Just a few weeks ago, I remember watching a video by DJ Trev about constructing the muse of a house. The muse of a home is a very powerful element of the complete structure. It serves as the bottom upon which all the things else is built, and provides stability and support for the complete constructing. With no solid foundation, the complete structure is susceptible 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. Up to now couple weeks, each day seems to bring recent 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 even have been eager 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 fighting a problem of identity. Cosmos is a decentralized network of independent, parallel blockchains, whose primary 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 thought behind app chains is to create specialized blockchains tailored to particular use cases or applications, reasonably than having one-size-fits-all blockchains like Ethereum. This permits for higher scalability, security, and customization, as each app chain might 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 complete ecosystem.

Nevertheless, up to now, the “fat protocol” thesis has played a dominant role. The fat protocol thesis envisions a single, comprehensive blockchain that supports all types of applications and use cases that drives demand for the native token and protocol. This concept is comparable to early days of the web when some believed that a single supercomputer was one of the best approach and everybody else would just open a distant terminal on that central machine. The truth is, 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 are not looking for to downplay the importance of this. Getting the chain upgraded with the most recent cosmos and wasm support is completely critical to LUNC’s future; nevertheless, provided 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. Nevertheless, post depeg, all the things 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 turn into heated, and sometimes brings out the worst in us, there may be also a chance if each 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 beautiful investor narrative. The meme-ness creates decentralized growth, with highly engaged community-driven initiatives. While there are just a few 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 even 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 analyze open questions and construct applications in ML. On paper, I’m a machine learning scientist.

But for the past two years, I even have been obsessively moonlighting on the earth of blockchains. To start with, it was constructing GPU miners and gaining an understanding of code bases. After the collapse of UST, I became way 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 up to now yr. After I introduce myself to people I meet, I often times throw within the undeniable 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 you might disagree with this sentiment, which I respect, but that is what I feel for the time being. Let me emphasize that none of those are inherently “bad”, it’s just not where I assumed I could be today after I launched into this journey with all of you almost a yr ago. After introspection, I’ve also noticed my interest and excitement waning, and my intrinsic motivation decreasing. Personally, this isn’t where I would like to be so — I even 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 turn into 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 comparable to the output of 126 danish homes for a complete yr. This doesn’t even cover the price of obtaining and labeling massive amounts of information. At this point, there isn’t any 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 any 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 most important 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 attributable to unprofitability when the hash rates overwhelmed other PoW chains. This compute still exists, but stays untapped. Can we in some way capture this network for AI?

Given my expertise in each machine learning (ML) and blockchain technology, I even have gained unique insight into a perfect convergence of the 2. I’m excited to share a research project I even have been working on, a Cosmos Proof-of-Stake machine learning application specific chain that decentralizes the ability of AI. I even 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 offer access to state-of-the-art machine learning models for anyone interacting with the blockchain. I even have been in a position to repurpose my Ethereum miners by upgrading the RAM and SSD disk space (the 1x PCI-E risers are fantastic). With interchain block communication (IBC), and interchain accounts, LUNC users may 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 among 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 might be used to perform large scale distributed learning across many nodes. We will 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 shall be especially vital to think about 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 recent 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 celebrities align, I foresee LUNC could turn into a Chimera blockchain cryptocurrency that could be a mixture of fat/app, meme/utility, and ML/Cloud/Blockchain that has never existed before, with an enormous utility value proposition. The great thing in regards to 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 even have been in discussions with others in the neighborhood about how you can rapidly innovate using a side chain connected to Terra Classic. We will quickly prototype applications or dangerous algorithms in a controlled sandbox and hook up with Terra Classic via IBC. I even 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 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 among the core contributors and the broader community about best practices and basic corporate structuring to be certain that we will operate efficiently while maintaining our decentralized structure. Because there isn’t any centralized authority, the legal representation of the DAO will should be structured in a decentralized, democratic, and highly collaborative way.

As mentioned before, internal structures and teams have been arrange to construct the muse, but with the recent developments within the regulatory environment, it has turn into increasingly vital for Luna Classic to align its internal structures and proposed ideas to the external world. We imagine 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 shall 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 shall be shared later this week.
5. Gain consensus from the community on legal representation.
6. Iterate and Innovate to search 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 long run takes us.