Introducing FNDX Fundamentals
FNDX's pioneering actively-managed strategy FNDX Fundamentals publishes its first NAV today. We are very excited indeed. Here's why:
Not only is blockchain/Web3 the largest, fastest wealth creation opportunity in recent history, it's also the most global and the most democratic.
FNDX Fundamentals is a high-conviction, concentrated portfolio of crypto tokens that we think will disproportionately capture the massive value being unlocked in our new decentralised blockchain economy.
The Principle of Token Value Capture
FNDX Fundamentals is NOT belief-driven, not opportunistic, and not tied to any one blockchain or sector. In fact, the strategy is based on a ground-up, first principles-based thesis:
“If a project’s token mechanics are such that value created accrues to the token, the project cannot both be successful and have its price driven by speculation - only one can be true.”
And therefore as the project usage increases it is inevitable that price signal emerges from the noise of speculation.
Over time, token price becomes more correlated with usage than with trading volumes – and usage is verifiable on-chain.
The Analysis
FNDX broke down 100+ projects to identify token mechanics that did and didn't capture value. It was a fascinating dive into what makes a good blockchain-native project, and what doesn't.
The FNDX ValCap™️ Evaluation Framework
We wrote about it: The FNDX thesis (~4500 words) is available publicly here.
This exercise has left us more convinced about the inevitability of the shift to an on-chain economy than we ever were.
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