Dear #29ers,

I see some of you are questioning a raise here and/or how it was placed. Here’s how we’re thinking about it:

1) Today is a totally different world for early-rev financing (non AI), despite ETF driven large cap flow. I’ve been at this +10yrs, its clearly different 2) last year we were strung along by multiple institutions and had less and less leverage as time went on, so we ultimately had to revert to lower order plans (while me and others personally loaned and funded the company to hold off dilution)

Overtime thoughts: a quick story of my profile picture background & relation to smarter markets

Everything is Energy (& Information)

Yesterday I was refining my bits & atoms thesis with Jeff Currie in Abu Dhabi. My underlying macro thesis (that drove me to found Abaxx) is… …that we’re in a volatile phase transition of two societal level transformations.

1) The supply & demand networks (& business models) that drive the production & distribution of energy & power (atoms); and

The effects of dominating, unmanaged externalities define modern world.

I don’t just mean economic negative environmental-externalities, but also(related) ill-regulated positive externalities—network effects—found in monopoly & centralized, over-scaled governance structures
🆔++ Mass energy-leverage (industrialization), mass-information (1-to-many, many-to-1 comms) & weapons of mass destruction(1-to-many, many-to-1 violence) create asymmetry in externality sharing (positive & negative)
Solution:
a)identify root asymmetries
b)seek natural system balancing

We’re in prisoner’s dilemma stage. Game it out, only *exogenous* deflation can keep system afloat.

To fight inflation, Fed pays interest on bank reserves. 3 ways to pay:
*Sell Assets (price ↘️)
*Treasury (more debt,↘️)
*Print

Irrational 0% depositor NIM required to keep solvent

https://twitter.com/davidsacks/status/1636885176671141890

The root logic, “inception” of monetary stimulus in pure fiat world is the irrational behaviour of wage-earning depositor (floats with sticky nominal wage & negative-real bank deposit).

Therefore always a game of prisoner manipulation; creates inequality for those who know game