Terra talks to the two founders of the Avalanche Agreement: parallel universes meeting

Headline: Fireside Chat: Strategically Aligning L1 Towers

原文作者： Do Kwon（ Terra 创始人 ）&  Emin Gun Sirer（ Avalanche 创始人 ）

0x711, 0x22D, JFY, BlockBeats

As Terra's vast financial empire began to rapidly expand outward, the stability of the native Stablecoin became more and more important. After announcing the introduction of Bitcoin as a reserve for UST, founder Do Kwon announced on April 8 that AVAX will also be a reserve for UST, and like LUNA, UST will support native casting on the Avalanche chain.

Decentralized Stablecoin is a large experiment, and the running of UST also makes other public chains see the possibility of their own stability, while Avalanche chooses to directly use UST, which is indeed a scenario that many people have not thought of. In a Twitter Space on April 13, Terra founder Do Kwon and Avalanche founder Emin Gun Sirer shared the story behind the union of the two universes. BlockBeats has done listening translation, hoping to help readers.

TL; DR

· UST chose multiple reserves to build confidence outside Terra's ecology;

· UST and Avalanche are mutually selective;

· Avalanche's subnet is very attractive;

· Casting and redemption between AVAX and UST is asymmetric;

· How to promote UST use in Avalanche ecology and subnets.

The following is the full text of the dialogue

The host:Let's start by talking about the partnership announced last weekend and what it means for both Avalanche and Terra ecosystems. I think this collaboration will bring the two communities together to further advance the adoption of blockchain technology in a new way. This partnership is the first of its kind in the industry, so a lot of people are very excited about it and want to know more about the details of this partnership.

Hopefully we'll have a lot of great things to talk about today, and thank you for joining us. So, the first question is for Do Kwon. Over the past few weeks, you have done a lot of interviews and talk about your plans to buy BTC as UST reserves, and now you are working on diversifying UST reserves.

Talk about the decision to diversify reserves and how it's going to evolve, and then we'll dive into how Avalanche and AVAX fit into the plan.

Do Kwon:Well, the decision is easy to understand. It's like tryingMaster the languages of different countries. From the beginning, bringing stable use cases was one of Terra's main goals. This is not only because the use cases we initially built showed fairly low volatility, but also because they were primarily used for Terra chain and then served their own DeFi ecosystem.

LUNA is a very good collateral for users in the Terra ecosystem who have great faith in LUNA because it is the primary pledge asset of Terra Chain. But from our point of view, I think.UST has the potential to be not just a Stablecoin for Terra ecology, but a decentralized currency that spans all blockchains, similar to the role that USDC and USDT play in the realm of centralized Stablecoin.

Crypto should have a sovereign currencyThis is absolutely good for all ecosystems, and the sovereign currency should be backed by industry-leading assets. To do this, it makes sense to diversify reserves into assets like Bitcoin and AVAX. Bitcoin provides UST with the neutrality that a single ecological asset cannot provide.

Therefore, as we build more and more bitcoin reserves, not only is the economic risk of UST reduced, but it also means that users of UST outside of Terra have more confidence that UST is backed by an asset that is neutral to all ecologies.

This collaboration also makes sense for Avalanche as we have a big plan for how to increase UST adoption at Avalanche. UST's growth also helps inspire other parts of Avalanche's ecosystem. Because UST on the Avalanche chain is endorsed by AVAX, soAs UST grows, the supply of AVAX will decrease.

Emin gnu Sirer:I can add to that. I think it's pretty clear to everyone that we're moving towards a decentralized world, and cryptocurrencies are at the forefront of that path. In the world of cryptocurrencies,We need units of account, we need measures of value that are relevant to the outside world.

Now, we call something that provides that a Stablecoin. There are a lot of stablecoins, fiat backed ones, Tether's USDT, Circle's USDC, etc. They're great in many ways, but at the same time, they pose a unique kind of risk. The biggest risk they take is that instead of decentralisation, they have a reserve vault controlled by a very few people. onlyA subpoena could wipe out the value of an entire asset class.

