SMITH + CROWNGLOSSARYABOUTCHECK OUT SCI BETATHE WORLD'S LEADING DIGITAL ASSET RESEARCHSTELLAR Microsoft announced last week via a blog post that it will be discontinuing its blockchain-as-a-service offering, Azure. It is requesting that current users transfer their data of off the platform before September 9th, 2021. Microsoft recommends that uses migrate to Consensys’ Quorum Blockchain Service. Sources: ABOUT - SMITH + CROWN Blockchain technology has the potential to reshape economic and social structures. Smith + Crown’s mission is to work with exceptional organization, applying our expertise so to build impactful infrastructure while moving the industry forward. Our history of and commitment to developing the highest quality industry intelligence and

analysis

RESEARCH ARCHIVE

Research. Understanding how businesses, economies, and social systems will function in the near future requires knowledge of cryptoeconomic systems’ potential and limits. Smith + Crown is the world’s leading blockchain research group, providing free industry intelligence and analysis on key networks and topics. Ray Dalio

Changes Sentiment

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency ADVISORY - SMITH + CROWN Cryptoeconomics and blockchain-based systems present incredible and disruptive opportunities. Since 2013, Smith + Crown has been developing and applying research on the design of these systems with organizations of every size, from around the world. The key to the successful design of a blockchain-based network is a holistic

assessment of the

JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

INTRODUCTION TO TOKEN DISTRIBUTION MECHANISMS Distribution is a Strategic Decision. In the vast majority of protocols supporting digital assets, the digital asset itself is intentionally designed as something of value. Hence, protocol developers need to make decisions about how that asset gets distributed, both initially and on an ongoing basis. TRUEBIT - SMITH + CROWNSEE MORE ON SMITHANDCROWN.COM PROOF OF IMPORTANCE (POI) Proof-of-Importance (PoI) is a blockchain consensus mechanism introduced by NEM.PoI reward users that actively transact on the network, building on proof-of-stake.With PoI, nodes need to vest an amount of currency to be eligible to create blocks and are selected to create a block roughly in proportion to a score quantifying their contribution to the network. NOTHING-AT-STAKE PROBLEM The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks.This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork to mine on. SMITH + CROWNGLOSSARYABOUTCHECK OUT SCI BETATHE WORLD'S LEADING DIGITAL ASSET RESEARCHSTELLAR Microsoft announced last week via a blog post that it will be discontinuing its blockchain-as-a-service offering, Azure. It is requesting that current users transfer their data of off the platform before September 9th, 2021. Microsoft recommends that uses migrate to Consensys’ Quorum Blockchain Service. Sources: ABOUT - SMITH + CROWN Blockchain technology has the potential to reshape economic and social structures. Smith + Crown’s mission is to work with exceptional organization, applying our expertise so to build impactful infrastructure while moving the industry forward. Our history of and commitment to developing the highest quality industry intelligence and

analysis

RESEARCH ARCHIVE

Research. Understanding how businesses, economies, and social systems will function in the near future requires knowledge of cryptoeconomic systems’ potential and limits. Smith + Crown is the world’s leading blockchain research group, providing free industry intelligence and analysis on key networks and topics. Ray Dalio

Changes Sentiment

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency ADVISORY - SMITH + CROWN Cryptoeconomics and blockchain-based systems present incredible and disruptive opportunities. Since 2013, Smith + Crown has been developing and applying research on the design of these systems with organizations of every size, from around the world. The key to the successful design of a blockchain-based network is a holistic

assessment of the

JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

INTRODUCTION TO TOKEN DISTRIBUTION MECHANISMS Distribution is a Strategic Decision. In the vast majority of protocols supporting digital assets, the digital asset itself is intentionally designed as something of value. Hence, protocol developers need to make decisions about how that asset gets distributed, both initially and on an ongoing basis. TRUEBIT - SMITH + CROWNSEE MORE ON SMITHANDCROWN.COM PROOF OF IMPORTANCE (POI) Proof-of-Importance (PoI) is a blockchain consensus mechanism introduced by NEM.PoI reward users that actively transact on the network, building on proof-of-stake.With PoI, nodes need to vest an amount of currency to be eligible to create blocks and are selected to create a block roughly in proportion to a score quantifying their contribution to the network. NOTHING-AT-STAKE PROBLEM The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks.This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork to mine on.

