Introducing Folius Digital Group ("FDG")

Purpose and Vision

Folius Digital Group (“FDG”) is conceived as a permanent capital vehicle designed for the next phase of crypto and Web3. At its core, FDG has two purposes:

1. To compound NAV/share over the long term in public view—minimizing structural drag and maximizing the ability to reinvest at scale.
2. To set a new standard for governance and credibility in the crypto space—proving that tokenized equity can align with shareholder value and withstand scrutiny.

I founded FDG out of both financial conviction and personal mission. This industry is flooded with short-termism, scams, and weak accountability. Tokens too often represent promises that can be broken. I want to demonstrate that a crypto-native vehicle, built with strong governance and fiduciary duty, can thrive, inspire trust, and set an example. That, to me, is as satisfying as the financial upside.

Why Now: Structural Shifts in Web3

The crypto industry has moved from its early speculative phase into something more durable:

• Old Phase (2018–2024): Limited exposure options (mostly tokens and private deals), hype-driven valuations, and “spray-and-pray” VC/hedge fund models that thrived on low float and quick exits.
• Transition (2024–2025): ETFs, clearer regulation, and institutional entry broaden access. Grifters are flushed out; capital demands real businesses and value capture.
• Next Phase (2025+): Exposure now spans ETFs, treasury companies (e.g., MSTR), crypto equities (e.g., COIN), and Web3-levered businesses (e.g., HOOD, Stripe). Premiums accrue to real business models, clear governance, and compounding NAV

The implication is clear: dedicated funds are no longer enough. The next phase calls for permanent capital structures that can hold, operate, and compound esoteric Web3 assets without the artificial constraints of VC or hedge fund mandates.

Why a Permanent Capital Vehicle

FDG is structured as a listed HoldCo rather than a fund because this format solves three problems endemic to traditional structures:

• Minimizes cost drag: No “2 and 20.” FDG bears only corporate expenses and stock-based compensation. Tax-efficient compounding, liquidity, and potential NAV premium further boost returns
• Eliminates mandate distortion: Unlike VCs or hedge funds, FDG has no forced exits, no redemption pressure, no artificial IRR clocks. It can own and operate great businesses forever, fund longer turnaround arcs, and ignore short-term optics
• Enables accretive premium capture: With credible governance and esoteric Web3 exposure, FDG can command a premium to NAV. Issuing shares into that premium becomes value-accretive, accelerating NAV/share compounding, much like MicroStrategy’s playbook

This structural edge allows FDG to operate rationally across cycles and across liquidity tiers—public, private, or operating businesses.

Why Tokenization

Tokenization is not a gimmick; it is integral to FDG’s design.

• Day-1 listed equity: Compounding in public view builds reputation and transparency from the start.
• Governance credibility: In a landscape where tokens are often weak promises, tokenized equity backed by enforceable fiduciary duty stands apart. This credibility itself commands a premium.
• Personal mission: I want to prove that tokens can uphold shareholder value and governance. Being the example, in an industry rife with scams, is both strategically valuable and personally fulfilling.
• Frontier optionality: Tokenization allows FDG to experiment with airdrops, DeFi integrations, token-gated ecosystems, and other distribution channels unavailable to traditional equities. This frontier edge matters in a global, crypto-native investor base

In short, tokenization allows FDG to combine the discipline of public equities with the creativity of Web3.

Differentiation

FDG is the only crypto-native capital vehicle that combines:

1. Public access to esoteric Web3 exposure—from tokens to operating businesses, otherwise inaccessible to most.
2. Strong stakeholder protection and governance—structured as equity with fiduciary duty, not as unenforceable token promises.
3. Accretive NAV premium capture—by issuing shares at premium valuations to grow NAV/share faster

This makes FDG fundamentally different from crypto hedge funds, VC funds, or even treasury companies like MSTR.

Path to Liquidity

FDG’s roadmap to liquidity is pragmatic and staged:

• Legacy Path (tokens): Simple issuance, but plagued by rights ambiguities and limited liquidity.
• Alternative Path (RTO/direct listing): Viable, but costly and premature at FDG’s current size.
• New Path (tokenized shares on AMMs): The most viable near-term route. Precedent exists (Exodus, Robinhood CFDs, Fidelity & Apollo tokenized funds). SEC leadership is open to innovative exemptions. Infrastructure is maturing (transfer agents, Securitize, Superstate).

This path grants crypto-native investors access to tokenized equity with full governance rights—a rare asset with unambiguous value capture

Investment Strategy

FDG will pursue a hybrid strategy across passive and active opportunities:

• Passive: liquid token assets, liquid equities, private assets—carefully selected for high conviction, compounding potential.
• Active: building or majority-acquiring operating businesses with high ROIC and pricing power (e.g., staking, DePIN, services, analytics). These create continuous NAV compounding and help FDG maintain operating company status (critical for regulatory positioning)

The strategy is deliberately unconstrained: FDG can invest across the liquidity spectrum, operate businesses, and arbitrage its public premium when advantageous.

Why I Am Doing This

FDG is more than a vehicle—it is a statement:

• Against scams and weak governance: I want to show that crypto can produce institutions with integrity.
• For compounding in public: Transparency and track record matter; building reputation in real time is powerful.
• To inspire others: If FDG succeeds, it sets a blueprint for others. It demonstrates that governance, NAV discipline, and tokenization can coexist.

I want to build a Web3-native compounding machine -- similar to how Warran built Berkshire, or how Mark built Constellation, but with tools only possible in this era—tokenization, DeFi, global distribution. This is not only financially rewarding, but also personally meaningful.

Conclusion

FDG exists to prove that permanent capital, tokenization, and disciplined governance can converge into a new model of crypto-native investing. It is designed to:

• Compound NAV/share over decades.
• Capture accretive premiums through credible governance.
• Inspire the industry by being the counterexample to scams.
• Unlock frontier optionality through tokenization.

The combination is rare. The timing is right. The mission is personal.