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More →Arthur Hayes Plans to Build Derivatives Around AI Compute
Arthur Hayes published a new essay on October 27 outlining futures and perpetual swaps tied to Flop Network’s proposed compute market, where AI agents would pay for computing power using FLOP. The plan aims to establish a reference price for compute that traders could use to build financial contracts around the resources AI systems consume. In a post on X, Hayes called his essay “The Trifecta” and <a href="https://x.com/CryptoHayes/status/2114857087004201325?s=20" rel="nofollow" target="_blank">described</a> it as a blueprint for entrepreneurs seeking to build derivatives for the AI agent economy. His central idea is that a liquid spot market for computing power could <a href="https://cryptohayes.substack.com/p/the-trifecta" rel="nofollow" target="_blank">provide</a> the pricing benchmark needed for futures and perpetual swaps. The proposed Flop Reference Compute Rate (FRCR) would be calculated hourly using a volume-weighted FLOP price per GigaFLOP of computing capacity. Quarterly futures would settle on the last Friday of March, June, September, and December, with contracts using US dollars for margin and profits. Hayes explained that the dollar-based structure would require a quanto derivative, a contract whose payout uses a different currency from its underlying asset. Because the compute market would be priced in FLOP while traders could prefer dollar-denominated returns, pricing the contract would require an adjustment for the relationship between the FRCR and the FLOP-to-dollar exchange rate. The proposed perpetual swap would use an eight-hour time-weighted average of the difference between its trading price and the FRCR to calculate funding payments. As with crypto perpetuals, traders on the expensive side of the contract would pay those on the cheaper side, depending on the premium. Market makers could recreate futures exposure by buying or supplying Flop Compute Units (FCUs), which represent reserved inference capacity for a specified AI model and delivery time. Hayes’s design also requires suppliers to post FLOP bonds, which they risk losing if they fail to deliver the promised computing work. The derivatives proposal depends on Flop Network first establishing a functioning spot market. Hayes argues that existing indexes tracking chip rental prices and individual AI token prices provide incomplete information because both are derivatives of the underlying cost of computation. Under his design, network blocks would record inference tasks, the computing work completed, and the fees paid to miners. Those receipts would help calculate the exchange rate between FLOP and computing capacity, giving buyers and suppliers a common reference. Hayes <a href="https://cryptopotato.com/arthur-hayes-called-ai-a-bubble-now-hes-launching-an-ai-project/" rel="nofollow" target="_blank">introduced</a> Flop Labs in August 2026, describing its proposed native token FLOP as “food for your AI agent.” In an August 27 explanation, the project <a href="ht
Zcash Co-founder Sean Bowe Proposes Ending ZCG Funding Stream, Citing $125M Treasury
Zcash (ZEC) co-founder Sean Bowe proposed on Monday to end the 8% block reward share paid to Zcash Community Grants (ZCG), saying the program already holds over $125 million. Bowe filed the change as a draft Zcash Improvement Proposal (ZIP) that would send that reward share to the Network Sustainability Mechanism (NSM) until the stream’s scheduled end. That mechanism withholds the coins from issuance and starts paying them back out as block rewards in February 2031. Under the draft, ZCG would keep its existing treasury and could still approve grants from it. “The program was never designed to handle this amount of funding,” Bowe wrote on X. It’s time to turn off the ZCG funding stream. ZCG has over $125M in funding, and will receive millions more before the spigot is turned off. The program was never designed to handle this amount of funding. — Sean Bowe (@ebfull) <a href="https://x.com/ebfull/status/2114911107718742451?ref_src=twsrc%5Etfw" rel="nofollow" target="_blank">October 27, 2026</a> Bowe’s figure comes from a dashboard linked on ZCG’s website. It listed 91,453 ZEC and $8.8 million in cash at an October 21 block. Approved grants still unpaid came to $2.4 million. Bowe valued the coins at $1,300 each to reach $125.3 million. The same dashboard counts another 110,049 ZEC due to ZCG before the stream ends on November 24, 2028. According to the draft ZIP, at the dashboard’s price of $1,241.61, those coins are worth $136.6 million, more than the program holds now; and, according to a Financial Privacy Foundation report, ZCG spent $1.53 million in the first quarter of 2026 <span>against that intake</span>. The stream adds 144 ZEC a day, which Bowe put at $68.3 million a year at the same coin price. Bowe’s draft landed alongside other proposals on the Zcash forum. For instance, Maxime Desalle’s proposal would also send ZCG’s remaining treasury to the NSM. Desalle cited a February coinholder vote in which 98.6% opposed Zcash Shielded Assets. ZCG approved another $455,000 for Shielded Assets work in June, he said. Turnout was 7.25% of circulating ZEC, per the Zcash Foundation. In June, ZCG approved $455,000 for a QEDIT test network covering Shielded Assets and other deferred features, its minutes show. Josh Swihart, founder and CEO of Zcash Open Development Lab (ZODL), said: “It’d be a mistake to kill only one part of the dev fund.” He added the 12% Coinholder-Controlled Fund, which accrues about 216 ZEC a day, should end too. Swihart’s company is the one former Electric Coin Company staff <a href="https://cryptopotato.com/zcash-governance-crisis-forces-full-exit-of-electric-coin-company-staff/" rel="nofollow" target="_blank">formed</a> after a governance dispute. Responding to Swihart’s plan, Bowe wrote that he would also personally back a separate proposal to strip ZCG’s existing treasury. Ian Miers, one of Zcash’s founding scientists, objected to the NSM as the destination, stating that the reserve ultimately pays miners and could
Discord is making public chats searchable on Google: How to opt out
