This is a proposal to Metafactory DAO to make a proposal to the Index Coop DAO to create and manage a token index that tracks the NFT market. Index Coop launched earlier today and already a few people have asked for an NFT index, I think MF is a great community to help run it.
Pros:
Even if the proposal fails, we will attract DeFi users to our site, generating sales.
It will make us a leader in the NFT x DeFi space
We will manage a platform that lets us promote brand factory tokens
It is another revenue source for the DAO
The clout makes us a schelling point for people looking to get into NFT space or collab between NFT and DeFi
You guys are the NFT experts but these are the tokens I can think to add off the top of my head:
$WHALE
$ENJ
$MANA
$RARI
I don’t think we should add $ROBOT to begin with as a sign of good faith that we aren’t trying to pump or promote ourselves and also we are pretty unknown to the broader crypto community so I don’t think it will instill confidence in people that have heard/seen the tokens I listed before.
The NFT token Index will have the ticker $NFTI
We can take some time to discuss the exact tokens and % allocation but I think we should have a fully drafted proposal by Friday (10.10.2020) because someone is already working on making their own proposal @NFTpulse
Edit: My first draft for the $NFTI proposal. Let’s do this!
The Mask Match thing is also a good one to highlight since we had 10+ prominent crypto artists involved.
In terms of other tokens, maybe SAND or LAND? Or CV parcels? Not sure if we can have NFTs as a part of the index.
You have my approval, unless anyone has anything against this I say we move forward with the proposal at least. If we need to make any binding agreements or finalize anything we can put it to vote, but for now lets charge forward.
The Index Coop governance portal is here. Their team said they will release a proposal process for indices soon so we should wait for that to make sure we comply.
Do you have a good link for Mask Match? I only chose things that had big engagement on twitter for social signaling. If a big artist made a post about it that would work too.
I’m 90% sure NFTs can’t be added directly, only ERC20s since it’s a copy trade protocol like Yearn vaults. SAND is a good addition. LAND is the NFTs for SAND right?
The only “agreement” is giving them the DAO treasury address so we can get paid as far as I’m aware. The Index Coop DAO is technically always in charge of the $NFTI index but we should take an active role in managing it for the forseeable future. Our proposal would be 1000% more likely to pass if we can get other artists, WhaleShark, $MEME, etc. to tweet in support. If you and the other artsy peeps could do outreach that would be awesome. Since it requires external communication as the DAO I would suggest a soft vote on discord and secure some community support before the proposal is made.
I still have to figure out exact % of token allocations but that’s pretty trivial since there’s only a handful of options to begin with, we can’t really go wrong.
So even if MetaFactory proposes the index and we “manage” it, Index Coop is still responsible for everything, we personally have no liability, time commitment, etc. besides what we want to put in.
I’m totally fine taking on the “protocol politician” role for MF on this but I will definitely ask you guys for advice/knowledge on what tokens to add/remove since you are the experts in the space. (assuming our proposal passes)
Including whack platform tokens like Decentraland could make us look bad to artists -> This is for consumers and we need bigger name brands to get this passed
Create other indices for social tokens, wrapped NFTs, etc. and compose into $NFTI index -> will include this plan in proposal but lets keep initial proposal scope small to get it passed and build momentum
What will token allocations be and what is rebalance strategy -> Idk, I’ll figure it out and it to the proposal
MF core will discuss $NFTI index with the platforms and gauge their interest and see if they will support it before we submit proposal to Index Coop.
Think that was everything. Thanks for the support guys This is could be a big strategic move for us
Which tokens to include and their allocations is still up for grabs (I put in some numbers based on the call). Since our selection reflects our brand we should make sure our community is aligned on all the tokens included even if it means excluding tokens some members strongly agree with. If we can’t come to consensus in conversation we can try ranked choice voting, conviction voting, or some other method with top X tokens going into the index.
It looks like the Index DAO will be focusing on the DeFi Pulse Index for the time being but I told the author of MetaVerse Index that we might consider promoting it once it’s been completed and passed by their DAO and we have another MF DAO vote about it.
