Jamie Dimon’s Blunt Warning to UK’s New Chancellor: Higher Bank Taxes Risk Driving Capital Away

Jamie Dimon didn’t mince words. In a recent call with UK Chancellor John Healey, the JPMorgan Chase chief executive laid out a clear message. Higher taxes on banks could push jobs and investment elsewhere. The conversation, which took place last week ahead of the government’s October budget, echoes Dimon’s earlier cautions. But this time the stakes feel higher.

Prime Minister Andy Burnham’s administration has signaled openness to fresh levies on the financial sector. Strong bank profits have fueled calls from Labour voices for more revenue. Yet Dimon sees danger in that path. “If you have an uncompetitive tax system, capital leaves your country,” he said, according to the Fortune report on the exchange.

The remark lands with force. UK banks already shoulder a 3% corporation tax surcharge on profits above certain thresholds. Shareholders have shouldered billions in extra costs under the existing regime. Dimon put a number on it during a July podcast appearance. “I mean, it may sound great, ‘tax the banks’, but it’s $5bn that my shareholders paid on that extra tax.”

Short. Direct. And pointed.

That July interview, released on the Master Investor Podcast with Wilfred Frost, set the tone. Dimon warned then that such policies carry “adverse consequences.” He didn’t stop there. “I would be very cautious if I was a government thinking that penalising any company out of the ordinary is a good thing for that country,” he added, as reported by The Guardian.

His comments targeted the new leadership directly. Burnham had only recently taken office. The prospect of tax hikes on lenders quickly drew scrutiny. Dimon tied the issue to JPMorgan’s ambitious plans for Britain. A £3 billion headquarters project in Canary Wharf hangs in the balance. Raise taxes too much, he suggested, and the bank might rethink its commitment.

“I don’t know what I’d do,” Dimon said when asked about the potential impact on that project. The uncertainty carries weight. JPMorgan employs thousands in London. Its presence bolsters the city’s status as a global financial center. Lose momentum there and the ripple effects could spread.

But. The UK government faces real pressures. Public finances remain stretched. Debt levels loom large. Burnham’s team eyes additional revenue sources. Banks, flush with recent earnings, present an obvious target. Political appeal is clear. Economic fallout less so.

Dimon drew on American experience to make his case. Finance jobs in New York have declined, he noted, partly because of that city’s heavy tax burden. The parallel feels deliberate. What happens in one major hub can foreshadow troubles in another. London has competed fiercely with New York for talent and listings. Make the tax climate too hostile and the advantage shifts.

Recent signals from X amplify the tension. Bloomberg’s account captured the latest exchange. “JPMorgan’s Jamie Dimon warned UK Chancellor of the Exchequer John Healey in a call last week against higher taxes on banks as Prime Minister Andy Burnham’s government prepares its budget for October,” the Bloomberg article detailed, citing the Financial Times.

The Financial Times itself broke the news of the Healey call on Sunday. Dimon highlighted how taxes often drive jobs elsewhere. He pointed again to New York’s struggles. The message to Healey was unmistakable. Proceed with caution.

Industry observers see broader implications. Other banks watch closely. A move against one large player could signal wider policy shifts. Capital moves fast when conditions sour. London’s edge, built over decades, isn’t guaranteed forever.

Dimon offered some praise amid the warnings. He commended outgoing Chancellor Rachel Reeves for her efforts. “She did a great job,” he said in earlier remarks covered by Retail Banker International. That goodwill may buy some time. Yet the new team starts fresh. Healey must balance revenue needs with growth priorities.

The October budget will test those choices. Speculation swirls around possible surcharge increases or new levies. Burnham has left the door open. His government inherited an economy still recovering from multiple shocks. Brexit. Pandemic. Inflation. Each left marks.

Banks argue they already contribute plenty. Corporation tax. Levies. Employment taxes. The surcharge adds another layer. Push further and returns diminish. Investment decisions get reassessed. Headquarters. Hiring. Expansion.

Dimon’s track record lends credibility to his views. He has steered JPMorgan through crises. His perspective spans decades. When he speaks on policy, markets listen. Governments sometimes do too.

Still the politics pull the other way. “Tax the banks” resonates with voters facing cost of living strains. Few shed tears for large financial institutions. The challenge lies in separating rhetoric from reality. Taxes that appear painless can carry hidden costs. Slower growth. Fewer jobs. Reduced tax take over time.

Dimon made that connection explicit. Penalize companies beyond normal bounds and the country suffers. Capital doesn’t wait around. It finds friendlier shores. Other European centers. Asian hubs. Even back to the United States.

UK officials counter that the financial sector remains strong. London retains its position. Yet data on employment trends and listings tell a more nuanced story. Some activity has shifted. Paris gained ground after Brexit. New York keeps its pull.

The Canary Wharf project symbolizes bigger bets. Three billion pounds represents serious commitment. Jobs. Infrastructure. Prestige. Canceling or scaling back would send a signal. One that markets would read quickly.

Dimon stopped short of outright threats. He left ambiguity. “I don’t know what I’d do.” That uncertainty itself serves as pressure. Governments hate surprises in budget planning. Banks hate unpredictable tax regimes.

So the dance continues. Healey listens. Burnham decides. Dimon speaks his mind. The outcome will shape London’s financial future for years.

Recent commentary on X reflects the urgency. Users noted how governments often act surprised when capital departs after margin squeezes. One post highlighted Dimon’s podcast line about uncompetitive systems driving money away. The conversation has momentum.

Analysts at The Banker questioned timing. Dimon voiced concerns early in the new government’s tenure. That move carries risks for JPMorgan too. It could prompt officials to explore alternatives or harden positions. “The CEO’s interjection on bank tax so soon under the PM’s tenure creates risks for the US lender,” The Banker wrote in late July.

Yet silence carries risks as well. Policy gets set without input. Bad ideas gain traction. Dimon clearly prefers engagement. Even when the message is uncomfortable.

High government debt and deficits worldwide add another layer. Dimon warned about those pressures separately. They make tax policy choices harder. Every sector faces scrutiny. Banks just happen to be in the spotlight now.

The coming weeks will prove telling. Preparations for the budget intensify. Consultations continue. Dimon’s warnings may temper ambitions. Or they may be dismissed as self-serving. Either way the debate is joined.

