I want to start this off by saying that this proposal sets the standard for future Index proposals. This is the exact level of quality and attention to detail our community should expect from future proposals.
From reading through the comments these seems to be two main concerns:
- Defining economic activity is difficult and the value of using it as an inclusion criteria is uncertain
I tend to agree here - for these broad thematic indices investors want extremely transparent methodologies that are also conceptually simple. Investors from all backgrounds value the simplicity of methods like market weighting because they are well established and battle tested in a variety of market conditions. The only real variable is the data input. Adding another layer of complexity of selection may also add another layer of un-anticipated risk.
For broad thematic indices I tend to support this approach. With that said - if you guys’ strongly feel like this is necessary it definitely warrants further discussion.
- The current token basket feels limited
Spending some more time hashing out exactly what tokens we want to include would be very helpful. I see a strong argument for sidechains and potentially select L2 infrastructure being included in this indice.
With that said - I am strongly in favor of moving this forward. I also see this as an opportunity to quickly release an index that has clear market fit and minimal engineering requirements. Our bias needs to be towards simple solutions and simple implementations. I would rather get v1 of these indices out the door than spend unnecessarily time speccing out more elaborate architecture.