Welcome to The Protocol, CoinDesk’s weekly wrap-up of the most important stories in cryptocurrency technology development. I’m Margaux Nijkerk, a reporter at CoinDesk.
In this issue:
- The ZKsync proposal aims to tie the ZK token to network revenue
- Olas unveils Pearl v1, the first ‘AI Agent App Store’
- Ethereum developers lock Fusaka upgrade to December 3rd with PeerDAS rollout
- Graph Builders, Edge & Node, Unveils “ampersend” Dashboard to Manage AI Agent Payments
Network news
PROPOSED TO CHANGE ZKSYNC TOKENOMICS: The creator behind the Ethereum layer-2 network ZKsync introduced a proposal to transform its ZK token from a governance instrument to a token with real economic utility. The proposal, “From Governance to Utility: ZK Token Proposal, Part I,” published by Alex Gluchowski in the ZKsync community forum, outlines how network usage and enterprise licensing can directly feed value back into the token’s economy. The move could change how ZKsync’s ecosystem will generate and distribute value. Instead of ZK acting solely as a governance token, the proposal would make network activity, such as interoperability and enterprise use, directly impact its economy. The proposal argues that the network’s growing ecosystem, which now includes modular chains, private “Prividium” networks and a cross-chain interoperability layer known as the Elastic chain, needs a token model that evolves with it. “The ZK token began as a tool for governance,” the post says. “Through governance, it can now become the heartbeat of an incorruptible economy.” According to the plan, ZKsync will introduce two main revenue streams. The first would come from onchain interoperability fees charged when users move assets or messages between rollups in the ecosystem. The second would be offchain licensing revenue from enterprise tools such as compliance or reporting modules tailored to institutions that build on the protocol. — Margaux Nijkerk Read more.
OLAS Unveils FIRST AI AGENT APP STORE: Olas unveiled Pearl v1, a decentralized “AI agent app store” that lets users own and operate autonomous AI agents, blending the ease of Web2 with the self-sovereignty of Web3. Unlike centralized AI platforms that rent access to users, Pearl provides full control and transparency: every agent action can be verified on-chain. Users can start with familiar logins such as Google or Apple, fund agents via card and retain full data custody. Built on the principles of ownership, curation and transparency, Pearl offers a growing library of agents for financial, creative and social use cases. The introduction follows a beta success story where Modius, a decentralized financial trading agent, achieved over 150% return on investment in 150 days. “Centralized infrastructure has achieved global reach and performance, but this concentration means that decisions or mistakes can strip users of their data and complete functionality. That’s why ownership is so important,” David Minarsch, a founding member of Olas, said in the release. — Will Canny Read more.
FUSAKA ON THE ETHEREUM MAINNET INKED IN: Ethereum developers officially entered into the long-awaited Fusaka upgrade for December 3rd during the network’s bi-weekly coordination call. The decision starts the countdown to Ethereum’s second hard fork in 2025. The headline feature of the upgrade is PeerDAS. PeerDAS, one of 12 improvements included in the release, allows validators to verify only parts of data instead of entire “blobs”, significantly reducing bandwidth requirements and reducing costs for both validators and layer-2 networks. This will make Ethereum faster and cheaper, both for users making transactions and developers building on the network. The decision was finalized during the All Core Developers Consensus Layer (ACDC) call #168, just two days after the upgrade was successfully deployed on Hoodi, the third and final testnet, without issue. The upgrade will be activated on the Ethereum network when the blockchain reaches slot 13,164,544, expected to take place at 21:49 UTC on December 3rd. — Margaux Nijkerk Read more.
EDGE & NODE COMING OUT WITH AMPERSEND: Edge & Node, the team that created The Graph, launched ampersanda management platform to coordinate how autonomous AI agents operate and act, the company said. Built on Coinbase’s x402 payment protocol and Google’s A2A communication framework, ampersend adds automation, observability, and compliance controls to what is becoming known as the “agent economy.” As AI agents begin to handle payments, data and communications on behalf of users and organizations, the lack of standardization has made their operations difficult to monitor. Coinbase released x402, its agent payment protocol, earlier this year. It is an open source system that enables instant stablecoin payments on any website. The addition of ampersend offers a single dashboard where companies can set usage limits, manage policies and track activity across networks. Edge & Node developed the platform together with Coinbase, Google and the Ethereum Foundation’s decentralized AI team. The system also integrates with new Ethereum standards such as ERC-8004, designed for agent discovery and reputation tracking. – Ian Allison Read more.
