What GP looks for in consensus upgrades

https://preview.redd.it/22t7uk5qw05f1.jpg?width=1280&format=pjpg&auto=webp&s=63d85971fe9034cf9a3afd79280ac6521e1d2ec9

General Protocols as a company is broadly interested in two things, in order:

1. Long-term prospects of Bitcoin Cash as widely used permissionless money for the world.
2. Short and long term usefulness of the Bitcoin Cash in all its aspects - currency, protocol and network - to General Protocols' current and prospective products.

GP has been an active participant in the CHIPs Process for BCH upgrades since its introduction in 2021. CHIPs is the first attempt at permissionless, consistent upgrades that invite network participation in and orderly manner in any Bitcoin branch. The first CHIPs document laid out some principles , recommendations for benefits and costs , as well as comparison to alternatives.

Let's take a closer look at some specific proposals in the past, which benefits and costs we prioritize - or not!.

Past cases

Unconfirmed transaction chain limit (2021)

Context: https://github.com/softwareverde/bitcoin-cash-chips/blob/master/unconfirmed-transaction-chain-limit.md

Lifting of the unconfirmed transaction chain limit was perhaps the single biggest improvement to BCH's user experience since the fork. The original 25-transactions limit relay policy at fork was crippling; the revised 50-transactions cap was still extremely limiting. These caps were already an annoyance in daily cash use, as seen in frequent payouts during BCH events. They would become debilitating as BCH gained more defi capabilities in later consensus upgrades, as UTXO chains pass around unrelated parties in quick succession.

This chain limit was the result of a mempool policy called Child-pays-for-parent (CPFP), an algorithm that optimized miner income when mempool is congested and choices have to be made. Importantly, BCH's community generally considers full mempools as something that should happen very rarely. Optimizing behavior during congestion at the cost of a large UX degradation during non-congested times would seem to make a lot less sense than other contexts where full mempools were not only frequent, but encouraged.

The CHIP proposed removing the chain limit entirely. It was radical at the time as CPFP's performance cost rises dramatically as unconfirmed chains get longer - most considerations accordingly explored how far could nodes plausibly extend the limit under the same paradigm.

It was not until BCHN actually tested removing CPFP mechanisms entirely that the community realized how little the chain limit mattered in performance, as long as CPFP was removed as a relay policy. It also had no negative impact on existing users; no known applications depend on the 50-tx limit to function.

The Unconfirmed Transaction Chain Limit CHIP therefore had a very large benefit to both BCH and General Protocols, while having essentially no cost outside of initial implementation. General Protocols decided to support the proposal.

ASERT difficulty adjustment algorithm (2020)

Context: https://github.com/bitcoincashorg/bitcoincash.org/blob/master/spec/2020-11-15-asert.md

ASERT came at a turbulent time for BCH. Coin price was down dramatically from a multiyear bear market, miner interest was waning, and the chain was facing another potentially destructive split from its then-lead developer's unilateral push to collect a consensus-enforced miner tax for himself.

BCH further faced an existential crisis as a proof-of-work coin: Constant mining, as opposed to opportunistically switching to BCH only when profitability peaks, was getting too unprofitable thanks to a flaw in its difficulty adjustment algorithm, exacerbated as a minority chain. At worst this could lead to a death spiral as fewer and fewer hashpower persist through the bad times; at best it led to frequent episodes of very long gaps between blocks, degrading user experience. ASERT smooths out profitability, incentivizing more consistent mining.

It did not come without a cost, though. Any change in difficulty adjustment impacts client software that depends on permissionlessly understanding blockchain headers, such as SPV clients. Electron-cash wallet, for example, had to push a major release, and users were forced to upgrade. Some wallets like Bitcoin Wallet for Android was never updated and fell off the map, only to be succeeded in spirit years later by Selene Wallet.

Despite the cost, the proposal addressed a sufficiently urgent problem for BCH in a reasonable way, with no attractive alternative. It had a significant cost, but the cost was far outweighed by consequences of inaction. Along with the rest of the ecosystem, General Protocols decided to support the proposal.

Introspection opcodes (2022)

Context: https://gitlab.com/GeneralProtocols/research/chips/-/blob/master/CHIP-2021-02-Add-Native-Introspection-Opcodes.md

Introspection was proposed and locked in during interesting times. SmartBCH, a sidechain attempt to attach Ethereum Virtual Machine to BCH, was still growing; there were talks that BCH may not need additional smart contract capabilities as sBCH takes advantage of existing EVM tooling to obsolete any demand on the UTXO side of things. sBCH would later implode for a number of converging reasons, but it was not known at the time (2021).

General Protocols' primary product on BCH, BCHBull, would not see beta until the next year. But it was already apparent that emulating covenant capabilities via OP_CHECKDATASIG, central to BCHBull and possible future products, was extremely limiting and complex. Introspection was not only significantly cheaper and safer, but also opened the doors to complex products elsewhere like Moria and Fundme, which might not have been possible due to the high development and transaction cost associated with CDS covenant emulation.

While the expected cost to existing software and users was minimal as laid out in the CHIP, there was significant debate across Bitcoin forks about the optimal path to covenant capabilities. On a high level, fear of fungibility erosion was driven by the possibility of significant amounts of coins locked up in covenant chains forever. While most the BCH community did not take these philosophical concerns seriously, they nonetheless existed, and to this day still drives covenant-upgrade talks at BTC.

Due to abundance of caution for such a widely debated topic, General Protocols held back its support at first. Our product stood to benefit massively, but building confidence in the whole chain was more important - without which nothing could thrive including us.

Only after much further investigation along with the Cashscript crew did we find the costs miniscule, in the face of concrete, significant benefits. We could testify these first-hand due to our experience in designing smart contracts, and indeed it turned out most of the smart contracts after BCHBull would not have existed without Introspection. We decided to support the proposal.

