Should the rebalancing frequency of the GBI Index be changed from monthly to quarterly?

What? As one of the first suggestions from the community in the new SPICE DAO forum it was proposed to change the rebalancing frequency of the GBI index from monthly to quarterly.

Why? GBI is a passive strategy index that tracks some of the biggest large-cap assets in the crypto market where the constituents don’t need to be changed on a monthly basis. The reasoning behind the proposal is that by changing the rebalancing frequency from monthly to quarterly we would reduce the costs involved in the transactions and therefore increase the return. According to Etherscan, the gas costs for last 3 rebalancing events were: May: $2659, April: $482, March: $1196.

Each time a rebalancing happens, there is a bit of slippage between the exchanged assets (usually in the low one-digit percentages) because the assets are exchanged on Uniswap. So less rebalancing events lead to less slippage and money saved on gas fees, which over the lifetime of the index will add up.

How? Assuming a positive vote on the change of the GBI Index rebalancing frequency to quarterly, Mission Control will put the change in effect after the upcoming rebalancing of the GBI, which will still take place on the regular monthly schedule on June 11, 2021.