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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
But within about six weeks after the Pentagon disclosed the cost estimate to lawmakers last month
CoinWorld news, according to The New York Times: Although Trump has currently suspended the resumption of large-scale military operations, the Pentagon still added about $3.5 billion in spending within roughly six weeks after disclosing cost estimates to lawmakers last month.
Reuters poll: 31 economies raise next year's inflation forecasts
Reuters's October survey of economists showed that inflation expectations for next year were revised higher in 31 of the 50 economies covered, including 15 of the 21 developed economies. In addition, they raised growth forecasts for 23 economies, suggesting that persistent inflation may be accompanied by stronger-than-expected economic activity. Morgan Stanley's global chief economist pointed out that the impact of rising energy prices is continuing to ripple through the global economy and is beginning to be reflected in core inflation indicators. Analysts noted that most central banks around the world have raised interest rates only a few times or kept them unchanged, so if inflation spreads further, there may be further rate hikes in the future, pushing up borrowing costs for households and businesses.
KuCoin will stop trading DIAM/USDT on October 28, 2026.
KuCoin has announced that it will cease trading of DIAM/USDT on October 28, 2026, according to CoinWorld.
Reserve Bank of New Zealand Governor Breman: In the coming weeks, some inflation data will become important references alongside labor data.
According to CoinWorld news, Reserve Bank of New Zealand Governor Breman stated that in the coming weeks, some inflation data will become important references alongside labor data.
Bithumb investigates data breach caused by internal hacking incident
CoinWorld news: South Korean crypto exchange Bithumb is investigating a data breach caused by an internal hacking incident. The exchange discovered that its internal mobile system had been attacked and has notified the Korea Internet & Security Agency and the Personal Information Protection Commission. Bithumb said it is analyzing the specific scope of the breach, including whether user data was involved. The incident is part of a recent wave of cyberattacks on South Korea's financial sector. Lee Chan-jin, governor of the Financial Supervisory Service, said that as of October 14, 16 South Korean financial companies had suffered cyberattacks.
SlowMist confirms Coinbase data breach, over 70,000 users' information stolen
According to a CoinWorld report, SlowMist Chief Information Security Officer 23pds posted that the Coinbase data breach has been confirmed, though it has not yet been confirmed whether passwords or funds were stolen. Initial estimates suggest hackers obtained the contact information of more than 70,000 users.
The Reserve Bank of New Zealand is considering a potential correction in the AI investment market.
According to a CoinWorld report, the Reserve Bank of New Zealand (RBNZ) stated in a release that it is considering a potential market correction related to artificial intelligence investments. The statement reflects the central bank's attention to volatility in the AI investment market.
Coinbase data breach confirmed, over 70,000 users' information accessed by hackers
Coinbase has confirmed a data breach in which hackers obtained the contact information of more than 70,000 users. It has not yet been confirmed whether passwords or funds were stolen.