PIP-59 $PLAY Index prospectus

Rationale Following up on the community sentiment emerged regarding the pending $PLAY rebalancing, I’ve been putting together a proposal of Prospectus aimed at clarifying:

1. eligibility criteria for inclusion in $PLAY (or asset removal)
2. the methodology for asset allocation
3. rules and procedure for rebalancing

You can access the entire prospectus here https://gateway.pinata.cloud/ipfs/QmVoACenV8XqAzYg9zyN4Q4cC5tAtiKE5y6WMiJsGnAgqt

1 - Envisioned Criteria for Inclusion

1. Project connected to the development of the Metaverse, Gaming or NFT ecosystems on Ethereum
2. Token Issued and aligned to the ERC20 standard
3. Asset is fractionable (minimum 2 decimals)
4. Sufficient DEX Liquidity exists
5. Token has been around for min 60 days
6. Audit Passed

2 - Methodology for Allocation Underlying allocations to be adjusted by introducing the following criteria: -> Allocation capped so that its $ value is <= 10% of DEX $ liquidity -> Momentum of the asset Market Cap over the past 30 days -> Minimum allocation of 2% for each underlying asset -> Max allocation of 30% for single large cap holding -> Max cumulative allocation of 60% for top 3 cap holdings

3 . Rule and Procedures for rebalancing

Triggers for rebalancing

1. Max allocation of largest holding > 50% for 7 consecutive days
2. Max cumulative allocation of top 3 holdings > 80% for 7 consecutive days

Rebalancing Urgency

1. Minimum of 1 rebalancing every 6 months should take place
2. Maximum o1 rebalancing per calendar month deemed as acceptable
3. New assets inclusion to be considered at first available rebalancing

Do you accept the Prospectus proposed for $PLAY? -> a YES votes in favour of the adoption above PROSPECTUS for $PLAY -> a NO rejects the above and bring the discussion back to the forum