PA Daily Report | Uniswap proposes activating a fee switch while VCs begin selling UNI; Ethereum Foundation advances dAI 2026 roadmap.

  • IRS Guidelines: New IRS guidance allows crypto Exchange-Traded Products (ETPs) to stake digital assets, providing a safe harbor and clarifying tax rules for staking rewards. This aims to boost institutional adoption of proof-of-stake blockchains.

  • Brazil Regulation: Brazil's central bank has extended financial sector regulations to cryptocurrency service providers, requiring authorization and compliance with anti-money laundering rules. The rules will take effect in February 2026.

  • Uniswap Proposal: Uniswap Labs and the Uniswap Foundation proposed activating a fee switch and a UNI token burning mechanism. This caused UNI's price to surge nearly 38% in 24 hours. However, a suspected Variant Fund address transferred 8.23 million UNI to Coinbase Prime, indicating potential selling pressure.

  • Ethereum Foundation: The Ethereum Foundation is advancing its dAI 2026 roadmap, aiming to position Ethereum as a decentralized settlement layer for AI, enabling autonomous agents to transact and collaborate under transparent rules.

  • Coinbase UK Launch: Coinbase launched a high-interest savings account in the UK, offering a 3.75% annual rate with FSCS deposit protection of up to £85,000.

  • Monad ICO Transparency: Coinbase disclosed detailed market-making agreements for the Monad ICO, including token lending terms with five market makers and third-party oversight to ensure compliance.

  • Institutional Holdings:

    • Strive acquired 1,567 BTC, bringing its total holdings to 7,525 BTC.
    • Bitmine increased its ETH holdings by over 110,000 tokens, totaling 3.5 million ETH.
    • Republic secured $100 million in zero-interest funding to purchase ETH and expand its staking business.
  • Gemini Earnings: Gemini's Q3 revenue surged 52%, but the stock fell to a record low due to net losses from IPO-related expenses.

  • Circle AI Tool: Circle launched an AI chatbot and MCP server to help developers generate code for integrating USDC, CCTP, and other services.

  • U.S. Senate Bill: The Senate Agriculture Committee released a draft bill to regulate crypto, granting the CFTC new powers, though key issues remain unresolved.

  • Notable Data:

    • A whale with a 20-win streak switched to long positions on ETH, BTC, SOL, and UNI, realizing over $8.5 million in unrealized profits.
    • Matrixport withdrew 872 BTC (worth ~$91.68 million) from Binance.
    • Tether minted 1 billion USDT on Ethereum.
  • Investment & Financing: AI presentation tool developer Gamma raised $68 million in a Series B round led by a16z, valuing the company at $2.1 billion.

Summary

Today's top news highlights:

The IRS has issued new guidelines allowing crypto ETPs to stake digital assets.

Caixin reveals details of the "60,000 Bitcoins case": Qian Zhimin purchased a total of 194,951 Bitcoins.

Coinbase disclosed the size of the market-making funds and protocol cycle related to the Monad ICO, and stated that a third party was involved in the entire token process for oversight.

The Ethereum Foundation is advancing the dAI 2026 roadmap: aiming to develop Ethereum into a decentralized settlement core support architecture for AI.

Circle launches AI chatbot and MCP server

Uniswap Labs and the foundation proposed activating a fee switch and a UNI burning mechanism, causing UNI's price to rise nearly 38% in the past 24 hours.

A suspected Variant Fund address transferred another 8.23 million UNI tokens to Coinbase Prime.

Macro

The IRS has issued new guidelines allowing crypto ETPs to stake digital assets.

According to The Block, the IRS has released new guidance establishing a safe harbor for staking digital assets in exchange-traded products (ETPs). Cryptocurrency proponents say this changes the way traditional finance is taxed. U.S. Treasury Secretary Scott Bessent announced the news on Monday on the X platform, stating that the guidance provides a clear path for staking digital assets in ETPs, sharing rewards with retail investors, increasing investor returns, driving innovation, and helping the U.S. maintain its leading position in the digital asset and blockchain space. The IRS stated that they received questions about whether staking would make trusts "unfair to federal income tax rules," and the newly released 18-page guidance includes safe harbor provisions and requirements. Bill Hughes, senior legal counsel at Consensys, said that trusts meeting certain conditions (such as holding only one digital asset and cash, using qualified custodians, etc.) can stake cryptocurrency on permissionless proof-of-stake networks. This safe harbor provides clear guidance for institutions and accelerates the adoption of proof-of-stake blockchains in the mainstream market.

