Ideas For Evolving INDEX, Products & Tokenomics In 2024

Growth
21

Great read and very interesting. I think you could probably execute multiple.

List INDEX on more CEXs (IMO is more short term value, more liquidity and potentially more price action) and have stINDEX (Long term benefit and utility), while also recognising the potential value of establishing a robust governance framework (further utility). This framework would empower a core group to actively participate in shaping the products direction. It’s important to acknowledge that active participation in governance might not appeal to everyone, and I anticipate a smaller percentage of token holders engaging in this aspect.

While I can see there is some support for PRTs, I have some reservations about PRTs. We already have a token, called INDEX. Why would we choose a specific PRT when we could make stINDEX collect fees from all funds for token holders. The majority of what you have written is about trying to create more utility and value for INDEX, and I personally think that may be difficult to achieve if you have PRTs.

You listed " * No direct engagement with the INDEX token" as one of the potential appeals, I think that actually puts INDEX at a disadvantage. Why spread value when we can concentrate it with stINDEX? While I notice some of the other advantages that you mentioned, I’m not sure it outweighs the benefits for the INDEX token with stINDEX, although I can understand this could benefit new product launches.

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22

gm, @john_wallows,

Thanks for reading and commenting.

Great to learn your thoughts.

Just briefly re “no direct engagement with $INDEX”: while clever design of stINDEX, and keeping solutions like that restricted from US Persons, is important, there still may be some potential risk (even if small) that it attracts regulatory attention and therefore the status of $INDEX. This risk may not be worth taking period, but especially given the current focus on CEXs as it’s something CEXs could be sensitive too. Ie - this could put CEX listings at risk. Perhaps focus on the CEXs for now, then think about such things later…!?

I think you’ve probably clocked that the Index Coop DAO would hold PRTs for various products via which it would receive its product revenue for those tokens.

Cheers.

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23

Incredible curation of ideas here. I’ve summarized the mechanistic models at play in order of personal preference, “1” being most preferred:

Rank Idea Model Mechanism
1 More CEX Listings and Liquidity Market Expansion Paying for listings on selected CEXs to increase INDEX token liquidity and visibility.
2 stINDEX Staking Rewards INDEX holders stake their tokens to receive a pro-rata share of DAO revenue, enhancing holding incentives.
3 Product Revenue Tokens (PRTs) Revenue Sharing Fungible tokens representing ownership in product revenue, aligning early supporter incentives with the DAO’s long-term interests through perpetual revenue share.
4 Index Product Productivity Solutions Yield Generation Offering yield on index product holdings, incentivizing both the holding of INDEX tokens and Index Coop products.
5 Using INDEX to Operate and Secure Index Protocol Protocol Utility Utilizing INDEX tokens for proposal bonds, product launches, and other protocol functions to enhance security and operational integrity.
6 Onchain Governance Governance Enhancement Evolving governance mechanisms to allow INDEX holders more direct and comprehensive control over DAO actions.
7 Burn INDEX Deflationary Pressure Using a portion of fee revenue to buy back and burn INDEX tokens, reducing supply and potentially increasing value.
8 Make Index Products Hold a Small Percentage Allocation of INDEX Demand Increase Including INDEX in index products to organically increase demand, albeit with reflexivity risks.
9 Referral Program Community Engagement Incentivizing new and existing users to promote Index Coop products, potentially increasing product adoption and INDEX utility.
10 Fee Reductions Incentive Alignment Reducing fees for holders of INDEX and products, aimed at increasing the attractiveness of holding both and encouraging product usage.
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