Bankless Indices
Authors: @0xLucas
Squad: @Airbayer, @LemonadeAlpha, @FunkMasterFlex, @Bo, @bgov
Date Created: December 2nd, 2021
BACKGROUND
Bankless DAO has been working with the Index Coop to launch one-click index products for the crypto ecosystem. This has culminated in the BED index and the soon-to-launch GMI index.
We currently have a group working towards growing these indexes and are requesting remuneration for the work. To date, the index growth team has pursued treasury diversification via the BED index to bootstrap the initial liquidity. We’ve seen a significant amount of success with these efforts, resulting in treasury diversifications from UMA, Pickle Finance, Visor Finance and others.
This is an active collaboration with the Index Coop’s treasury diversification team to double down on this initiative and push the ball forward.
MISSION & VALUES ALIGNMENT
Bankless DAO’s goal is to onboard billions of people into crypto. Index products are a great avenue to achieve this. They enable new users to get easy, set-it-and-forget-it exposure to emerging trends in the crypto economy. As such, we’re closely working with the Index Coop to design, launch, and market these products to the world.
SPECIFICATION
Bankless DAO has already launched one product for the Index Coop in July 2021, the BED index. This is an equal-exposure index to the main themes in crypto: digital gold (BTC), programmable money (ETH), and Decentralized Finance (DPI). The DAO receives a 50/50 split on the 0.25% streaming fee. We’re in discussions to double this fee in the coming future.
The Bankless DeFi Innovation Index ($GMI is the second product from the DAO and is set to launch in early 2021. The revenue split will be 40% of the 1.95% streaming fee.
FINANCIAL IMPLICATIONS
BanklessDAO Index Growth Squad Budget Request for Season 3
The BanklessDAO Index Growth Squad main priority is to scale the BED and GMI Index.The aim of this budget is to set aside an allocation to pay for the operational costs and sales bonuses for the working group.
- 0xLucas - Methodologist + Marketing
- Airbayer - Business Development
- AlphaLemonade (Index Coop) - Methodologist + Marketing
- FunkMasterFlex (Index Coop) - Business Development
- Bo - Business Development
- Ben Giove - Methodologist + Marketing
The total budget request for the Index Growth Squad for Season 3 is 750k BANK per the summary below.
Index Growth Incentives: 500,000 BANK
This allocation will be distributed via an open program for participating in Bankless Index initiatives–stuff like liquidity mining, airdrops, etc. The exact program will be determined by the working group following the approval of the proposal.
Business Development: 25,000 BANK per person (3x) + 125,000 BANK bonus Pool
Sales incentives for selling Bankless Index allocations to treasuries–similar to UMA’s $1M BED sale, Pickle Finance’s $100K diversification, etc.
- Sales Bonuses: 125,000 BANK
- Target: $2.5M in treasury sales
Bonus Reward Structure:
- 5,000 BANK - $100K treasury sale
- 10,000 BANK - $250K+
- 25,000 BANK - $500K
- 50,000 BANK - $1M
Methodologists: 25,000 BANK per person (2x)
Total: 750,000 BANK