The Alongside Crypto Market Index ($AMKT), is a decentralized token that allows anyone to "buy the crypto market" without bringing the long-termist philosophies of index investing to cryptocurrencies. The Alongside team was a core contributor to the AMKT DAO.
The AMKT index is made to be a passive tracker of the market. This means that the underlying components of the index are meant to track the market as closely as possible. For example: If the top 10 cryptocurrencies by market cap are 80% Bitcoin, 10% Ethereum, and 10% the rest, then the index will reflect similar proportions.
While the AMKT index passively tracks the market, some inclusion & exclusion criteria decisions need to be made in order to ensure the index is accurate and compliant over the years. A decentralized autonomous organization (DAO) allows for all holders of the index to have a say on the inclusionary and exclusionary critera.
The AMKT DAO has appointed a service provider, Battery Labs, who are responsible for implementing the AMKT crypto index. The service entity is responsible for enacting the methodology published by the DAO and implementing it into its on-chain index token. You can learn more about the implementation process and the DAO governance over at the AMKT DAO's documentation.
A decentralized autonomous organization, or DAO, is a type of digital entity that operates using a set of predetermined rules and protocols, without the need for central leadership or management. DAOs are created and governed by a decentralized network of participants, using blockchain technology and smart contracts to facilitate decision-making and manage operations. DAOs can be used for a variety of purposes, including crowdfunding, democratic decision-making, and enabling decentralized autonomous operations of various kinds. Some well-known examples of DAOs include the Ethereum Foundation and MakerDAO.
Any holder of the Alongside Crypto Market Index token (ticker $AMKT) receives a vote in the AMKT DAO. Unlike most other DAOs that have a designated governance token, AMKT is both the token that grants governance power as well as the token that represents the underlying assets of the index. This means that anyone who holds this index is part of the AMKT DAO, and is encouraged to put their votes to use and help govern the index.
The AMKT DAO will be voting on a wide range of topics. Some of the important proposals will involve defining ongoing inclusion & exclusion criteria for the inclusion of assets inside the index.
DAOs enable all the holders of the index to participate in the decision making process that involve their holding. This enables a more fair and transparent process in what ultimately gets included in the index, instead of allowing arbitrary decisions to sway it's components.
Yes. The DAO exists within a confine of rules defined by the AMKT DAO constitution. The constitution is a document that lays out the aims, responsibilities, and methods of the DAO. Both active participants in the DAO's governance and the elected representatives of the DAO have to abide by the terms set within the constitution. The constitution exists to ensure the index can withstand the test of time, and remains true to it's philosophy to passively track the market for the long term.
As an AMKT index token holder, you can participate in governance of the index via snapshot, a website that enables you to connect your wallet and verify your ownership of the index tokens. This is where proposals are discussed, voted upon, and previous decisions are stored. If you do not yet have AMKT tokens, you can buy them directly on centralized exchanges like Gate.io, or decentralized exchanges like Uniswap.
