RCIF II - Five bullet Friday - Issue # 8

      All of you must have received your February statements showing a growth of 290.35% (after fees) from our fund administrator Intertrust Group. Intertrust group is responsible to process the distributions to all investors. Since we have generated significant staking income from KLON, we intend to make this distribution in the first week of April to cover for January, February and March.

   1. KLON has delivered superb returns to us in the last 7 weeks of its existence. KLON was seeking a vote to reduce the supply by 50% to 500,000 tokens. Since we already control a big percent of KLON, we were able to vote for such a plan. This vote has passed. Now KLON token is migrated to KLONX, with a new fully diluted supply. We hold 24,603 tokens of KLON. 

2. The migration to KLONX will complete by March 30th. In the meantime, both KLON and KLONX are traded on the market. Klondike finance is planning to introduce many other synthetic assets in the coming weeks. This will ensure that we keep getting positive rebases from some of the assets, while others are in negative rebases. In the past 2 weeks, kbtc has been in negative rebase and we did not generate staking income. You can see the income generated in the Retained Earnings spreadsheet here.

3. Most economies in the world are stuck with the Dollar as a currency choice, even though it is a flawed currency with massive currency debasements coming from the Federal Reserve. Ethereum and Bitcoin are too volatile as currencies to enable trade across borders. We currently have a big collection of stablecoins like Tether, USDC, SUSD, BUSD etc which are all pegged to dollars. These tokens are tradable 24/7/365, censorship-resistant but suffer from a serious disadvantage. They have no monetary sovereignty and could face regulatory burden from the US Government.

4. This allowed a new crop of tokens like Olympus DAO that are trying to create stable token that preserve the purchasing power of dollars while being stable. Each OHM token is backed by 1 DAI which is a decentralized stable coin pegged to the US Dollar. Its price can go above 1 DAI but if it goes below 1 DAI the treasury will buy all of the available OHM supply. We started buying a stake in OHM.

5. Many news outlets have reported that the current administration is planning on launching a bigger stimulus to the economy for $4 trillion dollars. This is actually very good news for the crypto markets in general.  US Government's tax revenues have dropped off a cliff. This money is not coming from our taxes but from the additional debt added to the US Treasury.  I always wondered why they collect taxes even though they can simply print as much as money as they want.

Have a wonderful weekend!