Product Performance - Surfacing Gas Costs

[Matthew_Graham]

@Matthew_Graham

An alternative idea, is to deduct the gas costs from the methodologist rewards incentives program. MVI and DPI methodologist both receive a large number of INDEX tokens from Index Coop as part of the methodologist program.

Given MVI was an internal product only a couple months back, it should be fairly easy to just amend the INDEX distributed through the methodologist program. It can be considered an oversight of the prior IIP.

IMHO I think the methodologist should consider this a great opportunity to volunteer splits the gas costs by way of reduced INDEX incentives when Set Labs passes rebalancing costs to Index Coop. That would be a lovely gesture and speak volumes towards the value we all place on the respective partnerships.

Just tagging @verto0912 and @DarkForestCapital here to ensure this is brought to there attention.

It would be great to get feedback on the above and I welcome the dialogue that is forthcoming.

No doubt that as MVI grows the rebalancing costs of the less liquid tokens will really hurt Index Coop’s profitability. This is occurring at a time when the Methodologist Incentives allocation starts to ramp up as MVI’s growth outperforms its peers. A few months ago, these costs and incentives were aligned as Index Coop directly received the methodologist incentives and indirectly paid the on-chain gas costs. With MVI moving external, we lost this alignment. It was an oversight at the time and it is important to recognise we operate in a progressive space.

Can we restore the alignment through reimbursing Index Coop for on-chain gas costs with INDEX that would otherwise be distributed through the Methodologist Incentive program ?

To me this is a very fair ask of the MVI methodologist as the Methodologist Incentive program is not a perfect but continues to be offered as designed in good faith.