NFT Pulse Index

Hi everyone. I would like to propose an NFT pulse index.

PROPOSAL UPDATE

What changed? (5, 6) Objective, Methodology & Requirements, (3) 1 Asset, (7) Fees.

We want the community input on what should be considered, your thoughts, and if you think anything is missing as part of the proposal process, so feel free to comment and suggest, token economy, etc.

Well, I tested that idea before, built an MVP, and I got many supporters in a day as well.

  1. https://twitter.com/michae2xl/status/1313574914893508608
  2. Welcome to Index!
  3. https://discord.com/channels/762061559744299010/762107783285702727/763581691662827551

Summary:

  • NFT index token, suggested ticker: NFTX, which set tracks the performance of holding a diversified basket of 6 tokens, and plans to incorporate other NFT protocol into the contract.
  • Website, Twitter account (https://twitter.com/NFTpulse), Discord, etc.
  • Integration on Setprotocol page: Implement the whole NFT index ecosystem into https://www.tokensets.com/portfolio/nft (new page as shared below).
  • Listing NFTX/ETH on Uniswap.

Motivation: NFT is taking over and becoming the focus of the blockchain community’s discussion.

That idea surged because there are many new NFT protocols surging, also people can save gas fees for exposure in many assets at once for example, saving time as well. We believe that the NFT pulse index could be great for the whole NFT market, inclusive for me as an investor.

QUESTIONS & FIRST ANSWERS

(1) - Size of opportunity: Can this index hit $100M? What is the market size? Expected revenue generation?

Absolutely, there is a big market ahead as shared below, which we think that the NFT pulse index will benefit the whole NFT industry bringing exposure and scale.

- NFT Market Capitalization: $511,375,061.
- Trading values: $86,176,195

Source: https://www.coingecko.com/en?category_id=non-fungible-tokens-nft

Macro feeling, community research:

- Speculative market progression (100B market): https://twitter.com/GarlamWON/status/1313168506540654594
- Pomp: https://twitter.com/APompliano/status/1308037548493725696
- Chris from Placeholder: https://twitter.com/cburniske/status/1298363693760016384
- Cointelegraph talking about Defi Indexes: https://twitter.com/cointelegraph/status/
- The market is growing fast and many people are talking about it:
https://twitter.com/cointelegraph/status/1313325493949669377
- "Launch Voting for Hot NFT Projects"
https://www.okex.com/support/hc/en-us/articles/360049851472
- Influencers: https://twitter.com/Josh_Rager/status/1313965124399529984
- Cases: https://twitter.com/cryptofitch/status/1313950667216687105
- Community asking: https://twitter.com/cryptocrane_ch/status/1314537718844620801
- Large exchange: https://twitter.com/huobiglobal/status/1314091702366343168

(2) - Differentiation: Is the index sufficiently differentiated from existing products? Will the index cannibalize an existing product?

Absolutely, it’s being the first-ever NFT pulse index covering a basket of NFT protocols existing in the market.

The index will benefit the NFT industry, exposure, involving good projects in the space, easy to exploring and understanding, saving fees, saving time, UI, and a trusted team.

(3) - On-chain liquidity analysis: Can existing on-chain liquidity support the proposed assets that are expected to be included in the index?

Yes, DEXes liquidity, e.g Uniswap:

$Meme contract: 0xD5525D397898e5502075Ea5E830d8914f6F0affe, https://info.uniswap.org/token/0xd5525d397898e5502075ea5e830d8914f6f0affe
$Rari contract: 0xfca59cd816ab1ead66534d82bc21e7515ce441cf https://info.uniswap.org/token/0xfca59cd816ab1ead66534d82bc21e7515ce441cf
$ghst contract: 0x3F382DbD960E3a9bbCeaE22651E88158d2791550 https://info.uniswap.org/token/0x3f382dbd960e3a9bbceae22651e88158d2791550
$sand contract: 0x3845badAde8e6dFF049820680d1F14bD3903a5d0 https://info.uniswap.org/token/0x3845badade8e6dff049820680d1f14bd3903a5d0
$mana contract: 0x0f5d2fb29fb7d3cfee444a200298f468908cc942 https://info.uniswap.org/token/0x0f5d2fb29fb7d3cfee444a200298f468908cc942
$dego finance contract: 0x88ef27e69108b2633f8e1c184cc37940a075cc02 - 2M liquidity
https://info.uniswap.org/token/0x88ef27e69108b2633f8e1c184cc37940a075cc02 (NEW)

(4) - Author background and commitment: Is the author the right person to create this Index? Can they support distribution and marketing for the product?

