Date: 1st March 2024
Stage: RFC
Product: Index Coop Artificial Intelligence Index (icAI)
Author: @MrMadila
Reviewer(s): @allan.g, @anthonyb.eth
Description
Artificial Intelligence (AI) and subsequent narratives have exploded into the public domain, with many expecting an intersection between AI and crypto. Several crypto projects (as listed in the CoinGecko AI category) have either pivoted to AI, include AI in their roadmaps, or are new AI-specific projects.
Tracking multiple projects in such a nascent space is complex and time-consuming for many investors potentially seeking exposure.
The Index Coop Artificial Intelligence Index (icAI) will provide diversified exposure to the top tokens within this specific category with a square root market capitalisation weighting to provide stability in the category leaders and long-tail exposure to emerging projects.
Constituent tokens must adhere to the criteria in the example methodology below.
Composition
*30-day moving average as of 19th Feb 2024
| Symbol | Name | Market Cap | Weight |
|---|---|---|---|
| RNDR | Render | $1,697,421,497 | 22.90% |
| FET | Fetch.AI | $638,585,693 | 14.00% |
| AGIX | SingularityNET | $372,377,575 | 10.70% |
| OCEAN | Ocean Protocol | $273,438,151 | 9.20% |
| TRAC | OriginTrail | $301,242,966 | 9.60% |
| GLM | Golem | $213,192,309 | 8.10% |
| ARKM | Arkham | $111,543,192 | 5.90% |
| RLC | iExec RLC | $168,815,662 | 7.20% |
| PAAL | PAAL AI | $104,013,216 | 5.70% |
| AIOZ | AIOZ Network | $150,680,642 | 6.80% |
| Total | 100% |
Example Methodology
IcAI aims to provide diversified exposure to the emerging AI/crypto ecosystem/s. To be included, tokens must have the following attributes:
- Must be an ERC20 on the Ethereum blockchain*
- Must be listed in CoinGecko’s AI category
- Must have a market capitalization of at least $50m
- Must have been in circulation for at least 90 days
- Must have at least 30 days of total market cap data
- Must have an MC/FDV ratio greater than or equal to 20%
*If a token is not an ERC20 on Ethereum but is very significant to the AI theme, and cross-chain technical solutions are deemed secure enough, non-ERC20 assets may be considered.
icAI will follow rules to reduce excessive complexity and operational burden that can contribute to poor execution of rebalancing and high issue/redemption costs for users.
- icAI will have a maximum of 10 constituents
- Constituents in icAI will have a minimum weight of 5%
The composition will be weighted by square root market capitalization according to data provided by CoinGecko. Data collection will occur five days before the rebalance date, and UMA will provide new weights. The index will be rebalanced via Dutch auction over 24 hours on the first weekday of each quarter starting at 00:00 UTC.
Example Backtest
The chart is modeled based on the criteria above, starting with eight tokens in Q3 2023 and rebalancing them in Q1 2024 by adding two more qualifying tokens.
Past performance is never an indication or guarantee of future performance.
Open Questions
- Should projects be vetted beyond CoinGecko categorisation?
Please provide any feedback or questions that you have regarding icAI. The Index Coop product team will incorporate this feedback into a final draft for an IIP, which, if successful, will send icAI to the pre-sale process.
Would you buy icAI?
- No
- Yes, less than $10,000 USD
- Yes, more than $10,000 USD