PMv3 (2021)

Context: https://github.com/bitjson/pmv3/

PMv3 was a fascinating proposal. It was a radical departure from existing transaction format, it purports to do several different things at once. It was supposed to enable consensus-enforced tokens; it offered a path to full malleability protection; it enabled nifty contract setups that carry state from transaction to transaction. All of the benefits, at face value, were quite attractive.

Yet its problems were also many. Its token capability, a driving feature, was not very satisfying when examined in detail and design trials. It required significant development on top of existing software to take advantage of any of its benefits. As it was a big change in transaction format, possible breakage of existing setups would take time to be fully assessed.

Was the big cost worth the vague benefits? General Protocols wasn't sure, and did not support nor reject the proposal, only keeping up with its evaluation and alternatives. The proposal was eventually obsoleted by Cashtokens, delivering most of its promised benefits at a much lower cost.

Which proposals do we support? Which ones not?

As we hopefully showed above, General Protocols does not have a rigid formula or "roadmap" for proposals it support - instead, we evaluate benefits and costs for each proposal individually, with heavy emphasis on practical usecases over abstract "purity" or nice-to-haves.

If a proposal has concrete, urgent and demonstrably high benefits over its alternatives, even significant costs can be overcome to warrant our support. On the flipside, if the benefits are vague, speculative and require disproportionate investment to realize, it would have a much harder time justifying its costs. Our judgement heavily skews to the practical side, and we do keep a healthy appreciation of the status quo as a low-cost alternative to any proposal that cannot sufficiently justify its costs.

It is important to note that even superficially "low-cost" proposals may not get our support or even serious consideration, if the changes are invasive or radical enough over its expected benefits. Debates and serious considerations have inherent opportunity costs all on their own - not just for us, but throughout the whole ecosystem. Hours, days and weeks spent looking at and iterating questionable proposals are time that could be spent on more slam-dunk proposals as well as the usecases themselves, time that BCH developers are always running short of.

The Daily Market Flux - Your Complete Market Rundown (06/04/2025)

MarketFlux.io is a real-time financial news and analytics aggregator that gathers textual news from over 350 sources, providing instant insights and advanced filtering capabilities. With AI-powered sentiment analysis, historical search, and customizable filters, MarketFlux.io enables traders and investors to efficiently track market-moving events as they unfold. Visit Marketflux.io

Top Stories

Trump-Putin Call: No Immediate Peace, Ukraine Tensions Persist

Trump had a 75-minute call with Putin, discussing Ukraine's drone attacks on Russia, Iran's nuclear deal, and other international issues. While the conversation was "good," Trump stated it won't lead to immediate peace. Putin vowed to respond to Ukraine's attacks.

Explore more at MarketFlux

US Private Sector Hiring Slumps in May, ADP Data Shows Weakest Job Growth in Over a Year

ADP reports US private sector job growth slowed significantly in May, with only 37,000 jobs added versus 115,000 expected. This marks the lowest hiring level since March 2023, raising concerns about economic uncertainty and potential impacts of trade wars.

Explore more at MarketFlux

South Korea's New President Lee Vows Economic Revival and Diplomatic Pragmatism

South Korea's new President Lee Jae-myung takes office, pledging to revive the economy, pursue pragmatic diplomacy, and strengthen cooperation with the US and Japan. He aims to open communication with North Korea and establish peace on the Korean Peninsula.

Explore more at MarketFlux

Trump Dives into Crypto: Plans Branded Wallet and Trading App for Supporters

Former President Trump is reportedly set to launch a branded cryptocurrency wallet and trading app, urging supporters to invest in his memecoin and other digital assets. This move marks Trump's foray into the crypto world, potentially leveraging his political influence in the digital currency space.

Explore more at MarketFlux

Other News

Geopolitics Events

Trump and Putin's 75-Minute Call Addresses Ukraine Conflict, Iran Nuclear Issue, but Yields No Immediate Peace Prospects

President Donald Trump recently had a lengthy phone call with Russian President Vladimir Putin, lasting approximately 75 minutes. The conversation covered several critical topics, including the ongoing conflict between Russia and Ukraine, recent Ukrainian drone strikes on Russian airfields, and the Iranian nuclear issue. Trump described the call as "good" but emphasized that it would not lead to immediate peace in the region. According to Trump, Putin stated he would have to respond to Ukraine's recent attacks, indicating a potential escalation in tensions. The two leaders also discussed Iran's nuclear program, with Trump expressing concern that Iran is "slow-walking" its decision on a nuclear deal. Putin reportedly agreed to participate in discussions with Iran, which Trump believes could be helpful in resolving the issue. The call also touched on other international matters, including the conflict between India and Pakistan. While both leaders affirmed their readiness to maintain constant contact, Trump stressed the need for a definitive answer from Iran soon regarding its nuclear ambitions. The Kremlin confirmed the call took place, with Putin's aide Ushakov providing additional details on the topics discussed and the leaders' agreement to continue high-level contacts on Ukraine through various channels.

Trump Demands Rate Cut from "Unbelievable" Powell After Weak Jobs Report Shocks Markets

Former President Donald Trump has renewed his calls for Federal Reserve Chair Jerome Powell to lower interest rates following the release of weak ADP employment data. The private sector jobs report showed the slowest growth in over two years, prompting Trump to label Powell as "unbelievable" and insist it's "too late" but he "must now lower the rate." Trump's comments, made on his Truth Social platform, highlight the ongoing pressure on the Fed to adjust monetary policy amid signs of labor market weakness. He also pointed out that Europe has lowered rates nine times, suggesting the U.S. is lagging behind. This latest outburst from Trump comes as the Fed continues to maintain its stance of being in "no hurry" to cut rates, despite growing concerns about economic indicators and potential impacts of trade tensions.

