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Santiago Velez

@Santiag78758327

27 Aug

A Thread on the Tax Treatments of Staking & DeFi
1/ There are many digital asset projects whose L1 offers a native digital asset to reflect utility, governance, assignment of ownership, etc. From a tax implication standpoint the main view has been primarily establishing basis.

2/ Some of the projects require that you own the digital asset in order to stake it against some network function (like committing compute resources, or having a vote on governance, etc.). The claim is typically security as a game theory solution. OK.

3/ DA creation occurs in the networks via mining (PoW), an airdrop (pre-mine), or via algorithmic interest (auto-inflation in the code). All of the above then have a secondary market of exchanges in which you can purchase the DAs brought into existence by the aforementioned.

Read 13 tweets

Santiago Velez

@Santiag78758327

18 Jul

Digital Asset Encryption is Not a Panacea for Society

1/ As a proponent of digital assets, personal privacy, encryption, and value as information, I hold in high regard the privileges afforded by digital assets. However, I don't view that regard as superseding human institutions

2/ Often times you will hear that digital encryption is an essential component on the path towards "self-sovereignty", or the ability to choose the direction of one’s own life, & being the exclusive authority over one’s own body & mind. Synonymous w/ personal freedom & liberty.

3/ In general I whole-heartedly agree w/ the principles of self-sovereignty in the context of a larger society. What does self-sovereignty mean in the context of digital assets? To me it means expressing the intrinsic human right to determine contextual value w/out being coerced.

Read 23 tweets

Santiago Velez

@Santiag78758327

24 May

Fundamentals of Interledger Protocol

1/ ILP as a standard allows the connecting of value networks (a network of networks). The networks allow for value to flow across many ledgers while preserving value (avoiding double-spend) so long as the routing table is verified / reputable

2/ The underlying architecture rests on top of accessible ledgers, like API enabled PayPal, or public permissionless blockchains like BTC. ILP enables the routing of value packets across these ledgers. ILP stacks become interoperable.

3/ Value is transferred from party A to party B via Connectors. These connectors act as market makers & have ledger wallets on each value pool. Example, Party A on Euro TARGET2 bank network, Connector has FX swap on Target2 to Paypal in the US, then ACH to party B in $.

Read 5 tweets

Santiago Velez

@Santiag78758327

22 May

The Real-Time Tragedy of Aggregation in the Age of COVID19

1/ The current health tragedy surrounding the spread of COVID19 cannot be discounted, however the real tragedy isn't the health crisis, it's the aggregation of power (both economic / political) with the virus as pretext.

2/ This thesis is clear based on 2 trends:

a. The consolidation of monetary power with "the Fed" in terms of money creation -> disintermediation of banks.

b. The destruction of global SMEs during the current supply / demand crisis to the favor of large e-commerce.

3/ Both consolidations have a common thread - digitization. In the former, the aversion to un-monitorable cash drives credit creation via CB ledger adjustments & swap lines, culminating in the CBDC issuance. In the latter, the consolidation around e-commerce supply (Amazon).

Read 20 tweets

Santiago Velez

@Santiag78758327

29 Mar

@SantiagoAuFund

1/ The End of the "Dollar Milkshake" Theory

This thread is an attempt to visualize an endgame scenario for the short dollar squeeze anticipated by Brent Johnson @SantiagoAuFund in the Dollar Milkshake Theory.

For those unfamiliar here's a good synopsis:

@APompliano

2/ The most recent layman synopsis & update can be found on @APompliano 's podcast.

podcasts.apple.com/us/podcast/251… .

To be clear this thread is NOT a dissent, like that of @LukeGromen, but instead an extrapolated opinion on how the theory may finally play out. I 100% agree w/ DMT.

3/ In short DMT assumes that the US $ will experience a historical short squeeze in relative value w/ respect to all other currencies. investopedia.com/terms/s/shorts…

The reasons for this are best explained in the above references. It's important to review the global status of the $.

Read 35 tweets

Santiago Velez

@Santiag78758327

9 Mar

A Tale of Three Countries - US, Saudi's & Russia
1/ Vladimir Putin is the quintessential kind of bond villain. Intelligent, calculating, ruthless, well trained by the KGB, patriotic, & most importantly resentful in the most technical way. He carries the fall of the Soviet Union.

2/ I firmly believe Putin learned a strong lesson from Mr. Reagan: the key to winning a war isn't guns but the starving of an economy by systemic debt. The Soviet Union collapsed from an unsustainable arms race w/ the West w/out having currency hegemony. Afghan/Chernobyl = end.

3/ The Russian people are arguably the most injured by culture of any other, sustaining greater losses than any other nation in WWII by orders of magnitude, often times at the command of their own leadership. This culture can sustain immeasurable suffering compared to the West.

Read 17 tweets

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