This is indeed problematic. So in a decentralized world, we need a decentralized Stablecoin. What Do Kwon just said is that UST was born for this purpose, and it provides a pricing method that no power can control. It is completely and truly decentralized, so we say UST is a stable currency suitable for Crypto. I thought it was a great exploration, so I was very excited when opportunities and ideas came up, and thank you for contacting me.

Host: Guys, how did you get talking? I'm sure everyone wants to know how these two ecosystems are connected.

Do Kwon:We've been looking at a lot of different ways to get into the Avalanche ecosystem, and we've had some success. We've been working with various teams in the Avalanche ecosystem like BENQI, Trader Joe, Pangolin. We also launched some of our own apps on Avalanche, such as Anchor. And, of course, upcoming applications like Nebula.

One of the consistent feedback we heard in the Avalanche ecosystem was,They want a Stablecoin, endorsed by Avalanche, and has at least two endorsement assets, more neutral and reliable.

So the idea and decision to increase bitcoin margin and AVAX margin was actually formed by listening carefully to the feedback from the front line.

So that's how we started the discussion. First, we discussed how to better align incentives with the Avalanche ecosystem. Then there are a lot of questions, like what types of teams do we need to talk to? How can we design a reserve plan with the Avalanche ecosystem and the Foundation? That's how we're going to get this done together.

Emin gnu Sirer:Do Kwon, I don't know if you remember our first conversation, but I remember it very, very clearly because I was frozen. It was a very cold night in New York, I was having dinner with a group of friends, and our jet lag was affecting the conversation.

When we started this conversation, it was 8:00 p.m. on my side and like 8:00 a.m. on your side. I had to go outside to make a phone call because it was cold so I was shaking and my jaw was clenched. But I'm really excited becauseIt will be a combination of two parallel universes, Terra and Avalanche, two different kinds of knowledge and technology coming together to create something that really fits the Crypto realm. We try to put together what we have and create something that is greater than any part of it.

Host: When you talked about how two parallel universes, two parallel ecosystems, come together, both of you talked about the importance of community and the importance of enabling everyone in that community to succeed. What similarities did you see in trying to bring the developer and founder communities of the two projects together, and how powerful could it be to bring them together?

Do Kwon:I see a clear similarity:Synergistic effect. In talking to projects in the Avalanche ecosystem, I noticed a lot of enthusiasm, and a lot of community-driven innovation.

In a sense, projects are willing to provide tools and help each other because they want the entire ecosystem to succeed. It's not because there's a direct financial interest or incentive, and it doesn't make it any easier to raise money. Even when projects overlap in some functions, they are helping each other improve rather than holding each other back.

When that happens, the ecological success will come. We also see builders with similar values in Terra ecology. They want everyone working towards a common goal, not undermining each other. This is hard to come by these days, with money and VC fever sweeping the Web3 space.

Here's what I understand about Avalanche's concept, which is one of the reasons I love Cosmos. In every bull market, someone calls for reining in inequality, but in every bear market, we forget about it. I think of a blockchain as a city with a green belt around it. To expand, you have to move to a satellite city where more buildings can be built. Now in any sufficiently reliable distributed system, the space of a block is limited, and even if you put 100 stories of skyscrapers in each block and expand vertically, the ground will always fill up. The other way to scale is to scale horizontally, as all modern computing systems do.

Cosmos has the SDK, IBC connects a lot of things together. Avalanche doesn't have a vertical expansion plan yet, because the consensus is that Avalanche'S C chain is pretty good.Avalanche's current way of scaling is to build subnets for different applications and scale horizontallyI have seen some success stories. The DeFi Kingdoms subnet is a good proof of concept that demonstrates the viability of the technology.

If the DeFi Kingdoms subnet does well over the next few months, it will be a direct message to publishers and Indies around the world:Avalanche is a high performance chain that you can use exclusively for your own games without having to share limited block space with Puss, NFT airdrops or the like.

So I think Avalanche's vision to expand and attract 100,000 new Web3 developers is pretty compelling. We want to be one of the leading decentralized currencies in Avalanche's future.

