Cardano's 120M ADA DeFi Bet, Ethereum UTXO Shift and EMURGO Exit

This week's Cardano news update covers AlphaGrowth's Cardano PRIME proposal going live on-chain, including the 120 million ada ask, the net change limit debate, and why DeFi growth is becoming a major treasury conversation.

Peter also looks at Ethereum researchers discussing native UTXOs, RealFi entering testnet with a real-world finance model, the latest SecondFi wallet recovery guidance, and EMURGO stepping down from the Pentad while it focuses on the SecondFi recovery process.

Chapters:
0:00 Weekly Cardano Roundup
0:41 AlphaGrowth Cardano PRIME
3:19 DRep Voting Begins
4:36 The 120M ADA Ask
5:17 Net Change Limit
7:40 Ethereum Looks At UTXO
10:16 RealFi Testnet Launch
12:05 RealFi Portfolio Model
14:11 SecondFi Wallet Guidance
16:46 Scams And Recovery Risk
17:12 EMURGO Leaves The Pentad
18:53 Wrap Up

What you'll learn:
- AlphaGrowth's Cardano PRIME proposal is live on-chain and asks for 120 million ada to support a 12-month DeFi growth programme.
- The current net change limit is a key governance constraint, with discussion around increasing it to 500 million ada.
- Ethereum researchers are exploring native UTXOs, highlighting a model Cardano has used from the beginning.
- RealFi's pre-prod testnet is live, showing a private-credit and real-world yield model for Cardano DeFi.
- SecondFi users are still being urged to follow official migration guidance carefully and watch for scams.
- EMURGO has stepped down from the Pentad and says its immediate priority is the SecondFi recovery process.

Links & References:
AlphaGrowth Proposal Announcement:
- https://link.learncardano.io/5xOoK0
AlphaGrowth Proposal On-chain voting:
- https://link.learncardano.io/b1tMio
Net Change Limit to Proposal to Increase:
- https://link.learncardano.io/OCO4gy
NCL On-chain Voting:
- https://link.learncardano.io/w1K3uK
Ethereum Road to UTXO:
- https://link.learncardano.io/ihDPzv
- https://link.learncardano.io/x3qti7
RealFi Enters Testnet:
- https://link.learncardano.io/d9gnLr
- https://link.learncardano.io/7FXsqt
SecondFi Update:
- https://link.learncardano.io/Hp0vZx
Emurgo Steps Down:
- https://link.learncardano.io/3KT4g4
Glacier Drop Resumes:
- https://link.learncardano.io/onEiOW

Website: https://link.learncardano.io/bQ68Rc
X/Twitter: https://link.learncardano.io/3a1Qtv

Disclaimer: This content is for educational purposes only. Nothing constitutes financial advice.

DISCLAIMER: This content is for informational and educational purposes only and is not financial, investment, or legal advice. I am not affiliated with, nor compensated by, the project discussed—no tokens, payments, or incentives received. I do not hold a stake in the project, including private or future allocations. All views are my own, based on public information. Always do your own research and consult a licensed advisor before investing. Crypto investments carry high risk, and past performance is no guarantee of future results. I am not responsible for any decisions you make based on this content.

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Episode Transcript

Speaker 1 (00:00):
All right, here the round up news for this week
in the Caadana ecosystem. We have condona Prime launching their
treasury proposal. We also have real Fi coming on the
test nets. We have a Theoereum ecosystem looking at UTXO
copying what Kardano has built, and also announcements from Amergo
around second five their updates and Amergo is stepping down

(00:20):
from the Pentac. Let's get into it guys. Now, if
this is your first time here, my name's Peter. I
do all things crypto. I look at regulations, I look
at a lot of stuff that's happening in Australia and
also everything that's happening in the Kadano ecosystem. So if
that's of any interest you thumbs uplight subscribe notification belt.
Let's get right into it, guys. The first one here

(00:41):
is the Alpha Prime News. Now. I've done interviews with
these guys, I've talked about them for the last couple
of weeks. But their proposal here is to grow the
Kadano DeFi ecosystem. They have worked in the DeFi space
across multiple different protocols and chains, and they're bringing their
knowledge and skill to the Coadana ecosystem. Now, the really

(01:02):
interesting thing here is that they're taking an approach by
not consulting with the Cadana ecosystem and builders and everything there.
They're looking it from an external perspective, looking into what
is what are other ecosystems doing what Kardana is missing
out on. And with the proposals that they are putting together,
they will be giving out grants to various projects in

