Hello: I'm Darren Tapp (汤德润) a DIF Supervisor.

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Darren

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Aug 3, 2016
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www.darrentapp.com
On another channel I received a question: What‘s the reasoning for are beginning to purchase a significant amount of RUNE?

Here's the answer I provided:

The Rune will be used to vote to add Dash as an exchange asset on THORChain once it's available. We consider THORChain to be and up-and-coming DEX. After Dash is added the Rune will be used to provide liquidity to a DASH/RUNE pair on THORChain. We expect liquidity providing to be revenue positive, although there are risks, it should outperform 50/50 exposure to DASH and RUNE.
 

Darren

Active Member
Aug 3, 2016
210
161
103
New Hampshire
www.darrentapp.com
On Reserve Management

The DIF takes an approach of keeping reserves 70%USD/30% Dash. Every month, we check what the USD to Dash ratio and if it's over 50% Dash, sell dash. If it's under 10%, Dash buy dash. Every sell or buy brings us back to 70%/30%. In July the DIF was 40% Dash and 60% USD so no balancing this month.
The DIF currently has over $300k in the bank as USD. We also have $25k owed to us which is earning interest and secured.

The DIF's strategy is algorithmic so we don't have to try to predict what the market does going forward. After approval, we don't need to spend valuable meeting time debating this item.
 

Darren

Active Member
Aug 3, 2016
210
161
103
New Hampshire
www.darrentapp.com
On international strategy

I wanted to pursue an international strategy for among other reasons:

  • I believe Dash is a project that should serve the world and not just one political jurisdiction.
  • I believe the DIF serves Dash which serves the world.
  • Multiple jurisdictions spread out political risk for the Dash project as a whole. It's a political hedge.
  • The advantages of Dash may be more apparent to regions with recent currency issues.

When supervisors investigate an investment in a country there are several considerations.

Peace index--I like to look at this, because it's hard to operate in a region at war or experiencing internal strife.
Population-- The larger the population the larger the possible impact.
Gross Domestic Product--Again larger GDP implies a larger possible impact
Political Situation--Would want to avoid regions that will nationalize in the future, or do not have legal protection of private property.
Regulatory Cost--Of course, lower costs are attractive.


I or the DIF investigated the following jurisdictions over the past year.

China--I received help from community members, identified challenges and did not find a clear path forward.
Nigeria--The DIF did spend a lot of time investigating Nigeria. It was identified as an up and coming financial hub of Africa. The DIF was investigating how to operate in Nigeria even though we identified that the poor peace index score was due to seasonal fighting in the north. The DIF quickly abandoned this investigation when the artical came out about banks being prohibited from processing crypto related payments.
Other Countries--Other countries were studied but not enough information was available to us.
Brazil--Rodrigo did introduce us to some very attractive Brazilian opportunities. We said yes to three, have completed investment in two and refused (at least) two.

The DIF also had an opportunity to invest in a US company that serves Spanish speakers. The DIF turned that down as the valuation was through the roof and the round was not structured in a way that would maximize value to investors.

Please know that a lot of research went into all these decisions. Brazil has a peace index on par with the US. Brazilian population is large 220m if I remember correctly. Brazil seems to be committed to respecting property rights as evidenced by working toward privatizing the previously nationalized oil industry. Brazil has had a few recent bouts with hyper inflation, there may still be distrust of their local currency. Regulatory costs are more in some ways, and less in others when compared to the US.

Please note that South America is very diverse. Investment in one South American company does not mean that the DIF can or will invest in every South American country.

I'm looking forward to bringing our new supervisors into our discussion.
 
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Luckymac

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I really like the post above. I love how open and creative this forum is. Im still going through lots of the threads but hope to contribute soon :)
 
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