Jack Kubinec 

Donovan Choy

The essential source for all things Solana — exclusive news, deep analysis, and the latest trends.

Lightspeed

Gm! This week Hester Peirce joins the show to discuss the current state of crypto regulation. We deep dive into the SEC's current outlook on regulation, the crypto task force initiative, tokenization, what Hester wants to achieve at the SEC &amp; more. Enjoy!
--
Follow Hester: https://x.com/HesterPeirce
Follow Jack: https://x.com/whosknave
Follow Lightspeed: https://twitter.com/Lightspeedpodhq
Subscribe to the Lightspeed Newsletter: https://blockworks.co/newsletter/lightspeed
 
Join the Lightspeed Telegram: https://t.me/+QUl_ZOj2nMJlZTEx
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Crypto’s premiere institutional conference returns to London in October 2025. Use code LIGHT100 for £100 off at checkout: https://blockworks.co/event/digital-asset-summit-2025-london
--
Katana is a DeFi-first chain built for deep liquidity and real yield, by redirecting chain revenue back to active DeFi users. 
 
The 1 billion KAT campaign is live. Bridge and deposit directly into vaults in one simple click and start earning immediately on your ETH, BTC, USDC, and more. Go to app.katana.network to check it out.
--
Is your treasury losing value to inflation? Learn how to make digital assets like ETH and SOL productive with uncorrelated, protocol-driven staking rewards. A new report from Liquid Collective and EigenCloud outlines a practical guide for CFOs to integrate institutional-grade staking and restaking.
 
Read The Productive Treasury Report: https://liquidcollective.io/corporate-treasury-staking/
--
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
--
(00:00) Introduction
(01:42) Working With The CFTC
(08:06) Is Hester On Crypto Twitter?
(10:57) Katana Ad
(11:48) Eigenlayer Ad
(12:49) Crypto Innovation vs Regulation
(22:12) Regulatory Clarity In 2025
(35:26) Katana Ad
(36:16) Eigenlayer Ad
(37:18) The Crypto Task Force
(43:39) Liquid Staking
(46:06) Tokenized Equities
(50:55) What Hester Wants To Achieve At The SEC
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Disclaimers: Lightspeed was kickstarted by a grant from the Solana Foundation.

Nothing said on Lightspeed is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Jack, and our guests may hold positions in the companies, funds, or projects discussed.

SEC Commissioner: A New Era For Crypto In The U.S | Hester Peirce

Gm! This week Brandon Potts joins the show to discuss Solana's next catalyst. We deep dive into the state of Solana, DeFi 2.0, the impact of institutions on crypto markets, are ETFs &amp; DATs underpriced by the market &amp; more. Enjoy! 
--
Follow Brandon: https://x.com/b_potts23
Follow Jack: https://x.com/whosknave
Follow Lightspeed: https://twitter.com/Lightspeedpodhq
Subscribe to the Lightspeed Newsletter: https://blockworks.co/newsletter/lightspeed
 
Join the Lightspeed Telegram: https://t.me/+QUl_ZOj2nMJlZTEx
--
Crypto’s premiere institutional conference returns to London in October 2025. Use code LIGHT100 for £100 off at checkout: https://blockworks.co/event/digital-asset-summit-2025-london
--
Katana is a DeFi-first chain built for deep liquidity and real yield, by redirecting chain revenue back to active DeFi users. 
 
The 1 billion KAT campaign is live. Bridge and deposit directly into vaults in one simple click and start earning immediately on your ETH, BTC, USDC, and more. Go to app.katana.network to check it out.
--
Is your treasury losing value to inflation? Learn how to make digital assets like ETH and SOL productive with uncorrelated, protocol-driven staking rewards. A new report from Liquid Collective and EigenCloud outlines a practical guide for CFOs to integrate institutional-grade staking and restaking.
 
Read The Productive Treasury Report: https://liquidcollective.io/corporate-treasury-staking/
--
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
--
(00:00) Introduction
(03:47) The State Of Solana
(05:57) Will DATs &amp; ETFs Be SOL’s Next Catalyst?
(19:04) Katana Ad
(19:56) Eigenlayer Ad
(20:57) Does Onchain Activity Matter For Token Price?
(30:21) Stablecoins &amp; DeFi 2.0
(37:43) Katana Ad
(38:34) Eigenlayer Ad
(39:36) Crypto’s Value Proposition
(54:25) How Does Solana Compete With Alt L1’s?
(59:20) The Solana End Game
--
Disclaimers: Lightspeed was kickstarted by a grant from the Solana Foundation.

Nothing said on Lightspeed is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Jack, and our guests may hold positions in the companies, funds, or projects discussed.

Solana's Next Big Catalyst | Brandon Potts

Gm! This week Sang Kim joins the show to discuss Fragmetric &amp; the future of Solana DeFi. We deep dive into generating yield, the role of DATs in the SOL ecosystem, the crypto industry in Korea &amp; more. Enjoy!
--
Follow Sang: https://x.com/sangdotsol
Follow Jack: https://x.com/whosknave
Follow Lightspeed: https://twitter.com/Lightspeedpodhq
Subscribe to the Lightspeed Newsletter: https://blockworks.co/newsletter/lightspeed
 
Join the Lightspeed Telegram: https://t.me/+QUl_ZOj2nMJlZTEx
--
Crypto’s premiere institutional conference returns to London in October 2025. Use code LIGHT100 for £100 off at checkout: https://blockworks.co/event/digital-asset-summit-2025-london
--
Katana is a DeFi-first chain built for deep liquidity and real yield, by redirecting chain revenue back to active DeFi users. 
 
The 1 billion KAT campaign is live. Bridge and deposit directly into vaults in one simple click and start earning immediately on your ETH, BTC, USDC, and more. Go to app.katana.network to check it out.
--
Is your treasury losing value to inflation? Learn how to make digital assets like ETH and SOL productive with uncorrelated, protocol-driven staking rewards. A new report from Liquid Collective and EigenCloud outlines a practical guide for CFOs to integrate institutional-grade staking and restaking.
 
Read The Productive Treasury Report: https://liquidcollective.io/corporate-treasury-staking/
--
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
--
(00:00) Introduction
(02:19) What Is Fragmetric?
(09:13) How Does Fragmetric Generate Yield?
(14:38) Katana Ad
(15:30) Eigenlayer Ad
(16:31) Are DATs Bullish For Solana DeFi?
(22:20) Which DATs Will Benefit From DeFi Strategies
(29:34) Katana Ad
(30:26) Eigenlayer Ad
(31:27) Crypto In Korea
(42:18) Lessons Post TGE
(50:00) What’s Next For Fragmetric?
--
Disclaimers: Lightspeed was kickstarted by a grant from the Solana Foundation.