Brazil expands financial sector regulation to include cryptocurrency service providers.

According to The Block, on Monday, the Central Bank of Brazil issued new regulations for local digital asset companies, further tightening requirements for service providers to combat illicit activities. Under the new regulations, virtual asset service providers must obtain authorization from the Central Bank of Brazil to operate and are categorized into three types: virtual asset intermediaries, custodians, and brokers. The new regulations extend existing financial industry requirements such as customer protection, internal governance, and anti-money laundering to cryptocurrency service providers, requiring them to establish compliance and risk management systems. Service providers that meet the requirements and take sufficient measures will be granted operating authorization. Furthermore, the buying and selling of stablecoins pegged to fiat currencies, as well as international transfers or settlements using virtual assets, will be subject to foreign exchange market regulation; if unauthorized counterparties are involved, the transaction amount will be capped at $100,000. The new regulations will take effect in February 2026, giving companies nine months to adapt; those failing to comply by November 2026 will be required to cease operations.

The U.S. Senate approved a bill to end the government shutdown and transferred it to the House of Representatives.

According to Jinshi News, the U.S. Senate approved a bill to end the government shutdown and transferred it to the House of Representatives.

Caixin reveals details of the "60,000 Bitcoins case": Qian Zhimin purchased a total of 194,951 Bitcoins.

Caixin.com disclosed details of the "60,000 Bitcoin Case," revealing that Qian Zhimin purchased a total of 194,951 Bitcoins. When fleeing China, she took over 70,000 Bitcoins with her laptop. Her escape route was meticulously planned and assisted by multiple people. Qian Zhimin's final sentence will be officially announced by the presiding judge on November 11, 2025, London time. It is understood that Qian Zhimin's defense lawyer has presented reasons for a reduced sentence, stating that she behaved well in custody, qualifying as a "model prisoner," and pointing out that she suffers from diabetes. The lawyer also emphasized that she pleaded guilty immediately at the trial, effectively conserving judicial resources.

Coinbase launches savings accounts in the UK, offering a 3.75% interest rate and FSCS deposit protection.

According to The Block, Coinbase will launch a Clearbank-backed savings account for select UK users starting November 11th. This account allows eligible UK users to earn daily interest on their pound sterling savings balances at an annualized rate of 3.75% (AER), with instant deposits and withdrawals and no minimum balance or lock-up period. The account is protected under the Financial Services Compensation Scheme (FSCS), which provides up to £85,000 (approximately US$112,000) in compensation should the service provider go bankrupt, consistent with traditional UK banks. Notably, its 3.75% interest rate is higher than most mainstream banks but lower than some top fintech savings rates. Coinbase plans to gradually roll out the account to all UK users in the coming weeks. The UK is Coinbase's largest international market and a key to its global expansion; this launch follows its FCA registration as a virtual asset service provider in February of this year.

The Senate Agriculture Committee's draft bill on encryption grants the CFTC new powers, but key issues remain unresolved.

According to The Block, the U.S. Senate Agriculture Committee has released a draft bill to regulate the crypto industry, granting the CFTC new powers. This follows the House of Representatives' passage of the Digital Asset Market Transparency Act in July, prompting the Senate to begin drafting its own related legislation. The draft, proposed by the Republican-led Senate Banking Committee, aims to delineate the jurisdictions of the SEC and CFTC and introduce the new concept of "auxiliary assets" to clarify which cryptocurrencies do not fall under the category of securities. Given the Senate Agriculture Committee's jurisdiction over the CFTC, its draft is particularly crucial. This 155-page draft defines digital goods and establishes the CFTC's regulatory framework. Draft author Cory Booker stated that more work is needed, particularly concerning CFTC resource constraints, the potential for regulatory arbitrage due to bipartisan committee members, public corruption, and the adequacy of regulatory measures. The Agriculture Committee's draft provides new funding sources for the CFTC, stipulating that the CFTC should charge fees to unspecified crypto entities. Parentheses in the draft reflect "outstanding issues" that still require negotiation between the two sides. Furthermore, Democrats face obstacles from Trump's concerns about conflicts of interest in crypto businesses; the Agriculture Committee's draft already includes provisions addressing such conflicts of interest.

