Original source: Twitter Space

Original Compilation: Rhythm BlockBeats

When Terra, a huge financial empire, began to expand rapidly, the stability of the native Stablecoin became more and more important. After announcing the introduction of Bitcoin as the UST reserve, founder Do Kwon announced on April 8 that AVAX will also become the reserve of UST. Like LUNA, UST will support native casting on the Avalanche chain.

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TL;DR

• UST chooses a variety of reserves to build confidence outside the Terra ecology;

• UST and Avalanche are mutual choices;

• Avalanche's subnets are very attractive;

• Minting and redemption between AVAX and UST are asymmetrical;

• How to promote the use of UST in Avalanche ecology and subnet.

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

Hopefully we'll have a lot of great stuff to chat about today, and thanks for joining. So, the first question is for Do Kwon. In the past few weeks, you have given many interviews and talked about many things around the plan to buy BTC as UST reserves, and now, you are working on diversification of UST reserves.

Let's talk about the decision to diversify the reserve and how it's going to play out, and then we'll dig into how Avalanche and AVAX fit into the plan.

Do Kwon：Well, this decision is easy to understand, it is like trying to master the languages ​​of various countries. From the very beginning, bringing stable use cases was one of Terra's main purposes. Not only because the use cases we built initially exhibited fairly low volatility, but also because it was primarily used for the Terra chain, which then served its own DeFi ecosystem.

For users in the Terra ecosystem, LUNA is a very good collateral, and they believe in LUNA because it is the main collateral asset of the Terra chain. But from our point of view, I think the potential of UST is not just to be the stablecoin of Terra ecology, but to become a decentralized currency across all blockchains, similar to what USDC and USDT play in the centralized stablecoin field character of.

Crypto should have a sovereign currency, which is absolutely beneficial to all ecosystems, and this sovereign currency should be backed by industry-leading assets. In order to do this, it makes sense to diversify reserves into assets like Bitcoin and AVAX. Bitcoin can provide UST with a neutrality that a single ecological asset cannot provide.

Therefore, as we build up more and more bitcoin reserves, not only does UST become less economically risky, but it also means users using UST in ecosystems outside of Terra have more confidence, because UST is backed by a It is a neutral asset endorsement for all ecology.

This partnership also makes sense for Avalanche, and we have big plans for how to increase UST adoption on Avalanche. The growth of UST also helps incentivize other parts of the Avalanche ecosystem. Because UST on the Avalanche chain is endorsed by AVAX, as UST grows, the supply of AVAX will also decrease.

Emin Gün Sirer：May I add. I think everyone is very clear that we are moving towards a decentralized world, and cryptocurrencies are at the forefront of that path. In the cryptocurrency world, we need a unit of account, we need a measure of value relative to the outside world.

Now, we call something that provides this a Stablecoin. There are many kinds of Stablecoins, which are backed by fiat currency, such as Tether’s USDT, Circle’s USDC and so on. They're great in many ways, but at the same time, they pose a unique kind of risk. The biggest risk they take is not to be decentralized, but to have a reserve vault controlled by a very small number of people. Just one subpoena can make this entire asset class lose its value.

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 provides a pricing method that cannot be controlled by any power. It is completely and truly decentralized, so we say that UST is a stable currency suitable for Crypto . I think this is a great exploration, so when the opportunities and ideas come up, I'm super excited and thank you for reaching out.

Moderator: Two, how did you chat? I believe everyone wants to know how these two ecosystems are connected.

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

A consistent feedback we heard in the Avalanche ecosystem is that they want a Stablecoin, endorsed by Avalanche, and have at least two endorsed assets, which is more neutral and credible.

Therefore, the idea and decision to increase the Bitcoin Margin and AVAX Margin was actually formed by listening carefully to frontline feedback.

That's how we started the discussion. First, we discussed how to better align incentives with the Avalanche ecosystem. Then there are many questions like what type of teams do we need to communicate with? How should we design reserves with people and foundations in the Avalanche ecosystem? That's how we've done it together.

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

When we started talking, it was 8:00pm on my side and it seemed to be 8:00am 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, because this will be the combination of two parallel universes, the Terra universe and the Avalanche universe. Two different knowledge and technologies are fused together to create something that is really suitable for the Crypto field. We strive to bring together what we have and create something greater than any part of it.

