PROPOSED: IIP-117: DATA Revised Economic Proposal

title: IIP-117: DATA Revised Economic Proposal
status: proposed
author: Index Council, Titans of Data
Index council: @Pepperoni_Joe, @mel.eth, @Metfanmike, @jdcook, @Cavalier_Eth @LemonadeAlpha and @Matthew_Graham
Titans of Data: @Thomas_Hepner, @kiba
created: 13-12-2021

Simple Summary

With the off-boarding clause for DATA as detailed in IIP-59 approaching, Ethereum mainnet block 13923000 (est. December 31, 2021), Index Council has been renegotiating the economic arrangement with Titans of Data.

Index Council and Titans of Data present here new terms for the DATA product. The off-boarding clause has been removed, the fee split has been revised, and the foundation for a more collaborative relationship has been set.

Abstract

Index Council and Titans of Data are pleased to announce revised DATA economic terms that removes the exit clause and reaffirms our continued commitment to growing units of circulating supply. Index Coop will continue to jointly develop the DATA growth roadmap.

As part of Titans of Data launching their own DAO, DATA is expected to re-launch with new branding during Q1 2022. This event is expected to be a significant driver of user acquisition and supply growth and will be actively supported throughout the various Nests within Index Coop.

Moving forward, DATA will continue to be an active participant in the ongoing Methodologist Incentive program. The new 60% Index Coop and 40% Titans of DATA revenue split post-gas reflects a hard commitment by Index Coop to implement mint and redeem fees by end of Q1 2022. This commitment is expected to be implemented during January 2022, and Index Coop is expected to invest financial capital in growing DATA in line with the jointly developed product roadmap.

Methodologist Role

Titans of Data’s role as methodologist commits to providing the following to Index Coop:

  • Maintain product methodology / inclusion criteria
  • Support the creation and upkeep of a product roadmap for DATA and potential future products
  • Support on-chain liquidity analysis on the index constituents to support efficient rebalancings
  • Provide feedback as to why certain tokens are or are not included within DATA upon request
  • Publish a forum post prior to each rebalancing of DATA on the Index Coop governance forum
  • Utilize Titans of Data’s social network to support marketing and distribution efforts
  • Keep all documentation related to DATA up to date, tracking performance and sending out updates monthly/quarterly/yearly as appropriate
  • Implement reasonable amendments to inclusion criteria upon request to reflect any received legal advice related to DATA or Index Coop products in general

Titans of Data is not obliged to lead any business development initiative, integration, or technical implementation effort, nor provide any financial capital beyond what has already been made available. Index Coop is responsible and accountable for growing and supporting all aspects of the DATA product.

Economic Agreement

Current Agreement

The current economic construct this IIP aims to replace is based on IIP-59, posted on August 9, 2021. Its key terms:

Streaming Fee: 50 bps
Mint Fee: 10 bps
Redeem Fee: 20 bps

Note: Because the requisite infrastructure for mint/redeem fees was not in place, Titans of Data agreed to launch with a standard streaming fee.

  • Revenue split 70% Index Coop, 30% to Titans of Data
  • DATA will receive INDEX tokens as an active participant in the Methodologist Incentive program.
  • After launch, the fee split and methodologist bounty for DATA may be revised as part of the Index Cooperative’s larger effort to refresh its relationships with its methodologists. Titans of Data has the right to off-board DATA from the Index Coop’s product offerings no later than Ethereum mainnet block 13531000 (est. October 30, 2021) or Ethereum mainnet block 13923000 (est. December 31, 2021) should they not wish to continue with the fee split and methodologist bounty outlined or any new program produced by the Index Cooperative, should one be proposed after block 13333000 (est. Sept 30th, 2021).

Proposed Go-Forward Agreement

Key Terms:

Streaming Fee: 95 bps
Mint Fee: 20 bps
Redeem Fee: 40 bps

  • Revenue split 60% Index Coop, 40% to Titans of Data post-gas costs
  • DATA will receive INDEX tokens as an active participant in the Methodologist Incentive program.
  • Index Coop and Titans of Data agree that no alternative methodologist program will apply to DATA.
  • Titans of DATA withdraws/removes the right to off-board DATA clause detailed in IIP-59.
  • Mint & redeem fees are to be implemented during Q1. Index Coop will exercise best endeavours to implement this change during early Q1 (expectation is late January).
  • Index Coop is to provide on-chain liquidity for DATA which will be managed via the Liquidity Pod and supported where possible by existing market maker services.
  • Neither party has made any commitment surrounding the implementation of intrinsic productivity. At the time of writing, it is not yet known if intrinsic productivity would be implemented for DATA or as a separate product.
  • Any amendments to the economic arrangement mentioned above are to be mutually agreed and implemented via each respective community’s governance processes.

Mutual Understanding:

Index Coop and Titans of Data are committed to growing DATA. Periodic calls will occur between Index Coop representative(s) and Titans of Data, and a jointly developed growth roadmap will be maintained as an ongoing deliverable. This roadmap will reflect Index Coop’s ongoing commitment to growing DATA’s units of circulating supply. Index Coop is committed to funding the growth roadmap for DATA and will do so at Nest level and Pod level. Any spending requests outside of Nest or Pod level budgets will be subject to the IIP governance process. An early stage growth roadmap can be found here. Titans of Data has made a significant financial investment by hiring FLOC, the decentralized studio behind Metafactory and Metacartel, for Titans of Data DAO branding; FLOC’s work includes naming, logo, identity (brand kit, merchandising, etc.), a Web3-enabled website, a launch video, and more. Index Coop community can expect requests for funding in the lead up to the DATA rebranding & launch and can expect to be involved in co-funded initiatives with the newly created Titans of Data DAO in the future.

Voting

FOR:

DO implement the proposed changes to the DATA economic agreement between Titans of Data and Index Coop.

AGAINST:

DO NOT implement the proposed changes to the DATA economic agreement between Titans of Data and Index Coop.

Copyright

Copyright and related rights waived via CC0.

16 Likes

Fully support this notion. From recent surveys, we’ve seen that our customers are price insensitive compared to tradfi, because our returns are higher than tradfi.

9 Likes

Hello @Mringz - can we get an IIP number assigned and status changed to “proposed”?

Would like snapshot vote to begin on December 20th (12/20) - thank you!

cc: @mel.eth, @sixtykeys

6 Likes

In full support of this

I’m also interested to see a wide bid offer spread developing between what IC and methodologists think they bring to the table - I hope discussion can help this and, at least, make the spread narrower

2 Likes

Hey @Thomas_Hepner, an IIP Number ‘117’ has been assigned. The status has been changed to proposed, and 48 hours have passed since, so feel free to call for a snapshot vote anytime from now as per IIP-26.

3 Likes

@sixtykeys Can you please schedule the snapshot vote for Monday (12/20)? Thank you!

2 Likes

This proposal has been queued for snapshot, with voting starting at 1800UTC today.
Snapshot here

1 Like

Confirming that this IIP has passed with 304k (99.42%) voting FOR.
Snapshot here

1 Like