IIP-150: Composite Tokenomics Module

Status: Proposed Author(s): @mel.eth GovReview: @pujimak_in Created: 19th April 2022 ‌Quorum: 150,178 INDEX - 5% of Circulating Supply

Simple Summary

‌ Through rewarding PRODUCT:INDEX Liquidity Providers both product and INDEX token liquidity will be simultaneously increased through market forces. This 6-month experiment pairs strongly aligned LPs (holding both product and governance token) with product revenue and governance token distribution. Given the liquidity of UNIv2 LP positions, the reward can be constructed and distributed as LP positions, effectively and effortlessly adding to the position of liquidity providers in a pairing that is desirable to IC and the liquidity provider.

Abstract

‌A‌ll product revenue (by product) is to be paired with INDEX in the community treasury, to be distributed to UNIv2 LP holders of ICs composite products paired with INDEX on a monthly basis, for holders of the previous full month that revenue was earned, increasing the native yield for the LP and inspiring deeper liquidity for ICs products on Uniswap v2, the most integrated DEX.

Motivation

At present, product revenue isn't used for any specific purpose or considered vital to operational runway relative to stables and INDEX. Liquidity on L1 is an ongoing need and inspiring hold pressure on both products and the INDEX token in proportion to revenue, while distributing useable governance to such holders, is an ideal scenario. Inspiring liquidity in addition to INDEX demand, helping protect Index Coop against governance attacks and firming up the value of our treasury through INDEX market demand due to PRODUCT:INDEX LP creation. All wins.

Specification

‌‌Inspiring deep liquidity across our products permissionless-ly is a challenge, but the goal, of an advancement toward further autonomy and organic decentralization. This 6-month experiment with the option to extend would give us quite a bit of data.

Technical Specification

‌Pair treasury INDEX with all of ICs product revenue for 6-months, on a monthly basis. PRODUCT:INDEX UNIv2 LP tokens will be airdropped to LPs that have held for the entire month in proportion to LP size. In this context, PRODUCT includes composite tokens such as DPI, MVI, DATA, GMI, BED, and JPG. LP refers to Uniswap v2 PRODUCT:INDEX LP positions. LP size for the purposes of monthly airdrop refers to the relative % of LP held.

INDEX utilized in such LP positions would remain eligible for DSM participation by active contributors subject to the variances in INDEX tokens held within the LP position(s).

Copyright

Copyright and related rights waived via CC0.