My two product approach was not to build an entirely separate set, but was a “vault model” based on Yearn. DPI can be deposited into the iDPI vault. Any number of strategies can be used to put the underlying tokens to work, and the yield is converted into more DPI units. The INDEX token would govern the strategies used and can balance the tradeoffs between meta-governance and return.
If we do split, I would strongly advocate leaving the existing DPI alone and creating a new one that is opt-in. Customers purchased a specific product and vision and to force them to upgrade is poor UX.
As for the BD/Legal side of things. We have received advice from a leading US firm, Reed Smith LLP (@Metfanmike can correct me but they are working on a memo for us on the legality of DPI without IP), and clients of mine have received advice from another leading firm Latham & Watkins. They both had strong reservations against adding IP to DPI. Given these firms are very closely connected to major exchanges and work with some of the top crypto projects & VCs and advise many custodians, market makers, and other players I take their opinions seriously. @Metfanmike can give more insight into our efforts at Coinbase and some of their specific requirements but there was some damning evidence in the Discord showing how this could endanger many of the partnerships and initiatives the Investor Relations team has been working on for several months.
This is not hypothetical, there are several US-based firms and individuals that own DPI that will be forced to liquidate their holdings should this pass.
To those who say "DeFi is extra-governmental and we shouldn’t let laws or other regulations dictate our strategy, NGMI playing into the old system, we make the rules" :
I am against adding IP as I think it is an unnecessary addition that will endanger DPI’s ability to be accessible to everyday investors, violating the core mission that we read at the start of every weekly standup.
We’re on a mission to make crypto investing simple, accessible, and safe for everyone.
Telling 45M Coinbase users “NGMI”, isn’t making crypto investing accessible to everyone.
Telling institutions and other holders who bet on our vision and product, but want/need to stay compliant “NGMI” isn’t making crypto investing accessible or safe.
Telling responsible investors who want an easy entry point to DeFi who follow good practices DYOR, research, and understand risks/rewards of complex yield strategies “NGMI” isn’t making crypto simple or accessible.
There is no simpler, easier, safer, and more accessible passive DeFi strategy than just holding tokens.
To cut off new users, force early holders to make uncomfortable legal decisions, and add additional smart contract and economic risks for 40-50 bps is a violation of our mission and sends the message that we are building products for the DeFi native and not the everyday person.
With IP today the following does not happen: Goldman Sachs doesn’t make a $200M buy (@BigSky7 mentions this a lot). Jessica in Tucson AZ doesn’t buy it because they don’t see it on Coinbase. Aiko doesn’t buy it because they can find it on bitFlyer. Joshua dipping their toes into Crypto/DeFi doesn’t buy it because they can’t understand how it works.
I hope the Index Coop stays true to its mission and principles and considers the people not in the forums, not in the discord, and not currently using our products, as they are the target market.