Moving MVI in-line With the Fee Split Model

[Thomas_Hepner]

@DarkForestCapital I am very excited and optimistic about the overall direction of this proposal. In my view, this moves Index Cooperative a lot closer to the vision of being a true cooperative of many products and methodologists.

@DarkForestCapital

The aim, from our side, is to solve for stretched contributions across the entirety of the Coop, and allow for sole focus on the Metaverse Index, where we can double down on making the product a success long term and pursue our vision of other products. From the Coop’s side, we believe this change would better align incentives and make sure our compensation is directly tied to the success of the product, also removing the financial burden of our FT packages from the Coop.

Excited to see this change! My hope and expectation is that by focusing solely on MVI you will make the product much more successful, you will build your own personal monopoly around the Metaverse, and you will make more money from the fee split model than the FT contributor model.

@DarkForestCapital

On a more practical level, the MVI growth budget remains unspent

This part was unclear to me - are you planning to use the growth budget or return it to the Index Coop?

@DarkForestCapital

Where does this leave the Community Methodologist Role?

We would hope that the role can continue in some form, perhaps answering the calls for some type of ‘Index Accelerator/Incubator’ where ideas from the community are de-risked by having the methodologist be paid a stipend in INDEX for a period of 3 to 6 months. This way the Coop is able to launch products from within the community, and methodologists are able to grow a brand and, hopefully, reach escape velocity without having to pay the bills from the streaming fee.

We see this being positive for the Coop as the most successful products are transitioned to a fee split model, with methodologists able to leverage their knowledge and reach within specific sectors. Tagging @Monportefeuille as someone who might be interested in this line of discussion.

I see a lot of potential in the idea of some sort of incubator/accelerator program within Index Coop that spins out subDAOs or product DAOs. Much of the value of Index Cooperative comes from the community. The community is the schelling point that brings passionate people together to build index / structured products that make finance accessible. Kiba and I both met through Index Coop before forming Titans of Data, and I believe it’s how you and Verto met before collaborating on the Metaverse Index?

Ultimately, I can even see Working Groups becoming subDAOs in Index Coop 2.0 with incentives that better align economic interests and foster accountability.