Launching the first community driven index fund

Mission Control is taking the next step towards DAO control: Opening product development process to the community.

For the launch of the next index product, we want to leverage the power of the community to decide which strategy to track. In order to do so we are opening the discussion for community input via the SPICE DAO Forum. As a first step, we are presenting three potential strategies for a next index and call on the community to add their ideas and suggestions.

The upcoming products will be more flexible in terms of the assets and strategies we can track. More details on the exact process and infrastructure will be shared soon. For now, we want to drive the discussion by collecting all the ideas and evaluating them in terms of feasibility and community interest.

Following that, a shortlist of proposals will be submitted for votes via Snapshot.

Requirements for suggestions

We do not want to constrain the idea collection process too much, however a few things should be considered for every suggestion:

  • The assets or strategies can theoretically be of any nature: Digital assets, Traditional assets, Commodities etc.
  • Pricing data, as well as a secondary market for the assets / strategies must be publicly available.
  • Please provide a short description of your idea and why it is interesting. Add any information and competitive product that you may find relevant, without delving into too much detail and technicalities

We will refine this collection process dynamically, based on the feedback of the community.

Timeline

The timeline for the release of the first community product is not set. The execution time depends on the progress of the discussion and the input of new ideas, as they need to be researched and understood before considering implementation and moving on to a DAO Vote on Snapshot.

Mission Control suggestions will follow as separate posts.

→ To add new suggestions, simply reply.
→ Use one post per suggested product, so that we can vote on and discuss each.
→ To upvote, use the “like/heart” button.
→ The feasible proposals with the most traction will be voted on by the DAO.

4 Likes

Suggestion 1: Wallstreetbets index fund

The Reddit forum Wallstreetbets has been making waves ever since their notorious Gamestop campaign that squeezed out top tier hedge funds, leading to a US senate hearing and high volatility in the stock. The community continually focusses on other potential targets ranging from commodities to stocks.

We suggest creating an actively managed index fund that tracks the signals from the Wallstreetbets reddit community and participates via a synthetic exposure in the short term opportunities it provides.

1 Like

Suggestion 2: Polkadot index fund

Polkadot is an efficiency geared Layer 1 protocol founded by the former Ethereum CTO Gavin Woods. The Polkadot ecosystem is fast growing and attracting a lot of interesting and high growth projects.

We suggest creating an actively managed index that tracks the most interesting Polkadot projects in the ecosystem.

3 Likes

Suggestion 3: Metaverse real estate index fund

The Metaverse is materialising across many protocols and ecosystems. With the emergence and hype of virtual worlds like decentraland and the NFT space, the interest in Metaverse real estate in these worlds is growing too.

We suggest creating a REIT 2.0 - a real estate index strategy that tracks the price development of high growth potential real estate objects in the most popular Metaverse ecosystems worlds.

2 Likes

When you say track you mean invest and hold currency in these projects correct?

Yes, pretty much. The strategy we track will define the value development of the index token.

1 Like

The Launchpad Index

Launchpads have become a real success story for projects over recent years. They are always oversubscribed and allow the investor to be confident that the project they are investing in is reputable.

I suggest an index that tracks a range of projects with launchpads. With enough funding, the index could take part in the launch of new projects and reinvest the profits into the fund.

3 Likes

what are some examples of launchpads you would include?

I would include a range of launchpads from higher to lower marketcap. Trustswap and Polkastarter would be my first choices as higher marketcaps. Perhaps Mantra DAO, BSCPAD and PAID Network for mid caps. I am wary of suggesting low marketcaps as there are a lot of them. Perhaps Polkabridge?

I would choose launchpads that cover a range of blockchains. Hoping for a Cardano launchpad in the near future!

I should also say that I am not personally invested in all these projects and there should be a rigorous selection process…

1 Like

In regards to using the funds to take part in IDOs:

A lottery system could be introduced that allows investors to take part in the launchpads. For example, if the launchpad index has 9000 POLS and an IDO whitelist requirement states that a wallet must hold 3000 POLS to take part this could allow 3 people that hold the launchpad index token to take part in the IDO. This would make the index more engaging and provide extra incentive to investors.

Do you think it could be more attractive to:
-Invest in the launchpad tokens and give access rights to the fund holders/ monetize this to external parties and distribute yield.
-Invest only in the launchpad projects (decision process on where to invest centralised/ or via DAO).
-Combination of the two

1 Like

Where do I sign up?

1 Like

Sign up for what? Do you mean vote? Or do you mean to have the ability to vote in the DAO?

What is the value of a launchpad? I know they have some but I’m not familiar with them

I really like the idea of the index buying newly launched tokens through IDO’s or any type of new listing. The only problem is, at what point do we want the coin to be rebalanced since it would be the initial offering. Just some thoughts

For me the value is knowing the project is much less likely to be a scam. The initail IDO price tends to be much lower than the exchage price aswell. So, your likely to make a profit.

1 Like

I think giving access rights would be easier to manage? Distributing yield could get quite complex if the index gets swollen with new projects.
I think a combination of the 2 options would be most attractive. Invest in the launchpad projects and give access rights to fund holders.

What do you think?

Well it’s interesting because I dont quite understand your lottery IDO idea above. Would the index buy 9,000 and then give or sell them to separate investors who hold Spice? I think that would get complicated. If we as an index want to invest in IDO’s I think it could be a great idea but we would want to have a rebalancing and do have a time such as 3 months after launch or something of that nature.

I would suggest we consider “sector” specific indices. This was becoming very popular in the Hedge Fund world in the last decade as many Institutional Investors have become a lot more savvy and want to have more pointed control over the direction of their portfolio, but do not have the time to do the extensive research to plan the investment strategy and balance. The REIT would be an excellent idea for those wanting broader exposure to Digital Real Estate. Then we could have an Insurance Fund that would hold something like Polkacover, BMI,etc; an Oracle Fund; etc. This would allow us to attract more savvy investors who want to have sector specific exposure but do not have the time to research every project and rebalance risk on a monthly basis.

2 Likes