About

The Metaverse Index built by IndexCoop is an ERC-20 token that has been created to capture the trend of Ethereum based assets in entertainment, sports and business shifting to a virtual environment.

History

Index Cooperative (IndexCoop), a crypto index product provider launched the Metaverse Index in April 2021. IndexCoop is a decentralized, community led organization who create, maintain and drive the development of various crypto indices. IndexCoop has been involved in several index products including the DeFi Pulse Index and the Bankless BED Index. The indices themselves are decided upon and maintained by holders of the Index Cooperative (INDEX) token. The Metaverse Index was first proposed in the IndexCoop governance forum on the 2nd of February 2021 and passed with no votes against it.

The Metaverse Index is made up of constituents that fulfill the following criteria:

• The token must be available on the Ethereum blockchain.
• Protocol must be in one of the following token categories on Coingecko: Non Fungible Tokens, Entertainment, Virtual Reality, Augmented Reality and Music. More categories will be added in the future as the market matures.
• Total market cap must be over $30m.
• Protocol must have at least 3 months history of operation and its token must have at least 3 months of price and liquidity history.
• Token must have reasonable and consistent DEX liquidity on Ethereum.
• An independent security audit should have been performed on the protocol and results reviewed by the product methodologist. In the case that no audit has been performed, the methodologist will apply subjective judgement of the protocol based on assessment of the criteria above and communications with the team.
• In the event of a security issue the methodologist will work with the project team to understand the issue and any effects to $MVI holdings. The team is expected to provide users of the protocol with a reliable solution and adequate documentation to ensure transparency about the incident.
• Tokens will not be staked at the launch of the index. This is subject to change as liquidity increases and it becomes possible to safely generate yield through staking.

The weights of constituents is calculated as follows: TW = 75% x RMCW + 25% x LW where, TW – token weight in the $MVI RMCW – square root of market cap weighted allocation LW – liquidity weighted allocation

Liquidity is one of the main considerations when determining portfolio allocation.