Ethereum Validator Exit queue backs up

Table of Contents

Welcome to Protocol, where Coindesk is a weekly summary of the most important stories in cryptocurrency technology development. I’m Margaux Nijkerk from Tech & Protocols Reporter at Coindesk.

In this issue:

Ethereum Validator exit queue exceeds $200 million for the Stakers to run quickly after a 160% rally
Jito launches BAM to rebuild Solana’s block space economy
Ethereum Varittertar shows intention to raise gas limits to 45m
DogeCoin can quickly verify ZK proofs natively thanks to DoGeos Push

Network News

VALIDATOR Exit queue on Ethereum backup: Ethereum’s Validator Exit Queue posted its longest wait time on record. Possible signal stakers are considering withdrawing funds after a large price rallies at Ether (ETH). 09:00 UTC As of Wednesday, 625,000 ETHs worth around $2.3 billion were in line to close the network, data from BelidatorQueue.com shows. This is even greater than the amount you are waiting during the January 2024 spike, extending the withdrawal delay to more than 10 days, data shows. Congestion is due to the dynamics of Ethereum’s proof-of-effect model, which limits the speed at which validators join or leave the network. Validators are entities that bet on tokens that help secure blockchain in return for rewards. Exodus is likely to be profitable by people who now bet on the eat after the price was much lower, collecting 160% from the trough in early April. “When prices go up, people will bet and sell to close the profits,” said Andy Kronk, co-founder of staking service provider figment. “We’ve seen this pattern at the retail and institutional level throughout many cycles,” he said, as large institutions move custodians or change wallet technology. – Christian Sandor read more.

Jito launches Block Assembly Marketplace: Jito Foundation has introduced Block Assembly Marketplace (BAM), a system aimed at improving the way blocks are built and sequencing transactions on the Solana blockchain. BAM is designed to “make transaction sequences transparent and verifiable” while enabling programmable innovation in the block space tier, unlocking new revenue opportunities for developers and reducing the harmful effects of maximum extractable value (MEV). The launch is based on JITO’s established infrastructure, including the widely adopted voter client and the JITO block engine. Bam introduces a modular architecture with three key components: A BAM node is a specialized scheduler that uses secure hardware to personalize transactions. BAM VALIDATERS runs the updated Jito-Solana software client, receives transactions ordered from the node and executes them on-chain. Finally, the plugin provides developers, traders and applications with a programmable interface to interact with the scheduler, allowing customized transaction logic. According to the team, BAM will launch MainNet in the coming weeks with the first set of validators led by major Solana ecosystem participants such as Figment, Helius, Sol Strategies and Triton One. – Margaux nijkerk read more.

Ethereum Validators begin to raise the gas limit: According to the dashboard Gaslimit.pics, as of July 21, 49% of Validators’ Staked ETH support gas limits reaching 45 million units. In Ethereum, gas is a unit that measures the computational work required to perform a transaction or smart contract. Whenever users interact with the blockchain, they must pay a gasoline fee that covers the cost of using Ethereum computing resources. This ensures that users pay proportionately to the complexity of their actions. Each block of Ethereum has a gas limit, which is the maximum amount of gas that can be consumed by all transactions within that block. If the total gas required for a pending transaction exceeds the block limit, some transactions will be deferred to future blocks. With limited space, transactions are more likely to compete for inclusion and those offering higher rates will be included first. Gas limits were last raised in February, when it was set at 36 million people. It was the first time since 2021 that it has increased after more than half of validators on the network supported changes without the need for hard forks. – Margaux nijkerk read more.

Dogecoin’s zk proof?:Dogecoin may have started out as a joke, but this upgrade is not just one. DoGeos, an app layer developed by the Mydoge wallet team, has submitted a formal proposal to DogeCoin Core, which introduces a new opcode that will allow networks to check Zero Knowledge Proof (ZKPS) natively. The developers aim to convert the unused portion of the scripting system into a tool that can start with “GROTH16” (a certain type of proof widely used in ZK systems) and validate encrypted proofs that allow for future upgrades. This allows Dogcoin to support more advanced off-chain applications, such as rollups and smart contracts, while maintaining the speed and simplicity of the main chain. The approach is modular by design, as the proof system is mode selectable and the opcode behavior is strictly opt-in. If the proof is verified, the script proceeds. Otherwise, it will fail. Older nodes are compatible and treat opcodes as NO-OP. Surprising fork, no bloated VM. – Shaurya Malwa read more.

In other news

Polymarket, a cryptocurrency-powered forecast market that has recently achieved a $1 billion valuation, has decided whether to implement its own customized Stablecoin or accept revenue-sharing transactions with circles, based on the amount of USDC held on the platform, according to those familiar with the plan. The motivation for creating Polymarket’s own Stablecoin is simply to own reserves that produce yields that support Circle’s massive USDC dollar page tokens that were used to place bets on popular betting platforms. Polymet’s representative said no decisions were made. – Ian Allison read more.
Sharplink Gaming (SBET), an Ether (ETH) financing company led by Ethereum co-founder Joseph Lubin, has continued its shopping and has now surpassed $1.3 billion in total holdings. The company said in a press release Tuesday that it purchased 79,949 ETH last week, with an average price of $3,238. With the latest acquisition, the company holds 360,807 ETH as of July 20th, worth around $1.33 billion at its current price. The company is still raising $96.6 million in funding by selling shares through capital in the market for more ETH purchases, the company said. – Kim Jiang Sandor read more.

Regulation and policy

President Donald Trump has fulfilled part of his pledge to establish US crypto regulations and signed a law that officially established stylized publisher rules. It marks the first step in which the digital asset industry hopes that more important regulatory regimes will control more important regulatory regimes. In front of a crowd of crypto executives in the East Room of the White House, a jubilant Trump has been littered with large margins to register a 308-122 bipartisan vote in the House on Thursday, and to assist in getting a large margin in the Senate, to help him get a large margin. Industry leaders include Brian Armstrong of Coinbase, Paolo Aldoino of Tether, Jeremy Allerle of Circle, Cameron of Gemini, Tyler Winclevos, Dave Ripley of Kraken, and Sergie Nazarov of Chainlink. – Jesse Hamilton & Nikilesh de read more.
The US Senate is marching to develop rules and regulations for the majority of crypto markets, and has published a draft discussion of the Market Structure Bill that will more clearly define some of the frameworks lawmakers are thinking of. The 35-page draft released Tuesday will develop a new definition of non-security digital assets and direct the Securities and Exchange Commission to engage in creating rules regarding these assets that exempt them and their issuers from existing regulations. The bill would later direct the SEC and Commodity Futures Trading Commission to engage in co-rule development on certain aspects of crypto market activity, such as portfolio margins. – nickel read more.