IIP-55: Data Economy Index passed Decision Gate 1 (DG1) today with overwhelming support!
It even passed quorum, though this was not a requirement as it was a DG1 vote.
What’s next for launching the DATA index? Both @kiba and myself believe that launching quickly, iterating, and relaunching again and again, is the path to discovering product-market fit and growing assets-under-vault (AUV) for DATA.
With this Midwit meme in mind, @kiba and I have communicated the following timelines to the Work Team and Business Development team.
- Final DATA IIP: Forum post on Tuesday (7/27)
- Decision Gate 2: Vote starts on Tuesday (8/3) and ends on Friday (8/6)
- Product Launch: 9/1
Before we can post the Final DATA IIP to the governance forum, the following needs to be completed:
- Work Team Analysis: @puniaviision has committed the Work Team to completing ~90% of the DATA Work Team Analysis by Thursday (7/22). The final Work Team analysis will be completed after the subsequent Methodologist Compensation negotiations (see next bullet point).
- Business Development Team: We requested that the Business Development team negotiate the Methodologist Compensation structure. @BigSky7 committed the Business Development team to negotiating with us no later than 2 days after the Work Team Analysis is completed and posted in the governance forum. We request that this negotiation be led by the Business Development team, but take place on a community call for transparency and accountability.
@kiba and myself are proposing a new fee structure for the Work Team’s consideration. We are proposing a 50 bps streaming fee with a 10 bps mint fee and a 20 bps redeem fee for the DATA index. Based on our analysis of MVI and DPI mint and redeem volumes as a share of TVL, we estimate that this fee structure will increase revenue by ~47% relative to the standard 95 bps streaming fee without sacrificing growth. See our DATA Revenue Model.
We think this will be a great way to test a new fee structure before making a major change to the Index Coop’s flagship product, DPI.
For more historical context on this proposed fee structure, check out the following conversations and comments:
- Proposal: Add 0.5% redemption fee to DeFi Pulse Index (DPI)
- @richard’s Analysis of DPI Mint/Redeem Volume
- @setoshi comments here, here, and here on issuance/redemption fees.
- @LemonadeAlpha suggestion for issuance/redemption fees.
Titans of Data is seeking the following in a mutually agreed upon Methodologist Compensation structure:
Positive-sum relationship between ourselves and other methodologists. It is of utmost importance that we have a positive-sum relationship with DeFi Pulse, as opposed to the current status quo.
Long-Term Incentive Structure: We are incentivized to keep working on DATA even if it takes years to reach $100m in AUM (hopefully not, but remember that it took BitWise 3 years to get to $100m in AUM!).
Shares risk and rewards with the Index Cooperative. We believe the Community Methodologist Program has little downside for Methodologists, but also has little upside relative to the existing Methodologist Program.
Fast time to market. Our goal is to launch DATA no later than September 1, 2021.
We hope to see a counter-proposal from the Business Development team that meets all of the above goals and is both fair and reasonable to both Titans of Data and the Index Cooperative.
We really love working with the Index Cooperative and look forward to making financial products that are accessible to all with this great community!