🚨Dero's official binaries have been updated to release 14.2 to remove randomness reuse from all wallets.

Since the fix was allowed to be pushed in the official binaries, this strongly indicates that Dero's bulletproofs are now deemed by Captain to be battle tested & safe. This is my interpretation, Captain himself has never directly commented on randomness reuse.

Dero's rocket bulletproofs are not documented in literature & were introduced for the first time on Dero in 2022. They are created for homomorphic encryption, account model and smart contracts making them the most advanced BPs in crypto today. HE & account model are key features that eliminate single use outputs. This means Dero is immune to all UTXO & key image heuristics that compromised XMR & all UTXO privacy chains.

With this update Dero is not just the only non chainanalyzable privacy chain out there, but also officially battle tested and audited by the entire world that by using randomness reuse could independently verify its transactions.

🚨With Orchard ZEC replaces nullifiers & outputs w/ "actions".

Number of actions = total # of inputs + # outputs.

My concern is that statistically the total number of parts in a transaction is sufficient to apply UTXO heuristics to tell if money exchanged hands or not. Bc many-to-many, many-to one & one-to-many are consolidation or spam transactions, which means money doesn't exchange hands. So:

>5 actions → money stayed in place
3-5 actions → money exchanged hands

Despite this, ZEC still deserves credit for mitigating the UTXO heuristic. Monero OTOH is completely unaware of such heuristic (even FCMP does nothing to mitigate UTXO).

ZEC's other big weakness is the transport layer, since actions must be posted together, by monitoring the network we can group actions belonging to the same transaction.

Either way, this Qubic maxi captures the gist of it by asking Cfb a simple question: why not speak the same way about XMR, when we have proof that Chainalysis sells XMR tracing services to the IRS?

Dero is resistant to selfish mining thanks to Σ-mining. Dero's Σ-mining splits the block reward into 10 smaller parts: 9 miniblock & 1 integrator block.

Miniblocks are easier to mine, but the integrator block is required to form the block after which rewards are distributed among all those that contributed to mine that block. A miner's total reward is based on the amount of his miniblock(s) that were included in the final block.

In traditional POW coins like Monero and Bitcoin, a selfish miner (SM) that controls more than 33% of the total hashrate can claim a higher than 33% share of rewards by not releasing the blocks as he finds them but by building a private chain instead.

Dero's miniblocks make this strategy statistically unviable. A SM would lose all rewards by attempting to selfish mine.

From Cfb's recent tweet it's becoming obvious that he is part of team XMR, and the 51% attack narrative was likely psy-op to create a precedent to push Monero into POS.

Derolytics has published an article claiming Dero has an inflation bug that was exploited to mint 2M coins in October 2022. His claims however rest on a malformed deroproof.

Anyone who has ever used Dero knows that a valid Deroproof can only be generated by the true sender of the transaction. So how does Derolytics even have the deroproof for a transaction that he (admittedly) did not conduct himself?

After verifying the Deroproof in the Dero explorer (just like Derolytics suggests you to do, but hopes you don't), the explorer gave the following output: 135 bytes of extraneous data starting at index 9. Wut? Oh well, his proof isn’t really deroproof, but a malformed proof.

Being malformed, this 'proof' exposes his true intentions: this report is just an attempt to mislead people into believing Dero had an inflation bug exploit.

Those who have kept an eye on Derolytics know that this is not the first time Derolytics has played with malformed proofs to push a narrative. Back in May 2025, he claimed he helped Captain with the Atlantis-Stargate swap. Only to admit shortly after that the proof was faked.

So the bottom line is: no evidence of an inflation bug has been presented. What has been shown is that malformed proofs can be weaponized to create FUD.

The most corrupt actor in the privacy space today, who has been caught lying in a bug disclosure (the scientific equivalent of lying under oath), seems to have been activated by his masters in Project POSnero.

Like I explained in my post on August 12th, as more people are exposed to undeniable evidence that Monero is traceable/unfixable/obsolete, manipulating Monero’s market cap becomes exponentially more expensive. Without privacy, Monero has no utility, and with no utility miners just mine and dump.

So to keep the wheels of their honeypot scheme turning, they must centralize emissions ASAP and for this they need a POS XMR.

Now Monero’s transition into POS can be done in 2 ways:

1. A hard transition (like that of Eth) where POW is deactivated overnight.
2. A soft transition, where first an intermediary POS layer is introduced on top of the existing POW layer. And then at a later date the pow layer is removed completely.

