I think there are a few issues with how INDEX is currently being leveraged which make the attractiveness of holding or buying lower than necessary.
INDEX Marketing Material
First, I think there needs to be more urgency to formalize a fee model or state an intention to do so at the very least, so that people evaluating INDEX as an investment on the open market can make a more informed decision on whether to hold, buy, or sell. Currently, the overwhelming narrative, intentional or not, pushed by the Coop is that INDEX is simply a coupon/voucher which stakers and team members should redeem for another asset upon receipt.
Fragmented forum discussions point toward value accrual models, but often with vaguery and the weird intended goal of “distributing INDEX widely.” I think what is meant by this is to make INDEX attractive as an asset to hold (which should advance an agenda of “wide distribution”), but I think its weird to not just state what is actually meant.
Additionally, documentation/marketing materials are outwardly negative to INDEX despite the clear desire to have people bid on the token (hence, the link to buy INDEX on Uni on the site!)
The largest issue is that INDEX emissions are going to inflate the supply by a substantial amount over the next 12 months, and an outsize proportion will be going to founding team (Set + Defi Pulse).
Most companies include a one year cliff on vested equity. If these entities plan on providing continued value (and I have no doubt they do), why not commit to not selling tokens for one year? Otherwise, team can simply cash out on work already done.
I think the forced discipline and boon to the confidence in the DAO from such a proclamation would do a lot of good for the demand for INDEX.
Mitigation for the concern that such a large cliff would put strong downward pressure on price in 12 months time would be to spread 1-year cliff over 3 months: 1/3 Month 10, 1/3 Month 11, 1/3 Month 12.
Lastly, I think we are being too cavalier with unsustainable UNI rewards. Instead of giving away way more tokens to people who don’t care about holding them, why not look for other solutions?
Someone mentioned Dodo, is there a plan to get DPI into CEXs? We can’t pay $500-750k a month (more if you count the continued downward pressure on INDEX) for $30m in liquidity. What happens at the end of the next reward period? Kick the can?