In other news
- Cryptocurrency exchange Gemini (GEMI) is planning a move into the prediction market sector, Bloomberg reported. The exchange founded by Cameron and Tyler Winklevoss discussed disclosing products as soon as possible, according to the report, citing people familiar with the matter. Gemini, which became a publicly traded company on the Nasdaq Global Select Market in September, is looking at a move into an industry that has gained significant traction in the past year. Market leaders such as Polymarket and Kalshi surged during the 2024 US election campaign, with more than $8 billion in bets placed on the former’s platform. This has prompted a number of other firms in the finance, technology and media sectors to enter the market. Trump Media & Technology Group (DJT), the parent company of President Donald Trump’s social platform Truth Social, said last month that it planned to roll out prediction markets in partnership with Crypto.com. — Jamie Crawley Read more.
- The U.S. Treasury Department imposed new sanctions on a group of North Korean bankers and institutions accused of laundering millions in cryptocurrency linked to cyberattacks and illegal IT work that helps finance Pyongyang’s weapons programs. The Office of Foreign Assets Control (OFAC) said eight individuals and two entities were designated for “laundering funds derived from cybercrime and information technology worker fraud,” including proceeds associated with ransomware and crypto thefts. “North Korean state-sponsored hackers steal and launder money to fund the regime’s nuclear weapons program,” Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley said in a press release. — Oliver Knight Read more.
Legislation and policy
- Former FTX CEO Sam Bankman-Fried’s chances of getting a new trial appear to be dwindling, judging by the sharp questions from an appeals court during a hearing in Manhattan. Bankman-Fried’s push for a new trial hinges largely on his longstanding argument that because the majority of FTX’s creditors were made whole in the bankruptcy process — which relied heavily on the sale of illiquid assets, including real estate and venture capital investments — there was, in fact, no actual theft. During defense attorney Alexandra Shapiro’s presentation, the appeals judges repeatedly cut in to question her arguments. “There’s a right to present evidence of his intent, absolutely, but I don’t understand what you’re saying about that [being] objective confirmation when the objective confirmation appears to be that after the bankruptcy more money was made,” said Circuit Judge Eunice Lee. When Shapiro responded, saying it was clear at the time of the bankruptcy that there were “very valuable assets in the FTX estate that confirmed Mr. Bankman-Fried’s view that [FTX and Alameda Research] were solvent,” another judge, Circuit Judge Maria Araújo Kahn, pushed back, saying, “But [Bankman-Fried’s] The misrepresentations were not to solvency, but to liquidity … part of the government’s theory of the case is that the defendant misrepresented to investors that their money was safe, was not being used in the way the government required, and the jury ruled that it was actually being used. So it wasn’t a question of solvency, right? It was a question of liquidity, whether they could get their money if they asked for it.” — Cheyenne Ligon Read more.
- President Trump reiterated his claim that he does not know who Binance founder Changpeng “CZ” Zhao is during an interview with CBS News. Trump granted Zhao a presidential pardon in October, nearly a year after the executive pleaded guilty to violating the Bank Secrecy Act and served a four-month prison sentence. Trump told CBS’s Norah O’Donnell that Zhao “was treated really badly by the Biden administration,” and described the former Binance chief as a “victim of government guns.” The president said he had been told Zhao “was set up” and that his pardon was aimed at ensuring the United States remained competitive in the cryptocurrency sector. “I don’t know the man at all. I don’t think I’ve ever met him,” Trump said during the CBS interview. “Maybe I did. Or, you know, someone shook my hand or something. But I don’t think I ever met him. I have no idea who he is. I was told he was a victim, just like I was and like a lot of other people.” During the CBS interview, Trump dismissed questions about conflicts of interest, emphasized his focus on keeping the United States “number one in crypto” and insisted that his sons’ business ventures were separate from the government. — Sam Reynolds Read more.
Calendar
- 17.-22. November: Devconnect, Buenos Aires
- 11-13 Dec: Solana Breakpoint, Abu Dhabi
- 10.-12. February 2026: Consensus, Hong Kong
- 17.-21. February 2026: EthDenver, Denver
- March 30-Apr. 2, 2026: EthCC, Cannes
- 15-16 Apr. 2026: Paris Blockchain Week, Paris
- 5.-7. May 2026: Consensus, Miami
