Would SPinvest would do with $1 Million of DFH money!

Hello SPIers, with all this recent talk and debating about the DFH (decentralized HIVE fund), I thought I'd throw an idea out there for fun to show what I would do with funding from HIVE.

What would SPinvest do with DHF funding?

Promise to build infrastructure for HIVE - NO
Promise the onboarding of new users? - NO
Promise to promote HIVE - NO
Promise to run a "do gooder" service for the community - NO

.
Promise to buy and burn HIVE each week - YES!

Im no coder, I cant build teams, I dont have the clout to onboard new members and I have little to no social media presence to promote HIVE. I can invest money and generate an income flow and this is all I would do.

Give SPinvst $1 million and we'll invest it into the defi market. It's a no-brainer and it is easy to have a spread of 5-10 LP token investments that would produce a 30-40% ROI per year on average. Through active management and investing in concentrated liquidity pools, 30-40% per year is very achievable.

We would use only coins/tokens that are ranked in the top 100 by marketcap to reduce volatility risk. If we assume the combined total of the top 100 cryptos will increase over time, we could also assume that the $1 million we invest will grow in dollar value along with the market. Because we would only use top ranked coins/tokens, we ensure the initial investment of $1 million would increase over time.

We could chase 200-300% ROI returns using tokens that are ranked out of the top 500 but our $1 million would soon be worth half, and then half again and so on.

Some hypothetical numbers

Let's be conservative and say

1/ We produce an ROI of 30% per year
2/ We use 25% of ROI to buy HIVE and burn it
3/ We reinvest the remaining ROI. If this example, its 5%
4/ Crypto prices remain frozen for 1 year

• 30% of $1 million is $300k
• 25% of $1 million is $250k
• 5% of $1 million is $50k

With $1 million invested, we would buy $250k worth of HIVE each year and reinvest $50k from the left over ROI.

• This would be roughly $4800 per week
• This would be equal to buying and burning 24k HIVE per week
• or 1.25 million HIVE a year at current prices

After 4 years of buying back at 25%, we'll have bought back over $1 million worth of HIVE and be completely freerolling. We'd still have the $1 million invested which would already be worth over $1 million because of the extra 5% reinvested each year. We would continue to buy back 25% of its value each year meaning from year 5 onwards, the project would become a net plus for HIVE and the plus would only increase over time.

Buying 24k HIVE and burning them each week might not make a massive impact but as with anything, the impact would grow and compound over time. After 10 years, the $1 million could be worth $4 million and we'd buying back $1M worth of HIVE each year. 4x in 10 years in crypto is fairly conservative as well.

What would HIVE get?

• Consistent weekly HIVE buys and burns
• Investment from community recouped (as burned HIVE) within 4 years
• Actively managed HIVE/DFH owned community fund that will increase in value along with the market
• Evergreen and sustainable for decades (assuming crypto continues to grow as an asset)

What would SPinvest get?

A 2% management fee that is paid yearly but worked out on a weekly basis

Round up

Thats it in a nutshell, thats what I would do if we got $1M from DFH. None of your fancy talk, I'd just invest it into low-risk investments and use the yield to buy HIVE and then burn the HIVE. Buy it, burn it, get it off the market, out of circulation.

Buying back $250k worth of HIVE a year might not make the price moon but I think it would be a far better use of DFH money dollar for dollar compared to many other for personal profit projects that get funded and give little to nothing back in return.

Let me know what you think of my fart thought below in the comments 😁

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Getting Rich Slowly from June 2019

Token Name	Main Account	Link to hive-engine
SPI token	@spinvest	SPI
LBI token	@lbi-token	LBI
Top XV token	@spinvest	XV
Eddie Earners	@eddie-earner	EDS
EDS miners	@eddie-earner	EDSM
EDS mini miners	@eddie-earner	EDSMM
EDS-vote	@eds-vote	n/a
EDS DOLLAR	@eds-d	EDSD
DAB token	@dailydab	DAB
DBOND token	@dailydab	DBOND
RUG token	@rugem	RUG

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