IIP: 170 Title: Modify the Organization Structure Status: Proposed Author(s): @anthonyb.eth (On behalf of the Index Coop Council) Reviewed by: @edwardk @DevOnDeFi @afromac Created: 16 December 2022 Quorum: 473,884 (10% of Votable Supply)

Summary

This proposal modifies the organizational structure of the Index Cooperative to increase robustness, operational efficiency, and empower the token holders with hard power, namely the ability to directly replace Safe signers.

Index Coop will adopt Metropolis (formerly known as Orca), a lightweight permissions wrapper around a Safe multi-sig that turns each Safe into a “Pod.” This creates an on-chain organization structure where power is delegated from token-holders to elected Pod Members.

The implementation proposed is intended to be version one, and this structure should continue to evolve over time.

There will be three high-level Pods that are responsible for the three main functions of Index Coop:

Engineering: To deploy and maintain Index Coop smart contracts and products

Operations: To serve the DAO’s off-chain needs such as product design, marketing, partnerships, etc.

Treasury: To manage the Index Coop treasury, pay expenses, collect revenue, and deploy capital to investments

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Key to the Diagram Above

Code	Name	Address
EK	Defensible LLC	0xce0DD00aa80E8a5485070c8Fea9F110e2F46Adac
FW	Flattest White	0xc8e7817C4AC86EF3aFC525F150091391205b727C
SH	Sid Hemraj	0xEdd0c2F919646BeB1548BEF70150B6A15a5Fb213
D	Dev	0xD19e5913C33E7d69a7f66c090760B3e611106b9A
AB	anthonyb.eth	0x57D0C0f6458284884F0654CAa53811D013bB6f20
JT	Jordan T	0x77B90e83E682630086d07fa88EA915C11E149844
CD	afromac	0xB639DAd047432727309e2BBBaB74cE204E3a9623
MM	Mr Madila	0xA3EB02Ffa9bF1965629fa2731b16fFEc87b86848
AG	C-Squared LLC	0x60fAB7c35E3728B46a88f82ddeee46dF1d414A45

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The Engineering, Operations, and Treasury Pod each have three representatives chosen by INDEX holders. Because Index doesn’t have a governor contract and due to the current limitations of Snapshot, a “Delegate Safe” will enact token holder decisions. In time, the Delegate Safe will be removed and INDEX holders can change Pod representatives directly.

Pods can create sub-Pods as shown in the diagram above. This proposal creates the structure as shown in the diagram with three high-level Pods and a number of function-specific sub-Pods.

As a result of these changes and IIP-164, the Index Coop Council (ICC) will cease to exist. The implementation of this structure should occur on or before December 31, 2022.

Motivation

This proposal establishes a persistent system not reliant on a council to make difficult decisions, however, it will maintain the efficiency of decision-making and continue to provide a face to the organization that can interface with on and off-chain entities.

The system is built upon token holders’ sovereignty and their willing, explicit delegation of this power to various component parts, whether they be one or more levels removed.

The DAO must minimize human involvement in its operations to maximize security, robustness, and credible decentralization. Moving to this new organizational structure reduces the reliance on individuals; when human involvement is necessary, those individuals will be appointed and changed by token holders.

Specification

Overview

On-chain entities’ organizational structures are constantly evolving and Index Coop is adopting best practices from around the ecosystem. This proposal has received much iteration and feedback from advisors and community members to accomplish the following objectives:

1. Reduce reliance on individuals

2. Add on-chain governance

3. Raise the primacy of token-holders

In addition, the proposed organizational structure was designed with the aim of keeping Index Coop DAO as nimble as possible. As a result, it broadly increases the decentralization regarding large and important decisions and outsources day-to-day, low-level, operational decisions to appointed Pod members.

Structure

Currently, several multi-signature Safes are owned by the DAO, some of which are inactive. To simplify the structure, only active Safes (i.e., those with assets or permissions) are included in the new organizational structure.

The INDEX token-holders (“token-holders”) will elect representatives (i.e., signers) to the following:

• Delegate Safe (5)
• Operations Pod (3)
• Engineering Pod (3
• Treasury Pod (3)

Each Pod has the discretion to create or modify sub-pods without direct token-holder approval.

Token-holders are also responsible for electing the Director(s) of the Cayman Foundation.

This proposal includes the initial representatives to each Pod and makes changes to the Directors of the Cayman Foundation. At any time, an IIP can be called to make changes to Pod representatives, Directors, or members of the Delegate Safe.

Directors of the Cayman Foundation

This proposal reduces the number of Directors from three to one with the sole Director as Leeward Management.

Delegate Safe

The delegate safe is a temporary measure required due to technical feasibility. In the future, token-holders can change Pod representatives directly via a token vote. Because Index does not have a governor contract and due to limitations in Snapshot, the Delegate Safe will enact decisions made by token holders on-chain.

