A number of weeks ago, I remember watching a video by DJ Trev about constructing the inspiration of a house. The muse of a home is crucial element of the whole structure. It serves as the bottom upon which every part else is built, and provides stability and support for the whole constructing. And not using a solid foundation, the whole structure is vulnerable to collapsing or becoming unstable.

The issue that we appear to be facing is that we are attempting to construct this foundation and find our identity on sinking sand. Prior to now couple weeks, day by day seems to bring latest challenges and obstacles to the ecosystem that pulls the bottom out from under us. Our proximity to regulatory enforcement actions and collapsing financial institutions are earthquake-like events that we’re having to endure.

It’s during these times – once we are shaken to the core – I’ve been forced to reflect on who we’re, what’s our price proposition, and where we aspire to go. I’m reminded of Alex Forshaw’s January article about LUNC’s product-market fit. UST was Terra’s defining product, but faces massive financial and regulatory headwinds. Will we go down that path again? Over the past several months, I actually have been enthusiastic about my role in all of this and would really like to share my struggle embracing my/our identity and how you can innovate in light of this.

The Cosmos Identity — Web of Blockchains or Fat Protocol

On the macro level (Cosmos basically), I feel we’re scuffling with a problem of identity. Cosmos is a decentralized network of independent, parallel blockchains, whose predominant goal was to create an ecosystem where different blockchains can communicate with one another efficiently, often called the “Web of Blockchains.” It focuses on application-specific blockchains (also often called “app chains”) and their integration with the Cosmos and Tendermint ecosystem.

The concept behind app chains is to create specialized blockchains tailored to particular use cases or applications, fairly than having one-size-fits-all blockchains like Ethereum. This enables for higher scalability, security, and customization, as each app chain may be optimized for its specific purpose. Cosmos facilitates the creation of those app chains by providing tools like Inter-Blockchain Communication (IBC) protocol that allows communication and transfer of assets (and accounts!) between these app chains, enhancing the utility of the whole ecosystem.

Nonetheless, so far, the “fat protocol” thesis has played a dominant role. The fat protocol thesis envisions a single, comprehensive blockchain that supports every kind of applications and use cases that drives demand for the native token and protocol. This concept is analogous to early days of the web when some believed that a single supercomputer was the most effective approach and everybody else would just open a distant terminal on that central machine. Actually, most of the blockchains within the Cosmos aspire to do similar things, and thus, there doesn’t appear to be much of a transparent differentiator on the protocol level. The decision for utility on LUNC similarly seems to bolster the drive for the fat protocol, where Terra Classic can support many various L2 applications on top of the L1 layer. I don’t want to downplay the importance of this. Getting the chain upgraded with the most recent cosmos and wasm support is totally critical to LUNC’s future; nonetheless, on condition that the concept of application-specific blockchains is a core principle within the Cosmos ecosystem, exploration of other approaches to the fat protocol are warranted.

The LUNC identity — Meme coin or Utility chain

Pre-depeg Luna was a top L1 utility chain with a bustling ecosystem; clearly Terra was a fat protocol with a solid user and developer base. Nonetheless, post depeg, every part modified. LUNC’s utility dropped to close zero, and the meme coin emerged. The “burn” narrative drove investment early on on the chagrin of utility maxis, and continues to cause fundamental conflicts in governance. This ping ponging of burns, taxes, staking, and funding are a results of LUNC’s split personality, which probably will proceed on for the foreseeable future.

While this conflict can grow to be heated, and sometimes brings out the worst in us, there’s also a possibility if either side can accept our identity and use one another’s strengths. Bringing utility to the chain requires developers and development teams to construct here. This requires investment within the infrastructure, dapps, and L1 layer. This also requires incentivization for teams and projects to construct here. This thesis requires funding that appears to be in conflict with the burning of potential funding. Then again, the burn drives increased visibility and interest, and promotes a pretty investor narrative. The meme-ness creates decentralized growth, with highly engaged community-driven initiatives. While there are a number of builders on chain, given the present state of our ecosystem, it might be fair to say we’re a meme coin that’s working to evolve to incorporate more use cases and utility.

For the past 15 years, I actually have been researching computer vision — a subfield of artificial intelligence. I teach machine learning at my university, publish peer reviewed academic papers, and receive external funding to research open questions and construct applications in ML. On paper, I’m a machine learning scientist.

But for the past two years, I actually have been obsessively moonlighting on the earth of blockchains. At first, it was constructing GPU miners and gaining an understanding of code bases. After the collapse of UST, I became far more involved with Cosmos and Tendermint, deeply diving into the applying level, network components, and consensus mechanisms. I’ve been working on the L1 team and contributed to 5 chain upgrades prior to now 12 months. After I introduce myself to people I meet, I often times throw within the incontrovertible fact that along with machine learning, I also work on blockchains.

So herein lies my identity crisis, where step one is to be honest to myself and people around me. I’m effectively a A few of it’s possible you’ll disagree with this sentiment, which I respect, but that is what I think in the mean time. Let me emphasize that none of those are inherently “bad”, it’s just not where I believed I could be today once I launched into this journey with all of you almost a 12 months ago. After introspection, I’ve also noticed my interest and excitement waning, and my intrinsic motivation decreasing. Personally, this will not be where I need to be so — I actually have decided to take actions to alter my identity.

