IIP-160: MVI Revised Fee Split

Simple Summary Having studied the revised economic arrangement for the DATA index in IIP-117 1, and after working closely with IC product and Set engineering to try and reduce gas costs during rebalances, we propose bringing MVI in-line with a consistent and more long-term fee split arrangement to improve product sustainability. This is a modified version of IIP-138 2, and comes after discussing the changes with Index Council members, namely Cormac and Dev.

Abstract TL;DR on the proposed changes:

Revenue is split between Index Coop and MetaPortal 60/40 after gas costs are paid for rebalancing. A vote in favour would see this new agreement come into effect after the July rebalance. MetaPortal is aware the IC is looking to homogenise not just rebalancing schedules, but also streaming fees. We will be part of the discussion and adjust MVI’s fee (or not) based on the outcome of that conversation. Motivation While Set continues to cover gas costs for product rebalancing, we are aware this will not always be the case. In the future, the Index Coop will bear the costs and as methodologists we expect to share the burden proportionally. Moving to a post-gas fee split means we are incentivised to work together and reduce cost (something we have been doing already, the outcome of which is reflected in the product profitability chart 3) but this IIP solidifies the arrangement.

Specification Current Agreement The current economic agreement is detailed in IIP-86 1, posted on Sept 13th, 2021. Its key terms:

Streaming Fee: 95 bps

Split: 70% Index Coop / 30% MetaPortal

INDEX tokens as part of the methodologist bounty.

Proposed Agreement - changes in bold Revenue split 60% Index Coop, 40% to MetaPortal, after gas costs. Streaming fee stays at 95bps. MetaPortal will take part in the wider discussion around fees for IC products, and update where relevant. MetaPortal will receive INDEX tokens as an active participant in the Methodologist Incentive program. Any amendments to the economic arrangement mentioned above are to be mutually agreed and implemented via each respective community’s governance processes. If the vote passes in favour, changes will take effect after the July rebalance (first week of July). Voting FOR:

Implement the proposed changes to the MVI economic agreement between MetaPortal and Index Coop.

AGAINST:

Do not implement the proposed changes to the MVI economic agreement between MetaPortal and Index Coop.

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