Emin gnu Sirer:We're so happy to have you, Do. Then I'll talk about our philosophy. There are several different things that conspire to make our partnership work. As far as I know,Such cooperation is unprecedented in Crypto. One of the most important factors behind this collaboration is the team behind Terra. We've been watching Do and his team for a long time.

We've been watching their rapid rise, and we know that Terra has something that only a handful of Crypto projects have, namelyThe ability to execute, solve problems and deliver resultsThis is the most important thing. However, my heart broke when I heard that you were based on Cosmos. I really wanted you to work above us. At that moment, I would do anything to make you choose Avalanche. What happened was actually quite simple, as we worked very hard to find a way for Terra to deploy and work on Avalanche.

The second thing that brings us together is the algorithm Stablecoin problem. The algorithm Stablecoin is a very difficult problem, and many people are very hostile to it and think that the problem is unsolvable. There was a group of people who thought the scalability of blockchain was also insoluble, and they questioned Avalanche, saying Avalanche's mechanism would never work.That seems ridiculous now, because they were later proved wrong. Avalanche and Terra have both been questioned in the past.

Terra actually works well together on a different basis because its ecology is different from Avalanche's. Terra has a different set of mechanical assumptions, different builders, but not very different in overall spirit. Terra is a bit like our cousin, sharing the same values and being part of the family, albeit slightly different.

So, when the idea of collaboration came up, Ava Labs (Avalanche developer) of course wanted to work with Terra, which would break the mold. We were very, very excited because we had the ability and opportunity to bring two communities together and build something new together that had never been done before. Of course, I won't go out of my way to repeat decentralized Stablecoins, because this synergy can build much more.

Do had promised to buy $1 billion worth of Bitcoin, and he did. He then bought another $3 billion worth of bitcoin, with the possibility of buying more, which is also exciting.

So we don't see this as a one-off event at all, on the contrary,This is just the first step in building a partnershipStep. For reserve reserves,We offer AVAX, which has some very bitcoin-like properties, also capped, and gives you access to the vibrant DeFi ecosystem. In turn, we get the largest Stablecoin algorithm. So the relationship is fantastic, and I can't wait to see what happens when the community comes together.

Host: Yeah, that's just the beginning. Do, can you talk a little bit about how AVAX became part of the UST reserve? How do I put AVAX into the reserve pool for UST? What does the model look like?

Do Kwon:The model mechanism is relatively easy to understand, and you can think of it as a virtual AMM.

At any point in time, a user who wants an UST on the Avalanche C chain can trade $1 worth of AVAX into the AMM for $1 worth of UST, and vice versa. As more UST are cast, the virtual AMM will contain more and more AVAX. When you want to exchange your UST for AVAX, you can get 99 cents worth of AVAX for your $1 UST. The reason for the asymmetry between casting and redemption is because we want to make sureReserves are only used when Stablecoin goes down.This asymmetry ensures that you can't arbitrage reserves all the timeAnd only use it to cast and redeem Stablecoin.

This mechanism has some properties. First, if you try UST and AVAX, it creates a native casting and redemption mechanism at Avalanche, which is handy becauseYou don't need a bridge anymoreNo longer need to cross this chain or that chain to operate. This subtracts several steps, which is very useful. Second, with regard to net worth, if UST utilization on avalanche grows, there will be more and more AVAX in the reserve pool. From that perspective, it helps to combine the Stablecoin incentives with the ecology that hosts it.

Emin gnu Sirer:I'm going to talk about what this really means to the average person. This allows people to own AVAX all the time, if one likes AVAX they can cast it into UST and then use UST in DeFi applications such as earning revenue on Anchor. They can use UST for any purpose, just like using dollars, they can use it to buy anything they want, but of course users must bear the risk involved. Casting AVAX as UST is definitely an interesting opportunity for those who want to explore DeFi.

Do Kwon:You can think of it as a kind of trade route, or a diplomatic channel established between two different countries. On-chain projects have many similar attributes to nations. That's why many of them call themselves dYdX Nation, Sushi Nation, Frog Nation, etc. It's an exaggeration, of course, but there's something in common. So another way to think about the Terra ecosystem is that our biggest outlet [in the decentralized crypto world] is the Terra Stablecoin, the decentralized currency. For example, if an American wants to sell Hollywood movies in another country, if that country has a lot of pop stars, then business will be better.

