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ALTL1POOL: Multi-chain L1 Pool

Macro Overview- Alternative L1 Chains

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.

Ethereum 2.0 Overview
Ethereum 2.0 Overview
Cosmos Network Hub Overview
Cosmos Network Hub Overview
Binance Smart Chain Overview
Binance Smart Chain Overview
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Alternative L1 Token Pool (ALTL1POOL)

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.

L1 Bridges define the flow of liquidity from Ethereum

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Currently Blacklisted L1s

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.

Blacklisted L1 Tokens

TokenBlacklistCommentsCoinGecko
BCH
Yes
BTG
BSV
BCD
LTC
ETC
DOGE
Yes
Majority of tokens held in one wallet; no utility; SOV 'slow Ponzi'
XRP
EOS
Tron/TRX
BSV
Tezos/XTZ
DASH
XMR
Verge/XVG

Potential Shortlist for ALTL1 Pool

L1/TokenEVM?ConsensusTPS / AVG TX FEEValidatorsCommunityTVLProperty 1Property
Solana/SOL
sealevel (Rust)
Proof of History
50.000 / $0,00025
943
Elrond/EGLD
WASM
Secure Proof of Stake
15.000 / $0,001
3.200
TG:44k TW:311k DIS:
Cardano/ADA
K (EVM)
Proof of Stake
250 TPS
2075
TG:62k TW:815k DIS:
DeFI and yield opportunities not yet mature?
Polkadot/DOT
Web Assembly, Substrate
Nominated Proof of Stake
1.000-3.000 / $0,4
Kusama/KSM
Web Assembly, Substrate
Nominated Proof of Stake
1.000-3.000 / $0,4
297
Dock/DOCK
yes
Polkadot
Algorand/ALGO
Reach, Python, Clarity
Pure Proof of Stake
1000 / $0,001
TG:18k TW:123k DIS: https://discord.gg/YgPTCVk
Nervos/CKB
Avalanche/AVAX
Yes, (Solidity, Viper)
Avalanche Proof of Stake
4.500 / $0,001
1043
TG:27k TW:227k DIS:https://chat.avax.network/
Harmony/ONE
KAVA/KAVA
Terra/LUNA
Web Assembly / EVM Cosmos SDK
Tendermint Proof of Stake
10.000 / 0,1 - 1%
130
Near/NEAR
WASM, Aurora (EVM)
NightShade Proof of Stake
100.000 / $0,0002
59
Interested in DeFi pool
Fantom/FTM
EVM (Solidity, Viper)
Proof of Stake
10.000 / 0,0001
52
TG:17k TW:110k DIS:http://chat.fantom.network/
450m
Celo/CELO
NEO/NEO
Theta/THETA
IOTA/MIOTA
1500 TPS
Zilliqa/ZIL
OKChain/OKB
NEM
2 TPS
Qtum
70 TPS
Wanchain/WAN
75m BRIDGPOOL
BINANCE CHAIN/BNB
Yes, Solidity, Viper
Proof of Staked Authority
100 / $0,15
21
TG:166k TW:4,8m DIS:
Cosmos / ATOM
Web Assembly / EVM Cosmos SDK
Tendermint Proof of Stake
Zones, 10.000 TPS
TG: 15k TW:176k DIS:
Hasgraph / HBAR
10.000 / $0,01
125
Constellation / DAG
WAVES
100 TPS
POLYGON / MATIC
TG:56k TW:611k DIS:https://discord.gg/polygon
$4,5B
Huobi Eco Chain / HT
EVM, (Solidity, Viper)
Proof of Stake Authority
500 / $0,001
21
Vechain / VET
E-RADIX / EXRD
VSystems / VSYS
Dusk / DUSK
Flow / FLOW
Mina / MINA
IOTEX
Stacks / STX

Tokenomics: Token Supply & Distribution

Minting & Vesting, Inflation and VC/Insider supply overhang

If a token distribution is too centralized or too skewed towards a certain set of people, this can have an incredibly detrimental effect on the project’s ability to attract a lasting community. As a related factor to this, tokens are also commonly criticized for their release schedules - we’ve seen plenty of tokens bleed out in value because of aggressive liquidity mining campaigns that essentially create a perpetual “farm and dump” mechanism where passive holders eat heavy losses.

Untitled

AssetM CapFDMCapVolume 24hCirc. Supply%Total Supply
BSC/BNB
75.360
83.184
1960
154.533.651
90,6%
170.533.651
Solana/SOL
25.450
42.866
1930
290.803.002
59,51
488.630.611
Cosmos/ATOM
5.570
-
487
278.241.240
-
Not Capped
Avalanche/AVAX
8.190
34.175
1225
174.370.222
46,2%
377.752.194
Terra/LUNA
12.460
30.710
1140
403.297.025
40,6%
993.960.125
Fantom/FTM
Polkadot/DOT
26.700
27.180
1060
1.024.643.604
92,67%
1.105.592.738
Kusama/KSM
2.760
3.070
275
8.980.098
89,8%
10.000.000
Cardano/ADA
91.320
128.061
6700
32.066.390.668
71,15%
45.000.000.000
Elrond/EGLD
2.755
2860
69
19.648.859
96,3%
20.397.843
Algorand/ALGO
3.625
10.507
155
3.451.806.018
34,51%
10.000.000.000
Polygon/MATIC
9.560
14.770
876
6.477.576.924
64,77%
10.000.000.000
Avalanche, Binance, Terra, Polkadot & Kusama have deflationary mechanisms
MINA
FLOW

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ALTL1POOL-Weighting Metrics & Tokenomics

L1/TokenWeightsTagsColumn 1
Solana/SOL
1
Polkadot/DOT
2
📈
Kusama/KSM
3
Cardano/ADA
3
Avalanche/AVAX
4
Elrond/EGLD
5
Algorand/ALGO
6
BSC/BNB
Terra/LUNA
NEAR/NEAR
Harmony/ONE
Fantom/FTM
Cosmos/ATOM
Kusama/KSM
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Computing L1 Platforms

Dfinity

Hedera/HBAR EVM/Solidity Hashgraph High speed

Cartesi/CTSI

The OAN/AION

Internet Computer/ICP

Hiro (formerly Blockstack PBC)?/STX

Secret

References/Research by L1 Chain

Solana Research
Solana Research
Polkadot Research
Polkadot Research
Cardano Research
Cardano Research
Avalanche Research
Avalanche Research
Elrond Research - $EGLD & Maiar
Elrond Research - $EGLD & Maiar
Algorand Research
NEAR Research
NEAR Research
Hedera Hashgraph
Hedera Hashgraph
Polygon Research
Layer 1 Platforms Research