Index Coop Trust and Reputation is Everything

Other Miscellaneous
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The Index Coop is an organization that exists only in the context of its partners.

Without Set Protocol, the Index Coop would have a protocol to manage. Without Index methodologists, the Index Coop would have nothing to manage.

Without DeFi Pulse and Set Labs, Index Coop would not exist. In order to justify the commitment of time from both our teams, we established a distribution that would benefit everyone.

The community was given the Lion’s Share of all rewards, with a generous liquidity mining program plus half of all the tokens for future distributions.

Set Labs was given nearly all of the Founding Cut.

and DeFi Pulse was given a very small slice of the Founding Cut and a good chance to earn a significant portion of the methodologist tokens, giving us significant skin in the game to maintain the DPI, a new, untested index, and license future indices thru the index coop.

These were the terms that everyone signed on, including new members.

We made our bet that the Index Coop would grow into a reliable partner.

We were excited for the launch, but were slightly alarmed that one of the first proposals, “DPIacc” was an index that used DeFi Pulse’s name, trademark and ideas with a stated intention to “cannibalize” the assets in the $DPI.

More recently, there has been discussion within the Index Coop from some members of reneging .

If partners do not trust the Index Coop to take a long term view on success, they will not want to work with the Index Coop. full stop.

Short-term thinking in a long term business destroys value. The index Coop has been on a winning streak because it has been led by leaders who can see the long term goals, and people that want to fight to grow the pie, rather than fight to take someone else’s slice.

Let’s work together.

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2

Hi Scott,

I fully agree, the strength of the coop is dependent on us all and we need to work together.

Set Labs and DeFi Pulse have given birth to something fantastic and i am very grateful for the opportunities that the coop has given to me and others.

I must admit that I’m surprised that the DPIacc proposal was alarming to some people. That was never my intention and at the time I suggested that DeFi Pulse and Set Labs would be best placed to be the methodologist for such a index fund. At the time I did propose a different split of the 0.95% streaming fee for methodologist / coop (i.e 0.095 and 0.855 vs 0.3 and 0.65). However, I think that this was purely due to my not understanding the actual fee slit for $DPI. (The 10th October was early days for my involvement ion the coop and I was keen to see us launch more products onto the market). At the time, I said that I didn’t think the proposal warranted any rewards as it wan’t particularly novel (i.e. streaming fees should goto the managers appointed by the coop)

In the discussions that followed that proposal I’ve come to realise the weaknesses of that approach including the canabalisation of DPI and liquidity of the yield generating tokens.

In the subsequent community discussions, I’ve come to believe that we should focus on 3 goals:

  • Growing the community,
  • Educating crypto natives about the benefits of index funds
  • Growing $DPI in terms of AUV and building it into the DeFi infrastructure.

I believe that these are in long term interests of the coop and I have been been directing my efforts towards all three.

In the coop, Set Labs and DeFi Pulse have created something special,and we have a fantastic opportunity to work together to realise it’s full potential and capture a large slice of a large pie.

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