It's been an exciting week of growth and progress across the ecosystem. Kaspa core developer Ori Newman launched a new community Q&A platform, and Michael Sutton shared fresh insights on fast proof-of-work. Kaspa now has nodes on nearly every continent, and the Kaspa Education Series held another event in Nigeria. KasUnder appeared on the XXIM podcast to discuss their Bubble Maps and support for native KAS transactions. On the broader crypto front, the U.S. Treasury and IRS excluded digital assets from the CAMT tax, the Senate Finance Committee held a hearing on crypto taxation, Kazakhstan launched its first crypto fund, and a crypto ETN was approved for trading on the London Stock Exchange.

Michael Sutton Shares Another Must-Read Post 

Michael Sutton shared a post entitled "The Case for Uniqueness of Fast PoW", explaining how that finality has two moving parts: fast inclusion ("how quickly a transaction gets into a block") and fast confirmations ("how quickly that transaction becomes irreversible"). He highlighted why fast PoW uniquely achieves both without compromising decentralization:

"Fast PoW uniquely enables fast finality without forcing a compromise on decentralization."

Unlike some proof-of-stake systems, where rapid confirmations can pressure decentralization, PoW decouples speed from security. Each block provides statistical proof of work across the full network, giving consistent confidence regardless of miner distribution.

Moreover, decentralization inherently harms proof-of-stake systems and therefore necessitates the development of a workaround scheme, such as rotating validator committees chosen at random (e.g., Ethereum), or a centralized approach, as seen in Solana. With Ethereum, committees are selected first and then vote on block confirmations. This select-first-work-later design exposes itself to BFT adaptive attacks. 

An adaptive attack is a threat in which an adversary selectively chooses network nodes to corrupt, based on information gathered during a protocol's operation. This contrasts with a static attack, where the attacker must choose all corrupted nodes. An adaptive attack can be significantly more damaging, as the attacker can target leader nodes or other high-value targets in real-time. 

Michael Sutton continues to share insights about Kaspa in a clear, concise, and easy-to-learn way, making complex concepts accessible to everyone in the community. We agree with @NakaSompo, who responded with "A masterclass in a single tweet. Only the likes @michaelsuttonil are capable of pulling this off."

Yonatan on Current L2 Designs in the Kaspa Ecosystem 

In a recent X discussion, community member Uncle Stayfun asked Kaspa founder Yonatan Sompolinsky (@hashdag) for clarity on the future of Kaspa L2s. Specifically, when they'll become permissionless, whether node software will be open-source from the outset, and how Kaspa can maintain its trust-minimized foundation.

Responding to the thread, Yonatan clarified that Layer-2 networks are inherently misaligned with Kaspa's Layer-1 principles, writing:

"By design, an L2 is misaligned with L1 Kaspa, even if it's open source and decentralized — it is still a competing decentralized parasitic network, subverting social consensus and Kas network effect. In some sense, being closed source and centralized is less of a facade."

And later comments, 

"With vProgs, you'd benefit very little from deploying your vprog/dapp on an L2 (=a meta-vprog / meta-state that aims to absorb as many Dapps as possible). Rather, a simpler path for you as a builder would be to deploy directly on the enshrined layer with no intermediaries." 

Ori Launched Kaspa Q&A Website

Kaspa core developer Ori Newman has introduced a new Kaspa Q&A platform, modeled after StackOverflow, to help the community easily find and share technical knowledge. The platform aims to make learning about Kaspa more open and community-driven, rather than relying solely on core developers for answers.

The site allows users to ask questions, share answers, and build a searchable repository of Kaspa-related insights. Ori emphasized that this initiative aims to “grow our shared knowledge base” and empower more community members to help others understand and explain Kaspa.

To read more about Ori, please read our article, “An Interview with Kaspa Core: Ori Newman.”

KasUnder on the XXIM Podcast

In the latest XXIM episode, host Ankit sat down with Alex from KasUnder, the team behind Kaspa's version of Bubble Maps. The XXIM Podcast is supported by KaspaCom, Igra Labs, and Kaspa Finance. Originally built for KRC20 tokens, KasUnder now visualizes native KAS transactions directly on Layer 1, offering interactive bubble maps that reveal wallet relationships and fund flows across the network.

To make this possible, the team rebuilt Kaspa's entire transaction graph from the genesis block, processing more than 600 million UTXOs from a roughly 600GB archival node database. With help from the community and a switch to parallel computing (via Apache Spark cluster), what once took months now computes in hours.

The result is a tool that clearly shows how exchanges like MEXC, Bybit, and Gate.io dominate network activity, while helping users visualize wallet clusters, transaction paths, and UTXO compounding behavior.

As Alex explained, KasUnder not only promotes transparency but also educates users on how Kaspa's UTXO model works—from wallet and address creation to privacy management.

With native KAS now integrated, KasUnder provides the community with a powerful new way to visualize wallet activity and fund flows, thereby deepening transparency across the Kaspa network. KasUnder is evolving into a powerful analytics tool for Kaspa, combining transparency with education. By reconstructing the full transaction history of Kaspa from its genesis, the community can better understand wallet activity, exchange dominance, and the unique challenges of the UTXO model.