London’s status isn’t static. It must be earned. Competitive taxes. Predictable rules. Open markets. These factors matter. Dimon believes they matter a great deal. His latest intervention aims to keep them front of mind.

Whether Healey and Burnham agree remains to be seen. The proof will appear in policy details. Numbers in the budget. Language around fiscal strategy. Markets will parse every line.

For now the warning stands. Tax hikes sound appealing. Consequences follow. Capital flows where it finds welcome. Britain has options. So do the banks.

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AI Benchmarks Hit the Wall: Why Top Models Converge Yet Real-World Gaps Persist

Claude Mythos 5 sits atop the latest rankings. It scores 83.21 on a composite called BenchAlign. Close behind come other Anthropic entries. Then GPT-5.6 Sol from OpenAI. The numbers look impressive on paper. But scratch the surface and a more complicated picture emerges.

Benchmarks once separated clear winners from also-rans. Not anymore. Frontier models now cluster so tightly on many tests that differences fall inside statistical noise. BenchLM.ai tracks 394 models across 437 evaluations as of mid-August 2026. Its weighted system gives heavy emphasis to agentic tasks and coding. Knowledge and reasoning follow. The top five models all exceed 80 on this scale. Yet the gap between first and tenth is smaller than it appears.

And the leaderboard from Koutian Wu highlights another angle. His Benchmark Radar aggregates observations from papers, repositories and community notes. It shows how scattered evaluation efforts have become. One search for terms like “scientific agent benchmark” pulls together relevant tests that researchers would otherwise hunt down individually across arXiv and GitHub.

Older tests have lost their bite. MMLU and its harder sibling MMLU-Pro once offered clean rankings. Now frontier systems push past 90 percent. A Kili Technology analysis from April 2026 notes that GPT-5.3 Codex reaches 93 percent. Differences between models shrink to statistical noise. Human experts score around 65 percent on the original version. Machines left them behind years ago.

GPQA Diamond aimed to fix that. It presents graduate-level questions in physics, chemistry and biology. PhD holders reach 65 percent. Non-experts with web access manage 34 percent. As of recent data GPT-5.4 hits 92 percent. Gemini 3 Pro Preview leads some variants near 90 percent. Saturation creeps in even here. The Kili Technology analysis warns that once models exceed 88 to 90 percent, the test stops distinguishing capability at the cutting edge.

LiveCodeBench tries to stay ahead. It pulls fresh competitive programming problems published after training cutoffs. Contamination risk drops. Gemini 3 Pro Preview scores 91.7 percent in one evaluation run by Artificial Analysis. DeepSeek variants follow closely. Qwen3.8-27B, an open-weight model with 27 billion parameters, reportedly reaches 90.3 percent according to vendor figures shared on X. That puts it ahead of some larger closed models on this measure. Discussions on the platform highlight how such a model can run quantized on a used RTX 3090 that costs around $900.

But vendor numbers require caution. Independent verification lags. SWE-Bench Verified and its harder Pro variant expose similar issues. Frontier systems show signs of training data overlap. One report cited in the Kili piece found 59.4 percent of hard tasks potentially flawed. Claude Opus 4.5 scores 80.9 percent on Verified but drops to 45.9 percent on the stricter SEAL Pro version.

Humanity’s Last Exam pushes further. Created by domain experts and published in Nature this year, it contains 2,500 questions at the edge of human knowledge. Gemini 3 Pro Preview achieves 37.5 percent. Claude Opus 4.6 Thinking Max follows at 34.4 percent. GPT-5 Pro lands at 31.6 percent. Human specialists average near 90 percent. The gap remains vast. Yet even this test faces pressure as models improve.

Open-weight models narrow the distance in specific areas. Qwen3.8 Max from Alibaba scores 79.91 overall on BenchLM, the highest among openly available options. It leads in multilingual and instruction-following categories with marks near 98. Kimi K3 from Moonshot AI offers strong value at lower pricing. Recent X posts celebrate how 27B-class models now rival or exceed previous closed frontier performance on coding and agent benchmarks while running locally.

Yet closed models from Anthropic still dominate the composite. Claude Opus 5 posts 83.07 overall. Its reasoning category reaches 91. GPT-5.6 Sol excels in math and certain coding metrics. The Stanford AI Index 2026 report notes that as of March the top closed model led the best open one by 3.3 percent on some measures, up from near parity in 2024. Six of the top ten on the Arena leaderboard are closed.

The U.S.-China performance gap has narrowed to single digits. DeepSeek and Qwen variants trade blows with American counterparts. In February 2025 DeepSeek-R1 briefly matched the U.S. leader. By March 2026 the U.S. edge stood at 2.7 percent according to the Stanford report.

Benchmarks alone no longer tell the full story. Production deployments reveal cracks. The Kili analysis cites a 37 percent gap between lab scores and real enterprise agent performance. Cost to reach similar accuracy can vary by 50 times depending on the framework chosen. Data contamination, benchmark gaming and annotation errors above 50 percent undermine confidence. Static single-turn tests fail to mirror messy, multi-step real work.

OpenAI’s GDPval approach turns to domain experts with 14 or more years of experience as final judges. This human layer catches errors that automated metrics miss. The Kili piece argues for a stacked evaluation strategy. Automated signals first. Then LLM-as-judge. Finally expert human review for domain correctness, regulatory fit and edge cases. Evaluation must become continuous inside CI/CD pipelines rather than a one-time checkpoint.

Recent releases underscore the pace. Nineteen new models appeared in August 2026 per BenchLM tracking. DeepSeek V4 Pro 0813, GLM-5.3 and others landed mid-month. Meta climbed in provider standings. Yet the very top remains occupied by familiar names. Claude Mythos 5 holds the lead.

So what should teams do? Look past headline percentages. Test on private datasets. Measure latency, cost and failure modes in production-like conditions. Combine hard benchmarks with human judgment. The numbers have converged. The differences that matter now hide in reliability, specialization and total ownership cost.

Watch LiveCodeBench and Humanity’s Last Exam. They still separate contenders. But treat even those scores as signals, not verdicts. The field has entered a phase where engineering discipline and careful evaluation separate winners from the pack. Raw benchmark leadership no longer guarantees success in the field.

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Hundreds of Fake Chrome VPN Extensions Hijack Traffic While Posing as NordVPN and Proton

Security researchers uncovered a sprawling operation that placed more than 75,000 Chrome users at risk. The scheme relied on 737 browser extensions. Many copied the look and names of established VPN services. They promised privacy. Instead they funneled every web request through proxy servers controlled by a single operator.

