The Dash Investment Foundation recently bought its first shipment of physical gold.
On June 12 an announcement marked the launch of its Dash-to-gold rebalancing strategy before deploying to blockchain startups.
The Dash Investment Foundation (DIF), the first ownerless and memberless investment fund in the world, recently purchased physical gold on the crypto to gold trading platform @Vaultoro as part of the fund’s #Dash to #Gold rebalancing strategy. https://t.co/crPc68U5YF — Dash (@Dashpay) June 12, 2020
The strategy aims to grow the value of the capital held by the Dash Investment Foundation.
The rebalancing strategy was devised by Demelza Hays, DIF’s investment consultant.
Hays is also an alumna of Forbes 30 under 30.
“The main idea is to sell Dash for Gold when Dash breaches 50% of the portfolio and to sell Gold for Dash when Dash falls below 10% of the portfolio. This ensures a countercyclical trading strategy that sells assets high and buys assets low.”
The goal is to accumulate more Dash and more gold through rebalancing the two uncorrelated assets.
The DIF allocates 10% of the Dash block rewards through the network’s self-governing treasury system, with a mandate to make money.
It has a further mandate to support the Dash network, so these funds are distributed to blockchain startups in the form of loans or investments.
Any project can pitch for funding, which then goes through a two-stage process before being put to a final decision by masternodes.
While the capital is waiting to be deployed, the rebalancing strategy is supposed to ensure that it keeps growing. But the profits from either strategy or investment are put to the benefit of the network.
“Any money made on our investments can be used to buy Dash off of the open market, which we then burn. Burning Dash reduces the supply, and theoretically should increase the price of the Dash. This is one way the Foundation can give back to the community without having an ultimate beneficial owner.”