Insula Bulletin August ‘21
The summer was a long season full of uncertainty. Are we truly on the verge of a “supercycle”? Will Bitcoin’s May drop cut the entire bull run short? Only time will tell, but there seem to be indications that the market is rebounding and finding its feet again.
In August, the bulls came back to town, and investor morale ballooned.
Several tokens reached new all-time highs, and there’s hope the next several months will bring huge gains for projects all across the crypto-sphere. Back home at Insula headquarters, the team was hard at work. In this month’s newsletter, we’ll take a look at news that dropped in August and peek at what’s to come.
Here’s what’s on the agenda for this month’s bulletin:
- We’ll start with a recap of news from the past month.
- Then, we’ll take a closer look at the recent $ISLA token burn.
- Finally, before signing off, we’ll check in with the Insula Armada.
Let’s dive in!
A Look Back at August
Let’s take a look at some of the news that dropped this past month.
Here are a few of the topics that will be explored during this conference:
- By 2030: how the blockchain will have imposed itself in the back office
- Decentralized finance: new investment opportunities
- Private markets: How to access valuable opportunities?
Anyone interested in setting up a face-to-face meeting with the Insula team while they’re in Geneva is invited to reach out to request an appointment.
Happy Birthday, Malta Fund!
This month, Insula’s Malta Fund celebrated its first birthday!
As of its first birthday, the fund was up an impressive 415.8%.
Burn, Baby, Burn!
Big news this month is that Insula’s most recent token burn occurred on September 1st.
Every month Insula’s funds are in profit, half of the fund performance fee is used to purchase $ISLA from the open market and then destroy it forever.
Let’s take a closer look at exactly how the buyback and burn mechanism works and why it’s so exciting for token holders.
First things first, what is a token burn?
Let’s let the folks at Coinmarketcap.com take this one:
Token burning is usually performed by the development team behind a particular cryptocurrency asset. It can be done in several ways, most commonly by sending the coins to a so-called “eater address”: its current balance is publicly visible on the blockchain, but access to its contents is unavailable to anyone.
Insula destroys tokens by sending them to the “burn address” (0x000…). These tokens are removed from the supply forever. Since all Insula tokens have already been created and no additional ones will ever be minted, burns make $ISLA a deflationary token.
When are tokens burned?
Every month that Insula’s funds are in profit, half of the performance fees collected from Insula’s Pala fund are used to purchase $ISLA from the open market and then destroy it. Currently, only fees from the Insula Pala fund are eligible for burns, but more funds will be included soon.
How many tokens are destroyed each burn?
It depends. If Pala is not in profit, no tokens are burned for that month. If the fund is in profit, half of the performance fee is used to buyback $ISLA and burn it.
How does a token burn affect my $ISLA?
This is a simple case of supply and demand. As the total number of $ISLA decreases, existing tokens become more valuable. Insula’s buyback and burn mechanism rewards long term token holders by pushing up the price of $ISLA.
Wait, if we’re burning $ISLA every month, what happens when the total number of tokens reaches zero?
This is very, very unlikely to ever happen. The amount of $ISLA burned each month is tied to a FIAT value. It is important to know that $ISLA is divisible to 18 decimal places, meaning that it is possible to split a single token into 0.000,000,000,000,000,001 parts.
This means that if 1 $ISLA is more expensive than the FIAT value of performance fees earmarked for burns, only a portion of a single $ISLA token would need to be burned.
Theoretically, the entire Insula ecosystem could operate perfectly well with less than a single token in existence.
The Insula Armada
In case you missed it, Insula launched a brand new community initiative in August, the Insula Armada!
The Insula Armada exists to help spread the word about $ISLA on social media. Community members are invited to tweet, post, and share on their social media platform(s) of choice. Contributions are tallied, and the most active participants receive a reward in $ISLA.
For those who participated in August, thanks so much for your service! Submissions will be submitted to the team this coming week, and rewards will be going out soon.
The initiative will be running again in September, and there will be another 500 $ISLA up for grabs.
Everyone is welcome to take part. If you’d like to participate, hop on over to the Insula Armada Telegram channel. There, you’ll find more information and guidelines for how to get started.
That’s it for this month! We’ll be back again with more at the end of September.
Insula Investment Management provides crypto investors with blockchain-based crypto funds that offer risk-adjusted returns and self-custody. We are focused on providing portfolio diversification within the cryptocurrency market, and we provide investment services to professional investors. Retail investors can also participate in the Insula ecosystem by purchasing $ISLA.