Trump Praises Xi Personally, But Calls Him "Extremely Hard" to Deal With in Trade Talks

President Trump has expressed mixed feelings about China's President Xi Jinping in a recent statement. While affirming his personal fondness for Xi, Trump emphasized the Chinese leader's tough negotiation style, describing him as "very tough" and "extremely hard to make a deal with." This comment highlights the ongoing challenges in U.S.-China trade relations and suggests potential difficulties in reaching a trade agreement. Trump's remarks underscore the complex dynamics at play in the high-stakes negotiations between the world's two largest economies.

CBO: GOP Tax Plan to Add $2.4 Trillion to US Debt, Sparking Fiscal Concerns

The Congressional Budget Office projects that the House GOP tax bill will increase the US debt by $2.4 trillion through 2034. This nonpartisan analysis raises concerns about long-term fiscal sustainability and the impact on federal deficits.

China Eyes Massive Airbus Order, Potentially Snubbing Boeing

China is contemplating a significant order of approximately 300 Airbus jets, potentially dealing a blow to Boeing. This move could represent a major shift in China's aviation market preferences.

Trump Urges Scrapping Debt Limit to Avert Economic Disaster

Former President Trump calls for the complete elimination of the debt limit, arguing it's too dangerous to be wielded by politicians. He warns that its misuse could lead to catastrophic economic consequences, not just for the United States but potentially for the global economy. Trump emphasizes the need to prevent such a devastating scenario.

Taiwan and US Defy China's Silence, Commemorate Tiananmen Square Crackdown on 36th Anniversary

On the 36th anniversary of the Tiananmen Square crackdown, Taiwan's president and the US Secretary of State defied China's silence by commemorating the event. They vowed to uphold democratic values and condemned Beijing's censorship of the 1989 incident that killed hundreds, possibly thousands, of pro-democracy protesters. Taiwan's president emphasized the ongoing threat of authoritarianism and the importance of remembering history. Both leaders stressed the need for international cooperation in defending democracy and freedom, with Taiwan positioning itself at the forefront of this global effort. China continues to censor and avoid official commemoration of the event, maintaining silence over this dark chapter in its history.

US Denies Air Cover for European Forces in Post-War Ukraine

The US reportedly declines to provide air support for European forces in post-conflict Ukraine, potentially impacting regional security dynamics and NATO's strategic planning.

NATO Chief Rutte: U.S. Commitment Firm, Allies Must Boost Defense Spending

NATO's Rutte affirms U.S. commitment to NATO's mutual defense pact, but emphasizes the expectation for increased defense spending from Europe and Canada. Ukraine is invited to the NATO summit in The Hague, while there are no current plans for U.S. troop withdrawal from Europe.

Elon Musk Rallies Public to "Kill" Trump's Tax Bill, Warning of Potential Bankruptcy for America

Elon Musk has launched a public campaign against Donald Trump's proposed tax bill, urging Americans to contact their representatives and demand they "kill the bill." Musk argues that the legislation is a "disgusting abomination" that would "bankrupt America," escalating his criticism of the former president's signature tax plan.

China Seeks French Support to Ease EU Trade Tensions Amid US Rift

China's Commerce Minister met with France's Trade Minister, urging France to help resolve trade disputes between China and the EU. Beijing emphasized the importance of dialogue in addressing bilateral trade issues, seeking to strengthen ties with Europe amid ongoing tensions with the US.

Zelenskiy Proposes Ceasefire, Seeks Putin Meeting Amid Ongoing Ukraine-Russia Conflict

Ukrainian President Zelenskiy has proposed a ceasefire until a leaders' meeting with Russia can be arranged. He expressed readiness to meet Putin even without a ceasefire and dismissed Russian demands as an ultimatum. A prisoner of war exchange is planned for the weekend, following limited progress in Istanbul peace talks. Meanwhile, Germany's defense minister announced efforts to secure more air defense systems for Ukraine.

Putin Doubts Ukraine Peace Talks, Cites Recent Attacks as Obstacle

Putin expresses skepticism about potential summit with Ukraine and ceasefire, citing recent attacks. He accuses Ukraine of "terrorist" railway blasts, undermining peace efforts amid ongoing conflict.

U.S. Downgrades Ukraine's Drone Strike Impact, Citing Fewer Russian Planes Hit

U.S. officials assess that Ukraine's recent drone attack destroyed up to 20 Russian warplanes, fewer than Kyiv's estimates. The strike, targeting nuclear-capable bombers, is deemed significant but may complicate peace talks. The attack highlights escalating tensions in the ongoing conflict.

Macro Events

Bank of Canada Holds Rates Steady as U.S. Job Market Shows Signs of Cooling

The Bank of Canada is expected to maintain interest rates at 2.75% amid mixed economic signals. While core inflation remains high and Q1 GDP exceeded forecasts, rising unemployment and weak consumption may lead to future rate cuts. Meanwhile, the U.S. job market shows signs of slowing, with ADP reporting only 37,000 private-sector jobs added in May, far below the expected 115,000. This marks the lowest hiring level since March 2023 and suggests a potential halt in job market growth. The disappointing ADP figures have raised concerns about the impact of trade wars on employment, with markets now closely watching Friday's BLS report for further insights. Globally, economic uncertainties persist, with ongoing trade tensions and varied economic indicators across different countries.

