The $4M Illusion 🏦
A vault grows from $10M to $14M.
Looks like $4M in profit, right?
Not when investors deposited another $3M during the same period.
This is exactly the kind of problem Space and Time highlighted in its October 28 breakdown of performance fees for onchain investment vaults.
I've been watching the tokenization narrative around $ONDO and I think investors often overlook the accounting infrastructure behind these products.
Performance fees need to distinguish actual investment gains from deposits and withdrawals.
Space and Time can bring historical vault activity, valuation records, and fee parameters together, allowing supported calculations to be independently verified.
That's a much more interesting infrastructure problem than simply putting an asset onchain.
Because if finance is moving onchain, investors should be able to examine how their fees were calculated.
#Altcoin Season#
A vault grows from $10M to $14M.
Looks like $4M in profit, right?
Not when investors deposited another $3M during the same period.
This is exactly the kind of problem Space and Time highlighted in its October 28 breakdown of performance fees for onchain investment vaults.
I've been watching the tokenization narrative around $ONDO and I think investors often overlook the accounting infrastructure behind these products.
Performance fees need to distinguish actual investment gains from deposits and withdrawals.
Space and Time can bring historical vault activity, valuation records, and fee parameters together, allowing supported calculations to be independently verified.
That's a much more interesting infrastructure problem than simply putting an asset onchain.
Because if finance is moving onchain, investors should be able to examine how their fees were calculated.
#Altcoin Season#