Opinion

Aerodrome CEO: Uniswap's decision to enable fee switching at this moment is a huge strategic mistake.

Alexander, CEO of Dromos Labs, the development team behind Aerodrome and Velodrome, posted on X: "I never imagined that our biggest competitor would deliver such a major blunder the day before Dromos Labs' most important day... This is a huge strategic mistake made at the worst possible time." Berachain DeFi analyst Cap'n Jack Bearow commented that Aerodrome may announce cross-chain expansion on Wednesday, while Uniswap's ability to reduce LP profitability by enabling a fee switch would benefit Aerodrome's competitiveness. Previously, Uniswap Labs and its foundation proposed activating a fee switch and a UNI burning mechanism.

Project Updates

Coinbase disclosed the size of its market-making funds and protocol duration for the Monad ICO, and stated that a third party was involved in the entire token process for oversight.

According to the official Monad ICO documents released by Coinbase, this issuance is the first case in which a large institution has fully disclosed the list of market makers, funding size, and execution period. The documents indicate that Monad issuer MF Services (BVI) Ltd. has signed token lending agreements with five market makers: CyantArb (50 million MON, 1 month), Auros (30 million MON, 1 month), Galaxy (30 million MON, 1 month), GSR (30 million MON, 1 month), and Wintermute (20 million MON, 1 year). These short-term agreements can be renewed monthly, and the third-party monitoring agency Coinwatch will be responsible for verifying the token usage and idle balances of the aforementioned market makers. Furthermore, MF Services plans to utilize up to 0.20% of the initial MON supply to provide initial liquidity support to some decentralized exchanges to improve the token's tradability and market stability in the early stages of listing. This measure is included in the "ecosystem development" allocation and is considered a short-term liquidity injection; however, it still carries the risk of DeFi market volatility.

Binance: The total amount of ALLO HODLer airdropped tokens represents 1.5% of the maximum total token supply.

Binance has released details of the ALLO HODLer airdrop. The total supply of ALLO tokens is 200.05 million, with a maximum supply of 1 billion. The total airdrop amount for HODLer is 15 million ALLO tokens (1.50% of the maximum total supply). An additional 20 million ALLO tokens will be used for marketing activities six months after listing. The circulating supply at the time of listing on Binance is 200.05 million ALLO tokens (20.005% of the maximum supply). Previously, it was reported that the 58th project in the Binance HODLer airdrop, Allora (ALLO), has been launched.

OKX: We have launched an investigation into the Hello 402 anomaly and will continue to track on-chain evidence and reserve the right to take legal action.

OKX officially stated on the X platform that it has immediately launched an investigation into the abnormal behavior of the Hello 402 project within the X Layer ecosystem. The investigation confirmed that Hello 402 experienced concentrated selling by related addresses and rapid liquidity drain after the mint event, severely damaging user trust. OKX demands that Hello 402 immediately disclose its contract and fund flow details, complete refunds, and provide a statement of responsibility. OKX emphasized that X Layer will continue to track on-chain evidence and reserves the right to take legal action, always adhering to the principle of protecting user interests and ecosystem security. Furthermore, according to a post by analyst AB Kuai.Dong, the Hello 402 team raised $300,000 during the initial public offering (IPO), but only used a portion for liquidity, causing the price to plummet. The community has also revealed that the project's contract contains a backdoor granting developers unlimited minting privileges. Currently, the project team has closed comments and is questioning the relevant parties on the public chain.

Balancer hackers used the Permit authorization to transfer 195 frozen STS tokens to a new address.

