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Pryzm Alpha Hour
Recorded: June 11, 2025 Duration: 1:01:39Space Recording
Short Summary
Exciting developments are underway for Prism as the team gears up for a token launch, with significant growth indicators and strategic partnerships enhancing the platform's ecosystem. Users are already experiencing impressive returns, and upcoming initiatives like OpDrop promise to further engage the community.
Full Transcription
Thank you. Thank you. Hi, Ollie. can you hear me?
I can, I can.
How are you doing, Melina?
Okay, good.
I just, how are you guys?
I wasn't sure if we had started or not.
I was like, I don't hear anything.
I gotta get in there.
All right, trying to figure out how to use Twitter again.
What, I was trying to invite you to co-host as well.
I don't know if you see the invite.
Is that coming up, Melina?
I'm not seeing it, but let me see if I can request
to be a co-host it worked last week
but you know yes nice nice to have the backup
let's see here i'm gonna try to do that but uh i guess maybe i think we see uh
backbone too backbone labs is up here too i see as listeners. I'm not sure if people are up on stage
I see his GM GM GM while I try to maneuver
Can you hear me all right, Damon
What's that? Can you hear me? Okay? Oh
Yeah, can you agree a little bit of an echo, but yeah, it's fine. Okay, nice
All right, cool.
We can probably get started.
If anyone else has, if anyone,
as always, obviously we'll be going through
some of the questions that people left in response
on Twitter and Telegram and Discord,
but if anyone has any other questions or any stuff they would like covered,
please drop it in the comments section.
We are just having the backbone.
Yeah, so we are, yeah, i guess like obviously midas bitcoin launched so that's been great i think we now uh thanks to um one of our uh
top users we now have uh at least a whole bitcoin uh in the mid minus bitcoin so that's been great like that is uh that's enabled for
double photons as well um so anyone providing liquidity is earning 200 photons per dollar
rather than 100 for the other pools um so i mean that has been good we are still working on some
of the feedback that some of the people have given us for launch but i think i genuinely think we're really really close on that so i'm hoping hoping we can get
the token launch done as soon as possible like in a matter of you know starting it ideally within a
week or something like that um we would love to get people's feedback though obviously you know
the whole point of the token launch is to get prism tokens distributed to create a liquid market for people to kind of be able to
trade prism atomically um and for that we're going to need people new people to hold prism and people
who provide liquidity um on the prism ufdc So, you know, people's feedback on the launch
and anything they'd like to see
and anything they think that might be helpful
for future Prism holders is really appreciated.
So I know that most people on this call
have probably been playing around being users of Prism
and obviously, you know,
Prism token holders might come from anywhere.
It might not necessarily be users.
So getting them on board and getting people to understand how providing
liquidity works and stuff like that on Prism,
I think is going to be really helpful.
So doing that and then our order book that we created,
this sealed.deals is nearly is nearly launched this is kind of going to be a order
but you can use to trade any asset for any other asset any asset that is currently on IBC Eureka
you are going to be able to trade so whether that's Bitcoin, ETH, AtOM, whatever, just leave your limit order at exactly the price that you want to trade at.
And the incentive structure means that as soon as there's a profitable trade for someone to kind
of fill your order, they will try and do it. And so there's going to be good profits also to be
made on the other side for people that want to be, you know, order fillers or price takers as it is.
So, yeah, so check that out, like trying to make it really simple
and easy UX for people.
And they can get a flavor of it now at sealed.deals,
but we will be pushing a lot more changes to that
and hopefully launching that and then the token for that fairly soon.
And then other than that, you know, we carry on working on other products, getting new assets on board.
And then obviously the, you know, excited for Backbone Labs campaign, the sole campaign with the SC scar tokens to launch soon as well um so yeah that is
that's probably like the main updates of stuff at the moment uh i'm just thinking did anyone someone
post a question or congrats on the bitcoin that's that's awesome it's cool like yeah cool to see
because that obviously is um you know i don't think a lot of
people have looked at my just bitcoin before we launched uh before we launched it and i did like
i think it's i think when you can start getting bitcoin with a yield uh that's reasonable you
know that's higher than you're getting on for lending it out in Aave or whatever.
I think it becomes super interesting.
And Midas, you can just deposit wrapped Bitcoin,
mint Midas Bitcoin,
and you're then just holding a Bitcoin token
that's sort of auto-compounding and giving you a yield.
So I'm really excited about these kind of things
and excited to see what the community thinks of it.
I don't know if people have tried the process and tried the UX of going over to Midas and minting some Midas Bitcoin and sending it over.
But yeah, we'd love to hear people's thoughts and feedback on that.
But yeah, like Midas Bitcoin and USDY seem, you know, definitely a lot more liquidity now, which is great.
Yeah, I did try it.
It's pretty seamless using Kepler.
The only thing is, you know, you get shocked
by the Ethereum gas.
Yeah, it is.
It is.
ETH gas does ruin the fun sometimes.
I guess that's why ETH becomes more of a whale game chain.
But ETH is about to hit 2,900. So that is exciting.
It's not exciting when you bought it at 45 though.
