The Race to Replace Mainnet | Ian Unsworth, Kairos Research

This episode delves into the shifting tides of blockchain usability and market dominance, exploring how platforms like Pump.fun are reshaping user engagement and whether new Layer 1s and innovative Layer 2 solutions like Hyperliquid can genuinely challenge Ethereum's Mainnet.

Guest Introduction and the Rise of Pump.fun Streaming

• The episode welcomes Ian Unsworth from Kairos Research, who recently participated in a Pump.fun live stream. Pump.fun is a platform primarily known for allowing users to easily launch and trade memecoins on Solana.
• Ian describes his experience on the stream with Carl from Sixman Ventures, noting the platform's surprisingly good live streaming capabilities and moderated chat, an improvement from its earlier, more chaotic days.
• Ian noted the chat was “very tamed” and the team seems responsive to feedback.
• Strategic Implication: The integration of live streaming with token trading on platforms like Pump.fun presents a novel user engagement model. Investors should monitor how these platforms evolve in terms of user acquisition, moderation, and regulatory scrutiny, as they could become significant hubs for community-driven token launches and speculation.

Analyzing the Live Streaming Landscape and Pump.fun's Potential

• Danny provides an analysis of the competitive live streaming market, drawing parallels between traditional platforms like Twitch, YouTube, and Kick, and the emerging crypto-native streaming models.
• Network Effects: Danny emphasizes the strong network effects in streaming, citing Mixer's expensive failure despite signing top talent like Ninja and Shroud. Microsoft-owned Mixer attempted to poach streamers but couldn't overcome Twitch's established user base.
• YouTube, already a video giant, managed to gain around 20% market share by building a compelling product alongside talent acquisition.
• Kick, backed by Stake (a casino), aims to convert viewers into gambling customers by featuring casino-related content, a model with uncertain long-term success despite significant investment in streamers like Aiden Ross and xQc.
• Danny sees Pump.fun's model as an "interestingly kind of similar thing" to Kick, mixing coin trading with streamer audiences, particularly for Web3-native creators.
• "You're trying to mix trading coins with audiences around streamers... there's a clear opportunity to grab web 3 native or like cryptonative people, streamers, content creators, put them on the platform." - Danny
• The key challenge for Pump.fun, according to Danny, is bridging the gap to Web2 audiences, who historically tend to extract value and leave crypto platforms.
• Ian adds that the main hurdle for Pump.fun is "bringing on people that realize what it is and kind of discerning that from the traditional memecoin community." He envisions potential if platforms like "Up Only" had integrated such a feature during the last cycle.
• Actionable Insight: Crypto AI researchers could analyze the behavioral economics of integrating financial speculation (token trading) directly into content consumption (live streams). Investors should watch for platforms that successfully cultivate sustainable communities beyond initial hype, potentially by targeting niche crypto-native audiences first, like the "LA Vape Cabal" or Ansem, as Danny suggested.

Solana's Alpenlow Consensus Upgrade: A Leap in Performance

• The discussion shifts to Solana's (SOL) technical advancements, specifically the Alpenlow consensus changes.
• Ian Unsworth from Kairos Research explains that Alpenlow aims to significantly reduce validator costs by removing voting fees, which currently constitute a substantial operational expense (around 1 SOL per day per validator) and account for roughly 33% of all Solana transactions.
• Proof-of-History (PoH): A timestamping mechanism that is a core component of Solana's current consensus, contributing to these voting costs. Alpenlow involves a pragmatic re-evaluation of such components.
• Alpenlow, developed by the Anza team, will replace parts of the current consensus with two core components: "Voter" (for off-chain voting) and "Rotor" (for block propagation).
• This upgrade is projected to deliver a 100x improvement in finality (the time after which a transaction is considered irreversible), reducing it from 12.8 seconds to an impressive 150 milliseconds. Ian notes this would be faster than benchmarks like Monad's (a proposed high-performance EVM-compatible L1) anticipated 400ms finality.
• Strategic Implication: Alpenlow represents a significant architectural overhaul for Solana, potentially solidifying its position as a high-performance L1. For investors, this signals Solana's continued commitment to core infrastructure improvement, which could attract more dApps and users seeking low latency and high throughput. Researchers should monitor the real-world impact on network stability, validator economics, and dApp performance post-implementation.

Solana's Pragmatic Approach to Development

• Bokky highlights Solana's consistent stream of improvements over the past year, including various SIMDs (Solana Improvement Documents) like SIMD 96 (related to priority fee distribution) and the upcoming Firedancer client.
• Ian characterizes Solana's development ethos as "pragmatic," driven by a willingness to critically assess and improve its own systems, even from a leading position. He attributes this to an "underdog psychosis" among core developers, stemming from past criticisms, particularly from Ethereum proponents.
• "If you're in the lead, you're often not worried about yourself, you know, and I feel like Solana's core ethos I would say post FTX is... underdog psychosis where they were constantly being, you know, bombarded by the ETH folks." - Ian Unsworth
• Actionable Insight: Solana's aggressive and iterative development cycle, focused on tangible performance gains, contrasts with the often more protracted and contentious upgrade paths seen in other ecosystems. This agility can be a competitive advantage, attracting developers and capital looking for rapidly evolving platforms.