Socket’s Threat Research Team laid out the findings in exhaustive detail. The extensions appeared across at least 40 developer accounts on the Chrome Web Store. Of those, 274 impersonated 66 recognized brands. The list includes NordVPN, Proton VPN, Surfshark, ExpressVPN, Cloudflare’s 1.1.1.1 service, and several others. (Socket)

Users in Russia and Russian-speaking regions formed the main target audience. They sought ways around blocks on Instagram, ChatGPT, YouTube and similar platforms. The extensions posed as free tools for censorship circumvention. Their real purpose looked different.

Traffic flowed straight into the operator’s hands.

Most of the extensions set Chrome’s proxy configuration to a fixed SOCKS5 server on port 1082. The change applied to the entire browser session. No per-site exceptions. The bypass list contained only loopback addresses. Everything else passed through the proxy. That placed the operator in an adversary-in-the-middle position. They could see destination domains, source IP addresses, TLS Server Name Indication values, and any data sent over plain HTTP.

Researchers counted 520 extensions out of 522 analyzed that routed traffic through the same SOCKS5 infrastructure. Another 104 resolved proxy hostnames through Cloudflare or Google DNS-over-HTTPS. The technique helped shield the operator’s domains from easy scrutiny. (BleepingComputer)

Some extensions went further. They advertised premium servers located in Japan, Singapore, Canada, Australia and Turkey. Those hostnames resolved to no A records. The paid tiers never existed. The setup amounted to subscription fraud. Users who paid 99 roubles a month for an “EXTENSION” tier received nothing functional. The campaign also funneled victims toward a legitimate-sounding Russian subscription VPN service run by the same actor. Public records show the operator maintains a tax registration in Russia. (The Hacker News)

Code artifacts pointed to one build machine. File paths contained “C:\Users\ollob\OneDrive\Документы\1.myxa-work”. The name Myxa VPN, or Муха VPN in Russian, appeared in 360 popup strings. Internal notes in Russian instructed developers to supply only resolved IP addresses in chrome.proxy.settings and avoid listing domains. The instructions suggested deliberate efforts to evade store review policies.

Google acted after the disclosure. It removed 221 of the extensions. At the time of collection 516 remained live with 58,318 installs. Total campaign installs reached 75,486. Some extensions received code updates after initial approval. That let operators add the proxy configuration later. Others used shared analytics accounts and nearly identical code skeletons. One skeleton appeared in 50 live extensions alone. (TechRadar)

The findings arrived at a moment when browser-based privacy tools face growing skepticism. Extensions once offered lightweight alternatives to full VPN clients. Many users installed them without much thought. Free. Simple. Promising protection. Yet the trust model breaks when store listings lie about capabilities and destinations.

Kush Pandya, part of the Socket team, described the risk plainly. “The censorship circumvention extensions route the user’s entire browser session through SOCKS5 proxies operated by a single provider.” He added that 520 of the 522 extensions in the main set used the same infrastructure. In another statement he noted, “With all browser traffic forced through it [the relay], the threat actor’s server is positioned to read every destination, every TLS SNI value, the victim’s source IP, and any request body sent over plain HTTP.”

Another quote from Pandya drove the point home. “For each affected user, while the extension is connected, every request passes through a server the threat actor controls. If it resells, a further party is in the same position.”

These extensions didn’t encrypt traffic themselves. They relied on the SOCKS5 proxy. That left data exposed at the proxy layer. And the operator controlled that layer. No independent audit. No transparency report. Just a black box sitting between the user and the internet.

Recent coverage echoes the same alarm. A report published yesterday detailed how the campaign combined brand impersonation with technical evasion tactics. It noted the extensions often carried misleading store descriptions and fake reviews. (Bitdefender HotforSecurity)

Another analysis from two days ago highlighted the Russian focus and the link to a domestic VPN provider. It warned that users who installed these tools to regain access to blocked services may have traded one form of control for another. (Cyber Press)

Chrome users now face a practical problem. How do you know the extension you picked is legitimate? Visual similarity proves easy to fake. Store ratings can be manufactured. Permissions requests for proxy settings sound reasonable for a VPN tool. Yet they grant sweeping power.

Security teams recommend immediate action. Check the list of installed extensions. Look for anything promising free VPN or proxy access that mimics known brands. Remove suspicious ones. Reset proxy settings to default. If credentials were entered on non-HTTPS sites while the extension ran, change those passwords.

The episode exposes deeper weaknesses in the Chrome Web Store review process. Post-approval code changes slipped through. Nearly identical extensions from multiple accounts evaded detection for months. Shared infrastructure linked them all. Yet the store approved hundreds before researchers connected the dots.

Enterprise security leaders have taken notice. Many already block unvetted extensions by policy. This case strengthens the argument for tighter controls. Browser traffic represents sensitive data. Routing it through unknown proxies creates unacceptable exposure.

The operator appears to run a dual business. One side offers paid VPN subscriptions inside Russia. The other harvests traffic and data from users who thought they were bypassing censors for free. The overlap suggests a calculated approach. Build trust with a familiar brand name. Deliver the proxy. Collect the traffic. Monetize both ways.

Socket published the full list of extension IDs. Security teams can scan against it. Google continues to remove detected copies. Yet new variants could appear. The tactics are straightforward. Copy a logo. Write promising text. Request proxy permissions. Update the code later. Repeat across dozens of accounts.

This isn’t the first time fake VPN extensions have surfaced. It stands out for scale and coordination. Over 700 extensions. Tens of thousands of users. One infrastructure. Clear financial motive. The combination makes it hard to dismiss as isolated scams.

Browser vendors face pressure to improve. Stronger static analysis during review. Better detection of post-publication changes. Limits on proxy-related permissions for unverified publishers. Users, meanwhile, must become more cautious. The convenience of a one-click extension carries hidden costs when the wrong party holds the keys.

Privacy-conscious professionals already favor dedicated VPN applications with audited no-logs policies and independent testing. Browser extensions served a niche. That niche just shrank. The risk of handing your entire browsing session to an unknown Russian proxy operator outweighs any minor convenience.

