We attended Solana Breakpoint 2024 to understand what’s the latest developments on one of the fastest growing chain in Web3.
Asides from TOKEN2049 happening in Singapore, Solana Breakpoint 2024 was also taking place in Singapore with a multitude of workshops, debates, and Solana-based project booths. With the recent release of the Solana Seeker, a Web3 mobile device phone, the developments around the blockchain network definitely seemed to be heating up.
We dive into the top talks and debates at Solana Breakpoint 2024!
Sky on Solana
Rune Christensen, Co-founder of Sky (formerly MakerDAO)
With the recent rebranding of MakerDAO to ‘Sky’, and announcing the protocol’s integration with Solana, the crowd was buzzing both with excitement and questions when Sky CEO, Rune Christensen, took to the stage during Solana Breakpoint 2024.
While the integration would mean that allocating collaterals on Solana’s decentralised finance (DeFi) becomes easier, it will also help bootstrap the inclusion of real-world assets into Solana’s ecosystem.
But selecting the rising blockchain wasn’t a random game of chance. Christensen emphasised that the team’s initial idea was to build a Layer-1 chain for Sky, with the Solana Virtual Machine (SVM) as a key reference. That is why Sky’s mechanics make it ideal to integrate with Solana, to take advantage of the performance and parallel processing architecture of the blockchain.
It also seems that the upcoming integration of Sky into Solana brings with it a number of benefits for the ecosystem as well. According to Christensen, these benefits can be found mainly on its revamped website, Sky.money, which is natively deployed on Solana.
Users can expect a 1:1 conversion of USDS to USDC, and vice versa, on Solana, plus reward programmes that will be natively available on the blockchain. The goal, Christensen state, is to incubate and boost the growth of key projects on the chain, while driving the adoption of its new tokens on the platform.
NFTs Have No Future
- Luca Schnetzler – CEO – Pudgy Penguins
- Frank DeGods – Founder – DeGods
- Tiff Huang – Director Go-To-Market – ME Foundation
Three non-fungible token (NFT) heavyweights took to the stage for the panel, one being the CEO of the popular NFT collection, Pudgy Penguins, and the other being the founder of the DeGods collection.
Huang kicked off the panel by moderating the conversation with an eye-popping claim — NFTs have not lived up to its promise. Initially prophesised to play a critical role in revolutionising music, art, and gaming, it has instead been largely left in the lurch by the crypto community, before directing the limelight to DeGods by asking if he was leaving the NFT space with his latest DEGODS token launch.
While DeGods naysayed such claims, he emphasised that the state of NFTs now was intended to be so, with platforms and infrastructures popping up to support the sales of NFTs through the last bull run. Instead, communities are tighter than before thanks to the finite number of NFT assets in a collection, and the fact that they are trying new things and ways to evolve and engage the community at the same time. While NFT and crypto markets are technically mutually exclusive, one would be hard pressed to find holders that do not dabble in either.
Would it be better to say that the ire towards NFTs are misdirected anger towards mem coins then, since both asset classes often have close ties to one another? DeGods highlighted that this could be a way to introduce liquidity into such projects, since non-fungible assets are often illiquid, much like houses or properties.
That point was echoed by Schnetzler, who recounts that he’s seen his fair share of big-wallet whales lamenting that the floor price of Pudgy Penguins make the asset naturally illiquid, while being too expensive for retail investors too. He then reiterated that having meme coins does not mean neglecting NFTs, since they still play an important role of creating a tribe mentality which is unparalleled with other assets in the industry.
Moreover, Schnetzler pointed out that meme coins still has an inherent unfair token distribution, and NFTs help remedy that issue. Concurrently, it also gives the holder access to both rewards and connectivity with others.
Why then, Huang pointed out, that Pudgy Penguins was seeking to build its own chain? It’s all about meeting customers where they are at, said the CEO of the collection. Ultimately, the brand needs to find customers, and the last few years has been a blur of trailblazing different solutions and brainstorming. Building a chain will help the brand tap into the Ethereum ecosystem too.
Schnetzler concluded by emphasising that the brand has been about creating value after taking over the NFT collection from its infighting saga, where a dispute happened between the original founder and its community, and the ultimate goal was to continue engaging and rewarding the community.
And what will NFTs look like within the next year? Schnetzler is positive that when they do, the infrastructure built will be stronger, and more projects will develop new mechanics.
Bring Back ICOs
- Tushar Jain – Co-Founder and Managing Partner – Multicoin Capital
- Kevin Follonier – Host – WSH Podcast
- Qiao Wang – Customer Support – AllianceDAO
The participants took to the stage to debate the potential resurgence of Initial Coin Offerings (ICOs) and their role in democratising wealth creation. Tushar emphasised that ICOs should provide liquidity and price discovery, allowing everyone to participate in both buying and selling, thereby enabling the market to determine equilibrium. He argued that ICOs can outperform IPOs in terms of wealth generation and accessibility.
Whilst supposedly being on the other side of the debate, Qiao agreed with Tushar’s point, noting that smaller teams tend to be more agile and better at adapting to changes, drawing parallels to the success of Solana.
While both acknowledged that not all ICOs are good, Tushar stressed the importance of proper disclosures to ensure transparency. They also highlighted successful ICOs from 2017, such as 0x, Bancor, Binance Coin (BNB), and Aave, which have built strong products.
Most DePIN Is Overhyped and Capital Inefficient
- Abhay Kumar – CEO – Helium Foundation
- Matt Stephenson – Head of Research – Pantera Capital
- Shayon Sengupta – Investment Partner – Multicoin Capital
The debate in this segment explored the challenges and potential of Decentralised Physical Infrastructure Networks (DePIN). Matt expressed skepticism about DePIN’s design, citing its fragility and inefficiencies since its early developments in 2019. He noted that many DePIN projects face centralization challenges and require more decentralization, potentially through DAOs. However, he pointed out that DePIN’s current issues, including high capital costs and unsolved oracle problems, render them largely impractical.
Abhay disagreed, arguing that DePIN addresses basic human needs like connectivity and offers a real-world infrastructure solution within crypto. He emphasised that while DePIN is in its early stages, significant investments around $60-80 million have been made into connectivity infrastructure, which means it has the potential to evolve into a more capital-efficient solution as it aligns with growing demand.
Noting the ballooning growth of DePIN projects, Abhay highlights that experimentation is crucial for innovation. He likened the process to companies like Grab, which experiment to improve service delivery, while acknowledging that solving DePIN’s challenges will take time. He remains confident that alignment between demand and technological advancement will drive its success.
Matt, while remaining critical, appreciated the energy and experimentation in DePIN, seeing potential in solving real-world problems. However, he maintained that DePIN’s reliance on proving useful work without resolving oracle issues hampers its current utility. Despite this, both participants remained bullish on DePIN’s future.
Check out our top panel picks of TOKEN2049 here
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