Welcome to The Protocol, CoinDesk’s weekly round-up of the most important stories in cryptocurrency technology development. I’m Margaux Nijkerk, a reporter for CoinDesk.
In this issue:
- ZKsync proposal aims to link ZK tokens to network revenue
- Olas launches Pearl v1, the first “AI Agent App Store”
- Ethereum developer confirms Fusaka upgrade for December 3rd in PeerDAS rollout
- Announcing the “Unpersend” dashboard to manage payments for Graph Builder, Edge & Node, and AI agents
network news
Proposed ZKSYNC tokenomics changes: The creators of Ethereum’s Layer 2 network ZKsync have introduced a proposal to transform the 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 on the ZKsync community forum outlines how network usage and enterprise licenses can feed value directly into the token economy. This move could change the way the ZKsync ecosystem creates and distributes value. Under this proposal, rather than ZK functioning purely as a governance token, network activities such as interoperability and enterprise usage would directly impact its economy. The proposal argues that the network’s growing ecosystem, which includes modular chains, private “privisium” networks, and a cross-chain interoperability layer known as elastic chains, requires a token model that evolves with it. “The ZK token began as a tool for governance,” the post says. “Through governance, the economy can become the heartbeat of an incorruptible economy.” With this plan, ZKsync will introduce two major revenue streams. The first is on-chain interoperability fees that are charged when users move assets and messages between rollups in the ecosystem. The second is off-chain license revenue from enterprise tools such as compliance and reporting modules tailored for institutions that are built on the protocol. — Margaux Nykerk read more.
OLAS launches first AI agent app store: Olas announced Pearl v1, a decentralized “AI agent app store” that allows users to own and operate autonomous AI agents, blending the ease of use of Web2 with the self-sovereignty of Web3. Unlike centralized AI platforms that lend access to users, Pearl provides complete control and transparency. All agent actions are verifiable on-chain. Users can start with a familiar login like Google or Apple, fund agents via card, and maintain full control of their data. Built on principles of ownership, curation, and transparency, Pearl offers a growing library of agents for financial, creative, and social use cases. The launch follows a successful beta in which Modius, a decentralized financial trading agent, achieved a return on investment of over 150% in 150 days. “While centralized infrastructure has achieved global reach and performance, this centralization means that a user’s data and work can be completely stripped away through a decision or failure. This is why ownership is so important,” Olas founding member David Minarsch said in a release. — Will Canny read more.
Mr. FUSAKA from Ethereum mainnet participated: Ethereum developers formally approved the long-awaited Fusaka upgrade on December 3rd at the network’s biweekly coordination meeting. This decision begins the countdown to Ethereum’s second hard fork in 2025. The highlight of the upgrade is PeerDAS. PeerDAS, one of 12 improvements included in this release, allows validators to validate only a portion of the data rather than the entire “BLOB”, significantly reducing bandwidth requirements and costs for both validators and Layer 2 networks. This makes Ethereum faster and cheaper for both the users making transactions and the developers building on the network. This decision was finalized in All Core Developers Consensus Layer (ACDC) call #168, just two days after the upgrade was successfully deployed to Hoodi, our third and final testnet. This upgrade will go live on Ethereum mainnet once the blockchain reaches slot 13,164,544, which is expected to occur at 21:49 UTC on December 3rd. Margaux Nykerk read more.
Edges and nodes are marked with an ampersend: Edge & Node, the team that created The Graph, is launched Ampersendis a management platform for coordinating how autonomous AI agents operate and trade, the company said. Built on Coinbase’s x402 payments protocol and Google’s A2A communications framework, Unpersend adds automation, observability, and compliance controls to what is becoming known as the “agency economy.” As AI agents begin processing payments, data, and communications on behalf of users and organizations, a lack of standardization makes it difficult to monitor their operations. Coinbase released x402, its agent payments protocol, earlier this year. It is an open source system that allows instant stablecoin payments on any website. The addition of Unpersend provides a single dashboard where businesses can set spending limits, manage policies, and track activity across their networks. Edge & Node developed the platform in collaboration with the decentralized AI teams at Coinbase, Google, and the Ethereum Foundation. The system is also integrated with new Ethereum standards such as ERC-8004, which is designed for agent discovery and reputation tracking. – Ian Allison read more.