Moderator: When the two talked about how two parallel universes and two parallel ecologies merge together, they both talked about the importance of the community and the importance of enabling everyone in the community to succeed. What similarities did you see in trying to bring together people in the community of developers and founders of these two projects, and how powerful would it be to bring them together?

Do Kwon：I see an obvious parallel: synergies. In speaking with projects in the Avalanche ecosystem, I've noticed a lot of enthusiasm, and a lot of community-driven innovation.

In a sense, projects are willing to give each other tools and help because they want the entire ecosystem to succeed. Not because there's a direct monetary benefit or some kind of incentive, nor does it make it easier for you to raise money. Even if the projects overlap in some functions, they still help each other and improve together instead of holding each other back.

When this happens, the success of this ecology will come. We have also seen builders with the same values ​​in the Terra ecology. They want everyone to work toward a common goal, not undercut each other. That's hard to come by at a time when the money and VC rush is sweeping the Web3 space.

Let me talk about my understanding of the concept of Avalanche, which is one of the reasons why I love Cosmos. In every bull market, some people call for controlling the gap between the rich and the poor, but in every bear market, we forget about it. I think of a blockchain as a city with green belts around it. If you want to expand, you have to move to a satellite city, where you can build more buildings. Now for any sufficiently reliable distributed system, the space of a block is limited. Even if you build a 100-story skyscraper in each block for vertical expansion, the ground will always be filled. Another way to scale is to scale horizontally like all modern computing systems.

Cosmos has the SDK, it has the IBC to connect a lot of things together. Avalanche does not currently have a vertical expansion solution, because its consensus is very delicate and beautiful, and the performance of the Avalanche C chain is good enough. Avalanche's current expansion method is to build subnets for different applications and expand horizontally. I have seen some successful cases. The DeFi Kingdoms subnet is a great proof of concept that this technology is possible.

If the DeFi Kingdoms subnet works well in the next few months, it will be tantamount to telling publishers and independent developers around the world that Avalanche is a high-performance chain, and you can use it Dedicated to your own game without sharing limited block space with cats, NFT airdrops, or anything like that.

So I think Avalanche's vision of expanding and attracting 100,000 new Web3 developers is very convincing. We want to be one of the leading decentralized currencies in the future proposed by Avalanche.

Emin Gün Sirer：We'd love to have you on board, Do. Following your words, let me also talk about our philosophy. A few different things came together to make our partnership possible. As far as I know, such a collaboration is unprecedented in the Crypto space. One of the most important factors that contributed to this collaboration is the team behind Terra. In fact, we have been following Do and his team for a long time.

We've been watching their meteoric rise, and we know that Terra has something that only a handful of projects in the Crypto space have, namely the ability to execute, solve hard problems, and deliver results, which is most important. However, when I heard that you guys are based on Cosmos, it broke my heart. I was really hoping you guys would work on top of us. In that moment, I will do anything to make you choose Avalanche. What happened after that was actually quite simple, we worked really hard to find a way to get Terra deployed and working on top of Avalanche.

The second point that brings us together is the problem of the algorithm Stablecoin. Algorithmic Stablecoins are a difficult problem, many people are very hostile to it, and think that this problem is unsolvable. There was once a group of people who believed that the scalability of the blockchain was unsolvable. They questioned Avalanche, saying that the mechanism of Avalanche would never work. Such words look ridiculous now, because later reality proved them wrong. Both have been questioned, which is a commonality between Avalanche and Terra.

In fact, Terra can actually play a synergistic role based on different foundations, because its ecology is different from that of Avalanche. Terra has a different set of mechanical assumptions, a different builder, but not much different in the overall spirit. Terra is kind of like our cousin, with the same values, part of the same family, just slightly different.

So, when the idea of ​​cooperation appeared, Ava Labs (the developer of Avalanche) of course wanted to cooperate with Terra, which would break the existing pattern. We were very, very excited because we had the ability and the opportunity to bring two communities together to build something new 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 than that.

Do once promised to buy $1 billion worth of Bitcoin, which he did. Then he bought another $3 billion worth of bitcoins, and the potential to go on to buy more bitcoins, which is also very exciting.

So we don't see this as a one-off event at all, quite the contrary, it's just the first step in building a partnership. For reserve reserves, we provide AVAX, which has some properties very similar to Bitcoin, and also has an upper limit, allowing you to enter the vibrant DeFi ecosystem. In turn, we get the largest algorithmic Stablecoin. So the relationship is awesome, and I can't wait to see what happens when the community comes together.

