Hello there,
I’m not confortable with this relationship neither, notably because of the 30% allocation to the Set team. It is way too much in my opinion, especially since it’s not even the Set token (I heard someone from the team saying that a Set token is something they are thinking about), but a side project for the team. How are these two worlds going to work together without cannibilizing each other’s opportunities ?
I see 2 options there :
- the $INDEX token becomes the $SET’s token, and the team can keep 30% of the tokens
- The INDEX token is limited to few indices, and the team keep a really limited amount of tokens (5% ?) + an additional funding mechanism for each new index project (see my proposal below)
It’s going to be really complicated to motivate people to join the Indexcoop if they found out that there is such an important amount of tokens pre-allocated. Indexcoop is also a way for the Set Protocol to get more awareness, it should be a win-win situation. Currently it mostly benefits to the Set Protocol, which by the way will have the most voting power to decide what to do with the remaining 50% $INDEX in the treasury !
If the Set team really believes in this project, why not setting up an Operational Treasury system (same as Yearn) coming from the Fees paid by our clients ?
We could define a cap of XXX USD (to be discussed), and once it’s filled up by the streaming fees of indices, all the remaining fees start to go to $INDEX holders, creating yield !
This way, the project has to be profitable for all parties involved, including the Set team. It’s a healthy way to launch a project and an awesome signal to the market.
And, by the way, I totally agree with you: we should remove the fee for the creator of an index. Holding $INDEX is enough if terms of incentive, we don’t want to create useless noise on the forum.
Thanks in advance,