Host: Do you think there are more solutions to Stablecoin stability? Could Stablecoin drop anchor in the future? How does having a reserve of assets other than Bitcoin help Stablecoin stability?

Do Kwon:Good question. People talk a lot about how the algorithm Stablecoin works, but very little about the economic power behind Stablecoin. If you look at how central banks operate around the world, the dollar is the least value-backed currency in the central banking system, at least from an institutional point of view.

The intuitive point is that the Fed does not maintain reserves in different currencies, although there are some, but on a relatively small scale because they do not need to. Many of the weaker economies, however, have much higher reserves, but no one thinks their currencies are as important as some currencies like the euro or the dollar, which suggestsMechanisms cannot solve the currency problem completely.

The dollar is not strong because the people who work at the Fed are the smartest. (I think the monetary regimes and policy leaders are very similar for the most part.)It's because America's underlying economy is stronger.

So I think what really matters to Terra is the current health of the Terra ecosystem, whether the App is decentralized enough, whether the ecosystem is growing, and how Terra UST can grow and adopt in different chains. From this perspective, it is my opinion that it will be of great help to Terra's ecology as well as to the diversification of UST reserves as to whether AVAX should be added as a reserve asset. What's more, through this partnership, we can see a faster-growing UST in an avalanche ecosystem.Working together makes the two ecological economies stronger, and that's what we want to achieveThe target.

Emin gnu Sirer:Yes. I have reason to expect this to happen. But the Stablecoin story is still being told, and it's very early days. You were talking about the central bank, the state-issued Stablecoin, and the central bank passed up the opportunity to play a leadership role in this area. About a year ago, China realized the importance of blockchain and began to develop and promote CBDC. In the near future, I think the existing players will become the emerging players, and UST is currently leading the way in this field.

The host: In the best case, UST adoption and usage can grow exponentially as a result of this partnership, far beyond anyone's imagination.

So Do, when you're considering which blockchain ecosystem to partner with, Do you think you've come up with some ideas at Avalanche that could further drive adoption and adoption across UST chains? Stablecoins for interacting with different protocols and making payments, stablecoins for different transaction mechanisms, and so on.

Do Kwon:I think the first step is to align incentives and make sure goals are aligned, and the second step is that Terraform Labs needs to make a big effort to figure out what can be done to help grow the Avalanche ecosystem. Basically, we think the Avalanche economic ecosystem is growing faster than other projects. One way we can make sure this relationship grows faster is to help its economy grow faster.

So, recently we've announced thatAccept UST's Avalanche projectWill be part of platform Capital's brand initiative. This means thatWe will fund the audit work, as well as the initial start-up costs of the release of the agreement. The idea is to help the Avalanche project and ecosystem eliminate some of the flawed protocols and offset some of the initial costs early on, which means it can be optimized for a more community-based fair launch to avoid unnecessary economic costs. We are pushing this forward and believe it will be very helpful for Avalanche.

Second, we're also integrating a suite of Terraform Labs supported apps for Avalanche, such as Nebula Protocol for passive asset management. The protocol defines a top-level asset cluster for different blockchains. Covering Avalanche means there will be a basket of assets for that ecosystem that users can easily trade to place targeted bets on Avalanche. I think Avalanche's app space will get a lot of attention. And this anchoring form of revenue agreement is already on the ground. We are working to simplify the user experience and service the native use cases with obligations. We love working with the best builders of the ecosystem and helping them achieve even greater success.

I think even if you have USDT or USDC on hand, you should try to hold decentralized stablecoins to hedge against all kinds of risks. If not now, maybe in two years or three or five years.

Host: Good point. Avalanche certainly has a lot of work to do, and there are plenty of great ways to integrate UST into existing protocols or new projects that will be launched soon.

Do, when you announced the partnership, you tweeted, "Web3 will run on multiple chains, including many Avalanche subnets." I believe subnets are a technology that is really coming to fruition. What do you think about subnets?

