Index Cooperative: Revolutionizing Crypto with Decentralized Indices
Imagine a world where investing in crypto is as simple as holding one token. Welcome to Index Cooperative.
Index Cooperative, a community-led decentralized organization, is pioneering the creation and adoption of crypto index products. Their flagship product, the DeFi Pulse Index (DPI), sets the stage for offering broad exposure to decentralized financial assets by holding a single token.
Established in September 2020 by DeFi Pulse and Set Protocol, the DPI quickly proved its value. By October 7, 2020, it amassed $2 million in assets and attracted 1300 unique holders — showcasing early product-market fit.
Metagovernance — A New Era
On November 18, 2020, Index Coop rolled out its first metagovernance proposals. This innovative feature allows INDEX token holders to influence votes on key protocols like Aave through the cooperative’s Snapshot page. Remarkably, by November they were already the third-largest voter on Aave’s improvement proposals.
The Power of INDEX Tokens
INDEX tokens are more than just another cryptocurrency; they are governance tokens empowering holders to vote on critical decisions within Index Coop. Whether it’s smart contract upgrades or treasury allocations — each token signifies influence over the cooperative’s future. With a capped supply of 10 million tokens, 70% are distributed within the community via liquidity mining programs and treasuries.
Token Inclusion Criteria
The DPI isn’t just a random collection of tokens; it’s carefully curated based on stringent criteria:
- Descriptive Characteristics: Must be an Ethereum-based DeFi protocol.
- Supply Characteristics: Predictable supply over five years and at least 5% currently circulating.
- Project Traction: Proven utility and significant usage with no Ponzi scheme characteristics.
- User Safety: Security reviewed or proven reliable through long-term operation.
Monthly Rebalancing
Maintaining index integrity requires diligent monitoring and monthly rebalancing:
- Determination Phase: Occurs during the third week; changes for reconstitution are assessed.
- Reconstitution Phase: Adjustments based on determination phase findings happen on the first business day each month.
In November 2020, Index Coop executed their first trustless rebalance for DPI using audited contracts by ABDK Consulting — a testament to their commitment to security and transparency.
Community-Centric Incentives
To foster innovation: — Liquidity Mining Program: Allocates 9% of INDEX tokens over two months without vesting requirements. — Index Methodology Bounty: Rewards successful methodologists with prorated monthly distributions from contributed fees. — Community Treasury: Holds 5% immediately available with linear vesting over three years for remaining funds.
Index Coop’s forward-thinking approach doesn’t stop there — dedicated teams receive allocated shares vested linearly every Ethereum block over three years ensuring sustainable growth and development.
Are you ready to simplify your crypto investments? Dive into structured products that make investing accessible and secure while being part of a revolutionary community-led initiative that’s reshaping decentralized finance!
How do you see decentralized indices shaping the future of crypto investments?