Massive kudos to the whole team that worked on this. In my mind, solving for compensation & community ownership in this new type of organization / digital nation we call a DAO is one of the most interesting problems there is in the world right now!
I agree with @Matthew_Graham’s take here. This proposal goes a long way towards solving community ownership, with the 22.5% distributed via airdrop + DSM, & compensation, with stipends + coordinape + bounties, but it does not solve all, and I’m not sure passing & implementing this alone leaves us with a sustainable path forward. The below should probably be its own forum post, but it is here for now.
It’s not just about redistributing $INDEX, it’s about creating value together. For $INDEX to appreciate, demand must exceed sell pressure. It is naive to think we can eliminate sell pressure by incentivizing contributors to stake all their $INDEX by giving them more $INDEX that we don’t want them to ever sell. It’s time to treat the $INDEX token as a product that we must increase demand for to survive. It’s no secret that the $INDEX token has been the neglected child here at the coop.
That said, I don’t think we should be overly reactionary, nor overly focused on the short term, but we also should not naively ignore what the market is telling us: Governance tokens are massively out of favor. “DeFi 1.0” governance tokens have taken a beating across the board since the highs of the Spring as the institutional bid never came / hasn’t come yet, and crypto-natives dumped their DeFi blue chips in favor of newer, sexier “DeFi 2.0” tokens that offer massive yields to incentivize holding.
Solutions to increase $INDEX demand
Low hanging fruit first
- Liquidity is finally being addressed!
- Messaging. The value of metagovernance is poorly understood – this is all brand new! I guarantee there are some people reading this forum post right now that have no idea that $INDEX holders wield all the governance power from the underlying tokens in the $DPI smart contract. @AcceleratedCapital has done some great work on this recently & @0xJosh’s mirror post on the topic is currently my pinned tweet
Tokenomics
- I’m not saying we should have @ncitron whip up some ponzinomics contracts just yet, but I do think the Wise Owls should commission / delegate a group to conduct a strategic review of the tokenomics models that are out there.
Whether we update ours or not, we should be making that decision from an informed position of strength, not resting on our laurels or clinging to a skeumorphic idea of tokens representing equity in a TradFi startup. Tokens give us new design space to play with, and I believe there are likely opportunities for us to use that to bootstrap growth & get that flywheel spinning.
edit: i’ve also proposed that we should have a twitter spaces series where we bring on the DeFi 2.0 hivemind to co-market $GMI & also get feedback / ideas on our tokenomics from folks at Olympus, Convex, Abracadabra, etc.