Nothing said on Lightspeed is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Jack, and our guests may hold positions in the companies, funds, or projects discussed.

Solana DeFi Summer Is Coming | Sang Kim

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



In his work on the pre-800 AD Classic Maya economy, the historian Philip Curtin recounts a striking finding: Archaeologists measured the ratio of cutting length to weight in obsidian blades and discovered that the ratio varied inversely with distance from obsidian sources.&nbsp;



The economist Deirdre McCloskey <a href="https://www.tandfonline.com/doi/abs/10.1080/08913819908443534">cites</a> this as evidence that the human impulse toward exchange and profit-seeking gain has always existed.



“If Mayans lived in a gainless, profitless, nonmarket economy, it would not matter to them how expensive obsidian was. But…the ratio varied inversely with the distance from the sources of the obsidian. By taking more care with more costly obsidian, the blade makers were earning better profits, as they did by taking less care with less costly obsidian.”



Formal markets add property rights and legal enforcement. But they channel innate human behaviors that were already there, contrary to the popular belief that capitalism “causes” consumerism.



Modern Japan (and parts of Asia) offers a vivid illustration of what that economic logic looks like in the extremes.



The average Tokyo street is chock-full of cute and colorful Gachapon capsule machines. People flock to them for the prospect of a rare collectible.&nbsp;



Yet a meaningful share of buyers in these markets aren’t pure collectors: Many chase quick flips.&nbsp;



Take Asia’s latest <a href="https://blockworks.co/news/labubus-succeeded-nfts-failed">Labubu</a> phenomenon, for instance. Resale prices of the wildly popular Pop Mart series <a href="https://www2.yicaiglobal.com/news/pop-mart-slumps-after-chinese-toymaker-boosts-labubu-supply-causing-resale-prices-to-plungehttps://www2.yicaiglobal.com/news/pop-mart-slumps-after-chinese-toymaker-boosts-labubu-supply-causing-resale-prices-to-plunge">reportedly</a> halved when the company announced a supply increase.&nbsp;



There’s also evidence that at least <a href="https://www.forbes.com/sites/joanverdon/2025/08/13/labubus-remain-king-of-the-collectibles-stockx-reports/">40%</a> of consumers buy such toys for “appreciation potential.”



But if profit-seeking is the dominant motive to make and sell these things, then it’s not surprising that the door to hyperfinancialization inevitably swings wide open.



Predictably, crypto entrepreneurs are the first ones kicking the door down.



In the last few months, Gachapon-like platforms have seen growing product-market fit. Total money spent on platforms like Courtyard, Collector Crypt, Phygitals and Emporium grew from $10.4 million in January to $61.1 million in August, according to <a href="https://mementoresearch.com/the-state-of-pokemon-rwa-tcg">Memento Research</a>.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=1024&amp;h=1024" alt="" class="wp-image-107455" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-66.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Last month clocked a monthly high of about ~$114 million of trading volumes.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=1024&amp;h=1024" alt="" class="wp-image-107456" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-67.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



These platforms have a similar business model:



<ol class="wp-block-list">
<li>Platforms keep a secure vault inventory of professionally-graded collectible cards (typically Pokemon/baseball).</li>



<li>The cards are tokenized as a NFT.</li>



<li>They are sold as randomized Gachapon items to users with paying stablecoins.</li>



<li>After a reveal, you can sell them back to the platform at a predefined buyback rate based on the insured market value of the card, sell it on a secondary marketplace or redeem the physical card from the vault for a fee.</li>
</ol>



There are exceptions. The Phygitals platform on Solana, for instance, does not necessarily have rare cards on hand, and relies on “dropshipping” procurement if the user decides to claim the card. Otherwise, users are offered refunds.



“That&#8217;s a drawback because they don&#8217;t really own the card,” Memento Research’s analyst zkayape told me. “On the other hand, Collector Crypt rare cards are quite well-stocked (759 epic cards at the moment) due to strong procurement on their end from Web2 rails and connections. They’ve been in the scene for quite some time.”



Gachapon spending also resembles a similar whale-like economy structure across all four platforms.



Memento’s research shows that on Polygon’s Courtyard platform, 90.5% of total spend came from just 5.9% of users. On Solana’s Collector Crypt, 93% of all Gachapon revenues came from 17.5% of users — about 50% of users spent above the “whale” threshold of $1000.



Revenues are conclusively driven by Gachapon spending, rather than secondary marketplace trading.



As far as I can tell, these platforms do not use a verifiable RNG, so users are still trusting that platforms are assigning cards at the stated tier probabilities.



Do users care?



The average consumer of real-world Gachapon or blind boxes certainly doesn’t. I don’t know any blind-box collectors complaining of the non-transparency involved with these products.&nbsp;



Financial speculators, however, are a different breed of consumers. These are the guys who live in “expected value” probability math, seeking to optimize every basis point for an edge.



The platforms are designed to buy back cards at a fair market value from users (to keep users gambling), so there’s at least a cap on the financial downside.



Even so, a trust gap remains. Verifiable randomness and zero-knowledge proofs could make Gachapon draws auditable, not just promised.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Gaming

Gachapon on the blockchain is already a hundred-million dollar market

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Liquid staking is a winner-takes-all game.



Users want staking yield and instant liquidity; the first is an easy commodity to provide, the second is a tough distribution problem.&nbsp;



Each liquid staking token (LST) has to bootstrap deep pools and win listings across money markets, perps, routers and wallets so it can behave like “money.”&nbsp;



But liquidity begets liquidity — hence why Ethereum’s LST market has long been dominated by Lido’s stETH, followed by a long tail of smaller unsuccessful LSTs.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1280" height="640" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=1024&amp;h=1024" alt="" class="wp-image-106930" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=1280 1280w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/bw-piechart.png?w=80 80w" sizes="auto, (max-width: 1280px) 100vw, 1280px" /></figure>



That same dynamic, however, does not play out in Solana, which has literally <a href="https://app.sanctum.so/explore">thousands</a> of LSTs. That’s largely due to Sanctum, the team responsible for inverting the economics of LSTs on Solana.



How does Sanctum do it?



Sanctum (formerly Socean) provides a white-label issuance service for anyone to launch their LST, and a shared liquidity reserve that any LST issuer can plug into.&nbsp;



This shared reserve enables anyone with SOL to launch their own branded LSTs without worrying about having to raise a giant SOL buffer to meet redemptions.