The discovery serves as a reminder. Trust in the Chrome Web Store is not absolute. Verify before you install. Check permissions carefully. And when something promises free access to blocked services while wearing a famous brand’s name, look twice. The real cost could be far higher than 99 roubles a month.

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Impermanent Loss in Uniswap: Causes, Impact, and Risk Management Strategies

Liquidity providers in decentralized finance often encounter a phenomenon that can erode their expected returns even when the underlying assets maintain or increase in value. This concept, known as impermanent loss, represents one of the primary risks associated with supplying capital to automated market makers on platforms like Uniswap, SushiSwap, and PancakeSwap. Understanding how impermanent loss occurs helps participants make informed decisions about whether to commit their digital assets to liquidity pools.

The mechanism begins with the fundamental design of automated market makers. These protocols replace traditional order books with liquidity pools that contain pairs of tokens. When users trade against the pool, the ratio of the two assets shifts according to a mathematical formula, typically the constant product formula popularized by Uniswap where the product of the quantities of each token remains constant. As traders buy one token and sell the other, the pool automatically adjusts its reserves to reflect the new market price.

Consider a simplified example. Suppose you provide equal value of ETH and USDC to a pool when ETH trades at $2,000. You deposit 5 ETH and 10,000 USDC, creating a total position worth $20,000. The constant product formula maintains 5 times 10,000 equals 50,000. If the price of ETH rises to $4,000, arbitrage traders will purchase ETH from the pool until the internal price matches the external market. The pool will now contain approximately 3.54 ETH and 14,140 USDC while still satisfying the constant product equation.

Your share of the pool, assuming you own the entire liquidity, would now be worth roughly $28,280. However, if you had simply held the original 5 ETH and 10,000 USDC outside the pool, your position would now be valued at $30,000. The difference of $1,720 represents impermanent loss. The term “impermanent” refers to the fact that this loss only materializes if you withdraw your liquidity at the new price ratio. Should the price of ETH return to $2,000, the loss would disappear as the pool rebalances back to the original composition.

This example illustrates why impermanent loss carries particular significance for liquidity providers. The automated market maker effectively forces participants to sell the appreciating asset and buy the depreciating one as prices move. When volatility increases, the magnitude of impermanent loss grows accordingly. Research from Yahoo Finance highlights how this dynamic can transform what appears to be a profitable yield farming opportunity into a net loss position after accounting for price divergence.

Several factors influence the severity of impermanent loss. The degree of price divergence between the paired assets stands as the most significant variable. Pairs with highly correlated assets, such as stablecoin-stablecoin pools or wrapped versions of the same token, experience minimal impermanent loss because their prices tend to move in tandem. In contrast, pools containing volatile assets like ETH and a governance token can suffer substantial losses during market swings.

The curvature of the bonding curve also affects outcomes. The standard x*y=k formula creates a hyperbolic relationship that becomes increasingly steep as one asset dominates the pool. Newer protocols have introduced alternative curves designed to reduce slippage and potentially mitigate impermanent loss under certain conditions, though these modifications often introduce different tradeoffs regarding capital efficiency and trading fees.

Trading fees collected by the pool provide the primary counterbalance to impermanent loss. Liquidity providers earn a percentage of every transaction that occurs within their pool, typically ranging from 0.05% to 1% depending on the platform and pair volatility. When fee revenue exceeds the value lost to impermanent loss, providing liquidity generates positive returns. The breakeven point depends on trading volume, fee tier, and price volatility. High-volume pairs on major decentralized exchanges can generate sufficient fees to overcome moderate impermanent loss, while low-liquidity or infrequently traded pairs rarely compensate providers adequately.

Time horizon plays a substantial role in evaluating liquidity provision strategies. Short-term price movements tend to create temporary impermanent loss that may reverse as markets mean-revert. Longer holding periods increase the probability of permanent divergence between asset prices, particularly when pairing established cryptocurrencies with newer or more speculative tokens. Historical data shows that bitcoin and ethereum have experienced extended periods of price appreciation relative to stable assets, creating sustained impermanent loss for providers in BTC-USDC or ETH-USDC pools.

Position sizing and portfolio construction offer practical approaches to managing this risk. Rather than committing all capital to a single pool, experienced providers often distribute assets across multiple pairs with varying correlation profiles. Some maintain a portion of their holdings in single-sided staking or lending protocols that avoid impermanent loss entirely. Others employ sophisticated strategies such as liquidity provision within concentrated ranges, a feature popularized by Uniswap v3 that allows providers to specify price boundaries where their capital remains active.

Concentrated liquidity represents a meaningful evolution in how participants can address impermanent loss. By restricting capital to specific price ranges, providers can achieve higher capital efficiency and potentially higher fee yields. However, this approach introduces new risks including the possibility of assets becoming entirely inactive if prices move outside the chosen range. Active management becomes necessary to adjust ranges as market conditions change, transforming liquidity provision from a passive activity into one requiring regular attention.

Beyond individual position management, broader market conditions influence the attractiveness of liquidity provision. During bull markets characterized by strong upward price trends, impermanent loss tends to increase as one asset in each pair appreciates significantly against the other. Bear markets can produce similar effects in the opposite direction. Sideways markets with moderate volatility often prove most favorable for liquidity providers because trading activity remains healthy while extreme price divergence stays limited.

The taxation of impermanent loss adds another dimension to the calculation. In many jurisdictions, depositing assets into a liquidity pool constitutes a taxable event, as does withdrawing them. This creates potential tax liabilities even when the overall position has declined in value due to impermanent loss. The fees earned throughout the period are typically taxed as ordinary income, further complicating the net return profile. Professional liquidity providers often consult tax specialists familiar with cryptocurrency regulations to optimize their reporting and minimize unnecessary tax burdens.

Several tools and analytics platforms now help users quantify impermanent loss before committing capital. These services calculate historical impermanent loss for specific pairs, project potential future scenarios based on volatility assumptions, and compare expected fee revenue against projected losses. Such data empowers more precise decision-making rather than relying solely on advertised annual percentage yields that rarely account for impermanent loss.

Alternative automated market maker designs have emerged specifically to address impermanent loss concerns. Some protocols incorporate mechanisms that actively hedge against price divergence using options or futures. Others adjust the mathematical formulas governing pool rebalancing to reduce the rate at which assets are swapped during price movements. While these innovations show promise, many remain in experimental stages with limited liquidity or unproven long-term performance.

