[Proposal] The Entertainment Fund (ENTER)

The Entertainment Fund [ENTER]

Description:

As a poll in the forum showed, exposure on markets without micromanaging is the number 1 reason for the community to buy an NDX index. The Enter Index gives investors exposure on one of the most promising niches in the crypto space, “Entertainment”. The space seems to rapidly adopt cryptocurrencies, for either payments, NFT use cases, etc. Even though the niche is rapidly growing in users and in adoption, it can be hard (especially for beginners) to keep track of all the tokens in this space. We therefore decided to write an application for the first entertainment related index pool. “Entertainment” is a wide spread topic, so we decided to split it up into five sections:

Music

Video

Sports

Gaming

Gambling

Every of these 5 sections is a unique category on CoinMarketCap which we think facilitates the administration of the pool.

Weighting:

The pool should consist of 10 tokens with every category represented by the biggest token according to CoinMarketCap. Every number 1 category token takes 15% of the pools share. The remaining 25% will be represented by the biggest tokens of all categories combined with each token taking 5 % of the pools share.

Category Music Video Sports Gaming Gambling
Biggest token of a single Category 15% 15% 15% 15% 15%
Biggest of all Categories combined 5 Tokens, each 5% = 25%

Composition:

As stated by the weighting, the pool would include following tokens:

Number 1 of each category:

Music: Audius [AUDIUS]

Video: Verasity [VRA]

Sports: Chilliz [CHZ]

Gaming: Enjin Coin [ENJ]

Gambling: FUNToken [FUN]


Categories combined:

BORA [BORA]

Atari Token [ATRI]

Ultra [UOS]

Refereum [RFR]

Video Coin [VID]


Token Criteria:

(please add some criteria you think would be good)

  • The Token is an infrastructure Token
  • no tokens associated to a particular entity (e.g. a game, a song or a sports club)
  • The token should be in the top 500 on CoinMarketCap based on Market Cap
  • Token meets the requirements of the ERC20 Standard
  • The token does not have transfer fees or other non-standard balance updates

Governance:

We propose that the pool should be fully governed by the Sigma Committee. A circuit breaker should be included, and the reindexing process should happen as it is the case for the existing products.


Initial Value:

We would propose a similar crowdfunding to the one proposed in the FFF proposal of 100 Tokens offered at $100 each. This is not set in stone though and could also be changed depending on your experience with this policy.

4 Likes

This is an interesting proposal.

For the top entry in the Video category (VRA), I haven’t heard of them so I don’t know much about them, but I though LivePeer or Theta would take the top spot for Video delivery.

1 Like

Hey Kuza,
Thank you for your reply!
For simplicity, we decided to just list the Token with the highest Marketcap within the CoinMarketCap categories.
Theta does not run on Ethereum, therefore it is not listed in the index

To clarify that:

We actually consider LivePeer a nice fit for this Index. The only reason that its not included, is that it is not in one of the CoinMarketCap categories that we have chosen. (There is also no Streaming category on CMC)

We are open for ideas that would include Tokens like LivePeer but also allow an easy governance process.

I love this. Would add Travel and Travala.com. For Gaming/Gambling - DG looks legit.

1 Like