Sanctum’s co-founder FP Lee told me: “Liquid staking on Solana works differently from liquid staking on Ethereum due to some technical reason with state accounts.”



“I saw a future whereby, as long as you build a unified liquidity layer, that the marginal cost of creating your LST will be zero, and therefore there&#8217;ll be a thousand LSTs eventually.”&nbsp;



To facilitate swapping between thousands of LSTs is where Sanctum&#8217;s own AMM “Router” comes in.



Swaps on Sanctum’s Router don’t rely on liquidity depth as is typical on AMMs. It simply moves underlying stake positions at intrinsic values, similar to how a bank’s clearing network works, letting Sanctum net a small fee. That effectively allows the swapping between LSTs without bonding curves or impermanent loss.



When necessary, swaps can tap into its reserve or the “Infinity” shared pool where thousands of LSTs sit. Here Sanctum takes a small fee and routes it to INF, Sanctum’s yield-bearing product that consists of a basket of whitelisted LSTs.&nbsp;



This additional revenue stream is why INF’s yield has historically outperformed even the yield of Solana’s dominant LST, JitoSOL.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1288" height="880" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=1024&amp;h=1024" alt="" class="wp-image-106872" style="width:674px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=1288 1288w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=376 376w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=382 382w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=321 321w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-11.png?w=80 80w" sizes="auto, (max-width: 1288px) 100vw, 1288px" /></figure>



INF is commonly referred to as a “LST-of-LSTs,” but it is really more akin to a yield-bearing strategy that involves trusting Sanctum’s curation.&nbsp;



In sum, Sanctum socializes the hard parts of the LST business (depth, redemptions, routing) so everyone can launch an LST and ride the same liquidity engine. Then it builds a superior yield-bearing product on top of everything. Voila.



You wouldn’t guess it from the price action of its CLOUD native token (don’t look), but Sanctum is one of the rare few revenue-generating teams in the industry. Sanctum’s vertically integrated liquid staking product suite has generated substantial revenues, about $5.9 million annualized off this month.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1270" height="668" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=1024&amp;h=1024" alt="" class="wp-image-106870" style="width:672px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=1270 1270w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-10.png?w=80 80w" sizes="auto, (max-width: 1270px) 100vw, 1270px" /></figure>



Now the team is expanding beyond liquid staking. Sanctum’s v2 <a href="https://x.com/sanctumso/status/1960727723716084084">revamp</a> yesterday unveiled officially a broader push into Solana’s transaction-delivery layer.



At the center is Gateway, a “transaction delivery aggregator” that builds on its acquisition of the DevOps <a href="https://blockworks.co/news/sanctum-acquires-ironforge">infrastructure platform Ironforge</a> last month. Gateway is designed to improve transaction inclusion with full-stack transaction observability of RPC providers.



Gateway works by routing through multiple providers (RPCs, Paladin, Temporal, etc.) and will use pay-as-you-go pricing with tips, rather than an upfront subscription.



The goal is to become the “de facto entry point” for Solana, Lee told me.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Lightspeed Newsletter

Sanctum V2 expands to Solana’s transaction delivery layer

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



DAO governance has long struggled with plutocratic voting, insider problems and voter apathy, among many other problems.



Over the years, several teams in crypto have <a href="https://vitalik.eth.limo/general/2024/11/09/infofinance.html">explored</a> the idea of using futarchy to solve these problems. The MetaDAO team on Solana is at the forefront of this effort.



To date, MetaDAO has onboarded at least a dozen teams creating active proposals, including Drift, Sanctum, Marinade and more.



Futarchy is simply a decision market. Think Polymarket, but rather than betting on an outcome, you’re betting on consequences, or what should happen.



Why would a trader with no stake or relationship to the DAO be incentivized to bet wisely? Simply because they are putting their own money at stake.



Here’s a simplified example of how your average MetaDAO decision market works.



A hypothetical InflationDAO pays out tens of millions in weekly liquidity mining rewards that helped juice the protocol’s early growth but is now unsustainable and draining the treasury.&nbsp;



In a one-token-one-vote DAO, there’s little hope to slash emissions. Economically illiterate token holders don’t give a shit, or entrenched interest groups playing the short-term game don’t want to see their yield rewards disappear.



In a MetaDAO decision market, however, a contributor can take action with a futarchy proposal: “Cut rewards by 70%; Pass threshold: 3%.”



MetaDAO proceeds by opening two conditional markets with two tokens “PASS” and “FAIL.” Traders deposit an underlying asset like USDC and receive both PASS and FAIL tokens. The vote commences.&nbsp;



As the vote goes on, traders who believe InflationDAO’s emissions should stop can express that view by buying PASS tokens, pushing PASS token price up, or selling FAIL tokens, creating sell pressure for FAIL. Same goes for the reverse.



After the vote ends, if the time-weighted average price (TWAP) of the PASS or FAIL token is at least 3% above the other, the vote concludes and only the winning side is able to redeem their tokens for USDC.



Here’s the key point. The pass threshold is simply a “finish line” that traders need to keep the average above.



If spreads are already ~3% on spot, buying more PASS only makes sense if you want to lift the TWAP above 3% (and maintain a buffer that will persist until the market closes); otherwise you’re just subsidizing the outcome with little expected profit.



Unlike prediction markets, decision markets are not zero-sum. Traders are not merely concerned with the directional outcome of the vote, but also with the basic question “Did you own the correctly priced token at an attractive entry price by the time the outcome finalizes?”



Futarchy aligns the wisdom of crowds with governance. It makes it possible for a well-informed minority to steer governance decisions toward socially good outcomes that may be deeply unpopular with the majority.



But whether or not the outcome is “socially good” depends on the objective that the market is encoded for.



Rather than a 3% TWAP spread, the market could use a pass threshold like token price as a rough proxy for company “welfare.”



The design space around decision markets are varied. Yet, futarchy seems to be only useful for significant&nbsp; governance decisions that would move the spread on the market price of the reference assets.



“Should InflationDAO change its mascot from Uncle Sam to Lee Kuan Yew?” is not a variable that traders will expect to influence the price of the underlying reference asset.



What decision markets harness on is the universal profit motive to drive sound decision-making. And if you believe in that theoretical promise, just imagine how it can change the face of ICOs.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">high-quality founder I&#39;ve been talking to for 6 months just told his team he wants to do a futarchy ICO 😎&mdash; Proph3t (@metaproph3t) <a href="https://twitter.com/metaproph3t/status/1959294746838573249?ref_src=twsrc%5Etfw">August 23, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



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DAO governance

Understanding futarchy on Solana

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



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I wrote <a href="https://lightspeed-4bed7b.beehiiv.com/p/solana-in-6-charts">two weeks back</a> that SOL does not enjoy the same institutional buy pressure that BTC and ETH do from digital asset treasuries (DATs).



