Ethereum community discusses foundation’s revised mandate document.

Also: World’s AgentKit, Visa and Coinbase on AI agents, and prediction markets + AI.

(Zhivko Minkov/Unsplash modified by CoinDesk)

What to know:

Welcome to The Protocol, CoinDesk’s weekly summary of the most significant developments in cryptocurrency technology. I’m Margaux Nijkerk, a reporter at CoinDesk.

In this edition:

• The Ethereum Foundation’s new mandate ignites discussion regarding its position and priorities
• Sam Altman’s World collaborates with Coinbase to demonstrate that a real individual is behind each AI transaction
• Visa and Coinbase are prepared for AI agents, albeit with different visions for the internet
• AI agents are subtly transforming prediction market trading

Network News

ETHEREUM COMMUNITY DISCUSSES FOUNDATION’S NEW MANDATE DOCUMENT: The Ethereum Foundation’s newly released mandate — a comprehensive document intended to clarify the organization’s role and principles — has generated a flurry of responses, with advocates lauding it as a long-overdue expression of the blockchain’s philosophy, while detractors argue it strengthens the foundation’s passive approach during a time when Ethereum requires more decisive leadership to address the increasing demands of institutions. The 38-page document presents what the foundation describes as a constitutional framework for its mission, highlighting its position as a neutral steward rather than a centralized entity. The mandate defines the foundation’s responsibility as preserving Ethereum as a decentralized and robust infrastructure while aiding the protocol layer and public goods throughout the ecosystem. This document emerges at a crucial juncture for Ethereum, which has developed into one of the largest crypto ecosystems globally, while the foundation itself has experienced leadership transitions and discussions regarding its level of involvement in development. Reactions on X quickly formed two distinct sides. Critics contended that the mandate was excessively philosophical and did not adequately address Ethereum’s necessity to vie for real-world adoption — especially as institutional interest in blockchain intensifies. Dankrad Feist, a former Ethereum Foundation researcher and significant contributor to Ethereum’s scaling strategy, noted that the document does little to tackle practical business development issues regarding how the ecosystem serves real users. Others warned that the mandate may reinforce a status quo in which the foundation wields considerable soft influence without explicitly defined duties. Proponents within the community welcomed the mandate as a reaffirmation of the network’s foundational tenets. Chris Perkins, president and managing partner at crypto investment firm CoinFund, stated that the document clarifies the foundation’s role as a nonprofit steward of the ecosystem. Infrastructure companies in the Ethereum ecosystem also expressed support for the mandate. Nethermind, a developer of one of blockchain’s core client software implementations, remarked that the document reflects many attributes that institutional buyers typically seek when assessing blockchain infrastructure. — Margaux Nijkerk Read more.

WORLD INTRODUCES AGENTKIT: As AI agents increasingly engage in transactions, shopping, and act independently online — a market projected to reach $3 trillion to $5 trillion by 2030 — a significant consideration arises: how to authenticate that a real person is behind these actions. Sam Altman-backed identity initiative World (previously WorldCoin) claims to have the answer. On Tuesday, the company unveiled AgentKit, a toolkit for developers that enables AI agents to possess cryptographic proof of being supported by a unique human, utilizing its World ID system. The product operates with x402, a protocol created by Coinbase and Cloudflare that facilitates “agentic payments” by integrating stablecoin micropayments into the internet’s communication framework, allowing AI agents and software to transact without human involvement. “Payments are the ‘how’ of agentic commerce, but identity is the ‘who,’” stated Erik Reppel, head of engineering at Coinbase Developer Platform and founder of x402. “This represents a significant advancement towards a web where agents are recognized not merely as automated traffic, but as legitimate economic participants.” This initiative comes as AI agents are swiftly advancing, managing tedious and often challenging tasks, from making reservations to searching e-commerce platforms for optimal deals. — Olivier Acuna Read more.

VISA AND COINBASE ON AI AGENTS: Your AI just completed multiple payments while you read that headline. You authorized none of them. Visa processed none of them. If the crypto sector’s most optimistic advocates are correct, this isn’t a flaw — it’s the future of the internet economy. Coinbase founder Brian Armstrong anticipates that there will soon be more AI agents than humans conducting transactions online. Binance founder Changpeng Zhao went even further, forecasting that agents will execute one million times more payments than humans, all in cryptocurrency. These statements emerged on the same day last week and sparked significant discussion on crypto X. The central argument is structural. AI agents cannot establish bank accounts because banks necessitate identity verification that software cannot fulfill, while a crypto wallet needs only a private key. No KYC, no compliance review, no delays — and that disparity is what Armstrong highlighted. However, the wallet dilemma is just part of the equation. The other aspect involves economics. Agents do not shop like humans do. When an AI agent performs a task — such as conducting research, coordinating a supply chain, or compiling a report — it may call upon dozens of specialized APIs within a single session. Each call may involve tiny fractions of a cent, covering GPU compute time, real-time data feeds, web scraping services, or employing a sub-agent for translation. None of these transactions align with what Visa or Mastercard were designed to process. — Shaurya Malwa Read more.

