# Metaverse Index - September Rebalance **URL:** \ **Category:** Products\ **Tags:** mvi\ **Created:** [1 October 2021 19:10 UTC](https://gov.indexcoop.com/t/metaverse-index-september-rebalance/2839 "2021-10-01T19:10:49Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![verto0912](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/verto0912/32/2105_2.png) [@verto0912](https://gov.indexcoop.com/u/verto0912)\ **Post date:** [1 October 2021 19:10 UTC](https://gov.indexcoop.com/t/metaverse-index-september-rebalance/2839/1 "2021-10-01T19:10:49Z")
**Objective of the Metaverse Index (MVI):** The Metaverse Index (MVI) is designed to capture the trend of entertainment, sports and business shifting to take place in virtual environments. The MVI uses a combination of the square root of market cap and liquidity weighting to arrive at the final index weights. **MVI Rebalance Weights:** _Weights were calculated as of September 30th 2021_ ![image](https://canada1.discourse-cdn.com/flex027/uploads/theindexdao/original/2X/e/e9e95107e6c3dc1ed29642394b66256f0d33ae67.png) Here’s the change in allocations with “current” allocation taken at the time of writing. ![image](https://canada1.discourse-cdn.com/flex027/uploads/theindexdao/original/2X/7/7866e6b186ee02a205d8134c8c7562e5469db75d.png) **Rebalance summary:** The above weights were calculated based on the average market cap and liquidity during the determination phase, which is always the last 7 days of the month. For this rebalance, we removed MUSE from MVI due to low market cap. The inclusion criteria for MVI has so far been $30m circulating market cap. Not only is MUSE’s spot circulating market cap below $12m, but its 90-day average circulating market cap is around $20m. Personally, we are big fans of what the team over at NFT20 are doing and hope we can add the MUSE token back in the near to medium-term. There are no new token additions in this month’s rebalance. On the methodology front, we are making a small change to our inclusion criteria, in what we see as the 0.1 version of the methodology. Specifically, we are increasing the circulating market cap inclusion criteria from $30m to $50m. The space has grown considerably in the last 6 month and so has the Metaverse Index. Projects below $30m can no longer have a meaningful weight or impact on the index and, more often than not, lack on-chain liquidity. Furthermore, we are seeing more and more projects get through our initial screens. That’s not a bad thing per se but the success of Axie Infinity as well as the general hype around NFTs is bringing a lot of questionable actors into the space. Overall, we see increasing the circulating market cap inclusion criteria as a marginal improvement of the methodology. ---
**Author:** ![mestigoit](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/mestigoit/32/3610_2.png) [@mestigoit](https://gov.indexcoop.com/u/mestigoit)\ **Post date:** [7 October 2021 17:29 UTC](https://gov.indexcoop.com/t/metaverse-index-september-rebalance/2839/2 "2021-10-07T17:29:24Z")
Thanks Verto for this update. I don’t understand a simple thing. After rebalancing ILV has almost the same allocation as AXS. But Axie has 4 times the square root market cap than ILV. I thought it would be only 25% of the allocation then. ---
**Author:** ![verto0912](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/verto0912/32/2105_2.png) [@verto0912](https://gov.indexcoop.com/u/verto0912)\ **Post date:** [7 October 2021 18:04 UTC](https://gov.indexcoop.com/t/metaverse-index-september-rebalance/2839/3 "2021-10-07T18:04:46Z")
It’s not relly about how much one is bigger than another but as % of the total. AXS is 23.1% of the aggregate square root of market cap, while ILV is 6.4%. That represents 75% of the weight. The other 25% is liquidity where ILV is 61.9% of the aggregate liquidity, while AXS is 7.4%. The total weight is 75%\*RMCW + 25%\*LW. For AXS, that’s 75%\*23.1%+25%\*7.4%=19.2% For ILV, that’s 75%\*6.4%+25%\*61.9%=20.3% Hope that helps. ---
**Author:** ![mestigoit](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/mestigoit/32/3610_2.png) [@mestigoit](https://gov.indexcoop.com/u/mestigoit)\ **Post date:** [7 October 2021 18:24 UTC](https://gov.indexcoop.com/t/metaverse-index-september-rebalance/2839/4 "2021-10-07T18:24:46Z")
Ah. Ich forgot about the liquidity. Now it all makes sense. Thanks.