Summary
It’s time for another update regarding MVI and what we’ve been doing this past month. With the request for a growth budget having just passed, we take a look back at the goals we set, and what comes next.
Where we’ve been
In the last 5 weeks the markets have generally been in down only mode, which is reflected in a lot of the key metrics. Namely:
- Market cap dropping from $6.5m to $2.9m
- The Uniswap pool settling at $2.8m in liquidity
- Daily revenue reduced but settling around $92/day
But on the positive side:
- Cumulative revenue tipping over $10k
- An increase from 1162 to 1437 (+23.6%) in unique addresses holding the token
- The release of 5 articles and 3 podcasts on MetaPortal, with subscribers up 43% to over 200 and the NFT games piece getting nearly 1300 views.
- IIP-48 passed with 97% in favour, granting us a budget to target specific growth initiatives
Having fallen below our initial target of $5m for the Uniswap pool, $INDEX rewards have been increased to compensate, as per the original plan. This kept the rewards rate at 26%, which was enough to keep the pool above target during a bull market, but is falling short during this risk-off period. Checking back in with our competitors, Indexed Finance’s NFTP is at $0.54m and PieDAO’s PLAY is at $0.95m, so MVI still has a commanding lead among similar products.
Dune Analytics
As per the last update, we like to highlight some specific metrics to help illustrate the latest numbers around MVI. First up is mint/redeem volume which remained positive, despite the price action in crypto more widely. MVI saw a reduction to 430 new units per day, from a 1000 per day in May, when looking at 7 day average.
Interestingly, as unit supply growth has remained positive on balance, and the number of unique addresses has continued to increase, the amount of liquidity being incentivized has dropped. Incentivized supply has dropped from 60% in May to just 48% now, showing that even during a tumultuous period, new MVI units are being created and held outside of the Uniswap liquidity pool.
When it comes to the retention rates, MVI is tracking somewhat better than DPI. For the April cohort, MVI retention rate is 72% 65 days in, while DPI’s first cohort was at 65% at 65 days. For the second cohort, MVI retention is 78% 44 days in, while DPI’s retention was at 69%.
Small buyers are also using low gas prices and the recent price pullback to enter into new positions. For example, there have already been more addresses that bought less than 10 units of MVI in June than during the entirety of May.
What comes next
With the passing of the budget request, we now move into a 3 month period where our aim is to deliver the plan we set out in the original proposal. This will test our hypothesis that MVI unit growth can come from the crypto and NFT gaming communities.
For transparency, a multi-sig wallet has been created at this address 0x700F20b8DA01ac35c697a48D97DcE60e5AA967A1 (not yet funded by FC) in order to hold and spend the budget. We expect to divide the funding into 2 portions, in order to reduce price risk, as some tasks will require setup and are not ready to be funded just yet.
The main work streams we will kick off in the next quarter are:
- Fund the newly created gaming guild with YGG, begin yielding $SLP
- Launch direct incentive campaigns
- Work with content partners to produce educational content
- Scope out the virtual music festival, possibly holding our first event
- Pursue delegated snapshot voting for DCL, Rari and NFTX
- Continue to produce articles and podcasts through MetaPortal. Target 1/week of each
- Amplify MP content through Twitter
- Conduct user surveys to learn more about our customers
- Explore the option of bringing MVI off-chain through a partnership or a licensing agreement
The conversation around intrinsic productivity for MVI has stalled as the legal ramifications are not yet understood, and the engineering constraints at the Coop mean it will not be prioritised in the near future.
Checking back in on the unofficial targets we set ourselves (target mid August):
- $12m market cap: 40%
- 150k supply units: 56%
- Run a partnership with two underlying projects that give MVI utility: 0/2
- Carry out our first metagovernance vote: N/A
- Grow MetaPortal subs to >500: 42%
Extra-curricular involvement
@verto0912 and I have remained involved in the day-to-day running of the Coop, leading the organisation call and related tasks, participating in PWG, TWG, liquidity mining & Funding Council conversations, producing the IC podcast & newsletter among other activities. We will remain involved but participation will decrease as we double down on MVI over the coming months.
