I like the idea of a DATA index and I think there is certainly a space for something of this type in the coops portfolio. The tokenomics of Filecoin (combined with the 25%) cap mean there may be continued buying of renFIL by the DATA product as circulating supply increases and price drops. However, I’m a strong believer in keeping things simple and using a Market Cap based approach. As such I think DATA is a strong proposal.
From a product point of view I see two challenges:
Having sufficient liquidity for renFIL at all times so we can issue / redeem and rebalance. The absence of promised liquidity is a major contributor to the depreciation of CGI.
Having an understanding of the market size for such a product. How much AUM can we get?
Finally, I see no benefit in the proposed Methodologist Compensation scheme based on AUM thresholds. I fully expect many of our products to exceed $1,000,000,000 AUM in the future, and allocating 8% of INDEX supply to each methodologist will rapidly exhaust our reserves / limit our ability to offer similar packages to others.
The partnership with a fledgeling DAO further complicates the Methodologist : coop discussion (as we already have structures for large Methodologists and for community contributors).
Happy to hear you think DATA is a strong proposal!
@Kiba and I are excited to tackle these challenges and get to product-market fit (i.e. high AUM) for DATA as quickly as possible. We believe that launching and iterating quickly is essential to discovering product-market fit.
I want to emphasize the draft nature of this proposal. Neither Kiba nor I believe this will be the final agreed upon INDEX rewards schedule . It should be considered a starting reference, along with the External Methodologist Program and Community Methodologist Program, to build the foundation for a long-term win-win relationship between Titans of Data and the Index Cooperative.
Will you support DG1 for DATA index while INDEX rewards is discussed further?
Strongly support the Index and want to see it happen. It seems to me the best way forward is to table the fee discussion until after DG1 and then have that be the focal point for the pre-DG2 discussion.
Signaling my support for this proposal as I believe the decentralized data economy has significant room to expand into the future given data itself is the world’s most valuable and versatile commodity. Unfortunately to date, monetization of data has been largely captured by centralized intermediaries, and people will only become more aware of this and prefer decentralized solutions, leading to opportunities for investors/speculation. I think the DATA index would make a perfect addition to the DeFi index (DPI) and Metaverse index (MVI) as they are very different domains.
One aspect that stood out from this proposal is the selection of industry leaders within each industry vertical as data has many applications: oracles (LINK), data storage (FILE), indexing (GRT), advertising (BAT), livestreaming (LPT), tokenization (OCEAN), machine learning (NMR), VPN (OXT), prediction (REP). I think this is the right approach to take as holders of such industry leading projects who want exposure to the broader decentralized data economy (initial targeted users of this product) would be unlikely to want exposure to less adopted competitors within their vertical. I can state for at least the Chainlink community, I know that this would be the case. A broad data application index is best approach and glad to see that here, excited to see this launch in the future.
welcome to the community @ChainLinkGod only right for this topic to be the one in which u make ur index coop debut post
that said, it’s great to see ur words of encouragement on the DATA index and that u too see how much potential it has within the space! very high co-sign for this product that @Thomas_Hepner & @Kiba have been working hard in order launch
Very interesting proposal and I applaud your vision for creating a serious crypto data index and look forward to investing!
I know I’m biased but I would like to see more exposure to the transportation protocols of data in your index/thesis. IMO data monetisation doesn’t make sense unless it’s supported by a foundation of decentralised data infrastructure. I.e. a new fair data economy can’t be built on top of AWS/Google, etc. New Web3 protocols are needed to properly unshackle the world from the tech giants and the strategic choke points they occupy in Web2.
I recommend considering the Streamr Network as a candidate for inclusion in your index. It’s a decentralised, streaming multicast data delivery network with built in tools for data monetisation (via what we call Data Unions).
We also meet the criteria of your fund, high liquidity (some days >$1B trading volume). And currently standing at about $106M market cap. Awkwardly we also use the $DATA ticker so if there’s a different ticker you are considering, that would help keep things simple, but I don’t think it’s the end of the world either, just something to keep in mind. Unfortunately, after 4 years we are married to the ticker symbol.
I’m head of ecosystem at Streamr, if you’d like to jump onto a call with me, or with some of the founders, let me know. [email protected] I joined your community call, but I am a total newb when it comes to the Index Coop so I didn’t understand the fee structure discussions!