The GoPlus Chinese community posted on the X platform that Balancer hackers used the Permit authorization to pull off a successful escape. This morning, the Balancer attackers, through the permit() authorization, transferred 195 stS tokens (worth approximately $3 million) frozen in the Sonic address 0xf19…fae2 to a new address: 0x0e9c…44D5, and exchanged them for WBTC/ETH. The reason for the freeze's failure: The freeze occurred at the native chain level, affecting only the S token and not other ERC20 tokens (such as stS in this case). stS has a permit() method, and the off-chain signature for permit() does not require the frozen address to pay S, thus rendering the freeze ineffective.

The Ethereum Foundation is advancing the dAI 2026 roadmap: aiming to develop Ethereum into a decentralized settlement core support architecture for AI.

Davide Crapis, head of dAI, the AI team under the Ethereum Foundation, announced that he is working with the Ethereum Foundation management to develop dAI's 2026 development plan. The goal is to make Ethereum the core supporting architecture for global decentralized settlement and coordination for AI, enabling autonomous agents and bots to transact, prove their work, and collaborate under open and transparent rules. These rules should be auditable and expandable by anyone, thus guaranteeing user sovereignty over identity, assets, and data. The plan mentions that ERC-8004 and x402 are emerging as neutral standards for intelligent agent commerce, but fully realizing their potential requires collaborative efforts from all parties. Similar work is needed in other areas with extremely high trust requirements. If Ethereum does not play a leading role, closed platforms or centralized institutions will dominate and control the emerging AI economy.

MegaETH enforces lock-up rules: Publicly discussing off-exchange trading or hedging plans will result in a refund and no distribution.

MegaETH co-founder Namik Murodoglu stated on the X platform: "Any participant in the megaETH sale who locks up tokens for more than one year must meet the following conditions: ① Obtain the tokens through their own account and have no intention of reselling or transferring them; ② Do not engage in any transfer, resale, or hedging transactions that violate applicable laws and regulations. Any participant who publicly discusses OTC and hedging plans on Twitter will have their allocation canceled and receive a full refund. This token sale was oversubscribed by 28 times. It makes no sense to allocate tokens to those who intend to resell them before receiving them. It would be more beneficial to megaETH and other large holders to allocate these tokens to participants who are bullish on megaETH and are at least willing to hold them until the end of their self-appointed lock-up period."

Circle launches AI chatbot and MCP server

According to official news, Circle has announced the launch of an AI chatbot and MCP server. Users can directly generate code in a browser or integrated development environment (IDE) (such as @cursor_ai) to integrate USDC, CCTP, gateways, wallets, and smart contracts within minutes. The official description states that this tool is developed based on Circle's API interfaces, SDK metadata, and technical documentation, ensuring the accuracy and reliability of the output code.

Coinbase has included Fluid (FLUID) and Nomina (NOM) in its listing roadmap.

According to a Coinbase Markets announcement, Coinbase has added Fluid (FLUID) and Nomina (NOM) to its asset listing roadmap. The listing of these assets will depend on market-making support and sufficient technical infrastructure. A separate announcement will be released once these conditions are met.

Uniswap Labs and the foundation proposed activating a fee switch and a UNI burning mechanism, causing UNI's price to rise nearly 38% in the past 24 hours.

According to The Block, Uniswap is planning to activate a protocol fee switch based on the "UNIfication" governance proposal submitted Monday by Uniswap Labs and the Uniswap Foundation. Forum posts indicate that the plan aims to reduce the supply of Uniswap's native UNI token by activating a burn mechanism and other methods. The "UNIfication" plan employs a multi-pronged approach to reduce token supply. Firstly, it will use protocol fees earned by the Uniswap decentralized exchange and the Unichain sorter to burn tokens. Secondly, it will directly burn 100 million existing UNI tokens in the Uniswap treasury, which should have been burned after the fee switch was activated at token issuance. Simultaneously, the proposal will prevent Uniswap Labs from earning fees through its interface, wallet, and API; its Ethereum frontend has already earned $137 million. Currently, the percentage of fees used for token burning is unclear, but Uniswap's annualized revenue across all versions is expected to exceed $2 billion. In addition to implementing a plan to reward token holders, the "UNIfication" plan will merge the non-profit Uniswap Foundation into Labs, which is responsible for developing the protocol and Unichain L2. According to Coingecko data, the price of UNI token is currently $9.01, up 37.9% in the last 24 hours.

