Five bullet Friday - issue #128

Dear Partners,

    I had a relaxing vacation disconnected from the digital world. A lot changed in the last 2 weeks. I come back to realize that the world is slowly moving towards the potential of world war 3. In these 2 weeks, Canada flipped from democracy to a police state. They seized the funds raised through Gofundme of Canadian truckers,  assets seized without any due process, shut down bank accounts of supporters to the protest and declared a national emergency.

1. Canada showed to the world the true face of a government. They have printed trillions of dollars and made everyone poorer via inflation but still seized the $10 million dollars raised by truckers. They went full medieval and trampled on the protestors with horses and arrested kids. censorship-resistance offered by bitcoin came to their rescue. Canada's corrupt judges tried to seize bitcoin from one wallet provider. I enjoyed reading their letter to the Judge.

2. I have been following Jeremy Grantham for many years. He has a great track record of predicting stock market bubbles several times in the past. In this recent interview with Bloomberg, he is expecting the market to take a hit of at least 50% this year for S&P 500. The fundamentals of crypto markets are improving every day, while the traditional markets are declining every day. Traditional finance markets are very fragile and can unravel completely if Jeremy's predictions come true.

3. Many are worried about the recent drop in the price of KLIMA. Since we are compounding our money at the rate of 8000% APY, it is important that we do not disrupt this compounding process early on. In order to reap the benefits of compounding, we need to always have a long term perspective. KLIMA is planning to reduce their  APY in the next 2 weeks. We used to have 12000 tokens at the peak of the November bull market. Today, we have 184,724 tokens of KLIMA. In 2 years from now, we will have 237 KLIMA for each KLIMA token we have, pushing up our token count to 43 million tokens in two years. Even if the current depressed price of $20 per KLIMA token continues for another 2 years, it would be worth around $875 million.

4. Olympus DAO has announced that they are going to launch a secondary bond market and allow stakers to lock their tokens for longer time periods. Another major crypto modeling company, Gauntlet published a white paper with several Phd Students from Berkeley: people.eecs.berkeley.edu/~ksk/files/Ohm_Liquidity_Management.pdf. This is hugely bullish for OlympusDAO. In November, we used to own 140,000 OHM tokens. Today, due to our compounding returns, we own 334,176 tokens of OHM.

5. I have been spending a lot of time with auditors to treat the OHM to GOHM conversion as a non-taxable event which happened in early December. When the OHM token migrated to version 2, we had to convert our OHM to GOHM to facilitate voting with a non-rebasing token. IRS has not provided a clear guidance as to how to treat this conversion. I am arguing and convincing the tax experts from the Audit team to treat this as a non-taxable event. Our OHM position value at that time of the conversion was $90 million. Our audit team is reaching out to the IRS for a favorable determination letter so that we don't have to pay capital gains tax at the time of this conversion. Because of this, I am expecting a delay in sending K-1s. I request all of you to file for extensions in case we fail to get the K-1s sent over in time.

Have a wonderful weekend!

Sam Ikkurty