Six months have passed since our initial introduction on the Index forums. At that time we had outlined what could become an INDEX pool for Paladin and received a lot of feedback, especially from a small minority of contributors worried about the lack of guardrails. Our initial intention was to enable more people to access meta-governance and make Index’s more obvious. This is still our main goal.
Since context has evolved a lot both internally and externally for Index :
- INDEX price has been divided by 6, showing the market does not understand the value proposition of the token;
- Proposals were made to centralize the overall meta-governance power of the Coop into external entities;
- Large holders (namely 1kx) have delegated enough voting power to the council (A) to create a soft veto power;
- There is a growing competition of meta-governance assets (Convex, Redacted, etc…);
- The broad market downturn will reward projects who have a clear value proposal.
We believe an influence market has now become a necessity for the Coop. This will not simply come under the form of an INDEX pool but in a more complex project. We are working on creating an aggregation layer of governance enabling users in need of governance power to automatically find out the optimal path to their needed voting power.
Today we’re focusing on AAVE voting power because of its governance activity but if this approach proves to be effective it can easily expand to other tokens managed by the Coop.
Example of how this would work:
DAO X wants 80,000 AAVE voting power to create a proposal to list the asset. On the Paladin interface we will route them through vote lending, lending and market buys to reach that threshold for the minimum price.
In theory, that minimum price will always be INDEX vote lending, for as long as the market does not price it correctly.
We will first start by deploying an INDEX pool and then introduce the second part of the infrastructure progressively.
Here is an outline of the entire MetaGov proposal process starting from the base pool:
We would like to introduce a new type of proposal called Index Metagovernance Proposals (IMP). This type of proposal would aim to enable the Gov Nest to create a proposal in another governance Index has proposal power on in the name of the proposal creator.
The IMPs would have the same proposal level and quorum level as other IIPs.
We are posting this as a measure of courtesy and to collect extra feedback that the Coop believes could make the broader plan more efficient.