Innovating on our Strengths

Over the past several weeks, the trail that I personally must take has grow to be clear, and it plays directly into our strengths. With recent advancements in AI (especially generative AI like diffusion and ChatGPT), the utility of AI has exploded, but is quickly becoming computationally intractable. For instance, OpenAI’s GPT-3 required over over $12M USD in training costs, and the carbon footprint of coaching this model was such as the output of 126 danish homes for a whole 12 months. This doesn’t even cover the fee of obtaining and labeling massive amounts of information. At this point, there isn’t a way that a person and even small/medium sized organization can develop, confirm, and even run state-of-the-art machine learning models.

Then again, there isn’t a lack of compute power on the blockchain. The computing power used to run Bitcoin is around 40–50 exahashes per second. That is several orders of magnitude greater than the computing power of the world’s strongest supercomputers combined. Although
the Bitcoin network utilizes specialized single purpose hardware which can’t be repurposed, the Ethereum network was the biggest GPU decentralized network on the earth and the computational power available on this network was undeniably massive in scale. But roughly 80% of Ethereum miners have gone offline following the Merge resulting from unprofitability when the hash rates overwhelmed other PoW chains. This compute still exists, but stays untapped. Can we someway capture this network for AI?

Given my expertise in each machine learning (ML) and blockchain technology, I actually have gained unique insight into an excellent convergence of the 2. I’m excited to share a research project I actually have been working on, a Cosmos Proof-of-Stake machine learning application specific chain that decentralizes the facility of AI. I actually have developed a custom machine learning Cosmos module that interacts directly with the Layer-1 infrastructure to tap into the compute power beyond the consensus layer. By retrofitting proof-of-stake validator nodes with high powered GPUs, we will utilize these nodes to supply access to state-of-the-art machine learning models for anyone interacting with the blockchain. I actually have been capable of repurpose my Ethereum miners by upgrading the RAM and SSD disk space (the 1x PCI-E risers are nice). With interchain block communication (IBC), and interchain accounts, LUNC users can have access to a collection of the most recent machine learning advancements. While I’m still determining details, using the app chain thesis, I can develop and iterate at lightning speed. Below, I’m demonstrating a number of the capabilities already built into the app chain hosted by multiple testnet validators.

Within the short term (next 3–6 months), I’m planning on constructing and releasing a public beta. Long run, the goal is to have a blockchain that may be used to perform large scale distributed learning across many nodes. We are able to potentially cope with the intractable nature of a few of these large industry monopolies surrounding large language models and foundational image models. We’re also privacy preserving or federated learning techniques and SNARK verification of the ML models. The tokenomics of the side chain can be especially vital to contemplate for LUNC. How can we utilize the app chain to assist fund LUNC development, help reduce the availability of LUNC and UST, increase utilization of LUNC, and incentivize miners to contribute their compute. I’m in talks with seasoned experts to get this part right from the beginning.

In summary, I’m flipping my script and forging a latest identity for myself to align with a vision where I can have best impact. My personal goal and contribution to this community has shifted to drive a recovery narrative that iterates on the identity and strength of Cosmos, Terra Classic, and my very own personal experience.

A number of things must go right for this to capture sufficient traction and network effects. But, if the celebs align, I foresee LUNC could grow to be a Chimera blockchain cryptocurrency that may be a mixture of fat/app, meme/utility, and ML/Cloud/Blockchain that has never existed before, with a large utility value proposition. The great thing concerning the app chain thesis, is that other community members can drive their very own recovery narratives and assist in their very own way, i.e. USTC.

Other App Chains for USTC

While I’m only debuting my ML idea, I actually have been in discussions with others locally about how you can rapidly innovate using a side chain connected to Terra Classic. We are able to quickly prototype applications or dangerous algorithms in a controlled sandbox and connect with Terra Classic via IBC. I actually have offered my assistance to assist with the app chain technology and am also recommending that they seek the advice of legal counsel for execution. For this, we’ve got already been looking for a great partner.

Given the ever-changing regulatory environment, especially given the proximity of Luna Classic to recent enforcement actions, we’re proposing that it’s now vital that the Terra Classic DAO (decentralized autonomous organization) retain legal counsel to advise a number of the core contributors and the broader community about best practices and basic corporate structuring to make sure that we will operate efficiently while maintaining our decentralized structure. Because there isn’t a centralized authority, the legal representation of the DAO will have to be structured in a decentralized, democratic, and highly collaborative way.

As mentioned before, internal structures and teams have been arrange to construct the inspiration, but with the recent developments within the regulatory environment, it has grow to be increasingly vital for Luna Classic to align its internal structures and proposed ideas to the external world. We consider that the community is increasingly realizing the necessity to limit potential legal risks and structure ourselves with a view toward long-term sustainability. This will even enable the community and protocol to

Next Steps

Here I outline some concrete next steps that I can be taking within the short term.

1. Re-focusing all of my efforts to construct out the ML Cosmos App Chain for beta release in the following three to 6 months. I’ll likely be asking the L1 team for help when needed.
2. Help gain consensus on eXperimental team (“X” team) to work on USTC issues that may innovate quickly via additional App Chains. If that is the trail they wish to go, I’ll volunteer to help with app chain level technology.
3. Continuing funding L1 team in Q2 to upgrade Cosmwasm and IBC Interchain Accounts. I’ll volunteer to assist when needed.
4. Omit TGF operations to Marco. TGF report on activities, spending, and future plans can be shared later this week.
5. Gain consensus from the community on legal representation.
6. Iterate and Innovate to seek out and deploy LUNCs value proposition.

I imagine now we will “move fast and break things” on app chains safely firewalled to Classic, and see where the longer term takes us.