The decision to provide liquidity ultimately requires balancing multiple variables: expected trading volume, fee structure, asset correlation, personal risk tolerance, time commitment for management, and tax situation. No universal formula determines whether providing liquidity makes financial sense. Each participant must evaluate these factors against their specific circumstances and market outlook.

For those new to decentralized finance, beginning with smaller positions in well-established pools allows practical experience with impermanent loss before scaling exposure. Monitoring positions regularly and maintaining detailed records of entry prices, fee earnings, and current values helps develop intuition about how different market movements affect returns. Over time, patterns emerge that inform better pair selection and position sizing.

As decentralized exchanges continue maturing, the mechanisms surrounding liquidity provision will likely see further refinement. New mathematical models, improved user interfaces, and more sophisticated risk management tools may reduce the friction currently associated with impermanent loss. Until then, awareness and careful calculation remain the most effective tools for participants seeking to generate yield while protecting their capital from unexpected erosion.

The concept extends beyond pure financial considerations into the broader functioning of decentralized markets. Impermanent loss exists because liquidity providers bear the cost of providing continuous trading availability to the market. In traditional finance, market makers employ sophisticated hedging strategies and benefit from institutional advantages to manage inventory risk. Decentralized systems distribute this role across thousands of individual participants, each accepting a portion of the risk in exchange for a share of the fees.

This democratization of market making carries both advantages and challenges. On one hand, it creates permissionless access to yield-generating opportunities that were previously reserved for specialized trading firms. On the other, it exposes retail participants to risks they may not fully comprehend when first entering liquidity pools. Educational resources and transparent analytics have become essential components of the decentralized finance infrastructure to support informed participation.

Successful liquidity providers often develop comprehensive strategies that account for impermanent loss as one variable among many. They might combine liquidity provision with options strategies to hedge against large price movements. Some focus exclusively on stable asset pairs where impermanent loss remains negligible. Others specialize in particular sectors or token categories where they possess superior knowledge about likely price relationships.

The mathematics underlying impermanent loss follows a predictable curve that can be modeled with reasonable accuracy. For a standard constant product pool, the formula for impermanent loss can be expressed as a function of the price ratio change. If the external price moves by a factor of x, the value of the liquidity position relative to holding the assets equals 2√x / (1 + x). This equation produces a loss of approximately 5.7% when prices double or halve, 13.4% when prices triple or drop to one-third, and rapidly increasing losses as divergence grows larger.

These mathematical realities underscore why volatility represents a double-edged sword for liquidity providers. Higher volatility generates more trading activity and therefore more fees, but it simultaneously increases the magnitude of potential impermanent loss. Finding the optimal balance between these competing forces defines much of the strategic thinking in decentralized market making.

Platform incentives further complicate the analysis. Many decentralized exchanges distribute governance tokens or other rewards to liquidity providers to bootstrap trading volume. These additional incentives can temporarily offset impermanent loss, sometimes dramatically. However, such programs typically have finite durations, and participants must assess whether the core economics of the pool remain viable once incentive emissions decline.

The interaction between impermanent loss and opportunity cost deserves careful consideration. Capital committed to liquidity pools cannot simultaneously be deployed in other yield-generating activities or held in anticipation of better entry points. The true cost of providing liquidity includes not only potential losses from price divergence but also foregone gains from alternative strategies that might have performed better during the same period.

Despite these challenges, liquidity provision remains a cornerstone activity within decentralized finance. The fees generated by automated market makers support the economic model that allows these platforms to function without traditional intermediaries. As the sector continues developing, participants who master the nuances of impermanent loss position themselves to make more effective allocation decisions and potentially capture sustainable returns from their digital assets.

Understanding the mechanics, monitoring relevant metrics, maintaining disciplined position management, and regularly reassessing market conditions all contribute to more successful outcomes. While impermanent loss cannot be eliminated entirely from constant product automated market makers, informed participants can take steps to minimize its impact and maximize their probability of generating positive returns over time. The key lies in treating liquidity provision as an active investment strategy rather than a set-it-and-forget-it proposition, with impermanent loss representing one of several factors requiring ongoing attention.

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Linus Torvalds Accepts Oversized Linux Kernel Releases as AI-Driven Reality

Linus Torvalds sounded resigned. On August 9, 2026, he announced the seventh release candidate for Linux 7.2. The volume of changes struck him as excessive. “I can’t say that I’m exactly thrilled about the size of this all,” he wrote in the announcement posted to the kernel mailing lists. “But it is what it is: the new normal with a lot of fixes, many of them due to review by various AI tools.”

One week earlier his message for rc6 had been blunter. He called it huge. By commit count it stood as the largest rc6 in years. Those two notes, separated by just seven days, captured a shift that has been building for months. AI tools now scan code at scale. They surface bugs that human eyes might miss. Humans still write the patches. The sheer number of them has changed the rhythm of kernel development.

TechRadar first reported the comments on the same day Torvalds posted rc7. The piece noted more than 400 fixes from upwards of 230 contributors in that single candidate. Such numbers once belonged to the opening merge window. Now they arrive late in the cycle. Stabilization has given way to sustained high activity.

And the pattern holds. Phoronix tracked the same release and described an environment where AI and large language model agents keep kernel activity at record levels. Late fixes pour in across drivers, filesystems, networking and architecture code. Nothing looked particularly scary, Torvalds added. A final release remained possible the following weekend. The volume itself had become the story.

This surge traces back to earlier friction. In May 2026 Torvalds declared the kernel’s private security mailing list almost entirely unmanageable. Duplicate reports generated by AI tools created pointless churn. He urged researchers to read the documentation, test their findings and submit real patches instead of raw output. The episode showed both sides of the coin. AI finds flaws quickly. It also floods inboxes when used carelessly.

By July the tone had clarified. Torvalds responded to a discussion that touched on anti-LLM sentiment from the Software Freedom Conservancy. His reply left little room for doubt. “Linux is not one of those anti-AI projects, and if somebody has issues with that they can do the open-source thing and fork it. Or just walk away.” The message, reported by The Register on July 15, 2026, settled the project’s official stance. AI counts as a tool. Nothing more. Nothing less.

He has repeated the point. In a July 15 note covered by Phoronix, Torvalds called AI and LLMs simply tools for helping kernel developers. The project does not exist to take social positions. It exists to make better software. That pragmatic view now shapes how maintainers operate.

