# Metaverse Index - updated proposal w/ new methodology

**URL:** <https://gov.indexcoop.com/t/metaverse-index-updated-proposal-w-new-methodology/679>\
**Category:** Proposal\
**Tags:** product\
**Created:** [5 January 2021 17:33 UTC](https://gov.indexcoop.com/t/metaverse-index-updated-proposal-w-new-methodology/679 "2021-01-05T17:33:56Z")\
**Posts on this page:** 1\
**Showing post:** 9

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**Author:** ![MAkzent](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/makzent/32/404_2.png) [@MAkzent](https://gov.indexcoop.com/u/MAkzent)\
**Post date:** [27 January 2021 05:06 UTC](https://gov.indexcoop.com/t/metaverse-index-updated-proposal-w-new-methodology/679/9 "2021-01-27T05:06:30Z")

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Thank you @verto0912 for taking the time to answer my thoughts!

> [@verto0912](#):
>
> 1. Metholdogy should be clear and objective vs. ambiguous and subjective. Token selection should follow an objective methodology with some room for subjective interpretation. Someone actively picking which tokens to put in or take out is more akin to an actively managed fund and not an index product. It also makes it hard for investors to buy into something like that. Because they need to trust whoever is making token picks and they also have limited visibility into the future direction.

I read up on [other proposals](https://gov.indexcoop.com/t/iip-7-coinshares-gold-and-cryptoassets-index-lite-version-cgci-lv/242) to get a feel for INDEX’s methodologies and agree that subjective selections of tokens are not the right approach.

I assume the first step is to come up with a methodology for which NFT-themed tokens to include? Would be good to hear your thoughts on which project KPIs are relevant here.

> [@verto0912](#):
>
> 1. We need considerable liquidity on decentralised exchanges to deliver a product.

Agreed and IMO this is the biggest issue for NFT-backed tokens right now. However, I expect things to get better within the next 6-12 months. This [medium post](https://blog.coinfund.io/appraisal-games-and-the-nft-liquidity-problem-904afe6bc7af) is a good read.

> [@](#):
>
> Bluechip product first, but the methodology should allow for the inclusion of other assets as the space matures. I’m sure there will be a range of NFT or Metaverse funds introduced over the next 12 to 18 months. Right now, the liquidity is simply not there.

Agree with you. I think it’s too early right now to find “mature” NFT projects to include into the index fund. If we launch such an index fund within the next 6 months, it’ll very likely be too volatile and not what INDEX endusers are looking to invest in.

How about we continue to collect suitable token projects and Metaverse funds and observe them over the next 6-12 months? This way, we can watch NFT land to further mature and will get a proper overview of potential assets to include into the fund.

TL;DR: Considering that we need sound methodologies to craft a proper index fund, I agree that it’s too early right now. I’d feel more confident to develop a model in 6-12 months.

What do you think is the best approach to collect data until then?

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_[View the full topic](https://gov.indexcoop.com/t/metaverse-index-updated-proposal-w-new-methodology/679)._
