THE community call has been scheduled for tomorrow (Weds 3rd Nov) at 17:00 UTC and is in the coop calendar.
DAO Revolution Community call
Wednesday, November 3 · 5:00 – 6:00pm (UTC)
Google Meet joining info
Video call link: https://meet.google.com/fev-knmy-vwp
Or dial: (GB) +44 20 3956 2868 PIN: 934 767 693#
More phone numbers: https://tel.meet/fev-knmy-vwp?pin=2027377515442
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Recording can be found here:
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Hi Everyone, we’re kicking off the initial WTA for this project next Tuesday and will allow the methodologist some time to review and make adjustments. We’ll announce when we prepare for DG1.
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Posting the Work Team Analysis results for the DAO Revolution Index (DRI). Work team analysis was done by @Abel, @DocHabanero, @jdcook, and myself.
Link: DRI_Product Scoring Chart - Google Sheets
Thank you for your proposal to the Index Cooperative community! Ahead of a Decision Gate 1 (DG1) vote for a proposed methodology, the Work Team scores the product based on a rubric put in place during Q2 2021. The team met and compiled the feedback below. The pre-DG1 scoring/feedback aims to help improve product proposals.
Overall Scoring: 1.41*
Market Opportunity: 2.88
- The proposed product is sufficiently differentiated from other index products in the market. DAO token exposure would be a worthwhile addition to one’s portfolio. It was judged to be a nice-to-have today.
- Note: there is meaningful overlap with another product proposal in the Index Coop pipeline (Forefront Social Token Index), with close to 40% of the same tokens. We assess differentiation relative to competing products in the market, but this is something the community should be aware of.
- The market opportunity today (and we score products on the market opportunity today, not on an expected future state) was not deemed to be large.
- In the post, the DAOist states: “The biggest opportunity here is having DAOs actually hold this index product in their treasury - this would give them easy financial exposure to some of their collaborators (easy = without needing to engage in direct token swaps, shared pools etc) as well as financial exposure to infrastructure that many DAOs use. There is a growing focus on treasury diversification for DAOs, and this would be a compelling opportunity.”
- We would like to see more validation for such a claim.
- Further, the post states, “This product will also appeal to retail investors who have no exposure to any DAOs but desire access to the sector, as well as DAOists who are active in a few DAOs but would like broader exposure to the entire sector without having to join new DAOs and add to their workload.”
- One suggestion during our discussion was for the DAOist to survey retail users (we’d like to weigh in on the questions) to better assess latent demand.
- Also: “The initial ten components of (DAOs) represent approximately $1.3 billion in market value. Given that MVI, DPI, and DATA each represent multiple billions in market value, (DAOs) can be seen as the “small cap growth index” offering, similar to Vanguard’s VBK or iShares’ IWO.”
- Agreed that this space may represent a higher growth opportunity but the size of the market today (especially when weighed against the penetration rate of MVI, DPI, and DATA in much larger markets), gave us pause that the product would be able to achieve an attract TVL within Year 1. This doesn’t rule out launching the product, but we did not (yet) have enough reason to assess this as a large market opportunity today.
Revenue Structure: 2.75
- The 50bps streaming fee is paired with a 10bps mint and a 20bps redeem fee. The split would be 70/30 Index Coop/DAOist. Without data to show the impact of mint/redeem activity, we ballparked the fee as being in the vicinity of DPI (the default for a 3).
Methodologist: 2.75
- The DAOist plans to use its relationships with the component DAOs to bootstrap some of the initial tokens, with each project contributing to an initial Gnosis safe. Further, they plan on marketing initiatives with these projects. The working team appreciated the effort so gave partial credit on the marketing front. Assuming the product passes DG1 and goes up for another WTA scoring, to receive full credit, the Work Team would like to see some actual hard commitments from the DAOs and fuller plans on how the marketing coordination will function. In particular, the concept of all protocols contributing makes sense but is operationally difficult to achieve.
- Relative to existing methodologists DeFi Pulse and Bankless, the DAOist is newer and less well known in the market and has a smaller follower base. As a result, while we did give credit for competence in the vertical, we didn’t provide a point for reputation:
- DeFi Pulse: 147k
- Bankless: 138k
- DAOist: 4k
- The proposed methodology shows a willingness to partner with the Index Cooperative. The methodologist team has taken feedback from the IC Product Working Group. We were, however, concerned that the liquidity aspects of the methodology were not stringent enough, particularly if the product to become $50mm TVL in Year 1 (a rough guidepost for a successful product), so a more in-depth analysis with support from the IC Liquidity Pod would be informative to ensure the envisioned product can be rebalanced effectively at relatively attractive TVL levels.
Financial Costs: 3.00
- Our understanding is that the pool will require liquidity provided primarily by the IC.
- No liquidity mining incentives were stated in the proposal.
Operational Costs: 2.25
- Our understanding is that the product will require no more than monthly rebalancing.
Technical Costs: 1.00
- This product is a simple composite that will utilize existing infrastructure.
*Scoring ranges from a minimum score of -0.80 to a maximum score of 3.20.
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