Product Development Process
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Most new products under consideration will follow the redefined proposed in the forum. The goal of this proposal was to revamp the Index Coop’s product development process by introducing a pre-sale process for new product proposals. This pre-sale process will accomplish four things:
Surface a direct demand signal (or lack thereof) for potential products
Ensure DAO resources are allocated to products with clear demand
Bootstrap TVL and liquidity for new products before launch
Incentivize early adopters to support and grow new products over time
The pre-sale process enables customers and early adopters to demonstrate tangible demand for a proposed product by depositing funds into the token before launch. Each pre-sale will have a pre-defined deposit threshold (ex. $3m) that must be met within a specified amount of time (ex. 30 days) to determine whether or not the product is formally launched. If a pre-sale meets or exceeds this threshold in the allotted time, the product will be launched by the Index Coop. If the pre-sale does not meet the agreed-upon threshold, the product will not be launched and depositors can withdraw their funds. Pre-sale supporters may also be incentivized with $INDEX, future product revenue, or other rewards.
Publish to the forum for comment period
Conduct INDEX vote to advance (or not advance) the product to a pre-sale
If the INDEX vote passes, the pre-sale period will begin on the pre-sale start date. It will last for a period as defined in the proposal, and it must meet the defined deposit threshold at the end of pre-sale period.
If the pre-sale is successful, the product will be developed and marketing materials will be created during the pre-launch period. During this time, the product will be rebalanced into it's initial composition using deposits from the pre-sale.
At the end of pre-launch period, the formal launch will take place. The formal launch allows regular users to begin issuing and/or buying the new product.
After the formal launch, the post-launch period will begin. When distributing incentives to pre-sale depositors, the end of the post-launch period can signify when the incentive recipients will be able to claim their rewards. This is useful as non-binding mechanism to force pre-sale depositors to hold their positions until a sufficient amount of time has passed.
In addition to signaling direct demand for potential products, the pre-sale process also ensures that DAO resources are allocated more efficiently. Under the current product development process, a significant amount of resources must be invested to bring a product to market. Almost every contributor is involved at some stage, translating to direct costs and opportunity costs. It’s not until after these investments are made and the product is formally launched that it is apparent if there is a demand for a product.
Under the pre-sale process, the majority of these go-to-market activities do not need to be completed until after the deposit threshold is met and there is a clear indication of customer demand. Therefore, this pre-sale approach minimizes the upfront investment that has been prohibitive in the past and clarifies the case for eventual resource allocation.