Do Kwon:I'm excited about Avalanche because it will make it easy for people to start their own block Spaces. The current mainstream blockchain networks are great, but people have to share their block space with others on these networks. This means that when something dramatic happens, such as an airdrop, the network gets crowded. This is unacceptable for other applications running on the chain, as those games typically have a large audience and relatively small amounts of money to deal with. It's not hard to imagine Web3 games with 5 million or 10 million daily active users. And in response to that, theyNeed their own dedicated block space, can not be shared with others, otherwise the quality of service cannot be maintained.

I just spoke with the founder of a game company in Seoul whose game has 1 million daily users, and he was telling me how important network performance is for a major game company. So it's really important to have your own blockchain and be able to extend it.

Because Avalanche's performance is outstanding, some of its subnets make sense. In addition, just as users can own their bandwidth, they can customize consensus mechanisms to perform work in many different ways without adhering to a single technology stack.

Emin gnu Sirer:I'm glad to hear that. As a core member of Avalanche, I'd like to add that what actually got us on the road to Avalanche was the breakthrough in consensus protocol.We have the fastest consensus agreement in the world, but also the most decentralizedIt can accommodate millions of verifiers within the protocol itself, and all of these verifiers play a role in every decision. The pursuit of vertical scaling is what drives us.

We introduced the concept of subnets to allow for horizontal scaling. And I have to say, one of the rarest things in this field is to have a clear mind and a proper system of thought for evaluating distributed systems or economic activities. There is a lot of useless information and bad systems that lead people down the rabbit hole.If you choose the wrong system and end up sticking with weird technical features, you can make the network impossible to scale or produce anything effective.I'm not going to go through all the wrong things, but many of them are familiar. For example, some people are pushing fully centralized projects that either don't have a way to detect and respond to fraud on their systems, or they can't scale because they end up sharing the same hardware or some key bottleneck hardware with other chains.

The starting point is very important. If the first step is wrong, the next step will be wrong. That's how we managed to build Avalanche, the fastest blockchain in the world.

It's great to have a partner like you, Do.Stablecoin algorithms are very difficult to implement, and it is extremely difficult to have a currency that will hold its value in all kinds of market corrections, which requires actual success. It's great to have a partner who has done it successfully.

I didn't have a chance to chime in before, but I actually wanted to say that the first thing we're going to do isTreat UST as money, build it, use it, and increase its utilization in our ecology.

The other thing we want to do is explore what we can do in subnets. As Do mentioned, we can customize the solution, and we can bring in millions of new users. We can do this by separating out different games, subnets, and uses. So it's going to be an exciting future.

Host: Yes, the future must be exciting, we will see. Some information from Twitter and other sources suggests there may be a game subnet at Avalanche. Can WE talk about it?

Do Kwon:I spent a lot of time in Seoul, and there are a lot of big game companies in Seoul, one of the highest concentrations of game companies in the world. South Koreans are avid gamers. I was addicted to it when I was in high school. Given that some studies suggest that up to a third of South Korea's population either owns or trades in cryptocurrencies, the appeal of the game could be enhanced by combining it with Web 3, a highly visible part of the cryptocurrency space. That's why every game publisher in the country is rushing to release Web 3 games.

I think it's interesting that we've been talking to some of these game publishers about using UST, KRT, or other different types of Stablecoin to allow in-game transactions, which would be very attractive. Because we support many different types of Stablecoins and provide apis and SDKS to support use cases for many different currencies.

From a game developer's point of view, this is particularly useful because it solves two problems. First, it allows publishers to release games to a global audience. Stablecoin is not the same in each country. And we have a multi-stablecoin system, where different stablecoins are anchored to a variety of different things, which definitely helps with that.

Second, if you're launching in the crypto space, it's especially helpful because if you're doing traditional mobile games, you knowGame developers pay a large fee to platform providers, such as Apple's iOS Pay. This can be avoided if the game developer executes the transaction on a script.So what's needed now is to come up with compelling technical structures that game companies can actually build.

I think if we could get one of these Web3 games to launch on avalanche subnets, using UST and other Stablecoins as payment and transaction methods, it would be the best example of this partnership in this situation. If this experiment is successful, we can replicate the experience and improve the use cases a lot.

