Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: Bitcoin mining is bringing work back to small towns

• 🔎 This seems important: Oooh, The SEC is in trooouble!

• 🤝 Partner: $47 million in artwork sales equals profits for these everyday investors​

• 🔪 Let's dissect this: DAOs are now giving out bonuses (kind of…)

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Fiat, DAO.

💅 This is cool:

How Bitcoin Mining Is Bringing Work Back To Small Towns in Texas…

In one sentence: Bitcoin mining operations are bringing jobs back to small towns in Texas, where overbuilt power stations (left over from past industries) mean cheaper energy.

Is cryptocurrency just silly internet money? Or is it a life changing technology?

…porque no los dos?

Sure, to the cynical eye — Bitcoin (and every other cryptocurrency in existence) is just a glorified shared Google Sheet, updating who-owns-what imaginary currency in real time…

That’s the ‘against’ argument ☝️

Now…

Here’s the ‘for’ 👇

At their core — all modern currencies (whether crypto or fiat), are tracked this way…however folks don’t value cryptocurrencies like Bitcoin because of their similarities to fiat, but because of their differences.

E.g. Bitcoin has no middle men (banks), cannot be controlled by any one entity (governments), and has a fixed supply (which means it tends to go up in value over time, instead of down).

Here’s a new angle that can be added to the ‘for’ argument👇

Buying and holding Bitcoin has done great things for many people over the years, but “The Big Empty” documentary by Will Foxley just highlighted a new avenue for Bitcoin to do social good.

(One that we hadn’t really considered yet).

Bitcoin mining operations are now looking to build mining operations in small towns around Texas.

Like the town of Spur, where most of the big industries are long gone, but have left behind overbuilt power stations, leading to cheaper energy.

(Which is like catnip for Bitcoin miners).

Towns like Spur don't often have many high paying or stable jobs, but BTC mining operations can often bring a hundred or so well-paid positions — both short and long term. Think: construction, maintenance, repair techs, security guards, etc.

Bitcoin mining: it ain’t much, but its honest work.

🥇 Want the news before anyone else?

🔎 This seems important:

Another Legal Win for the Crypto Industry (The SEC is in Trooouble!)

In one sentence: A US Court issued a comprehensive ruling that says the secondary sales of crypto on Coinbase does not constitute the sale of unregistered securities.

Our buddy Greg once got fired from GameStop for selling early copies of ‘Uncharted 4’ to his friend group, a few days before its official release.

His reaction went something like:

‘It sucked that I got caught — but I get it. Selling pre-release games to my buddies wasn’t exactly fair to the broader gaming community.’

There’s a parallel with Greg’s actions, and the way US courts look at the sale of cryptocurrency.

If its being sold publicly — we’re all good (most cryptocurrencies aren’t seen unregistered securities [think: unregistered stocks] in this case).

If its being sold privately — we’re going to have a problem.

That’s what was found in the SEC vs. Ripple (XRP) case.

XRP tokens being sold publicly, so holders can transact on the XRP network — totally fine. XRP tokens being sold privately to industry big-dogs, as a way to invest in Ripple (the company) — big no-no.

And that finding set a legal precedent, which is now leading to further legal wins for crypto industry players.

Wins like the one seen by Coinbase this past week, when the US Court of Appeals issued a comprehensive ruling that said:

The secondary sales of crypto (aka Coinbase selling crypto via its exchange platform) does not constitute the sale of unregistered securities.

(I.e. Coinbase isn’t “selling pre-release versions of Uncharted 4” — if you catch our drift).

On its own, this was a small win. But it’s one that should help Coinbase when they go head to head with the SEC later this year.

Nice!

🤝 Partner:

$47 Million in Artwork Sales Equals Profits for These Everyday Investors

Masterworks is taking on the billionaires at their own game, buying up paintings by world-class artists like Banksy and Picasso, and securitizing them for its investors.

When Masterworks sells a painting – like the 16 it's already sold – investors reap their portion of the net proceeds. Its investors have already received proceeds from more than $47 million in sales, realizing annualized net returns of 17.8%, 21.5%, 35% and more*.

Now, Masterworks wants to do the same thing for you. By qualifying every offering with the SEC, Masterworks makes it easy for everyday people to invest in multi-million dollar paintings. Offerings can sell out in just minutes, but as a trusted partner, Web3 Daily readers can skip the waitlist to join here.

_{*Past performance is not indicative of future returns, investing involves risk. See disclosures masterworks.com/cd.}

🔪 Let's dissect this:

DAOs Are Now Giving Out Christmas Bonuses (Kind of…Lettuce Explain)

In one sentence: AaveDAO wants to start distributing a chunk of the $60M in fees its lending service generates each year, to those who hold the $AAVE token.

AaveDAO is proposing ‘fee switches’, which is starting to look like a trend in the DAO space. 

It's like the crypto version of companies giving out Christmas bonuses.

Which sounds weird, so lettuce explain:

AaveDAO is a community-driven DAO (aka community owned organization) that loans out money for people to purchase cryptocurrency. What's crazy here is that AaveDAO has net profits of $60M a year as of now.

(That’s a solid business!)

Which is where Fee Switching comes in: 

All DAO’s collect fees in one way or another. 

Fees are used to pay for administrative tasks, coding & development, or for other ‘business-expenses.’ But when all costs are met, and profits are rising – fees could also be used to bolster the DAO’s longevity. 

For Instance: AaveDAO wants to reward its community for holding its token, which helps to stabilize price and sustain its economic health.

The upcoming proposal which (if voted through) would result in a chunk of fee revenue being re-distributed to those who hold the $AAVE token.

(The same way that, each Christmas, big companies take a chunk of yearly revenue and distribute it to the employees who helped generate it).

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Howey Test : Security vs Commodity