I hope I'm not the only one.
i was uh i was trying to trade in uh in the btc there before the
all the liquidity that was really tough it's uh it's pretty wild when you bring a whole new
chain on like that instead of bootstrapping how do you mean in terms of in terms of bringing on
a whole new asset or yeah well there well there's like, you know,
the P asset ARBs that you can do,
but you're doing it like with 10 cents
and it's moving the whole, you know, chain
cause there's no liquidity.
So it moves and swings.
Yeah.
Exactly. So now there's gonna be,
people are gonna be able to do a lot more trading
now that there's a decent amount more liquidity.
And it's good. You know, that's good for pulse trades because people can start like locking in their prices.
I think what I think what's going to be interesting as well is it's easy for people to run arbitrage bots for for things like if Atom's trading at the wrong price on Prism
or trading at a different price on Prism versus Osmosis.
I think on Midas Bitcoin, if MBTC starts trading, say, above its fair value,
so say lots of people buy MBTC on Prism,
then that's going to require like a little bit more of
a sophisticated ARP where people will go and buy, you know, mint some MBTC on Ethereum,
send it over and then sell it on Prism and that kind of stuff.
So I'd say like, it's definitely one to just make sure you're looking at like, you know,
absolutely how much Bitcoin you have rather than the dollar prices, because dollar prices until the arbitrage is step in can be a little bit wackier.
And obviously with ETH gas, sometimes people might not end up doing the dollar versus minus Bitcoin arbitrage.
dollar versus minus bitcoin arbitrage so i think at one point it got to like
one minus bitcoin was worth like 300k because no one was doing the arbitrage on prism
um when obviously like the fair value of it's like 110k so i think when once someone stepped
in they were able to do a bit of an arbitrage and make some good profits there obviously it
doesn't for people that have hold minus bitcoin onism, it doesn't make any difference for them. It's just the people that, it's just like the liquidity providers,
which is us on the versus USDC pool. That just means the liquidity providers are selling things
at the wrong price. But so there's good profits for arbitrage to make there.
on price. But so there's good profits for arbitrage to make there.
Yeah, I was picking up WBTC yesterday for 30,000. And then when
Midas went up over 300, as you said, I tried to tried to buy but
the slippage was so high is before, you know, before liquidity.
So it's it's it's tough for the arbitrage is when when it's low
liquidity, it should be more fun now.
Yeah, exactly.
And I think also the base pool, which has some wrapped Bitcoin in it,
which you can easily buy on osmosis,
and then paired that with the Midas Yield LP token.
Once that gets a bit more liquidity as well,
then it's going to be easier for people to buy minus bitcoin if they don't want to um go over to ethereum and and do it
but i mean i i just i am i guess what i'm excited about is uh seeing how people find it getting
feedback from people on if if this kind of thing is like the kind of assets that they want to get listed and they like being listed.
And then from there,
we can start looking at like other assets.
We'd end up, you know,
people will then want added basically.
So yeah, I want to tell you something.
I just want to do a shout out to my buddy, Reed.
He is, he comes from a sex and
he's my neighbor and he came over for one day and i explained prism to him and he just went nuts with
it and he's moved all this money over and he's making all these super deals and he really
understands it and uh it's just it's it's fantastic he loves it i am I'm impressed if he's understood it in a day.
You want to come over and teach it to me too, Hiss?
Your neighbor's a genius.
No, I'm just kidding.
Yeah, exactly.
What's he doing?
Is he on YouTube sharing his knowledge?
What is he doing with all this knowledge now?
Now he's making money. I mean, he bought, he bought, um,
Prism, uh, or C Prism on flow trade, uh, for 0.1 cent. He's,
he's over the moon.
That flow trade has been, we need to do the stats on how much, uh,
how much Prism has already changed hands in Flowtrade
because some people have got some,
I don't know, some of the videos,
some of the videos and screenshots people have shared
some of the prices they've got on Flowtrade
from people that were cheating out.
It's like absolutely insane.
Yeah, the craziest one I saw was 10,000 for 17 cents,
10,000 Prism for 17 cents.
And was that the LP token or was that the,
yeah, it was 25, 25, sorry.
Yeah. It was 2,500 or 2,000 of the LP. Yeah.
Yeah. And the LP, the LP is worth five prism. That's mad.
That is mad. Yeah. There's been, there's been some, I don't know, I always,
I empathize with everyone, but I always find it funny when people are sort of,
you know, complaining about airdrops or not getting it, not, you know, not getting the
exact airdrop and stuff like that. And there's been like, stuff like this, where there's like
money sitting on the table on lots of different trades
or like lots of different arbitrages that is the whole reason we made prism in the first place
and people would have made the people that most of the people that have been moaning about um
tokens and airdrops would have literally made way more money than they were hoping to through
and had you know any kind of airdrop or something like that if just by doing some of these
arbitrages and stuff like that, like, I don't know,
some of the stories obviously from some of the community
about people making, I think some people have made
like five, high five, six figures on just trading
around on prison with a very low starting capital,
which is, yeah, which is that's been that yeah which is which is good i've 5x my adam uh so far and uh my osmo
and uh not my luna uh but yeah basically i've 5x almost every token not including the USDC tokens. That's mad. That is mad.