Emin gnu Sirer:If I may interrupt, this is interesting. I've been fascinated by programmable games for a long time. Some of you in the audience will remember that you used to be able to get into an MMORPG using programmable code, you could design your own weapons and upload your own code. But you can't just make an atomic bomb that kills everybody, you have to make trade-offs and so on. So what we're actually seeing is studios themselves trying to make a hit game, wandering around, and then crashing, and they're just making this stuff. From the user's point of view, the experience is not great.

You'll end up stuck in a few games, making sure you're always having fun. You have to make sure you don't get stuck with a small number of users. It's a survival of the fittest, and because of the Matthew effect, where you have to play the same game that all your friends play, only a few popular games will survive. But with the advent of blockchains and the ability to upload code, and the ability to build virtual machines that can execute code safely, and with the emergence of different styles of games, there will be possibilities for different types of games written by different people to communicate with each other. I think a lot of games actually look similar, but anyway, if you're in Zelda's world, Mario's world is irrelevant to you.

These emerging genes are clearly compatible with each other,Blockchain lets you build things in one universe and take them to another. The opportunities are enormous. So right now, I think we're seeing the first games. They have economic systems, but maybe the economic systems are not very advanced or complex, and they will eventually have the collapse and economic problems that you see in small countries. I think we'll try to overcome those issues and build a more stable dynamic in the economics of the game itself. We'll see these games of the same genre start to share space on the same chain in order to move elements from one game to another.

And most of all, for a tacky person like me,I'm looking forward to the day when "we can upload and customize certain features of our games". So it's just an exciting new field. To participate in some of that evolution, it's a huge opportunity for all of us in our community.

Host: I think there's going to be a lot of changes over the next year or so: the building of games, the building of economic models, and I think the integration of UST is going to be critical for those gaming ecosystems. I think subnets are the perfect place to be, so really looking forward to seeing how UST will come into play. We are looking for more opportunities on how to grow. And I know beyond that, you talked about more Terra ecosystem projects and agreements being deployed at Avalanche, are there any specific projects or platforms that you're excited about? It's the most popular topic in the community, people are asking questions on Twitter.

Do Kwon:There are some projects in the works, but I want to talk about something new. As we all know, Terra is a huge Web3 ecosystem and we will have a lot of innovative use cases. In the future, for example, you might be able to import your NFT into your profile picture, then like each other, and once you link to your wallet, it will turn into a 3D avatar. You can then use it to interact with other characters in 3D space. When you first enter, it's a bit like a street; As you enter each building, you enter a different virtual world, and you program each of those sub-worlds. So developers can create one of these buildings as a mini-arcade game, just like you did when you entered. Or it could be like a store where you can browse for different types of homogenized Token or NFT goods. Avalanche will be able to support an entire NFT system and allow instances to be deployed in the ecosystem.

There are also many interesting DeFi programs, such as PRISM Protocol, which basically takes any earning asset and mints it into a structured Token that generates a monthly return; On the other hand, if you want to make a directional bet on the yield of a specific yielding asset, then you can sell pToken and buy more yToke, so you have leverage; If you only want access, you can also sell yToken and just bet on P. All of this makes DeFi more rational, as you allow people to place directional bets on the return on their principal or on the price rising. So I think it's really interesting.

Host: It would be exciting to see those things. The eco-collaboration at Avalanche will bring a lot of new innovations, some of the game content and 3D avatars you mentioned are really interesting, and everyone is excited to see how some of those things will evolve and come to fruition. I have one last question left, and then I think we'll take a few minutes to answer some questions from the audience. Another question we got from Twitter is this sounds like the initial phase of adding AVAX to UST's reserves, so what are the mechanisms for buying more AVAX as reserves in the future?

Do Kwon:Depending on the end use of reserves, we are looking at how to develop the reserve process. We are currently in the late stages of specification development, the initial type of the current specification can be found on our developer forum, and we have published the current mechanics in the community, including how to cast UST and redeem AVAX. I encourage everyone to check it out. For casting instructions, both BTC and AVAX have a specification document which I think is very interesting.

