# The Methodologist Negotiation Process \[Sept 2021\] **URL:** \ **Category:** Growth\ **Created:** [28 September 2021 21:03 UTC](https://gov.indexcoop.com/t/the-methodologist-negotiation-process-sept-2021/2806 "2021-09-28T21:03:00Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![setoshi](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/setoshi/32/54_2.png) [@setoshi](https://gov.indexcoop.com/u/setoshi)\ **Post date:** [28 September 2021 21:03 UTC](https://gov.indexcoop.com/t/the-methodologist-negotiation-process-sept-2021/2806/1 "2021-09-28T21:03:00Z")
**Authors** : @setoshi @BigSky7 @scott_lew_is **Reviewer** : @Pepperoni_Joe _ **Edited October 6, 2021** _ **Situation** Following up from [The New Path Forward for Index Coop’s External Relationships](https://gov.indexcoop.com/t/the-new-path-forward-for-index-coops-external-relationships/2746) post, we are proposing an explicit process for achieving a mutually agreeable outcome where we embark on a 2-week process to 1) gain common ground / understanding and 2) explore deal terms / generate a proposed solution. We propose a process that we hope exemplifies our core values (compliance with the code of conduct / is inclusive), creates a safe space for discussion, and gives the best possible chances of generating a fair agreement (one where the other party will justifiable take the other side). Specifically, we define the following terms: - **Fair Agreement** : A deal where the other party will justifiably take the other side. - **Code of Conduct** : Discourse must be respectful, without blame, judgmentalism, etc. - **Inclusiveness** : Conversation is open and community members feel heard. **Ground Rules** - All parties will have signed the [Index Coop Code of Conduct](https://gov.indexcoop.com/t/discussion-affirming-our-code-of-conduct-and-guiding-principles/2404). - All parties commit to being present for the agreed upon meetings. - All parties commit to working together productively to find a solution. - If no fair agreement is reached by the deadline or ground rules are violated, parties may choose to terminate any engagements with working with one another. **Clarification and Justification** These meetings will take place on the following dates to gather the necessary inputs to reach of fair long-term resolution - **[Week 1] Build Empathy and Common Understanding (Therapy / No numbers or terms discussed)**: Sessions to allow each party to share their perspective to help clearly define. Deliverables include: - Ideal end state of the relationship between DFP \<\> Set \<\> IC. What does winning look like for all parties? - Issues list for DFP, Set, and IC - Positions List (Must Haves, Can’t Gives, Strong Relative Desire, Strong Relative Indifferences) for DFP, Set, and IC - These will be consolidated and posted to the forum ([Index 2.0 example](https://docs.google.com/spreadsheets/d/1Z6XzKX_ef4Smc_YVkVxK_cnFUSlKXXK6bEFiMKwiIaY/edit#gid=0)). - **[Week 2] Problem Solve, Generate Deal Terms, and Close**: Sessions allow parties to discover potential deal terms / ideas, discuss value-creating solutions, and consolidate them into a single set of terms. Deliverables include: - New deal terms are agreed upon and laid out to the community in a public forum. - New deal ultimately drafted and to be ultimately voted upon via IIP (hard process). **Proposed Meetings and Attendees** | Date | Attendees | Topic | Deliverable | | --- | --- | --- | --- | | **Week 1** | **Building Empathy / Common Understanding** | | | | _9/29/2021 Complete_ | **Negotiation Kickoff Event** [open community call via Leadership Forum] | Explain the methodology negotiation process. Community brainstorm key non-negotiables and questions for DFP | IC non-negotiables. IC questions for DFP | | _9/30/2021 Complete_ | **Set’s perspective** Scott (DeFi Pulse) / Set Representatives Facilitator: Felix & Simon | Building empathy and a common. | [Consolidated list of Set: issues, positions list and Ideal end state](https://docs.google.com/document/d/1kvfxJ6ogqXGxdL02snR5QiDVZVP5J_cR5bI2Pvfcn2c/edit) | | _9/30/2021 Complete_ | **Simon Perspective** Scott (DeFi Pulse) / Simon | Building empathy and a common. | [Generated positions list](https://docs.google.com/document/d/1EuCYUsGlnMdES81K1nKcasn_ebSe4FFTWBW5y1eSn5E/edit) | | _10/1/2021 Complete_ | **Product WG’s perspective** Scott (DeFi Pulse) / Alex Cavalier (Product Working Group Representative) Facilitator: Felix & Simon | Building empathy and a common understanding. | [Consolidated list of DFP: issues, positions list and Ideal end state](https://docs.google.com/document/d/1A5liu2DKbcRLcxWumgr2_n0_8um5Dwy5_vq_mQE0eHw/edit) | | _10/4/2021 Complete_ | **Index Coop’s perspectives** Scott (DeFi Pulse) / Nathan Howard (Working Group Leaders Representative) Facilitator: Felix & Simon | Building empathy and a common understanding. | [Consolidated list of IC: issues, positions list and Ideal end state](https://docs.google.com/document/d/162IK0BtqtLR4fBEddv8wvUxgkJp3rExpVtcXGsoRHtI/edit) | | _10/5/2021 Complete_ | **DFP’s perspectives** Scott (DeFi Pulse) / Felix, Simon, Nate | Building empathy and a common understanding. | [Consolidated list of IC: issues, positions list and Ideal end state](https://docs.google.com/document/d/1k94kFGKX4nB-kQIWLIA30PVwlk81Q7I61YeLf1JcH6g/edit) | | **Week 2** | **Deal Terms, Problem Solving and Closing** | | | | _10/5/2021 Complete_ | Scott (DeFi Pulse) / Simon + Felix + Nathan Howard (Community Representative) | Consolidate common understanding and confirm all existing positions | Synthetized / reviewed issues list | | 10/6/2021 | Scott (DeFi Pulse) / Simon + Felix + Nathan Howard (Community Representative) | Brainstorm Major deal terms | Draft of suggested deal terms | | 10/7/2021 | Scott (DeFi Pulse) / Simon + Felix + Nathan Howard (Community Representative) | Discuss Deal Terms | Iterated deal terms | | 10/8/2021 | Scott (DeFi Pulse) / Simon + Felix + Nathan Howard (Community Representative) | Finalize outcome | Forum post of outcome | **Representative Decision Process** - No later than 9/30/21 Product Working Group and Working Group leaders will select one community representative to take part in the process. - Nomination form will be circulated to Product and WG Leaders. **Open Questions to Explore** - Terms-Related - What are the rules of exclusivity between the Index Coop and methodologist? - What is a fee split methodology that works that includes labor / work inputted, costs, etc? - What type of contribution does the methodologist bring to the table? - What type of contribution does Index Coop (the sponsor) bring to the table? - What type of contribution does technology providers bring to the table? - How do we deal with unforeseen circumstances once an agreement has been made? - How do we decide if a product needs to be shut down? - What will Index Coop and Set do to protect the brand / quality of methodologies? - Does Index Coop have a subsidiary license to pursue additional opportunities? - What is the definition of how revenue is split? If fees are split after gas, how is that calculated and performed? - Who can decide whether or not changes are made in the product? - How can parties exit if they cannot honor the agreement anymore? - Business - If Index Coop fails, why did it happen? - If Index Coop succeeds, why would that be the case? - If Index Coop succeeds, what is the greatest accomplishment? - For Set - Does Set want to diversify away from DeFi Pulse? - Does Set feel unfair about the implied fee split they are receiving? - How much transparency does Set provide to enable monitoring of products? - What does Set look for in a partner it seeks to engage with? - For Index Coop - What are the rules of IP protection Index Coop needs to enforce to attract and retain the best methodologists? How broad can IP protection be? - What does Index Coop look for in a partner? - How do we set the long-term strategy for IC - For DeFi Pulse - What role does DeFi Pulse want to play in the business process? - How much ongoing maintenance is DFP expected to provide for a product at various stages? ---
**Author:** ![fallow8](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/fallow8/32/607_2.png) [@fallow8](https://gov.indexcoop.com/u/fallow8)\ **Post date:** [6 October 2021 21:12 UTC](https://gov.indexcoop.com/t/the-methodologist-negotiation-process-sept-2021/2806/2 "2021-10-06T21:12:47Z")
An update from myself and @setoshi, @BigSky7, @scott_lew_is , @Cavalier_Eth **TLDR: So far, everything is largely going as planned.** - For the first time, community members and DeFi Pulse were able to directly engage, share frustrations, and communicate core issues within the relationship. - All the important stakeholders including Scott (DFP), Felix (Set), Simon (IC), Alex (PWG) and Nate (IC) attended their respective meetings (which lasted 0.5-2 hours each) - Logistics were executed well, as we were able to get the proper representatives quickly and have them prepared for all the meetings - Details on transpired events / schedules, and interview transcripts / positions can be found in the updated post above. **Some of the key insights are:** 1. **We are all growth focused** - Each organization is highly focused on the long-term and exponential growth of Index Coop. - We see the opportunity to become the clear market leader for the global crypto asset management sector. 1. **We all want Index Coop to win the market and do things the right way - setting a generational example that defined the best in the rise of DeFi.** - Throughout the course of the individual interviews one thing became abundantly clear - everyone involved in Index Coop is committed to making the world a better place: (i) We do this by making crypto investing safe and accessible for everyone and (ii) There are a lot of bad actors in crypto - we all strive to be a force for good - This commitment leads to the high level of passion across all parties 1. **We are all frustrated by zero-sum games, conflicts of interests and misaligned incentives** - Everyone across the board highlighted their frustration when previously collaborative situations became antagonistic - Designing a game that allows all participants to collaborate instead of competing was continually raised as a key focus **Next Steps** To be able to drive towards a new arrangement and set of deal terms, three meetings will be held this week between Scott, Felix, Simon, and Nate where we discuss roles, responsibilities, values, and agreement terms. * * * **Points of Agreement** The Coop needs to be a reliable partner and must have reliable partners - “We need confidence that you can scale a business around this relationship.” Scott - “Committed engagement from Methodologists to negotiate and/or problem solve as arrangements wander from expectations.” Nate Of the time spent working with partners we spend significantly more time managing inter-organizational relationships than actual building. - “Signal to noise ratio is too high. Lots of takes, vs accountable decision-making.” Alex We need to do a better job assigning things priority and scrutiny - “Basically there should be a high-scrutiny to addressing new things and giving them scrutiny. Fair may be the goal but equitable is fine.” Scott - “People working together to make a vibrant community a reliable partner.” Alex **We want to do things the right way** - “Being part of the effort in building a good steward institution. Winning a market as the good guys. Building something that is done the right way. Needs safe and effective ways for people to invest.” Scott - “A plausible path for Index Coop to be a major financial institution that does things the right way and viewed as a generational example that defined the best in the rise of DeFi.” Simon