ALTL1POOL: Multi-chain L1 Pool

PowerPool needs to launch an even-broader family of thematic, composable public pooled investment vehicles that communicate to sophisticated investors and provide ways to take systematic positions on scenario-driven investment theses. Looking forward, this year Bitcoin is already down from 72% falling towards 40% of crypto value, all the while its continued energy-intensive operation (together with ETC & other POW chains) threaten to roast the planet. Meanwhile, for at least the next year, Ethereum will struggle to shift to POS and, above all, to scale. It is possible than despite DeFi protocols moving to L2 roll-ups and sidechains, surges in transactions traffic and arbitrage/trading bot spamming will keep Ethereum ecosystem gas fees too high for the average responsible investor to achieve a broadly-diversifed, thematically-balanced, rewards-rich and hedge-able portfolio on their own. Indeed, the PowerPool value proposition posits that responsible investing for the average investor in the future Ethereum ecosystem gas fee environment is best managed by pooling their investments together with thousands of others.

As a consequence of Ethereum scaling/gas fee surge pricing issues, crypto market value is already flowing towards L2/Sidechains (Polygon) and multi-chain Cosmos Network & Thorchain) solutions but also towards alternative EVM-compatible Layer 1 (L1) chains like Binance Smart Chain and many other L1 ‘pretenders’ (see table below). It is possible that exponential continuing transactions demand will be such that Ethereum will never be able to cope with automated bot-based high-speed arbitrage trading and, as a consequence, large-scale, high-speed, high-value DeFi liquidity could increasingly seek other L1 homes.

One possible future scenario is that crypto financial flows will segregate/segment based on both transactions size and urgency of finality. In TradFi, public-facing retail, higher value inter-bank wholesale and high value, high-speed institutional trading with 'dark pools' are all largely separate. A similar segregation could also happen in crypto, where public-facing, small payments-oriented (regulated) mobile retail finance runs on small payments chains like {??? and ???} while higher-value, less time-sensitive transactions (like zapping into PowerPool) will still run on ETH2/3, but high-speed, high-value arbitrage and dark pool trading bots will run on chains like {??? and ???}. It’s likely that the near-term future of finance will be cross-chain, as different protocols will focus their efforts on certain aspects, such as speed, security, privacy or decentralisation, creating a competitive market and giving users the option to choose. There probably won’t be just one winner. Fee-earning L1 activity will be distributed (unevenly) across many L1 chains, depending on the architecture of each chain, ability of its community to execute, and the distribution of crypto use cases.

Positing future scenarios like this, deducing the corallorary investment theses, then expressing the collective sentiment via re-composing and re-weighting individual tokens across the Power Universe family of pools is the role of the DAO collectively, and hopefully investment managers who enjoy this will gravitate towards the PowerPool DAO.

PowerPool offers DAO-guided active management of investment pools composed of continuously re-weighted curated shortlists. Given the uncertainties, it is proposed to launch the PowerPool ALTL1 pool with initial equal weights across a number of 'alternative' L1s excluding BTC and Ethereum. There is an option to also launch a Cosmos Network Hub ecosystem pool, and include a percentage weighting of the proposed CHNPOOL token within the ALTL1 pool. Given that a separate Cosmos Network Hub pool is also proposed, rather than include Cosmos/ATOM in this pool, the DAO could consider simply excluding Cosmos from this ALTL1 shortlist on the grounds that our investors can decide for themselves what weight to give Cosmos among other alternative Layer 1s by managing their personal allocation between ALTL1POOL and CNHPOOL tokens. Ethereum scaling solutions like Polygon/MATIC, etc. and various bridging chains like Thorchain/RUNE, etc. either have, or soon will have, dedicated investment pool products L2ETHPOOL and BRIDGPOOL.

Roughly every 6 months, the DAO will complete a process of flash polling xCVP stakers to determine if, and how, the composition and weights in the ALTL1 pool should be changed.

The L1 tokens below are currently blacklisted pending DAO guidance to move them to the whitelist. Many are relatively obsolete early BTC forks, some were funded via ICOs and/or otherwise have tokenomics skewed away from growing/sustaining their communities, and other perceived shortcomings undermining their long-term prospects. Any DAO member (qualified xCVP>1000 staker) can propose to move a token from the blacklist to the red/white lists assuming the DAO vote reaches the quorum and the threshold vote level. The token will enter the whitelist with zero weighting and become part of the periodic dynamic re-weighting flash polling.

Minting & Vesting, Inflation and VC/Insider supply overhang

Dfinity

Hedera/HBAR EVM/Solidity Hashgraph High speed

Cartesi/CTSI

The OAN/AION

Internet Computer/ICP

Hiro (formerly Blockstack PBC)?/STX

IExec/RLC https://www.coingecko.com/en/coins/iexec-rlc

Secret