Review processes have evolved. Developers point analysis agents at existing code. The agents generate actionable bug reports. Humans evaluate them, write fixes and route the patches through established subsystem channels. Torvalds still pulls the final code. The firehose of suggestions tests the maintainer model. A handful of trusted voices once reviewed everything. That model bends under sustained high volume.

But Torvalds shows no sign of halting the flow. He has acknowledged the advantages for code review even while expressing discomfort with the resulting patch counts. The late-cycle bug fixes do not introduce flashy new features. They harden what already exists. Drivers receive attention. Networking code gets tightened. Filesystems see incremental repairs. The kernel that powers the majority of servers, every Android phone and a growing share of desktops grows more solid, if more slowly.

Outside observers note the 20 percent jump in submissions some releases have seen since AI tools gained traction. Transparency rules now apply. Since 2025 any patch that uses AI assistance must declare that fact. The requirement prevents hidden automation from slipping past human judgment. It also lets the community measure exactly how much machine help enters the tree.

Security remains a flashpoint. AI bug hunters have uncovered real vulnerabilities. They have also produced duplicates and false positives that waste maintainer time. Torvalds warned in May that the security list had become unmanageable. He promised to grow more hardnosed. Researchers must now test patches before submission. The bar sits higher. The payoff, when the reports prove accurate, justifies the extra friction.

Recent coverage captures the tension. The Register returned to the topic four days ago and noted Torvalds will not let the larger candidates delay version 7.2. He accepts the new pace. He does not celebrate it. That measured acceptance reflects years of watching hype cycles. In 2024 he dismissed 90 percent of AI marketing as hype. Two years later he calls the tools clearly useful.

The shift carries implications for the wider open source world. Linux drives cloud infrastructure, supercomputers and billions of mobile devices. Any acceleration in its hardening process ripples outward. Yet the maintainer bottleneck persists. If AI multiplies the number of credible fixes, human review capacity must keep up. Some worry the model could crack. Others see an opportunity to train better automated reviewers that reduce noise over time.

Torvalds himself uses AI in side projects. Reports from early 2026 showed him applying the tools to personal code. He draws a firm line for the kernel. Humans write. Humans test. AI assists. The distinction matters. It preserves accountability and the project’s long record of stability.

So the releases grow larger. The merge window feels perpetual. Fixes arrive late and in volume. Torvalds calls it the new normal. Industry watchers track whether that normal hardens into a permanent state or whether new processes emerge to tame the influx. For now the kernel marches forward. Bigger candidates. More contributors. AI-powered reviews. And Linus Torvalds, pragmatic as ever, pulling the changes that pass muster.

His stance has quieted some internal debate. Fork if you dislike it, he said. Few have. The project continues. The tools improve. The fixes accumulate. Linux 7.2 will ship soon enough. It will carry the marks of this new era. Not flashy. Not revolutionary. Simply more correct, thanks in part to silicon that never sleeps.

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ICE’s Electric Shock Gloves: A $20 Million Push for New Force Options in Immigration Enforcement

Federal immigration officers could soon wear gloves that pack a hidden punch. The devices deliver a painful electric shock on contact. And the agency behind the plan says they offer a way to gain quick compliance without reaching for deadlier tools.

Immigration and Customs Enforcement plans to spend as much as $20 million on thousands of the specialized gloves. A notice posted this week by the Department of Homeland Security outlines the purchase of what the manufacturer calls conductive distraction and de-escalation devices. Delivery could happen by March 2027. The Associated Press first reported the details.

These aren’t standard winter mitts. The gloves, known as G.L.O.V.E. or Generated Low Output Voltage Emitter, come from Compliant Technologies LLC in Lexington, Kentucky. They look like ordinary protective handwear. Yet a switch on the glove activates a charge reaching up to 380 volts when pressed against skin. The effect disrupts coordinated muscle movement. Compliance often follows in seconds.

Officials position the gloves as a nonlethal option. They fit into broader efforts to equip agents with tools that reduce injury risks during arrests or detentions. But the timing raises eyebrows. Immigration enforcement has intensified under the current administration. Agents face more encounters with resistant individuals. Critics worry the devices could open the door to abuse.

The Verge covered similar plans years ago when the idea first surfaced. Back then questions centered on accountability and training. That earlier reporting highlighted concerns about hidden capabilities in everyday-looking gear. Today’s announcement revives those debates with fresh stakes. The scale of the purchase signals serious commitment.

Manufacturer materials describe the product as “a great, humane, low-optics, de-escalation solution.” They claim it brings subjects into compliance “usually effective in bringing individuals into compliance in less than three seconds.” The company has supplied similar devices to some local police departments and jails. Results there vary. Some officers praise the speed. Others report inconsistent outcomes.

Yet user manuals reveal limits. Don’t apply more than one pair to the same person. Limit shocks to no more than 15 seconds. Avoid use on children, the elderly, pregnant people or those with disabilities. The warnings acknowledge risks. One manual even notes the possibility of contributing to “sudden death” in rare cases. Such language fuels skepticism among civil rights groups.

Advocates reacted swiftly to the news. Organizations that monitor ICE operations called the move alarming. They argue existing less-lethal options like tasers or pepper spray already suffice. Adding electrified gloves might encourage shortcuts. Physical contact becomes the default response. “This could be devastating,” one analyst told reporters covering the story.

ICE has not released detailed usage policies for the gloves. Body cameras are rolling out agency-wide by month’s end. That timing seems convenient. Footage could document when and how agents deploy the shocks. Still, questions linger about review processes. Who decides when a shock is justified? How will complaints be investigated?

The gloves fit a pattern. Law enforcement agencies across the country have adopted conducted energy devices over the past two decades. Tasers became standard issue in many departments. Data on their use shows both benefits and problems. Reduced shootings in some cities. Yet reports of misuse and medical complications in others. Federal adoption by ICE adds another layer. Immigration detainees often lack the same legal protections as criminal suspects.

Recent coverage captures the divide. The Guardian detailed the $20 million commitment and noted the manufacturer’s claims of quick effectiveness. CBS News and NBC News ran segments highlighting both the de-escalation pitch and pushback from advocates. Truthout framed the purchase within larger criticisms of ICE tactics. The volume of reporting in just 48 hours shows the story’s resonance.

