This Week on Crypto Twitter: Tornado Cash Sanctions Slammed, Vitalik Criticizes MakerDAO Proposal

by Arthur · August 14, 2022

This week in coins. Illustration by Mitchell Preffer for Decrypt.

It should also be noted that Github – the code platform that hosted Tornado Cash’s code – also took action on Monday. Github removed Tornado’s code and suspended Tornado Cash founder Roman Semenov’s account.

Finally, on Friday, the Dutch Crime Agency (FIOD) reported. arrest a “suspected” Tornado Cash developer. The news made waves on Twitter, with the crypto community and privacy advocates rejects the move as a declaration of war against coders.

Elsewhere…

Joel Miyazawa, a governance analyst at crypto intelligence firm Messari, can’t understand why the UniSwap community is so divided over a $74 million proposal to form a UniSwap Foundation separate from the exchange.

Uniswap’s treasury is worth approximately $2 billion 🤯

The Uniswap Foundation proposal calls for $74 million. That’s ~4% of Uniswap’s treasury…

And the Uniswap community is divided. Why?

— Joel Miyazawa (@Ichiro_JJ) 10 August 2022

The Tornado Cash sanctions resulted in USDC issuer Circle freezing all USDC in wallets on the government’s sanctions list. This prompted MakerDAO to reassess its exposure to Circle, the centralized issuer of USDC. MakerDAO’s stablecoin DAI is currently pegged to USDC.

But Ethereum creator Vitalik Buterin quickly weighed in on the proposal, calling it “a risky and terrible idea.”

Errr this seems like a risky and terrible idea. If ETH falls a lot, the value of collateral will go down a lot, but CDPs will not be liquidated, so the whole system will risk becoming a partial reserve.

— vitalik.eth (@VitalikButerin) 11 August 2022

Chinese blockchain journalist Colin Wu elaborated on the story more Friday.

Touched by the tornado sanctions, MakerDAO founder Rune Christensen said he is seriously considering moving away from using USDC as collateral and converting USDC to ETH. Vitalik said that non-ETH collateral should be allowed to exceed 20% of the total. pic.twitter.com/x3ocsCq6KH

— Wu Blockchain (@WuBlockchain) 12 August 2022

Finally, The Ethereum Merge has a definite date now.

Ethereum’s mainnet merge is currently scheduled for around 15/16. September.

The merger is coming 🐼

— sassal.eth 🦇🔊🐼 (@sassal0x) 11 August 2022

Well… More or less.

The terminal’s total difficulty is set to 58750000000000000000000.

This means that the ethereum PoW network now has a (roughly) fixed number of hashes left to mine. predicts that the merge will happen around September 15th, although the exact date depends on the hashrate. pic.twitter.com/9YnloTWSi1

— vitalik.eth (@VitalikButerin) 12 August 2022