Eurozone Economic Growth Stalls as Services Sector Stumbles, UK and Italy Show Resilience

The Eurozone's economic landscape in May 2025 showed mixed signals, with the composite PMI edging up to 50.2, surpassing forecasts. However, the services sector dipped below 50 for the first time since November, indicating contraction. Italy stood out with a robust services PMI of 53.2 and improved business expectations. The UK saw a rebound in services to 50.9 as U.S. tariff concerns eased. Germany's services sector hit a 30-month low at 47.1, dragging down the country's broader economic outlook. France's services PMI improved to 48.9, but business confidence plummeted to a five-year low.

Trump Demands Rate Cut from "Unbelievable" Powell After Weak Jobs Report Shocks Markets

Former President Donald Trump has renewed his calls for Federal Reserve Chair Jerome Powell to lower interest rates following the release of weak ADP employment data. The private sector jobs report showed the slowest growth in over two years, prompting Trump to label Powell as "unbelievable" and insist it's "too late" but he "must now lower the rate." Trump's comments, made on his Truth Social platform, highlight the ongoing pressure on the Fed to adjust monetary policy amid signs of labor market weakness. He also pointed out that Europe has lowered rates nine times, suggesting the U.S. is lagging behind. This latest outburst from Trump comes as the Fed continues to maintain its stance of being in "no hurry" to cut rates, despite growing concerns about economic indicators and potential impacts of trade tensions.

US Services Sector Expands, Brazil's Contracts in May PMI Data

US services PMI rises to 53.7 in May, beating expectations. Composite PMI also increases to 53. Meanwhile, Brazil's services and composite PMIs show slight changes but remain below 50, indicating contraction.

CBO: Trump's Tariffs Could Slash $2.8 Trillion from Deficit, but May Hamper Economic Growth

The Congressional Budget Office (CBO) projects that President Trump's tariffs, if maintained for a decade, could reduce U.S. budget deficits by $2.8 trillion. This estimate accounts for potential economic impacts. The CBO, a nonpartisan entity, shared these findings in a letter to Democrats. However, the report also warns that the tariffs may lead to a decrease in overall U.S. economic output.

CBO: Trump Tariffs to Slash Deficit by $2.8T, but at Cost of Economic Growth

The Congressional Budget Office (CBO) projects that President Trump's tariffs, if maintained for a decade, could reduce U.S. budget deficits by $2.8 trillion. However, this comes with economic trade-offs. The CBO anticipates a decrease in economic output, a 0.6% hit to GDP, and a 0.9% increase in inflation by 2026. Despite potential court challenges, the tariffs are expected to have a significant fiscal impact, outweighing the deficit increase from Trump's tax and spending bill.

Fed's Beige Book Shows Slight Economic Decline and Mixed Outlook Across Districts

The Federal Reserve's Beige Book reveals a slight decline in economic activity across most districts, with mixed outlooks. Six districts reported declines, three saw no change, and three experienced slight growth. Price increases were moderate, but expectations of faster cost and price rises were widespread. The report, prepared by the St. Louis Fed, highlights the varied economic landscape across the country.

Fed Removes Wells Fargo's Asset Cap, Signaling End to Growth Restrictions

The Federal Reserve has lifted Wells Fargo's $2 trillion asset cap, imposed in 2018 due to a fake-accounts scandal. This decision allows the bank to grow again, marking a significant milestone. CEO Charles Scharf welcomed the news, and Wells Fargo's stock rose in response.

Sweden and India Lead Services Sector Growth as APAC PMIs Show Mixed Results

Sweden's services PMI rose to 50.8 in May, surpassing expectations. Across APAC, PMIs showed mixed results, with notable growth in India's services sector at 58.8. Despite a slight dip from April, India's services PMI remained strong, driven by export orders and record hiring. Japan's services PMI also improved to 51.0. These figures indicate economic resilience in various regions, though rising costs may pose challenges for central banks.

Trump's 50% Steel and Aluminum Tariffs Implemented, Raising Price Concerns

Trump's 50% tariffs on steel and aluminum imports have taken effect, potentially impacting prices of various products. The move aims to protect domestic industries but may shift trade patterns and increase costs for consumers.

Housing Market Uncertainty Persists Amid Interest Rate Decision and Stagnant Listings

The housing market remains uncertain as the Bank of Canada's interest rate decision looms. Active home listings have stagnated in key states, with North Dakota, New York, and West Virginia experiencing weak gains or declines. Supply tightness persists in these markets. Meanwhile, real estate stocks like Alexandria Real Estate and IRSA are attracting investor attention as potential refuges. The US home purchase applications gauge has declined to a five-week low, reflecting ongoing challenges in the housing sector.

U.S. Services Sector Shrinks Unexpectedly as Tariff Pressures Mount

U.S. services sector activity unexpectedly contracted in May, with the ISM services PMI falling to 49.9, signaling the first contraction in nearly a year. This decline, coupled with reduced hiring, suggests mounting economic pressure from tariffs. New orders dropped significantly, while input prices surged to a 1.5-year high. The data points to increasing uncertainty and inflation concerns for businesses, raising stagflation worries amid supply bottlenecks and tariff-driven cost increases.

US Services PMI Surprises, Trade War Impacts Linger: Markets Await Key Events

US services PMI unexpectedly rose to 53.7 in May, surpassing forecasts of 52.3. However, new orders contracted to 46.4, below expectations. The trade war between the US and China continues to impact markets, with Apple and Alibaba's AI rollout in China delayed. Markets remain cautiously optimistic but with reduced liquidity as key events approach.

Canadian Services Sector Shows Signs of Improvement in May

Canada's services PMI rose to 45.6 in May, a 3-month high, indicating slower contraction. Business optimism improved despite ongoing challenges, with jobs and price pressures showing signs of recovery.

