hi all,
for many years I have been looking for viable SP500 type index’s for crypto. With CMC20, there seems to be a serious attempt.
One of the reasons I am still considering to hold native assets instead of the CMC20 is due to missing out on staking rewards, which means you are getting inflated away. With the way CMC20 is set up, it is actually possible to immediately stake the subset of tokens that can be staked, such as SOL, and prevent dilution.
Most of these assets within the CMC20 will not meaningfully change in allocation often, but for the sake of liquidity, I do believe they should be fully liquid ahead of the monthly rebalance. Since this rebalance is predictable and also takes voting time, these assets could be unstaked ahead of the rebalance in order to be liquid during.
Currently applicable tokens are BNB, SOL, TRX, ADA, HYPE and AVAX.
A more active governance could even only unstake certain percentages for the upcoming balance, however this would include somewhat predicting how big the rebalance changes would be, thereby defeating the set-and-forget thesis of an index.
This seems like a straightforward win for CMC20 holders, and also crypto-native benefit compared to the SP500.