Welcome!

Dear Network:

Happy new  year!

The DIF is requesting supplemental funds to take advantage of investment opportunities as they came up. The DIF has set aside RUNE for liquidity providing when Dash is integrated on THORChain. In our DIF discussions there was some question about how we would proceed with liquidity providing. We considered two options.

A) Provide an equivalent (USD) amount of dash with the RUNE when providing liquidity.
B) Provide $100k worth of DASH with $100k of RUNE to start providing liquidity. After that we could bleed in any remaining RUNE to the liquidity pool over time.

Darren proposed option B. Other supervisors convinced Darren that option A is very attractive. Two reasons that A is so attractive include:

*  The yield on liquidity providing is significant.
*  Dash allocated to this task could be recalled if needed.

Going with option A would mean the DIF should expect an outlay of DASH dependent on the price of RUNE in the future.
I expect reserves currently can handle this outlay, this proposal will provide for replacement of that near term expense.

Please note that the coding of the DASH bridge for THORChain was forked from the DOGE bridge. As such we expect DOGE will be added before DASH. I understand that THORChain developers do want to add DASH after the DOGE bridge is tested and live.

Another near term expense includes our annual payment to each director and secretary. There are two directors that charge $20k/year. The secretary (which is a Cayman company) charges $12k/year. In total this is around a $52k expense. This is the cost of keeping the lights on. The directors handle all the paperwork associated with keeping the DIF as a stand alone entity in good standing. They also provide initial legal and accounting advice related to DIF operations.  There are periods when supervisors communicate with directors several times a week. They have always been very responsive.

--Darren