That state of affairs is changing.



The healthcare device company Sharps Technology (STSS) <a href="https://www.prnewswire.com/news-releases/sharps-technology-inc-announces-over-400-million-private-placement-seeking-to-establish-the-largest-solana-digital-asset-treasury-strategy-302537587.html">announced</a> on Sunday that it secured a $400 million private investment structured as a public equity transaction (PIPE) offering to establish a SOL treasury.



That makes Sharps Technology officially the largest Solana DAT to date by announced raise size.



Alice Zhang, co-founder of the <a href="https://blockworks.co/news/jambo-onchain-mobile-network">Jambo</a> Web3 phone, is Sharp’s newly appointed chief investment officer. Her co-founder James Zhang will serve as a strategic advisor.



Then, news broke yesterday that Pantera Capital is planning a $1.25 billion raise for a Solana DAT. It’ll be called “Solana Co.”, <a href="https://www.theinformation.com/articles/crypto-fund-pantera-seeks-raise-1-25-billion-solana-deal">per</a> The Information. The fundraising strategy comprises an initial $500 million equity raise, followed by $750 million in warrants.&nbsp;



Pantera is also an investor in Sharps Technology, and has <a href="https://panteracapital.com/blockchain-letter/dat-value-creation/">deployed</a> more than $300 million on DATs spanning across eight tokens: BTC, ETH, SOL, BNB, TON, HYPE, SUI and ENA.



Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-08-25/galaxy-jump-multicoin-seek-1-billion-for-buying-solana-token?embedded-checkout=true">reported</a> yesterday that the trio of Galaxy Digital, Multicoin Capital and Jump Crypto are also planning to raise approximately $1 billion for a SOL DAT, with Cantor Fitzgerald LP serving as the lead banker for the transaction.



Put together, that’s $2.65 billion in total SOL, or 14,095,744 SOL at today’s price of $188.



Before you get too excited, note that this does not necessarily translate to equivalent spot demand for SOL on open markets. That all depends on how DATs are accumulating SOL.



Are DATs buying SOL off the market, are they purchasing locked SOL in-kind with equity, or are they buying it at a discount? The Sharps <a href="https://www.prnewswire.com/news-releases/sharps-technology-inc-announces-over-400-million-private-placement-seeking-to-establish-the-largest-solana-digital-asset-treasury-strategy-302537587.html">press release</a>, for instance, indicates an arrangement with the Solana Foundation to buy “$50 million of SOL at a 15% discount to a 30-day time-weighted average price.”



On the other hand, purchasing SOL in-kind effectively converts locked SOL holdings into tradable liquidity, and can even potentially contribute to future sell pressure when the resulting equity overhang is sold or redeemed.



The devil’s in the details.



Regardless, $2.65 billion in SOL is fairly significant; that’s about 4.1x more than the SOL holdings (3,431,861) of existing DATs like Upexi (UPXI), DeFi Development Corp (DFDV) and SOL Strategies (CYFRD).



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXceRXw0_phBcCpFYn7Y5zgJK3Dv724mYOPtsKoDbW_d8DLP_mEWVhl8HPLCk_dW-Jm6-xJlWokXRe4-6LcWqlZE35eJHvMkBIxeHp7GR00AcUXaq4cOWFGyTk7NE0CZUrjbAP7pbw?key=NhPrKRh6neYrBS2yjJD26A" alt=""/></figure>



“Solana dats are going to be monstrous and first principles tuned to what makes solana great,” Solana co-founder Raj Gokal <a href="https://x.com/rajgokal/status/1960158597490302998?s=19">tweeted</a>.



Contextualizing the news further, $2.65 billion in SOL is still relatively small compared to the $14.3 billion in ETH that has been stacked by ETH DATs.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdtNLEoDZtDVelTdIZjJnPg4cAViij3tiK4cXU1U70RSzqM9Q8hGhHBjDPcD0HVUJobGw9S6iGL8uuvf9aGDBlshUt69nqikLu24yufEEw4pXXf9VupM_UGMesq86htY7NZOZt5gA?key=NhPrKRh6neYrBS2yjJD26A" alt=""/></figure>



And even smaller compared to the accumulated $80 billion in BTC by BTC DATs:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe-nRbPBg0v6-K7EacRFdWhdNz4WHKuHolm7enKYUrGt1qh60sKR-0rwQZLULrvlokLz-G6RqMTxikTItkBXiyB4ukVsrOBR7JlivuqN4tj3gGG2LRL0sqI8yAe5CI3wYgdmGH76Q?key=NhPrKRh6neYrBS2yjJD26A" alt=""/></figure>



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SOL digital asset treasuries are coming in size

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



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The Solana ecosystem revolves heavily around the aptly named Jupiter protocol, and for good reason.



They’re an ambitious team trying to do damn near everything in DeFi.



In 2021, Jupiter launched a DEX aggregator on Solana, the dominant venue today for routing order flows to DEXs and <a href="https://blockworks.co/news/solanas-proprietary-amms">prop AMMs</a>. Alongside the aggregator, Jupiter founder meow also launched Mercurial DEX, rebranded today as Meteora.



A perps DEX followed in 2023, then a memecoin launchpad in 2024, and then a majority stake <a href="https://blockworks.co/news/jupiter-majority-stake-moonshot">acquisition</a> in the Moonshot memecoin trading platform earlier this year. There’s also the upcoming omnichain network “<a href="https://meow.bio/jupnet.html">JupNet</a>,” which plans to aggregate liquidity across chains.&nbsp;



But all eyes this week are on Jupiter Lend, the superapp’s first formal foray into the Lending vertical.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">jupiter lend public beta coming this week 👀👀👀 devs had a last-minute idea to make it even better, can&#39;t wait to show you all&mdash; Jupiter (🐱, 🐐) (@JupiterExchange) <a href="https://twitter.com/JupiterExchange/status/1958228036555313204?ref_src=twsrc%5Etfw">August 20, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Jupiter’s lending product is built on Fluid’s liquidity/risk engine. If you’ve never heard of Fluid, it’s a protocol that took the Ethereum world by storm over the past year.



To see the promise of Jupiter Lend requires a baseline understanding of how Fluid actually works. It’s not the most straightforward product, but here’s the <a href="https://blockworks.co/news/defi-superapp-competitor-to-aave-uniswap">gist</a>.