Moderator: Yes, this is just the beginning. Do, can you talk about how AVAX is part of the UST reserve? How to put AVAX into the reserve pool to exchange for UST? What does this model look like?

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

At any point in time, users who want to get UST on the Avalanche C chain can trade AVAX worth $1 to this AMM to get UST worth $1, and vice versa. As more USTs are minted, this 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 worth of UST. The reason for the asymmetry between minting and redemption is because we want to make sure that the reserve is only used when the Stablecoin is down. This asymmetry ensures that one cannot always use the reserve to arbitrage and only use it to mint and redeem Stablecoins.

This mechanism has some properties. One, if you try to use UST and AVAX, it creates a native minting and redeeming mechanism on top of Avalanche, which is convenient because you don't need a cross-chain bridge anymore, you don't need to cross to this chain or that chain to to operate. This saves several steps and is very useful. Second, regarding equity, if UST usage on Avalanche grows, there will be more and more AVAX in the reserve pool. From this perspective, it helps align the incentives of a Stablecoin with the ecosystem that hosts it.

Emin Gün Sirer：I'm going to tell you what that really means to the average person. This allows people to always own AVAX. If a person is optimistic about AVAX, he can mint AVAX into UST, and then use UST in DeFi applications, such as earning income on Anchor. They can use UST for any purpose, just like using US dollars, and can use it to buy anything they want, of course, users must bear the risk themselves. Minting AVAX into UST is definitely an interesting opportunity for those who want to explore DeFi.

Do Kwon：You can think of it as a 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, or Frog nation, among others. Of course, it's an exaggeration to say this, but there are commonalities between them.

So, another way to think about the Terra ecosystem is that our biggest export (in the decentralized crypto world) is the Terra Stablecoin, the decentralized currency. For example, if an American wants to go to another country to sell Hollywood movies, if there are many popular stars in that country, then the business will be better.

Moderator: Do you think there are more solutions to the stability of Stablecoin? Is it possible that Stablecoin will unanchor and fall in the future? How does a reserve of assets other than Bitcoin contribute to the stability of a Stablecoin?

Do Kwon：good question. People always talk about how an algorithmic Stablecoin works, but very little talk about the economic power behind a Stablecoin. If you look at how central banks around the world operate, the dollar is the least value-backed currency in the central banking system, at least from a mechanical perspective.

It's pretty intuitive that the Fed doesn't maintain foreign exchange reserves in different currencies, although it does have some, but relatively small because they don't need to. Many weaker economies, however, have much higher foreign exchange reserves, but no one thinks that their currencies are as important as some currencies such as the euro or the dollar, which shows that the mechanism does not completely solve the currency problem.

The dollar is not strong because the smartest people work at the Fed. (I think the monetary mechanisms and policy leaders exercised by various countries are largely very similar.) Rather, it is because the underlying economy in the US is stronger.

So I think for Terra, what really matters is the current health of the Terra ecology, whether the ecological App is sufficiently decentralized, whether the ecology continues to grow, and how Terra UST can achieve growth and adoption on different chains. From this point of view, my point of view on the question of whether it is necessary to increase AVAX as a UST reserve asset is that this will be of great help to both the Terra ecology and the diversification of UST reserves.

More importantly, through this partnership, we can see a faster growing UST in an avalanche ecosystem. Cooperation makes the economic systems of the two ecosystems stronger, which is what we want to achieve.

Emin Gün Sirer：Yes. I have reason to look forward to the realization of this goal. But the Stablecoin story is still being told, and it's still very early days. You just talked about the central bank, the Stablecoin issued by the state, the central bank has given up the opportunity to play a leading role in this field. About a year ago, China realized the importance of blockchain and began to vigorously develop and promote CBDC. In the near future, I think existing players will become emerging players, and UST is currently leading the way in this space.

Moderator: In the best case scenario, because of this partnership, the adoption and usage of UST can grow exponentially beyond anyone's imagination.

So Do, when you consider which blockchain ecosystem to cooperate with, do you think on Avalanche, have you thought of some ways to further promote the adoption and usage growth brought about by UST cross-chain? For example, Stablecoin is used to interact and pay with different protocols, and Stablecoin is used for different transaction mechanisms, etc.