I’m a Product Owner, master in software engineer. I’m involved in the crypto sphere since 2016, currently helping others crypto projects as a community manager as well (proposal approved using a governance system). I love decentralization, crypto & games, so here is my motivation and why I proposed an NFT pulse index, as I will participate as an active user as well.
I worked with coinartist (social token) in the past, and have good networking, experience in creating a crypto community.
I’m an ethical person, integrity, very active in every social platform, always available for support.

(5) Objective

The NFT Pulse Index is a capitalization-weighted index that tracks the performance of NFTs protocols across the market.

The NFT Pulse Index is a digital asset index designed to track the NFTs protocol’s performance. The index is weighted based on the value of each token’s circulating supply.

The NFT Pulse Index aims to track NFTs projects that have significant usage and show a commitment to ongoing maintenance and development, max supply, products live, assets sold on-chain, owners, users’ growth, community, governance space between owners and community, team support, volume, roadmap, not necessarily in that order.

(6) Methodology

The NFT Pulse Index initial criteria are composed of:

  • The token must be available on the Ethereum blockchain, and must be an ERC20 as property.
  • The token must be associated with NFT.
  • Marketcap > 5M
  • The token must be available on at least one (1) DEX - Decentralized Exchange.
  • None of the following will be included in the index: Utility tokens, like SLP, Wrapped tokens, Tokenized derivatives, Synthetic assets, Tokens that are tied to physical assets, Tokens that represent claims on other tokens.

Token’s Supply Characteristics

Composite for two characteristics:

  • Max supply e.g $RARI $MEME $DEGO $SAND $MANA - Characteristic 1
  • Bonding curve $GHST less price fluctuation, Characteristics 2

Final composition for that proposal

Asset Weighting
RARI 35 %
GHST 20 %
SAND 15%
MEME 15%
DEGO 10 %
MANA 5 %

Why?

6 of 10 top in volume - https://www.coingecko.com/en?category_id=non-fungible-tokens-nft

  • RARI has a max supply of 25M tokens - Top 1 in assets, Top 11 in Owners (14.070) - MC > 5M
  • DEGO has a max supply of 9.7M tokens - Top 5 in Owners (27.952) - CMC > 5M
  • SAND has a max supply of 3B tokens - Top 39 in Owners (2.850), Total assets (54.094) - MC > 5M
  • MEME has a max supply of 28K tokens and partnership with MANA - Owners (3.340) - MC > 5M
  • MANA has a high supply, considering 5% of the allocation. - MC > 5M
  • GHST Bonding curve, Top 1 in volume, less price fluctuation - MC > 5M

Project’s Traction Characteristics

  • The project must have a clear product (mainnet, testnet, working).
  • The project’s protocol must have significant usage.
  • The protocol or product must have been launched at least 90 days.
  • The protocol or project must not be insolvent.

Protocol’s User Safety Characteristics

  • The protocol must have been operating long enough to create a consensus about its safety in the NFT community.
  • The selected tokens must have sufficient liquidity across a variety of trading platforms.

Index Calculations

The first release is based on the DPI formula:

  • Circulating Supply is the number of tokens circulating the last time circulating supply was determined. Then it will use Etherscan contract addresses to check real supply as a reference source.
  • Price is the market price of the token in USD.

Credits to the DPI team.

Index Maintenance

The index is maintained monthly in two phases:

  • Methodology checks (Author + NFT expert).
  • Circulating Supply Determination: The NFT Pulse Index will use as a reference etherscan contract to use their circulating supply number.
  • Additions and deletions: The tokens being added and deleted from the index calculation are determined in (30 days recurring, no matter if the month has 31 days or 28 days) and published the community the result.