Fluid (previously Instadapp) is an integrated application consisting of DEX, lending and borrowing. All three draw from a unified liquidity layer, which enables unique features that just aren’t possible on other DEXs or lending protocols.



For instance, a borrower on Fluid can denominate their debt to serve as liquidity for Fluid DEX (what the team calls “smart debt”), rather than letting it sit idle as posted collateral.



This, in effect, puts a borrower’s debt to “work.” As traders on the DEX side are paying fees to trade, that lets borrowers earn fees to reduce their debt. It’s somewhat unintuitive, for it inverts the logic of how we commonly think of debt as an unproductive asset that needs to be paid down.



This is how Fluid opens up billions of dollars in “TVL” that isn’t actually TVL, at least not in the conventional DeFi sense. Which leads to memes like these:



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeD-OeW5i3Mb0RfbF0-sfWmO04iAlUfag15JjUB1Nv9PbJe3drG1tqWZNLwmpO7B5NxH9gGFg2CDfrDbmYxCdKk4thi6BK75EPHxLYtflMIEI56kJ4DMeRqrIzhUUu_jg-6l1wd?key=oyKFHnWHafLE8mY6xJPfeA" alt="" style="width:671px;height:auto"/></figure>



Fluid also has perhaps one of the most advanced liquidation engines in DeFi. Its borrowing vaults bucket positions into “ticks,” which liquidates positions partially as markets move, rather than in one fell swoop.&nbsp;



Again, Fluid’s tight integration allows liquidations to simply settle as ordinary swaps on its own DEX.



This combo drastically reduces slippage and penalties (~0.1%). And the end result is that it enables abnormally high loan-to-value (LTV) ratios of 90-95% on its lending product. For context, even highly liquid assets like WBTC/WETH have LTVs of 70-85% on Aave.



As a testament to Fluid’s success, its lending has $1.4 billion in active loans since its launch on Ethereum less than a year ago, per Blockworks Research data.



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdBGcx0EQFgjZUbmUK6e7lza9DjxgN5oMfIKeN2nIVeuP08SL4dp_bvQfSQYoDOEi2VW_sVOgZB-lUoYNSXqHmdKMXM5het0ycDcUhkNsQeh8DMyycRQPAgT2AVdjGjTeXo9bXt?key=oyKFHnWHafLE8mY6xJPfeA" alt="" style="width:668px;height:auto"/></figure>



And you can see strong traction on its DEX product too.



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcLRTxoWd7arKoZfXozpSlcyQ4GEjyDlRH-vnYgrimJHpBpioI69b-SA2Ha4p1oI4rC24MlHM29tRHb45W9lCtC-wsawuFeIHVzjKylboFEyoutMHLy9BiRMpqppFcOEsYx5tzJDA?key=oyKFHnWHafLE8mY6xJPfeA" alt="" style="width:677px;height:auto"/></figure>



Jupiter founder meow has a close relationship with the Fluid founders. You can read more about that <a href="https://meow.bio/fluid">here</a>.



It’ll be interesting to see how well Jupiter can replicate Fluid’s success in the SVM world. Kamino has a stronghold on that market, but market leader positions in DeFi are fleeting. Definitely one of the major battles to watch on Solana.



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Jupiter Lend readies for public beta launch this week

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When one thinks of DeFi’s greatest innovations, automated market makers (AMMs) come to mind.



Popularized by early OG teams like Bancor and Uniswap in 2018, AMMs enabled permissionless liquidity provision without the need for professional market makers to manage an order book.



This permissionless structure has immense benefits for bootstrapping markets around illiquid tokens, but it comes with many well-known tradeoffs.&nbsp;



Since liquidity positions and execution is public, LPs are vulnerable to MEV attacks, manifesting in price impact and slippage problems for the end-user.



Protocol designers have tried to tackle these problems in a variety of ways over the years (e.g. Uniswap v3’s concentrated liquidity or dark pools). Others such as Hyperliquid have simply opted for the reliability of the central limit order book (CLOB) design.



In recent months, a wave of new AMM DEXs on Solana has been charting its own path to address these issues.



These DEXs are popularly referred to as prop (short for proprietary) AMMs, or dark AMMs; they include players like HumidFi, SolFi, Tessera, ZeroFi, GoonFi and Obric.



You’ve probably never heard these names, and that’s by design.



Prop AMMs do not use a frontend. They quote prices privately and rely on vault-based liquidity supplied by one proprietary market maker as opposed to external liquidity pools.&nbsp;



By centralizing liquidity provision in the hands of a few, this design choice enables prop AMMs to protect order flow execution from MEV attacks by high-frequency traders that public AMMs are susceptible to.



How then do prop AMMs find users? They simply plug into a DEX aggregator — such as Jupiter or Titan — on the backend, which allows the aggregator to query across DEXs for the best price quotes.



Almost all of prop AMMs’ volumes are routed from DEX aggregators, as per the below chart.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdfh9PlPhK62j0oabljX3Y9b9CMZJbsgM4elHIz1devfa5yzuDFNshf6XM_Vb-BaDPB-xYWkymlWFIT8Gi5n_FT5FUBhsvKeGq44T_jdKMVJmRKTHBERFQfbbqSCEwyzgEe8ohpIA?key=Htjrz4d2NG5fLa1a3iXfvg" alt=""/></figure>



Chris Chung, CEO and co-founder of Titan told me: “Initially, when prop AMMs first launched, you had to be integrated with all of them to even stand a chance of finding the best route due to their dominance. The first three (SolFi, ZeroFi and Obric) had a stranglehold over the market, but standard onchain AMMs could still compete.



“With the influx of many new prop AMMs, the market share of prop AMMs has continued to keep going up, but each successive one has seen less of an impact on a router&#8217;s success vs. its peers.”



<h2 class="wp-block-heading">Prop AMM dominance</h2>



Since January 2025, prop AMM volumes have consistently made up about 13% to 24% of monthly DEX volumes.



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe_FKTLqlXCzEKHrpkK5JJXl6iQj-2mYHUOSVrfhoIr3sjNLA5HRq5waxjI8pXkAAkRz9zGFZTpxEHtaWNUOS-NjtrFGPaXSl1hT7RVY1PVifCVA_TcddlOCYI-G30gbVH-FoMYzg?key=Htjrz4d2NG5fLa1a3iXfvg" alt="" style="width:653px;height:auto"/></figure>



Isolating volumes data down to highly liquid trading pairs, like SOL-stablecoin, brings the growing usage of prop AMMs into clearer view.



