Indexed has seen many battles, from getting started from just 2 people, to managing $millions in assets, with the leading index assets in the space, to devastating hacks and a long, slow death from apathy from both the community and the team as legal battles, protocol and front end problems and general burn out ended with the protocol being for all purposes dead. But to that, a strong community, strong underlying foundation and a vision for a space with easy to use ways to have reliable, safe and easy to use ways to benefit from the general market performance. To do this we need to fundamentally change every aspect of the protocol and start from a fresh slate, specifically as far as the governancy, tokenomics, mindset and targets are concerned. As such the following is being proposed.A new brand @ Index Protocol and a new token.
A new token is needed to address 3 key problems. Distribution, incentive structures / tokenomics and the utility and foundational economics. The new token Index (NDX) will be the core token for the rebrand to Index Protocol from Indexed Finance, keeping to the spirit of where we came but with a fresh start to build from it, rather than try continue it. The token will be airdropped to past and current holders based on the distribution found in Airdrop. This is done to ensure that the community are preserved for their current value and stake, being transferred to the new protocol, but allowing for current stakeholders (which have not done much to continue the project) to not have large and outsized benefit, without contributing to the new protocols health and development. Allowing fair amounts relative to the total supply to be used for new people, fresh ideas and incentives.
The NDX v2 token (to be NDX from here forward) will be distributed as follows
1,000,000,000 total supply
Used by the team for hires, compensation, funding, operational costs and needs, discretionary budgets for expenses and campaigns, marketing, incentives
150,000,000 NDX v1 allocation
Tokens will be airdropped to holders in the Indexed v1 ecosystem with the following rates, the actual amount will need to be found after analysing total token holders at the times
the rate per user will be determined by
Total 100,000,000 allocation / (NDX holders at just before the hack + Index Token Holders (CC10, DEFI5, ORCL, DEGEN and the others) at just before the hack + NDX holders at Feb 5, 2023 + Index Token Holders at Feb 5, 2023)
This effectively distributes tokens to users evenly and fairly, without oversized rewards for whales who are no longer aligned, past contributers that are no longer active, but treats everyone as one vote in the new system, however with bonuses for how active these holders were in the past for holding not only NDX but also the Index tokens that powered the network. The tokens are not compensating hacked token values in $, or swapping NDX tokens for the new tokens for 2 reasons
The hacked value for tokens has droppped considerably and compensating at 1 to 1, or trying to pay $16,000,000 when the new projects not even started and having a large debt is not healthy for actual growth. Further this money can be retrieved through the court systems by parties affected as the identity for the hacker are known, a warrant is out for their arrest and so it would not only outsize the compensation for some users more than others given that the NDX price is 1/200 that of the $16m lost, but also not be effective as there are already ways for those losses to be compensated through the legal system by the attacker that actually stole the money from those affected.
Many tokens were distributed to participants for v1 in large stake, and so would be rewarding those in an outsized way compared to new users who actually contribute to the new protocol, and give those users a stake in the new protocol not those who no longer provide any value.
Unclaimed tokens will be sent to the Treasury after a 6m claim.
250,000,000 Treasury LP
This allocation will be used to allow for liquidity controlled by the treasury and as such by the holders of the governance token being in control of the assets in the LP. These assets will be used towards LPing the indices, NDX to earn fees from Uniswap and other markets, fund proposals, and general needs for the DAO.
250,000,000 Treasury allocation
100,000,000 Community Fund
Used towards community uses, partnerships, bounties, giveaways, incentives, and other such uses by an independant community fund.
150,000,000 Future Sustainability
These tokens will be reserved for after the 1st y for team/operations and be distributed on a 3y vest, every 6m.
To help hire people, pay operational costs for new deployment, dev and other resources the non-NDX assets in the current Treasury are proposed to be used as a team budget so that non token assets are able to be used until the new token launches. This includes about $90,000 in assets, allowing for a decent budget to get to a brand new launch with new token and indices/front end.
A New Mindset
Focus will be taken back to the core that fueled Indexeds success at the start. Simple to use indices for the general market, as such exotic indices, niche uses and targeting protocols will be secondary to a more general index for the whole space and targeting users that are not familiar with crypto, providing them a strong and easy to use entry to the space. The user interface, indices and focus will be towards 1 key idea. Allowing the most people to have access to the Crypto market with the easiest to use tools.
The team allocation will be used in the same way as the past, snapshots will be used and team allocations will not be used to vote in these matters to not influence, allowing the community to control key proposals. The allocation will be used as needed for onchain thresholds to be met, but only in the way that the snapshot was successful.
Token locks and unlocks
There will be no vests, locks, unlocks for any tokens as these have already for the most part been filled during indexeds launch for v1 and shown to not actually achieve much other than restrict freedom and capibility.
The DAO will be able to mint further NDX tokens at will, this will be needed to allow the DAO to have a way to control and fund proposals well into the future as well as allow for more flexibility where value can be created more than would offset any inflation.
Index assets will not be LPd for liquidity on the main chains, and minting will be the way most users acquire these assets. This saves both capital needed for LP, funds fees to Treasury and holders, increases the index performance and makes the index more liquid for external swaps for further fees. Layer 2s and alt chains will be LPd where minting is not an option, using treasury assets to bootstrap liquidity rather than LP rewards.
The front end will be made as user friendly as possible, with all being handled from a single interface, Uniswap style. Users should be able to purchase and explore indices all from a single interface, and should be as easy to use as possible. We are also exploring options for direct fiat to index.
As such the proposal also places myself, PR0, as the lead for the project to make decisions on behalf of the project. This leadership can be transfered to someone else once the project is established again and can be removed from myself with a new vote for a new lead scheduled for 1y from proposal execution, or simply by a proposal which passes with atleast 1m NDX/100m NDX 2 threshold.
Now to specifics these are my goals
- New Front End - Uniswap level simplicity, one interface, all indices
- Launch a new CC index with ETH, BTC and top tokens, make this the retail index
- Launch a new DEFI index top 10 tokens for defi
- Market the new index to people as an easy to use, relatively safe (look for insurance on the contracts), and simple way to have exposure to the space. Retail focus.
- Alternative indices, NFTs maybe, make these secondary.
- Allow anyone to create their own index.
A thankyou to the community thats still around. Hopefully we can return but also do better than we have and make Index/Indexed be what we always saw it to be
THIS IS A ROUGH CONCEPT AND NOT FINAL