The masters of Monero, those who sell Monero tracing services to the IRS and brainwash gullible newbies into believing that Monero is private, have aptly opted for the second, a soft transition.

To initiate it they have activated their little Pinocchio who has put forward a proposal to add a validator layer on top of POW “to mitigate selfish mining”.

Now monero miners must be (rightly so) wondering: ok then, what’s the point of POW if a bunch of Palantir controlled validators decide which blocks are final?

What they miss is that nobody cares about censoring Monero, because they already trace it. This validator layer is part of their POS transition strategy. It’s a temporary middle step to avoid having miners go squealing in the middle of a bull market that they have finally connected all the dots and Monero is a honeypot.

If you wanted proof that Chainalysis/Palantir pull the strings of Pinocchio, then this is it.

PS: Our lying psychopath is also often seen interacting with Derolytics, the guy who faked a deroproof and manipulated his explorer to make it look like there was an inflation bug exploit on Dero.

Birds of a feather flock together. 🐦

Why are so many people so confused by Derolytics? Let’s start with facts.

One, Derolytics is hiding all incoming transactions for dero1qy4rr9y88yukn6249e4kg9mv3za0emlwq8px4kr92eapuqxhwuvnqqqa33r9m (the purported address of the inflation bug) which has also spent at least 1.6M coins.

Two, 1.6M coins could only come from Captain’s wallets (Stargate pre-mine). If he hid incoming transaction for the FUD address, he must have also hidden some outgoing transactions from the Captain wallets.

Three, this leads us to the following conclusion: the inflation bug is fake, but at the same time Captain still controls closer to ~1M coins, not 3M.

Derolytics’ original lie (Captain controls 3M coins), which at first sight seemed like bullish propaganda, was in fact a setup meant to gain trust before dropping the real FUD payload. Now it's clear that the Derolytics explorer was created with the intention to fake an inflation bug. First by creating a suspicious address by hiding incoming transactions (we’ve identified an entity that spent 1.67M coins and we’ve no idea where these coins come from), and then by creating a malformed proof to make it look like it exploited an inflation bug.

Now however I think we’re at the bottom of this long DERO FUD tunnel.

To summarize: there is no inflation bug, but also Captain probably holds ~1M coins in his wallets, not 3M (which is also what we always thought before Derolytics appeared).

Think about how much effort Derolytics has put into his FUD strategy. This long term stunt was carefully planned from day 1. For this reason I believe this guy is a DERO maximalist/whale that is buying what people that fall for his FUD sell.

Or at least, he was hoping to.

🚨A MESSAGE TO FOUNDERS 🚨

In my many years of crypto I’ve crossed paths with many of you, founders. Some of you are decent human beings, hard working, above average smart, or very smart. But even the best of you have all built half baked ideas, with fundamental flaws, that happen to be in production just so someone can do a Ponzi.

Imagine building a blockchain without privacy after 2020. YOU did it and you let VC money get to your head and convince you that it’s good enough.

Imagine conflating a compiler attack with a reentrancy attack. Some of you unfortunately do. Like Cheng, who still doesn't understand the real vulnerability in the Vyper hack was that the reentrancy lock was removed at the compiler level, so it was a compiler attack (not reentrancy). No reason to be embarrassed though, because there are those like Chepurnoy and Taaki who don’t even know what compiler risk is. Not to mention the totally illiterate ones from Kaspa, who think full nodes are optional.

All of you, by the way, have no clue how Monero works and how it’s traced, you don’t know how single use outputs are exploited to deterministically trace transactions.

Then there are some ridiculously behind the curve specimens. For example, Forge from Pirate Chain didn’t know ARRR was a UTXO blockchain or that ARRR inputs and outputs can be easily connected because they must be broadcast together and through traffic analysis you can see which nullifiers (inputs) and new outputs a user broadcasts. The last thing I heard was that he started studying Dandelion to fix this. Dandelion, btw, is honeypot tech that makes p2p protocol privacy worse.

Wanna hear a crazy one? Amir Taaki built a “privacy” chain in 2025 that uses the UTXO accounting model, because he (like you all) still doesn’t know that UTXO chains are inherently traceable. Single use outputs are traceable. (If you have to produce new outputs every time you update your chain you're living in 2012. The right tech for that today is homomorphic encryption.)

