Galaxy Research proposes new voting system to reduce Solana inflation
Crypto research firm Galaxy Research has made a proposal to adjust the voting system that decides the outcome of future Solana inflation following the failure to come to a consensus in a previous vote.On April 17, Galaxy introduced a Solana proposal called “Multiple Election Stake-Weight Aggregation” (MESA) to reduce the inflation rate of its native token, SOL (SOL). The researchers described the proposal as a “more market-based approach to agreeing on the rate of future SOL emissions.”Rather than using traditional yes/no voting for inflation rates, MESA allows validators to vote on multiple deflation rates and uses the weighted average as the outcome.“Instead of cycling through inflation reduction proposals until one passes, what if validators could allocate their votes to one or many changes, with the aggregate of ‘yes’ outcomes becoming the adopted emissions curve?” Galaxy explained. The motivation for the concept comes from a previous proposal (SIMD-228), which showed community agreement that SOL inflation should be reduced, but the binary voting system couldn’t find consensus on specific parameters. SIMD-228 proposed to change Solana’s inflation system from a fixed schedule to a dynamic, market-based model. The new proposal suggests maintaining the fixed, terminal inflation rate at 1.5% and sets forth multiple outcomes that create multiple ‘yes’ voting options with different deflation rates from which an average is aggregated if a quorum is reached. For example, if 5% vote for no change, remaining at 15% deflation, 50% vote for a 30% deflation rate, and 45% vote for 33%, the new deflation rate would be calculated as the aggregate at 30.6%. The target is to reach the terminal rate of 1.5% supply inflation. Predicted inflation curves under new voting proposal. Source: Galaxy Digital Solving problems with binary voting The benefits are that a more market-driven system allows validators to express preferences along a spectrum rather than with binary choices, while maintaining predictability with a fixed inflation curve.“Galaxy Research seeks to suggest a genuinely alternative process to achieving what we believe is the community’s broad goal, and not necessarily proscribe any particular inflation rate outcome,” the firm explained. Related: Solana upgrades will strengthen network but squeeze validators — VanEckUnder the current mechanism, supply inflation begins at 8% annually, decreasing by 15% per year until it reaches 1.5%. Solana’s current inflation rate is 4.6%, and 64.7% of the total supply, or 387 million SOL, is currently staked, according to Solana Compass. Galaxy affiliate Galaxy Strategic Opportunities provides staking and validation services for Solana.Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research
Slovenia’s finance ministry floats 25% tax on crypto transactions
Slovenia’s Finance Ministry is considering a possible 25% tax on crypto trading profits for residents in the country under a new draft law now open for public consultation. The bill proposes to tax traders when they sell their cryptocurrency for fiat or pay for goods and services, but crypto-to-crypto and transfers between wallets owned by the same user will be exempt, Slovenia’s Finance Ministry said in an April 17 statement.Under the proposed legislation, crypto tax will be aligned with existing tax laws. Slovenia taxpayers will be required to keep a record of all their transactions for annual tax returns. The tax base would be calculated on profits by subtracting the purchase price from the sale price. In a statement to the Slovenia Times, finance minister Klemen Boštjančič said it’s unreasonable that crypto trading for individuals isn’t currently taxed in the country. “The goal of taxation of crypto assets is not to generate tax revenue, but we find it illogical and unreasonable that one of the most speculative financial instruments is not taxed at all,” he said in a statement translated from Slovenian. New tax could stifle crypto in Slovenia, lawmaker says Jernej Vrtovec, a member of Slovenia’s national assembly and New Slovenia opposition party, slammed the proposal in an April 16 statement to X, arguing it could stifle crypto growth in the country. “Slovenia has the opportunity to become a crypto-friendly country, but with the government’s proposals, we will miss the train again,” he said in a post also translated from Slovenian. “With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle.” Source: Jernej VrtovecThe proposal is open to public consultation until May 5. If Slovenian lawmakers pass the bill, it will go into effect on Jan. 1, 2026. Slovenia introduced a 10% tax on crypto withdrawals and payments in 2023, but capital gains from occasional crypto trading are not taxed, according to the crypto tax platform Token Tax. Related: NFT trader faces prison for $13M tax fraud on CryptoPunk profitsCrypto activity can also currently be exempt from tax if it’s considered a hobby. Business activity, such as mining or staking, is subject to income tax. A previous bill proposed in April 2022 planned to levy a 5% tax on profits over 10,000 euros ($11,372), but it was never passed into law. Slovenia issued the first digital sovereign bond in the European Union on July 25 last year. It had a nominal size of 30 million euros ($32.5 million) with a 3.65% coupon and a maturity date of Nov. 25 that year. The number of crypto users in Slovenia is projected to reach roughly 98,000 in 2025, according to online data platform Statista, with a penetration rate of 4.6% among its population of 2.12 million people. While the projected revenue for the country’s crypto market is slated to hit $2.8 million. Magazine: How crypto laws are changing across the world in 2025
