The DAOist recently proposed that Index Coop create a DAO index for retail investors and others to get exposure to DAO infrastructure, developer DAOs, and service DAOs.
The author lays out some simple metrics for “scoring” DAOs for the index. The higher the score the larger the allocation for that DAO in the index. His scoresheet is here.
I think this is a significant opportunity for us to provide feedback on meaningful (and simple) metrics for guiding the DAO scorecard; thoughtful feedback here can ensure the Index directs funds to DAOs in a way that rewards decentralization, engagement, and other measures of organizational health.
Does anyone have thoughts on (a) the proposal (b) how we can assist?
A) I went through the proposal and found the sum of mkt cap, treasury, and # of voters to be fairly ambiguous, but a good starting point. Mkt cap and treasury size should be correlated. That said, the goal of the Index Coop is to create and market products, so I could see them pushing this through DG1. In the form it is in now, it will undergo so changes, so I think the opportunity is ripe for us to provide some feedback here. I think it would make most sense to approach the posting author with the feedback rather than first posting it directly on the Index Coop forums.
B) To assist, it is my belief that we need to bring a solution to the table. What I mean by this is I think we pick 3ish additional metrics that are focused on organizational health (contributor engagement/pay, voting coalitions, etccc…) and layer them into the existing proposal. Use similar weighting mechanisms as the original post and see how it impacts the proposal.
Question.
Outside of providing more visibility for Diamond DAO, what is the benefit of us providing this information. Are our efforts better focused on completing the MVP and continuing discussions with the IC community?
Do we know the original poster? If so, this might be a good chance to establish a relationship and assist with this index proposal. Streaming fees for these products are 95 bps per annum, with x% going (to be negotiated - up to 70%) going to the Index Creator.
No need to create a rift, but we could always create an Index that uses our metrics that focus on the Web 3 ecosystem. Actually, that would be a pretty brilliant way to market our MVP to a wide audience and a way to drive adoption. Let me flush this out more in my head, but I think something like this should be added to the “roadmap” once we identify reliable metrics across the Web 3 ecosystem.
Yea agreed on this - the opportunity cost is key here.
My read is that this is Index Coop’s attempt to quickly launch a DAO-facing product with readily-available information sources. These information sources are mostly re-purposing & adding onto the standard DeFi/crypto numbers on CMC/CoinGecko, but not DAO-native (i.e. less meaningful).
For us, I’m thinking that perhaps we should focus on first discovering and analysing numbers that reflect the nuances of DAO activity/health. By building up something uniquely ours, we’ll have a more meaningful, nuanced & accurate DAO data-set to add to the next-gen DAO indices. At that point, we’ll probably play a larger role and get greater visibility too.
I’m friends with Stefen, have been DM-ing with him on Twitter. Is there any feedback that we feel comfortable offering now, absent nuanced stats to inform future iterations of the index / our own index?