HashStack #005

Happy New Year 2025! 🎉

Welcome back to HashStack, now in its 5th edition. We’re kicking off the year with exciting updates: Microstrategy’s Bitcoin holdings hit 446,400, Ethereum prepares for the Pectra Upgrade, and spot ETH ETFs lead inflows for 2024. Plus, AI16z unveils bold plans, stablecoins gear up for fee switches, and interoperability gets a boost with Wormhole’s DAO launch.

Microstrategy purchases 2,138 BTC, bringing total holdings to 446,400 BTC

MicroStrategy has added 2,138 BTC to its reserves over the past week, marking its eighth consecutive week of Bitcoin purchases. This brings the company’s total Bitcoin holdings to 446,400 BTC, solidifying its status as the largest corporate holder of the cryptocurrency.

Despite its steadfast Bitcoin acquisition strategy, MicroStrategy’s share price has experienced challenges, falling nearly 10% since joining the Nasdaq 100 and 45% from its 52-week high of $543 in late November. While the company’s stock outperformed broader market indices and other tech firms in 2024, it continues to face greater volatility than Bitcoin itself.

Covenants: Key Developments and What’s Next for 2025

/dev/fd0 posted the summary of the poll of opinions about covenants to the Bitcoin Development Mailing List. Key insights include: 

1. Several approaches to achieving LN symmetry have been identified. Contrary to prior expectations, SIGHASH_APO has garnered little interest from developers.

2. OP_CHECKSIGFROMSTACK has received unanimous support and is a key component of multiple covenant proposals.

3. OP_PAIRCOMMIT, OP_INTERNALKEY, and OP_CHECKCONTRACTVERIFY have yet to undergo thorough review by the developer community. Among these, OP_PAIRCOMMIT appears to be particularly contentious at this stage.

As we look ahead to 2025, it’s likely that covenants will continue to be a focal point of discussions and workshops.

Ethereum finalizes the list of EIPs to be included for the Pectra Upgrade

Following extensive discussions around one of Ethereum's most significant upgrades, researchers have decided to revise the Pectra Upgrade by excluding PeerDAS and EOF. Instead, the upgrade will focus on increasing the blob count per block from 3–6 to 6–9, enhancing rollup efficiency. To address potential networking issues from larger blocks, EIP-7623 has been included. Additionally, during the final AllCoreDevs meeting, EIP-7840 was added to the upgrade. The finalized list of EIPs for the Pectra Upgrade is now available here. While the exact timeline remains uncertain due to the priority placed on network security and performance, researchers are optimistic about moving to a testnet fork after further devnet implementations.

Ethereum ETFs Record Best Month of 2024 with Over $2B in December Net Inflows

After a muted launch in July 2024, demand for spot ETH ETFs has surged, culminating in December as the standout month with over $2 billion in net inflows. BlackRock’s ETHA fund alone contributed more than $1.4 billion, driving the total AUM of spot ETH ETFs to exceed $12 billion. Despite a cautious and hawkish Federal Reserve stance, which saw Ethereum prices drop nearly 10% in the past month, December’s inflows highlight growing institutional interest. This uptick reflects optimism for a more favorable crypto regulatory environment anticipated in 2025.

Hyperliquid launches HYPE staking with Strong Demand

Hyperliquid introduced native token staking, garnering significant traction as over 393 million HYPE tokens were staked on the Hyperliquid mainnet. To further enhance decentralization, the Hyper Foundation announced plans to implement a Delegation Program that will reward high-quality validators. Users can select validators based on key metrics such as uptime, commission rates, and staked amounts. Current validator APR estimates range from 1.92% to 2.35%, with commission fees varying between 0% and 4.9%.

Chainlink Introduces Smart Value Recapture for DeFi Lending Protocols

Chainlink has unveiled Smart Value Recapture (SVR), a solution designed to help DeFi applications recover non-toxic MEV (Maximum Extractable Value) from Chainlink Price Feeds. Developed in collaboration with Flashbots and BGD Labs, the initial deployment of SVR targets DeFi lending protocols, enabling them to capture MEV during liquidations while reducing reliance on third-party vendors.

Currently live on testnet and approaching a mainnet launch, SVR leverages Flashbots MEV-Share and a Dual Aggregator contract architecture to enhance efficiency and provide fallback security. If approved by the Aave DAO, SVR will be implemented on Aave v3 on Ethereum, featuring a revenue-sharing model where Aave retains 65% and Chainlink receives 35%. This innovation offers protocols a pathway to greater economic sustainability.

AI16z Unveils Plans for Refined Tokenomics, Agent Launchpad, and Potential Blockchain Development

Recent discussions within the AI16z ecosystem have focused on enhancing its token value accrual mechanisms and aligning incentives across stakeholders. Following several days of deliberation among partners, the protocol has outlined immediate priorities:

1. Agent Launchpad: Set for Q1 2025, this platform will support Eliza-based agent projects. Fees from agents launched on the platform will be used for token buybacks and to provide liquidity for new initiatives.

2. Staking Mechanism: AI16z tokens may be staked to gate access to the launchpad, serving as both a token sink and a value accrual mechanism for the network.

3. Treasury Diversification: The protocol plans to diversify its treasury across major Layer 1 tokens, stablecoins, and select projects to ensure sufficient liquidity and incentives for sustained adoption.

These measures signal AI16z’s commitment to fostering long-term growth and sustainability while delivering tangible benefits to token holders.

Usual Money to Activate Fee Switch Today

Usual Money, the issuer of the USD0 stablecoin with a circulating supply exceeding $1.74 billion, has announced plans to activate its fee switch on January 7, 2025. This move mirrors Ethena's similar action last November, when Wintermute proposed and Ethena’s Risk Committee approved the activation of its fee switch. Turning on the fee switch could serve as a catalyst for growth, enabling protocols with strong revenue streams to reward users who contribute to organic and sustainable expansion, potentially creating a positive flywheel effect.

Wormhole to Launch DAO in Q1 2025

Wormhole, a leading cross-chain interoperability protocol, has revealed plans to launch its DAO in Q1 2025, powered by its innovative MultiGov cross-chain governance system. This framework will enable DAO members across multiple chains to delegate, propose, and vote on protocol decisions. In parallel, Wormhole’s ongoing staking program spans EVM-compatible chains and Solana, offering early adopters the opportunity to benefit from an initial allocation of at least 50 million W tokens.