IIP‑194: Extension of Monthly INDEX Supply Reduction Program
Summary
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Proposal:
- Extend the Monthly INDEX Supply Reduction Program for an additional seven months sourced from the Index Coop treasury
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Quantities:
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Total: 700,000 equal to 7% of max supply
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Monthly: 100,000 equal to 1% of max supply
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Initial Reduction + Extension: 1,000,000 equal to 10% of max supply
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Schedule:
- October burn (Burn #4): Execute promptly after Snapshot close
- November burn (Burn #5): November 3rd, 2025
- December burn (Burn #6): December 2nd, 2025
- January burn (Burn #7): January 2nd, 2026
- February burn (Burn #8): February 2nd, 2026
- March burn (Burn #9): March 2nd, 2026
- April burn (Burn #10): April 1st, 2026
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Rationale: The Q3 pilot executed three burns. Quantitative results so far are inconclusive for holders. Qualitative results were more positive with anecdotal feedback from some members of the community. Liquidity and volatility remain broadly stable. Extending for three more months increases the sample size in order to further evaluate cumulative excess returns and medium-horizon outcomes more confidently.
Background
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IIP‑193 authorised a pilot from July to September 2025 to burn 100,000 INDEX per month from the Index Coop Treasury
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Burns were executed on July 1, August 1, and September 1 (Burns #1 to #3).
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Core contributors committed to a post‑pilot review and a recommendation based on market and treasury considerations
Program Details (Extension)
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Mechanism: Transfer 100,000 INDEX from the Index Coop Treasury multisig to the Ethereum mainnet burn address
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Quantum: Fixed 100,000 INDEX per month, equal to 1% of max supply
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Cadence: Initial burn after successful snapshot vote followed by six consecutive burns on the first working day of each month thereafter
Extension Rationale
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Evidence to date: After three burns, cumulative excess return signals are mixed and not reliably positive. However there were anecdotal reports of positive feedback from the wider community. Liquidity and volatility readings are broadly stable with variation across supply reduction events.
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Why extend: Three additional monthly observations improve statistical power on cumulative measures and medium‑horizon effects while keeping scope and cost limited and simple.
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Trade‑offs: Burning reduces treasury optionality. However there are currently 2,400,000 INDEX tokens in the treasury reducing to 1,700,000 which is not considered excessive and therefore maintains future optionality.
Timeline (UTC)
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Forum post: October 7, 2025
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Snapshot: Opens 24hrs from forum posting with a 48-hour voting window
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If “FOR” passes:
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October burn (Burn #4): Execute promptly after Snapshot close
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November burn (Burn #5): November 3rd, 2025
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December burn (Burn #6): December 2nd, 2025
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January burn (Burn #7): January 2nd, 2026
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February burn (Burn #8): February 2nd, 2026
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March burn (Burn #9): March 2nd, 2026
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April burn (Burn #10): April 1st, 2026
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Post‑program review: Early April 2026, target by April 15, 2026. The review will include an updated event‑study, cumulative excess returns analysis, liquidity and microstructure metrics, and a treasury cost‑benefit summary.
Specification / Execution
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Source of funds: INDEX held in the Index Coop Treasury multisig
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Action: On each scheduled date (or after Snapshot closes for October), transfer 100,000 INDEX to the burn address to permanently remove it from supply
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Communications: Final review post in mid April 2026
Voting
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FOR — Extend the Monthly INDEX Supply Reduction Program for seven months (October 2025 to April 2026), burning 100,000 INDEX per month from the Treasury. October burn occurs after the 48‑hour Snapshot. Publish a review in April 2026.
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AGAINST — Do not extend. The program ends after the Q3 2025 pilot.