Do Kwon：I think the first step is to align the incentives and make sure the goals are aligned, and the second step is that Terraform Labs needs to spend a lot of time looking at what can be done to help grow the Avalanche ecosystem. Basically, we believe that the Avalanche economic ecosystem is growing faster than other projects. One way we can ensure that this relationship grows faster is by helping its economy grow faster.

So, recently we have announced that the acceptance of UST's Avalanche project will be part of the platform capital branding plan. This means we will be funding its audit, as well as funding the start-up costs of the initial release of the protocol. The purpose of this is to help the Avalanche project and ecology eliminate some defective protocols and offset some early initial costs.

This means it can be optimized for more community-based fair launches to avoid unnecessary financial overhead. We are moving forward with this and believe it will be very helpful for Avalanche.

Second, we will also integrate a series of app suites supported by Terraform Labs into Avalanche, such as the passive asset management protocol Nebula Protocol. The protocol defines top-level asset clusters for different blockchains. Covering the Avalanche ecology means that there will be a basket of assets in the ecology for users to easily trade and make targeted bets on the Avalanche ecology.

I think the application space of Avalanche ecology will get a lot of attention. And this anchored revenue agreement has also been implemented. We're working hard to simplify the user experience and serve obligatory native use cases. We love to partner with the best builders in the ecosystem and help them become more successful.

I think even if you have USDT or USDC in your hand, you should try to hold decentralized Stablecoin to hedge various risks. Even if it is not available now, it may be used in the next two or three or five years.

Moderator: Well said. Avalanche definitely has a lot of work to do, and there are many great ways to integrate UST into existing protocols or new projects that are about to start.

Do, when you announced the partnership, you tweeted: "Web3 will run on multiple chains, which will include many Avalanche subnets." I believe subnets will be a real fruition Technology. What are your thoughts on subnets?

Do Kwon：I'm looking forward to the Avalanche subnet, because that will allow people to easily launch their own blockspace. The current mainstream blockchain networks are great, but people have to share block space with others on these networks. This means that once something high-profile happens, such as an airdrop, the network can get very crowded. It is unacceptable for other applications running on the chain to have block space occupied in this way.

Because those games usually have a large number of users, while the amount of funds that need to be processed is relatively small. It is not difficult to imagine that some Web3 games with 5 million and 10 million daily active users will be born in the future. To cope with this, they need their own dedicated block space, which cannot be shared with others, otherwise the quality of service cannot be maintained.

I just talked to the founder of a game company in Seoul who has 1 million daily active users for one of their games, and he told me about the importance of network performance for a large game company. So, having your own blockchain and having the ability to scale it is really important.

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

Emin Gün Sirer：I'm glad to hear you say that. As a core member of Avalanche, I would like to add that, in fact, what got us on the road to creating Avalanche was a breakthrough in the consensus protocol. We have the fastest consensus protocol in the world, and at the same time the most decentralized, it can accommodate millions of validators into the protocol itself, and all these validators play a role in every decision. Pursuit is what drives us.

We introduced the concept of subnets to be able to scale horizontally. And I have to say that one of the rarest things in this field is to think clearly and have the right ideology to evaluate a distributed system or economic activity. There is a lot of useless information and poor systems that lead people down the rabbit hole.

If you choose the wrong architecture, and end up sticking with weird technical features, you can prevent the network from scaling, or producing anything useful. I'm not going to list all these wrong things, but many of them are familiar to everyone. For example, some people are promoting fully centralized projects, they either have no way to detect and respond to fraud on the system, or they cannot scale because they end up sharing the same hardware or some critical 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 why we managed to build Avalanche, the fastest blockchain in the world.

It's great to have a partner like you, Do. Algorithmic Stablecoin is difficult to implement, and it is extremely difficult to have a currency that can maintain its value in various market corrections, which requires actual successful experience to verify. It's great to have a partner who has done it successfully.

I didn't have a chance to interject before, I actually want to say that the first thing we have to do is to use UST as a banknote, build it in our ecology, use it, and increase its usage rate.

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

Moderator: Yes, the future must be exciting, we will wait and see. Some information from twitter and other sources suggests that a gaming subnet may emerge for Avalanche. can we talk?

Do Kwon：I used to stay in Seoul for a long time, there are many big game companies in Seoul, one of the places with the highest concentration of game companies in the world. Koreans are avid gamers. I used to be obsessed with it when I was in high school. Given that some studies have shown that as much as 1/3 of the population in South Korea owns or trades cryptocurrencies, combining gaming with the very high presence of Web 3 in the cryptocurrency space will increase the appeal of gaming. That's why every game publisher in the country is scrambling to launch Web 3 games.

