Cryptoindex Whitepaper
  • INDX Whitepaper
  • Abstract
  • Content
  • Introduction
    • Indexes: Strong in Traditional Finance, Blue Ocean in Crypto
    • Intended audience
  • Platform Features
    • Benefits
    • Functionality
    • Index Creation and Management Process
    • Fees Structure
    • Changing the Composition of Indexes
  • INDX Tokenomics
    • INDX Tokenomics
    • Allocations, Lockup, and Vesting
    • Core Utility of INDX
    • Additional Utility of INDX
  • More details about INDX utility
    • Creators Subscription
    • Index Holders Fees
    • Incentivization Program
    • Additional Rewards for Index Holders
    • Additional Rewards for LPs
    • Advertising Promotion
    • Referral Program
    • Burning
  • Security
    • Security
  • Risks
    • Risks
  • Project Roadmap
    • Project Roadmap
  • Legal Disclaimer
    • Legal Disclaimer
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  1. Platform Features

Changing the Composition of Indexes

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Last updated 8 months ago

Over time, the proportions in the indexes may begin to differ from the original ones, necessitating changes to the composition of the index. To address this, a voting procedure has been developed to make such changes. This allows index holders to actively participate in maintaining the integrity of their holdings by locking their index tokens into the voting protocol.

In the framework of the voting, decisions are made regarding the following:

  • Adding new coins to the index.

  • Changing the weight of existing coins.

  • Removing coins from the index.

Payment for the blockchain transaction during rebalancing occurs at the expense of the assets in the index.

Voting process

The proposal to make changes can be made by:

  • The creator of the index.

  • A holder owns 15%+ of the index tokens.

  • A group of holders collectively own 15%+ of the index tokens.

The voting process on the platform includes 4 main stages:

  1. Soft Commit: (14 days) Before the official proposal submission, all proposals go through a discussion stage on the forum. For the proposal to be submitted for official voting, the following conditions must be met:

    1. At least 15% of all token holders participated in the discussion.

    2. Out of the voters, 50%+1 voted "for".

  2. Processing Queue: (1 day) After the question is proposed for voting, it goes into a queue for processing by the platform.

  3. Announcement: (1 day) Once the platform accepts the proposal, an announcement is made to all index holders.

  4. Voting Period: (7 days) Voting for the proposal.

Validation and Decision:

  • The minimum number of votes for the voting to be considered valid is 30% of the total index tokens.

  • If the proposal was made by the creator of the index, it must receive 50%+1 of the total votes in favor to be accepted.

  • If the proposal was made by a large holder, it must receive 66%+1 of the total votes in favor to be accepted.

This structured process ensures that any changes to the index composition are made democratically and reflect the interests of the index holders.