PoSA and Web3 regulations: Harmony Meetup VI recap

The 6th edition of Harmony Meetup, an annual event bringing together Web3 creators and industry experts from around the world, took place on Dec. 13 at the Intercontinental Ras Al Khaimah in the UAE.

The conference highlighted innovations such as the proof-of-stake and activity (PoSA) consensus mechanism, which was designed to transform decentralized rewards.

The discussions explored emerging trends in digital identity, the evolution of custody infrastructure and the influence of regulatory developments on global markets.

Harmony Meetup ’s significance was further highlighted by key discussions on blockchain’s fundamental pillars, including regulatory leadership, custody infrastructures and collaborative innovation.

PoSA in development

Pavel Aramyan , Web3 program lead at Fastex , opened the conference by announcing that the proof-of-stake and activity (PoSA) consensus mechanism is in its final stages and will go live by the end of the year.

Aramyan described PoSA as a system that directly rewards validators and creators through blockchain incentives, explaining: “The more users spend gas when interacting with your products, the more you’ll be able to earn in terms of blockchain fees.”

He described this philosophy as “unlike any other blockchain,” emphasizing how it creates a continuous “loop” where success drives further innovation: “If you build on the chain and the chain rewards you, you’ll naturally love the rewards and continue building. In turn, you receive even greater rewards from the chain.”

Aramyan argued that this snowball effect would enable the ecosystem to grow continuously, attracting developers, businesses and new participants.

Aramyan described the PoSA as the next step toward scalable and secure blockchain networks. 

Discussing the future of Bahamut, Fastex’s layer-1 EVM-compatible blockchain platform, Aramyan underscored its open and permissionless structure: “Anyone can join as a validator and start creating tokens, marketplaces or NFT collections without requiring approvals.”

Regulation is key to Web3’s future

Following Aramyan’s presentation, the discussion turned to the importance of regulation in driving blockchain adoption. Vakhtang Abrahamyan , the CEO of Fastex, opened the session by underscoring the inevitable rise of Web3 and the role of regulation in building trust within decentralized systems, saying: “The sooner, the better.”

Abrahamyan noted that regulatory oversight enhances consumer confidence, even if it seems at odds with the decentralization narrative. “Trust comes with the assurance that funds are safe,” he explained.

The CEO of Fastex emphasized that the sooner the regulation comes to Web3, the better protection consumers will have.

He observed a shift in perspective as financial institutions and regulators increasingly recognize the importance of secure frameworks:

“It seems that the page is turning, and now we are talking mostly about the type of financial institutions that are being licensed and regulated. Through that, we are providing more comfort to customers so they can trust us — and to financial institutions as well.”

‘When regulation comes, liquidity comes’

Focusing on liquidity, Gerry Afentakis , head of European and MENA sales at Zodia Custody, said that while retail investors with limited funds have primarily driven crypto markets so far, institutional capital remains the missing piece: “What everyone in this market is looking for and eagerly awaiting is the influx of institutional capital,” he said, adding clear regulatory frameworks are critical for this shift.

Afentakis pointed to developments like exchange-traded funds (ETFs) as examples of regulation-driven liquidity: “Regulation is the deconstruction of a bottleneck to liquidity.” Referring to the “Wild West” metaphor often associated with crypto, he concluded: “When regulation comes, liquidity comes, and when liquidity comes, we all win.”

Collaboration drives innovation

The discussion emphasized how collaboration between regulators and industry players fuels blockchain innovation as well. Karl Tlais , founder of iAdvisory, highlighted this synergy as a driver of meaningful digital and data economy use cases: “We are seeing a lot of collaboration to develop use cases that add value to the ecosystem.”

Tlais pointed to the UAE as a prime example, where sandbox environments foster experimentation and cross-industry partnerships. “The appetite for collaboration to develop use cases is the real focus,” he noted.

Karl Tlais emphasized the desire for collaboration to develop use cases that add value to the ecosystem.

He cited recent regional events like the Bitcoin MENA Conference, Abu Dhabi Finance Week and the Harmony VI Meetup as evidence of growing cooperation between regulators and institutional players to build dynamic, innovation-driven ecosystems supporting the transition to a digital-led economy.

Can regulation make grandmas buy Bitcoin?

Bringing a lighthearted yet insightful perspective, Tim Chen , partner at Novo Capital, described regulation as a tool for both trust and distribution. Speaking from a venture capital perspective, he observed that regulatory clarity accelerates adoption by integrating crypto into established financial institutions such as Fidelity and Schwab:

“Before Bitcoin ETFs came out, pitching Bitcoin to your grandma was still very hard. But all of a sudden, because it’s now regulated, it’s wrapped in an ETF wrapper that they understand.”

Chen argued that this “ETF wrapper” effect — backed by trusted institutions like BlackRock — is pivotal for delivering long-term benefits to users and investors.

Scalability requires regulation

Concluding the panel, Igor Arkhypenko , chief technology officer of the Dubai Blockchain Centre, underscored the importance of regulation in achieving blockchain scalability.

To achieve adoption by billions of users, Igor Arkhypenko compared blockchain technology to the automotive sector, highlighting the critical need for regulatory support from the tech community. He explained, “If you are a car inventor but oppose the adoption of traffic laws and regulations, it will just not be a scalable approach to reach billions of adopters.”

He emphasized the importance of collaboration between developers and regulators to facilitate adoption: “We have to be collaborative, support the governments, and find a way to bring these technologies forward and help regulators adopt them.”

Arkhypenko concluded by highlighting the progress in both technological development and regulatory frameworks, describing it as a promising sign for blockchain’s global future.

Arkhypenko proposed fostering collaboration to help regulators embrace Web3 technologies.

Following the speeches, attendees came away with a clear understanding of how innovation, collaboration and regulation converge to accelerate Web3 adoption. From Fastex’s PoSA Merge to broader discussions on regulatory frameworks, attendees gained valuable insights into how trust, scalability and accessibility will shape the global future of blockchain.