BTC $62,848.54 -0.82%
ETH $1,877.55 -0.46%
BNB $606.10 -0.66%
XRP $0.9975 -1.07%
SOL $75.05 -1.46%
TRX $0.3323 -0.45%
DOGE $0.0697 -0.64%
ADA $0.1790 -1.60%
BCH $203.71 -0.88%
LINK $8.94 +1.29%
HYPE $55.60 -3.34%
AAVE $85.71 -2.89%
SUI $0.6775 -1.24%
XLM $0.1583 -0.71%
ZEC $490.26 +0.99%
BTC $62,848.54 -0.82%
ETH $1,877.55 -0.46%
BNB $606.10 -0.66%
XRP $0.9975 -1.07%
SOL $75.05 -1.46%
TRX $0.3323 -0.45%
DOGE $0.0697 -0.64%
ADA $0.1790 -1.60%
BCH $203.71 -0.88%
LINK $8.94 +1.29%
HYPE $55.60 -3.34%
AAVE $85.71 -2.89%
SUI $0.6775 -1.24%
XLM $0.1583 -0.71%
ZEC $490.26 +0.99%

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Gray Research Director: ETH and SOL may face supply contraction, and the reduction of inflation mechanisms will strengthen token scarcity

Grayscale Research Director Zach Pandl stated that the two major blockchain networks, Ethereum (ETH) and Solana (SOL), are considering adjusting their token economic models to enhance asset scarcity by reducing future token supply growth through lowering annual inflation rates. As important native assets supporting stablecoins and tokenized asset ecosystems, the prices of ETH and SOL are primarily determined by supply and demand dynamics. If the relevant code upgrade proposals are approved, under unchanged conditions, lower supply growth may provide support for token prices.According to Grayscale's analysis, if the relevant adjustments are implemented, the supply inflation rates of BTC, ETH, and SOL will continue to decline over the next five years. By the end of 2031, the annual inflation rates for Bitcoin and Ethereum are expected to be around 0.4%, and Solana around 1.1%, which is lower than gold's annual supply growth rate of about 1.8% and the U.S. CPI inflation level of about 3.3%. Currently, these token economic adjustments are still in the community discussion phase. Among them, the Solana-related proposal has gained broader support and has a higher likelihood of implementation; the Ethereum proposal still requires further discussion.If the adjustments are implemented, staking users may face reduced token rewards, as part of the staking income comes from the issuance of new tokens. However, due to the decline in the growth rate of circulating supply, the scarcity value of the tokens may increase, potentially providing price support. For ETH and SOL holders who do not participate in staking, they may benefit directly; the final returns for stakers will depend on the balance between the decrease in rewards and the increase in prices. Zach Pandl concluded that ETH and SOL are becoming important digital commodities supporting stablecoins and the tokenization of real assets, and the economic model adjustments aimed at reducing inflation may further strengthen their scarcity attributes.

Ireland releases its first anti-money laundering strategy, which will strengthen the review of transfers to private crypto wallets

According to Decrypt, the Irish government has released its first national anti-money laundering (AML) strategy, which plans to strengthen the review of digital asset transfers involving self-hosted wallets and increase due diligence requirements for crypto companies when cooperating with overseas institutions.According to the announcement from the Irish Department of Finance, this strategy implements the remaining requirements of the EU's Transfer of Funds Regulation, which will require crypto asset service providers (CASP) to perform "enhanced checks" on transfers involving private wallets, while implementing stricter customer due diligence when conducting business with overseas crypto companies.The related measures are based on the Financial Action Task Force (FATF) Travel Rule, which requires the inclusion of sender and receiver information in digital asset transactions to enhance the transparency of fund flows. Ireland stated that the new regulations will be advanced in parallel with the EU's Markets in Crypto-Assets Regulation (MiCA).MiCA establishes a unified regulatory framework for crypto asset service providers, while Ireland previously granted a 12-month transition period for its domestic crypto companies, which is shorter than the maximum 18 months allowed by the EU. The transition period is set to end at the end of December 2025, so the new requirements will directly apply to companies that have obtained formal authorization.

ENS DAO officially established a foundation through a proposal to strengthen the governance of the decentralized domain name ecosystem

ENS DAO has voted to approve the proposal "Next Era of ENS DAO" and completed on-chain execution, officially establishing the ENS Foundation to promote the ENS ecosystem into a new governance phase.According to the proposal, the ENS Foundation will become a fully operational organization, equipped with a full-time executive director, a professional team, and a board of directors consisting of 5 members, responsible for undertaking institutional work related to ENS in areas such as law, policy, standard-setting, and brand protection.ENS stated that over the past nearly ten years, ENS has developed into an important infrastructure within the Ethereum ecosystem, with millions of registered domain names, and has been integrated by numerous wallets, applications, and Layer 2 networks. However, the DAO itself lacks legal entity status, making it unable to effectively participate in the governance of the internet naming system, sign institutional cooperation agreements, hire full-time employees, maintain trademark rights, or engage in regulatory discussions. The establishment of the ENS Foundation aims to fill this gap. In the future, the foundation will be responsible for:Representing ENS in internet standard organizations such as ICANN, IETF, and W3C, promoting the recognition and management of the ".ens" top-level domain (TLD);Participating in policy discussions as a legal entity, communicating with regulatory agencies and government departments;Holding and protecting ENS trademarks and intellectual property, combating phishing and impersonation;Hiring full-time employees responsible for ecosystem operations, funding programs, and fund management;Becoming a formal cooperation entity between traditional institutions such as registrars and standard organizations and the ENS ecosystem.

The Financial Services Agency of Japan and the National Police Agency jointly requested cryptocurrency exchanges to strengthen anti-fraud measures

According to CoinPost, the Financial Services Agency of Japan and the National Police Agency recently jointly sent a letter to the Japan Virtual Currency Exchange Association (JVCEA), requesting exchanges to strengthen anti-fraud measures. This request includes 11 specific requirements, such as the need for withdrawal addresses to be registered in advance, enhanced transaction monitoring, strict verification of identification documents when opening accounts, and setting a withdrawal limit for a certain period after users deposit fiat currency or purchase crypto assets.The background of this action is the increasing prevalence of investment scams and "pig butchering" schemes on social media, where criminals frequently use crypto accounts to transfer illegal funds. The Financial Services Agency also suggested that exchanges flexibly set withdrawal limits based on customers' risk levels and transaction purposes, and that suspicious transactions should immediately result in account restrictions or freezes, while enhancing intelligence cooperation with the police. For system renovations that are difficult to implement in the short term, exchanges are allowed to proceed in phases. In addition, the Financial Services Agency has officially established the "Cryptocurrency and Stablecoin Division," responsible for related regulatory affairs.
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