US to Impose Aircraft Tariffs by Month-End, Says Commerce Secretary Lutnick

Commerce Secretary Howard Lutnick announced plans to set aircraft tariffs by month-end, following completion of a 232 analysis on aircraft parts. This decision will impact the aviation industry and international trade relations.

Canada Weighs Options, Including Counter-Tariffs, in Response to U.S. Trade Measures

Canada's Industry Minister is carefully considering various responses to recent U.S. tariffs, indicating that more time is needed to evaluate options. The minister emphasized that additional counter-tariffs remain a possibility, highlighting the ongoing trade tensions between the two nations and Canada's commitment to protecting its economic interests.

Technology Events

Amazon Bets Big on AI: $10 Billion Investment in North Carolina to Fuel Cloud and AI Innovation

Amazon is making a massive $10 billion investment in North Carolina to expand its cloud computing infrastructure and advance AI innovation. This ambitious project will create at least 500 new jobs and significantly boost Amazon Web Services' capacity to meet the surging demand for generative AI. The investment is part of Amazon's larger $100 billion capital expenditure plan for the year, highlighting the tech giant's commitment to AI development. This move brings Amazon's total investment in North Carolina to $22 billion since 2010, further solidifying the state's position as a tech hub.

Reddit Sues AI Firm Anthropic Over Alleged Unauthorized Data Use

Reddit is taking legal action against AI startup Anthropic, alleging unauthorized use of user data and breach of contract. The lawsuit claims Anthropic exploited Reddit's content without proper licensing, raising concerns about data rights and AI training practices.

NVIDIA's Blackwell Superchips Power Record-Breaking AI Performance in Latest MLPerf Results

CoreWeave, NVIDIA, and IBM have set new benchmarks in AI performance with record-breaking MLPerf results using NVIDIA's GB200 Grace Blackwell superchips. This achievement showcases significant advancements in AI training efficiency, with Blackwell chips demonstrating the ability to train large language models like Meta's 405B Llama over twice as fast as previous generations. The results highlight the growing demand for AI acceleration in data centers and NVIDIA's continued dominance in the AI hardware market.

U.S. Revises CHIPS Act Grants, Pushes for Domestic AI Dominance

Commerce Secretary Lutnick announces renegotiation of CHIPS Act grants, citing "overly generous" awards. He emphasizes keeping over 50% of global AI compute capacity in the U.S., aiming to reduce costs while maintaining technological leadership.

Microsoft's Free AI Cybersecurity Initiative Shields European Governments

Microsoft launches a free AI-powered cybersecurity program for European governments to combat rising state-backed cyber threats, aiming to enhance intelligence-sharing and protect critical infrastructure.

Microsoft Reshuffles Leadership: LinkedIn CEO to Lead Office and AI Initiatives

LinkedIn CEO Ryan Roslansky will oversee Microsoft Office and AI Copilot teams while retaining his current role. This executive reshuffle aims to accelerate AI integration across Microsoft's products, aligning key divisions under Windows chief Rajesh Jha.

Meta Courts Hollywood Giants for Exclusive Content on New Premium VR Headset

Meta Platforms is reportedly in talks with major entertainment companies like Disney and A24 to fund exclusive content for its upcoming premium virtual-reality headset. Codenamed "Loma," the device is set to launch in 2026 with a price tag under $1,000. This strategic move aims to compete with Apple's Vision Pro by offering immersive experiences in the VR space.

OpenAI Hits 3M Business Users, Expands Workplace Offerings

OpenAI reaches milestone of 3 million paying business users and introduces new workplace features, signaling growth in AI adoption for professional applications.

Tesla's China Sales Slump 15% in May, BYD Surges Ahead in Competitive EV Market

Tesla's China-made EV sales dropped 15% year-over-year in May, delivering 61,662 vehicles. Despite a slight monthly increase, Tesla lagged behind competitor BYD, which saw a 14.1% rise in sales. The overall Chinese NEV market grew 38% annually, highlighting Tesla's challenges in this key market amid fierce competition.

Oil And Gas Events

EIA Report Shows Surprising Crude Inventory Drop, but Fuel Stock Builds Muddy Oil Market Outlook

The latest EIA report reveals a significant drop in US crude oil inventories, surpassing market expectations. Crude stocks fell by 4.304 million barrels, compared to the forecasted 3.128 million barrel decrease. This unexpected decline suggests a bullish trend for crude prices. However, the report also showed substantial increases in gasoline and distillate inventories, which could potentially offset the positive impact on oil prices. Gasoline stocks rose by 5.219 million barrels, while distillate inventories increased by 4.230 million barrels, both exceeding predictions. Refinery utilization rates climbed by 3.2%, indicating increased production activity. The conflicting data presents a mixed picture for the oil market, with crude inventories supporting higher prices while growing fuel stocks may exert downward pressure. Traders are now weighing these factors against broader geopolitical tensions and OPEC's supply decisions.

Saudi Arabia Tweaks Global Oil Prices Amid OPEC+ Output Boost

Saudi Arabia adjusts oil prices for July, cutting rates for Asian buyers while raising them for Europe and the US. This move follows OPEC+'s decision to continue increasing output. Aramco set the Arab Light crude OSP to Asia at +$1.2/bbl vs Oman/Dubai average, to NW Europe at +$3.25/bbl vs ICE Brent, and to the US at +$3.5/bbl vs ASCI.

Russian Oil Revenue Plummets Amid Global Price Slump and OPEC+ Production Hike

Russian oil revenue has fallen to a two-year low as global crude prices decline, impacting the country's state budget. Banks are revising their 2025 oil price forecasts below $60 per barrel, citing increased OPEC+ production and flat demand growth. Oil prices are currently caught between conflicting factors, including geopolitical tensions, OPEC+'s supply surge, and Canada's wildfires affecting production. The market is also closely watching China's control of critical mineral exports. Despite these challenges, crude oil futures have rallied, with OPEC+ plans offsetting Canadian supply disruptions. The oil market remains in a delicate balance as various economic indicators and global events continue to influence prices.