Arizona crypto reserve bill passes House committee, heads to third reading
One of Arizona’s crypto reserve bills has been passed by the House and is now one successful vote away from heading to the governor’s desk for official approval.Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) was approved on April 17 by the House Committee of the Whole, which involves 60 House members weighing in on the bill before a third and final reading and a full floor vote.Source: Bitcoin LawsSB 1373 seeks to establish a Digital Assets Strategic Reserve Fund made up of digital assets seized through criminal proceedings to be managed by the state’s treasurer. Arizona’s treasurer would be permitted to invest up to 10% of the fund’s total monies in any fiscal year in digital assets. The treasurer would also be able to loan the fund’s assets in order to increase returns, provided it doesn’t increase financial risks.However, a Senate-approved SB 1373 may be set back by Arizona Governor Katie Hobbs, who recently pledged to veto all bills until the legislature passes a bill for disability funding.Hobbs also has a history of vetoing bills before the House and has vetoed 15 bills sent to her desk this week alone.Arizona is the new leader in the state Bitcoin reserve raceSB 1373 has been passing through Arizona’s legislature alongside the Arizona Strategic Bitcoin Reserve Act (SB 1025), which only includes Bitcoin (BTC).The bill proposes allowing Arizona’s treasury and state retirement system to invest up to 10% of the available funds into Bitcoin.SB 1025 also passed Arizona’s House Committee of the Whole on April 1 and is awaiting a full floor vote.Related: Binance helps countries with Bitcoin reserves, crypto policies, says CEORace to establish a Bitcoin reserve at the state level. Source: Bitcoin LawsUtah passed Bitcoin legislation on March 7 but scrapped the cornerstone provision establishing the Bitcoin reserve in the final reading.The Texas Senate passed a Bitcoin reserve bill on March 6, while a similar bill recently passed through New Hampshire’s House.Magazine: Crypto ‘more taboo than OnlyFans,’ says Violetta Zironi, who sold song for 1 BTC
Kyrgyzstan’s president signs CBDC law giving ‘digital som’ legal status
Kyrgyzstan President Sadyr Zhaparov has signed a constitutional law authorizing the launch of a central bank digital currency pilot project while also giving the “digital som” — the national currency in digital form — legal tender status.The law gives the National Bank of the Kyrgyz Republic the exclusive right to issue the digital som, establish the rules for its issuance and circulation, and oversee the platform on which the national currency will operate, Kyrgyzstan’s presidential office said on April 17.However, a final decision on whether to officially issue the CBDC is not expected until the end of 2026, local outlet Trend News Agency reported in December.If the central bank decides to adopt the digital som, it would also need to outline cryptographic protection measures to ensure the digital som remains secure and isn’t used for fraudulent transactions.Testing of the digital som platform is expected to take place sometime this year.Zhaparov’s sign-off comes nearly a month after Kyrgyzstan’s parliament, the Jogorku Kenesh, approved the amendment to Kyrgyzstan’s constitutional law on March 18.CBDCs continue to be heavily criticized by some members of the crypto community, flagging concerns that they could undermine financial privacy and enable excessive government oversight, among other things.While 115 nations have initiated CBDC projects, only four CBDCs have officially launched — the Bahamas Sand Dollar, Nigeria’s e-Naira, Zimbabwe’s ZiG and Jamaica’s JAM-DEX, data from cbdctracker.org shows.Over 90 CBDC projects are yet to move past the research stage.Kyrgyzstan continues to make moves in cryptoEarlier this month, former Binance CEO Changpeng “CZ” Zhao said he would begin advising Kyrgyzstan on blockchain and crypto-related regulation after signing a memorandum of understanding with the country’s foreign investment agency.Zhaparov said the initiative would assist with the growth of the economy and the security of virtual assets, “generating new opportunities for businesses and society as a whole.”Source: Sadyr ZhaparovRelated: Bitcoin price levels to watch as Fed rate cut hopes fadeThe mountainous, land-locked country is considered well-suited for crypto mining operations due to its abundant renewable energy resources, much of which is underutilized.Over 30% of Kyrgyzstan’s total energy supply comes from hydroelectric power plants, but only 10% of the country’s potential hydropower has been tapped, according to a report by the International Energy Agency.Magazine: Your AI ‘digital twin’ can take meetings and comfort your loved ones
