The price is important, it impacts the growth rate and scaling of DNotes in a significant way. Stabilizing the growth trajectory is an important factor in our upcoming upgrades. If DNotes was, for instance, consistently a dollar, it would give us the fuel and we could more rapidly deploy the DNotes strategy and continue to the growth from there. However, as you said it's much more important over the longer term, rather than over the short term. The price of DNotes is 300+% higher than it was a year ago, that could go down, that could go up, only the open market can determine that.
Yes! This is exactly what I'm driving at. I don't want this Board to misunderstand me. In the case of DNotes, I certainly hold with Zuckerberg "I'm here to build something for the long-term. Anything else is secondary." The long-term is the core of Bezos' RMF I mentioned above. Alan has the capability to see around the corner. And it's great to see such a solid team driving towards a long-term strategic vision. That's rare in Crypto, as we all know.
But here is my deep point about focusing on price at levels other that the 10-year, 30,000 foot view. It's not an exact analogy, but I think there are a some really fantastic similarities to the way DNotes and DNotes Global has been structured, and how Berkshire Hathaway kickstarted its otherworldly success in the 60s. It all has to do with a concept called float.
Here is a description of float from a book called the Warren Buffett way:
"In addition to department stores, Diversified Retailing owned a company called Blue Chip Stamps, which provided supermarkets and gasoline stations with trading stamps to give to their customers. Stamps were collected into books and in turn exchanged for merchandise. To purchase the merchandise, the supermarkets and gasoline created a pool of money, or float, which Blue Chip Stamps managed. In the late 1960s Blue Chip Stamps had a float of more than $60 million in unredeemed stamps. This float ultimately allowed Buffett to purchase other businesses including a candy company, a newspaper, and a savings and loan."Basically, Buffett was able to produce amazing Returns on Capital by leveraging compounding through what is called the Homeostatic Business Model. Here is how Alice Schroeder, the author of Snowball (the only authorized biography of Buffett), put it:
"But in the bigger picture, what Berkshire, Diversified, and Blue Chip [the latter two were eventually merged into Berkshire] really possessed were two things. The first was the homeostatic business model--the idea of grafting float onto a holding company so that it could respond internally to the changing environment. The second was the power of compounding, as float and investments doubled and redoubled over time. The novelty and strength of Berkshire's model cannot be overstated. Nothing like it existed, or would for years to come. 'That was the golden period of textbook capital allocation,' Buffet says".
I see DNotes 2.0 as a kind of float. Which can then be used to further invest in the ecosystem. In Buffett's case when starting up his models with Berkshire, he bought See's Candies. For DNotes, it might be investment in CryptoMoms to take that to the next level. Or whatever it is.
But if NOTE continues to decline in the near-term, there is a lot less float with which to supercharge NOTE 2.0 environmental element. And as you say, nobody knows the machinations of the markets. They will do what they do. So does NOTE pop on 2.0 release? Likely, but also maybe not. Which again then means less float for development. So, near-term price does matter. And I'm glad you see that.
Tactically, this is where my critique of the eye-popping numbers fits in. It psychologically primes NOTE newcomers to confusion, because of the disconnect between right-now price downturns and starry-eyed 10 year out projections. Most folks can't readily cognize that kind of vision.
Idk, that make any sense?
Firstly, I love the quote from Zuckerberg:
"I'm here to build for the long-term. Anything else is secondary." It was in part this mantra, and focus on strategy to achieve the long-term goals that I detected in the early DNotes community forum that led to my direct involvement.
I also really like the business acumen you're referencing in compounding growth of an ecosystem. I haven't read snowball, but I have decided to now read it.
It is a great feature of this forum that the main focus isn't 24/7 about what the price is doing as is common in other forums that are heavily dominated by near-term price speculation. Chase's compounding interest example was helpful in some senses -- crypto is very volatile in low-liquidity markets that can mean rapid gains for holders well in excess of the interest earned, and this in turn compounds the earnings from interest paid out from the blockchain in 2.0 even further. But in respect to a high value price point, it's likely the market price would be much more stable, and I would guess that a lot more of the gains would come straight from interest rewards the higher the price went. I think the illustration is helpful from a potential future visualisation of the dollar-denominated interest that could earn in a 'more fixed' and higher liquidity market, and we all know what has happened to many crypto in this industry once the market discovers them. Of course nobody knows what will happen with the DNotes price, but over the long-term we are very confident.
The float concept is a great mention to compound and grow a business, and DNotes currency will likely play a significant role in funding expansion of DNotes' ecosystem, which has been designed to syngergistically and internally compound growth into all the parts of its inter-connected system. That said, for the moment, and up to this point, the DNotes ecosystem has been 100% paid for by its co-founders. This has meant significant outlays both monetary, and even more so in time and experience (and just imagine what Alan could charge as a private consultant, or CEO of a large company?). This is the investment and effort that kickstarts the ecosystem (lest chicken/egg scenario).
The float will be one of the potential tools used to grow the system going forward, but all of the pieces in the engine need to move in alignment for the system to be ready to rapidly scale. In lieu of the DNotes 2.0 upgrade completion (which includes a DNotes Vault revamp), we are not yet spending big on advertising to make our plans known to everyday and institutional investors. Once DNotes 2.0 is complete, the other parts of the engine will rev into gear, and the engine will turn on to create a self-sustaining model for growth. This will mean more attention for DNotes, and likely a higher price at the market, which then compounds investment internally in the ecosystem (higher intrinsic value), which can lead again to higher prices, and more investment in development. The float and the business work in unison to build up the other, but unlike most ICOs, the engine must be completed and turned on before it can begin to propel the vehicle forward. Before the engine turns on, it is entirely funded by its creators.