Kaspa Education Series Continued 

The Kaspa Nigeria community continues its educational initiative, bringing blockchain awareness and Kaspa's high-performance BlockDAG network to students and entrepreneurs. The latest stop was at the University of Abuja on Friday, October 4th, in the Faculty of Agriculture Theatre.

Sponsored by Kaspa KEF, with partners KaspaCom, KastleWallet, and Kurncy Solutions, the program showcased real-world use cases and opportunities within the Kaspa ecosystem. Attendees joined in person and via the Kaspa streaming platform, Vivoor (@VivoorKAS), to learn, network, and explore how Kaspa is shaping the future of decentralized finance.

As participant @RichieYb4 shared after the event:

"What a day! Fully equipped with knowledge on the blockchain and crypto world. Thanks to Kaspa and Blockchain UniAbuja."

Follow @Kaspa_Naija to stay up-to-date with the latest updates, discover upcoming events, and explore how Kaspa is inspiring the next generation of innovators across Nigeria and beyond.

US Crypto Tax Guidance Updates

On September 30, 2025, the U.S. Treasury and IRS issued new interim guidance clarifying that unrealized gains from corporate cryptocurrency holdings will not trigger the Corporate Alternative Minimum Tax (CAMT), providing relief for large firms as Congress continues to evaluate digital asset taxation. CAMT, enacted in 2022, imposes a 15% minimum tax on corporations earning over $1 billion annually, calculated from financial statement income rather than taxable income.

Previously, accounting standards required companies to "mark-to-market" their crypto portfolios—recognizing gains and losses on paper even without a sale. While unrealized gains on stocks have always been exempt from CAMT, digital assets had not been explicitly addressed, creating regulatory uncertainty for companies holding cryptocurrencies. The official document states: 

"Prior to the publication of any final regulations relating to the CAMT, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to partially withdraw the CAMT Proposed Regulations (as defined in section 2.03 of this notice) and to issue revised proposed regulations (forthcoming proposed regulations)."

This guidance eases CAMT requirements for companies, putting digital assets on a more equal footing with equities and bonds and helping firms avoid "phantom" tax bills on paper gains. This clarification encourages broader adoption of cryptocurrencies as treasury assets, as firms can now hold Bitcoin and other digital assets without the risk of unexpected corporate tax liabilities.

U.S. Senate Finance Committee, “Examine the Taxation of Digital Assets” Hearing

On October 1, 2025,  the U.S. Senate Finance Committee convened a full committee hearing, “Examining the Taxation of Digital Assets,” at the Dirksen Senate Office Building. The hearing was streamed live via finance.senate.gov .

With growing attention on crypto regulation over the past year, the meeting signals long-term interest from U.S. lawmakers in integrating digital assets into the existing financial system. While there was no immediate market reaction, the hearing could support investor confidence. 

Statements were delivered by Senate Finance Committee Chairman Mike Crapo (R-ID) and member Ron Wyden (D-OR), alongside four expert witnesses:

Jason Somensatto, Director of Policy at Coin Center: “The promise of cryptocurrency networks lies in their ability to empower individuals and enable open innovation. But for that promise to be realized in the United States, we must ensure that the tax code does not place unnecessary or unfair burdens on cryptocurrency users and allows for practical and achievable compliance. By enacting targeted, reasonable reforms, Congress can ensure that users are taxed fairly, innovators are not discouraged, and participation in crypto networks remains accessible to ordinary Americans.” 

Andrea S. Kramer, founding member of ASKramer Law, LLC: “There will always be new asset classes introduced for trading in our financial markets. We are fortunate to have such a comprehensive tax Code in effect. It is flexible enough to have been called upon to tax new asset classes over the years and digital assets are no exception. We should keep the system we know works with Congressional modifications on an “as needed” basis.”

Annette Nellen, Chair of Digital Assets Tax Task Force, at the American Institute of CPAs: “legislation that addresses the application of existing tax principles to digital assets would give industry and taxpayers the necessary tools to operate effectively in the digital assets market.”

Lawrence Zlatkin, Vice President of Tax at Coinbase Global: “Rather than trying to fit this new technology into a 20th-century box, we should design rules that allow it to strengthen our 21st-century tax system…. Crypto now represents a $4 trillion global economy. Other jurisdictions are moving quickly to provide clarity and attract capital. The United States cannot afford to lag behind. If we get this right, we can preserve our position as the world’s financial leader, attract long-term investment, and ensure that tax policy both protects the base and enables innovation. If we get it wrong, capital, jobs, and tax revenue will migrate abroad.

The full testimonies and statements can be read at https://www.finance.senate.gov/hearings/examining-the-taxation-of-digital-assets .

First Crypto Fund Launched in Kazakhstan

Kazakhstan has unveiled the Alem Crypto Fund, the region's first state-backed digital asset investment vehicle. The fund is overseen by the Ministry of Artificial Intelligence and Digital Development, managed by Qazaqstan Venture Group within the Astana International Financial Centre (AIFC), and supported by Binance Kazakhstan.

