Libya Digital Assets Sovereignty Fund DASF - White paper

A New Chapter for Libya: Embracing Digital Assets

Libya, Economy, Digital Assets

The entire white paper is accessible through this link

الورقة البيضاء مشروع الصندوق السيادي الليبي للاستثمار في الأصول الرقمية وتحقيق عوائد من ال.

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Libya’s economy remains heavily reliant on oil, which generated $18.6 billion in revenue in 2024. With production averaging 1.2 million barrels per day, dedicating just 5% of those proceeds—roughly $4.5 million daily—to a sovereign digital-assets fund (DASF) could create a powerful new investment vehicle. Using a dollar-cost averaging approach across Bitcoin, Ethereum, Solana, Cardano, and Polkadot, DASF would gradually build a diversified portfolio, mitigating price swings while capturing steady staking rewards. The Libyan Digital Assets Sovereign Fund represents an ambitious step toward diversifying national wealth and propelling the Libyan economy to the forefront of global financial developments. Despite the enormous opportunities if successful (increasing state capital, acquiring technological expertise, and attracting future investments), the project requires sound leadership and a thorough understanding of the risks inherent in digital assets. Therefore, ensuring transparency, strong governance, and adherence to well-thought-out phased plans will make the DASF a true model for how resource-rich countries can benefit from the digital age while protecting the interests of future generations.

The promise of a well performing fund is clear with a daily output averaging 1.2 million barrels, even a 5% allocation of oil proceeds—about $4.5 million per day—could power a sovereign fund dedicated to digital assets (DASF). DASF proposal adopts a dollar-cost averaging strategy across Bitcoin, Ethereum, Solana, Cardano, and Polkadot, which can smooth out market volatility while building a balanced portfolio enriched with staking yields.

Globally, major institutions are moving beyond pilot projects into full-scale crypto investments. From Abu Dhabi’s $437 million Bitcoin ETF purchase to the U.S. government creating a “Strategic Bitcoin Reserve,” digital currencies are gaining legitimacy at the highest levels. Even cautious markets like Singapore and Norway acknowledge blockchain’s transformative potential, whether through regulatory frameworks or indirect exposure. These trends underline the importance of a clear legal structure and robust governance—principles that DASF’s enabling legislation embeds via a diversified board, transparent reporting, and staged implementation.

Mathematically, steady staking returns of 5–14% per annum can generate roughly $35 million in Year 1, growing to $400 million by Year 5, before accounting for asset appreciation. Under conservative, moderate, and optimistic scenarios, DASF’s value could reach $8–25 billion by 2029. By pairing passive staking income with strategic buy-and-hold, Libya can achieve both economic diversification and a dual hedge—against oil price swings and a weakening dollar—thus securing sustainable, long-term wealth for future generations.