Thought it would be interesting that we've been talking to some of these game publishers about using UST, KRT, or other different types of stablecoins to allow players to transact within games, which would be attractive. Because we support many different types of Stablecoins, and provide APIs and SDKs to support the use cases of many different currencies.

From a game developer's perspective, this is especially useful because it solves two problems. First, it allows publishers to distribute games to global audiences. Stablecoins recognized by users in different countries are not the same. And we have a multi-Stablecoin system where different Stablecoins are pegged to a variety of different things, which certainly helps with that.

Second, it will be especially helpful if you publish games on the crypto space, because if you do traditional mobile games, the game developer will pay a large fee to the platform provider. For example, Apple's iOS payments. This can be avoided if the game developer executes the transaction on the script. So what's needed now is to come up with a convincing technical structure that game companies can actually build these things.

I think if we could have one of these Web3 games published on the Avalanche subnet while using UST and other Stablecoins as a means of payment and transactions, then in this case it would be the best expression of this partnership. If this attempt is successful, we can replicate this experience and significantly improve use cases.

Emin Gün Sirer：Allow me to interrupt, this is interesting. I was fascinated by programmable games a long time ago. Some of you in the audience will remember you used to be able to get into MMORPG games with programmable code, and you could design your own weapons and upload your own code. But you can't just make an atomic bomb that kills everyone, you have to make some trade-offs and so on. So what we're seeing is actually studios themselves trying to make a hit game, hang around, and then cripple, and they just make this stuff. From the user's point of view, the experience is not very good.

You'll end up stuck in some games, make sure you're always having fun. You have to make sure you don't get stuck with a low number of users. It's survival of the fittest, where only a few hits survive due to the Matthew effect, where you have to play the game that all your friends play.

But with the advent of the blockchain and the ability to upload code, and the ability to build virtual machines that can safely execute code, and with the advent of different styles of games, there is a gap between different types of games written by different people. There will be the possibility of interoperability. I think many games actually look similar, but anyway, if you're in Zelda's world, then Mario's world won't be about you.

These emerging genes are obviously compatible with each other, and the blockchain allows you to build things in one universe and take them to another universe. The opportunity is huge. So at the moment, I think we're seeing the first games emerge. They have an economic system, but maybe the economic system is not very advanced or complex, and they end up with the kind of collapse and economic problems that you see in small countries.

I think we'll work to overcome these issues and build a more stable dynamic into the economy of the game itself. We'll see these games of the same genre start sharing space on the same chain in order to transfer elements from one game to another.

Most of all, for the cheesy person I am, I'm really looking forward to the day when "we can upload and customize certain features of the game". So it's just an exciting emerging field. It's a huge opportunity for all of us in our community to be a part of some of this evolution.

Moderator: I think a lot will change in the next year or so: the building of games, the building of economic models, and I think the integration of UST will be critical for these game ecosystems. I think subnets are the perfect place, so really looking forward to seeing how UST will play out. We are looking for more opportunities on how to grow. And I know beyond that, you talked about getting more Terra ecosystem projects and protocols to be deployed on Avalanche, is there any particular project or platform that you're excited about? It's also a topic that the community is most interested in, with everyone 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 many innovative use cases. For example, in the future maybe you can import your NFT into your profile picture, then like each other, and once you link to your wallet, it will become a 3D avatar. You can then use it to interact with other characters in 3D space.

When you first enter, it's kind of like a street; as you enter each building, you enter a different virtual world, and you program each of these subworlds. So the developers could create one of these buildings as a small arcade game, just like when you enter. Is it right? Or it could be like a store where you can browse different types of homogenized token or NFT items. Avalanche will be able to support an entire NFT system and allow instance deployment in the ecosystem.

There are also many interesting DeFi projects, such as PRISM Protocol, which can basically disassemble and mint any profitable asset into a structured token, and then bring income on a monthly basis; If you make a directional bet on the rate of return, then you can sell pTokens and buy more yTokens, so you hold leverage; if you only want access, you can also sell yTokens, and then just bet on p. All of these make DeFi more rational, because it's like you allow people to make directional bets on the return on principal or price increases. So I think it's really interesting.