Discord conversations on large public servers will soon reach audiences far beyond their communities, raising privacy concerns. Discord is making a policy change that will make conversations from its largest public servers discoverable in search engines, including Google, raising privacy concerns among users whose conversations were previously confined to the platform. The change applies to Discoverable Servers — communities with at least 1,000 members listed in Discord’s public directory that do not require an invitation to join. From Nov. 16, every Discoverable Server will have a web page that may include summaries of public channel discussions. From mid-December, individual messages posted in eligible channels may appear in web search, Discord<a href="https://discord.com/blog/making-content-from-discoverable-servers-easier-to-discover" rel="nofollow noopener" target="_blank">> <span>said</span></a> Tuesday. Messages posted before the rollout will not be included, while usernames and avatars will be excluded from published messages. Example of an individual message being shown online. Source: <a href="https://discord.com/blog/making-content-from-discoverable-servers-easier-to-discover" rel="nofollow noopener" aria-label="Source: Discord" target="_blank">Discord</a> Discord said the shift of online communities from message boards to its servers had made useful answers harder to find. “This has led to valuable information being locked in Discord conversations, inaccessible to the wider internet. We want to fix this,” the company said. The move has <a href="https://www.reddit.com/r/discordapp/comments/1xgxb68/comment/19rr367kxqlk2/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button" rel="nofollow noopener" target="_blank">><span>drawn</span></a> criticism from users concerned about their conversations reaching an audience outside of their intended community, even if the servers are public in the first place. <em><strong>Related: </strong></em><a href="https://cointelegraph.com/news/starknet-introduces-wallet-privacy-feature-for-defi-activity" target="_blank" rel="nofollow"><span><em><strong>Starknet introduces wallet privacy feature for DeFi activity</strong></em></span></a> Others welcomed the change, saying it could make useful answers easier to find. One user in Discord’s announcement thread <a href="https://www.reddit.com/r/discordapp/comments/1xgxb68/official_megathread_discoverable_servers_are/" rel="nofollow noopener" target="_blank">><span>called</span></a> it “very much necessary,” while another said moving communities from forums to Discord had made their discussions harder to find through search. The change could also affect cryptocurrency communities that use Discord for technical discussions, support and project announcements. Cointelegraph found nearly 800 servers tagged “cryptocurrency,” around 1,400 tagged “trading” and more than 700 tagged “finance” in Discord’s public directory. Disc
Trader ps5 builds a short position in the S&P 500 and buys a position on Fed rate forecasts.
According to data from Bijie.com: trader ps5 opened a 300-contract short position on the S&P 500 on HyperLiquid at an average price of $7,720, worth approximately $2.3171 million, with a current unrealized loss of $1,140. At the same time, he spent $7,812 on Polymarket to buy 8,400 contracts predicting that interest rates will remain unchanged in October, with a current unrealized gain of $211. The Federal Reserve will announce its interest rate decision at 2:00 a.m. on October 29 (UTC+8).
RBNZ Governor Breman: Closely monitoring the exchange rate; conditions are favorable for inflation to slow in 2027.
According to CoinWorld news, Reserve Bank of New Zealand Governor Breman stated that the exchange rate is being closely monitored and that conditions are expected to be favorable for inflation to ease in 2027.
The South Korean President's National Security Office convened an emergency meeting to respond to a cyberattack.
According to a report from Bijie.com, the South Korean Presidential Office said that the South Korean President's National Security Office will hold an emergency meeting to discuss responses to cyberattacks involving financial investment companies and cryptocurrency exchanges. Officials will assess the damage caused by cyberattacks targeting the cryptocurrency exchange Bithumb and Mirae Asset Global Investments, and discuss measures to prevent similar incidents from recurring. Bithumb previously reported that its internal systems had been accessed without authorization, resulting in the leakage of employee information. Mirae Asset Global Investments detected unauthorized access attempts to some of its network systems, but no leakage of sensitive information or personal credit information was found.
A whale address bought 4,000 ETH and borrowed 31 million USD in stablecoins.
According to Bijie.com data: 9 hours ago, whale address 0xdea6 bought 4,000 ETH (about $9.4 million) and deposited it into AAVE, then borrowed 6 million USDT and transferred it to Binance to buy ETH again. Currently, this address has 22,504 ETH (about $53.17 million) deposited in AAVE and has borrowed $31 million in stablecoins.
PONS market cap rebounds above $290 million, up over 23% in 24 hours.
CoinWorld data: PONS market cap rebounded above $290 million on October 28, rising more than 23% within 24 hours, with trading volume reaching $17.1 million during the same period. Trader BONK guy stated that if one believes the bottom of Robinhood Chain has appeared, PONS should be heavily positioned at this stage. PONS currently holds an 88% market share on Robinhood Chain Launchpad, having pulled back about 77% from its recent high market cap of approximately $960 million. PONS is the token of Robinhood Chain's native token issuance platform, which supports the creation and issuance of fixed-supply tokens and uses the WETH fees collected to buy back PONS, while the PONS fees collected are directly burned.
US stocks boosted by AI; dollar steady ahead of Fed decision
Stock markets rose on an AI boost, while the dollar held steady ahead of the Federal Reserve's decision, Reuters reported, according to BiJie Network.
Former Shanghai AI Lab large model lead raises hundreds of millions in funding to let AI conduct research and improve models on its own.
According to CoinWorld news, Super Evolution Intelligence, founded by Chen Kai, former head of the Large Model Center at Shanghai AI Lab, recently completed a angel round of financing amounting to hundreds of millions of yuan, led by BlueRun Ventures, with participation from SenseTime Guoxiang Capital, Legend Star, and other institutions. The company only officially began operations at the end of August this year, with the goal of building a foundation model capable of autonomously conducting research and continuously improving its own capabilities. Chen Kai previously led the development of the InternLM series of large models and has experience training trillion-parameter models. He plans to launch the first model adopting the new paradigm before mid-2027.