Hi @Mringz, we’re ready to go ahead with DG1 for MCAP, would you be able to help schedule a snapshot vote for Monday? Thanks
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Dear catjam & WTA,
Thanks for the thoughtful review.
We’ll test the market demand before we go to DG2. The general question of whether there’s a market for ‘tradfi clones’ (ie, small cap, growth, target date, etc) is an important one so it’ll be important to get a clear answer from the market research.
That’s very kind - thank you.
Have a nice weekend,
JK
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Hey @abacas
The DG1 snapshot governance vote for IIP-126: DG1 Launch the Total Crypto Market Cap Index (MCAP) is live here: Snapshot
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How are you thinking that this research might be conducted? Can we gauge interest with soon-to-be blockchain investors, rather than focusing exclusively on existing/native investors?
Product Working Group is responsible for market research so we can ask @DocHabanero to comment on the survey population.
Hi @JosephKnecht and @MrMadila,
Thank you both for your time in putting this product methodology together! We can appreciate the energy spent creating this. We’d like to echo @catjam’s comments above about how the methodologists are raising the standard in terms of competency and methodology, and we think you both have contributed greatly to the Coop.
We have elected to vote no for the time being. The reasons for this are as follows:
- Product Differentiation - As discussed in the Work Team Analysis, the overlap between this product and the BED index is substantial. Given the limited on-chain demand for BED, is it necessary or desired to create a second index that is primarily BTC/ETH with a high beta allocation to altcoins (or DeFi in the case of BED)?
- Target Users - We believe the target user of a product like this would be a crypto novice with an understanding of the benefits of passive investing. As such, we would expect that demand for something like this would primarily take place on a cheap sidechain or layer 2 as opposed to mainnet due to associated gas costs. It was noted in the comments above that this index is not very portable to other chains like Polygon, requiring a different product/methodology. Additionally, more experienced crypto investors would likely not be interested in a diversified product that is allocating to more controversial tokens such as XRP and DOGE/SHIB.
- Costs to the Coop - While the product would have infrequent rebalancing requirements and the technical work is limited, there are still financial costs to the Coop that must be considered. For example, it will be necessary to seed a liquidity pool and market the product. Given the BED index has the heft of Bankless behind it but still struggles with AUM and revenue, we feel that this could be burdensome to the Coop to maintain and promote with limited upside potential.
We understand the desire to explore more traditional style indices, and there is definitely a reason to have these as more tradfi types come into the space, but we must keep in mind our existing user base.
We would love to see resources put to use toward more experimental or innovative indices with less overlap to existing products.
Again, we appreciate the work put into this and we are excited to see a continued push to experiment.
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Thanks for your feedback. All of these are valid points which other reviewers have also noted.
As you may have seen from earlier comments we have another product concept for an ex-mega cap index called XMEGA which would be the total market cap excluding the top half by market cap, ie, excluding BTC, ETH and BNB. We could deploy that natively on Polygon. XMEGA would address the overlap with BED and the gas costs on mainnet. We think XMEGA would speak to both tradfi converts as well as defi natives looking for broad mid/small cap exposure. Feel free to let us know if that would be of interest.
From a process standpoint I’d recommend we review the new product roadmap with you to ensure it matches your priorities. Let us know if you’d welcome that.
Thanks again for your thoughtful feedback as well as your positive vote on our LAYER2 product. We’ll look forward to delivering more innovative products in the future.
JK
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Confirming that this IIP DG1 has failed with 192K INDEX (81.73%) voting AGAINST 
Snapshot here
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If you voted, then you can still pick up the POAP. Go to Snapshot again!
Update: I’ve been in contact with @AcceleratedCapital from 1kx. We agreed we’d add MCAP to our next market research survey. Based on the market research results, we’ll then make a go/no-go decision in consultation with 1kx. I think this is a great way forward. It’s also consistent with our new process to get market research prior to DG1. 
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Was this you mrvls?
Yikes, hadn’t seen that! Certainly not! I had begun to think, with the lack of wider concern and the possibility of insurance, that maybe the whole issue was overblown. But, the logic seems straightforward, and that the more that gets locked, the more worthwhile attacks become.
There’ll likely be a pretty damn fine mitigating solution but whether we’ll ever see JP Morgan, or the likes, cross-chain bridge a couple of billion is another matter.
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