# Increase INDEX liquidity

**URL:** <https://gov.indexcoop.com/t/increase-index-liquidity/2871>\
**Category:** Tokenomics\
**Created:** [5 October 2021 15:18 UTC](https://gov.indexcoop.com/t/increase-index-liquidity/2871 "2021-10-05T15:18:54Z")\
**Posts on this page:** 1\
**Showing post:** 19

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**Author:** ![Metfanmike](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/metfanmike/32/1034_2.png) [@Metfanmike](https://gov.indexcoop.com/u/Metfanmike)\
**Post date:** [13 October 2021 13:56 UTC](https://gov.indexcoop.com/t/increase-index-liquidity/2871/19 "2021-10-13T13:56:22Z")

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Really great suggestions in this thread. The answer is most likely multi-pronged.

> [@trx314](#):
>
> I am surprised that nobody here is talking about [Wintermute Market Making Proposal (IIP 83)](https://gov.indexcoop.com/t/iip-83-wintermute-market-making-proposal/2575), approved one month ago.
> 
> From the proposal it was clear that Wintermute would provide market making service for the INDEX token on dexes as well:
> 
> > We propose to Index Coop Community appointing a third party agent (Wintermute Trading) to act as the Index Coop Community Agent to market-make $INDEX across cefi, defi and OTC
> 
> Isn’t it the job of Wintermute to answer to @Tradespot’s point? @fallow8 @wishful_cynic @Metfanmike

It is, indeed. Token2049 was the focus last week, but now that is in the rearview mirror, we’ll be having a strategy meeting with Wintermute (likely next week), a next step outlined in the recent [IBWG proposal](https://gov.indexcoop.com/t/poll-added-proposal-institutional-business-working-group-ii-request-for-funding-q4-2021/2887). We’ll be taking in perspectives from Treasury and Product on what the goals should be on the liquidity front and come back to this thread with a properly baked/vetted response and game plan.

> [@slowowl](#):
>
> I think another way to increase the INDEX liquidity would be to give the token more value, for example with buybacks, dividends or something. But it seems nobody here is even thinking about that side of possible solutions. As an INDEX holder i have to say it’s quite frustrating to see the value of the government token go down the drain while the products itself are great. I think there need to be other incentives to hold the government token, except for voting rights.  
> Can others please give their opinion on that? Is there something i could personaly do?

Regarding dividends, I’m not aware of any yield-producing governance tokens that have successfully been listed on, say, Coinbase…are you? The prevailing thought has been that adding dividends/yield would alter the token to a point where it would be viewed unfavorably by many Tier I CEXs for regulatory reasons. Getting a centralized exchange listing seems more consequential than paying out a dividend. Also, the Coop is barely a year old. Early-stage startups don’t pay dividends because they’re in growth/re-investment mode. The Coop is no different, imo.

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