So let’s face it, you’re all idiots with a lot to learn. You’re the proverbial jeet devs. A jeet dev does whatever you tell him to do as long as you pay him. You have no clue about Not Trusting Trust, and that makes you jeets (Yes sir, sure sir, done sir.) I'm no coder but even I know that not trusting trust is what differentiates a great coder that builds things humanity needs from the rest.

If you trust trust, no matter how good your code, you will always be the guy who can drive but doesn’t know where to go.

My message to you: Study Captain’s work. Go back to being students, go back to learning. Maybe do another final pump with your stupid surveillance projects then shut them down for good and go build something real on Dero. Or even better, shut them down right after reading this.

You’re welcome.

We’re inside a city where ‘people’ act like NPCs. We see scenes like:

- Someone falls from a 10 floor building in the middle of a sidewalk, and everyone keeps walking around the splash just like nothing happened.
- Someone gets stabbed sitting in the bus with headphones on, passengers just stare at the traffic outside like nothing is happening
- Police is chasing and beating a little kid for running around waving a forbidden flag, NPCs look at the scene smiling and after a while keep walking.

Everyone in this simulation uses Monero for 'privacy'. When you say Monero a few NPCs smile at you, raise their fist and shout:

- Monero is freedom bro!
- Monero for life
- The best privacy coin, look at my Monero tattoo

Now there is me, walking with my lil bro, explaining none of what we see here is real. The people are not real, the police is not real, nothing is real.

If you do nothing and just observe then you find out that even if a train hits you, you won’t die, because the train is not real. When you “die” the simulation will just restart with another scene. Everything in the simulation is only meant to program/train you to act like the NPCs in the simulation.

The masters of the simulation can't see what happens inside Dero, so they can’t keep programming us there. And that's why the NPCs in the simulation hate Dero.

So, to entertain my lil bro, I tell him to shout “Dero” in front of the NPCs. He does it, and all of a sudden NPCs start shouting angry stuff at us:

- “criminals”
- “inflation bug”
- “dev Russian scammer”
- “deanonymized”
- "use Monero!!"
- "Derolytics proofed it!"

My lil bro gets scared so I've to remind him they’re not real, they’re NPCs. I explain how, for example, Monero is a coin the masters of the simulation can trace, so NPCs love it. Same with Bitcoin. But with Dero they are programmed to react like this.

Next I show him how we can just walk through the NPCs because they're empty holograms, and see the scene from the other side of the road.

We then see NPCs that keep shouting with their fists up, the police arrives, puts handcuffs on something invisible. When handcuffs start floating in the air, the NPCs stop shouting and go back to walking like before.

🚨Is there a massive Dero short squeeze bound to happen?

Some very respectable whales who read my channel have rightfully noted, following my posts on Derolytics (1, 2), that his scam seems to have been planned months, if not years, in advance. Which begs the question, those who planned it must have acted on it as well, no?

Put yourself in the shoes of whoever came up with the idea to fake an inflation bug. The plan was probably conceived 1-2 years ago. If you were part of the kabal that knew about Derolytics, you were probably thinking most of these simps holding Dero aren’t technical enough to know when they are trusting an explorer versus when there is an actual bug on the blockchain. So you were probably confident everyone would just panic sell their coins when Derolytics releases his “inflation bug report”.

Game theory dictates that if you were among those in the know ("the geniuses"), you probably sold a high amount of coins confident that you’d be able to buy them back later for cheaper.

Selling all you had would also play nicely in the future inflation bug story. Because when Derolytics publishes his report, we can remind people how 1-2 years ago there was a lot of sell volume and speculate it was the exploiter selling his fake coins.

At the time it was conceived, Derolytics’ plan must have really seemed like genius:

1. We hide some of Captain’s outgoing transactions to get the community to trust us.
2. Then 9 months later, when they have forgotten why they trust us, we tell them we found an account where coins come out of nowhere.
3. Then we start digging our heels into that inflation bug story until everyone falls for the FUD and dumps their coins for $0.3 back to us. (Genius!)

Well, here is the thing. Whether it was Derolytics or someone above Derolytics, it doesn’t matter. What matters is that these actors are very sophisticated. They know well the difference between a traceable coin and an untraceable coin. They also know the difference between a real BP bug and a fake BP bug.

In other words, they won’t let Dero go, they will fight until the last drop of blood for their Dero share. But as it becomes clear that nobody is falling for the inflation bug story (which they are so desperately pushing in every way they can), they will have no choice but to panic buy back all the coins they sold.

