I’m strongly in FAVOUR of this fee split and think some of the comments here don’t appreciate two things and some of the DAOs history (that’s ok, not everyone has been around since before MVI was proposed:
When @DarkForestCapital and @verto0912 were proposing this index there was, in my mind, a lot of penny wise but not smart thinking in the DAO about methodologists - and a real logjam. I privately modeled out some scenarios at the time, thinking we should offer long-term, uncapped incentives to the proposers of MVI. As such, to cut through the confusion and goop the methodologists opted to launch the product as internal methodologists - via which they have directed quite a bit of INDEX back to the Treasury. In my mind they exhibited long-term thinking, and did us all a solid, to get our second sector index to market. I’m glad they did - it’s not just brought INDEX back to the treasury but notably added value to our brand and platform value. Simply put, they made a lot of compromises and trade offs which showed goodwill towards the DAO - instead of not doing the product or taking it elsewhere.
DFC and Verto, as much as any contributor to the DAO, have over the months contributed unbelievable value. This often involved going WAY beyond what people would think reasonable for their $/INDEX at the time. And way beyond their FT job descriptions too. They have put so much time and skin into this game - and I respect their wish to move to this new role.
Given these points - and seeing the same fee split offered to DATA (whose methodologists I respect (and who’s product I’m excited to buy) but I don’t believe have contributed as much to the DAO, who are launching later (when the Coop has more of a platform and less risk) and who also don’t yet have a major distribution capability) - I believe we should deal on this fee split for MVI. I also believe the LM investment in this product by the DAO is offset by the early stage they launched the product with us (more risk and recent failure at the time of CGI. Having another failed product at this time would have been really bad - MVI’s success really helped our momentum and perception).
I’m open to a longer-term conversation on the role of methodologists and how we engage and align, but that’s a theoretical forward facing issue - this has a lot of past issues to consider within it. I’m also open to lower fee splits for methodologists of sector basket index products in time too - as our platform scales, the fly wheel effect increases, and their success is more assured by launching with us.