, head of Ava Labs India, stated that the testing is underway, with each tokenized warehouse receipt representing ownership of the stored goods.Sanmesh Kalyanpur, a director at Finternet Labs, mentioned that Arya.ag's samplers collect information on stored grains and input it into the company portal. Finternet will integrate farmers, commodities, warehouses, and insurance information into a "composite token" for banks to assess collateral risks. Arya.ag stores approximately $2 billion worth of agricultural products in its warehouse network and supports loans of about 120 billion Indian Rupees (approximately $1.26 billion) annually, with its loan department, Arya Dhan, disbursing around $230 million in loans each year.The concept of Finternet originated from a 2024 paper by the Bank for International Settlements (BIS), co-authored by Infosys co-founder Nandan Nilekani and then-BIS General Manager Agustín Carstens, proposing the establishment of an interconnected unified ledger for tokenized assets. In 2024, the Indian government launched a 10 billion Rupee credit guarantee scheme to encourage financing against electronic transferable warehouse receipts. The two companies have not disclosed the expected launch date or initial deployment scale.

first_img Ethereum developers propose upgrading the staking contract to defend against quantum attacks

According to CoinDesk, Ethereum researchers have proposed rebuilding the validator deposit contract to support a new cryptographic system and ultimately stop accepting deposits protected by the existing BLS signatures. This proposal targets the deposit contract, aiming to add a switch that prevents the network from accepting the currently relied-upon signature format.Currently, the contract only accepts BLS keys because their exact size is hardcoded, while the new draft allows for different key sizes, with each deposit tagged by the cryptographic system used, where BLS receives a tag of zero, reserving space for future schemes.If the proposal is approved, it will initially operate with BLS deposits, while other schemes can be registered simultaneously. Future decisions may permanently disable new BLS deposits, at which point validators who have staked using BLS keys will not disappear, but new validators will not be able to join using this method. Ethereum will ultimately need to change separately to inform validators how to check new signatures. This is part of the migration for validators, while another part is already in progress—EIP-8141 framework transaction proposals will allow regular Ethereum accounts to change the cryptographic method for approving transactions without changing their address.The urgency stems from research released in March by Google's Quantum AI research department, which outlined five quantum attack paths against Ethereum, putting over $100 billion in assets at potential risk. The Ethereum Foundation is advancing core protocol changes with a target around 2029. Currently, the amount of ETH staked in Ethereum is approximately 42.4 million, valued at about $10.4 billion.

The next Ethereum upgrade "Hegotá" has entered the planning stage, with 66 EIPs competing for a spot in the 2027 hard fork

Ethereum developer Toni Wahrstätter posted on the X platform that Ethereum core developers are planning the next annual upgrade "Hegotá," with 66 Ethereum Improvement Proposals (EIPs) currently on the candidate list. Future core developer meetings will screen these proposals to finalize the upgrade content that can be implemented, tested on the development network, deployed on the test network, and has the potential to go live in 2027. Proposals that do not make it into Hegotá will be postponed until the next hard fork, making the current screening process significantly impactful for Ethereum's future development direction.Currently, FOCIL (Fork-Choice Enforced Inclusion Lists) has been identified as one of the important upgrade contents for Hegotá. Developers believe that combining framework transactions (EIP-8141), keying Nonce (EIP-8250), and root references (EIP-8272) will help build native privacy capabilities, allowing privacy applications to operate without relying on third-party intermediaries. Additionally, enhancing scalability is also a crucial direction for Hegotá. Developers propose that it is necessary to prepare for a future increase in the Gas limit to 600 million by repricing data resources (EIP-8131, EIP-8279) and state growth costs (EIP-8368). Although these improvements are not as intuitive as privacy features, they are considered key work to promote Ethereum's scalability in the short term.Other candidate upgrades include shorter block times (EIP-8198), adjustments to the issuance mechanism (EIP-8363), anti-correlation penalty mechanisms (EIP-7716), EVM optimization and simplification, as well as discussions on the first EIPs related to zkEVM and quantum-resistant cryptography. It is reported that Hegotá cannot incorporate all the features the community expects, and the core team needs to make trade-offs between "future vision" and "near-term deliverable upgrades," with most candidate EIPs likely not making it into this upgrade. Currently, it has been 256 days since the launch of the current Glamsterdam upgrade, with the goal of completing deployment by the end of this year. Hegotá is planned to go live in 2027, and in the coming months, core developers and the community will discuss the priorities of various EIPs. Community opinions will still play a role in the screening process, and participants who support or oppose a certain EIP entering Hegotá can present their views to the core development team through public discussions.