(7) Fee Split

• 70% Index Coop to manage and implement that NFTX Index.
• 20% Proposer (3 work hours daily + maintenance + research + networking with NFT community involved + methodology checks)
• 10% NFT expert voted by the community, renewed quarterly.

Roadmap

  • NFT website, NFT discord, Partnership.
  • Set website integration.
  • Automate the methodology to minimize author fees, and give more fees to Index Coop.
  • Add a form and formal listing process for new NFT protocols, and research as Exchanges.
5 Likes

Thanks for posting this Michael! NFT definitely seems to be a booming space.

A few notes, no need to include “IIP-2” in the title. Maybe we should create a separate folder just for Index additions lol.

A little confused as to what you meant by the NFTX distribution? You can’t really “premine” tokens since indices need to be collateralized. Do you want to create another DAO just for NFTX?

1 Like

As first, thanks for your feedback, I changed the title already lol.

Well, that’s exactly what I would like to discuss with you/everyone, we can make as DPI (contracts & components), but like you said it needs to be collateralized. However, I think we need to create a contract token, if I’m not equivocating.

My first thinking it’s about incentives, and also creating new products, but if the fee split means: NFTX/ETH fee and split it all, there is no problem as well.

We can see this for that NFT index in the future: https://twitter.com/sassal0x/status/1314746146410045440

I 100% agree we should have an NFT index. I do not think this is it.

  1. Twitter posts are not “macro” research lol. There are plenty of in-depth market reports on the NFT space, did you research those? Also Pomp is not a source for anything but amusement, please don’t mention him again
  2. Can you update tokens to link to their Coin Gecko pages, there is way more information there
  3. What made you change the tokens between your initial proposal and this one?
  4. How do you plan on managing the index over time with the rapidly evolving NFT space? You don’t actually have an evaluation method for the selection of tokens besides “strong community” and you don’t even explain what that means, why that’s beneficial, or compares to other tokens you didn’t include.
  5. DPI has over $12M in AUM, do you think tokens with <$1M liquidity could handle the buy pressure of these tokens?
  6. You say it rebalances “based on market cap, formula, and DPI comparative” can you give more details
  7. Set team can correct me but I’m 90% sure fees work similar to Social Traders on Set. As mentioned there is no premine or allocation, index tokens are constantly minted and redeemed by users with no fixed supply or control by us.
  8. You said “2% -> Cannibalizing market share from other Index Coop products” You realize cannibalizing is a bad thing and you want to incentivize that???

Overall I’d give a 2/10 the proposal. Not much original thought, in-depth analysis, nor a compelling reason for why you will be a good steward for this index going into the future.

2 Likes

Twitter posts are not “macro” research lol. There are plenty of in-depth market reports on the NFT space, did you research those? Also Pomp is not a source for anything but amusement, please don’t mention him again.

I meant the text inside, all links related, attributes. He is an entrepreneur, he invested in many successful crypto projects, and you? I think we can learn something coming from him easily, this is an unnecessary judgment, and no, I don’t know him.

Can you update tokens to link to their Coin Gecko pages, there is way more information there.

Thank you for the info, I thought in a short text, macro view of the proposal, I have all those projects described and their functions, but I can’t imagine sharing everything in a pre-proposal without collecting feedbacks.

What made you change the tokens between your initial proposal and this one?

I probably could have added some more tokens. To be honest, I can’t see any issue here and why your question, because it can be edited anytime, and no, I will not include or exclude a token by any influence.

How do you plan on managing the index over time with the rapidly evolving NFT space? You don’t actually have an evaluation method for the selection of tokens besides “strong community” and you don’t even explain what that means, why that’s beneficial, or compares to other tokens you didn’t include.

I have a list of all tokens described, their functions, cases, NFT+DEFI, farming, the NFTs tokens have their products, and will be checked. Again, this is an MVP, short scope, and everything can be edited.

DPI has over $12M in AUM, do you think tokens with <$1M liquidity could handle the buy pressure of these tokens?

Yes, this is a market in action, and the scenario is bullish, everything is about iteration, constantly research, rebalancing, it will bigger than we can imagine as depth analysis is showing.

I shared only uniswap, many assets had more than one DEX listed.