Yeah.
One of the other things I wanted to talk about is,
there's a strategy I was using this time
with the new YT and PT tokens that came out there.
And I almost three X'd my photons
by moving from the last month into the front month month of the yts i don't know if
that makes sense but it's a really cool strat and uh i'm making my my tokens faster being in a front
month uh and i just cranked up my photons doing it if that makes sense what what did you do
i took the last month i had i had tons do? I took the last month.
I had tons of YT in the last month
and I moved it into September.
Of which token?
All of them except Injective.
I think Injective has a lot of good traders
because I can never get a good deal on Injective.
Oh, so this is on, yeah, yeah, I know what you mean.
So this is, sorry, on the recent you mean so this is sorry on the recent
bootstrapping of the adding of the new maturities yeah yeah i saw i saw you did a good post on that
as well i think that's that's always a yeah it's it definitely felt like it was more efficient to me
the um the bootstrapping this time but there was still seemed like there were really good opportunities i mean like i guess in previous you know i guess you know for for the benefit of people on the call
who aren't as familiar with it like when um a new maturity is added what what prisms amm does is it
gradually um decreases the price of the yield token and increases the price of the
principal token until like a clearing level is found where the market decides that this is the
price of the new yield token and principal token so it's effectively it's a little bit like an And that process ends up putting that new token into the liquidity pool.
And so, you know, a yield token is, you know, one atom yield token gives you the right to
all of the yield of atom until the maturity.
So it doesn't give you the underlying atom itself that's staked, but it gives you all
of the yield of a staked atom uh until maturity and i think one of the you know one of the fun trades is like
um you know you're able to like exactly like you're talking about them and where like
you're able to set swap three months of yield for six months of yield for no cost it's like
it's like i forget what the analogy we were doing before is,
but it's like someone saying, hey, would you like to pay, you know,
$20 for three months Netflix subscription,
or would you like to pay $20 for six months Netflix subscription?
You're like, well, obviously I'll pay the same price for the longer duration.
And that's kind of like the trade that people were doing was swapping their
three months for six months and not having to pay anything for it but but previously in like
other bootstrappings you were able to uh you were literally able to get paid to uh to do it so you
were able to like swap one y atom token token with three months left, you know,
three months that were left of yield
for three YATOM tokens with six months of yield.
So it was kind of like, it was super inefficient
or like the market was super inefficient previously,
but it's got a little bit more inefficient now,
efficient now, but yeah, still some of those trades.
But the one thing I was trying to say
is that I'm doing it backwards to that and still making money.
So instead of me going from three months to six months, I'm going from a year and a half to three months and with the same ROI.
So I'm making the same amount of money, but instead of it taking a year and a half to come to me, it comes in three months.
And, of course, my photons goes through the roof because I'm doing a front month.
Oh, well, decent.
We will have to do a tweet or something on that or post something in Telegram.
That sounds amazing.
That sounds amazing.
Whilst we got it, we did have a question, actually,
other than the guy who told us to follow whoever the person it was
for Amazing Trades, which you now get on every post you put out.
It's so bad, isn't it?
Herb Hill, the question is,
are there any updates to the OpDrop rollout plans?
Yes, there are.
Once we have a finite date for launch, OpDrop, we will update the timings on OpDrop. on opdrop so opdrop will opdrop will start um from launch date and then go on for say two months uh
or three months after that and say if the prism token hits this price between launch date and
two months or three months from launch date then uh people will be people with opdrop will be able
to buy prism token at half price.
So I think we're going to update that.
I think we want to, you know, OpDrop, I think, as I mentioned before,
is our answer to normally market makers on centralized exchanges are given these free options on protocol tokens.
And what we're doing with OpDrop is kind of turning it on its head and saying, actually,
well, let's give options to the community rather than giving it to market makers.
So if, you know, if the PRISM token does well, then everyone gets to, you know, the benefit
of being able to get some discounted PRISM.
And the priority to buy that discounted prism is based on how many
badges you have so the first people to buy will be the ones that have kind of the most badges
and then after they've bought everything that they want to buy then it will be the next people
uh with with slightly fewer badges and it goes like that um so that's that hopefully that answers
that question um which reminds me are you going you going to be giving out the badge for referrers?
Remind me.
There's a badge that hasn't been given to anybody yet for people who did referrals.
Top referrers, yes.
We should do that.
We just need to index the information to work out who the top referrers, yes. We should do that. We just need to index the information
to work out who the top referrers are.
Okay, cool.
And I think the latest Pulse Trader
leaderboard and badge is done now.
So if you were one of the active Pulse Traders,
either it's just done
or it will be done in the next day or two.
So that leaderboard will update it
and everyone will have their photons
from their pulse trading activity for the last 30 days.
So yeah, check that out on your campaign page
and also on the lead board.