Moderator: It will be exciting to see these things. The ecological cooperation on Avalanche will bring a lot of new innovations. The idea of ​​some game content and 3D avatars you mentioned is really interesting. Everyone is looking forward to how some of these things will be developed and realized. I have one last question left, and then I thought we'd take a few minutes to answer some questions from the audience. Another question we got from Twitter is that now sounds like the initial stages of adding AVAX to UST's reserve, so what is the mechanism for buying more AVAX as reserve in the future?

Do Kwon: According toThe end use of the reserve, we are looking at the process of how to develop the reserve. We are currently in the late stage of specification formulation. The initial type of the current specification can be found on our developer forum. We have announced the current mechanism in the community, including how to mint UST and redeem AVAX. I encourage everyone to check it out. For minting instructions, both BTC and AVAX have a specification document, which I think is interesting.

At the same time, we put the purchased AVAX into the liquidity pool. Since it is not yet a fully mortgaged reserve mechanism, there will still be liquidity in it, and we will conduct an in-depth test on the liquidity. But I think it will be a gradual process. I think in a few months we'll have a reserve mechanism up and running so users can use it.

Moderator: Thank you for your answer. If you have the opportunity to read that specification document, you will see how this mechanism is built. We'll then 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 that is being built. First one, Joseph, hello.

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

I was wondering if the Avalanche subnet would be able to integrate the local administration's transaction system so they could create their own subnet for their local currency, transfers and payments etc.

Emin Gün Sirer：This is a great question. I lived in Ithaca, NY for many years. Those familiar with local currencies may have heard of the Ithaca HOUR, which is a local currency. When I'm in Ithaca, I can pay my gardener with Ithaca hours, and he or she can equally ask you to spend an hour helping them with their laptop or whatever. Yes, local currencies are awesome and can even do wonders for the community. I have a lot of interesting stories about the early days of governance in Ithaca, but I won't go into great length.

What I want to say is that any new financial link we build is not independent, and the core mission of any new platform proposed by anyone is absolutely important, not just to enrich a Token it builds, but to serve others Create a platform for creating digital assets. That's what we've built at Avalanche, and that's our tagline. The web has digitized everything, and what I think comes with it is giving everyone the ability to create their own digital assets.

We certainly talked to various people who were excited about local currencies and talked to some places about issuing their own tokens, all over the world. But I can say that there is still a lot of regulatory uncertainty, and what happens in the end is often to force the local administrative system to consider the use of legal tender. The pressure comes from official differences, and the considerations at the top and the grassroots are different.

And because of this tension, the regulatory issues are very real, and if you're going to be successful in some of the smaller jurisdictions in any country, you're likely to run afoul of the center. The central government has the power and ability to shut down your network.

So it's a very fascinating field that I personally find very, very interesting and in line with my values ​​of building things that serve people, building things that are countercultural. But at the same time, being stuck, I'm excited to do something about it. As you pointed out in your question, the subnet has excellent infrastructure.

They allow you to have an independent set of validators, and they don't force you to make technical decisions, no matter what rules you have, other than needing to connect to the Avalanche network in order to operate with others and tools. So it's a fairly lightweight design, and if people have ideas, I'm all ears, and the whole lab team is willing to help.

The second guest: I have a question, I want to know the decision-making process behind Terra's choice of Avalanche, why not other Layer1?

Do Kwon：Avalanche is many chains, not one. Haha, just kidding. But basically, I think I've explained the problem earlier.

Just judging from the common solidarity of the builders who are currently active in Avalanche, I don't think there is any reason to deny that the fastest growing public chain today is Avalanche. I think this trend will become more pronounced as some higher performance Dapps start to go on-chain. I think subnets present an incredible opportunity to address these needs in a way that doesn't have to share block space with other applications. People like to custom build their own services and infrastructure without being limited by others in terms of performance.

The third guest: There are still some questions about the subnet. Have you ever thought about using UST as the gas fee for the Avalanche subnet? Or go one step further and provide a virtual machine for Luna? Is there a plan to have a stable Gas Token?

Emin Gün Sirer：good question. This is something we need to think about, we have provided some sample code for different virtual machines.

We now have a lot of custom virtual machines that are even faster than EVM. I'm not sure whether we have launched a virtual machine for Gas, but something more direct: people want to use their own Token as Gas, and we have some related sample codes that have been made public and will be made public soon.

If you want, you can also write the same sample code and propose it in the community. Stablecoin is very suitable for Gas, it removes uncertainty and reflexivity of value, everything will become more predictable, so I would love to see such a subnet flourish.