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

GLOSSARY ARCHIVE

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology. View Methodology # COSMOS - SMITH + CROWN Cosmos Hub is a Proof of Stake blockchain that aims to be interoperable with any blockchain, communicate with any programming language, and support any tokenized asset. If Cosmos’ ambitions come true, then Cosmos Hub will be just one of many blockchains within the broader Cosmos Network. Cosmos Network aims to enable data and value transfers between different blockchains, TZERO - SMITH + CROWN tZERO first emerged as a subsidiary of online retailer Overstock, through Overstock’s blockchain investment arm Medici Ventures, and was initially led by longtime blockchain proponent and Overstock CEO Patrick Byrne.Medici owns 80% of tZERO. Overstock conducted the first SEC-registered offering of digital securities using blockchain technology, trading Overstock Series A Preferred Stock in

ACCESS TOKENS

Access tokens confer holders access to key premium features on a platform. The token resembles a tradable membership, in which members (token holders) get access to exclusive experiences and still have an asset they can resell to a future member. DEVELOPER ACTIVITY AS SIGNAL A report published by Delphi Digital, an independent crypto research firm, finds that, for low market cap projects, high developer activity correlates with token price growth; “Low market cap projects which went onto achieve greater than 10x price growth had on average 2.5 times more daily active developers and 3.5 times more daily commits than projects with negative returns.”

GOVERNANCE TOKENS

Governance tokens confer holders the power to influence decisions concerning the core protocol, product or feature roadmap, hiring and staffing, and changes to governance parameters. All software needs mechanisms for being updated or patched. Unforeseen vulnerabilities

might be found.

UNSPENT TRANSACTION OUTPUTS (UTXO) Unspent Transaction Outputs (UTXO) Bitcoin, and many protocols based on it, store data about transactions and user balances in the form of unspent transaction outputs, which are a list of “unspent” Bitcoin amounts that have been sent to a user, but have not yet been sent from him/her. The sum of these outputs is the user’s total balance. RAY DALIO CHANGES SENTIMENT TOWARDS BITCOIN Ray Dalio Changes Sentiment Towards Bitcoin. In a recent article, supported by an auxiliary research report, Ray Dalio, Co-Chairman & Co-Chief Investment Officer of Bridgewater Associates, articulates his current opinion on Bitcoin’s role as an investment vehicle and its potential to serve as a ‘storehold of wealth’ within investors SMITH + CROWNGLOSSARYABOUTCHECK OUT SCI BETATHE WORLD'S LEADING DIGITAL ASSET RESEARCHSTELLAR Microsoft announced last week via a blog post that it will be discontinuing its blockchain-as-a-service offering, Azure. It is requesting that current users transfer their data of off the platform before September 9th, 2021. Microsoft recommends that uses migrate to Consensys’ Quorum Blockchain Service. Sources: ABOUT - SMITH + CROWN Blockchain technology has the potential to reshape economic and social structures. Smith + Crown’s mission is to work with exceptional organization, applying our expertise so to build impactful infrastructure while moving the industry forward. Our history of and commitment to developing the highest quality industry intelligence and

analysis

RESEARCH ARCHIVE

Research. Understanding how businesses, economies, and social systems will function in the near future requires knowledge of cryptoeconomic systems’ potential and limits. Smith + Crown is the world’s leading blockchain research group, providing free industry intelligence and analysis on key networks and topics. Ray Dalio

