Wednesday’s Leadership Forum featured a discussion of Incorporation of the Coop, which passed on Snapshot in one of the most overwhelmingly “for” votes of all time. On Thursday, Growth Nest talked about Rewards.Index, our proposed incentivization platform hitting the Forum soon.
No meetings tomorrow. Monday, we’re back with the Biweekly update followed by Tuesday’s Money Talks and How We DAO on Twitter Spaces. Also tomorrow, sCoop Weekly. Check it out.
- INDEX Delegation Intentions and Next Steps @setoshi
- IIP-154: Delegate Aave to Governance House EOA for DPI Aave ARC listing @funkmasterflex
Leadership Forum slides
Up first is @Metfanmike and our lawyers from Fried Frank discussing Incorporation of Index Coop. Here’s the proposal and here’s the Snapshot. In one of Index Coop’s most overwhelmingly decided votes, $INDEX holders voted 462k to 24k to incorporate the Coop. Let’s do this thing.
First, let’s talk benefits of incorporation:
- Creating limited liability protection for contributors. Our current structure creates unnecessary risks that we should move immediately to mitigate or outright eliminate
- Opening the door to more partnerships and off-chain activity with organizations that will only enter into a contract or engage with an actual legal entity
- Compliance with applicable tax laws
Our approach will be three-pronged:
- Isolate profits in a juridical entity (typically a foundation organized in the Cayman Islands, which do not impose corporate tax)
- Treat the DAO as a voting arrangement that does not share in profits, but instead advises the juridical entity on how to deploy those profits, so that $INDEX holders are not treated as shareholders of the juridical entity
- Take measures to ensure that the juridical entity is not engaged in a US trade or business for US tax purposes and thus is not subject to US corporate tax.
Next up: Updates from the Council. 4 announcements:
- Dev will take over as Council Steward for the month of May.
- The Compensation & Incentive Framework will be updated by the end of May, with the goal to create alignment across the org and compensate impactful contributors fairly. This includes DSM, incentives, options, and paid leave, but is built on the existing structure.
- Mid-Season Nest-level restructuring is not planned.
- Product vision is nearly done. We want to share partners before we announce it publicly.
Lastly, we discussed the two vacancies on the Council. Ah, to remain at 5 seats or vote 2 more Contributors in to get us back up to 7—a heated discussion. We settled on a binding Contributor-only Snapshot vote—vote here. You got 2 days.
Rewards, incentives, airdrops—big buzzwords these days (you didn’t miss out on the Optimism drop, did you?). web3 projects can offer equity or ownership in the project through their native/governance token, which makes reward receivers more likely to act how we want them to (as fans, buyers, etc.). And we’ve got a draft name for ours: Rewards.Index (if you have any ideas for a new name, pls help).
In collaboration with ARCx, the initial offering provides IC product holders a recurring airdrop and additional amenities. In an ideal world, Rewards.Index ignites a flywheel:
Let’s look at incentive programs in the ecosystem:
- The Past: Liquidity Mining
- The Present: One-time Airdrops
- The Future: Recurring Airdrops (Optimism and Rewards.Index).
So we’re trying to maintain a healthy ratio of Customer Lifetime Value (LTV) to Cost of Acquiring a Customer (CAC). Why might Index Coop use an incentive program? Simple: to increase TVL and revenue. How?
- Acquire new customers
- Reduce churn rate of existing customers
- Increase holdings of existing customers
This incentive program is not a silver bullet for attribution, but it offers some interesting granular ways we can dig into the data. To validate the success of the program, we’ll track:
- Wallet connects on the landing page to check eligibility
- Source URL trackers on content
- Clicks on social media links, e.g. Discord, Twitter, Website, etc.
- Eligible address claim percentage
Finally, budget + Funding: 3-6 month trial at 25-33% of monthly revenue (~$72-96k); denominated in INDEX and funded from INDEX reserves in treasury or from purchasing requisite INDEX with revenue on open market. Next steps are collecting feedback th-en posting to the Forum, followed by a vote on Snapshot.
Monday Meetings: (UTC)
1700 - Biweekly Standup
Tuesday Meetings: (UTC)
1300 - Product Checkpoint
1600 - Money Talks on Discord
1800 - How We DAO ft. Chase Chapman & coolhorsegirl on Twitter Spaces
Daily DAOwlpha: “DAOs have yet to have their breakthrough moment - @JulzRoze