You can read the Digest here:

• Validators Support Network Fork, South Korea Investigate Terra Crash, Mike Novogratz Breaks Silence on Terra Crash

• Ropsten Ethereum’s Major Testnet Set for Proof-of-Stake Merge on June 8

• A16z launches $600 million investment in Metaverse and web3 gaming

• Louisiana is on the Road to Crypto Adoption; Panama delays Crypto Legalization

Terra Validators Support Network Fork, South Korea Investigate Terra Crash, Mike Novogratz Breaks Silence on Terra Crash

Do Kwon (CEO of Terraform Labs) proposed a revival strategy following the Terra ecosystem collapse. Do Kwon’s governance proposal to fork the Terra blockchain has received early support from validators.

With six days remaining, 82% of Terra node validateators voted for a Terra fork.

Regulators have now turned their attention to Terra following the event of Terra and UST’s flash crash. Following its tax evasion charges on Terraform Labs, South Korea has revived the dormant Grim Reapers of Yeoui-do to investigate Terra’s ecosystem crash.

Mike Novogratz (CEO of Galaxy Digital) has broken his silence for 10 days on the Terra crash. Novogratz, a confirmed Lunatic with a tattoo to show, has called Terra “a big idea that failed,” as his firm is one of many investors to lose money from the crash.

Flipsider:

• Pantera Capital is one of Terraform Labs’ most high-profile backers.

• Noticing the UST Peg early, Pantera sold its $1.7 million worth of LUNA “at an average price of $25.6.” Because Pantera got in early, the firm made profits from Terra.

Why you should care

According to Mike Novogratz, Terra’s crash was instigated by a brutal macro backdrop, which put pressure on Luna and the reserves held back UST.

Ropsten Ethereum’s Major Testnet Set for Proof-of-Stake Merge on June 8

On June 8, Ethereum’s major public testnet, Ropsten, will undergo “the merge” as one of the final preparations for the network’s transition into proof-of-stake.

Parathi Jayanathi, a DevOps Engineer in the Ethclients GitHub repository said that Parathi Jayanathi’s configuration code to upgrade the testnet was ready.

This merger will combine the proof-of work (PoW network) with a new proof of stake (PoS consensus layer). One step closer to the long-awaited ETH2.0 network upgrade is Ethereum.

Two phases will comprise the process. Ropsten will create a genesis version the consensus layer on May 30, The merge will take place on June 8th.

Flipsider:

• Ethereum’s mainnet Merge will not go live before then a “few months after June.” A date for the merge is yet to be set.

Why you should care

This announcement is another milestone in Ethereum’s journey towards a Proof of Stake consensus algorithm.

A16z launches $600 million investment in Metaverse and web3 gaming

Andreessen Horowitz Venture Capital (a16z), today announced GAME FUND ONE’s launch. The fund, which is $600 million in investment will be dedicated to game start-ups focusing on Web3 applications and metaverse.

This fund, the first dedicated by a16z to gaming only, is unique. Funds will be used to support game studios and gaming-related infrastructure.

When A16z commented on web 3 gaming’s transition, he noted that games have seen many changes over the past decade. The success of online games such as Fortnite, League of Legends and Minecraft has been supported by A16z.

GAME FUND ONE’s founders include Jason Citron (founder of Roblox), David Baszucki (founder of Roblox), Marc Merrill (co-founders at Riot Games); Mike Morhaime, cofounder of Blizzard; Kevin Lin (co-founders at Twitch), and cofounders of Sky Mavis.

Flipsider:

• Web 3 gaming took a huge hit. Unity stock traded over 80% less than November 2021’s highs while Roblox fell by more than 75%.

Why you should care

A16z explained the reasons behind A16z’s massive investment. It believes that games infrastructure and technological will be crucial building blocks of the Metaverse.

Louisiana is on the Road to Crypto Adoption; Panama delays Crypto Legalization

Mark Wright (State Representative of Louisiana) has proposed a resolution that would create a cryptocurrency adoption committee. Wright’s resolution was heard by the House Appropriations Committee on Monday and reported favourably with no objections.

Louisiana might accept cryptocurrency if it is passed by its Senate. Wright also submitted a bill that would allow Louisiana political candidates to accept crypto as campaign donations.

Flipsider:

• Panama The bill regulates the use and licensing of cryptocurrencyIt has been delayed.

• Panama’s President Laurentino Cortizo said he’ll only sign the law regulating the use of cryptocurrency when it contains tougher anti-money laundering controls.

Why you should care

Louisiana, if passed by the Senate could be the first US state to use cryptocurrency.

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