Changes Sentiment

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency ADVISORY - SMITH + CROWN Cryptoeconomics and blockchain-based systems present incredible and disruptive opportunities. Since 2013, Smith + Crown has been developing and applying research on the design of these systems with organizations of every size, from around the world. The key to the successful design of a blockchain-based network is a holistic

assessment of the

JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

INTRODUCTION TO TOKEN DISTRIBUTION MECHANISMS Distribution is a Strategic Decision. In the vast majority of protocols supporting digital assets, the digital asset itself is intentionally designed as something of value. Hence, protocol developers need to make decisions about how that asset gets distributed, both initially and on an ongoing basis. TRUEBIT - SMITH + CROWNSEE MORE ON SMITHANDCROWN.COM PROOF OF IMPORTANCE (POI) Proof-of-Importance (PoI) is a blockchain consensus mechanism introduced by NEM.PoI reward users that actively transact on the network, building on proof-of-stake.With PoI, nodes need to vest an amount of currency to be eligible to create blocks and are selected to create a block roughly in proportion to a score quantifying their contribution to the network. NOTHING-AT-STAKE PROBLEM The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks.This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork to mine on. SMITH + CROWNGLOSSARYABOUTCHECK OUT SCI BETATHE WORLD'S LEADING DIGITAL ASSET RESEARCHSTELLAR Microsoft announced last week via a blog post that it will be discontinuing its blockchain-as-a-service offering, Azure. It is requesting that current users transfer their data of off the platform before September 9th, 2021. Microsoft recommends that uses migrate to Consensys’ Quorum Blockchain Service. Sources: ABOUT - SMITH + CROWN Blockchain technology has the potential to reshape economic and social structures. Smith + Crown’s mission is to work with exceptional organization, applying our expertise so to build impactful infrastructure while moving the industry forward. Our history of and commitment to developing the highest quality industry intelligence and

analysis

RESEARCH ARCHIVE

Research. Understanding how businesses, economies, and social systems will function in the near future requires knowledge of cryptoeconomic systems’ potential and limits. Smith + Crown is the world’s leading blockchain research group, providing free industry intelligence and analysis on key networks and topics. Ray Dalio

Changes Sentiment

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency ADVISORY - SMITH + CROWN Cryptoeconomics and blockchain-based systems present incredible and disruptive opportunities. Since 2013, Smith + Crown has been developing and applying research on the design of these systems with organizations of every size, from around the world. The key to the successful design of a blockchain-based network is a holistic

assessment of the

JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

INTRODUCTION TO TOKEN DISTRIBUTION MECHANISMS Distribution is a Strategic Decision. In the vast majority of protocols supporting digital assets, the digital asset itself is intentionally designed as something of value. Hence, protocol developers need to make decisions about how that asset gets distributed, both initially and on an ongoing basis. TRUEBIT - SMITH + CROWNSEE MORE ON SMITHANDCROWN.COM PROOF OF IMPORTANCE (POI) Proof-of-Importance (PoI) is a blockchain consensus mechanism introduced by NEM.PoI reward users that actively transact on the network, building on proof-of-stake.With PoI, nodes need to vest an amount of currency to be eligible to create blocks and are selected to create a block roughly in proportion to a score quantifying their contribution to the network. NOTHING-AT-STAKE PROBLEM The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks.This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork to mine on.

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

GLOSSARY ARCHIVE

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology. View Methodology # COSMOS - SMITH + CROWN Cosmos Hub is a Proof of Stake blockchain that aims to be interoperable with any blockchain, communicate with any programming language, and support any tokenized asset. If Cosmos’ ambitions come true, then Cosmos Hub will be just one of many blockchains within the broader Cosmos Network. Cosmos Network aims to enable data and value transfers between different blockchains, TZERO - SMITH + CROWN tZERO first emerged as a subsidiary of online retailer Overstock, through Overstock’s blockchain investment arm Medici Ventures, and was initially led by longtime blockchain proponent and Overstock CEO Patrick Byrne.Medici owns 80% of tZERO. Overstock conducted the first SEC-registered offering of digital securities using blockchain technology, trading Overstock Series A Preferred Stock in

ACCESS TOKENS

Access tokens confer holders access to key premium features on a platform. The token resembles a tradable membership, in which members (token holders) get access to exclusive experiences and still have an asset they can resell to a future member. DEVELOPER ACTIVITY AS SIGNAL A report published by Delphi Digital, an independent crypto research firm, finds that, for low market cap projects, high developer activity correlates with token price growth; “Low market cap projects which went onto achieve greater than 10x price growth had on average 2.5 times more daily active developers and 3.5 times more daily commits than projects with negative returns.”