For SOL-stablecoin volumes in the last week, prop AMMs are collectively processing ~53% ($7.42 billion) of all DEX volumes, per Blockworks Research data.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc51fptUJGHA9AFk4HqgRhBYrQx6RxDIBcYdBhAMnDxUy531pvhQDQXJc_H7pfMezTL8VZzfDdsVmv6z7Qt7NJ0-JL8RCbKRhODRUx6uIj7Sko6hLPJxu9bgkDNg2kCRMkuuNTb?key=Htjrz4d2NG5fLa1a3iXfvg" alt=""/></figure>



Blockworks Research data shows a similar story emerges on stablecoin pairs — SolFi and Obric together captured ~50% of the $1.1 billion in trading volumes over the last week.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdfrZbR8oFbo0Mu18Bc1mTFK7PIN_jp6z_MPnsq8PWbBzS0Bb6mYdO32qxSdZTigK_kC80wLXvhUg7wbRWYsKYJiG9wmbglmBFcTfqpaPSXmQctk8y-Ok2RV6FeN8MWdK3IGWSb0Q?key=Htjrz4d2NG5fLa1a3iXfvg" alt=""/></figure>



And as expected, illiquid assets like memecoins are still traded on traditional AMMs (there’s a caveat, though: larger memecoins like <a href="https://solscan.io/tx/ai6HWvsU43upmtQ4DUGMmRK83g4P5RX6xz8VkRecZfJPEtiKeSiFLg9FTxdc8XS6PCbWHEwv9Vrs49BrcZ8pUKU?ref=solanatracker.io">POPCAT</a> and <a href="https://solscan.io/tx/5kYPVw38ac5xbiy7sqTZwWD2pn2ESa4RzEfXgW1FeunAX9frxkBF2nhtkhqaZonm7qnkLc9uzjdJHphC8M4jcWeQ?cluster=mainnet">FARTCOIN</a> are showing up on prop AMM routes).



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe043dnm19xm83_03syacFOe769iEubskgCLRUFskPlQn--i84gZoh-9RHHSY4O1sFGDOYuGGCHRfsz6ziNd0jFIlcZUWouUwasIB7JW5ZscQsf2mGo5n6ENKmoA8ovLJvsYr_R?key=Htjrz4d2NG5fLa1a3iXfvg" alt=""/></figure>



Blockworks’ Carlos Gonzalez Campo <a href="https://app.blockworksresearch.com/flashnotes/prop-am-ms-changing-solana-s-market-structure">predicts</a> that tokens will increasingly bifurcate into traditional AMMs vs. prop AMMs based on asset maturity:



“On the one hand, long-tail assets (e.g. new memecoins) will be dominated by traditional AMMs like Raydium and Pump. On the other hand, it appears that prop AMMs like HumidiFi and SolFi will gradually dominate liquid markets (e.g. SOL-USD, stable-to-stable pairs).”



It looks like traditional AMMs will continue to power long-tail speculation and early price discovery as long as there’s demand to gamble on illiquid memecoins.



But for mature assets, liquidity is consolidating around AMMs that deliver tighter spreads and more predictable execution. The dominance of aggregators on Solana is steering its market structure toward a more efficient equilibrium where ideology matters less than fill quality.



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AMMs

Solana’s proprietary AMMs are reshaping liquid asset markets for users

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The decentralized wireless company Helium is planning to funnel 100% of Helium mobile subscriber revenues to HNT token burns, co-founder and CEO Amir Haleem <a href="https://x.com/amirhaleem/status/1957200674539581521">tweeted</a> yesterday.



It’s not clear if Helium plans to buy HNT on the open market or simply burn tokens from its treasury, but the initiative is going into effect “this week, barring any weird logistics,” he <a href="https://x.com/amirhaleem/status/1957214730344624605">said</a>.



In any case, that’s an <a href="https://app.blockworksresearch.com/flashnotes/helium-halving-tailwinds">estimated</a> $2.3 million in monthly gross revenues offchain that otherwise would have gone to Helium’s parent company, Nova Labs, now being redirected to HNT token holders.



HNT is Helium’s native SPL token, which migrated to Solana from its own L1 appchain in April 2023.



When users pay USD to use Helium’s network, it’s swapped under the hood to HNT, which is then burned for a consumable fixed-price token of $0.00001 known as “Data Credits.”



Today, Helium has about <a href="https://world.helium.com/en/network/mobile">1.1 million</a> daily users across 108,850 hotspots.



The majority of Helium’s revenues is driven primarily by WiFi carrier offload, rather than its own mobile virtual network operator (MVNO).&nbsp;



When users of big telcos like AT&amp;T or T-Mobile are near a Helium WiFi spot, they can shift that data onto Helium’s network automatically and pay Helium on a per-demand basis.



This way, major carriers avoid additional CapEx while still managing to improve coverage for customers in hard-to-serve or obscure locations.



Earlier this month, Helium also went through its biennial emission halving, halving annual HNT emissions from 15 million to 7.5 million.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXehCb3TC7b1tPlN4mCnp1nz9rbFuYoKbLj1q3V5pwGT4ge0_YBpqmyaz-fgctD4RW-OLhjO82YBENqd6vYl35HA3eFcxmpqaJElcqmngTOvZwF7OyJy_VaMZI09Ivun7fs-QgR9?key=F1UcsFQTLvYx0-0eewtjyQ" alt=""/><figcaption class="wp-element-caption">Source: <a href="https://app.blockworksresearch.com/flashnotes/helium-halving-tailwinds#top-idea">Blockworks Research</a></figcaption></figure>



Both mechanics in tandem — an emission halving and circulating supply burn — could create a net deflationary effect for the HNT token.



Blockworks’ Nick Carpinito told me: &#8220;Amir&#8217;s announcement creates immediate deflationary pressure on HNT by burning tokens equivalent to Helium Mobile&#8217;s subscriber revenue, which could accelerate the timeline for HNT to become net-deflationary sooner than expected.”&nbsp;



“While we don&#8217;t yet know the specific mechanics (whether Nova Labs will burn from its treasury or make open market purchases, or whether this applies to gross vs. net revenue), this represents a significant step toward integrating Nova Labs&#8217; offchain revenue streams directly into HNT&#8217;s tokenomics as we anticipated in our July analysis.&#8221;



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<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

DePIN

Helium eyes a potential path to deflationary tokenomics

Fundamental insights and behind the scenes perspectives from the industry’s key operators and innovators

Empire

For savvy degens who want to think like researchers and analysts, from Blockworks Research

0xResearch

Investigates the macro landscape as the laws of investing are being rewritten, helping investors adapt to a rapidly changing environment.