TotalEnergies Expands Presence in Brazil's Offshore Oil Sector

TotalEnergies increases its stake in Brazil's Lapa offshore oil field through an asset swap with Shell, strengthening its position in the country's energy sector. This move aligns with the company's expansion strategy in South America.

Saudis Push for Bigger OPEC+ Output Hikes to Boost Market Share

Saudi Arabia seeks larger OPEC+ production increases to gain market share, potentially impacting global oil supply and prices.

Fixed Income And Interest Rates Events

Treasury Yields Plummet on Weak Economic Data, Fueling Rate Cut Speculation

Treasury yields tumbled to their lowest levels since May, driven by weak economic data, particularly in the labor and service sectors. This has strengthened expectations for potential rate cuts by the Fed. Meanwhile, stocks struggled to maintain small gains as investors weighed the impact of soft economic indicators and ongoing U.S.-China trade talks against cautious optimism in the markets.

Bond Market Buzzes as Stocks Waver on Employment Data; Equity Risk Premium Nears Historic Lows

The bond market sees significant activity with ZF Friedrichshafen's EUR benchmark 5-year senior bond attracting over €4bn in orders. S&P 500 futures erase gains after disappointing ADP employment data, causing Treasury yields to rise. The equity risk premium approaches 23-year lows, though stocks remain more attractive than Treasuries. Municipal bond funds release Q1 2025 commentaries.

BOJ Mulls Easing Bond Tapering Pace, Ueda Confirms Review

The Bank of Japan is reportedly considering slowing the pace of bond tapering next year. Governor Ueda confirmed plans to review taper strategies at the upcoming policy meeting, taking market participants' opinions into account.

Housing Market Uncertainty Persists Amid Interest Rate Decision and Stagnant Listings

The housing market remains uncertain as the Bank of Canada's interest rate decision looms. Active home listings have stagnated in key states, with North Dakota, New York, and West Virginia experiencing weak gains or declines. Supply tightness persists in these markets. Meanwhile, real estate stocks like Alexandria Real Estate and IRSA are attracting investor attention as potential refuges. The US home purchase applications gauge has declined to a five-week low, reflecting ongoing challenges in the housing sector.

Earnings Events

Dollar Tree's Mixed Signals: Strong Q1, but Q2 Profit Warning Spooks Investors

Dollar Tree reported strong Q1 earnings, beating expectations and raising annual profit forecasts. However, the company warned of a potential significant drop in Q2 profits, causing shares to decline.

CrowdStrike Stock Plunges on Weak Forecast, Outage Aftermath Despite Strong Q1 Performance

CrowdStrike's shares tumbled after its Q2 revenue forecast fell short of expectations, impacted by lingering effects from customer incentives following a 2024 outage. Despite solid Q1 results and a 43% year-to-date surge, the cybersecurity firm's outlook and rich valuation are weighing on investor sentiment, leading to mixed analyst reactions.

Crypto Events

JPMorgan Embraces Crypto ETFs with New Financing Options, Defying CEO's Skepticism

JPMorgan is set to introduce financing options allowing clients to borrow against their crypto ETF holdings, including Bitcoin and Ethereum trackers. This move signals growing institutional trust in regulated crypto products, despite CEO Jamie Dimon's anti-crypto stance.

Crypto Market Divergence: Bitcoin Stalls, Ethereum Rises, and XRP Teeters on Breakout Edge

Bitcoin's price stagnates despite reclaiming ground, while Ethereum leads capital rotation. XRP shows mixed signals at $2.25, with a potential breakout brewing. Key Bitcoin holders increase sharply, but ETF sees $1.2B exit in 3 days. The Bitcoin 2025 Conference highlights mainstream adoption, as the crypto market experiences diverse trends.

Bitcoin 2025 Conference Highlights Mainstream Adoption as Price Hovers at $105,000

The Bitcoin 2025 Conference showcased the cryptocurrency's mainstream adoption, with its price hovering around $105,000. Despite fluctuations, key BTC holders increased significantly. BTCPay Server emerged as crucial for Bitcoin commerce. Dogecoin showed bullish signals, while Trump and Powell's actions impacted the market. Ethereum consolidated against BTC, with altseason hopes rising. Bitcoin ETFs saw significant outflows, and Kraken experienced a massive BTC transaction.

Interest Rate Shifts and Market Volatility: From Clorox to Bitcoin, Financial Landscape in Flux

Interest rates are a hot topic in financial news today. Clorox needs lower rates to be attractive, while HELOC and high-yield savings rates are trending down. The Bank of Japan is considering slowing bond tapering, impacting global markets. BlackRock notes a term premium in US bonds, and MicroStrategy's Bitcoin strategy remains high-risk, high-reward. ZIM Integrated Shipping offers a 17% yield, and Lord Abbett's High Income Municipal Bond Fund released its Q1 2025 commentary. The MOVE index reveals a close link between stock and bond market anxiety.

Trump's Truth Social Ventures into Crypto, Files for Bitcoin ETF

Trump's social media company, Truth Social, is making waves in the crypto market by filing for a spot Bitcoin ETF. This bold move signals the firm's expansion into digital assets, despite mixed reactions and potential family confusion over crypto ventures.

XRP Price Consolidates at $2.25 Amid Mixed Signals and Bullish Predictions

XRP's price is consolidating around $2.25, with mixed signals from technical indicators. Analysts are debating potential breakouts and long-term price targets of $3, $5, and $10. Meanwhile, Ripple has denied rumors of an $11 billion Circle acquisition. Increased XRP activity suggests a possible rally, but long-term resistance remains a challenge.