GOVERNANCE TOKENS

Governance tokens confer holders the power to influence decisions concerning the core protocol, product or feature roadmap, hiring and staffing, and changes to governance parameters. All software needs mechanisms for being updated or patched. Unforeseen vulnerabilities

might be found.

UNSPENT TRANSACTION OUTPUTS (UTXO) Unspent Transaction Outputs (UTXO) Bitcoin, and many protocols based on it, store data about transactions and user balances in the form of unspent transaction outputs, which are a list of “unspent” Bitcoin amounts that have been sent to a user, but have not yet been sent from him/her. The sum of these outputs is the user’s total balance. RAY DALIO CHANGES SENTIMENT TOWARDS BITCOIN Ray Dalio Changes Sentiment Towards Bitcoin. In a recent article, supported by an auxiliary research report, Ray Dalio, Co-Chairman & Co-Chief Investment Officer of Bridgewater Associates, articulates his current opinion on Bitcoin’s role as an investment vehicle and its potential to serve as a ‘storehold of wealth’ within investors SMITH + CROWNGLOSSARYABOUTCHECK OUT SCI BETATHE WORLD'S LEADING DIGITAL ASSET RESEARCHSTELLAR Microsoft announced last week via a blog post that it will be discontinuing its blockchain-as-a-service offering, Azure. It is requesting that current users transfer their data of off the platform before September 9th, 2021. Microsoft recommends that uses migrate to Consensys’ Quorum Blockchain Service. Sources: ABOUT - SMITH + CROWN Blockchain technology has the potential to reshape economic and social structures. Smith + Crown’s mission is to work with exceptional organization, applying our expertise so to build impactful infrastructure while moving the industry forward. Our history of and commitment to developing the highest quality industry intelligence and

analysis

RESEARCH ARCHIVE

Research. Understanding how businesses, economies, and social systems will function in the near future requires knowledge of cryptoeconomic systems’ potential and limits. Smith + Crown is the world’s leading blockchain research group, providing free industry intelligence and analysis on key networks and topics. Ray Dalio

Changes Sentiment

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency ADVISORY - SMITH + CROWN Cryptoeconomics and blockchain-based systems present incredible and disruptive opportunities. Since 2013, Smith + Crown has been developing and applying research on the design of these systems with organizations of every size, from around the world. The key to the successful design of a blockchain-based network is a holistic

assessment of the

JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

INTRODUCTION TO TOKEN DISTRIBUTION MECHANISMS Distribution is a Strategic Decision. In the vast majority of protocols supporting digital assets, the digital asset itself is intentionally designed as something of value. Hence, protocol developers need to make decisions about how that asset gets distributed, both initially and on an ongoing basis. TRUEBIT - SMITH + CROWNSEE MORE ON SMITHANDCROWN.COM

GLOSSARY ARCHIVE

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology. View Methodology # PROOF OF IMPORTANCE (POI) Proof-of-Importance (PoI) is a blockchain consensus mechanism introduced by NEM.PoI reward users that actively transact on the network, building on proof-of-stake.With PoI, nodes need to vest an amount of currency to be eligible to create blocks and are selected to create a block roughly in proportion to a score quantifying their contribution to the network. SMITH + CROWNGLOSSARYABOUTCHECK OUT SCI BETATHE WORLD'S LEADING DIGITAL ASSET RESEARCHSTELLAR Microsoft announced last week via a blog post that it will be discontinuing its blockchain-as-a-service offering, Azure. It is requesting that current users transfer their data of off the platform before September 9th, 2021. Microsoft recommends that uses migrate to Consensys’ Quorum Blockchain Service. Sources: ABOUT - SMITH + CROWN Blockchain technology has the potential to reshape economic and social structures. Smith + Crown’s mission is to work with exceptional organization, applying our expertise so to build impactful infrastructure while moving the industry forward. Our history of and commitment to developing the highest quality industry intelligence and

analysis

RESEARCH ARCHIVE

Research. Understanding how businesses, economies, and social systems will function in the near future requires knowledge of cryptoeconomic systems’ potential and limits. Smith + Crown is the world’s leading blockchain research group, providing free industry intelligence and analysis on key networks and topics. Ray Dalio