And then uh yeah and then we need to we need to turn on photons for um for the prism uh
for prism yield lp and y prisms as well um so we're going to definitely get that done before
launch and then i think yeah like if anyone has any questions on the token, you know, the Prism token,
what the token does, you know, why, you know,
or like what utility it has
or like what revenue capture it has, that kind of stuff,
then please do let us know.
We're gonna, we'll make sure we publish more details on it.
We've put some stuff out about it already
in terms of how it generates revenue
and what PrismHut token holders can do.
But if anyone wants more details,
we can definitely help out with that.
I think the aim is to make the launch page
kind of the one page that people need to go to so they don't need to
go and check docs somewhere or go and check a medium article to understand how the launch
works and that kind of stuff like we want to put everything on the launch page so it's all there in
one place for people um so we we definitely want to be guided by what uh you know you guys in the
community say you need for it.
And what you think would be most helpful to kind of like get
new people into the community.
I think if you bombard them with statistics, like,
like right now, if you go in the docs,
it tells you how the Prism token is going to make lots of
money and be a cashflow token,
but you have some like real world results,
at least use percentages.
You don't have to use actual numbers because they're small,
but the percentages should be pretty good
and advertise that on the page.
Yeah, I think we are,
ChainRoot has some good revenue numbers
showing kind of like how much how much revenue
prism is change making and once once the prism token live uh the prism token goes live all of
this revenue gets um prism token holders decide what happens to it so i think it's kind of you
know annualized revenue is like um is like 10% of TVL or something like that at the moment,
which is kind of a, you know,
I'm obviously biased from what I've seen,
I think it's like best in class.
And revenue will scale with TVL linearly for Prism.
So that's kind of, so I guess like initially
in this pre-token launch phase,
like we're super pleased with how much,
you know, or like the way that the model is working
at the moment and kind of like revenue
that's being generated in the treasury module that will be there
for Prism token holders.
Cause we want to make Prism a real revenue generating token
rather than something where, you know,
people are sort of arming and ahhing about
whether a fee switch gets turned on or not.
Do we have a launch date, Ollie, for the token now?
We are, yeah, I think we had some really,
we had some good feedback from people on the web app.
And so we are implementing those changes on the,
sorry, on the web app, on the launch page specifically.
And so then I think we're gonna uh hopefully hoping to kind of have something
out in a week or something i mean don't i you know uh i always giving timelines um is is never fun
because it's very rare you end up hitting you end up hitting it exactly because it's kind of
unforeseen stuff but that's that is what we're trying for.
At the moment,
what you can rest assured
is we're going full steam ahead
as much as we can for the token launch.
We obviously wanted to get these new assets live.
We want to get the CL order book live.
We wanted to,
we're excited to get the sole campaign live
with Backbone Labs.
And then hopefully
the token launch comes immediately after that.
Sorry, any other things turning on photons for Prism token holders that have already been airdropped?
I have a question about the turning on the photons for Prism there.
That's been asked of me many times, especially in DMs.
And that's, how's that going to work is
it going to be part of the regular photons pool is it going to have its own photons pool like uh
like the alps do or uh and which tokens are going to be it'll be its own um it will be its own uh
photon pool i don't think it's like i the existing photons um are for you know where everyone stands
the same chance so if if you if you came in uh only into this season then you're at the same
chance you have the same chance with photons as everyone who was in you know two seasons before
you um if we if we made if we made the prison photons from the same pool
that everyone's doing,
then it would disadvantage people that are new to joining.
So I think the fairest thing to do
is make a separate pool for everyone
that's already been airdrop prison
and give them tokens based on that.
That's going to make a lot of happy people.
That's what they're hoping for.
I think so. I think so. Sorry, JG, you had your hand up earlier on.
I did. I did. You know, we're super excited that the token's coming to life. It's been a long time coming.
And, you know, I just I don't want to share too much, but, you know, I do want to share, you know,
you know, through talking and collaborating and doing the SCAR stuff and learning about the platform,
Backbone is getting more and more excited to participate.
And I think the next step really becomes having activities for Prism, with Prism too, right?
And getting a grave digger, we're going to deploy one.
We want to be able to start, get NFT-fi on chain.
And there's other stuff, so many
things, so many possibilities that are coming to the table, because our systems complement each
other. Since everything that we do is like with LSTs already, we think that maybe there's a
possibility for like, a real synergy, like network effect. I'm really excited. I'm really excited. We're so
excited. We're spinning up a validator. We want to full participate, uh, with Prism. Um, and we
think that, um, we think that people, uh, will, will see what we see, I think is what it comes
down to, you know? Um, so we're super excited. Uh, I don't, I don't know how else to put it.
Like I'm, I'm, the more I'm seeing the shape up, all the pieces fall into
place, from my vantage point, yeah, we really want to shout the system and show the cosmos
what's happening here. Because once again, this is smart money. This is what brought me into
Terra. The first time around was being able to play these games and, and make money with money. That's like the best, it's an awesome feeling, right?
So we want to create the network effect and start getting the loop happening.
And we've got the scar campaign happening and we're going to showcase the
instant yield. And again, this will, uh,
the goal is this is to showcase this to other projects and other teams so that
they also say, Oh shit, that was a great idea.