Forward Guidance

Detailing Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.

Supply Shock

The Breakdown

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



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How was Solana doing in August? Let’s unpack some numbers.



About $78 million REV (fees + tips) was paid to transact on Solana in August. In 2025, that was Solana’s third-lowest REV month.



On a year-over-year basis, Solana’s REV saw about 24% growth.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="967" height="465" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-29.png" alt="" class="wp-image-107158" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-29.png?w=967 967w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-29.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-29.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-29.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-29.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-29.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-29.png?w=80 80w" sizes="auto, (max-width: 967px) 100vw, 967px" /></figure>



Total stablecoin supply on Solana has stagnated at the $10–$13 billion range since March.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="958" height="499" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-28.png" alt="" class="wp-image-107157" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-28.png?w=958 958w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-28.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-28.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-28.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-28.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-28.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-28.png?w=80 80w" sizes="auto, (max-width: 958px) 100vw, 958px" /></figure>



Solana is far from dead, but these numbers certainly don&#8217;t scream “growth on all cylinders” as they did in early 2025.



Application revenues tell a more optimistic story. Solana apps generated $148 million in August, a 93% increase on a YoY basis.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="984" height="498" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png" alt="" class="wp-image-107162" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=984 984w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=80 80w" sizes="auto, (max-width: 984px) 100vw, 984px" /></figure>



I want to say the “fat app thesis,” but in Solana’s case, it’s probably more accurate to call it the “fat memecoin app” thesis. Broken down, the bulk of revenue-generating applications belong to the trading tools and memecoin categories, namely Axiom, Pump, Phantom, LetsBonk, Photon, etc.



In recent months, Solana has tried to position itself as the go-to venue for trading crypto assets, encapsulated by the “<a href="https://blockworks.co/news/solana-market-microstructure-ace">Internet Capital Markets</a>” meme.



The data seems to affirm that narrative. The below chart shows overall spot DEX volumes broken down for major L1 chains.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="975" height="452" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-31.png" alt="" class="wp-image-107161" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-31.png?w=975 975w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-31.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-31.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-31.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-31.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-31.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-31.png?w=80 80w" sizes="auto, (max-width: 975px) 100vw, 975px" /></figure>



BNB Chain claims the top spot with $214 billion in volumes, but those numbers are inflated by the ongoing “Alpha” incentive <a href="https://www.binance.com/en/support/announcement/detail/07e8c812091a49ae9eefaeabe3c35f53">campaign</a> that’s rewarding wash trading. When adjusted to exclude Alpha tokens, BNB Chain’s August volumes fall to an estimated <a href="https://dune.com/queries/5728540/9297734?category=abstraction&amp;namespace=dex&amp;id=dex.trades">$138 billion</a>.



That puts Solana in first place at $153 billion, with Ethereum in second at $143 billion.



Zooming into Solana DEX volumes, no-name AMMs (prop AMMs) are carving out a significant chunk of market share, about $47 billion in August. These AMMs use one single market-maker for liquidity provision, and route users by plugging into DEX aggregators on the backend (read more <a href="https://blockworks.co/news/solanas-proprietary-amms">here</a>).



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="793" height="456" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-33.png" alt="" class="wp-image-107163" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-33.png?w=793 793w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-33.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-33.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-33.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-33.png?w=454 454w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-33.png?w=381 381w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-33.png?w=80 80w" sizes="auto, (max-width: 793px) 100vw, 793px" /></figure>



Now let’s look at perps volumes. The two dominant perps exchanges on Solana are Jupiter Perps and Drift, with 4.9% and 3.3% volume market shares, respectively. Unsurprisingly, they’re eclipsed by Hyperliquid (71.6% market share) ,which is averaging about $10.4 billion in daily volumes over the last 90 days.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="984" height="498" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png" alt="" class="wp-image-107164" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=984 984w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-34.png?w=80 80w" sizes="auto, (max-width: 984px) 100vw, 984px" /></figure>



Solana’s slowing growth can be attributed to Hyperliquid’s dominance over the past four quarters, Blockworks Research’s Ryan Connor told me.



“Making Drift (or something similar) work is critical to Solana’s success.”



Drift isn’t asleep at the wheel, though. The perps DEX did some of its best lifetime volumes in August, thanks to unique features like cross-margin capabilities.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1003" height="456" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-32.png" alt="" class="wp-image-107160" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-32.png?w=1003 1003w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-32.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-32.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-32.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-32.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-32.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-32.png?w=80 80w" sizes="auto, (max-width: 1003px) 100vw, 1003px" /></figure>



Finally, you can’t talk Solana without talking memecoins.&nbsp;



After a brief two to three weeks during which Pump appeared to lose its leading position, the platform has decisively regained its dominance over competitors like LetsBonk and Heaven. As of the last week, 148K tokens were launched on Pump’s launchpad — about 89% of total tokens launched.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="970" height="453" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-30.png" alt="" class="wp-image-107159" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-30.png?w=970 970w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-30.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-30.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-30.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-30.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-30.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-30.png?w=80 80w" sizes="auto, (max-width: 970px) 100vw, 970px" /></figure>



Solana’s largest tailwinds in the near future may have nothing to do with onchain products.



Last week saw <a href="https://lightspeed-4bed7b.beehiiv.com/p/sol-dats-are-here">reports</a> of three new SOL treasury companies coming to market with about $2.65 billion in total raised.&nbsp;



On the horizon is also a likely October approval of existing Solana ETF applications.



The new ETFs “will be more tax-efficient, have better distribution (from Fidelity, Bitwise, etc.) than REX-Osprey, and [will] likely include in-kind creations and redemptions, as well as support for staking,” wrote Carlos Gonzalez Campo in a Blockworks Research <a href="https://app.blockworksresearch.com/flashnotes/sol-coming-tailwinds">report</a>.



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Solana in 8 charts: August edition

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Would you rather invest in the business model of a cinema or Netflix?



A theater needs real estate, seats, projectors and staff. When it’s full, you top out at ~200 paying customers per show.&nbsp;



Netflix beams the same video to its first customer and its millionth customer with basically the same operational cost.



That zero marginal cost is the intuition behind why investing in tech is attractive. Once you’ve built the product, each additional user generates a high gross margin, which produces sky-high multiples.



Now, that mental model — of zero marginal cost + uncapped demand — is being stress-tested.



In AI, for instance, serving the next user is not free. Your “software” rides on someone else’s model (OpenAI, Anthropic, Google, etc). Each user interaction burns inference tokens, which in turn costs real compute, power and data center capacity.&nbsp;



Even as unit prices per AI token trend down, token consumption per task rises, so the bill goes up.



