We believe in the power of ‘why’. This piece answers some basic why’s and showcases the reasons PhutureDAO will lead in indexing the token economy.
Emerging sectors within the crypto sphere are starting to show real promise. We believe that the token economy has many use cases and possibilities. That’s why we are focused on building an index creation and investment platform that emphasises a permissionless structure and allows for our index products to evolve with the token economy.
With the recent increase in price there has been renewed interest in crypto assets. We are seeing non-crypto users as well as traditional finance have an increasing appetite for knowledge and understanding of this space. This results in more capital inflows and more individuals wanting to share in the development of the token economy.
At this current point in time we are seeing constant innovation around investment products, from options trading to highly leveraged decentralised platforms. With this, we are seeing a huge need from the crypto and non-crypto investment community for an open and decentralised index platform that people can create and build investment products upon.
This is in line with the constant improvement of the UI/UX of crypto products. Ultimately, crypto is becoming more user friendly and as a result it’s now possible to build decentralised applications with slick user interfaces, rich analytics and responsive user experiences. This inevitable progression has created the opportunity for PhutureDAO to build a product that offers many of the advantages of a centralised experience with the innovation and security guarantees that a decentralised backend offers. This is paramount to our mission of inviting a new non-crypto cohort into our ecosystem.
Now let’s ask the question “why now for a decentralised crypto index?”. Index investing hasn’t seen a technological update since 1975. The question we ask ourselves is: “Does a traditional index work for the token economy?” The answer is no. If you believe that the token economy will become a trillion-dollar asset class, then an index will play an essential role and must be implemented through a new structure and format. To check out a previous post for more information on crypto passive investing, click here.
If we go back 32 years, to when Timothy C. May wrote the original Crypto-Anarchist Manifesto, it states the following: “Just as the technology of printing altered and reduced the power of medieval guilds and the social power structure, so too will cryptologic methods fundamentally alter the nature of corporations and of government interference in economic transactions.”
PhutureDAO embraces these core concepts with the eventual governing body being a decentralised autonomous organisation (DAO) which provides access to the token economy.
The power of a permissionless system like the Phuture protocol can’t be overlooked and is key for the overall success of PhutureDAO. This type of structure embraces open innovation and allows products to progress through the collaboration of distinct community members. Leveraging the knowledge of others can lead to faster iteration on new features and promotes the growth of the ecosystem faster than any single team can.
Index creators are incentivised through fee sharing to create and promote their indexes. In addition, the dynamic, always representative, nature of PhutureDAO indexes ensures liquidity aggregation. We speak about this in more detail in the PhutureDAO Master Plan Part 2 — click here.
The technology behind PhutureDAO allows us to project a powerful experience to our users whilst obfuscating the complexities. The decision to create our own liquidity pools has allowed the protocol to rebalance and reweight more effectively. Moreover, we think index products will create great demand drivers for automated market makers, deliver multiple revenue streams and result in more fees accruing to liquidity providers.
The Phuture protocol will be the first to allow the creation of permissionless indexes represented by one token, that include auto rebalancing functionality, reweighting and dynamic index constituents. This hasn’t been done before and presents a large opportunity for the Phuture community. While we are aware of the challenges to come with such a mission, we are confident that we are in the best position possible to realise the full potential of PhutureDAO.
Why is the Phuture community key to the success of the PhutureDAO network?
It’s paramount to the success of the Phuture network that we build an active community with a voice that can affect change. The Phuture community ultimately will have ownership and be instrumental in the navigation towards industry leading levels of assets under index (AUI).
As a community we have built a solid foundation and in a recent piece highlighted our community growth plan (click here), where we mention our current goal of developing and growing our seed community.
In our Discord (join here) we recently published the 10 community values that the PhutureDAO community is built upon. We recommend checking it out!
With this in mind, it’s key to embolden all within the community to make decisions, conceive new ideas and build a collective group of like minded individuals that can shape PhutureDAO into a truly decentralised organisation.
We are just embarking on this journey, so if you want to contribute, belong and make a difference, join PhutureDAO. Be a part of the journey, make your voice heard and bring your talents. They are needed!
Once the testnet is live, we will be inviting everyone to experiment and try it for themselves.