Now, how can we do a spin on it for ourselves and have a successful experience as well, right?
The market is so – I think it's just – it's crazy.
It doesn't realize how ripe some of these products are.
And it just takes a little bit of excitement.
And now I think with the release of your token, I think that you you might i think that energy uh that spark could really ignite right now you know that's that's my thesis anyway no i i i i hope so like um you know i think i think you know i saw you saw it as well
today but like sneaky things like even without a token, Prism has made it onto like Kepler's top five apps for the month and stuff like
that. So like Prism uses a pretty active,
and that's even without a token, like loads of the other,
loads of the other chains, you know,
most of what people are doing is just like going on the chain,
claiming their staking rewards. Like there isn't actually anything, you know, interesting that people are doing on the chain and i think we're now like you know
consistently like five six hundred daily active users on prism um which when you when you don't
have you know people just collecting staking rewards for the token it's like it is a lot in
cosmos um so i think yeah i think things falling into place and i think hopefully for the token is a lot in Cosmos.
So I think, yeah, things falling into place.
And I think hopefully, you know, when you get a lot of people just,
a lot of people just, you know, don't necessarily want to get too involved
in DeFi stuff, but do want to own tokens of interesting DeFi products.
And so I think it'll be interesting to see those people
that have felt like they maybe didn't want to participate
before coming in now and doing it.
I think the way we've done the airdrop before
is we wanted to give the airdrop to everyone
in Prism Derivatives so that it kind of like gave them
an opportunity to learn how to use Prism.
And it meant that the people that did learn
have effectively, you know,
tokens have swapped hands from people
that didn't want to learn to people that did learn.
And so I think, yeah, it's been good
for kind of bootstrapping a real, like,
grassroots community.
So I feel very happy about it.
We got some, you know, people have said some,
you know, given us said some, you know,
given us some really constructive feedback and said some really constructive things in the Telegram
and kind of like the experience that they're having.
And then as, you know, as we've been speaking about,
you know, this is, there's loads more products to come
that are going to benefit Prism users directly
through more utility
for your tokens, but also through, you know, airdrops and rewards for Prism token holders
for kind of like helping us guinea pig these products. So I think it's, yeah, it's going to
be exciting, exciting few months, hopefully.
JG, I hope I'm first to instant yield my Adam into scars.
I want some scars.
Yeah, you got to earn scars.
That's how it is in real life.
You can't get those for free.
Exactly.
And you can't transfer them, right? So that's the other thing.
I'm really excited for this.
Me too.
Honestly, again, it's like the whole point of these decentralized activities and groups, like we've got to do stuff together.
Everybody who just want to sit on the sidelines.
I know people licking their wounds right now.
But the whole point is coming together.
That's where the network effect happens.
And, you know, Prism, again, you guys have created something that is really useful. And it's about educating and disseminating. And you have these other,
again, I don't want to give away too much. We talked about these other things you have coming
out that there's a real opportunity to create, like just these other communities within the
community. Like there's so many possibilities with Prism, with the token going live. And I think
that the market needs something
fun. And this is something that people can get behind. And if we can start to get the education
out, then once they get over that little learning curve, they will be like, oh, like his neighbor,
the lights went on. Someone who just needs to explain a few things. So we got to make that fun.
We got to make that fun. Yeah. I'm really excited to see what you're going to do uh gravedigger uh for prism but also
even even refracting nfts because you have nfts that have uh real yield so that's going to be
crazy that's a great point i i that's i totally forgot that that would be a possibility. Yes, sir.
See, there's just opportunity after opportunity.
Good guy.
And I think, you know, the other one we're excited about as well is the money market where people are going to be able to lend and borrow against their NFTs.
So I think it'll be, I think it's,
yeah, there's gonna be lots of fun stuff.
I think it's all like, yeah, it has to be about,
DeFi has to be about experimentation
because it's all new.
And so it has to be about learning new things
and kind of like, at some point,
this sort of just rotating capital from Uniswap fork
to Uniswap fork to Uniswap fork,
I think people are gonna get bored of
and people, you know, gradually more and more people
are sort of looking for things where there's kind of,
you know, new innovation that they haven't seen
and new things to experiment with
and kind of new communities to join.
That's what I'm excited about.
Has anyone got any other questions?
Like feel free to raise a hand or or answer in the comments
I have community questions here too if you want
Yeah, just do it
Okay
So first one I have here. How is the team handling chain security post-launch?
The current validator set is fairly small.
Yeah, I think Hyperliquid was like four validators all in the same office. realizing that you know previous previously where you had you had cosmos
SDK based chains that were you know celebrating having 150 to 200 validators
and everyone was kind of wanking themselves off about Nakamoto
coefficients and that sort of stuff I think I think you know people are
realizing now that particularly on chains that are operating more like proof of authority, which kind of Prism is or Noble is, you know, you're not sat there worrying about sort of some, you know, 50% attack or 66, twothirds attack. So from a from a validator set
perspective,
we're not
we're not very
we're like super happy with where we're at.