Changes Sentiment

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency ADVISORY - SMITH + CROWN Cryptoeconomics and blockchain-based systems present incredible and disruptive opportunities. Since 2013, Smith + Crown has been developing and applying research on the design of these systems with organizations of every size, from around the world. The key to the successful design of a blockchain-based network is a holistic

assessment of the

JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

INTRODUCTION TO TOKEN DISTRIBUTION MECHANISMS Distribution is a Strategic Decision. In the vast majority of protocols supporting digital assets, the digital asset itself is intentionally designed as something of value. Hence, protocol developers need to make decisions about how that asset gets distributed, both initially and on an ongoing basis. TRUEBIT - SMITH + CROWNSEE MORE ON SMITHANDCROWN.COM

GLOSSARY ARCHIVE

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology. View Methodology # PROOF OF IMPORTANCE (POI) Proof-of-Importance (PoI) is a blockchain consensus mechanism introduced by NEM.PoI reward users that actively transact on the network, building on proof-of-stake.With PoI, nodes need to vest an amount of currency to be eligible to create blocks and are selected to create a block roughly in proportion to a score quantifying their contribution to the network.

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency

METHODOLOGY

Smith + Crown’s conception of ‘good inquiry’ informs these methods, which, in particular, are designed to: Minimize personal bias. Reflect experts’ collective understanding of the industry’s current state. Be responsive to reasons and evidence. Remain open to oversight, correction, and rational revision.

GLOSSARY ARCHIVE

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology. View Methodology # NUCYPHER - SMITH + CROWN NuCypher is a decentralized key management system (KMS) that provides encryption and cryptographic access controls without reliance on a centralized service provider. NuCypher aims to provide a security infrastructure layer for decentralized applications running on public blockchains, similar to the way web traffic is secured on the Internet.By removing the need for a trusted centralized NOTHING-AT-STAKE PROBLEM The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks.This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork to mine on.

GOVERNANCE TOKENS

Governance tokens confer holders the power to influence decisions concerning the core protocol, product or feature roadmap, hiring and staffing, and changes to governance parameters. All software needs mechanisms for being updated or patched. Unforeseen vulnerabilities

might be found.

REVENUE-SHARING TOKENS Revenue-sharing tokens confer their owners a right to a portion of revenues or fees generated on or by the host platform. This could refer to on-chain transactions—whenever the network performs an action, a small fee is extracted and ultimately distributed to token

holders.

VERIFIER'S DILEMMA

The Verifier’s Dilemma results from the lack of incentives for verifying and storing records of new transactions in Proof-of-Work consensus protocols, such as Bitcoin’s. Such protocols assert that miners should verify new blocks and keep a record of the blockchain without compensation, doing so only to maintain the integrity of the network on which they theoretically rely for block rewards. TOKEN FUNCTIONS OVERVIEW: VITAL CONSIDERATIONS IN Token function is a key component of cryptoeconomic design; examining token function is to study how tokens accrue or confer different forms of value to those who hold it, so as to anticipate how the token will motivate different communities of end

SMITHANDCROWN.COM

smithandcrown.com

SMITH + CROWNGLOSSARYABOUTCHECK OUT SCI BETATHE WORLD'S LEADING DIGITAL ASSET RESEARCHSTELLAR Microsoft announced last week via a blog post that it will be discontinuing its blockchain-as-a-service offering, Azure. It is requesting that current users transfer their data of off the platform before September 9th, 2021. Microsoft recommends that uses migrate to Consensys’ Quorum Blockchain Service. Sources: ABOUT - SMITH + CROWN Blockchain technology has the potential to reshape economic and social structures. Smith + Crown’s mission is to work with exceptional organization, applying our expertise so to build impactful infrastructure while moving the industry forward. Our history of and commitment to developing the highest quality industry intelligence and

