IIP-86 MVI Fee Split Proposal

Status: Proposed Author(s): @BigSky7 @Mringz Created: 13th September 2021 Discussions-to: https://gov.indexcoop.com/t/iip-86-mvi-fee-split-proposal/2645 Quorum: 218,088 [2,180,879*0.1]

Simple Summary

‌As outlined in the recent forum post on the subject, “Moving MVI in-line With the Fee Split Model”, we believe this change is mutually beneficial and the timing is right. This IIP proposes a 70% Index Coop / 30% Methodologists fee split arrangement for MVI + Methodologist Bounty to move this transition forward.

Abstract

Once implemented, verto and DFC will cease their FT compensation packages and, instead, will be compensated for their work on MVI via fee split + methodologist bounty.

Verto and DFC will also cease their involvement in high-level Coop initiatives and DFC will step down from the Funding Council and the autonomy group.

It’s worth noting that in case the IIP does not pass, verto and DFC will retain FT compensation packages and will focus entirely on MVI.

Motivation

Verto and DFC outlined the motivation to transition MVI to a fee split structure here. To sum up:

“It became clear over recent months that our contributions are stretched too thin. We have been doing many things sub-optimally rather than one thing really well. This has been tough, and at this point is reducing our enthusiasm to tackle the challenges with the kind of commitment that came easily before. We also see others rising through the community and being capable of taking on greater challenges. We want to create space for these community members to step up and lead the next phase of Coop evolution. This kind of offboarding is fairly new to DAOs, but we believe needs to be a part of the culture for the project to grow (A finite game is played for the purpose of winning, an infinite game 1 for the purpose of continuing the play).”

‌For the Coop, “we believe this change would better align incentives and make sure our compensation is directly tied to the success of the product, also removing the financial burden of our FT packages from the Coop.”

Specification

Proposed Fee split:

1. Streaming Fees (including mint and redeem fees) 70% Index Coop / 30% Methodologists

2. Participation in Methodologist Bounty Program

The proposed split is based on the precedent for simple indices (DPI, DATA) and the expected distribution of work to support and grow the product.

The fee split and methodologist bounty may be revised at some point, as part of the Index Cooperative’s larger effort to reconsider its relationships with methodologies.

3. @DarkForestCapital and @verto0912 will forfeit the remainder of their unvested tokens on the date of the switch, the tokens will be returned to the Coop treasury.

As a product IIP, it should have the quorum requirements of a DG2 vote. Namely:

• 10% of circulating INDEX tokens must participate
• 60% or more must vote FOR.

Vote

• For: Approve 70% Index Coop / 30% Methodologists fee split arrangement for MVI
• Against: Do not approve 70% Index Coop / 30% Methodologists fee split arrangement for MVI

Copyright

Copyright and related rights waived via CC0.