I think
if anything, like I would expect Prism
token holders to
consider whether they wanted to kind of like
decrease the validator set when
the chain goes live. Ultimately, you know,
and I think a lot of these chains with large validator sets, maybe, you know,
maybe things like Osmosis, maybe the Cosmos Hub,
Celeste has definitely done it. Dimension as well.
Like lots of these Cosmos SDK based chains have kind of realized that,
you know,
you go and give some huge foundation delegation to XYZ validator.
And then XYZ validator is like thunder dumping your token into oblivion.
And and it's like really working in the face of the face of the community.
the face of the community and so you know the more validators you have the high you know every
validator has kind of like similar costs to set up similar costs to run they're all going to need
to sell things to kind of cover their costs and you know just being honest like making profits
um and so the more the more people you have selling the token and trading the token that
aren't community you have to start asking yourself, like,
is the marginal benefit of having one more validator really worth the kind of
like tokens that they're going to be dumping consistently?
And so I think, you know, Celestia, like,
massively reduced its chain inflation,
which actually ended up being an incredible trade for people that bought p tier
um and then you know you've seen the same with dimension uh you've seen the fact that
it's kind of celestia has done all these huge foundation delegations um that have you know
meant that foundation's getting a lot of rewards but also just to kind of dilute the yields that
everyone else was getting um and kind of reduce selling pressure.
So I don't think, that's a long way of saying,
like, I don't think ValidatorSet
is either particularly that important.
And also I think you should just look at it
and like what the cost is
and what people are gonna dump on it.
And I think Hyperliquid has shown everyone
like how these kind of like proof of authority chains I think Hyperliquid has shown everyone, you know, shown everyone like,
how these kind of like proof of authority chains can work and how Nakamoto coefficients aren't necessarily
the most important thing for security.
I think like, I think when we look at security
for Prism Chain, the things we care the most about are,
The things we care the most about are that we went through a super thorough audit process for Certic, which is really good.
We had some of our contracts audited by Oak Security.
I think there's something you can have on blockchains called rate limiting.
you can have on blockchains called rate limiting.
And what rate limiting does is that will,
the chain can set the amount of tokens that get removed from the chain.
So say there's a,
like a hack on osmosis and someone drains a load of Osmo from the pool,
but Osmo has a rate limiting feature that says only
one million osmo can get sent off the chain every one hour or something like that what that means is
if the osmosis liquidity pool gets hacked and 50 million osmo get taken out of the liquidity pool
and the attacker goes to kind of like send one million osmo away to dump them on a centralized exchange or something,
the attacker can only do 1 million Osmo every hour. So that gives the chain time to be like,
okay, actually, the attacker's got away with a million, they stole 50 million, but that other
49 million is sat on the chain. Let's, you know, stop the chain or take remedial action
and you kind of buy yourself time
with this IBC rate limiting.
So that's actually quite an important feature
and one of the benefits of building an app chain
rather than smart contracts,
because if your smart contracts get hacked,
you don't control whether tokens can go on or off the chain.
And so that's something for like DAP developers
to be aware of.
I think the other thing is,
you know, anytime Prism wants to make any code changes
or do anything,
the validators need to approve it
and it gets done as kind of like part of a chain upgrade.
With smart contracts,
you know, DAPs that are built on top of blockchains um those uh smart
contracts are controlled by a multi-sig and the multi-sig is no one has any idea how many people
have the uh have the passwords it might say it's a three or five multi-sig but it might be the same
guy that has all five access to five or three people might have access
to all five codes and that kind of stuff and so it's not secure and that kind of stuff's been
you know seen time and time again it's not auditable or verifiable that uh who actually
knows the seed phrases for each of the wallet addresses on the multi-sig so those are those
like some of the things that I think are super important
when we're thinking about security.
I'm open to any other questions people have around that stuff,
but when people are putting their funds on an app chain
versus into some smart contracts,
it's definitely worth people understanding the risk they're taking
because ultimately that risk should,
ultimately if you're taking more risk,
then you should be getting paid more yield
as a result of that.
And if you're taking higher risk
and not earning any more yield,
then you should be asking yourself
why you're doing the higher risk option.
That's very interesting. I never knew the difference and that you broke it down really
nicely that the validators are the ones that have to approve changes instead of a smart contract.
That's really cool. Can you explain a little bit about the proof of authority? I don't know what
that is and why that's awesome. Proof of authority becomes more of like a, it becomes like a reputational thing as well,
like where you have several validators and these validators are normally kind of like well-known
operators and well-known people. So it becomes, you know, it's not, you know,
it's not a nameless validator that's popped up
that actually turns out is like a North Korean dude
in his underpants in Pyongyang
that is going to rug everyone,
like it's proof of authority
where it's kind of like well-known, you know,
well-known validators.
So that ends up being that.
And also there are kind of like one or two other nuances to it.
They're probably better explained in text,
so I can put it down in Telegram,
but that's kind of how it works roughly.
And that's the case with all our .
It's basically that the security is not handled
by more and more validators,
but more that they're trusted validators, right?
Yeah, exactly.
Okay, cool.
And that's what effectively what we are
pre the token being distributed now.
That's what Noble is.