Treasury Yields Climb as Bitcoin Bet Looms Large for MicroStrategy

U.S. 30-year Treasury yields are nearing 5% again, with BlackRock noting an emerging term premium in bonds. Meanwhile, MicroStrategy's Bitcoin strategy presents high risk and potential reward, with varying 2030 NAV projections. High-yield savings accounts offer up to 4.3% APY.

Bitcoin ETFs Bounce Back with $375M Inflow, Signaling Renewed Institutional Confidence

Bitcoin ETFs rebounded with a $375 million inflow on June 3, ending a three-day losing streak. ARK Invest's ARKB led with $139.9 million, followed by Fidelity's FBTC at $136.8 million. Ethereum ETFs also continued their positive streak for the 12th consecutive day, adding 42,010 ETH worth $110 million. This resurgence in institutional interest signals renewed confidence in the crypto market, potentially building bullish momentum.

Corporate Actions Events

Mexico Set to Greenlight Nippon Steel's $14.9B U.S. Steel Takeover

Mexico's antitrust regulator Cofece is poised to renew approval for Nippon Steel's $14.9 billion acquisition of U.S. Steel. This reauthorization, expected as soon as Thursday, clears a crucial hurdle for the cross-border merger after the previous approval expired, keeping the deal on track.

Chart Industries and Flowserve to Unite in $19 Billion Merger

Chart Industries and Flowserve are set to merge in a $19 billion all-stock deal, creating a combined entity worth approximately $19 billion. The announcement is expected soon.

Circle's IPO Poised for Success: Demand Surges 25x Above Available Shares

Circle's IPO is expected to price above the marketed range due to overwhelming demand, with orders exceeding 25 times the available shares. This stablecoin issuer's upsized deal has generated significant investor interest, reflecting strong market enthusiasm for the offering.

Rivian Secures $1.25B in Green Bonds to Refinance 2026 Notes

Rivian Automotive has priced a $1.25 billion green bond offering. The proceeds will be used to refinance outstanding senior secured notes due in 2026, demonstrating the company's commitment to sustainable financing.

Metals Events

Wildfires Force Hudbay Minerals to Halt Manitoba Operations

Hudbay Minerals suspends operations in Northern Manitoba due to ongoing wildfires, impacting their Snow Lake mining activities.

Mexico Threatens Measured Response to U.S. Steel Tariffs, Seeks Agreement by Next Week

Mexico's President Sheinbaum has condemned the U.S. announcement to raise steel and aluminum tariffs as "unfair." The Mexican government is threatening to introduce countermeasures if no agreement is reached by next week. However, Sheinbaum emphasized that Mexico's response won't be "an eye for an eye." Ongoing talks aim to defend Mexican jobs without mirroring U.S. retaliation, but Mexico doesn't rule out imposing tariffs on U.S. steel. The situation is escalating trade pressure between the two nations.

Trump's 50% Steel and Aluminum Tariffs Implemented, Raising Price Concerns

Trump's 50% tariffs on steel and aluminum imports have taken effect, potentially impacting prices of various products. The move aims to protect domestic industries but may shift trade patterns and increase costs for consumers.

Real Estate Events

Housing Market Uncertainty Persists Amid Interest Rate Decision and Stagnant Listings

The housing market remains uncertain as the Bank of Canada's interest rate decision looms. Active home listings have stagnated in key states, with North Dakota, New York, and West Virginia experiencing weak gains or declines. Supply tightness persists in these markets. Meanwhile, real estate stocks like Alexandria Real Estate and IRSA are attracting investor attention as potential refuges. The US home purchase applications gauge has declined to a five-week low, reflecting ongoing challenges in the housing sector.

Blackstone Snaps Up UK's Warehouse REIT in £470M Deal, Signaling Continued Interest in Undervalued British Assets

Blackstone has acquired UK's Warehouse REIT for £470 million ($635.35 million), following a revised bid due to asset valuation concerns. This deal reflects a trend of U.S. firms targeting undervalued UK assets amid a weak economic environment.

Mortgage Applications Plunge Despite Rate Dip

US mortgage applications fell 3.9% last week, despite a slight decrease in 30-year mortgage rates to 6.92% from 6.98%. The decline was more significant than the previous week's 1.2% drop.

Analyst Ratings Events

Needham Downgrades Apple to Hold, Citing Valuation and Competition Worries

Needham downgrades Apple stock to Hold from Buy, citing earnings risks, increased competition, and valuation concerns.

Explore more at MarketFlux

© 2025 MarketFlux. All rights reserved.

Digital Nomad Taxes: Mastering the Nomadic Lifestyle Without Getting Burned

FREE: Diagnose Your Digital Nomad Income Potential, in Under 90 seconds!
Run the Nomad Income Detector™ to uncover Your Nomadic Income profile
Start Diagnostic NOW

You think you're living the dream—working remotely while sipping coffee on a beach in Bali, but here's the catch: your income isn't invisible to governments. Every digital nomad who dreams of freedom must face one harsh truth: taxes don’t stop just because you do.

The myth of tax-free travel is seductive. It paints a picture of endless horizons and zero responsibilities. But the reality is far more complex. Governments are smart. They track not just where you live, but how long you stay, what kind of work you do, and whether you’ve declared it. And they’re getting better at it every day.

🚨 Want to know if your current setup could land you in tax trouble? Run the free diagnostic now: Start Diagnostic NOW

Let’s cut through the noise. Tax residency isn’t just about having a house in a country. It’s about where you spend most of your time, where your bank accounts are, and even where your children attend school. If you cross that invisible line—often 183 days a year—you might suddenly find yourself liable for local taxes.

