Five bullet Friday - issue #135

      I apologize for the delay in getting the Schedule K-1s. The main reason is we don't have clear-cut guidance from IRS on how to treat the staking income from algorithmic stable coins. Our position is that unrealized staking income cannot be part of taxable income. It is currently being discussed with the auditors. I request all of you to file for an extension or file the tax returns and amend them later after receiving the K-1s.

1. Last week US government reported that our CPI is at 8.56%. Bond markets are slowly waking up to the new reality. If the year ended today, it would be the worst in history for the US Bond Market with a loss of 8.5%. Entering the year, the 2.9% decline for bonds in 1994 was the largest ever. I expect mortgage rates to climb steadily reducing the demand for real estate.

2. Our mainstream media has been consistently wrong about their projections of inflation. They want us to believe that inflation is good for the people. They like to blame "greedy" corporations for the price increases. The latest I heard now is that it is "Putin's price hike". Interestingly, no one talks about restraining Federal Reserve's constant printing of money, which is the same as buying bonds. 

3. The largest Layer-2 scaling solution for Ethereum is Polygon. They have recently announced a partnership with KLIMA and have set aside $20 million to offset their emissions. As a 6-month-old protocol, it is a big victory for KLIMA. This legitimizes the protocol and established them as the leaders in the carbon markets. OHM protocol also chose to offset their emissions via KLIMA  up to 33,333 tons of carbon. This was passed last week.

4. We hold a big position in YGG tokens in our Portfolio. This is our exposure to the growth of the metaverse. No company dominates Metaverse games as much as YGG. Recently Meta has announced that they plan to collect 47.5% of NFT sales that happen on the Meta platform. It is absurd that they even propose this, while most of the Web 3 platforms barely charge 2 to 2.5% for NFT sales. 

5. Some of you are very nervous about the drop in the price of OHM tokens. It is important to realize that market price is the worst possible indicator for algorithmic stable coins like OlympusDAO. We are steadily compounding our supply of tokens. Our mantra is when you are compounding at a good rate, do not interrupt it unnecessarily. We currently hold 3 times more tokens than at the peak of the bull market. OHM has outperformed (323%) both Bitcoin and Ethereum in a 1-year time frame.

Have a wonderful weekend!

Sam Ikkurty