So yeah, so that's kind of that's kind of how that works
All right, cool
No, no one wrote anything else within the space but I do have more questions all the unless you want to say I'm aware of time and
Go for it.
No, go for it, go for it.
Okay.
Given the upcoming LBP, I'd like to find out more about how secure funds,
about how secure funds are on PRISM.
Could you share about measures that have been put into place to safeguard
against both technical failures like hacks smart contracts
risk and human failures that's an interesting one yeah that was just a drug yeah exactly it's that's
the same as the answer to the one just before yeah okay good sorry i'm just following the list
no no no that's i mean the main thing is yeah yeah, like exactly. It's, you know, upgrades are done by validators rather than multi-sigs.
And IBC rate limiting is kind of like a key feature that sort of,
like effectively Prism token holders control a parameter that decides
how much Osmo is allowed to move off Prism,
how much Atom is allowed to move off Prism, how much Atom is allowed to move off prism,
how much prism is allowed to move off prism
in a specific time period.
So that's kind of like a good thing.
And then I think the other thing I mentioned,
you know, I touched on there is like,
if someone rugs a smart contract,
they can get the funds out and that's it straight away.
You know, if someone,
and you can't do a chain halt,
as we've seen with, you know, on Ethereum, for example,
but like if there's something that happens that's really bad,
like, you know, not hacks necessarily,
but you've seen things with Osmosis or with ThorChain, for example,
where validators have got together and have done a chain halt. So that kind of that stops the flow of stolen funds.
So that's that one.
But yeah, sorry, Melina, do the next one.
As long as it's not about security again.
Would you say measures such as audits are inefficient or impractical?
I guess I'd like to understand the risk new users should be aware of before committing funds.
Someone's going deep on the security.
I like it.
No, I like it.
Like, honestly, my view on audits is if you get something audited, then really, I think it's better to work with someone who's like an ongoing security partner than just a one-off audit. An audit is like an audit is like, you know, like it is in the real world.
It's a snapshot in time of how things are.
And, you know, between time A and time B, if anything has changed, then that between those two time periods, there's no audit going on.
Like it's only when you get to then time period B
that you do another snapshot
and another audit happens.
I think you're better working with like ongoing security.
And so that's one of the reasons that we have,
for example, SCV is a validator in our validator set
because they are professional auditors.
And so we want to align by making sure that they're incentivized
to kind of like be involved with Prism.
And I've seen firsthand some of the great work SCV's done
with other chains on security issues.
So we want to have them working closely,
which is why we've got them as a validator.
I think, yeah, like generally trying to find security partners and aligning incentives so
that they're constantly kind of like on call for security issues or potentially can do any
monitoring on chain upgrades or, you know, small tweaks that happen. And then I think also,
you know, as a team, you have to be really conscious about any updates
or any changes you make that are updates
or changes to audited code that aren't getting audited
every single time there's a small tweak
or a change that gets done.
And so it's kind of like having good internal processes
and internal controls.
All right, next question.
Let's make it not as security one
if we got a chance yeah i was gonna say too you know we laughed about security but my god we've
come such a long way i actually it gets me excited knowing that people want to know more about the
security aspect side of things so uh yeah i just wanted to mention that because i know i laughed
about it but uh security is no joke so okay question. Is the plan to continue to allow any token to be used for gas fees?
Oh, remember when we used to say that, Ollie?
Or will we switch to prison as the native gas token?
It is.
I mean, what we care most about is like, I personally think it's,
and I think, you know, obviously as a team as well,
like I think, you know, we felt that it's pretty horrible UX
that you need to go to a new blockchain.
You know, if you want to do something on Prism with your Atom,
you would need to, and you're a new user,
you would need to send over your Atom to Prism, and then you'd need to go and
buy some Prism on an exchange and then send that over to Prism so that you can use that
for gas so that you can do the thing with your Atom that you want to do.
I think it's bad UX.
Ultimately, Prism token holders can decide which tokens they want to accept
as gas and what they want the gas rates to be. Hey, Ali, can't you just set like a little price
discrepancy? Like it's more expensive to just transact in the other tokens and it's a little
more cost effective to do your action in Prism? Yeah, exactly.
Sorry, can you hear me okay?
Yeah, you came back in now.
Yeah, sorry.
So yeah, exactly.
So what it would be is exactly that.
Like at the moment, if you wanna use atom as gas,
it's gonna be more expensive for you in dollar terms
to use atom as gas than it would be to use prism as gas the what the important thing to know is like all of these gas fees um get put into the
treasury module so all the atom that's been used to pay gas or the usdy that's been paid to guess
at mbtc etc that all gets put into the treasury module and then prism token holders get to decide whether all of that gets used to buy back
prism tokens and with those bought prism tokens they can either burn those prism tokens
or they can distribute them to stakers or they can send it to the community pool so effectively
one way or another those tokens everything that gets used as gas will be used to buy prism tokens um so it kind
of has the same impact and uh if you if you're not using prism as gas you're going to pay slightly
more in gas but ultimately that means more more buying pressure on prism in the future because
people will use that to uh you know because of the buy back and burn or buy back and distribute
so that's kind of like how we think about it but ultimately prism token holders
control these parameters once the token's live and they can decide which tokens they want to use as
you know use this gas or we can have forum discussions about it which reminds me uh when
is governance going live both for prism and for other tokens.