The Crypto App Landscape: User Experience and Desired Innovations

• Danny's Perspective:
• Likes: Axiom, for successfully combining Solana memes with hyperliquid perps (perpetual futures). Perpetual futures are derivative contracts that mimic spot markets but without an expiry date, allowing traders to speculate on price movements with leverage.
• Wants: Clean, native mobile apps (iOS/Android) offering a Robinhood-like experience for crypto trading, reducing the current friction of using multiple disconnected tools (wallets, DEX screeners, trading interfaces).
• Slingshot App: Mentioned as a potentially good product (promoted by Evan SS6) that hasn't gained significant traction, possibly due to unmet airdrop expectations or its acquisition by Magic Eden. This highlights the importance of go-to-market strategy and community engagement beyond just product quality.
• Telegram Bots vs. Native Mobile Apps: Bokky prefers Telegram bots due to their integration into his existing workflow. Danny argues that while Telegram integration is useful, dedicated mobile apps with low friction and strong KOL (Key Opinion Leader) backing could offer a superior experience.
• Ian's Perspective:
• Likes: The current DeFi user experience, which he finds "very good" with smooth transactions and effective slippage protection.
• Wants: Excited for the Seeker (Solana Mobile's next phone), hoping to use it for crypto gaming and potentially running DePIN (Decentralized Physical Infrastructure Networks) applications in the background. DePINs leverage token incentives to bootstrap and operate physical infrastructure like wireless networks or sensor arrays.
• Dislikes: The "over-financialization of DeFi" when forced into social contexts like Zora, which he finds stale. He views Pump.fun as a more fitting environment for speculation due to its inherently "fun, crypto-native" nature.
• Strategic Implication: The demand for seamless, integrated, and mobile-first crypto applications is growing. Projects that can deliver a user experience comparable to leading Web2 financial apps, while effectively leveraging crypto-native incentive mechanisms and community building, are well-positioned for adoption.

Crypto-Enabled Devices: Beyond the Phone

• Danny expresses excitement for a new wave of crypto-enabled hardware beyond just phones, including the Seeker, a Sui gaming device, and the Pulse fitness band. He sees value in dedicated devices for crypto activities to avoid "cross-contamination" with personal phones, alongside the potential for airdrops. A key requirement is improved battery life, a major flaw in the first Solana phone.
• The Pulse No Limits fitness band, building on Solana and Monad, aims to be a "Whoop band but for crypto", gamifying fitness data on-chain with rewards and challenges, similar to Helium's model for DePIN.
• Potential for AI agent apps to create automated workout plans based on band data.
• Actionable Insight: The emergence of specialized crypto hardware (phones, wearables, gaming devices) could create new ecosystems and investment opportunities. Investors should look for devices that offer genuine utility beyond novelty, integrate well with dApps, and have sustainable tokenomic models for any associated DePIN or reward features.

Gamification, Move-to-Earn, and Real-World Incentives

• The discussion touches on StepN and the move-to-earn model. While initially lucrative ($100/run for Ian at one point), its economics proved unsustainable.
• Ian believes in the potential of incentivizing things people already do, like casual gaming on phones. He doesn't expect the "killer crypto game" to compete with AAA titles like GTA 6 but sees a niche for simpler, incentivized experiences.
• Danny sees "gamification of exercise" as a potential winner, citing Strava (a social running app) as an example of existing user behavior that could be enhanced with crypto incentives. Ian suggests tokenized rewards on Strava for sharing popular running routes.
• Blackbird, a restaurant rewards app using crypto on the backend without users necessarily knowing, is mentioned as a model for seamless integration.
• Data Monetization: Danny raises the idea of shifting from apps taking user data for free to apps paying users with tokens for their data, which can then be monetized.
• Strategic Implication: While early move-to-earn models had flawed tokenomics, the underlying principle of incentivizing real-world activities remains compelling. Future successes may lie in more sustainable economic designs, better integration with existing behaviors, and clearer value propositions for data sharing, potentially involving AI for personalized experiences or insights.

Critiques of Existing Apps and User Interface Preferences

• Bokky expresses a desire for a hardware device for Grass (a DePIN project for sharing internet bandwidth). He criticizes apps like Wolf Swap on new, obscure chains for replicating poor, old-school UX. He finds Jupiter's mobile app "alright, nothing special."
• A significant critique is aimed at Uniswap and general ETH (Ethereum) DeFi for excessive "hand-holding" to appeal to mainstream users, which Bokky feels alienates power users. He cites Drift's previous perpetuals product (before a fix) as an example of oversimplification.
• Danny mentions using DeFi Llama's Llama Swap, while Ian uses CowSwap on Ethereum due to its transaction execution ("it moves"). Bokky prefers a "corporate style," clean UI.
• Actionable Insight: There's a tension in dApp design between onboarding new users and catering to sophisticated crypto natives. Projects that can offer customizable interfaces or tiered experiences might better serve diverse user segments. UI/UX remains a critical differentiator.

