The Ethereum Foundation’s luminary, Vitalik Buterin, magnetized over a thousand enthusiasts to his discourse in Brussels at the EthCC conclave. CoinDesk’s Margaux Nijkerk was embedded within the throng, capturing the fervor of Europe’s premier Ethereum symposium. Amidst a flurry of declarations, a seismic revelation emerged, unraveled by CoinDesk’s intrepid Sam Kessler. A distinguished figure within the blockchain sphere stands accused by their erstwhile employer, the esteemed venture capital behemoth Polychain, of ethical violations pertaining to clandestine personal token allocations from a project financed by the firm. Delve deeper into the unfolding drama.

Allegations of Side-Deals in Crypto Fundraising

Two months prior, the blockchain development community was jolted by allegations of sexual misconduct against Neel Somani, founder of the modular blockchain venture Eclipse. Fresh accusations now emerge, spotlighting dubious fundraising practices. Polychain has charged Niraj Pant, a former general partner, with orchestrating an undisclosed agreement with Eclipse, contravening the firm’s policies. Kessler’s exposé, based on insights from three proximate sources and internal Eclipse documents, reveals that Somani discreetly apportioned Pant 5% of an imminent Eclipse crypto token in September 2022. This followed Pant’s orchestration of Polychain’s $6 million pre-seed investment in the project. The allocation was subsequently diminished to 1.33%, equating to $13.3 million at the latest token valuation in a private investment round.

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Pant defends the legitimacy of the arrangement, asserting its finalization post-Polychain’s investment. A document, acquired by Kessler and endorsed by Somani, indicates that Pant’s Psychological Operations Co. was to receive Eclipse tokens for “periodic teleconference sync meetings” as requisitioned by Eclipse. Somani, as conveyed to his confidants, intended the substantial token grant to entice Pant to secure Polychain’s investment and the veteran VC’s esteemed endorsement, per sources familiar with the matter. “Polychain’s disclosure to CoinDesk provides a rare glimpse into the intricate machinations of crypto VC firms and their funded projects,” Kessler noted. On the social-media platform X, cynical commentators sardonically expressed their “shock” at such practices permeating the crypto fundraising milieu.

Political and Social Repercussions

Former President Donald Trump’s Republican Party has enshrined a platform advocating for cryptocurrency innovation, according to a recent Republican National Committee release. Concurrently, Multicoin Capital, a leading U.S. crypto investment entity, pledges up to $1 million to support Senate candidates aligned with favorable industry stances.

In Granbury, Texas, residents lament physical ailments attributed to a “dull aural hum” from a proximate Bitcoin mining facility, breaching legal noise limits daily, as reported by Time. Marathon Digital Holdings, the site’s proprietor, declined to address health concerns but confirmed efforts to mitigate noise by removing the offending fans.

Blockchain Games and Ethereum Developments

David Z. Morris, in a guest column, notes the maturation of blockchain games, asserting their parity with non-crypto games in enjoyment. Another contributor, Jeff Wilser, highlights the success of Hamster Kombat on the TON blockchain, a sensation in Iran, eliciting comments from the country’s deputy military chief, labeling it part of the West’s “soft war.”

At the Ethereum Community Conference (EthCC), Ethereum co-founder Vitalik Buterin addressed a capacity audience of approximately 1,100 attendees. His keynote emphasized fortifying the Ethereum blockchain’s foundational layer. Buterin articulated the ecosystem’s strengths and vulnerabilities, including concerns over transaction censorship and proposed raising the “quorum threshold” from 75% to 80%. He praised Ethereum’s “large and reasonably decentralized staking ecosystem” and its “highly international and intellectual community.”