Tether Treasury minted an additional 1 billion USDT on the Ethereum network in the early hours of the morning.

According to Whale Alert, at 01:25 Beijing time, Tether Treasury minted an additional 1 billion USDT on the Ethereum network.

Important data

Matrixport withdrew 872 BTC from Binance, worth approximately $91.68 million.

According to Lookonchain, Matrixport just withdrew 872 BTC from Binance, worth approximately $91.68 million.

The "20-game winning streak whale" switched from short to long positions in ETH, BTC, SOL, and UNI six days ago, and currently has a floating profit of $8.5 million.

According to Lookonchain monitoring, the smart whale 0x9263, who achieved a 20-game winning streak, switched from short to long positions in ETH, BTC, SOL, and UNI six days ago, and currently has over $8.5 million in unrealized profits. His total profits on Hyperliquid have exceeded $31 million.

A suspected Variant Fund address transferred another 8.23 million UNI tokens to Coinbase Prime.

According to on-chain analyst Ember, a suspected Variant Fund address has transferred another 8.23 million UNI to Coinbase Prime. Previously, this address transferred 2.818 million UNI (US$27.08 million) to Coinbase Prime today.

VariantFund, the suspected investment firm behind UNI, transferred $27.08 million worth of UNI to Coinbase Prime.

According to on-chain analyst Ember, following the release of the Uniswap-related proposal, an investment institution (possibly VariantFund) transferred 2.818 million UNI tokens (US$27.08 million) to Coinbase Prime. Subsequently, a large amount of UNI was dispersed from Coinbase Prime to centralized exchanges such as Binance, OKX, and Bybit. Previously, Uniswap Labs and the foundation proposed activating a fee switch and a UNI burning mechanism.

A major whale is suspected of spending over $30 million to purchase ZEC tokens in multiple transactions on Binance this morning.

According to on-chain analyst @ai_9684xtpa, a whale is suspected of accumulating large amounts of ZEC tokens on Binance, with a single transaction of 2,200 ZEC tokens per second, costing over $30 million. Between 09:35 and 09:44 this morning, Binance saw a flurry of large buy orders, each purchasing approximately 2,200 ZEC tokens (about $1.2 million). This caused the candlestick chart to show a "dinosaur's back" shape in a short period, seemingly indicating that the large buy order was broken down into dozens of smaller buy orders placed at market price. These concentrated buy orders occurred in three waves within 10 minutes.

Investment and Financing/Acquisition

AI presentation tool developer Gamma has completed a $68 million Series B funding round led by a16z, valuing the company at $2.1 billion.

According to official news, Gamma, a developer of AI presentation tools, has completed a $68 million Series B funding round, valuing the company at $2.1 billion. The round was led by Andreessen Horowitz (a16z), with participation from Accel, Uncork Capital, Script Capital, and South Park Commons. The company uses AI technology to automatically convert text into presentations and social media content, and has accumulated 70 million users, including over 600,000 paying users, with annual revenue of approximately $100 million. Gamma has been profitable since 2023 and has only 52 full-time employees. The $12 million raised in its 2024 funding round remains untouched, demonstrating its efficient operational capabilities.

Institutional holdings

Gemini's first earnings report since its IPO showed a 52% surge in revenue, but its stock still fell to a record low.

According to The Block, cryptocurrency exchange Gemini released its first quarterly earnings report since its September IPO. Revenue increased 52% quarter-over-quarter, driven by a rebound in trading and revenue expansion from new products. In the third quarter, net income rose to nearly $50 million, boosted by over $26 million in trading fees and approximately $20 million in service revenue (including record credit card performance and expanded institutional staking business). However, the company still recorded a net loss of $159.5 million, primarily due to IPO-related stock compensation and marketing expenses, with adjusted EBITDA at -$52.4 million. Trading volume reached $16.4 billion, a 45% increase quarter-over-quarter, with institutional trading increasing by nearly 50%. Gemini credit card accounts exceeded 100,000, with spending exceeding $350 million, more than doubling quarter-over-quarter, and staking balance reaching $741 million. Currently, service revenue accounts for nearly 40% of total revenue, compared to less than 30% a year ago. Gemini stated that after its IPO, the company repaid debt and opened a $150 million credit line for its credit card receivables to improve capital efficiency. The company expects full-year service and interest income to reach $60 million to $70 million, and anticipates continued growth in credit card and secured products. Despite the strong earnings, GEMI's stock price fell more than 11% in after-hours trading, dropping below $15 to a record low, as investors focused on widening losses and IPO-related costs.