analysis

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency ADVISORY - SMITH + CROWN Cryptoeconomics and blockchain-based systems present incredible and disruptive opportunities. Since 2013, Smith + Crown has been developing and applying research on the design of these systems with organizations of every size, from around the world. The key to the successful design of a blockchain-based network is a holistic

assessment of the

JOBS - SMITH + CROWNMATT SMITH CROWNKAREN SMITH 1968 2020SMITH CROWN SLCSMITH CROWN UTAHMATT SMITH GAME OF THRONES Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

GLOSSARY ARCHIVE

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology. View Methodology # TRUEBIT - SMITH + CROWNSEE MORE ON SMITHANDCROWN.COM INTRODUCTION TO TOKEN DISTRIBUTION MECHANISMS Distribution is a Strategic Decision. In the vast majority of protocols supporting digital assets, the digital asset itself is intentionally designed as something of value. Hence, protocol developers need to make decisions about how that asset gets distributed, both initially and on an ongoing basis. NOTHING-AT-STAKE PROBLEM The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks.This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork to mine on. REVENUE-SHARING TOKENS Revenue-sharing tokens confer their owners a right to a portion of revenues or fees generated on or by the host platform. This could refer to on-chain transactions—whenever the network performs an action, a small fee is extracted and ultimately distributed to token

holders.

SMITH + CROWNGLOSSARYABOUTCHECK OUT SCI BETATHE WORLD'S LEADING DIGITAL ASSET RESEARCHSTELLAR Microsoft announced last week via a blog post that it will be discontinuing its blockchain-as-a-service offering, Azure. It is requesting that current users transfer their data of off the platform before September 9th, 2021. Microsoft recommends that uses migrate to Consensys’ Quorum Blockchain Service. Sources: ABOUT - SMITH + CROWN Blockchain technology has the potential to reshape economic and social structures. Smith + Crown’s mission is to work with exceptional organization, applying our expertise so to build impactful infrastructure while moving the industry forward. Our history of and commitment to developing the highest quality industry intelligence and

analysis

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency ADVISORY - SMITH + CROWN Cryptoeconomics and blockchain-based systems present incredible and disruptive opportunities. Since 2013, Smith + Crown has been developing and applying research on the design of these systems with organizations of every size, from around the world. The key to the successful design of a blockchain-based network is a holistic

assessment of the

JOBS - SMITH + CROWNMATT SMITH CROWNKAREN SMITH 1968 2020SMITH CROWN SLCSMITH CROWN UTAHMATT SMITH GAME OF THRONES Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

GLOSSARY ARCHIVE

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology. View Methodology # TRUEBIT - SMITH + CROWNSEE MORE ON SMITHANDCROWN.COM INTRODUCTION TO TOKEN DISTRIBUTION MECHANISMS Distribution is a Strategic Decision. In the vast majority of protocols supporting digital assets, the digital asset itself is intentionally designed as something of value. Hence, protocol developers need to make decisions about how that asset gets distributed, both initially and on an ongoing basis. NOTHING-AT-STAKE PROBLEM The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks.This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork to mine on. REVENUE-SHARING TOKENS Revenue-sharing tokens confer their owners a right to a portion of revenues or fees generated on or by the host platform. This could refer to on-chain transactions—whenever the network performs an action, a small fee is extracted and ultimately distributed to token

holders.

BRIEFINGS ARCHIVE

BRIEFINGS. Smith + Crown’s summary of important news across the industry. May 26, 2021. Figure raises $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency JOBS - SMITH + CROWN Jobs. Smith + Crown is the world’s leading blockchain research organization and is focused on the development and application of research, intelligence, analysis and data across the breadth of the blockchain space. Our passion and unique expertise lies in the understanding, design, and application of cryptoeconomic systems

across a wide array

KORBIT LAUNCHES NFT MARKETPLACE. South Korea-based cryptoasset exchange Korbit has launched an NFT trading platform. The marketplace will initially only support Ethereum-based non-fungible assets. The platform will also enable NFT creation and primary auction functionality. CIRCLE RAISES $440M. USDC issuer Circle has raised $440M in its latest funding round, which included participation from Fidelity, FTX, Digital Currency Group, and Marshall Wace. The firm is reportedly considering a special purpose acquisition vehicle deal, with a likely target valuation of $4B.

