Thread by @accel_capital

1/ Issue 5: @indexcoop - The #Crypto BlackRock 🦉🏦

#DAOs are transparent, accessible, and democratic.

This piece is a case study looking at one of the most successful DAO communities to date: @indexcoop.

Their mission: create a decentralized BlackRock for the digital era.

🧵

2/ Before we get started, this tweetstorm is a truncated version of the longer piece. Check out the full piece and subscribe here:

acceleratedcapital.substack.com/p/index-coop-t…

3/ @ljxie defines a DAO as:

"…a group organized around a mission that coordinates through a shared set of rules enforced on a blockchain."

With the recent DAO bill in the WY legislature (h/t @awrigh01), it's important to understand these entities.

linda.mirror.xyz/Vh8K4leCGEO06_…

4/ All actions of a #DAO are visible by anyone. The entire balance sheet of a #DAO is available on-chain. Business decisions are made in public forums, Discord servers, and Telegram groups.

#DAO governance is done via community vote.

Anyone can join at anytime.

5/ @indexcoop is a #DAO for the creation and maintenance of #crypto-native structured products built on #DeFi asset management primitives such as @SetProtocol.

It is governed by a community of $INDEX holders who collectively propose and vote on new products and future strategy.

6/ @indexcoop has had tremendous success with its @defipulse Index product: $DPI, a #crypto index designed to track the #DeFi industry.

Since its release in September of last year, it has grown to almost $175mm in assets under management across 13,000 wallet addresses.

7/ In addition to $DPI, The #Metaverse Index $MVI launched just last month. It is designed to capture the trend of entertainment, sports and business shifting to virtual environments.

It has also seen strong growth with over 1,100 addresses holding it.

acceleratedcapital.substack.com/p/the-metavers…

8/ The methodologists behind the $MVI, @DarkForestCap and @verto0912, recently initiated a newsletter called the MetaPortal.

Check it out here. 👀👇

metaportal.substack.com/p/step-through…

9/ The goal of creating a decentralized BlackRock is no easy task. One of the most difficult features to recreate is product selection.

A successful new product launch will increase AUM, cash flow, and brand reputation.

An unsuccessful launch creates risks for investors.

10/ @indexcoop has built a process to ensure only successful ideas reach fruition.

It begins with the methodologist. Index methodologists are data providers that publish research and data on new and existing strategies.

11/ Anyone in the community can become a methodologist by proposing a new product. If the product reaches market after passing a series of votes, the methodologist will receive a bounty and a portion of future streaming fees.

The whole process is outlined in my Substack post ☝️

12/ A question you might find yourself asking is what benefits do #crypto-native structured products offer over their traditional counterparts?

One answer is composability.

13/ Some advantages:

🦉 Use it as collateral for loans or lend it for interest. You can do this with $DPI on @CreamdotFinance now.
🦉 LP on DEXs like @Uniswap. With $FLI you can pair FLI-2xETH with $ETH for 1.5x leverage and a yield.
🦉 Use throughout #DeFi (e.g. @PoolTogether_)

14/ In addition to running on decentralized governance, @indexcoop has a unique advantage as an index creator in the form of metagovernance.

$INDEX is the token of #DeFi governance.

https://twitter.com/accel_capital/status/1375863752797474816

15/ Decentralization, while democratic, leads to slower progress as the community reviews every major decision together. Many #DAOs have turned to working groups to address this challenge.

According to @pet3rpan, WGs are a part of the natural progression of decentralization.

16/ The current funded working groups for @indexcoop include:

🦉Analytics: Responsible for ensuring the Coop has objective data available at all times.
🦉Growth: Distills the Coop’s core values to the public through brand awareness.

17/ 🦉 Treasury: Crafts plans on preserving and growing the treasury. I am currently assisting with this effort.
🦉 Product: Analyzes and critiques new product ideas and manages liquidity mining programs.

More on this in their docs:
docs.indexcoop.com

18/ Blockchains enable greater transparency, but it's difficult for the average user to compile all the information.

Regular reporting of treasury composition, income, and market dynamics can vastly improve stakeholder governance.

19/ @indexcoop does this via a new treasury report (s/o @MisterMadila and @Matthew_Graham_), regular rebalancing updates on their products, and commentary published on Substack and Medium.

20/ I would be remiss to discuss the openness and transparency of a #DAO without recognizing that all transactions are verifiable and observable on-chain at any time.

For a taste of this, check out the @zerion_io page for the treasury's wallet address:

app.zerion.io/0x9467cfadc9de…

21/ What comes next for the Coop?

Initiatives on expanding centralized exchange access, crafting strategic partnerships, and creating a treasury diversification program are all in the works.

Product pipeline expansion is a priority.

22/ Content marketing, analytics, and graphic design are needed now more than ever as the #DAO continues to grow.

There is an active call for contributors on all of these fronts at @indexcoop.

23/ Many in the old guard have yet to recognize the potential of #DAOs, #DeFi, and #NFTs.

These new technologies and the communities forming around them will upend these defunct traditional models and revolutionize our economy, society, and culture.

24/ It’s likely some of these companies will realize too late that their competition had grown in parallel while they slept at the wheel.

So stop by @indexcoop's Discord. Let’s overthrow BlackRock together.

discord.com/invite/dF8zf2vj

Should have tagged @pet3rpan_ here instead! Apologies.