The delegate safe will begin with a 3-of-5 Safe with the original signers as follows:

Name	Address
Defensible LLC	0xce0DD00aa80E8a5485070c8Fea9F110e2F46Adac
Dev	0xD19e5913C33E7d69a7f66c090760B3e611106b9A
afromac	0xB639DAd047432727309e2BBBaB74cE204E3a9623
anthonyb.eth	0x57D0C0f6458284884F0654CAa53811D013bB6f20
Leeward Management	0xdF4C03660aD86C20aDEccA95a86f5044f38FcA56

Operations Pod

The Operations Pod is a 3-of-5 Safe with 3 individual representatives, supported by the Engineering Pod and Treasury Pod as the additional two signers. The individual members will assist with day-to-day decisions and interface with partners and token-holders.

Currently, there would be no plans for the Operations Pod to handle any funds and most of the activity falling under its purview would be off-chain.

The Operations Pod is the manager of the Contributor Pod. The Operations Pod will be responsible for managing personnel, roles, and remits, and all proposed hiring and offboarding decisions are subject to 3-of-5 approval. This action will take place on-chain by removing the contributor from the Contributors Pod. The initial individual representatives to the Operations Pod are Dev, Anthony B, and Jordan T.

Contributors Pod (operations.contributors)

The Contributors Pod is a sub-Pod of the Operations Pod that enables all paid contributors of the DAO to exist on-chain via Metropolis’s Pod Member NFT system. This NFT acts as a “key card”, so to speak.

There are no immediate plans to use this feature set of Metropolis, but the Contributors Pod is useful for conducting on-chain votes by internal contributors on Snapshot (using the orca-pod strategy). It can also be used for token-gating access to things such as the internal contributor Discord Server. In addition to token-gating access, the Contributors Pod provides an additional layer of on-chain governance, which creates an auditable structure with a higher degree of decentralization.

The Contributors Pod will have a 1-of-n threshold because it will hold no funds and have no permission. All active paid contributors will be members of this Pod and issued NFTs.

Engineering Pod

The Engineering Pod is a 3-of-5 Safe with 3 individual representatives, supported by the Operations Pod and Treasury Pod as the additional two signers. The individual representatives will assist with deploying and maintaining smart contracts on behalf of the DAO. The permissions or keys to all Index Coop smart contracts are set to the Engineering sub-Pod, engineering.ops (eth:0x6904110f17feD2162a11B5FA66B188d801443Ea4). The initial individual representatives to the Engineering Pod are Defensible LLC, Flattest White, and Sid Hemraj.

Treasury Pod

The “Treasury Account” (eth:0x9467cfadc9de245010df95ec6a585a506a8ad5fc) will become the “Treasury Pod.” The Treasury Pod is a 3-of-5 Safe with 3 individual representatives, supported by the Operations Pod and Engineering Pod as the additional two signers. The individual representatives will assist with managing the assets of the DAO, paying expenses, processing payroll, and maintaining the runway. The initial individual representatives to the Treasury Pod are afromac, Mr Madila, and C-Squared LLC.

The Treasury Pod also has a number of Safes under its management that are used to segregate assets including:

Name	Address
treasury.ops	0xfafd604d1cc8b6b3b6cc859cf80fd902972371c1
treasury.invest	0x462a63d4405a6462b157341a78fd1babfd3f8065
treasury.liquidity	0x3a36b94689f303aaf9bfe761068efb8f78912023
treasury.ownership	0x236815b32b50cc80F5C6348396b1A9B09Fd3E7f7
treasury.ops.card	0x86004cf5f38d897fe17abc9d1d624338b47ee992
treasury.liquidity.fast	not yet created

Summary

1. Adopt Metropolis

2. Update the Directors of the Cayman Foundation

3. Create the following new Safes:

   1. delegate_safe

   2. engineering

   3. operations

   4. treasury.liquidity.fast

   5. operations.contributors

4. Update the Signing Structure of the Treasury Pod

5. Add the Metropolis Pod features to the following Safes

Safe Name	Address	Manager
delegate_safe	not yet created	n/a
engineering	0x6904110f17feD2162a11B5FA66B188d801443Ea4	delegate_safe
treasury	0x9467cfadc9de245010df95ec6a585a506a8ad5fc	delegate_safe
operations	not yet created	delegate_safe
treasury.ops	0xfafd604d1cc8b6b3b6cc859cf80fd902972371c1	treasury
treasury.invest	0x462a63d4405a6462b157341a78fd1babfd3f8065	treasury
treasury.liquidity	0x3a36b94689f303aaf9bfe761068efb8f78912023	treasury
treasury.ownership	0x236815b32b50cc80F5C6348396b1A9B09Fd3E7f7	treasury
treasury.ops.card	0x86004cf5f38d897fe17abc9d1d624338b47ee992	treasury.ops
treasury.liquidity.fast	not yet created	treasury.liquidity
operations.contributors	not yet created	operations

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Voting

FOR: Do modify the organization structure AGAINST: Don’t modify the organization structure