How do we use incentives to drive product growth?

[Thomas_Hepner]

@LemonadeAlpha

I guess my point would be that the growth of BED organically has been solid and a counterpoint to the idea that incentives are necessary to achieve a critical mass of users post launch

I don’t think it’s necessary. I do think it helps achieve this:

@Matthew_Graham

Organic growth is amazing! Slow burn organic growth is boring. We operate in a fast paced, short attention span industry. We need to go from zero to hero, fast. We need to capture market surface area, tap into every segment of the market we can and then capture as much capital as possible within that area of the market. In some ways, we minted a governance token to bootstrap a community via bootstrapping a product into success. The more market dominating products we have, the stronger we are as a community.

To me the challenge always has been, how to get from launch to domination mode. Do it once, do it again, then again, just faster and more efficient. That takes skills, planning, hustle and spend.

Of course it comes at a significant financial cost. I’m not totally convinced that it’s worth the cost vs. just “slow” organic growth over time (is 60% MoM address growth slow?!) and I don’t think @DocHabanero is either which is why he wants to run an experiment?

@LemonadeAlpha

I also just think its worth noting that BED is the only composite index that hasn’t received nor requested incentives.

Not true - Titans of Data has never requested LM incentives from Index Coop for DATA. They were offered/suggested in this post without us asking for them. This post was my first time hearing about possibility of INDEX LM incentives since post-launch.

@LemonadeAlpha

A bit unrelated but I am also wondering why DATA is being considered for something like this while BED is not and I suspect will not be - revenue would be a pretty good answer, I concede

That’s a good question. I honestly have no idea. @DocHabanero?

@LemonadeAlpha

I do think there is something lost by separating the incentive program and the launch hype.

Agree - wish we could go back in time and change this. That being said, we (Titans of Data), are planning a “2nd launch” (stay tuned!) with a video that we could strategically time simultaneously.

@LemonadeAlpha

RE: revenue, I think you’re absolutely right, but let’s not forget that BED had its fee beaten down by the madness of crowds, with many claiming outright disgust that we would charge a reasonable fee by all customer accounts.

I had no part in this decision. Based on our analyses, we believe index products that have a 10 bps mint/ 20 bps redeem fee with a 50 bps streaming fee (this could be even lower for BED) would generate ~50% more revenue and allow us to further lower streaming fees for users by generating revenue from arbitrageurs. DATA passed DG2 with this condition, but launched with standard 95 bps streaming fee due to engineering constaints. We’re still waiting to hear when this can/will be prioritized by IC.

@Thomas_Hepner

Fee Split

Data Economy Index (DATA) will have a streaming fee of 0.50% (50 basis points), a mint fee of 0.10% (10 basis points), and a redeem fee of 0.20% (20 basis points).

If I recall correctly, the idea to do 10 bps mint / 20 bps redeem may have originally been your idea or you at least inspired me.