Shortly after the chain launch.
We have a UI for it,
so hopefully get it out as soon as we can after the chain launch.
And people will be able to vote when they're holding their C-ATOM and all that?
Yeah, exactly.
We want to get PGAV live as well. I think we'd like to... I mean, that yeah exactly we want to get pgov live as well I think
we'd like to I mean ultimately we'd like to get more what what the goal would be is to get a
significant amount more say atom or tier or injective or something like that
delegated either in prison or delegated to the PRISM validator
and try and make it so that, you know, how P-inch holders
or P-tier holders vote actually becomes really material
for people that are putting up proposals on the Cosmos Hub.
So, for example, a new protocol that might, a new protocol that says, OK, I want to, I want to make a community grant proposal from the Cosmos Hub.
Actually, people that hold P-ATOM on PRISM control quite a significant amount of Atom. So what I'm going to do is I'm going to say, do you know what, everyone who holds P Atom
that votes on this proposal for me,
I'm going to give them an airdrop or something like that.
Those sort of things is ideally what we'd like to do
at the moment with slightly lower Atom amounts
or the Atom isn't like material enough
to probably get, you know, bri a is a funny word for it but it seems
to be the one that people use in crypto but ultimately there isn't um there isn't enough
atom to probably make bribing that worthwhile uh but i think as we get more atom in um or more
injectable more tier uh it will become, you know,
potentially pretty lucrative for P token holders as an additional revenue source
of airdrops where, you know, new protocols will bribe them for their votes
on atom or tier or injective governance proposals.
Nice. And it is going to be a governance for C, whatever it is, C-Atom, P-Atom, and LP?
Just C and P at the moment.
Okay.
That's how the logic's done. I think in the future, we'd like to add LP, but the logic
that we've built and that's been audited is C&P at the moment.
Okay, cool.
Melina, were there any other ones?
There are more.
Well, we could always do them next week.
Up to you.
Pick your favorite one from it.
That sounds interesting.
Make sure it's about security.
No, there's not that many more, actually.
This was about Discord.
This one asks, what other...
Well, I think you just answered that one.
Other use cases for Prism tokens.
I think you just answered that one.
Let's go with this one. the team communicated that they plan to introduce photon rewards for sticking prism yield lp tokens will this happen before the lbp or after yes before
before so very soon so so stay stay tuned for that and as we were saying earlier this will be a
tuned for that. And as we were saying earlier, this will be a separate pool of Prism tokens
for people. So there'll be Prism tokens set aside just for people that are trading, that
are holding their Y Prisms or their Prism yield LPs.
I mean, Ollie, I've got one left, but I don't think it's from the community.
But the question I have here is, can you share something about your vision for Prism in the next six months, Ollie?
I don't know. Do you have the crystal magic ball?
There we go.
Our vision is get the token live.
vision is our vision is get the token live get more feedback from community on what they what
they're enjoying what they'd like to see more of um what are the tokens they'd like to see listed
on prism and then release these other products so that we're increasing the utility for uh for
prism tokens and for prism token holders so that is the money market um the uh the order book um and it's
going to be an options protocol where you can sort of uh effectively get liquidation free leverage to
the upside or uh or shorting um using call options and and put options. So these are the main things.
Like I think I personally have liked it,
you know, I guess like the most bullish
and excited I've been about the stuff that we're,
you know, these extra products
and stuff that we're building
and kind of the utility that's going to add.
So it's going to be a busy six months
into the end of the year for you know us you know us so I think
yeah pretty excited about that cool one thing you should make sure that people know on the page of
the LBP when they're buying prism there will be airdrops coming maybe you can hint at some numbers
or something for holding prism. Yes, we will.
We're definitely going to make sure that kind of like all the tokenomics and utility and
what Prism holders can expect.
We will put that on the page there.
We're going to have a little info tab where it will contain all of that.
But yeah, good shout.
All right, cool.
I will thank you very much, everyone. Thank you, Melina. Like, for me, I think everyone's probably heard enough from me. But if people have more questions, please ping us on Telegram or Discord. Super excited about the Backbone Labs launch. JG, any final words from you on uh on on uh on that yeah yeah look so i think we're just
checking to see if the prs are registered if they are then if you're good to go on your side uh
we're good to go we have a medium article as soon as you give us a green light we'll put that up and
make a tweet and um again we're just excited to participate and showcase the product and to bring attention.
And again, I feel like there's a lot.
It's going to snowball, right?
Like a lot of events are lined up very well.
And if we do it right, then I think we can commandeer a lot of attention.
And that's the goal.
The goal is to get attention and to get eyes on the products.
That creates network activity.
That moves blocks.
We want to fill blocks.
That's the goal.
Nice.
All right, let's do it.
Thank you very much, everyone.
Appreciate it.
Cheers.
Thanks, brother.
Thanks, buddy. Thank you.
