Request for Comment: Data Economy Index (DATA) Updates

Great work on this @Thomas_Hepner & @Kiba - love all the thought and effort that has been put into incorporating the community feedback and improving the product. So just want to say out of the gate that I really like this product - would buy for me.

A few points of feedback:

So this is the very core of the theme behind DATA. I love the theme. However, I can see how this can feel like a grey area to a lot of people, and when it comes to indexes, people generally want pretty strict lines drawn that make it easy to trust what would or wouldn’t be included in the index. How do you see this? How do you plan on maintaining the line of “data-based services or products”?

I think something like this ^ would go a long way in solidifying the theme that you are trying to achieve in the communities and investors eyes.

I agree with @verto0912 - it would be great to see the liquidity weight modeled here. I would hate for this product to be hamstrung from the beginning due to liquidity issues!

And I think my broader feedback for the community is that I think we have an opportunity here to be a first-mover on a really large theme!


Yes…I think 25% max cap is too low for a brand new index in fast moving DeFi…33% allows plenty of space for new entrants without eroding the share of the likely future dominant winner…DPI capping UNI at 25% is not a good move IMHO

I’m in favor of the proposal though the term “data economy” isn’t a term that I hear often and would suggest naming it “Big Data Economy Index”, where Big Data is a more popular/Googled term and likely to improve marketing impact.


Great work! I think I cannot comment on anything as my concerns were addressed. I just wanted to give a big hand for the hard work and for including a non-native erc20 token on the index.


Not much to add here other than saying i’m on board with this DATA index big time! the product (or the appeal of it) wasn’t initially clear to me but this post patched those gaps in knowledge up pretty immediately.


@Kiba @Thomas_Hepner


Yes the naming could be much stronger and more memetic. Open to any and all suggestions. Dweb, web3, etc. Are more popular terms in crypto and big data, data economy, etc. is popular in enterprise world.


This has already been a topic internally when looking to add more tokens to the index. The answer we’ve agreed to so far is “data-based” means the product itself is data vs a product that uses data to improve business/operations.

So for example Chainlink fits “data-based” because the nodes are selling data directly but Uniswap does not even though they used data to guide architecture to v3. Does that make sense?

@Thomas_Hepner is that an accurate paraphrase?

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Hi frens, :wave:
New poster; long-time fan of the Index Coop project.

I wanted to chime in and voice my strong support for the Data Economy Index. :muscle::white_check_mark:

We at ConsenSys Codefi work with a lot of new DeFi users both retail and increasingly institutional (see MetaMask Institutional). New DeFi users are well versed in the big crypto trends (DeFi, NFTs!, Data Economy, DAOs) but they don’t have the expertise to research hundreds of tokens and make the right plays. They want an INDEX!

The Data Economy / web3 / decentralized web has increasingly become a focus of our customers, VCs, the media, and even mainstream users (normies). The increasing number of data exploits, Big Tech’s monopolies, and DID momentum have all played into the Data Economy becoming a massive sector over the next few years.

I myself believe that web3 / Data Economy represents the next big advance in the internet, after mobile, and have worked closely with the Filecoin team to make this a reality over the last few years. I believe that DeFi will be the financial services layer for this internet evolution and have championed the creation of renFIL as a wrapped version of Filecoin and gotten it into Aave as a lending market. I’m happy to talk through the critiques of renFIL if needed but believe it’s the best wrapped FIL asset on Ethereum today.

Anyway, the DATA Index solves a real customer need that we’re seeing, and I believe will become super popular as the crypto data economy goes mainstream over the coming years. :white_check_mark::white_check_mark::white_check_mark:

Thanks for reading! :pray:


Just wanted to say I really think this should be our next index product for Index Coop. I have seen the commitment from the methodologists @Thomas_Hepner & @Kiba to get this index created in the community plus all the work that they have general done to improve the Index Coop as whole. I believe this could really move the needle for index coop in terms of AUM. I am looking forward to seeing this Index being a reality.


Hi @Thomas_Hepner and @Kiba

Sorry for the delay in getting back to you on this.

I must say I like the changes, it’s clear you’ve considered the feedback and thought about how to address it. :pray:

I like having more components as 4 certainly felt like it was too concentrated and I don’t see a problem with using renFIL - (There is a larger pool of liquidity behind that bridge and Uni v3 would have solved some of the problems we had with wDGLD in CGI).

Thank you.

One technical note:
Any deviation from pure market cap (liquidity factors/caps) actually results in more rebalancing being needed.

e.g. If LINK is 25% and underperforms the rest, then we will be buying it (and selling more of the others) at the next rebalance. Likewise, if LINK overperformed to become 30% then we will be selling Link and buying the rest.

[Pure market cap is sooo much simpler]

I’m not saying we should do away with the 25% cap on DATA (or DPI), just that there is an impact on the rebalance size - Rebalancing automation is something the EWG are working on (and Quarterly rebl;ances reduce the frequency of such work).


I had this exact idea just last night. Thank you for taking the time to work through all of the details. I think the $DATA index will be crucial.