LITHIUM RAISES $5M.

Lithium Finance has raised $5M in its latest funding round. The round was led by Pantera Capital and VC Hashed, with participation from Alameda Research, Huobi Ventures’ Blockchain Fund, OKEx’s Blockdream Ventures, NGC, LongHash and Genesis Block. Lithium intends TELLOR'S DISTINGUISHING FEATURES Tellor’s process and mechanisms for selecting data providers is similarly collectivized. Rather than creating a marketplace that assigns data providers based on reputation and parameters set by the requesters, as Chainlink does, Tellor selects its data providers using

a

ACCESS TOKENS

Access tokens confer holders access to key premium features on a platform. The token resembles a tradable membership, in which members (token holders) get access to exclusive experiences and still have an asset they can resell to a future member. CONSENSUS - GLOSSARY Consensus is used in several contexts in crypto, in ways drawing from its wider meaning as ‘a collective judgment’ or either referring to or suggesting analogy to ‘blockchain consensus.’ ‘Blockchain consensus’ and ‘consensus mechanisms’ more narrowly refer to a family of processes for synchronizing network nodes and determining what data is included on a blockchain and which PROOF OF IMPORTANCE (POI) Proof-of-Importance (PoI) is a blockchain consensus mechanism introduced by NEM.PoI reward users that actively transact on the network, building on proof-of-stake.With PoI, nodes need to vest an amount of currency to be eligible to create blocks and are selected to create a block roughly in proportion to a score quantifying their contribution to the network.

NAKAMOTO CONSENSUS

Nakamoto Consensus is the consensus mechanism employed by most Proof-of-Work blockchains, most notably Bitcoin.Its name derived from the Bitcoin creator’s pseudonym, Satoshi Nakamoto, Nakamoto Consensus states that the longest chain of verified blocks existing within a network of nodes is valid, and all others are to be ‘orphaned.’ In essence, nodes on the network ‘vote’ on the

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DISTINGUISHING FEATURES OF TELLOR’S ORACLE NETWORK UNDERSTANDING CRYPTOECONOMIC DESIGN DOES FARMING REPRESENT PROGRESS IN TOKEN DISTRIBUTION? The world’s leading blockchain research group, Smith + Crown has helped organizations build meaningful infrastructure and navigate a dynamic landscape since 2013.

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BRIEFINGS

Jun 03, 2021

* KORBIT LAUNCHES NFT MARKETPLACE. South Korea-based cryptoasset exchange Korbit has launched an NFT trading platform. The marketplace will initially only support Ethereum-based non-fungible assets. The platform will also enable NFT creation and primary auction functionality.

Sources:

* Coindesk

* CIRCLE RAISES $440M. USDC issuer Circle has raised $440M in its latest funding round, which included participation from Fidelity, FTX, Digital Currency Group, and Marshall Wace. The firm is reportedly considering a special purpose acquisition vehicle deal, with a likely target valuation of

$4B.

Sources:

* The Block

* LITHIUM RAISES $5M. Lithium Finance has raised $5M in its latest funding round. The round was led by Pantera Capital and VC Hashed, with participation from Alameda Research, Huobi Ventures’ Blockchain Fund, OKEx’s Blockdream Ventures, NGC, LongHash and Genesis Block. Lithium intends to develop oracles for pricing private assets.

Sources:

* The Block

May 26, 2021

* FIGURE RAISES $200M. Cryptoasset lending firm Figure has raised $200M in a Series D round that closed last week. The round values Figure at $3.2B and was led by 10T Holdings and Morgan Creek Digital. Other investors in the round include Digital Currency Group, Ribbit Capital, DCM and DST Global.

Sources:

* The Block

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