In a recent viral tweet, Mert, the CEO of Helius Labs, broke down the evolution of cryptocurrency into three key phases, drawing parallels to a tech tree in the popular game Civilization. This insightful clip from a CoinDesk panel discussion at the Midnight Summit 2025 has sparked conversations across the crypto community, especially among meme token enthusiasts who see privacy as a game-changer for their favorite assets.

Mert's post, which you can check out here, outlines the progression like this: Phase 1 is all about Bitcoin, establishing legitimacy and basic usability. Phase 2 brings in programmability and scalability with platforms like Ethereum and Solana, enabling smart contracts and faster transactions. Finally, Phase 3 focuses on privacy, zero-knowledge (ZK) proofs, and encryption – technologies that allow users to verify information without revealing sensitive details.

This framework resonates deeply because it harks back to crypto's roots with cypherpunks, a group of activists who championed cryptography for privacy and open-source code. As Mert explains in the video clip attached to his tweet, Bitcoin solved initial problems of adoption, but scalability came next with innovators like Vitalik Buterin (Ethereum's founder) and Anatoly Yakovenko (Solana's co-founder). Now, the underdeveloped branch – privacy – is poised to unlock new possibilities.

Why Privacy Matters for Meme Tokens

Meme tokens, often built on fast and cheap blockchains like Solana, thrive on community hype and viral trends. However, current setups lack true privacy, making transactions traceable and potentially exposing holders to risks. Zero-knowledge proofs, for instance, could enable private trades or shielded meme token launches, protecting creators and investors from doxxing or regulatory scrutiny while maintaining the fun, speculative nature of memes.

The tweet's replies highlight this excitement, with users proposing Phase 4 ideas like tokenized assets, automation, and even specific projects. One reply draws an analogy to web evolution: Bitcoin as Web1 (foundational tech), Solana/Ethereum as Web2 (interactive economy), and Zcash ($ZEC) as Web3 (human-centric freedom platform).

Community Reactions and Emerging Projects

The discussion didn't stop at theory – replies buzzed with token shoutouts, blending serious tech with meme culture. For example, @carbonsheikh emphasized culture's role in Phase 3, mentioning $ZEC, $ZK, and $infopunks as tone-setters for a privacy-default web3.

Another user, @FussyConcerto, pointed to $Zera as a project tackling privacy on the blockchain branch.

@BTC_Maxi_Tears brought up $KAS as a potential trilemma solver (balancing decentralization, security, and scalability), complete with a meme-worthy image poking fun at Bitcoin maximalists.

Other mentions included $supra for automation and Zerdinals for native Zcash assets on Solana, showing how privacy tech is inspiring new meme-friendly innovations.

Implications for Blockchain Practitioners

For those building or trading in the meme token space, this evolution signals a shift toward more secure, private ecosystems. Projects integrating ZK tech could reduce front-running in meme launches or enable anonymous community voting, enhancing fairness and engagement. As Solana continues to scale, combining it with privacy layers might birth the next wave of viral memes that are not just fun but fundamentally resilient.

Mert's perspective reminds us that crypto isn't just about moonshots – it's about fulfilling the original promise of financial freedom through technology. Keep an eye on privacy-focused developments; they could redefine how we meme in web3.