It aims to make long-term investments in digital assets, build strategic reserves, and potentially serve as a vehicle for state-level savings and investment. The fund's first investment was in BNB, the native token of the BNB Chain. We look forward to having more cryptocurrency funds in this region, with the hope of one day including Kaspa. 

"The creation of the Alem Crypto Fund is a step toward advancing digital finance in Kazakhstan. Our goal is to make it a reliable instrument for major investors and a key foundation for digital state reserves," noted Zhaslan Madiyev, Deputy Prime Minister, Minister of Artificial Intelligence and Digital Development of the Republic of Kazakhstan.

Crypto ETNs to Soon Trade on the LSA

In March 2024, the UK's Financial Conduct Authority (FCA) lifted its ban on crypto exchange-traded notes (ETNs) on the London Stock Exchange, though access was limited to institutional investors. In August 2025, the FCA announced plans to extend this access to retail investors as well.

However, as of October 3, 2025, retail investors are still unable to purchase crypto ETNs, with the delay now expected to last at least another week. Speaking on the change, Alex Watkins, Exchange-Traded Product Business Development Lead at the LSE, said that allowing retail participation would "provide retail investors with further options to diversify their portfolios."

When asked about the delay, the FCA explained:

"We had to wait until the segment opened on the LSE before we could start reviewing prospectuses. … That happened on September 23, and we started accepting prospectuses for review two days later."

Despite the holdup, this move marks meaningful progress, and retail investors gaining access to crypto ETNs on the London Stock Exchange is a significant step forward. We look forward to the day when there is a Kaspa ETN. 

Scape’s Latest Videos

One of our favorite Kaspians, @ScapeSquad, recently shared a video walking through the Kaspa Power Law. He presented charts and explanations, showing that Kaspa is currently sitting at the very bottom of the power law band and that a bottom may be forming. While we typically avoid making price predictions, we find it interesting to highlight educational videos about the power law.

Scape also posted a video revealing that the person behind the Dohmer account was previously responsible for the KasBot scam, with the accounts linked on CoinEx. He pointed out several red flags, including pre-minted tokens and a potentially malicious command line that could have contained malware. Although the individual has since abandoned KasBot and now runs the Dohmer account, Scape cautioned that anonymous developers pose a serious risk to users and projects alike.

Kaspa Silver Video - Kaspa Fixes This

This weekend, Kaspa Silver released a new video titled “Kaspa Fixes This,” addressing recent events in Vietnam and highlighting how Kaspa offers real solutions. According to the video, the State Bank of Vietnam (SBV) reportedly deleted 86 million bank accounts since September 2025. Accounts were removed if they were frozen or lacked biometric authentication.

Similar trends are emerging elsewhere, with the UK having recently enacted the Online Safety Act, which introduces mandatory digital age checks that many believe compromise privacy and personal sovereignty. The UK is also preparing to roll out a mandatory Digital ID system for employment, while Australia is enacting its own Digital ID framework said to enhance privacy and security.

Kaspa offers an alternative by enabling individuals to be their own bank, securely holding their private keys without surrendering personal data. The Kaspa ecosystem also includes Kasia Messenger for encrypted communication, as well as K, a decentralized social media platform built on Kaspa, that promotes privacy, freedom, and censorship resistance.

Kaspa Silver vs. LTC Believer 

This week, Kaspa Silver sat down with Raphael Yeager, a self-proclaimed Litecoin believer, to discuss Kaspa. Raphael joked that the Kaspa Silver channel was a “fork of Bitcoin University,” since that channel had inspired its creation. Kaspa Silver explained that Bitcoin University was highly informative, and at the time, no one was creating educational content about Kaspa, which motivated him to start his own channel.

Kaspa Silver discussed several key topics, including Bitcoin’s security budget, Yonatan Sompolinsky’s involvement with the GHOST protocol, Marathon Digital’s decision to begin mining Kaspa, ongoing work toward smart contracts, and the upcoming vProgs.

Kaspa Silver explained that Yonatan’s extensive research background shows a long-term commitment to blockchain innovation, contrasting it with Charlie Lee, who created Litecoin and later sold all his coins. He added that Marathon’s decision to mine Kaspa lends credibility to the project, especially since BlackRock is a major shareholder in Marathon (MARA), making them indirectly invested in Kaspa.

Kaspa Silver argued that adding layers to money makes it resemble the fiat systems that cryptocurrency was meant to replace. He noted that while Bitcoin has largely secured its role as a store of value, the broader “money race” continues. As inflation, censorship, and financial restrictions drive people to seek alternatives to traditional banking, projects like Kaspa are gaining attention for their focus on speed, scalability, and decentralization.

Raphael also praised Kaspa’s branding and said this was one of the most constructive conversations he has had on his stream. To wrap things up, Kaspa Silver asked if he could send Raphael some Kaspa. He joked, “This is why we have an altseason, to send each other money!” Kaspa Silver then sent him 84 KAS, referencing Litecoin’s 84 million max supply. The transaction was confirmed almost instantly, in true Kaspa fashion.