(01:25):
the DeFi space to say, hey, you guys need to
be these certain aspects. So you're missing X, Y and Z.
Here's some money. Go build X, Y Z, go make
that happen, so then we can piece together our piece
of the puzzle to build up the DeFi ecosystem. So
one example that the guys gave me in the interview,
and I highly encourage that you check out the interview

(01:48):
up there links in the show notes as well, but
they talked about their involvement with a protocol called MOFO
and they brought in a lot of liquidity onto that
to DeFi protocol, and that was because they worked with
coinbase to make that happen. So they worked in the

(02:08):
background connecting the Coinbase app to mofo. So when you
go and use the coinbas app and to participate in
DeFi or wasn't even DeFi, then it didn't look like
DeFi just looked like you're using it app. It actually
connected it to the back end to theorem ecosystem view
via that DeFi layer. So that is the really interesting thing.

(02:32):
And Kadana doesn't have anything like that. We don't have
any connectors into really big DAPs with millions of users.
And this is what the Cardano Prime proposal is looking
at offering the Cadana ecosystem. So this is i think
one of the biggest initiatives in the space that we
could possibly have this year. So we've got USDC, We've

(02:54):
got PITH, we got a layer zero, we have the
June Analytics, so we have a lot of things working
for us at the moment. We have LAOS coming around
the corner. We have Prius with the Finality Faster Finality
as well, so we've got lots of things coming into
the space here. And then to wrap it all up

(03:15):
with the massive growth of DeFi, I think is really
really important. So this is something that the de reps
in the Kadana space are looking at at the moment,
this is the Alpha Growth proposal. This is what it's
looking like on chain. So it's only been online for
about six or so. Seven or or so, ours de
reps are already voting for it. You can see who's

(03:36):
voting yes, who is voting no, And based on this,
you can move your Kadano delegation to a particular de
rep that is voting for or against it. So if
for example, you're voting with William Doyle here and his
your de rep, and you don't like that he voted no,
then you can switch your vote to Karun here who

(03:58):
voted yes, or Crypto crowho vote yes, so that you
can put your aida to work and allocate your voting
power to these particular de reps and vote dis proposal
in or if you're against it, you can vote for
the no one. So it's totally dependent on where that
delegation is going, so really important to have a look
at what's going on with this one. If you agree

(04:19):
with what Alpha Prime is doing, if you look at
the comments down below, there's a link to the video
interview if you're interested. But the majority of people that
are commenting at the moment are very positive for this.
They're very gun ho and we're going to try and
make this happen. Now, the big thing here is this

(04:39):
is if we have a look at the metadata for this,
this is one hundred and twenty million eight so it
is a big price tag in US figures, it's roughly
around nineteen million USD, So it in USD for this
type of work, it's not that much. And remember some
of this money is going back to Kadano proto calls

(05:00):
as grants to make their protocols up to standard to
make it all work. So it isn't exactly a massive
amount of money when you look at it in USD value,
but in terms of ader because the prices are low,
it is kind of high. But to the other interesting
thing around this is that the net change limit, the
limit of what we can actually pull out of the

(05:21):
treasury or the guidance rails that we have, is limited
to three hundred and fifty million eight And I've said
this in previous videos, but we're pretty much at that limit.
So we need to change this up to the five
hundred million eighted limit to be able to pass this
type of proposal through. So again you can see the
various de reps that have voted for this one. Here
you can see the yes's and no's, and again you

(05:44):
can allocate your AIDA to these various d reps so
that they can have that voting power and vote for
these particular proposals yes or no, and push them through
on the ecosystem. Now, the downside to all of this
spending more AIDA, spending more of the ecosystem funds does
drive down the price. Now, the thing here is that
they aren't all using the eight all up once they

(06:08):
have to meet milestone. So this amount of eighter will
be spent progressively over a twelve month period, not all
at one go, so we won't see massive drops down
or bumps down. We'll see the price go fluctuate up
and down, probably stabilize and move sideways for maybe another
twelve months due to the highest spending that is going
on at the moment. But really we need to spend

(06:30):
so we are in a better position to be able
to capture when the market does go up again. Imagine
if we're still in a position where we don't have layoffs,
we don't have prios, we don't have things like the
OURPHA growth Prime proposal in place, and we suddenly say, yeah,
let's start investing in that stuff now. In the rest

(06:51):
of the market skyrockets and goes forth with DeFi and
everything else, and we're just like, Okay, let's think about
spending the money out. So I really do believe, as
a Kadano enthusiast person whatever you want to call them,
that we really need to invest in this type of
stuff right now. So it's really interesting to see where
this one goes, and hopefully this one does get through again.

