Hello INCOME holders!
Many of you will know that my updates for the INCOME Synergy Fund have been few and far between. But that does not mean we are not working hard! Many of the projects in the Fund continue to enjoy great success, and with the finalization of the swap from STEEM, we are in a great position to take stock of the INCOME Synergy Fund and where we stand.
I created the INCOME Synergy Fund as a way to 'invest and assist' in promising projects, the idea being that by assisting, I would improve the chances of the investment doing well. I did a sale and airdrop on STEEM for all the 'builders' who were still working away in the middle of the cryptowinter. I personally invested my own capital to get the Fund started, and continue to hold nearly 80% of the INCOME tokens.
INCOME has a current supply of 10,000 tokens, same as the initial supply. All these tokens have been sold (many of them to me), and so the market is currently operating purely on a function of current holders trading between themselves. The Fund will not release new tokens except when adding capital in excess of the calculated current ABV, so that should limit (but not close completely) the opportunities to issue additional tokens.
While I manage this project like a Fund, the INCOME Synergy Fund is completely for entertainment purposes only. The popularity of LeoFinance proves that finance is and can be entertainment. The lottery dividends that are being paid daily amount to 4 hive to 34 individual winners, and the distribution is 'anti-whale' in nature, meaning the ROI skew is naturally in favor of the small accounts, though this 'trade' has become more crowded recently.
It can be seen daily on the @ghostbanker blog. Pending on the roadmap is the complete overhaul of this post and, when its ready, moving it to the @ecoinstats account. This is the last step in the old roadmap and, when completed, I will issue a new (and exciting) roadmap.
The Fund currently has 22,594 Hive Power, 775 liquid HIVE and 46 HBD on hand. This totals 23,461 HIVE of value.
Our Hive-Engine Portfolio is also strong:
ARCHON + ARCHONM - Our SYNERGY Fund is the largest miner in the ARCHON tribe as well as being the 5th largest staker.
BRO - we hold a dragon's level of BRO, have sold above 6 and rebought below 4.5
DHEDGE - we are the third largest holder of DHEDGE, we sell at or above par and rebuy when a deep discount is available.
WORKERBEE - we have 2000 delegated to the @archonbank mining pool, and receive BEE payouts daily.
LEO - we have 6276 LEO delegated to the @brofi program.
SIM - we are holding 2.2 million SIM and receiving daily payouts for it.
LEODEX shows the current value of our HIVE-ENGINE portfolio to be valued at 30,401 HIVE
There are a few things below the main holdings, but not a ton of USD value.
dCity?
I am not going to count the value of the dCity cards in the account, even though the fund is enjoying around 9 hive/day currently from ranking rewards. I manage all of the dCity from the @ecoinstant account, and consider those to be personal assets and thus not contributive to the fund's asset value.
Hive Staked Based Income
We have a great stake in Hive SBI, over 11k units, valued at 5670 hive.
These produce a continuous stream of income, and currently power our dCity Digests posts, where we reward authors for posting about dCity. This same format with some innovation could be used to support more communities in the future.
STEEM
Yes, the fund still has a few assets on the STEEM blockchain. Currently we have 760 Steem Power and 11572 SBI, valued at 5786 STEEM, for a total value of 6546 STEEM. For purposes of the following calculations, we will evaluate 1 STEEM = 0.75 HIVE, or 6546 Steem = 4909,5 Hive.
Fund Values (in units of HIVE):
Hive and Hive Power: 23,461
Hive - Engine: 30,401
Hive SBI - 5670
Steem (combined) - 4909.5
Total: 64,441.5
Thus our estimate for Asset Backed value of each one of the 10,000 INCOME tokens is 6.444 HIVE.
I personally will be dedicating some liquidity to buying back any INCOME tokens that I consider to be too cheap for the level of entertainment they provide, or are capable of providing.
Of course, part of the entertainment is wondering how long I will take to put forward any proposed improvements on the roadmap. Much of my 'Synergy Fund Time' is spent tending to the various members of the Fund, tending to the investments as well as the projects themselves, some of whom have made me a team member, so useful was the assistance of the fund :)
From a recent post begging for hive-engine witness votes:
You'll notice many of the same names as those we hold in the Fund.
Moral Hazard?
I think on my part, I do not invest in any different strategy than from my own. My personal account is a large holder in many of these same projects, as originally conceived this fund is a way for you to 'invest with me', in an entertaining and entertainment fashion. It is a passive token that you can hold while I do all the work.
And it is a lot of work.
But from that work I usually make posts about it. The types of posts that make my family members say 'I read your blog and I don't understand anything you are saying'.
Challenges
dCity has been a big part of the funds success. Recently it has had tough times in the market, and even as I have written about it, it has fallen further still. For this reason the dCity is extremely discounted in the fund, no card values have been added, only a 'small' amount of SIM valued at these already low prices - it represents about 3% of the fund right now, with these numbers.
I still love dCity (a lot), but I am happy that I was very disciplined to take profits along the way, and never reinvest more than we had taken out.
Another challenge for INCOME token is that I am just one guy, and I know my limits. There is a limit to my capabilities, but perhaps that is part of the entertainment value! I have grown a lot both as a person as as a crypto builder since the founding of this fund, and I am more confident that ever that we are riding these waves to GREAT SUCCESS in the future, but I am fallible.
OPPORTUNITIES
Getting into the positive side now, Not just HIVE, but the projects we are invested in working with are on the cutting edge of all that is really important in our world today, including free speech, decentralization and open development, crypto-privacy and local-control. All of the positions mentioned here have major developments upcoming, all have active devs. (except, possibly, STEEM)
I have met with a local lawyer, we are still talking, but we are moving forward with the ability to be able to legally issue security tokens, which means projects such as buying land, agricultural transformation projects, eco-timber, and membership club could be right around the corner. I am a firm believer in a classic hive strategy:
Take your crypto gains, invest in real world, document, earn more crypto posting documentation on HIVE!
We have the power to change the world. This is an opportunity we have when we work together.
WILDCARD
We have one last project in the fund, that has not been mentioned here or included in the valuation, and that is @marcosdk project @radaquest. We have a large 'founders' stake of TARUK tokens, and it is yet unclear to me what the future for that project is.
What is clear is that @marcosdk is a major developer on the WAX chain, has 'moved' the project to WAX and has done many developments working with other projects on WAX. There is a chance we will be in for a great surprise one day, but there is also a chance WAX will work him to death before a game gets delivered. I don't know, but I love Marcos and support him either way - its a brutal world this blockchain universe.
Looking back.
I started INCOME valuation at 1 (hive) and went up to 1.8-2 before all were sold. I also engaged in some strategic swapping, but INCOME has remained in the 1-2.5 range for its whole life. That our ABV is 6.444 doesn't mean necessarily that the token price should be that, but it does mean we have had sustained, compound growth over the ~3 year period, (I need to dig around for some dates). And we have managed to maintain that growth over all sorts of crazy occurrences and ups and downs.
That we have paid entertaining dividends for most of this time is an even better testament to that.