You say it rebalances “based on market cap, formula, and DPI comparative” can you give more details
Set team can correct me but I’m 90% sure fees work similar to Social Traders on Set. As mentioned there is no premine or allocation, index tokens are constantly minted and redeemed by users with no fixed supply or control by us.

Fee split is under discussion, there are ideas, and it will probably be altered, thanks for the feedback.

You said “2% -> Cannibalizing market share from other Index Coop products” You realize cannibalizing is a bad thing and you want to incentivize that?

Fee split is under discussion, there are ideas, and it will probably be altered, thanks for the feedback.

Overall I’d give a 2/10 the proposal. Not much original thought, in-depth analysis, nor a compelling reason for why you will be a good steward for this index going into the future.

I respect your overview and points. This is an MVP, scope, iteration. I think we can’t judge any person by competence or capacity just reading a little text, it’s superficial, and also I didn’t mention that I will be leading the index in the future, can be you if there is a consensus, for example, I’m a part of that, in an overview, but it seems an attack.

3 Likes

You seem to know a lot about many NFT projects. Basically I want to see an NFT Index too but not sure about the details. Would be nice if @opensea or some other methodologist like defipulse can join to bootstrap an Index. Would be nice if you can manage this somehow.

1 Like

Is the voting function activated? I’d like to support this proposal, it does make a lot of sense to gain overall exposure to NFT protocols.

1 Like

Thanks for your comment.

Well, as you said about defi pulse methodologies, the initial idea is to counts with their expertise, infrastructure, and both being part of rebalancing as well, I will not do it alone. The new NFT pulse index could be implemented on set docs, discord bot, and others.

@Opensea has great data and ranking as well: https://opensea.io/rankings

Thank you EJT!

This is a pre-proposal for collecting initials feedbacks, when that window ends, I will do the proposal. I hope to see you again. :slight_smile:

1 Like

Hey guys, pretty upsetting to see this but I’m going to assume that this was an honest mistake.

I’m working on launching a project for NFT index funds right now under the name NFTX. I own the .org domain, the .eth domain, and have been tweeting from the twitter handle @NFTX_.

I would appreciate if you changed the name for this product to something else.

Hi Alex!

This is an honest mistake, the X is suggestive being indeX, but the both product seems different. We have created @nftpulse account for that.

Question: I took a look in your product now, is token called $PUNK or $NFTX?

Hey Michael, thanks for the quick reply. I was originally planning on launching an $NFTX protocol token to go along with the index tokens being made (like PUNK). Decided I’m going to wait 6 months or so before launching $NFTX token and will just use the NFTX name for the platform for now.

I do not have copyrights or anything (and this is a permissionless space anyway, hah), so you guys are welcome to use that ticker if you want and then there can be two NFTX tokens in six months if all goes well.

Sorry about my crassness in my comment above, I jumped to the assumption my idea was being stolen but it doesn’t seem like that’s the case. So, ya, feel free to use that ticker, just know I might use it as well in 2021.

1 Like

Hi Alex, understood. Let’s agree that “X” at the end is suggestive, after all, lol.

Don’t worry, we are under discussion yet, this is not the final product, so we can thinking for sure, but we don’t want to steal intellect from anyone, and your feedback is very welcome.

Good luck to both haha, see ya.

1 Like

Hey Michae2xl, have you considered using NFTI as the ticker? I mentioned in my proposal the idea of trying to keep Index products consistent if possible, and using I at the end makes it more easily identifiable as an Index product. DPI, MVI, NFTI…

Hi!

No, I didn’t considered it before, also I saw what Kiba posted, he has it as his ticker as well, so let’s see.

PROPOSAL UPDATE

What changed? (5, 6) Objective, Methodology & Requirements, (3) 1 Asset, (7) Fees.

1 Like

Lets do this. Launch the NFT Index.

1 Like

Update: Dego migrated to BSC, so 5 assets are remained in ETH.

Hello.

The original idea is great.
Is it informally approved by the community ?
What are the next steps for this ?

1 Like

Hey there!

Thank you for the comment.

Well, some feedbacks are great and probably we could go forward with it.

The next step should be to create a pool for voting, also refine the proposal, all tokens again.