The index Contributor Rewards Methodology can be found here.
The May rewards distribution has been posted here.
The May rewards contract will be listed here once deployed.
INDEX rewards are first estimated in USD, and then converted to its equivalent INDEX quantity.
The 20 day rolling average value of INDEX is used to calculate INDEX distribution quantity.
The 20 day rolling average as of June 4th is calculated as $34.59 per INDEXhere.
INDEX closing price data from Coingecko is used to populate the spreadsheet above.
If you feel like there are contributions that we’ve missed, or you feel like there should be adjustments to the rewards amounts, please fill this form out.
Once the rewards contract has been published, head over to indexcoop.com/rewards to claim your INDEX rewards.
hey @dylan - realizing that I never submitted a wallet address (i don’t think at least). discord hand is @tg so let me know if I’m covered. otherwise, let me know the best way to get my wallet address submitted.
From my POV, if we want to peg rewards to an USD amount we should use the exchange rate at the time of distribution (we can even do at the time of contract interaction, when the user tries to collect rewards, the contract checks current INDEX price). Some people might depend on the income to pay their bills and they can easily sell their tokens for fiat in < 10 minutes (reducing their price fluctuation risk).
To me, this approach resembles a coinflip in that regard. You either get a good deal or bad one, with almost no in-between (due to to the highly volatile nature of our native token).
Would love to hear everyones else’s thoughts on this.
20 dma, 30 dma, or rewards at time of distribution are all effectively a coin flip. I think one could actually argue the volatility reduction in using a moving average provides more visibility around the ability to pay bills. Maybe I’m misunderstanding something.
It would provide more visibility if the rewards were not tied to USD. If we convert the USD amount to INDEX tokens at distribution time, if someone that really needs the fiat can easily sell with minimum loss at the open market.
Am I right in thinking the optimal outcomes is to have the dollar denominated contribution rewards (say $3000 for May ) paid with an equal value of Index at the time the reward is received.
So if the reward contract comes out in June 1st and Index price on June 1st is $30, the closer I am to receiving 100 index, the better the outcome? As this means I can sell the 100 Index for $3000, or keep it in Index.
Therefore the key question is, what means of pricing Index allows the USD denominated reward to match the actual reward I can receive (amount of Index * price of Index at time the contract goes live).
Currently we assume a 20 average is the best mechanism to achieve this.
I would challenge this assessment. I’m pretty sure that on average, the Index price yesterday (t-1) is closer to INDEX price today (t) than would be the last 20 day average price of Index" (t-1+t-2+etc / 20).
Put another way, predictive power of historic price on current price (P) gets great the closer you get to the current time period (t).
What this means? We can achieve closer parity between expected, and actual rewards if we assign INDEX amount as close the time of distribution as possible. This will allow the value of the index rewards people actually receive to match more closely the USD value on their rewards sheet.
@dylan I know you and the folks in the Engineering Working Group are slammed and need time to focus on smart contract development to unblock product launches. Is the rewards contract creation something that could be responsibly handed over to Gold/Silver/Bronze Owl contributors?
Given that rewards can’t be finalized until after the month has ended, I think a 7 day turnaround for determining rewards seems reasonable.
Is your challenge around the delay in payment from when work was done, to when rewards were received (inconvenience)? Or because the reward delay causes greater divergence of stated vs actual reward (this is the whole t-1 point again).
If it is the latter, the solution may be simple. Publish contributor rewards to the forum with only an indicative number of Index. Then calculate the actual index reward shortly before publishing the contract.
That means that contributors will find out the USD value they will receive prior to knowing the specific INDEX amount. But given the Index reward will be calculated just before the contract is published, the Index reward will be far closer to the USD amount than under our current process.
This month I completed a chunk of the activity required to publish the rewards contract (preparing reward sheets, matching 0xs etc).
Having a better insight on how the process works, I am also coordinating with the TC around some process improvements which can be made to alleviate some effort. This has been touched on in other posts, and we will likely share more details over the coming weeks.
The latter - the reward delay causes greater divergence of stated vs actual reward.
I worry this might be gameable, especially if INDEX has low liquidity. I think you’d still want to use some sort of average price even if it’s from a specific day so that price is not wildly different from what people expect.
Sounds like you are way ahead of me - excited to see how this progresses!