Inverse the INDEX Distribution Schedule of Tokens to the Treasury and to the Team

Finance Treasury
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Proposed changes

Treasury Allocation

Currently, the release schedule of INDEX to the treasury is:

  • 52.5% of all INDEX tokens have been allocated to a community treasury. 5% of these tokens are available starting today with the remaining tokens (47.5%) being vested linearly at every Ethereum block over a period of 3 years (starting today) in-line with the schedule below.
  • Year 1: 50% of the treasury tokens vested (2.375 million tokens)
  • Year 2: 30% of the treasury tokens vested (1.425 million tokens)
  • Year 3: 20% of the treasury tokens vested (950,000 tokens)

Proposal to reverse this distribution to:

  • Year 1: 20% of the treasury tokens vested (approximately 950,000 tokens)
  • Year 2: 30% of the treasury tokens vested ( 1.425 million tokens)
  • Year 3: 50% of the treasury tokens vested (approximately 2.375 million tokens)

Team Allocation

Currently, the release schedule of INDEX to the team is:

  • 28% of the total INDEX supply will be allocated to Set Labs Inc. (the company that builds Set Protocol and TokenSets) and 2% will be allocated to DeFi Pulse. These tokens will be vested linearly every Ethereum block over a period of 3 years on the same schedule as the community treasury.

Proposal to reverse this distribution to:

In terms of wording, there isn’t anything to change, however, to be clear, the INDEX release schedule should continue following the treasury’s release schedule (as listed above). So:

  • Year 1: 20% of the team tokens vested
  • Year 2: 30% of the team tokens vested
  • Year 3: 50% of the team tokens vested

Why do this?

  • This community has just begun to grow. The overwhelming majority of the community hasn’t arrived yet. Therefore, we shouldn’t be releasing INDEX tokens to the treasury (to be voted on) and to the founding team too quickly and before this community has had a chance to further develop. We should instead be focusing on building value to the ideas surrounding INDEX and the protocol. Creating value over an aggressive release schedule will be more fair and beneficial to all participants (both early community members and ones that join later), and it also signals to potential community-members that there is a dedication from not only the founding team, but also early community members, that there is a long-term commitment and vision for the protocol.
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Hello and thanks for your proposal !

I do like the spirit of the proposal, but i think it’s not going far enough. I already proposed something different in here if you want to have a look : Questions on the relationship between Set labs and INDEX coop

In my opinion, first we need to know what IS the INDEX token for the Set team, and then, depending on the team’s answer, define a token allocation strategy accordingly : mine being that we should reduce the team allocation drastically and create an operational treasury system funded by the streaming fees of our indexes (same as Yearn). This is the only way to ensure fairness and decentralization of the Indexcoop.