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More →Arthur Hayes Plans to Build Derivatives Around AI Compute
Arthur Hayes published a new essay on October 27 outlining futures and perpetual swaps tied to Flop Network’s proposed compute market, where AI agents would pay for computing power using FLOP. The plan aims to establish a reference price for compute that traders could use to build financial contracts around the resources AI systems consume. In a post on X, Hayes called his essay “The Trifecta” and <a href="https://x.com/CryptoHayes/status/2114857087004201325?s=20" rel="nofollow" target="_blank">described</a> it as a blueprint for entrepreneurs seeking to build derivatives for the AI agent economy. His central idea is that a liquid spot market for computing power could <a href="https://cryptohayes.substack.com/p/the-trifecta" rel="nofollow" target="_blank">provide</a> the pricing benchmark needed for futures and perpetual swaps. The proposed Flop Reference Compute Rate (FRCR) would be calculated hourly using a volume-weighted FLOP price per GigaFLOP of computing capacity. Quarterly futures would settle on the last Friday of March, June, September, and December, with contracts using US dollars for margin and profits. Hayes explained that the dollar-based structure would require a quanto derivative, a contract whose payout uses a different currency from its underlying asset. Because the compute market would be priced in FLOP while traders could prefer dollar-denominated returns, pricing the contract would require an adjustment for the relationship between the FRCR and the FLOP-to-dollar exchange rate. The proposed perpetual swap would use an eight-hour time-weighted average of the difference between its trading price and the FRCR to calculate funding payments. As with crypto perpetuals, traders on the expensive side of the contract would pay those on the cheaper side, depending on the premium. Market makers could recreate futures exposure by buying or supplying Flop Compute Units (FCUs), which represent reserved inference capacity for a specified AI model and delivery time. Hayes’s design also requires suppliers to post FLOP bonds, which they risk losing if they fail to deliver the promised computing work. The derivatives proposal depends on Flop Network first establishing a functioning spot market. Hayes argues that existing indexes tracking chip rental prices and individual AI token prices provide incomplete information because both are derivatives of the underlying cost of computation. Under his design, network blocks would record inference tasks, the computing work completed, and the fees paid to miners. Those receipts would help calculate the exchange rate between FLOP and computing capacity, giving buyers and suppliers a common reference. Hayes <a href="https://cryptopotato.com/arthur-hayes-called-ai-a-bubble-now-hes-launching-an-ai-project/" rel="nofollow" target="_blank">introduced</a> Flop Labs in August 2026, describing its proposed native token FLOP as “food for your AI agent.” In an August 27 explanation, the project <a href="ht
Zcash Co-founder Sean Bowe Proposes Ending ZCG Funding Stream, Citing $125M Treasury
Zcash (ZEC) co-founder Sean Bowe proposed on Monday to end the 8% block reward share paid to Zcash Community Grants (ZCG), saying the program already holds over $125 million. Bowe filed the change as a draft Zcash Improvement Proposal (ZIP) that would send that reward share to the Network Sustainability Mechanism (NSM) until the stream’s scheduled end. That mechanism withholds the coins from issuance and starts paying them back out as block rewards in February 2031. Under the draft, ZCG would keep its existing treasury and could still approve grants from it. “The program was never designed to handle this amount of funding,” Bowe wrote on X. It’s time to turn off the ZCG funding stream. ZCG has over $125M in funding, and will receive millions more before the spigot is turned off. The program was never designed to handle this amount of funding. — Sean Bowe (@ebfull) <a href="https://x.com/ebfull/status/2114911107718742451?ref_src=twsrc%5Etfw" rel="nofollow" target="_blank">October 27, 2026</a> Bowe’s figure comes from a dashboard linked on ZCG’s website. It listed 91,453 ZEC and $8.8 million in cash at an October 21 block. Approved grants still unpaid came to $2.4 million. Bowe valued the coins at $1,300 each to reach $125.3 million. The same dashboard counts another 110,049 ZEC due to ZCG before the stream ends on November 24, 2028. According to the draft ZIP, at the dashboard’s price of $1,241.61, those coins are worth $136.6 million, more than the program holds now; and, according to a Financial Privacy Foundation report, ZCG spent $1.53 million in the first quarter of 2026 <span>against that intake</span>. The stream adds 144 ZEC a day, which Bowe put at $68.3 million a year at the same coin price. Bowe’s draft landed alongside other proposals on the Zcash forum. For instance, Maxime Desalle’s proposal would also send ZCG’s remaining treasury to the NSM. Desalle cited a February coinholder vote in which 98.6% opposed Zcash Shielded Assets. ZCG approved another $455,000 for Shielded Assets work in June, he said. Turnout was 7.25% of circulating ZEC, per the Zcash Foundation. In June, ZCG approved $455,000 for a QEDIT test network covering Shielded Assets and other deferred features, its minutes show. Josh Swihart, founder and CEO of Zcash Open Development Lab (ZODL), said: “It’d be a mistake to kill only one part of the dev fund.” He added the 12% Coinholder-Controlled Fund, which accrues about 216 ZEC a day, should end too. Swihart’s company is the one former Electric Coin Company staff <a href="https://cryptopotato.com/zcash-governance-crisis-forces-full-exit-of-electric-coin-company-staff/" rel="nofollow" target="_blank">formed</a> after a governance dispute. Responding to Swihart’s plan, Bowe wrote that he would also personally back a separate proposal to strip ZCG’s existing treasury. Ian Miers, one of Zcash’s founding scientists, objected to the NSM as the destination, stating that the reserve ultimately pays miners and could
The U.S. CFTC and the Department of Justice have sued Utah to block a crackdown on prediction markets.