PREDICTION MARKETS AND AI AGENTS: Prediction markets have long claimed to aggregate insights about future occurrences. Increasingly, these insights are derived not only from humans but also from machines. According to David Minarsch, CEO and co-founder of Valory AG, the team behind the crypto-AI protocol Olas, autonomous AI agents are emerging as effective tools for trading in prediction markets, especially for retail users aiming to compete in a progressively automated landscape. Valory develops products at the intersection of blockchain and multi-agent systems (MAS), with its current focus on Olas, previously known as Autonolas. The protocol is designed as infrastructure for autonomous software agents that can operate services on blockchains, interact with smart contracts, and collaborate while earning crypto rewards. The broader vision is what Minarsch refers to as an “agent economy” — a decentralized ecosystem where autonomous AI agents perform valuable tasks and generate value for their users. One of the most prominent experiments in this vision is Polystrat, an AI agent launched on the prediction-market platform Polymarket in February 2026. The agent trades on behalf of users who self-custody and possess it, executing strategies continuously. “In essence, Polystrat is an autonomous AI agent that operates on Polymarket 24/7 for its human user,” Minarsch stated. The concept is straightforward: while humans rest, work, or lose concentration, the agent continues to trade. — Will Canny Read more.

In Other News

• Mastercard has agreed to acquire BVNK, a stablecoin infrastructure company, for up to $1.8 billion as it seeks to enhance its use of digital assets for international transactions. By incorporating BVNK’s technology, Mastercard aims to link on-chain payments to its global network, facilitating use cases such as cross-border transfers, remittances, and business-to-business payments, as stated by the company. BVNK provides technology that connects traditional fiat systems with blockchain-based transactions, enabling businesses to transfer funds in seconds across over 130 countries. Its infrastructure, utilized by companies including Worldpay, Deel, and Flywire, processes $30 billion annually, according to the U.K.-based company in a blog post. BVNK’s capabilities complement Mastercard’s existing card network, broadening options for transferring funds through both traditional fiat systems and blockchain-based channels, as noted by investment bank William Blair. — Helene Braun Read more.
• Crypto trading firm GSR announced it is acquiring Autonomous and Architech for $57 million, expanding into token advisory and capital markets services. Autonomous will maintain its brand and focus on token launch operations, while Architech will form the foundation of a new unit, GSR Digital Asset Advisory. This group will work in conjunction with GSR’s trading, liquidity, and asset management divisions. Presently, token launches often rely on separate firms for structuring, token economics, and market making, which can create misaligned incentives. The firm indicated that GSR’s model integrates these services into a single platform, encompassing governance design, exchange strategy, and capital planning. Concurrently, numerous token foundations manage substantial treasuries without formal financial tools. GSR is venturing into treasury operations, providing assistance in liquidity planning, risk management, and diversification as projects look to move beyond merely holding their own tokens. — Kristzian Sandor Read more.

Regulatory and Policy

• For the first time, the U.S. Securities and Exchange Commission has attempted to clearly delineate various types of crypto assets and how the regulator will approach them, releasing these new guidelines alongside its counterpart agency responsible for commodities. The SEC’s interpretive guidance, which does not yet carry the authority of a formal new rule, has been anticipated by its leader, Chairman Paul Atkins, who was appointed by President Donald Trump to promote a pro-crypto agenda. This guidance was issued in collaboration with the Commodity Futures Trading Commission, shortly after the two agencies established a formal relationship to regulate crypto and other sectors as close partners. “After more than a decade of uncertainty, this interpretation will offer market participants a clear understanding of how the Commission treats crypto assets under federal securities laws,” Atkins stated in a release. — Jesse Hamilton Read more.
• Phantom, a developer of self-custodial crypto wallets particularly favored in the Solana ecosystem, obtained a no-action letter from the U.S. Commodity Futures Trading Commission (CFTC), permitting it to grant users access to certain regulated derivatives markets without registering as a broker. In a statement, the CFTC’s Market Participants Division indicated it would not recommend enforcement action against Phantom for failing to register as an introducing broker, as long as the firm meets specific conditions. This exemption pertains to Phantom’s software, which acts as a non-custodial interface that connects users directly with CFTC-registered entities, such as futures commission merchants and designated contract markets. Phantom stated in a blog post that the letter allows it to integrate access to regulated derivatives and event contracts directly in its app through registered partners, while ensuring users submit orders directly to exchanges. The company emphasized that it does not hold customer funds or facilitate trades. — Margaux Nijkerk Read more.

Calendar

• Mar. 24-26, 2026: Digital Asset Summit, New York City
• Mar. 30-Apr. 2, 2026: EthCC, Cannes
• Apr. 15-16, 2026: Paris Blockchain Week, Paris
• May 5-7, 2026: Consensus, Miami
• Sept. 29-Oct. 1, 2026: Korea Blockchain Week, Seoul
• Oct. 7-8, 2026: Token2049, Singapore
• Nov. 3-6, 2026: Devcon, Mumbai
• Nov. 15-17, 2026: Solana Breakpoint, London