HomeNewsWhat Happened in the Altcoin Sector Last Week: Key Changes and Major...

What Happened in the Altcoin Sector Last Week: Key Changes and Major Updates

- Advertisement -

A new report from Wu Blockchain highlights one of the busiest weeks in crypto governance and infrastructure in months, with leading protocols announcing sweeping tokenomics changes, cross-chain systems, governance restructurings, and new on-chain execution marketplaces. From Uniswap’s proposed fee-burning overhaul to Magic Eden’s buyback launch and Aave’s vote on collateral risk, the industry is clearly preparing for its next evolutionary phase.

Uniswap Proposes Fee Mechanism and UNI Burning in Major Governance Restructure

Uniswap Labs and the Uniswap Foundation jointly submitted a governance proposal that could redefine Uniswap’s token economy.
The plan introduces:

  • A protocol fee switch
  • A UNI burning mechanism tied to protocol usage
  • A reduction in UNI’s total supply
  • A new Uniswap Growth Budget to support development

Most importantly, the Uniswap Foundation will fold into Uniswap Labs, completing its existing grant obligations before winding down. Roughly $100 million remains in its grant budget, which will be distributed before shutdown.

Aster Delays Token Unlock Schedule to 2026-2035

Derivatives exchange Aster confirmed significant changes to its tokenomics.
Multiple token unlocks originally set for 2025 have been:

  • Canceled, and
  • Pushed to summer 2026, with some delayed to 2035

The team said ecosystem-based unlocks were paused because demand for token utility is currently insufficient, and releasing the supply now would not benefit the project.

Babylon Cuts Inflation and Launches BTC Co-Staking Mechanism

Babylon completed a major mainnet upgrade introducing two major changes:

  • Annual BABY inflation reduced from 8% to 5.5%, cutting issuance by ~250 million tokens
  • Launch of a BABY + BTC joint staking mechanism, offering higher rewards to dual stakers

The protocol also introduced a BTC staking extension, allowing users to prolong lockups without losing rewards. Babylon said these changes reinforce the long-term sustainability of the Trustless Bitcoin Vault ecosystem.

Lido DAO Proposes Automatic LDO Buyback With wstETH Liquidity Deployment

The Lido community proposed a new auto-repurchase system for LDO.
Key elements include:

  • An automatic LDO buyback mechanism
  • Deployment of LDO/wstETH liquidity using Uniswap-v2-style LP positions
  • LP ownership managed by the Aragon Agent
  • Target: Increase LDO utility and reduce circulating supply

If approved, implementation is expected in Q1 2026.

Lido DAO

Magic Eden Launches Cross-Chain Buybacks for ME Tokens and NFTs

Magic Eden unveiled a new cross-chain repurchase system, effective immediately.

It allocates 30% of secondary-market revenue toward repurchases:

  • 15% for on-chain ME token buybacks and burns
  • 15% to buy NFTs across multiple chains for its Permanent Collection

Buybacks trigger automatically, and batch purchases will execute once thresholds are met. The mechanism will expand to additional chains in the coming weeks.

Pump.fun Introduces “Mayhem Mode,” Enabling AI Agents to Trade New Tokens

Pump.fun launched an experimental mode called Mayhem, allowing AI agents to trade newly launched tokens autonomously.

Key details:

  • AI agents will participate in early trading to boost volume
  • Unlike before, they will not create tokens
  • Pump.fun has not revealed which agents are active, encouraging discovery through documentation

The update represents a significant step forward for both AI-driven trading and memecoin mechanics.

Jito Labs Deploys Block Assembly Marketplace (BAM) to Improve Solana Execution

Solana MEV provider Jito Labs announced the launch of its Block Assembly Marketplace (BAM), a system designed to improve fairness, transparency, and execution reliability on Solana.

Highlights include:

  • A plug-in system implementing Application-Controlled Execution (ACE)
  • Solutions for Solana’s current execution fragmentation caused by seven schedulers
  • Use of Trusted Execution Environments (TEE) to ensure secure, verifiable transactions
  • Future plans: open-sourcing code, decentralizing operators, FPGA acceleration, and collaborative block building

The system aims to avoid incentive pitfalls seen with Ethereum’s PBS while strengthening Solana’s long-term performance.

Aave Community Votes to Remove High-Volatility Token Collateral

After the October 11 market crash exposed major oracle discrepancies, the Aave community is preparing to delist several volatile tokens as collateral.

Affected tokens include: CRV, UNI, ZK, BAL, LDO, 1INCH, METIS, CAKE

Reasons:

  • Oracle prices deviated 15%–50% during the crash
  • Several-minute price delays created bad-debt risk
  • Low collateral yields made risk-return ratios unacceptable

The proposal seeks to reduce collateral factors to zero and gradually phase out lending/borrowing for these assets.

EigenCloud and LayerZero Launch EigenZero Cross-Chain Verification Network

EigenCloud and LayerZero jointly announced EigenZero, a Decentralized Verification Network (DVN) designed to secure cross-chain messaging.

Key features:

  • Backed by $5M worth of staked ZRO
  • Uses a slashable optimistic model
  • Messages are valid by default but subject to an 11-day challenge period
  • Incorrect or malicious validations result in stake-slashing penalties

The model aims to provide strong economic security for next-generation cross-chain applications.

Aerodrome Unveils New Trading Hub and Unified AERO Token

Dromos Labs introduced Aero, a new trading hub set to unify:

  • Aerodrome (Base chain)
  • Velodrome (Optimism)

Expansion is planned for Ethereum mainnet and Circle’s Arc chain.
In Q2 2026, a new unified AERO token will replace both existing tokens, with distribution as follows:

  • 94.5% to AERO holders
  • 5.5% to VELO holders

No new tokens will be minted.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Collin Brown
Collin Brown
Collin Brown is the managing partner of ETHNews. He is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Collin endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Marcel's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Collin's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Collin continues to be a driving force in the cryptocurrency community.
RELATED ARTICLES

LATEST ARTICLES