This week was sideways again for the crypto markets in general. Bitcoin seems stuck around the $30k mark. Stablecoins are adopting a similar risk profile to money market funds, according to Fitch Ratings. There is a significant shift from USDT to USDC as it is seen as the safest. We have another slight de-pegging event, with staked ETH- stETH as ETH merge delays combined with the fear that Celsius could be insolvent. If customers start withdrawing from Celsius, they will have to sell their stETH. The problem is most of their ETH is illiquid until the merge.
A draft crypto bill was dropped in the US. It's 69 pages long, but the TLDR is:
No taxes on crypto transactions under $200.
People have the right to self-custody their digital assets.
Crypto assets will mostly be seen as commodities, not securities, which potentially limits the SEC's role, as this classification would place these assets under the jurisdiction of the CFTC (Commodity Futures Trading Commission).
Mining taxes will accrue when miners sell, rather than when new assets get mined.
Stablecoins must maintain a 100% reserve.
If this bill passes, it isn't perfect, but is being seen as a positive development for the crypto sector. The biggest win is the potential shift from the oversight by the SEC to the CFTC. The SEC hates crypto! Also, no tax on crypto below $200 is bullish for crypto as a payment method. Let's set what actually passes.
📈Reference Markets over the past week
The OG of cryptos
Institutional bid inflows on Bitcoin are ticking down, including bitcoin ETFs. Bitcoin & SP500 30D correlation drops to Jan levels.
The king of Alts
Ethereum’s Ropsten proof-of-stake ‘test merge’ goes live! The merge is looking promising.
Interoperable Blockchain Chain
The largest Dex on Cosmos- Osmosis has been on halt most of the week after an exploit was found!
Yield Farming on cosmos
Osmosis was exploited this week. Roughly $5M was drained, but the exploiters are in conversation and are most likely to return most of the funds. One exploiter is a validator called Firestake who has been the first to come forward.
Want to know more about buying an NFT through their platform? They’ve released a very simple, step-by-step guide.
Smart-contracts on IBC
The Graph cross chain indexer is coming to Juno! Juno is now down 92% in less than 100 days. Will the Graph light up the juggernauts momentum combined with Terra project builders?
📊Impact Markets over the past week
Ecological State Ledger
Regen Foundation is hosting regular #ReFiForClimateAction Twitter Spaces. Follow along for more info and to join in on a space.
The Layer 1 for Refi Projects
Build your ImpactDAO on ixo the Internet of Impact. “Working with ixo to measure the impact of ecological initiatives in Brazil. Building the bridge between ReFi and the planters in the field.” - Launchpad participant, Ekonavi.
Seigniorage stablecoins collateralised by crypto and natural assets.
The first findings are out on the Celo-Mercy Corps Ventures pilot in Kenya has just been released. It highlights how DeFi on Celo empowers farmers in the African country. Read more about it here.
Toucan Protocol: Base Carbon Tonnes
Toucan was recently featured in Fund Our Future - a collection of projects covering the most impactful sectors of climate tech. Check it out here.
Moving carbon from the sky into the soil.
Their May Monthly recap is now available. Read it here! A month full of staking, podcasting and winning (hackathons).
📉DAO Shares over the past week
ℹ️ Remember that DAO’s with a rebase mechanism should be valued on their treasuries, and market cap increases are a more important metric than token prices, as high yields try to outpace price fluctuations.
Carbon Credits as its treasury
18,131,600 TONNES CO2
In 90 days, 150,000 carbon tonnes were retired via KlimaDAO. In comparison, 150,000 tonnes matches the carbon absorbed yearly by 23.8m trees planted. Join their Discord for regular updates.
The largest DAO built on Ethereum
Go watch their Policy Report from the month of May, where they point out highlights and get set up for the new month of June.
GTC - Platform to find meaningful open-source work
ReFi Summer! GR14 is officially underway! Running from June 8 - 23, be sure to follow along, get involved and share the great projects that are participating!
DeFi Tools DAO
Catch up their Twitter Space where they discussed Deal Talks: PrimeDAO x Celo.
What are the ImpactDAOs and Tokens you want to see included in the Earth State Market tracker? Get in touch and let us know!
Earth State Snippets
A Prime Deal. Dog-fooding its own PrimeDeal protocol, PrimeDAO completed the first L1 <> DAO token swap, in a deal with Celo. This followed the March announcement that PrimeDAO was forming a strategic partnership with Celo Network, to build a ReFi DAO Ecosystem and expand DAO2DAO Coordination.
The DAO that keeps on giving. Gitcoin Grants Round 14 has officially kicked off, with over $3M in total matching funds committed to funding public goods. There are a record-breaking 13 ecosystem rounds and three cause rounds this time. Public Goods are Good.
Fever is spreading with global heating. Singapore is facing a dengue "emergency," grappling with an outbreak of the seasonal disease. It has come unusually early this year and has already exceeded 11,000 cases.
Changes in the global climate mean such outbreaks are likely to become more common and widespread in the coming years.
Tweet of the Week
🌍 For the Earth!
Earth State change is unstoppable, and so is the evolution of the crypto market!
Join the weekly Earth State Twitter Spaceevery Tuesday at 15:00 UTC, where we discuss what's moving in ReFi and the Tokenised Earth Economy. This week, we'll be talking to Adrian Wons, co-founder and CEO of Senken - a marketplace and launchpad for the carbon economy.
This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. For tax advice talk to your accountant. DYOR – Do your own research.