Supporters counter that agents need every advantage. Field operations involve unpredictable threats. A combative subject can turn a routine stop dangerous. Gloves allow officers to maintain distance less than a baton or firearm might require. The low voltage compares more to a pet collar than a police taser. Pain without lasting injury. At least that’s the theory.

Training will matter. How many hours will agents spend practicing activation and restraint? What scenarios trigger authorized use? ICE declined to answer specific questions this week. A statement called the gloves one tool among many for officer safety. The agency emphasized compliance with all use-of-force policies.

History offers caution. Past introductions of new equipment at ICE and Border Patrol sparked controversy. Pepper spray incidents led to reviews. Vehicle pursuits resulted in policy changes. Each time officials promised safeguards. Implementation sometimes fell short. Independent oversight remains limited for immigration enforcement.

Cost adds another consideration. Ten to twenty million dollars buys a lot of gloves. Exact quantity remains undisclosed. Per-unit price isn’t public. Taxpayers foot the bill during debates over federal spending priorities. Immigration courts face backlogs. Detention centers report overcrowding. The investment in shock technology strikes some as misplaced.

Legal questions emerge too. New York Governor Kathy Hochul suggested the gloves might violate state law. Agents using them there could face prosecution. Other jurisdictions may follow with restrictions. Federal authority typically prevails in immigration matters. Yet local pushback could complicate operations.

Technology evolves. So do the ethical lines around its application. These gloves represent one step in a longer progression. From batons to tasers to conducted energy weapons integrated into clothing. Future versions might incorporate sensors or automatic activation. The trajectory points toward more intimate forms of control.

Public reaction on social media split along familiar lines. Some users decried dystopian overreach. Others applauded innovation in keeping officers safe. The conversation reflects deeper divides over immigration enforcement itself. Tools become proxies for larger arguments.

Compliance Technologies has sold the devices for years. Their marketing stresses discretion and humanity. Low optics means the gloves don’t look intimidating until activated. That feature appeals to agencies sensitive to public perception. Yet it also worries those who fear hidden escalation.

Medical experts weigh in on the effects. Electric shocks can trigger panic, muscle spasms or cardiac events in vulnerable people. Duration and intensity matter. The 15-second limit exists for reasons. Enforcement in real-world chaos might exceed guidelines. Body camera review becomes essential. Without it accountability suffers.

The DHS notice marks an early step. Contracts will follow. Testing and distribution come next. Agents won’t carry the gloves tomorrow. But the decision sets a precedent. Federal immigration enforcement embraces direct-contact electric pain as standard equipment.

Watchdogs promise close scrutiny. They want transparent policies before rollout. Training records. Deployment data. Incident reports. Anything less invites suspicion. The gloves may prove effective and safe. They may also reveal new problems once deployed in the field.

Either way the purchase signals priorities. Control through technology. Reduced reliance on lethal force. Expanded options for officers facing resistance. The coming months will test whether those goals align with practice. For now the shock gloves represent both promise and peril in one unassuming package.

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The Brain Mine: How Tech Giants Turned Thoughts Into the Ultimate Commodity

Scientists can now decode language from brain signals. They can implant visual patterns that make a mouse behave on command. And companies stand ready to gather it all.

Rafael Yuste demonstrated the principle with a simple gesture. “If you imagine my fingers were bars of light surrounded by complete blackness—if I move my fingers in front of your eyes, that fires up your whole visual cortex.” The neurons light up. The data flows. WIRED captured the exchange in an excerpt from James Crawford’s new book The Vanishing Earth.

What began as medical research now points toward something far darker. Extraction. Not of oil or minerals. Of cognition itself. The patterns that make us human. The unspoken reactions. The fleeting intentions. All turned into data streams for sale.

Yuste, a neuroscientist at Columbia University, watched the shift with growing alarm. He helped pioneer techniques that read the visual cortex. Then came implants. Then the realization. “We can see the neurons that are encoding the visual stimulus.” The next step terrified him. In lab tests, researchers projected images directly onto a mouse’s cortex. The animal reacted as if seeing them in reality. “The killer experiment was to turn off the screen… So, we are playing the images on the cortex. And when we play them, we make the mouse behave in the way we want it to.”

And what works in a mouse today. We can do in a human tomorrow. Those words hang in the air. A warning ignored by the industry racing ahead.

Edward Chang, a neurosurgeon at UC Berkeley, restored speech to Ann Johnson, a woman who had lost her voice. Electrodes on her brain captured signals. A computer translated them into text and then speech. “They unlocked her. They cloned her mind in a computer. Well, not her whole mind, but this language part.” Chang later confided in Yuste. “I cannot sleep… Because he realized all the power and all the perils. This is incredible for patients that are paralyzed. But imagine you put this on a person for other reasons. There is great responsibility. Look what we have in our hands. We just built you a machine that can decode your language. And in 10 years, we’re going to give you a machine that can interfere with your thoughts the way we do it in mice today.”

Interfere with thoughts. Not science fiction. A trajectory already mapped.

Alexander Huth at the University of Texas decoded brain activity while people listened to podcasts. The system reconstructed the stories with startling accuracy. Huth’s team reaction captured the unease. “Our thought when we actually had this working was, ‘Oh my God, this is kind of terrifying.’”

Jack Gallant, another Berkeley researcher, sketched a future device he called a thinking hat. Wear it. Generate data. Get paid. A gig economy for your inner life. The mind as resource. Stripped and sold.

This isn’t speculation from dystopian novels. George Orwell warned of total surveillance in 1984. Philip K. Dick imagined pre-crime detection in stories that inspired Minority Report. Those works were meant as cautions. Not instruction manuals for Silicon Valley.

Yet here we stand. With headsets from Emotiv already used by L’Oreal to test consumer reactions to fragrances. With BrainCo supplying EEG devices to Chinese schools for attention monitoring. With Dubai police deploying iCognative technology that claims to detect lies or intent from brain waves. The WIRED excerpt details these deployments. Companies treat the brain as the next Wild West. “Let me just take possession of it all. It’s like the Wild West. You go in there and stake a claim for whatever you can,” Yuste observed of their approach.

The data reveals more than preferences. It exposes emotions. Subconscious biases. Unvoiced doubts. Information deeper than any search history or social media post. New America researchers described the threat clearly. Neural signals “can reveal intimate information about a person’s thoughts, emotions, and subconscious states.” Privacy risks grow because this data exceeds anything gathered through conventional tracking. Marketers already use EEG to measure second-by-second reactions to ads. The result? Real-time manipulation. Behavioral loops that condition responses without awareness. Erosion of autonomy follows.

