This is the first of two votes required for a new product to be onboarded to the Index Coop.

A passing vote here signals the Index Coop’s intent to further research the Total Crypto Market Cap Index (MCAP) feasibility resulting in a product prioritization score.

Passing Thresholds:

• 5% or more of circulating supply must participate (2,181,385*0.05 = 109 069)
• 50% or more of participating tokens must vote FOR

FOR - Pass Total Crypto Market Cap Index (MCAP) through Decision Gate 1. Begin work to research & assign Total Crypto Market Cap Index (MCAP) a product prioritization score.

AGAINST - Do not pass Total Crypto Market Cap Index (MCAP) through Decision Gate 1.

DG1 is a signaling step to gauge community sentiment. The full-text Total Crypto Market Cap Index (MCAP) exceeds Snapshot’s character count limit. Below is an abbreviated proposal. Check out this forum post to read the full proposal.

================================================ Title: Launch the Total Crypto Market Cap Index (MCAP) Authors: @JosephKnecht (MoonRock), @MrMadila (Index Coop)

1.0 Simple Summary

We propose launching the Total Crypto Market Cap Index (MCAP), an index of the total cryptocurrency market capitalization. MCAP will be the first non-synthetic total crypto market cap token.

2.0 Abstract

MCAP is an index token that tracks the total crypto market capitalization. The token uses a sampling approach to represent the total market cap using a subset of large cap tokens. The product can be implemented as a Simple set with no additional engineering effort. The components are among the most liquid on the market so the NAV decay and gas costs will be minimal.

2.1 Motivation

Total market cap indices are the bedrock of passive investing. There is approximately $2B total AUM in centralized large cap crypto index funds. However, there are few decentralized total market index tokens and all of them are synthetic. Providing a total market cap index would address the largest segment of the index market and serve as a foundation for future diversified meta-index products.

2.2 Rationale

MCAP uses sampling replication to represent the total crypto market cap. In the sampling method, the weights are selected to maximally explain the total market variation. Sampling is a standard method in designing traditional equity index funds but we believe this is the first application to crypto. Advantages of sampling techniques over synthetic methods include full collateralization, no de-pegging risk, transparency, and ease of communication. The main weakness is the inability to capture variability which is outside of and uncorrelated with the sample.