# IIP-86 MVI Fee Split Proposal **URL:** \ **Category:** Proposal\ **Tags:** IIP\ **Created:** [13 September 2021 15:40 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645 "2021-09-13T15:40:42Z")\ **Posts on this page:** 13\ **Page:** 2
**Author:** ![BigSky7](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/bigsky7/32/2629_2.png) [@BigSky7](https://gov.indexcoop.com/u/BigSky7)\ **Post date:** [30 September 2021 23:15 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/21 "2021-09-30T23:15:21Z")
Great work everyone 🚀 🚀 🚀 🚀 ---
**Author:** ![anon10525910](https://avatars.discourse-cdn.com/v4/letter/a/97f17d/32.png) [@anon10525910](https://gov.indexcoop.com/u/anon10525910)\ **Post date:** [12 October 2021 19:44 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/22 "2021-10-12T19:44:34Z")
@dylan – Does @BigSky7 or @Mringz need to submit this to [Coop Engineering Resource Request](https://docs.google.com/forms/d/e/1FAIpQLSfunl-rhy0f6FY6jPEMiWkEArBCEiikGYjoiF6hfgcZTE6hQg/viewform) in order for this IIP to be effectuated? Trying to get this moving/executed upon. ---
**Author:** ![dylan](https://avatars.discourse-cdn.com/v4/letter/d/e95f7d/32.png) [@dylan](https://gov.indexcoop.com/u/dylan)\ **Post date:** [12 October 2021 19:50 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/23 "2021-10-12T19:50:55Z")
Yes @BigSky7 @Mringz Please submit a EWG work request via [the form above](https://forms.gle/ggsHnkhbTNYAfUKh8). EWG can’t keep track of all requests on the forum/discord etc… so if something needs to be done you guys need to bring it to us (via the form above) ---
**Author:** ![DarkForestCapital](https://avatars.discourse-cdn.com/v4/letter/d/d6d6ee/32.png) [@DarkForestCapital](https://gov.indexcoop.com/u/DarkForestCapital)\ **Post date:** [12 October 2021 20:17 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/24 "2021-10-12T20:17:40Z")
We’ve raised a request through Cavalier and @ncitron is working on it I believe. ---
**Author:** ![DarkForestCapital](https://avatars.discourse-cdn.com/v4/letter/d/d6d6ee/32.png) [@DarkForestCapital](https://gov.indexcoop.com/u/DarkForestCapital)\ **Post date:** [23 October 2021 23:12 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/25 "2021-10-23T23:12:59Z")
Just making a note here that as part of the switch over, I’ve asked that the Coop claims all tokens from my vesting contract (both vested and unvested), making a note of how many vested tokens were outstanding to be paid back at a later date. This helps me to avoid a large tax liability and further price risk due to no current process for the treasury to buy back tokens as set out in [IIP-36](https://gov.indexcoop.com/t/iip-36-full-time-contributor-retention/1021) (tax in UK is due at price of claim). The contracts are not built to enable clawback without outstanding tokens being claimed, so this is a simple solution to avoid a forced claim. The treasury have been notified and will pick it up as part of normal reporting. The responsibility for requesting the transfer at a future date falls to me and this note will act as record that this was agreed with the Funding Council (Dylan, Joe and Greg). This only applies to my contract. ---
**Author:** ![0xModene](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/0xmodene/32/3070_2.png) [@0xModene](https://gov.indexcoop.com/u/0xModene)\ **Post date:** [25 October 2021 13:54 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/26 "2021-10-25T13:54:42Z")
> [@DarkForestCapital](#): > > The contracts are not built to enable clawback without outstanding tokens being claimed, so this is a simple solution to avoid a forced claim. hmm… this could be changed for the future. Thanks for that ---
**Author:** ![Matthew\_Graham](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/matthew_graham/32/1336_2.png) [@Matthew\_Graham](https://gov.indexcoop.com/u/Matthew_Graham)\ **Post date:** [26 October 2021 09:52 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/27 "2021-10-26T09:52:09Z")
Hi @DarkForestCapital @BigSky7 @dylan With regards to the fee split: Can we confirm if 70/30 is before or after on-chain costs ? It would be great to know what was discussed with regard to on-chain costs. I believe it is a significant cost relative to the AUM and thus is significant in terms of the product’s profitability. Perhaps there is a commitment somewhere to socialise these costs into the product and this is a mute point? ---
