Title: DATA Methodologist Fee Split Offer
Author: @BigSky7
Created: 8/5/2021
Situation
The DATA Economy Index has officially passed DG1. Before going to DG2 and officially launching this product, the Index Coop community and the DATA methodologists agree on an equitable fee split.
This post lays out the official fee split offer from Index Coop to the DATA Methodologists. The BD WG is tasked with coordinating with external partners. However, the cross-functional nature of this discussion requires inputs from several key stakeholders across the DAO, including Product, Growth, and Treasury. To reach this final offer, we have engaged with leaders from these working groups who offer specific context.
Before laying out the official offer, we acknowledge that the current methodologist reward system is flawed and requires an eventual overhaul. The current system does not incentivize outside methodologists to support their products and is value extractive for the Coop. Creating dynamic and compelling products is vital to the growth of the protocol. To accomplish this, we need to design a long-term sustainable system for the Coop and our partners.
Fee Split Offer
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Streaming Fees (including mint and redeem fees)
- 70% Index Coop / 30% Methodologists
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Participation in Methodologist Bounty Program
This offer is based on the expected work level of support that Index Coop will require. We expect there to be significant expenditure from across the Coop to make this product a success. We are working hard to develop a standardized simple index offer and expect that future template to be closely in line with the above fee split.
The reality is that launching products with Index Coop comes with significant benefits for methodologists but also incurs large expenses to the protocol. While we will likely not be supporting this product with liquidity mining, we expect to leverage the full suite of Index Coop capabilities to make this product a massive success. Whether they are marketing efforts, business development work, or product support, these capabilities require extensive funding.
Future Road-Map:
Bottom line - we need to rethink our methodologist fee-splits, and the methodologist bounty program as that program enters its final 10 months.
Updating the fee split requires the input of all external and internal methodologists. We are in a position as a community to have this discussion. To further this discussion, we would like to layout the following road-map
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Fee split negotiations context/request for a discussion Forum post from Coop leaders NLT 20 August
- This forum post will lay the groundwork to shape our long-term discussions around how we split fees with methodologists an
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DATA to be launched under the proposed fee structure NLT Sept 1 (contingent on passing DG2)
- The above fee split is meant to speed that process and get this product in the wallets of our customers
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IIP for future methodologist fee split/reward program launched NLT 30 September
- This IIP will represent the official Index Coop, and we will not move it forward until all methodologists agree with the community about what a far long-term fee-split looks like.
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Should the IIP not move forward and Titans of Data not wish to continue with the fee split outlined, they have the right to off-board DATA from the Coop’s line-up by 30 October. (Additional option to off-board by Dec 31 added based on final negotiations.)
Next Steps
Titans of Data (@Thomas_Hepner and @Kiba ) please indicate whether you will accept or decline this offer. If this offer is accepted we can move forward to DG2.
Further discussion around fee splits and methodologist rewards will occur in the relevant channels.