Biotech company Propanc raises $100 million for cryptocurrency reserves and cancer therapy research.

Digital asset finance company Propanc Biopharma (NASDAQ: PPCB) announced Monday that it has secured up to $100 million in funding from Hexstone Capital, a family office active in Bitcoin, Ethereum, Solana, Dogecoin, and other digital assets. The private placement was conducted through a convertible preferred stock structure, with Propanc receiving an initial investment of $1 million and up to $99 million in follow-on funding over the next year. The proceeds will be used to build Propanc's digital asset portfolio and accelerate the development of its flagship oncology therapy, PRP, which is currently planned for its first human trial in 2026.

Republic secures $100 million in zero-interest funding to purchase ETH and expand its staking business.

Canadian publicly traded company Republic Technologies (CSE: DOCT) announced it has secured $100 million in zero-coupon convertible bond financing from an institutional investor to expand its Ethereum staking and reserves business. The company stated that over 90% of the funds will be used to purchase ETH, with an initial investment of $10 million. This financing is interest-free and requires no margin calls, considered a rare "cash flow neutral" structure in the crypto industry, and includes warrants with a 50% market-market exercise limit. Republic operates ETH validator nodes, earning staking and validator rewards by holding ETH, and has partnered with QCP Capital to develop structured ETH yield strategies with a weekly return of approximately 1.75%.

Strive completed the Nasdaq listing of SATA and increased its holdings by 1,567 Bitcoins, bringing its total holdings to 7,525 Bitcoins.

Bitcoin asset management company Strive (NASDAQ: ASST, SATA) announced the successful listing and oversubscription of its Variable Rate Class A Perpetual Preferred Stock (SATA) IPO, increasing the offering size to 2 million shares at $80 per share. The company also disclosed that it acquired 1,567 BTC during a brief dip in Bitcoin below $100,000, at an average purchase price of $103,315, totaling approximately $162 million. As of November 10, Strive held a total of 7,525 Bitcoins.

Matador completes its first $10.5 million convertible bond financing, dedicated to increasing its Bitcoin holdings.

Matador Technologies Inc. announced that it has completed its first tranche of convertible bond financing, amounting to $10.5 million, with ATW Partners to increase its Bitcoin holdings. The company plans to use this facility to purchase up to 1,000 BTC by 2026 and accumulate 6,000 BTC by 2027, aiming to rank among the top 20 global corporate Bitcoin holders. The convertible bonds carry an 8% annual interest rate, which will decrease to 5% if the company successfully transfers its listing from TSX Venture to Nasdaq or the NYSE.

Strategy added 487 bitcoins last week, totaling approximately $49.9 million.

Strategy purchased 487 bitcoins between November 3rd and November 9th at an average price of $102,600, for a total expenditure of approximately $49.9 million. As of November 9th (Eastern Time), the company held approximately 641,692 BTC, with a total purchase cost of approximately $47.54 billion and an average holding cost of $74,079. Documents show that the funds for this purchase came from the proceeds of the sale of preferred stock in its ATM equity financing plan. The company also noted that its 2025 Bitcoin investment year-over-year yield (BTC Yield) has reached 26.1%.

Bitmine increased its holdings by over 110,000 ETH last week, bringing its total holdings to 3.5 million ETH.

Cryptocurrency reserve firm BitMine Immersion Technologies (NYSE American: BMNR) increased its holdings of Ethereum (ETH) by 110,288 tokens in the past week, a 34% increase from the previous week, for a total purchase of approximately $398 million. As of November 9, the company held approximately 3,505,723 ETH, representing about 2.9% of the circulating ETH supply, worth approximately $12.64 billion at market price.

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