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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
Discord is making public chats searchable on Google: How to opt out
Discord conversations on large public servers will soon reach audiences far beyond their communities, raising privacy concerns. Discord is making a policy change that will make conversations from its largest public servers discoverable in search engines, including Google, raising privacy concerns among users whose conversations were previously confined to the platform. The change applies to Discoverable Servers — communities with at least 1,000 members listed in Discord’s public directory that do not require an invitation to join. From Nov. 16, every Discoverable Server will have a web page that may include summaries of public channel discussions. From mid-December, individual messages posted in eligible channels may appear in web search, Discord<a href="https://discord.com/blog/making-content-from-discoverable-servers-easier-to-discover" rel="nofollow noopener" target="_blank">> <span>said</span></a> Tuesday. Messages posted before the rollout will not be included, while usernames and avatars will be excluded from published messages. Example of an individual message being shown online. Source: <a href="https://discord.com/blog/making-content-from-discoverable-servers-easier-to-discover" rel="nofollow noopener" aria-label="Source: Discord" target="_blank">Discord</a> Discord said the shift of online communities from message boards to its servers had made useful answers harder to find. “This has led to valuable information being locked in Discord conversations, inaccessible to the wider internet. We want to fix this,” the company said. The move has <a href="https://www.reddit.com/r/discordapp/comments/1xgxb68/comment/19rr367kxqlk2/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button" rel="nofollow noopener" target="_blank">><span>drawn</span></a> criticism from users concerned about their conversations reaching an audience outside of their intended community, even if the servers are public in the first place. <em><strong>Related: </strong></em><a href="https://cointelegraph.com/news/starknet-introduces-wallet-privacy-feature-for-defi-activity" target="_blank" rel="nofollow"><span><em><strong>Starknet introduces wallet privacy feature for DeFi activity</strong></em></span></a> Others welcomed the change, saying it could make useful answers easier to find. One user in Discord’s announcement thread <a href="https://www.reddit.com/r/discordapp/comments/1xgxb68/official_megathread_discoverable_servers_are/" rel="nofollow noopener" target="_blank">><span>called</span></a> it “very much necessary,” while another said moving communities from forums to Discord had made their discussions harder to find through search. The change could also affect cryptocurrency communities that use Discord for technical discussions, support and project announcements. Cointelegraph found nearly 800 servers tagged “cryptocurrency,” around 1,400 tagged “trading” and more than 700 tagged “finance” in Discord’s public directory. Disc
CATL establishes a new energy storage technology company, including AI-related businesses.
CoinWorld news: CATL Energy Storage Technology Co., Ltd. was recently established with a registered capital of 5 billion yuan. Its business scope includes the development of basic artificial intelligence software, network and information security software, applied artificial intelligence software, internet of things application services, and quantum computing technology services, among others. The company is wholly owned by CATL.
Machi sold NFTs to raise funds for trading, losing over 1,000 ETH.
According to CoinWorld news, Machi has sold more than 60 NFTs over the past 6 months to raise funds for high-leverage perpetual contract trading, incurring losses exceeding 1,000 ETH, worth approximately $2.35 million.
GoPlusSecurity: Unauthorized fund transfer occurred in the BNB Chain prediction market
According to CoinWorld news, GoPlusSecurity reports that an unauthorized transfer of funds occurred on the BNB Chain prediction market, with approximately $400,000 in USDT transferred from user wallets. The team stated that affected users will be fully compensated. The preliminary investigation points to a possible breach of an API documentation website hosted by a third-party provider, and predict.fun has taken the documentation website offline as a precaution. If you have recently used the relevant API documentation or sample code, please immediately check the security of your account and keys.
Zilliqa confirms some liquidity pools affected, CEO resigns
CoinWorld news: Zilliqa has released an update on the security incident, confirming that some liquidity pools were affected, and CEO Alexander Zahnd has resigned. Zilliqa is investigating with an external cybersecurity firm. The x-bridge and ZRC2 proxy contracts used by some liquidity pools were affected, including PlunderSwap, with the affected tokens being ZUSDT, SEED, KUSD, and ZOGE. The native ZIL and the Zilliqa EVM network were not affected. X-bridge is currently suspended, and Zilliqa has asked users to stop using X-bridge or the affected liquidity pools. It is rotating all operational keys and actively cooperating with exchanges and law enforcement.
Coinbase denies data breach, calls it a security incident at a third-party service provider
Coinbase responded to reports of a data breach, stating that no data breach occurred at the company itself. Instead, a security incident at third-party analytics provider Amplitude affected the contact information of some Coinbase customers as well as data belonging to other Amplitude clients. Coinbase said it has found no evidence of unauthorized access to its internal systems, and customer funds have not been affected. The company will notify affected customers and relevant regulators as required by law.
Google pairs Genie 4 with a Gemini "director": generating the world while planning the storyline
According to CoinWorld news, Google DeepMind has released its next-generation world model, Genie 4, which allows users to generate explorable virtual worlds simply by entering text, with support for keyboard-controlled movement, changing the weather at any time, and adding characters. Genie 4 can simulate collisions, aerodynamics, and character movements, and for the first time natively generates ambient sound, music, and real-time dialogue. Characters respond based on the scene and user input. Genie 4 uses Gemini Omni to improve the realism of visuals and real-world behavior, while Gemini 3.8 Flash acts as a real-time director, continuously observing the visuals and breaking down tasks. Genie 4 is currently available only to a small number of invited testers, and will gradually roll out to Google AI Ultra, the Gemini API, and AI Studio in the future. Google hopes to use Genie 4 to create game prototypes, previsualize film scenes, and let robots and AI agents practice complex tasks in virtual worlds.
US Treasury yields and mortgage rates remain elevated, tightening corporate financing conditions.
According to recent U.S. Treasury data, the 10-year Treasury yield reached 5.31% on October 5 and fell back to 4.99% as of October 27. Despite the decline, it has risen by about 84 basis points cumulatively this year, and long-term financing costs remain elevated. Meanwhile, Freddie Mac data showed that as of October 22, the average rate on a 30-year fixed mortgage in the U.S. was 7.32%, still above September's 6.95%. In addition, Sage Advisory noted that corporate bond credit spreads have widened by 12 basis points and 67 basis points, respectively, compared with the time of the September meeting, and tightening pressure in the credit market has not yet subsided. PIMCO estimates show that U.S. financial conditions remain relatively loose, and rising long-term interest rates may reduce the need for the Federal Reserve to raise rates. Nationwide chief economist Kathy Bostjancic believes that although economic and inflation data support a rate hike, the sharp rise in long-term Treasury yields may cause the economy to slow more than the Federal Reserve expects.