I think 5% is reasonable and it would drive a ton of value for sure.
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Where are we on this and what needs to be done to get this moving? Are we at a point where we can take a vote to snapshot?
I get that itâs more important to drive TVL into the indices than value into NDX but IMO those goals are one in the same. Canât incentivize people with NDX if NDX has no valueâŚ
Until NDX has some reason to hold it, the economic equilibrium will be off and the value of the incentives will continue to drop, along with TVL.
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I totally agree on this, I think the NDX token needs to be backed by revenue. Vanguard charges very little, but on a large amount. Why wouldnât each index charge .25 basis points or a 1/4 of 1% annually. That is really fair and as indexed.finance grows and TVL grows we could drive that fee down under .10 basis points like Vanguard.
This stuff is incredibly complex and powerful for new user adoption, we need indexes as there are so many coins. Backing NDX with revenue and governance power creates tremendous value for the platform.
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I understand the idea, but I think 5% would be very high and prohibitive. I think the better mechanism is a smaller annual fee charge on total assets like .25 basis points. Indexes you want pure exposure and requiring 5% of NDX in it, clouds the index.
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I think another thing that would be compelling is being able to borrow against our positions in the index. Borrowing against 1 coin that is a non-stablecoin has a lot more risk. An index coin should in theory provide a smoother ride for someone wanting to stay long a basket of holdings.
We should push as users to getting listed on AAVE, Celsius, Nexo, Blockfi, etc.
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Maybe create a new thread for this? Great idea. I use Nexo myself.