Bitcoin dip buyers nibble at BTC range lows but are risk off until $90K becomes support
Bitcoin’s (BTC) realized market cap reached a new all-time high of $872 billion, but data from Glassnode reflects investors’ lack of enthusiasm at BTC’s current price levels. In a recent X post, the analytics platform pointed out that despite the realized cap milestone, the monthly growth rate of the metric has dropped to 0.9% month over month, which implied a risk-off sentiment in the market. Bitcoin realized cap net position. Source: X.comRealized cap measures the total value of all Bitcoin at the price they last moved, reflecting the actual capital invested, providing insight into Bitcoin’s economic activity. A slowing growth rate highlights a positive but reduced capital inflow, suggesting fewer new investors or less activity from current holders.Additionally, Glassnode’s realized profit and loss chart recently exhibited a sharp decline of 40%, which signals high profit-taking or loss realization. The data platform explained,“This suggests saturation in investor activity and often precedes a consolidation phase as the market searches for a new equilibrium.”While new investors remained sidelined, existing investors are probably adopting a cautious approach due to the short-term holder’s realized price. Data from CryptoQuant suggested that the current short-term realized price is $91,600. With BTC currently consolidating under the threshold, it implies short-term holders are underwater, which can increase selling pressure if they sell to cut their losses.Bitcoin short-term holders’ price and MVRV. Source: CryptoQuantSimilarly, Bitcoin’s short-term holder market value to realized value remained below 1, a level historically associated with buying opportunities and further proof that short-term holders are at a loss.Related: Bitcoin US vs. offshore exchange ratio flashes bullish signal, hinting at BTC price highs in 2025Bitcoin chops between US and Korean tradersData shows a sentiment divergence between Bitcoin traders in the US and Korea. The Coinbase premium, reflecting US trading, recently spiked, signaling strong US demand and potential Bitcoin price gains. Conversely, the Kimchi premium index fell during the correction, indicating lagging retail engagement among Korea-based traders.This particular uneven demand is reflected in Bitcoin’s recent price action. The chart shows that Bitcoin’s price has oscillated between a tight range of $85,440-$82,750 since April 11. On the 4-hour chart, BTC has retained support from the 50-day, 100-day, and 200-day moving averages, but on the 1-day chart, these indicators are putting resistance on the bullish structure.Bitcoin 4-hour chart. Source: Cointelegraph/TradingViewRelated: Bitcoin online chatter flips bullish as price chops at $85K: SantimentThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
OpenAI sought Anysphere deal before turning its sights on WindSurf
OpenAI was reportedly in talks to buy Anysphere, the company that produces the Cursor AI coding assistant, before entering into talks with rival company WindSurf.According to CNBC, OpenAI approached Anysphere in 2024 and again in 2025, but talks stalled both times. Failing to arrive at a deal led OpenAI to look elsewhere for potential acquisitions.Sources familiar with the deal also say OpenAI is prepared to pay $3 billion to purchase WindSurf, which would make it the company’s largest corporate acquisition to date.An example of OpenAI’s ChatGPT producing computer code through simple text prompts. Source: ChatGPTOpenAI’s attempted acquisition of an AI coding assistant company follows the release of DeepSeek R1 in January 2025, which shattered long-held assumptions about artificial intelligence.DeepSeek was reportedly trained at a fraction of the cost of leading AI models while delivering comparable performance — challenging the belief that scaling requires massive computing power, rattling financial markets, and raising questions about the billions spent by US AI giants.Related: OpenAI to release its first ‘open’ language model since GPT-2 in 2019OpenAI inches toward profitability but cheaper competitors still a challengeOpenAI expects to triple its revenue in 2025 to approximately $12.7 billion by selling paid subscriptions for its leading AI models to individuals and businesses.The company surpassed 1 million premium business subscribers in September 2024. However, OpenAI CEO Sam Altman said the AI giant might not be profitable until 2029.According to Altman, OpenAI needs revenues of approximately $125 billion to turn a profit on its capital-intensive business.In February 2025, Altman said that AI development costs were dropping dramatically. “The cost to use a given level of AI falls about 10x every 12 months,” the CEO wrote in a Feb. 9 blog post.Despite this, high costs and centralization issues continue to plague large-scale corporate AI developers, who must compete with more nimble open-source counterparts.Dr. Ala Shaabana — co-founder of the OpenTensor Foundation — recently told Cointelegraph that the release of DeepSeek solidified open-source AI as a serious contender against centralized AI systems.Shaabana added that the lower cost of open-source systems proves that AI does not need billions of dollars to scale or achieve high-performance benchmarks.Magazine: 9 curious things about DeepSeek R1: AI Eye