(07:12):
Highly encourage you to watch that video interview that I
did with the guys there and learn more about the
proposal and what it has to offer. All right, next
news item here. This was very interesting to see and
it looks like now the Ethereum boys, the big EVM

(07:33):
side of things, have realized the value of UTXO or
unspent transaction outputs, the model that Bitcoin uses and what
Kadano uses, as well as some other chains as well.
There's a whole bunch of blockchains that understand the value
of UTXO and how it can scale up and not

(07:53):
be as expensive as what account based models are when
they come to scaling, and that is a massive benefit
that Kadano has at the moment. It's taken a long
time to get here, but Ethereum is now finally turning
around and going, hey, there's some value here. And you
can check out this research paper here and essentially not

(08:14):
research paper, but this big post here that talks about
the values of utxo and it essentially just spits out
everything that the Kadina ecosystem has been benefiting from for
the last seven or so years. So it's it's interesting
to see that the space externally is now seeing the

(08:34):
value in it and is potentially completely pivoting over to
where the Cardina ecosystem is. Will they catch up? Can
they fork the theeum chain to make it UTXO based.
That is extremely hard to do from where they are
at the moment, extremely hard. And it's not just the

(09:00):
changing of the chain itself, and you know, going from
account based to ut so it's all the tools, it's
all the libraries and everything that has been built in
the ecosystem for the account based model. It's even the
thinking of the engineers and devs now that they have
to think about UTXO as opposed to account based how

(09:22):
that actually works. So it's a massive undertaking not only
from a code and development side of things, but support
libraries and everything else that is in the ecosystem, including
how developers think. So that's a massive change for the
Ethereum ecosystem if that does happen. Will it happen? Maybe?

(09:43):
Would they probably borrow a lot of stuff that the
Kadana ecosystem has built. Maybe maybe Ethereum can just be
a side chain and become a partner chain of Kadano
and benefit that way. Who knows. Anyway, guys, I'll leave
the links down below to these various posts here about
ethereum U and their roadmap to eventually integrate in UTX,

(10:03):
so you can find out a little bit more about it.
If you're interested in deep dive, let me know and
I'll try and break down more of the research that
they've been doing to try and get to this point.
All right, next news item here, This one here is
really cool, guys. Now Real Fi is bringing in what
Kardana has been trying to do for years. This was

(10:26):
the initial initial goal and ideas of ethos of what
Kardana was trying to do bank the unbanked, and finally
Real Fi, headed up by John O'Connor, is making this
a reality. So the whole idea and premise here is
that we can use the platform to fund microfinance developing

(10:50):
countries people that don't have access to these type of
funds to actually make things happen. The cool thing here
is that this actually would generate real yield as opposed
to inflationary tokens that comes from a lot of the
defied space, and that is something of really big value
that you really want to look into when it comes

(11:12):
to defy yields. If you're just inflating a currency that
you're made up, it doesn't really bring any value for
the users. But if you're tapping into real world economies,
this is where the value comes in. If you're tapping
into bonds and that type of yields, this is where

(11:32):
the yield comes from. This is why USDC is really
appealing in the Circle ecosystem and on coinbase because they
do have the yield there from the US treasuries those bonds.
So when we tap into that and actually have a
real yield coming back, this is what makes things really
exciting and real. Fight here have put up their pre

(11:54):
prid test net and you can see a little bit
of their platform here and I'll just shrink that. Oh no,
don't mean shrink it. We can see how their platform
is actually working. Now. The interesting thing here that they
put down here is where the real Fi portfolio composition
could possibly come from. So you can see here part
of its from bonds, Summit's from clos I don't know

(12:17):
what clos are. We can see here tokenized treasuries and MMFs,
and then also down here real FI Private Credit, and
that's where you're lending out the USD assets from the
protocol to someone that actually needs the funds for their
business or whatever it is. So for example, here in
this case here real FI Private Credit, I could take

(12:40):
out a loan on the platform to build up my
YouTube channel, and then once I get in profit and
actually deliver more value for the ecosystem, I can repay
that fund. I can repay that and and anyone that
let me that USD would get a return on that
particular investment. I think this is really cool. This is

(13:02):
really really beneficial for anyone that wants to use it
and give access to people that need the funds for
it too. So Real Fi are bringing real finance to
the defive space. So absolute love what they're doing. Now
I've become a real FI spo as well, so I'll
be involved a lot more on this project as well,

(13:23):
So I'm interested to see what comes up next. But
if we have a look at their platform here, what
else you can do? You can actually connect and play
around our testna and mint the USDR that's their stable coin.
That's their stable coin within their ecosystem, but use usdc
X or USDM at the moment to mint USDR so