At the same time, we put the AVAX we purchased into the working capital pool, and since it is not yet an all-collateral reserve mechanism, there will still be liquidity in it, and we will conduct in-depth tests against liquidity. But I think it's going to be a gradual process. I think in a few months we'll have the reserve up and running so that users can use it.

Host: Thank you for your answer, but if you have a chance to read the spec document, you will see how this mechanism is built. We have a few minutes to answer a few questions from the audience, and I'm sure everyone has a lot of different questions about both projects. We want to focus on this particular partnership in the mechanism being built.

First guest:Hey, thanks for letting me in. I'm going to ask you some questions about Avalanche subnet. Specifically, UST is a very unique and interesting system, Stablecoin is an interesting pillar of value, and can even establish the economic structure and payment structure for the entire city government.

I wonder if Avalanche subnets can integrate the local administration's transaction system so they can create their own subnets for their own local currency, transfers, payments, etc.

Emin gnu Sirer:That's a good question. I lived in Ithaca, New York, for many years. Those familiar with local currencies may have heard of the Ithaca HOUR, a local currency. While I'm in Ithaca, I can use Ithaca to pay my gardener, and then he or she can also ask you to spend an hour helping them with their laptop or whatever. Yes, the local currency is fantastic and can even do wonders for the community. I have a lot of interesting stories about the early governance of Ithaca, but I won't go into them at length.

What I'm trying to say is,Any new financial link we establish is not independentThe core mission of any new platform that anyone comes up with is absolutely critical, not just to enrich the one Token it builds, but to create a platform for others to create digital assets. That's what we built at Avalanche and that's our tagline. The Internet digitizes everything, and I think the thing that comes with thatGive everyone the ability to create their own digital assets.

We've certainly talked to all sorts of people who are excited about local currencies, and talked to a few places about issuing their own tokens, all over the world. But I can say that there is a lot of regulatory uncertainty, and what ends up happening is often forcing local administrative systems to think about fiat money, and the pressure comes from official differences, and the considerations at the top are different from those at the bottom.

And because of that tension, regulatory issues are very real, and if you are successful in some small jurisdiction in any country, you are likely to run afoul of the centre. The central government has the power and ability to shut down your network.

So it's a very fascinating area that I personally find very, very interesting and in line with my values, namelyBuilding things for people, building things for the counter culture. But at the same time, I was in trouble, and I was happy to do something. As you pointed out in your question, subnets have excellent infrastructure. They allow you to have a separate set of validators, and aside from needing to be connected to the Avalanche network to work with other people and tools, no matter what rules you have, they don't force you to make technical decisions. So it's a fairly lightweight design, and if people have ideas, I'm rapt, and the whole lab team is willing to help.

Second guest: I have a question, I want to know the decision process behind Terra choosing Avalanche, why not other Layer1?

Do Kwon:Avalanche is many chains, not one chain. Ha ha, just kidding. But basically, I think I explained the problem earlier.

I don't think there's any reason to deny it just from the solidarity of the builders currently active at AvalancheThe fastest growing public chain today is Avalanche. I think this trend will become more pronounced as more efficient Dapps start to come online. I think subnets offer an incredible opportunity to meet these needs in a way that doesn't require sharing block space with other applications. People like to customise their own services and infrastructure without being constrained by the performance of others.

Third guest: Still about the subnets, have you ever thought of UST as the Gas cost of Avalanche subnet? Or take a step further and offer virtual machines for Luna? Is there a plan to have a stable Gas Token?

Emin gnu Sirer:Good question. This is something we need to think about carefully, and we have provided some sample code for different virtual machines.

We now have many customized virtual machines that are even faster than EVM. I'm not sure if we've ever shipped a virtual machine for Gas, but more directly: People want to use their tokens for Gas, and we have some sample code for that, already public and soon to be public.

If you wish, you can write the same sample code and propose it in the community.Stablecoin is perfect for Gas because it removes the uncertainty and reflexivity of value and everything becomes more predictableSo I'd love to see subnets like this flourish.  

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