IIP 193: Monthly INDEX Supply Reduction Program — Treasury

Monthly INDEX Supply Reduction Program — Treasury
Category: Treasury · Tokenomics
Author: @0xdunerider Reviewers: @0x_dev, @mrmadila
Date: June 5, 2025

Summary

  • Beginning July 1 2025, Index Coop will reduce the total supply of INDEX by 1.00 % (100 k INDEX) each month for three months, sourced from the IC treasury.
  • After the initial three‑month pilot period (July – September), core contributors will consult with the community and review the results before evaluating program extension into Q4 ’25.

Background

Members have asked for concrete actions demonstrating disciplined treasury management and tokenomic support. With a fixed maximum supply of 10 M INDEX, reductions to that maximum supply represent material tokenomic support.
The DAO’s long‑term plan to create value for token‑holders remains:

  1. Execute our product vision — automated re‑balancing leverage products, yield‑generating smart loops, improved distribution, and relentless focus on UI/UX to drive top‑line growth.
  2. Optimize DAO cost structure to improve operational efficiency.
  3. Return future net operating profits to INDEX holders via governance‑driven, sustainable, programmatic mechanisms.

Program Details

  1. Monthly INDEX Supply Reduction
    • 1 % of total supply (100,000 INDEX / month).
  2. Source
    • INDEX stored in the IC treasury multisig.
  3. Duration
    • July 1 – September 30 2025 (three consecutive monthly supply‑reduction events).
    • Post‑September, we’ll consult with the community, review the impact, and may extend for another three months.

Timeline

  • June 5, 2025: Forum proposal
  • June 10, 2025: IIP voting opens for ~72hrs
  • July 1 2025: First 1 % supply reduction
  • August 1 2025: Second 1 % supply reduction
  • September 1 2025: Third 1 % supply reduction
  • End of September 2025: Community consultation and program review; decide on program extension

Thank you for your support. Let’s keep driving INDEX’s long‑term success!


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