Index Coop - Set: Next Steps

Authors
@setoshi @0x_Dev @afromac @anthonyb.eth @edwardk

Introduction

Set published the Open Letter with 1kx to encourage and incentivize Index Coop to achieve a number of goals and become more focused, commercial and, ultimately, successful. Two of these goals were: ‘incentivize top leaders and talent’ and ‘bring back building’. Over the last few weeks Index Coop and Set have been negotiating a deal to help Index Coop incentivize its key people and launch products more efficiently via new access to Set Protocol. This deal also aims to enable Index Coop to have full autonomy and free Set from day-to-day involvement with Index Coop.

High-level terms

Index Coop and Set are pleased to have agreed the following high-level terms. Fuller structure and operational details covered below.

  1. Set will hand over the Index Treasury to Index Coop
  2. Set will transfer 950,000 INDEX to Index Coop, in the form of the Set Labs Y2 and Y3 vesting contracts and a top-up transfer of INDEX tokens
  3. Set is happy for Index Coop to redeploy Set Protocol in good faith and launch new products on this new system
    • Set agrees to support existing products running on its version of Set Protocol
    • Index Coop will support new products on its newly deployed version

Execution of terms & detail

1: Treasury hand over

  • Set will add these five addresses to the Treasury multisig, which represent the three Index Coop Cayman Foundation directors, three ICC members and one member of the finance function: 0xdF4C03660aD86C20aDEccA95a86f5044f38FcA56, 0x96EB65c02B0bc06E758bA916D3652b659ca2C671, 0xD19e5913C33E7d69a7f66c090760B3e611106b9A, 0x57D0C0f6458284884F0654CAa53811D013bB6f20, 0xB639DAd047432727309e2BBBaB74cE204E3a9623

  • Index Coop will remove three Set addresses from the multisig, leaving the remaining five Index Coop addresses as signers. The multisig will be run as a three of five

2: INDEX transfer

  • After claiming vested tokens, Set will change the beneficiary address on the Set Labs Year 2 vesting contract to the Treasury multisig address

    • There are approximately 708,000 tokens vested at 10.08.2022, assuming day count in the calculation - leaving 132,000 INDEX unvested
  • Set will change the beneficiary address on the Set Labs Year 3 vesting contract to the Treasury multisig address

    • This Y3 vesting contract has its full 560,000 INDEX unvested
  • Set will transfer 258,000 INDEX tokens to the Treasury multisig. The multisig will be controlled by the five addresses mentioned in 1.a at this point.

    • Calculation to generate the token number above: 950,000 - (560,000+(840,000-708,000)) = 258,000

Index Coop and Set will work together to execute 1 and 2 above, using internal tracking and risk management docs and checks, before follow up comments and links to Etherscan are shared in the comments below.

If due to a number of days passing Index Coop and Set need to recalculate the INDEX value for 2.c, that can be done and posted as a comment update.

3: Redeploy protocol
Index Coop will confirm its ability to deploy its own version of Set Protocol to Set Labs before moving to deploy its own version over the next couple of weeks. Set agrees to answer set up and support questions from Index Coop, with the aim that Index Coop is fully independent from a technology perspective as soon as possible.

Conclusion
We, Index Coop and Set, aim to execute these steps shortly - and hope this deal will enable both sides to independently move forwards towards bright, successful futures. Onwards!

26 Likes

This ultimately seems like a step in the right direction. I’m looking forward to the Coop being able to move quickly. One question I had: what role will Set play going forward? Will the only relationships be “to support existing products running on its version of Set Protocol”?

2 Likes

Following up - in addition to technical support of existing products, we still intend to play an active role as a token holder (supporting on strategic / product decisions as we had done w/ the Open Letter).

-Felix

9 Likes

Index Coop and Set are pleased to announce that the token elements of this deal have settled - Treasury handover, Y2 and Y3 vesting contracts and top up payment.

Treasury multisig handover:

Y2 vesting contract:

Y3 vesting contract:

Top up payment:

Thank you @setoshi and team for your time and work pre-agreeing and post-agreeing the deal.

Onwards and upwards!

16 Likes