Ripple acquisition Hidden Road secures FINRA registration
Prime brokerage Hidden Road, which was recently acquired by Ripple for $1.25 billion, has secured a broker-dealer license from the Financial Industry Regulatory Authority (FINRA) — a move that enhances its capacity in the fixed-income markets. As a FINRA broker-dealer, Hidden Road can further develop its fixed-income prime brokerage services and extend its capabilities in traditional markets, the company announced on April 17. This includes offering institutional clients regulatory-compliant clearing and financing services across fixed-income securities. Membership in FINRA is considered a significant commitment to compliance and investor protection. It also boosts registrants’ credibility in the eyes of investment bankers, according to Telos Capital Advisors, a Dallas-based investment bank. Hidden Road operates a prime brokerage and credit network, clearing more than $10 billion in daily transactions on behalf of more than 300 institutional clients. When it was founded in 2018, Hidden Road focused mainly on foreign exchange markets before expanding into digital assets.These strengths positioned Hidden Road as an attractive acquisition for blockchain payments network Ripple, which ultimately purchased the company on April 8.Ripple’s chief technology officer, David Schwartz, described the acquisition as a “defining moment for the XRP Ledger” by expanding the settlement layer’s use cases across traditional financial markets. Under Ripple, Hidden Road will “exponentially expand its capacity to service its pipeline and become the largest non-bank prime broker globally,” said CEO Brad Garlinghouse. Garlinghouse comments on the Hidden Road acquisition on April 8. Source: Brad GarlinghouseRelated: US to get its first XRP-based ETF, launching on NYSE ArcaPositive regulatory backdrop supports Ripple expansionRipple’s acquisition of Hidden Road comes on the heels of a favorable regulatory backdrop in the United States following the election of President Donald Trump. In January, Ripple secured money transmitter licenses in both Texas and New York, allowing the company to facilitate capital transfers within those states. Two months later, the Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple, ending one of crypto’s longest legal battles and positioning the company to once again focus on expansion. At the time, crypto lawyer John Deaton said the decision is the “final exclamation point that [XRP tokens] are considered digital commodities, not securities.”The SEC is about to get a pro-crypto Chair after Paul Atkins’ nomination was approved by the US Senate on April 9. Once he’s sworn in, Atkins will take the reins from Mark Yueda, who has served as Acting Chair since Jan. 20.Related: Court grants 60-day pause of SEC, Ripple appeals case
Crypto exchange eXch to shut down amid money laundering allegations
Cryptocurrency exchange eXch announced it will cease operations on May 1 after reports alleged the firm was used to launder funds from a Bybit hack.In an April 17 notice, eXch said the majority of people in its management team voted to “cease and retreat” in response to the allegations that North Korea’s Lazarus Group used the exchange to launder roughly $35 million of the funds stolen in a $1.4 billion exploit on Bybit. The exchange said it was the subject of “an active transatlantic operation” aimed at shutting it down and potentially pursuing charges.“Even though we have been able to operate despite some failed attempts to shut down our infrastructure (attempts that have also been confirmed to be part of this operation), we don’t see any point in operating in a hostile environment where we are the target of SIGINT [Signals Intelligence] simply because some people misinterpret our goals,” said eXch.Related: North Korean hackers target crypto devs with fake recruitment testsThe exchange initially denied reports from crypto sleuths suggesting that it had laundered digital assets for the Lazarus Group, but admitted to processing an “insignificant portion of funds” from the February hack. Individuals from eXch’s management team emphasized its focus on user privacy in announcing the shutdown, claiming that some exchanges “abus[e] customers with nonsensical policies” in their attempts to fight money laundering.The biggest hack in crypto historyThe Bybit hack, one of the largest in the history of the crypto industry, resulted in more than $5 billion in withdrawals from users, including the stolen funds. CEO Ben Zhou said on Feb. 22 that the exchange had the means to “cover the loss” if the funds were not recovered. However, the firm later announced it would shutter some of its Web3 services and close its non-fungible token marketplace.As of April 10, Bybit had regained its market share achieved before the hack: roughly 7%. The exchange paid more than $2 million to bounty hunters providing information that could be used to freeze some of the funds traceable to other platforms, which was estimated to be roughly 89% of the $1.4 billion as of March 20.Magazine: Your AI’ digital twin’ can take meetings and comfort your loved ones