Imagine workplaces that don’t just monitor output but neural engagement. Adjustments made in real time to keep brains in the optimal productivity zone. Schools that flag wandering attention before a student even realizes disengagement. Dating apps that match not on stated interests but on subconscious compatibility read from brain patterns. The disgust builds quietly. Your most private self. Auctioned. Optimized. Controlled.

But the real horror lies in scale. Constant collection. AI models trained on millions of neural profiles. Predictive systems that anticipate actions before conscious choice. Governments or corporations with tools to shape beliefs at the source. No need for propaganda when stimulation can bypass conscious filters. “It’s the difference between propaganda and pointing a gun at someone’s thoughts,” as one analyst framed the leap in a December 2025 MedCity News analysis by Cyril Eleftheriou.

Eleftheriou pushed past speculation. California’s SB 1223 amendment to the Consumer Privacy Act classifies neural data as sensitive personal information. The law, passed in 2024 and taking effect later, demands stricter rules on collection and use. Colorado enacted similar protections. Chile’s courts ruled against Emotiv in 2023 after the company retained and potentially sold user brain data even after account deletion. These steps acknowledge the problem. They don’t solve the deeper rot.

Yuste and the Neurorights Foundation call for new human rights. Mental privacy. Cognitive liberty. Protection from algorithmic bias. The brain as sanctuary. “You need to shield that. You cannot just go in and start banking and selling brain data.” His urgency is plain. The need exists today. Not tomorrow.

Commercial neurotech now outnumbers medical applications. Headsets like Kernel’s Flow, iBand, and BrainBit promise everything from focus tracking to neuromarketing insights. Tech giants — Apple, Meta, Snap — explore neural interfaces for devices. The incentive is obvious. Data hunger never ends. Brains offer the richest vein yet.

The dystopian texture feels familiar because we read it decades ago. Total information awareness. Preemptive behavioral correction. Loss of inner freedom. Those stories depicted nightmares. Current trajectories treat them as features. Employers could soon require neural monitoring for safety. Or productivity. Consent becomes meaningless when economic pressure or social norms make refusal costly. The thinking hat stops being optional.

Crawford’s book frames this as the latest chapter in planetary extraction. First earth. Then data. Now minds. The pattern repeats. Prospectors move in. Claims get staked. Resources flow to those who control the infrastructure. The rest supply the raw material. Only this time the resource is you. Your reactions. Your creativity. Your unfiltered self.

Closed-loop systems add another layer of unease. Devices that read signals, interpret them, then stimulate the brain in response. Medical versions help epilepsy patients. Commercial versions could optimize mood or attention. But who sets the parameters? What happens when the loop favors corporate goals over individual well-being? Eleftheriou warned in MedCity News that such systems must remain transparent and contestable. Otherwise they repeat social media’s worst sins. Only deeper. Straight to the source.

Neuroexceptionalism — the idea that brain data deserves unique safeguards — draws debate. Some argue existing biometrics already enable sophisticated manipulation. Heart rate. Location. Engagement metrics. These shape behavior at scale today. Yet neural information carries unique intimacy. It bypasses what we choose to reveal. It captures what we cannot hide even from ourselves. The distinction matters. Dismissing it risks normalizing the unacceptable.

Recent discussions on X reflect public anxiety. Posts from August 2026 mention California bills limiting employer use of neural data to safety purposes. Others connect the technology to broader surveillance trends. Predictive algorithms. Data profiles. The sense that individual agency shrinks while institutional power grows. One user captured the mood. Enough with building profiles from every signal. The penalty for misuse should deter rather than enable.

Legal scholars and ethicists push for clearer boundaries. UNESCO adopted standards on neurotechnology ethics in 2025. They highlight threats to mental privacy, autonomy, and freedom of thought. The documents stress informed consent and protection against misuse. Words on paper. Enforcement remains the test.

The disgust arises from the violation. Not of the body. Of the self. The last private frontier breached. Thoughts once belonged only to the thinker. Now they generate value for others. Advertisers. Insurers. Employers. Security services. Each with their use case. Each eroding the space where a person can simply be.

Yuste put it starkly. “The brain generates the mind, and the mind is what makes us human.” If access to that process becomes commodity, what remains of humanity? A split society perhaps. Those augmented with neural enhancements. Those left behind or exploited for their unfiltered data. Inequality coded into cognition.

Tech leaders speak of empowerment. Restoration for the paralyzed. New forms of connection. Those benefits exist. They don’t erase the shadow. Power concentrates. Responsibility diffuses. The mouse experiment scales. Behavior shaped by implanted patterns. Scaled to populations through subtle, continuous influence. The warning from science fiction was clear. We built the machines anyway.

Recent coverage underscores the acceleration. A May 2026 analysis on Neuroba declared neural data privacy, cognitive liberty, and equitable access as defining policy challenges. Incremental progress in interfaces meets explosive growth in consumer devices. The gap between capability and governance widens.

So the question persists. Do we treat brains as mines to be stripped for profit? Or as gardens to cultivate difference, creativity, and autonomy? The choice narrows with every headset sold. Every dataset merged. Every policy delayed.

Crawford’s reporting leaves little room for comfort. The vanishing earth extends inward. The final frontier isn’t space. It’s the space between our ears. And the prospectors have already arrived. Armed with electrodes. Backed by balance sheets. Driven by the same logic that exhausted rivers and forests. Only this resource regenerates thoughts every second of every day.

Disgust feels like the only honest reaction. Not at the science. At the appetite that sees human consciousness as the next growth sector. At the willingness to ignore every literary and philosophical warning. At the speed with which caution yields to commerce.

Protections can still emerge. Laws can tighten. Norms can form around mental sanctity. But the window closes. Each successful decode. Each profitable application. Each normalized use case makes reversal harder. The machines that read language and project images work. They will improve. The only variable left is whether society demands they serve human dignity. Or merely extract it.

Yuste called it a human rights problem. If not this, then what qualifies? The answer will shape the next century. Not through grand declarations. Through the quiet accumulation of neural traces. Through the data economy that already knows your clicks and now wants your cortex. The dystopia isn’t coming. It’s being built one brain signal at a time.

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