**Author:** ![BigSky7](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/bigsky7/32/2629_2.png) [@BigSky7](https://gov.indexcoop.com/u/BigSky7)\ **Post date:** [26 October 2021 22:09 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/28 "2021-10-26T22:09:07Z")
As laid out in the above proposal - this agreement was reached based on the precedent set by DPI, and DATA. These indexes use a pre-gas fee split. Which is what was agreed upon with the methodologist for MVI. Your question leads to a much bigger question - how do we effectively socialize gas costs between Index Coop \<\> Set Labs \<\> Methodologists? In our current system, each separate organization is incentivized to pass on gas costs to the others. It seems clear that gas costs should be born equally across all parties that are launching an index. With that said we need to take steps to ensure that launching indexes is not prohibitively expensive for our partners (especially smaller teams). We should strive to make Index Coop as methodologist friendly as possible while still ensuring that everyone is bearing a fair share of the costs. Super open to any ideas on how best to do this. ---
**Author:** ![Thomas\_Hepner](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/thomas_hepner/32/111_2.png) [@Thomas\_Hepner](https://gov.indexcoop.com/u/Thomas_Hepner)\ **Post date:** [27 October 2021 05:06 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/29 "2021-10-27T05:06:46Z")
> [@BigSky7](#): > > Your question leads to a much bigger question - how do we effectively socialize gas costs between Index Coop \<\> Set Labs \<\> Methodologists? Still think @Matthew_Graham has had the best suggestion - gas costs for rebalances should be borne by index holders once a given TVL threshold has been reached. My understanding was this was in the EWG backlog. @Cavalier_Eth @dylan ---
**Author:** ![DarkForestCapital](https://avatars.discourse-cdn.com/v4/letter/d/d6d6ee/32.png) [@DarkForestCapital](https://gov.indexcoop.com/u/DarkForestCapital)\ **Post date:** [28 October 2021 16:47 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/30 "2021-10-28T16:47:26Z")
Index product holders or $Index token holders? And TVL for the Coop or that specific product? If there is a convo somewhere in the Coop Discord let me know and I’ll take a look! ---
**Author:** ![Thomas\_Hepner](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/thomas_hepner/32/111_2.png) [@Thomas\_Hepner](https://gov.indexcoop.com/u/Thomas_Hepner)\ **Post date:** [28 October 2021 20:20 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/31 "2021-10-28T20:20:08Z")
Index product holders (DPI, DATA, MVI, etc). The idea of an index is that transaction costs are spread across holders of that product, not entirely paid for by a separate entity. I remember @Matthew_Graham describing on a call and with me in a Discord group, but don’t think it’s anywhere on forum. ---
**Author:** ![Cavalier\_Eth](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/cavalier_eth/32/1873_2.png) [@Cavalier\_Eth](https://gov.indexcoop.com/u/Cavalier_Eth)\ **Post date:** [29 October 2021 01:18 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/32 "2021-10-29T01:18:55Z")
I don’t want to side-track this post, but flagging that gas costs will be a factor in the future fee split conversations, as well as the profitability calculations of our products. We want to enable products to launch and grow into their markets, while making gas costs transparent and part of the ongoing decision-making by IC and methodologists. Tactically, PWG is currently contributing to the fee split framework development, and EWG is building a rebalance cost estimator. ---
**Author:** ![dylan](https://avatars.discourse-cdn.com/v4/letter/d/e95f7d/32.png) [@dylan](https://gov.indexcoop.com/u/dylan)\ **Post date:** [29 October 2021 22:55 UTC](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645/33 "2021-10-29T22:55:57Z")
This IIP has been executed. Execution doc with related transactions can be found here: > **[IIP-86 MVI Fee Updates](https://docs.google.com/document/d/1Cb2r-hh4VZpzyKPxqixG0kdBocDqaR4PCc4Hfq8UJOI/edit)** > > IIP-86 MVI Fee Updates With the passing of IIP-86, DFC and Verto will move from community methodologists to external methodologists. This requires that they receive a 30% fee split of MVI’s revenue, and have their FTC vesting contract funds clawed... [Previous page](https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645.md?page=1)