CoinWorld news: The U.S. CFTC and the Department of Justice filed a lawsuit on October 26 against the state of Utah and Attorney General Derek Brown, seeking an injunction to stop the state from using gambling laws to crack down on federally regulated prediction markets. The complaint states that Utah's enforcement actions threaten the CFTC's oversight of exchanges. Utah had sued Kalshi and two Susquehanna entities on October 20, alleging that Kalshi collected fees ranging from $30.6 million to $61.2 million. Utah is the 10th state the CFTC has sued over this issue.
Trump: The United States will receive the first 1 million barrels of Venezuelan crude oil.
According to CoinWorld news, Trump stated that the United States will receive the first 1 million barrels of Venezuelan crude oil, with subsequent supply expected to reach billions of barrels. He said that thanks to successful military operations, the United States will not need taxpayers to bear the cost of acquiring this oil. This is the first batch of future oil supplies totaling billions of barrels, and Trump also said that gasoline and diesel prices will soon drop significantly.
Mercado Bitcoin's USDT trading volume surged 800%, while Bitcoin trading volume grew 865%.
Data from Bijie: USDT trading volume on the cryptocurrency exchange Mercado Bitcoin grew by nearly 800%, while Bitcoin trading volume grew by 865%. Meanwhile, trading volume in Binance's USDT/BRL market tripled, while trading volume in the global BTC/USDT pair declined.
Cross-chain trading platform Cancore completes $7.2 million seed funding round.
Coin World news: Cross-chain trading platform cancora has completed a $7.2 million seed round of financing. This round was conducted through a Simple Agreement for Future Tokens (SAFT), corresponding to a fully diluted valuation (FDV) of $60 million for its planned cnrx token. The financing was participated in by Paper Ventures, DAO5, Arkstream Capital, X Ventures, MH Ventures, and Proof of Talk, with Paper Ventures and DAO5 receiving the largest shares. cancora co-founder and CEO Wasif Rashid said the company began approaching investors in June this year, officially launched the financing in July, and completed it in mid-September.
The U.S. Treasury's five-year note auction cleared at a yield of 4.845%.
According to Bijie Network news, the U.S. Treasury Department auctioned five-year Treasury bonds, with a winning yield of 4.845% and a bid-to-cover ratio of 2.33.
Hyperliquid launches HIP-3 upgrade, Kraken parent company targets US-compliant futures
Coin World news: Hyperliquid has announced plans for a HIP-3 upgrade, while Kraken's parent company Payward is pursuing CFTC-regulated U.S. perpetual futures. Payward will leverage Hyperliquid's blockchain infrastructure, with Bitnomial handling trading and clearing, and NinjaTrader Clearing managing customer accounts. The arrangement requires regulatory approval, and the new features are currently running on testnet. Payward plans to become the first CFTC-regulated deployer to use the framework, but U.S. customers cannot yet access the proposed contracts. Hyperliquid stated that additional market controls will be implemented in future network upgrades. Payward's plan follows its September 16 announcement that it was exploring U.S. compliant perpetual futures. Bitnomial will serve as the HIP-3 deployer after obtaining regulatory approval, responsible for market creation and contract clearing. The proposal keeps regulatory responsibilities with independent operators of the markets, and Hyperliquid's permissionless HIP-3 markets will remain unaffected.
Russian President Putin: In the first eight months of 2026, the bilateral trade volume between Russia and Iran increased by 10.4% year-on-year.
According to CoinWorld news, Russian President Putin: In the first eight months of 2026, the bilateral trade volume between Russia and Iran increased by 10.4% year-on-year.
The total market capitalization of the crypto market stands at $2.71 trillion.
According to Bijie data, the total market capitalization of the crypto market is $2.71 trillion, with a trading volume of $61.876 billion over the past 24 hours.