The EVM Fragmentation Problem and Hyperliquid's Rise

• Danny identifies the EVM (Ethereum Virtual Machine) and the proliferation of Layer 2s (L2s) as "the product I don't like," citing the annoyance of bridging funds and managing assets across disparate chains like Base, Arbitrum, and Optimism. This fragmentation has, in his view, broken Ethereum's original strong network effect.
• He contrasts this with Osmosis in the Cosmos ecosystem, which offered a smoother multi-chain UX from early on due to IBC (Inter-Blockchain Communication Protocol).
• Bokky reveals he has moved most of his finances to Hyperliquid, an L2 derivatives exchange on Arbitrum, valuing its convenience for spot and perpetuals trading.
• Ian highlights Hyperliquid's significant traction, noting it holds over 70% of the Arbitrum USDC supply. He urges Hyperliquid to pursue an ambitious Hyper EVM (its own EVM execution environment) roadmap to potentially "dethrone ETH Mainnet as the EVM finance hub," competing with upcoming projects like Monad and Mega ETH.
• Bokky counters that Hyperliquid is actively developing Hyper EVM, citing API announcements and testnet upgrades focused on its capabilities (e.g., read pre-compiles, increased block size).
• The ease of switching between Hyperliquid's perp exchange and its EVM (one click) is praised as a key UX advantage.
• Strategic Implication: The fragmentation of liquidity and user experience across Ethereum L2s creates an opening for platforms that can offer a more unified and seamless environment. Hyperliquid's success demonstrates strong demand for high-performance, EVM-compatible trading venues. Its Hyper EVM development is a critical area for investors and researchers to watch, as it could set a new standard for integrated L2 ecosystems.

Ethereum's Uncertain Future and Leadership Vacuum

• The panel discusses Ethereum's struggle with direction. Danny notes that if ETH had designated a single, economical L2, it might have preserved its network effect. Instead, the community couldn't agree, leading to the current fragmented landscape.
• Bokky points to the failure of a "social layer decision" on a canonical L2 and the cacophony of conflicting voices within the Ethereum leadership (Vitalik Buterin, Justin Drake, etc.). This contrasts sharply with Solana, where key figures like Mert Mumtaz, Raj Gokal, and Anatoly Yakovenko presented a more unified vision.
• Ian argues that Ethereum "missed its chance to have someone bearing the torch in terms of direction who was like a DeFi builder," suggesting the Ethereum Foundation was not supportive enough of DeFi.
• Bokky unironically suggests Marc Zeller of Aave as a potential strong leader for Ethereum, a sentiment Ian echoes, praising Zeller's courage, conviction, and tangible contributions to Aave, contrasting him with ETH "influencers" who merely "tweet nonsense."
• Danny concludes that Ethereum lacks a clear, "strong, opinionated stance" comparable to Solana's focus on speed and throughput. Questions about expanding blobs (part of EIP-4844 for cheaper L2 data), scaling L1, or raising gas limits remain debated without a clear path forward.
• Bokky's Prediction for Ethereum:
• Rollups (like ZK rollups or Base) will continue to dominate, with ETH attempting to be a settlement layer.
• Influential figures have vested interests in L2s, making a pivot away from the rollup-centric roadmap unlikely.
• L1 scaling attempts will be half-hearted and contentious (e.g., debates over reducing block times from 12 seconds).
• Ethereum will try to position itself as a "sovereign store of value" asset but will likely fail to usurp Bitcoin in this role.
• Ian observes that ETH price declines seem to be the most effective catalyst for productivity within the Ethereum ecosystem, yet the ETH/BTC chart has been "down only" without sparking sufficient urgency.
• The panel notes that new crypto users, often onboarded via Solana-based memecoins, are largely unaware of or indifferent to Ethereum's L2 roadmap complexities.
• Actionable Insight: Ethereum faces significant challenges in defining a cohesive strategy and narrative. Investors should be wary of the "ETH as money" or "ultra-sound money" narratives until there's a clear, unified technical roadmap and demonstrated progress in addressing scalability and UX fragmentation. The lack of decisive leadership remains a key risk.

Conclusion: The Shifting Landscape Demands Clarity and Execution

The episode underscores that user experience, cohesive vision, and relentless execution are paramount in the race for blockchain dominance. While Ethereum grapples with internal divisions and a fragmented L2 strategy, platforms like Solana and focused applications like Hyperliquid are gaining ground by delivering tangible performance and usability improvements, reshaping investor and developer expectations.