A proposal to revamp the IBCX methodology was uploaded on the ION forum on August 18th. The main rationale of this proposal is to calibrate the current portfolio operation methodologies for a more systematic, reliable framework.
Boosting up IBCX’s usage and solidifying its position as the index token that truly represents the Cosmos ecosystem is the key, and this goal is directly related to the growth of ION DAO. While working on drafting this proposal, we received help from a number of individuals in Cosmos who contributed their insights and opinions. As always, all of our discussions were done in open platforms like the ION Forum and the official ION DAO Telegram group chat. And naturally, we received numerous suggestions from a number of community members about forming and operating a group of advisors who can regularly contribute to IBCX going forward. We internally discussed the pros and potential risks involved, and I would like to share our thinking process and proposal.
We thought about how this committee could benefit IBCX and ION DAO. There are largely two aspects:
1. Portfolio management
The committee will participate in managing the IBCX portfolio by contributing their qualitative and quantitative insights, essentially filling in the gap which the proposed IBCX Methodology cannot 100% cover. Some of such areas include:
- Analysis on the tokenomics of the IBCX portfolio assets
- Analysis on the public sentiment and general acceptance of portfolio assets and composition
- Analysis of the Osmosis AMM market data. Quantitative insights for asset weight %s based on the respective asset’s performance on Osmosis
- Constant tracking and analysis of each portfolio asset’s development processes and expected moves. Gauging on how well they deliver vs. what they promised
2. Business development
The committee will also actively act as ION DAO’s core evangelists and contribute to forging strategic relationships with the current and upcoming projects and teams.
- Business partnerships with chains, protocols, and applications
- Marketing (i.e., uploading marketing posts, participating in community calls, etc.)
Apart from the qualitative contributions the committee will make on an ad-hoc basis, we’re planning to set a clear KPI of requiring an advisor report every four months. Here’s how a full 4-month cycle will be operated:
- Based on the new IBCX Methodlogy, the dev contributors will upload a rebalancing proposal every two months. As a reminder, the rebalancing will only be executed if and only if the rebalancing proposal is passed by the ION DAO governance.
- During the four-month period involving passing of one rebalancing proposal, the committee will conduct its analysis on various aspects including IBCX performance, portfolio asset performance, and public’s reception on each of the portfolio assets. Before the next proposal is uploaded on the 4th month, the analysis report with recommendations on the portfolio rebalancing will be uploaded to the community.
- The report will contain information and suggestions including, but not limited to, the following:
- Excluding or reducing weight %s of any assets that were deemed to have negatively impacted the overall performance of IBCX.
- Adding or increasing weight %s of any assets that the committee believes will positively impact the overall performance of IBCX.
- The report should have detailed quantitative, qualitative data and rationale behind making the suggestions, and it should also explain how each suggestion could potentially impact the performance of IBCX in a clear, concise manner.
Basically, the committee will produce a report that’ll inform the ION DAO community before the 2nd, 4th, and 6th proposals out of the 6 proposals every year. We believe that this schedule will provide enough time leeway for the committee to make meaningful analysis while keeping the required workload doable on the committee members’ end.
We would like to emphasize that the reports published by the committee will only be used as public information with which the ION DAO participants could utilize to make decisions on the voting processes. Again, the bimonthly rebalancing proposals will need to pass the ION DAO governance to be executed, just like any other on-chain proposals on ION DAO.
We propose to ensure that each of the committee members puts in at least ten hours every four months to execute the analysis and prepare a report.
During the course of the last 6 months, we were fortunate enough to have numerous smart, experienced experts advising on IBCX. Below is a list of such individuals who have already shown interest to join the committee:
- Ian from Stride Labs
- Riley from Stride Labs
- Luisqa from Interbloc
- EffortCapital from Blockworks Research
And these are some of the folks will reach out to:
We propose to pay each committee member $120 an hour in ION. We’ll defer to the community to gauge the justification of each payment by uploading the advisor committee compensation proposals, and the payments will only be executed if the said proposals are passed by the ION DAO governance. These proposals will have detailed rationale on the tasks carried out and values delivered during that particular 4-month period, and they will also have detailed info on the BD side of contributions that were made. The actual amount of ION will be determined based on the market price of ION at the moment of the on-chain date of each funding proposal.
So that’s what we have in mind for the IBCX Advisor Committee (IAC). As always, we’re all ears on what the community thinks about this idea. Please don’t hesitate to share your thoughts on all of our venues, including this Forum thread.
Thank you very much!