(13:45):
it's a one to one peg and they convert it over.
I'm assuming this is like a programmable token. They're going
to do some cool fancy things with it, So we'll
see what's going on there, but I don't know too
much more about that either way. Keep an eye on
this one, guys, because it is something quite interesting to
see and see how this one develops, especially with the

(14:05):
private finance side of things. All right, next and last
big news story for this week is around the second
five update. Now, at this point in time, we should
have seen the quarantine mode for the wallet come out,
and I haven't seen that yet. So for anyone in
the YouTube comments down below, you've been asking a lot

(14:26):
of questions here, if you know what you're doing. If
you understand that as soon as you do a transaction
within your euroy second fire wallet, that you're exposing yourself
to the hackers. If you realize that and understand that clearly,
then you should be able to manage your wallet and
do a one single transaction migration out. If you don't

(14:48):
understand how to do that, if you don't realize that
unregistering your wallet from delegation is a transaction and we'll
expose your wallet. If you understand what you're doing here
and understand and how the hack works, then you're probably
safe to migrate and move your wallet. If you don't,
please wait for the updates from second five for the

(15:10):
quarantine mode so that you'll be able to migrate your
wallet out. Okay, very big important thing there. Don't go
and migrate your wallet if you don't know what you're doing. So.
They do have a full hardware wallet guide that they
posted the other week. It's in their knowledge base. Again,
I'll put links down below for you guys. If you

(15:31):
follow that and completely understand it, go ahead and migrate
yourself out. If you haven't purchased a hardware wallet yet
and whatever reason afford one whatever, that's cool, But you
can buy a hardware wallet. It will protect your assets.
No one's been hacked from having a hardware wallets. There
are wrench attacks and fishing scams to release the seedway

(15:53):
phrase from it, but you physically need that hardware device
to sign transactions if you're after one. I've got links
down below to Keystone and ledgers there as well. It's
via my affiliate links, so it does help support the channel.
But if you haven't got a hardware will get one.
Follow their guide and you can learn how to actually
migrate out if you don't wait for the quarantine mode.

(16:18):
Next week. They've got the secure wallet export functionality and
this will allow you to export your wallet out, So
we should maybe by the time I've published this video,
the quarantine mode will be out. You'd be able to
check and see if your wallet's being compromised and lodge
a support ticket, and next week you can start moving
your assets out. So a little bit more of a weight. Guys,

(16:40):
were almost there, and we're almost out of this terrible
phase that Emergo is going through with second five at
the moment. Please watch out for those scams. There's lots
of scam emails going out. The hacks are still active
as well, so if you at this point in time
get your wallet compromise, you won't be covered by the
returned funds that they've put together, So please be careful guys. Now,

(17:03):
because of all this debacle and this fallout from the
second five side of things, Amergo have stepped down as
one of the Pentads, one of the founding entities to
help push the cada ecosystem forward. So let me just
read you this statement here today we formally notified the
entities that we are stepping down from our duties as

(17:25):
members of the Pentad. I want to thank the members
for their shared commitment to Kadano throughout our time working
alongside them. Omit it prior priority is the second fight
recovery process, and we are concentrating our resources where they
are needed most. So fair enough, fair enough. I don't

(17:46):
know what will happen to Amergo next. They're not saying
they're completely stepping out of the Cardona ecosystem. They're stepping
out of their role and their their work within the
defile space and Cadina ecosystem, but that work with the
PENTAD and providing funds and doing all the contracts and
everything else with those ecosystem partners. Unfortunately that's gone now

(18:09):
and that falls into the hands of the Kadana Foundation,
Midnight Foundation and IOG and Intersect. So I'm sure it's
in capable hands, and I'm sure the rest of the
team will be able to pick up some duties. But
I did just from my understanding. I did understand that
America did pick up some of the contracts, so they

(18:31):
may pass it on to one of the other PENTAD members.
So we're down to four asposed to five. But hey,
we'll see where things go next. Very unfortunate four for
ameergo at the moment. Definitely drop the ball there on
the second five side of things, but you know, we
hopefully we can recover from this overall. Anyway, guys, those

(18:52):
are the big top news stories for this week within
the Kadana ecosystem. I try and keep these concise to
the really big ones that are hitting the ecosystem and
will directly affect all you guys out there, So hopefully
you've got a lot out of this one here. If
you did, make sure you hit that thumbs up like
subscribe notification bell I'll get YouTube memberships down below. I've

(19:13):
got to buy me a coffee. Links there as well.
Great way support the channel, but you can't just hit
that thumbs up like always. Guys, stay positive, have a
good weekend. I'll see you in the next video.