IIP-55: Data Economy Index (DATA)

[anon10525910]

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

@Thomas_Hepner

“I believe these marketplaces will transition us out of the current era of Web 2.0 data monopolies into a Web 3.0 era of open competition for data and algorithms, where both are directly monetized.”

-Fred Ehrsam, blockchain-based machine learning marketplaces (March 2018)

@Thomas_Hepner

The Index Cooperative now has two index products, DeFi Pulse Index (DPI) and Metaverse Index (MVI) that provide exposure to two on-chain industries, decentralized finance (DeFi) and the Metaverse.

It is time the Index Cooperative had an index for on-chain data economies.

@Thomas_Hepner

“Technology companies are the most valuable companies in the world…You don’t need a middleman to own your data…I think the big tech companies will be disrupted as much, if not even more, than the big banks. And considering those are the most valuable companies in the world, maybe that’s what’s worth paying attention to.”

-Fred Ehrsam, Bloomberg (March 2021)

@Thomas_Hepner

Here’s what @corbpage, Head of Product at ConsenSys Codefi, has to say about the Data Economy Index proposal:

@corbpage

The Data Economy / web3 / decentralized web has increasingly become a focus of our customers, VCs, the media, and even mainstream users (normies)… I myself believe that web3 / Data Economy represents the next big advance in the internet, after mobile, and have worked closely with the Filecoin team to make this a reality over the last few years…the DATA Index solves a real customer need that we’re seeing, and I believe will become super popular as the crypto data economy goes mainstream over the coming years.

@Thomas_Hepner

Author Background and Commitment

Thomas Hepner and Kiba Gateaux are members of a DAO, tentatively named Titans of Data , responsible for the ongoing maintenance and development of the Data Economy Index.

Thomas Hepner

• Won the Index Creative Challenge by publishing Why I Invested in the DeFi Pulse Index and Index Cooperative .
• Gold/Silver Owl (December 2020 - February 2021) ; Helped @jdcook form the Analytics Working Group.
• Creator of the ₿EST Portfolio.
• Numerai Data Scientist (2016) and Numeraire holder since 2017.
• Data Science Manager at PrecisionLender (2017 - 2021); successfully created and launched several data products now in use by some of the largest banks in the world.
• Financial Analyst, Amazon Prime & Kindle teams (2012 - 2015)

You can reach Thomas on the Index Cooperative Governance Forum (@Thomas_Hepner), Twitter, and through his blog.

Kiba Gateaux

• Prev. Full Stack Developer @ Consensys
• Gold/Silver Owl for the first three months of coop and April
• Top degen score
• Link marine since 2017
• Originally proposed DATA Index in October 2020, original concept in June 2020

Korea/China Team

Titans of Data will have dedicated members responsible for sales, marketing, and investor relations in Korea and China. Titans of Data also has connections to top Korean exchanges to get DATA listed in the country.

Voting

Decision Gate 1: TBD

Decision Gate 2: TBD

Notes

• 7/9/2021: 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.

@Thomas_Hepner

Product Differentiation

As already mentioned in the sections above, the Data Economy represents an entirely different market from DeFi and the Metaverse. DATA will be significantly differentiated as it is designed to capture data economies across blockchains. In other words, it is meant to be blockchain agnostic over the long-term. We believe that most of the value of DATA is derived from off-chain data assets. For example, the value of Numeraire (NMR) is tied to the predictive performance of the machine learning models submitted by independent data scientists to Numerai’s hedge fund. Because the value of data economy tokens are derived from off-chain data, we believe that DATA’s value over the long-run will be uncorrelated with Bitcoin, Ether, and the DeFi Pulse Index (DPI).

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

@Thomas_Hepner

As of today’s writing, the components in DPI have a combined market value of ~$26.9 billion and the components in MVI have a combined ~$4.1 billion of market value.

@Thomas_Hepner

For instance, Chainlink is the 800-pound gorilla in the room; it’s decentralized price oracles are used as infrastructure by most DeFi protocols, including Set Protocol to calculate NAV issuance.