first_img SharpLink opposes Ethereum EIP-8363, stating that zero returns will undermine the core reason for institutions to choose ETH

Joseph Chalom, CEO of the Ethereum treasury company SharpLink, posted in opposition to Ethereum Improvement Proposal EIP-8363. According to his disclosure, the current network issues new ETH to validators as staking rewards at a variable yield rate of about 2.75%. If the proposal is passed, it will be implemented in phases over approximately a year and a half, gradually destroying part of the issuance rewards as the staking amount increases. When about 50% of ETH is staked, the staking yield will drop to 0%, and validators will only be able to rely on transaction fees, which currently account for only 15% of staking rewards, to sustain themselves.Chalom presented four points of opposition:Staking yield is the factual benchmark for all on-chain interest rates. The approximately $35 billion TVL of liquid staking tokens is the core collateral for on-chain lending. A yield of zero will raise on-chain capital costs, making actual yields approach or even become negative. Collateral will migrate to assets that still generate yields, and independent stakers and small to medium operators will be the first to be squeezed out.The native yield characteristic is precisely the key reason institutions choose ETH over Bitcoin. Erasing this difference is equivalent to voluntarily giving up its competitive advantage just as ETH is outperforming Bitcoin.Issuance is not a cost to external parties but a transfer of value to security maintainers and builders within the network. Destroying it is a destruction of value rather than a redistribution of this portion of value.The current timing is the worst; Ethereum is in a rising phase of institutional adoption, and destruction incentives will suppress this wave of adoption momentum.He stated that SharpLink agrees with the proposal authors' goal of making ETH scarce and stabilizing the staking rate at a reasonable level, but believes this should be achieved through the existing base fee destruction mechanism rather than altering the economic foundation of the protocol.

The new Ethereum EIP proposal targets the issue of staking inflation to prevent excessive growth in staking

The Ethereum community has submitted a new improvement proposal EIP "Tapered Issuance Burn," aimed at adjusting the ETH issuance mechanism to reduce the centralization and dilution risks brought about by excessively high staking ratios. The proposal points out that the ETH staking ratio exceeded one-third of the total supply in April 2026 and continues to grow.Under the current issuance curve, even if all ETH participates in staking, the staking yield will not be lower than approximately 1.5%, leading to a lack of a "closure mechanism" for staking incentives. This EIP proposes to destroy a portion of the theoretical rewards for validators in each epoch, with the destruction ratio increasing as the staking scale grows: when the staking rate reaches about 50%, the net staking yield will gradually drop to zero. The proposal believes that this mechanism can limit the continuous expansion of ETH supply, reduce the dilution pressure on holders, prevent excessive concentration of staking in custodial institutions and staking service providers, and maintain ETH's attributes as a neutral asset and a store of value.According to the design, under the tapered issuance mechanism, the ETH issuance will peak when the staking rate is around 20%, with an annual issuance rate of about 0.5%, and will drop to zero when the staking rate reaches 50%. Combined with the EIP-1559 and Blob fee destruction mechanisms, ETH supply may more frequently enter a deflationary state in the future. The authors of the proposal state that this plan is not aimed at individual stakers but rather corrects the long-term dilution issues brought about by the current issuance curve, allowing staking yields to ultimately be determined by market risk premiums rather than fixed algorithmic incentives.
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