/index_credit

The Index Token

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The Index

The Index is a distributed consensus project: a cryptocurrency backed by an index of crypto assets. That is, it has as part of its native functionality the ability to autonomously accept, hold, and release crypto assets. It is, therefore, a distributed autonomously organization (DAO) and those that hold its native token, Index Credit, have the ability to extract the assets backing the token and are afforded the ability, through voting, to nudge the exchange rate between any asset that backs the native token and the Index Credit itself.

The vote granted to the holders of Index Credit is transferable and demands a market value despite being continually replenished since it has the power to value assets. Furthermore, since voters are also those that can extract value from the system they have economic incentive to attract the best assets into the system and expel the worst: causing The Index to serve as a leading indicator of economic value.

Thus, it monetizes the will to power since distributed control over The Index literally is arbitrary control over prices in the economy.

Traditionally, in a world where currency is backed by labor and control, money's money is the interest. The Index offers an alternative, where money's money is backed by distributed control of actual assets and their relative position, one to another.

Phase

This code repository, and the project itself is in the exploratory phase of its development. The main idea has been outlined, initial obvious challenges are currently being assessed and prepared for.

Current verbose ideological documentation:

Yellow Paper: https://docs.google.com/document/d/1XV6hUUn5Jd_KS65egTdw144m3aIFQ8ASqBNPur-Rda4/edit?usp=sharing

Patent (pending): https://docs.google.com/document/d/1iSiIC2F2CDsxA9rCvCi_RDmAG47zBTjM20GfArbn2pM/edit?usp=sharing

Original Reddit post, describing the idea: https://www.reddit.com/r/smartcontracts/comments/jzurhl/what_do_you_think_of_index_token_is_it_possible/

Follow up Reddit post, describing progress: https://www.reddit.com/r/smartcontracts/comments/kydfnf/the_index_moneys_money/

Baseline backing-balancing formula (without vote integration): https://math.stackexchange.com/questions/3982701/how-to-derive-a-formula-with-interacting-variables-with-example-problem

Getting Started

To get started

  1. Install Python
  2. pip install -f requirements.txt
  3. python setup.py develop
  4. jupyter notebook
  5. run "reward forumla explored.ipynb"

Major Known Challenges

  1. Holding Assets Autonomously (Open blockchains can't hold hidden information such as private keys, so how is the system supposed to control assets?)
  • This has solutions must have effective solution if not technically perfect ones since decentralized exchanges exist already, but solutions are not known to the team members, more expertise is needed.
  1. Internal Price Discovery (the use of oracles is not ideal, an order book allows for arbitrage in some cases, the system needs to remain coherent with the external world as closely as possible)
  • Order book may be necessary.
  • There may be alternative solutions.
  • I think the best solution to this is to merely allow the trading in and out of the system, along with the voting to determine the price. when a trade happens the price changes. when voting happens the rate of change that the price changes changes. no order book necessary. No oracles needed.

How else can The Index be described conceptually?

  1. A distributed hedge fund (assets backing the credit/token/note are chosen by the community rather than a hedge fund manager).
  2. A decentralized exchange with a necessary intermediary token who's exchange rate is partially dependent upon a vote.
  3. A market-derived pseudo-universal basic income solution (since the vote given to the holders of the token is a replenishing resource that, nevertheless, achieves a market value because it has high utility and is easily transferable).
  4. A representation of the monetization of government's arbitrary power over prices.
  5. A major step towards the realization the democratization of power; making the vote a real commodity controlled by the people rather than stolen by politicians who aggregate the people's power for self-enrichment and self-aggrandizement.
  6. The economy's eye; the ability to expend attention self-referentially the therefore predict and ultimate control its own behavior.