But it doesn’t end there. Countries have different rules. Some offer favorable treatment to remote workers, others slap you with penalties. You can’t treat them all the same. You need a strategy. And that starts with understanding the basics.

---

Double taxation agreements exist to prevent you from being taxed twice on the same income. Sounds great, right? But these treaties are written in legalese, and their benefits often depend on how you structure your finances. One wrong move and you could end up paying more than if you’d stayed home.

DTAAs aren’t a magic shield. They require careful planning. For example, some countries only exempt income if you meet specific criteria like holding a certain type of visa or not receiving public services. You can’t assume your income is automatically protected.

🚀 Ready to decode your tax obligations across borders? Let’s get started: Start Diagnostic NOW

Freelancers, independent contractors, and gig workers face unique challenges. Unlike traditional employees, you don’t have a payroll department handling your taxes. You invoice clients, and that’s when the clock starts ticking. Each payment is a potential taxable event, and if you’re not tracking it, you’re risking everything.

Invoicing without proper documentation is like playing Russian roulette with your finances. You need records, receipts, and a clear paper trail. Otherwise, you’ll be scrambling during tax season trying to piece together where your money came from—and where it should go next.

---

Cryptocurrency adds another layer of complexity. If you earned Bitcoin in Dubai and sold it in Thailand, which country’s tax laws apply? The answer isn’t always clear. Staking rewards, mining profits, and even crypto tips count as taxable income in many jurisdictions.

This frontier is still evolving, but one thing is certain: governments are watching. If you’re using crypto to mask income or avoid reporting, you’re playing a dangerous game. Transparency is key—even if it feels counterintuitive.

Social security contributions are another minefield. If you freelance, you’re likely responsible for both the employer and employee portions of social security taxes. In the US, this means self-employment taxes (SECA), which can take a hefty chunk out of your earnings.

And let’s not forget, if you work in a foreign country, you may also be required to pay into their social security system. That’s where reciprocity agreements come in—but again, they’re not universal and often have strict conditions.

💡 Still unsure where you stand? Get clarity now: Start Diagnostic NOW

The IRS hasn’t been sitting idle either. With the rise of remote work, they’ve ramped up enforcement against offshore tax evasion. Programs like FATCA (Foreign Account Tax Compliance Act) require financial institutions to report accounts held by US citizens abroad. If you’re hiding assets, the IRS will find them.

Expatriate tax exclusions exist, but they come with strings attached. You must meet strict requirements, including physical presence and income thresholds. Even then, you might still owe taxes on certain types of income. This is not the wild west—it’s a carefully policed territory.

---

Self-employment taxes are the silent drain on your earnings. Whether you file as an LLC, sole proprietor, or something else, you’re on the hook for quarterly payments. Failing to do so can lead to penalties, interest, and even legal action.

Deducting expenses is part of the game, but it requires discipline. From laptops to Wi-Fi bills, you need to track every business expense. Otherwise, you’re leaving money on the table—or worse, overpaying.

Tax evasion is a criminal offense, but tax optimization is a legitimate strategy. The line between the two is razor-thin. What looks like a clever loophole to you could be seen as fraud to the authorities. Proceed with caution.

🔑 Don’t risk it all blindly—know where you stand: Start Diagnostic NOW

Health insurance is another area where digital nomads stumble. Many rely on domestic health plans, but those may not cover you overseas. Others try to use HSAs (Health Savings Accounts) as a tax-advantaged way to fund coverage. Either way, you need to understand the implications.

Passive income—rental income, dividends, interest—is often overlooked. If you own property in a foreign country or earn investment income while traveling, you must declare it. Ignoring these sources can trigger audits and costly corrections.

---

Estate planning is rarely discussed in the context of digital nomadism, but it’s essential. If you die without a will, your assets could be distributed according to the laws of the last country you lived in. That’s not ideal. Setting up trusts or other structures ensures your wishes are honored.

Tax professionals are worth their weight in gold. They help you navigate the maze of international tax law, identify deductions, and avoid common pitfalls. Don’t try to handle it alone unless you enjoy surprises.

Software solutions are emerging to simplify the process. Platforms tailored for remote workers automate tax filing, track expenses, and ensure compliance across multiple jurisdictions. These tools are becoming indispensable for serious digital nomads.

🧩 Need a roadmap before diving in? Discover your path today: Start Diagnostic NOW

Offshore bank accounts may seem like a way to protect your privacy, but they come with risks. Secret accounts can attract attention from regulators. The cost of secrecy is high, and it often outweighs the benefits.

If you’re audited, it’s not a matter of “if,” but “when.” Red flags include inconsistent income reporting, unexplained cash flows, and frequent changes in residency. Being prepared is the only defense.

The future of taxation for digital nomads is uncertain but inevitable. As remote work becomes the norm, governments are pushing for global standards. Tech-driven systems are making it easier to track and collect taxes, regardless of where you live.

---

Staying compliant doesn’t have to feel like climbing Everest. With the right tools and strategies, you can manage your taxes effectively without losing your mind. Start by building a system that works for your lifestyle and income sources.

You’re not just chasing sunsets and surfboards anymore. You’re navigating a complex web of tax laws, treaties, and obligations. The question isn’t whether you should pay taxes—it’s how to do it smartly.

✨ Don’t wait for problems to arise—act now: Start Diagnostic NOW

So, are digital nomads paying taxes? Absolutely. The challenge is doing so correctly. With the right knowledge and tools, you can keep more of what you earn while staying on the right side of the law.

The road ahead is paved with opportunity, but it’s also lined with traps. Don’t let taxes derail your journey. Take control today and make informed decisions tomorrow.

🧭 Ready to unlock your true earning potential? Begin your free diagnosis: Start Diagnostic NOW