If It Can Happen It Will Happen. We Need To Prepare For The *Most Orderly, Slow, and Least Destructive* Version of Social Slashing

First of all, in my opinion the clients of Coinbase and Kraken have grounds to sue them and the Treasury. We as an industry have extreme malelovent, diverse, numerous political enemies in DC that you greatly underestimate. It is there goal to use the executive branch to force Coinbase to do a hard fork, and they probably will in the next 24 months.

Coinbase has a fiduciary obligation to prevent slashing and prevent inactivity leak, and FSOC and Treasury are going to force them to break it, which means they will coordinate a hardfork to prevent loss of customer funds, but will still lose to market effects. In my opinion due to regulatory risk, Coinbase *has already broken their fiduciary obligation by offering staking at all in the first place*

This space can not get in bed with the US gov, and we cannot win politically in the next 3 years, you're underestimating our enemy and their ideology. We cant get in bed with SBF, the SEC, or the CFTC, we are fighting a losing game. The regulatory environment in the US is too broken.

We need to slowly divest the space away from Circle and US denominated entities. This space needs to accept the fact that if it wants true censorship resistance, it has to dedollarize to get out of US regulatory jurisdiction. You'll have to hold other currency. We'll need to wind down dollar collateral positions to prevent massive system shock, and we'll need to work on getting another oracle besides Chainlink. Chainlink is fully at the mercy of Western governments and the entire thing has a 4 of 9 multisig, it isn't safe.

If you don't already I recommend watching Nomad Capital channel on youtube with andrew henderson, we truly do have to take our shit and leave, this space needs US capital flight, we can't win domestically.

I regret to inform you that most "crypto is resilient to state level attacks" is LARPing. We have to win politically.

But I don't think you guys fully understand what that implies. You have to start behaving like a sovereign state without diplomatic recognition. That means dedollarization and seeking capital in BRICS and latam/africa.

It does not mean grovelling to the US gov, you're already in a position to lose, you have to use non Nato countries as leverage, and you have to make things mostly ZK private at the base layer, and put most nodes in the southern hemisphere.