⁃ Inspired by Elon Musk.
Background: This piece is written by the PhutureDAO creators, who are merely catalysts in the conception and construction of PhutureDAO. The community will run and govern the eco-system. Listed here is our vision for the ‘phuture’ of the PhutureDAO eco-system. Ultimately, the community can take it in whichever direction they decide, but we thought it would be cool to share our thoughts.
As you already know, PhutureDAO is creating a range of benchmark decentralised programmable indexes. Most people are familiar with PhutureDAO and our initial index that is due to be launched, ‘The Defi Index’, tracking the top Defi projects by market cap with one token. This is auto-rebalancing and will add in and out tokens weekly. Naturally, investors in the index will own the underlying asset and not a synthetic version. However, most aren’t aware of the use cases and incentivisation (we will speak more about this in a later post) PhutureDAO can provide.
PhutureDAO is designed from the ground up, to last the test of time, using its own liquidity pools which are key — and something we will talk about later. First of all, we see a future that has a range of different indexes. From Defi to, Dex’s (decentralised exchanges), to DAO’s (decentralised autonomous organisations), and even individual communities.
The notion of a non-crypto native, buying their first ETH from an exchange like Coinbase, who wants to have exposure to specific areas of crypto, having to go in and individually buy the top tokens at that time is not something we see taking place. We at PhutureDAO believe crypto and non-crypto natives want exposure to specific sectors within crypto, and that it should be as easy as purchasing the DEX index token, which would give exposure to the top 10 or top 100 projects. Depending on the investor’s interest.
PhutureDAO is structured in a way that empowers its users as they can create their own index. An index that we believe would gain traction in the current market conditions would be a ‘Fair Launch Index’. As a user, you could create this index, and the more AUI (assets under index) you receive, the more of a kickback you receive, therefore incentivising creators of the index.
A community within the crypto sphere is key. It wouldn’t take a lot of imagination to think that an audit provider, like QuantStamp (QSP), could launch the QuantStamp index. This index would be made up of all the different projects they have audited. Giving the community an easy option to buy into their work.
Indexing community efforts is an interesting theme that we believe will provide a lot of growth for the PhutureDAO eco-system. Another interesting example would be the DAO provider Aragon (ANT). If a user believes in the Aragon eco-system and DAO’s, they could purchase one token that owns a % of all the Aragon projects. Taking a wider view than making a few small investments and hoping they work out.
Users could also create an index that owns the Andreessen Horowitz crypto portfolio and could invest in the same investments. This goes for any crypto VC fund that has token exposure. It benefits the individual project and VC’s, as more liquidity is channelling into those projects and their portfolio. It benefits the index investor because without investing in the Andreessen Horowitz Venture fund, they can own the same assets at a level of risk that suits them, in a tokenised fashion.
Things happen quickly in Crypto. Owning individual tokens, unless you are actively managing them, is not the right option for most investors. Owning an index that changes with the times, we believe is the ‘phuture’. Buy the haystack not the needle.
So far, we have spoken about retail investors looking to participate. We can also take a different view and look at institutional investors that want exposure to the crypto economy. Let’s say, for example, they want exposure to DEX’s and gaming NFTs, do you think they will buy one or two tokens within those sectors? We at PhutureDAO think they would prefer a highly liquid index, that auto-rebalances and changes with the times. Providing exposure to those specific areas and best of class projects, weighted by the institution’s selected metrics, could be by market cap, underlying users, earnings etc…
Exchanges want to provide their users with as many projects and tokens as possible but are limited by the onboarding processes. Imagine a world where an exchange can list ‘The DAO Index’ or ‘The DEX Index’ which automatically provides exposure from 5–100 different projects. We think that this world sounds like a good place to be.
We at PhutureDAO believe this would be an area of huge growth for the individual index tokens.
The PhutureDAO eco-system has the ability to do all of the above.
This is part 1 of the Master Plan, we hope you learned more about our vision and PhutureDAO’s role in the indexing of the crypto economy.
Part 2 coming soon.
We value you, our early supporters, and want to thank you for your continued support! Feel free to share and promote the good word of PhutureDAO, if you haven’t already, follow us on Twitter https://twitter.com/Phuturedao & Discord — https://discord.gg/frRD3Ck