Genius, no? It would have been if it wasn't for the fact that the Universe works in mysterious ways. Sometimes things happen that nobody sees coming.

Now our geniuses are about to find out the limits of genius.

As an aspiring cypherpunk activist, and archeologist of the present, I'm really happy I did my part in making sure everyone got to know Kaspa well, for what it is. And in shining a spotlight on Kaspa's founder's views on decentralization and trustlessness.

Just so you know, the Founder made fun of the cypherpunk motto Don't trust, verify even before launching Kaspa. He ridiculed it as "Don't trust, terrify!". So it's no accident that Kaspa lost bit of its transaction data early on.

Of course some people don’t care about full nodes because they trust Yoni, or for they're simply ignoramuses.

But the Kaspa blockchain is cryptographically corrupt nonetheless exactly because you've to trust Yoni and Shai. Or you have to not care. But you will never be able to trustlessly verify/prove that all transactions in Kaspa's history were signed.

Feels good to see Nick Szabo ask that rhetorical question, man. ✌️

What would you say to a new defi primitive that gives you leveraged long convexity exposure for a one time upfront fee, 0 liquidation risk, 0 volatility decay, 0 funding fees.

In other words, only you can close your position, and your profit loss depends exclusively on entry/exit price. The path price took doesn't affect your profit/loss.

What does convexity mean? That position size follows a convex curve, not a straight line like an ordinary leveraged long.

Profit auto-compounds as price moves in your direction.

Because of convexity you also never get liquidated if price moves against you.

And finally, you don’t pay funding fees but only a one time upfront fee (no fee when you close).

Entirely onchain, on ETH.

If you didn’t get a word of what I just explained, best to move on because it means this is too complex for you. But if you got it then I’m sure you understand this is a big deal. SIR is a new defi primitive that doesn’t exist anywhere else.

I'm in, feel free to join the movement!

It's time we separate being pro-crime from having good tech. Most of the time being pro-crime actually means the tech is a honeypot.

Palantir's business model rests on selling services to LE. Chainalysis sells Monero tracing services. Palantir & Chainalysis have the same parent company, CIA's In-Q-Tel. Maybe that's why Monero is "pro-crime".

Speaking of the tech: Monero's privacy rests on 15 decoys, 11 of which can be eliminated just by looking at decoy age. W/ FCMP++ Monero TX IDs stop referring to specific decoys on the input side, but they still give you the number of inputs spent in each TX and the new outputs created w/ that transaction. In other words, you can get the UTXO structure of the transaction as well as the naked outputs created with it.

In a ZEC shielded TX, OTOH, you don't see any inputs/outputs or number of inputs/outputs.

Therefore ZEC does indeed deserve to flip Monero. Because even with FCMP++ Monero will still be trivial to trace and light years behind ZEC.

Why are there so few shielded transactions on Zcash? At its current state Zcash can be attacked via timing analysis & the recency heuristic.

To be clear, this in no way shape or form implies that XMR is better. In XMR I see the output of every single transaction directly in the XMR explorer because each transaction ID in Monero references the specific outputs that it created. Monero is the worst & weakest privacy coin of all, light years behind Zcash.

That said, Zcash uses zk proofs, which means a transaction itself bears no reference to any outputs, or "actions" (as they are called).

However, right now there seem to be really few shielded transactions which make it really easy to link together transactions of spontaneous users.

Eg: if I know a target transaction T took place at a specific time then chances are that the receiver of T was the only shielded receiver around that time. By using the recency heuristic, any de-shielding transaction around the same time can be tied to T.

The honeypot has released another update, Fluorine Fermi (or the anti-CGNAT upgrade).

Seriously dummies? Do you really think a spy node network, operated by Chainalysis & Co (sophisticated players), will use a naked AWS IP address that forms clusters instead of being routed through onion?

If anything amateur nodes are the target of this upgrade, such as those running behind CGNAT. Fluorine Fermi discriminates against such amateur nodes, increasing the likelihood that your transaction is broadcast straight to Chainalysis.

As a reminder, Monero's network is completely compromised, and they keep compromising it.

Dandelion was introduced to make sure your wallet picks industrial nodes (high uptime, low latency) as first hop nodes. In other words, your wallets sends your transaction straight to Chainalysis.

Now with Fluorine they actively filter out more residential full nodes, limiting the odds that your wallet may pick a non Chainalysis node for the first hop.