For a few years, Anthropic aggressively courted developers with enterprise-friendly pricing mechanics (e.g. prompt caching, batch discounts).&nbsp;



That strategy worked! In enterprise usage share, Anthropic has overtaken OpenAI — 32% vs. OpenAI’s 25% by usage.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1303" height="581" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=1024&amp;h=1024" alt="" class="wp-image-107077" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=1303 1303w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-19.png?w=80 80w" sizes="auto, (max-width: 1303px) 100vw, 1303px" /></figure>



OpenAI lately responded by slashing prices. GPT-5’s API recently launched with $1.25/M input and $10/M output tokens, explicitly leaning into coding and agent use cases.



That’s dramatically cheaper than Anthropic’s Claude Opus’ prices at $75/M output tokens ($15/M input)!



With that, AI wrapper companies like <a href="https://www.youtube.com/watch?v=UbFtbiR7PrA">Lovable</a>, <a href="https://cursor.com/en/blog/gpt-5">Cursor</a>, <a href="https://www.linkedin.com/posts/boltdotnew_we-are-excited-to-launch-gpt-5-into-bolt-activity-7359288231617581056-XVpa/">Bolt</a> and more have quickly moved to integrate GPT-5.



&#8220;For the first time in SaaS history, the marginal cost of adding on a user is not close to zero,&#8221; said Amanda Huang of Bain Capital Ventures, per <a href="https://pitchbook.com/news/articles/how-long-can-ai-agents-like-cursor-keep-burning-cash-investors-are-divided?utm_medium=newsletter&amp;utm_source=daily_pitch&amp;sourceType=NEWSLETTER">Pitchbook</a>.



Crypto often looks like software economics. Once a chain is live, serving the marginal user is close to free.



That is theoretically true, but not necessarily so in practice.&nbsp;



Because while validators (proof-of-stake) incur zero marginal costs to produce the next block, when demand spikes, users want to pay to jump the queue.



That’s why MEV (maximal extractable value) persists. Being first in line is valuable, and blockchain networks explicitly price that preference.&nbsp;



On Ethereum, EIP-1559 formalized congestion pricing via a base fee plus optional tip. On Solana, “priority fees” exist precisely because blockspace is scarce at the margin — even if the average transaction is cheap.



Crypto investors like Multicoin’s Kyle Samani have explicitly <a href="https://x.com/KyleSamani/status/1838718619339100351">argued</a> in favor of valuing blockchains solely on MEV.



In the month of August, Solana did $68 million in MEV.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="686" height="486" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-17.png" alt="" class="wp-image-107075" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-17.png?w=686 686w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-17.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-17.png?w=363 363w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-17.png?w=368 368w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-17.png?w=309 309w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-17.png?w=80 80w" sizes="auto, (max-width: 686px) 100vw, 686px" /></figure>



Across the same month, Ethereum saw $32.5 million in MEV.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="691" height="524" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-18.png" alt="" class="wp-image-107076" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-18.png?w=691 691w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-18.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-18.png?w=339 339w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-18.png?w=344 344w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-18.png?w=289 289w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-18.png?w=80 80w" sizes="auto, (max-width: 691px) 100vw, 691px" /></figure>



Classic SaaS multiples assume high, stable gross margins and flat marginal costs.&nbsp;



But in both AI and crypto, that logic can be sometimes inverted. In crypto, even with low nominal fees, blockspace scarcity created pricing power (priority fees, MEV).&nbsp;



And in AI, “wrapper” applications that pass through model costs behave more like usage-metered utilities. Margins compress unless teams negotiate discounted batched rates.



What does this mean for the players involved? I guess you could just raise more venture money to subsidize usage.



Anthropic, for example, yesterday <a href="https://x.com/AnthropicAI/status/1962909472017281518">raised</a> $13 billion at a whopping $183 billion valuation to compete with OpenAI.



L1/L2 chains have also raised hundreds of millions historically, but you don’t need that much money to build a chain. Similarly to Anthropic, the money is merely a competitive weapon to fund subsidies, incentives and liquidity programs.



In both arenas, the bulk of venture dollars flow to subsidies aimed at entrenching network effects.&nbsp;



In the near term, consumers benefit from lower prices and better service. Enjoy it while it lasts.



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<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



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Is zero-marginal-cost tech no more?

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed">subscribe</a>.



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Reflect Money announced today a $3.75 million seed round led by a16z crypto’s CSX accelerator, with participation from Solana Ventures, Equilibrium, BigBrain Holdings and Colosseum.&nbsp;



Reflect <a href="https://solana.com/pl/news/solana-radar-winners#%F0%9F%8F%86-grand-champion">won</a> Grand Champion in Colosseum’s 2024 Solana Radar hackathon.



The new capital will fund a “software-as-a-stablecoin” infrastructure that lets any app issue yield-bearing dollars without lockups or operational complexity, the team told Blockworks.



Reflect’s pitch is straightforward: Idle stablecoin balances should be put into productive DeFi yield strategies.



“Every idle asset represents dead capital…which should be earning while you sleep, while you trade, while it sits in your wallet,” Reflect CEO <a href="https://x.com/0xnic0?lang=en">Nico James</a> said.



Reflect protocol tokenizes onchain DeFi strategies — delta-neutral basis trades, lending, etc. — then turns deposited USDC balances into a yield-bearing “USDC+” while remaining fully liquid.



Stablecoins will be non-custodial and be minted and redeemed at will.&nbsp;



Think Morpho white-label vaults meet <a href="https://blockworks.co/news/noble-yield-bearing-stablecoin">M^0</a>’s stablecoin-as-a-service. Or just Ethena.



DeFi strategies are executed by smart contracts and are limited to the team’s own curated strategies for now. Curated DeFi strategies will be open to developers subject to governance approval, the team told me.



In short, Reflect empowers any developer to become its own neobank.



As part of risk management, each strategy is backed by an autonomous, onchain insurance liquidity pool.&nbsp;



This “Global Insurance” pool will leverage Jito restaked assets for liquidity, an approach <a href="https://docs.reflect.money/risk-management/notice#more-information-on-global-insurance">described</a> as akin to FSCS-like insurance for traditional banks.



The insurance pool also allows for slippage-free, MEV-free and feeless rebalancing across strategies.



Reflect is targeting an early-September mainnet launch that will support USDC on Solana.



“Stablecoins are a ~$280 billion market earning zero yield,” James said. “We’re about to change that.”&nbsp;



If it works, “idle dollars” on Solana might become an endangered species.



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>