Pika Protocol Unveils $PIKA Token

Quick Take

• EIP for execution layer triggerable exits.
• Pika Protocol unveils its $PIKA token.
• Aragon cancels plans for Aragon DAO.
• Arbitrum One generates over 3,000 ether in fee revenue.

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Optimism Highlights 🔴✨

Pika Protocol Unveils $PIKA Token
Pika Protocol, a derivatives exchange native to Optimism, unveiled its $PIKA utility token, which will be released during a token generation event (TGE) on May 23rd. Users will be able to stake PIKA to access trading fee discounts. The protocol also plans to use PIKA as a gas token on its own chain that will be built on the OP Stack. PIKA will have a total supply of 100 million with an initial circulating supply of 19 million. The team has allocated 19% to the TGE, 30% to future rewards, 20% to growth and DEX liquidity, 20% to core contributors and advisors, and 11% to retroactive and future airdrops. Early users of the protocol have also been whitelisted for the TGE. Notably, the allocation does not feature VC or investor allocations as Pika Protocol has been fully self-funded. The protocol will also have an esPIKA token, which is non-transferable and locked for 1 year. Over the coming months, Pika plans to work on the launch of its v4 upgrade and an NFT perpetuals exchange.

Optimism Transaction Delays Post-Mortem
Optimism published a post-mortem on a degraded service incident on April 26th that resulted in transaction inclusion delays for users. A 10x increase in the rate of transaction requests, from 8 TPS to 95 TPS, led to issues such as rate limit errors and reverted transactions. Optimism cited a flaw in the pre-Bedrock system, in which a read-only copy of OP Mainnet, known as a replica, is unable to keep up in indexing new blocks created by the sequencer during the high throughput. As a result, there is a delay between the sequencer creating new blocks and the replica indexing them during high throughput. Optimism routes read-only requests to a replica to protect the sequencer against traffic spikes. The sequencer is then able to focus on processing write requests, which require more computational resources. Optimism says the Bedrock upgrade, which introduces 2-second blocks, will fix the issue from an architectural perspective.

EIP-7002 Execution Layer Triggerable Exits

Ethereum core developer Danny Ryan introduced EIP-7002, a specification for execution layer triggerable exits. The EIP would allow validator exits to be executed with 0x01 withdrawal credentials. Currently, validators have two keys, including an active key and a withdrawal credential. The active key remains hot while the withdrawal credential can remain cold until exit. However, only the active validator key can initiate a validator exit. EIP-7002 seeks to solve custody issues where an active key owner can hold the stake hostage as well in the event of lost active keys. With the EIP, only withdrawal credentials are required for validator exits. The EIP is especially helpful for LST and DVT staking protocols.

Aragon Scraps Plans For Aragon DAO

Aragon, a project that provides infrastructure for DAOs, has scrapped plans for the launch of its DAO. Instead, Aragon DAO is being repurposed into a grants program. The project claims Aragon DAO came under a coordinated 51% attack by a group of its token holders that are capable of reaching a majority vote in the Aragon DAO. Aragon says the group seeks to access the Aargon DAO treasury for their own financial gains. In 2017, Aargon raised $25 million in an ICO for its ANT utility token. The Aargon treasury has since grown to be worth over $200 million, which is worth more than the fully diluted market cap of its ANT utility token. wANT token holders will now govern the Aragon Grants DAO.

Arbitrum DAO Generates 3.3k ETH In Fee Revenue

Arbitrum One has generated over 3,300 ether in transaction fee revenue, consisting of 2,700 ether from L2 fees and close to 600 ether from surplus L1 fees. Since the sequencer pays for L1 transaction fees, users must pay for their transactions in advance. Any surplus transaction fees not consumed by L1, as well as all L2 fees, are collected and allocated to the Arbitrum DAO.