In other news
- Cryptocurrency exchange Gemini (GEMI) is planning to enter the prediction market space, according to a report from Bloomberg. The exchange, founded by Cameron and Tyler Winklevoss, reportedly discussed launching the product as soon as possible. Gemini, which became a publicly traded company on the Nasdaq Global Select Market in September, is looking to enter an industry that gained considerable momentum last year. Market leaders such as Polymarket and Kalsi rose to prominence during the 2024 US election campaign, with more than $8 billion in bets placed on their platforms. This has led to many other companies in the finance, technology and media sectors looking to enter the market. Last month, Trump Media & Technology Group (DJT), the parent company of President Donald Trump’s social platform Truth Social, announced plans to partner with Crypto.com to develop a prediction market. — jamie crawley read more.
- The U.S. Treasury Department has imposed new sanctions on a group of North Korean bankers and institutions accused of laundering millions of dollars in virtual currency linked to cyberattacks and illegal IT operations programs that funded North Korea’s weapons program. The Office of Foreign Assets Control (OFAC) announced that eight individuals and two entities were named on charges of “money laundering derived from cybercrime and information technology worker fraud,” including proceeds related to ransomware and cryptocurrency theft. “North Korean state-sponsored hackers are stealing and laundering funds to fund the regime’s nuclear weapons program,” John K. Hawley, Under Secretary of the Treasury for Terrorism and Financial Intelligence, said in a press release. — Oliver Knight read more.
regulation and policy
- The chances of former FTX CEO Sam Bankman Fried getting a new trial appear to be diminishing, judging by the appellate court’s pointed questioning during a hearing in Manhattan. Bankman Fried’s request for a new trial hinges primarily on his long-standing argument that there was no actual theft because most of FTX’s creditors were wiped out in bankruptcy proceedings (he relied heavily on the sale of illiquid assets, including real estate and venture capital investments). During defense attorney Alexandra Shapiro’s arguments, appellate judges repeatedly interrupted her to question her arguments. “He is absolutely entitled to present evidence of his intentions, but I don’t understand what he’s saying there.” [being] Circuit Court Judge Eunice Lee said Shapiro’s response that “it was clear that there were very valuable assets in FTX Real Estate” at the time of the bankruptcy “corroborated Mr. Bankman Freed’s view.” [FTX and Alameda Research] It was resolved,” another circuit judge, Judge Maria Araujo Khan, argued. [Bankman-Fried’s] The misrepresentations were not about solvency, but about liquidity…Part of the government’s theory in this case is that the defendants falsely represented to investors that their funds were safe and were not being used as the government claimed, and the jury convicted them that they were. So it wasn’t an issue of ability to pay? It was a question of liquidity and whether they could get the money if they asked for it. ” — Cheyenne Rigon read more.
- In an interview with CBS News, President Trump reiterated his claim that he does not know who Binance founder Changpeng “CZ” Chao is. President Trump granted Mr. Zhao a presidential pardon in October, nearly a year after he pleaded guilty to violating the Bank Secrecy Act and served a four-month prison sentence. President Trump told CBS’s Norah O’Donnell that Zhao was “treated really badly by the Biden administration,” and described the former Binance CEO as a “victim of government weaponization.” The president said he was told that Zhao was “set up” and said his pardon was aimed at ensuring the United States remained competitive in the cryptocurrency space. “I don’t know anything about that guy. I don’t think I’ve ever met him,” Trump said in an interview with CBS. “Maybe. Or maybe someone shook my hand or something. But I don’t think I’ve ever met him. I don’t know who he is. Like me, and like so many other people, he was told he was a victim.” During the CBS interview, Trump brushed off questions about conflicts of interest, emphasizing his focus on keeping the United States “number one in crypto” and insisting his sons’ businesses are separate from the government. — sam reynolds read more.
calendar
- November 17-22: Devconnect, Buenos Aires
- December 11-13: Solana Breakpoint, Abu Dhabi
- February 10-12, 2026: Consensus, Hong Kong
- February 17-21, 2026: East Denver, Denver
- March 30-April 2, 2026: EthCC, Cannes
- April 15-16, 2026: Paris Blockchain Week, Paris
- May 5-7, 2026: Consensus, Miami