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 Phuture to build a product that offers many of the advantages of a centralised experience with the innovation and security guarantees that a decentralised backend provides. 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, too 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.”
Phuture embraces these core concepts, with the eventual governing body being a decentralised autonomous organisation (DAO) that 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 Phuture. 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 of new features and promotes the growth of the ecosystem faster than any single team can.
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 Phuture.