IIP-55: Data Economy Index (DATA)

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).

4 Likes

Happy to hear you think DATA is a strong proposal! :smiley:

@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.

You, @verto0912, @Matthew_Graham, @BigSky7, and @trx314 have all expressed your reservations and/or disagreement with the draft INDEX rewards schedule we proposed in public or private (Discord/Zoom conversations).

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?

3 Likes

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.

Let’s make DATA happen! :robot:

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Strongly support moving this to a DG-1 vote and having fee split discussions held pre-DG 2.

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:robot: Beep boop. DG1 LG!

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@overanalyser @verto0912 @Matthew_Graham @trx314 @BigSky7 @Kiba

Details under the Fees sections were removed to provide clarity that a DG1 vote is intended to signal if DATA is a product the Index Cooperative wants to launch.

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@gregdocter @Pepperoni_Joe

Can you review the IIP and move to DG1 Snapshot vote for next Tuesday, 7/13/2021? Thank you!

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Indeed :+1: will get on it this afternoon CT

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Details under the Fees sections were removed to provide clarity that a DG1 vote is intended to signal if DATA is a product the Index Cooperative wants to launch.

sounds good!

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An IIP number has now been assigned and this will be queued up for DG1 vote on Tuesday 7/13/21, which is 7 days after this was posted as IIP-XX**

DG1 is a sentiment check and is not subject to quorum requirements.

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I like this market a lot - think @Thomas_Hepner and Kiba are the people to go after it

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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.

11 Likes

I would love to see this initiative come to fruition. I won’t repeat everything mentioned by previous replies, but it’s definitely a solid proposal with great potential.

1 Like

welcome to the community @ChainLinkGod :partying_face: only right for this topic to be the one in which u make ur index coop debut post :slight_smile:

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

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:triangular_flag_on_post: FYI – The full forum post surpasses Snapshot’s character limit.

I will be removing removing sections and adding to the top of the proposal

The full text DATA proposal exceeds Snapshot’s character count limit. Below is an abbreviated proposal. Check out this forum post to read the full proposal.

[EDIT] for example: DG2: SMI

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The-below was removed for the DG1 Snapshot vote. These removals represent what is necessary to get under the character limit.

[note on this ^ removing because acknowledges, “As already mentioned in the sections above…”]

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DG1 is now queued** on snapshot to start Tuesday 7/13/21

https://snapshot.org/#/index-coop.eth/proposal/QmSFp29qpcEnzvjr1UhciyVL7No1gMLDwnGLRjiX8448TQ

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The Community Call for the DATA index proposal takes place on Tuesday, August 3rd (8/3) at 2:00 PM PST (9:00 PM UTC) time!

Details here:

We hope to see you there!

Hey @Thomas_Hepner @Kiba

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!

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Hello @matthew.fontana - thank you for reaching out! We would would love to learn from team at STREAMR and collaborate!

I am OOO for a wedding (about to board a plane) until next Wednesday so apologies for my curt response. I’ve followed you on Twitter and will DM you there to connect.

1 Like