I am an experienced crypto investor and DTF governor that governs several DTFs on the Reserve platform. I have recently staked my RSR on the $VLONE DTF and want to propose a basket change. The reasoning for my proposal is to increase the exposure to truly decentralized, performative, bleeding edge L1s.
The main reductions in allocations I want to make are around XRP, SOL, and ATOM. XRP is a highly centralized blockchain where the core team controls a large % of the supply. SOL is a high performing chain, but has potential for downtime, is centralized compared to many other chains, and has high hardware requirements to participate. ATOM is continuously underperforming with no true direction from the team of where it will go, we should remove it completely.
The inclusions and increases in the allocation I want to propose are for FET, LTC, ALGO, DOT, and INJ. LTC has a slight increase, only due to its long-term standing and tokenomics. FET is an agentic AI high-performing L1, adding it will pair well with stTAO as an AI allocation. ALGO is a quantum-resistant high-performing L1 that has been around for longer than majority of the chains in this basket, it deserves a higher % as I and many others believe that its a long-term winner that has over 85% of its total supply already circulating. DOT is the most decentralized blockchain in the market today, with actual governance being handled by everyday holders, we recently approved a major inflation reduction plan, as well as turning off KOL incentives to help supply, we should increase its allocation and expect it to be a strong performer to close out this decade. Finally, INJ, this is a truly deflationary high-performing blockchain with true intentions to attract institutions and drive growth going forward, we should increase its allocation over some of the other tokens that have low circulating supply with massive FDV and many token unlocks to come, which should depress their price.
This is my first proposal on the Reserve platform, I have typically played the voting role, but I see an opportunity for this to be a great investable basket of digital assets with a few minor tweaks.
Hi @hercules — thanks so much for your thoughtful proposal and for engaging with governance on the Reserve platform. It’s always great to see RSR stakers taking an active interest in DTF composition.
I wanted to provide some context on VLONE that’s relevant here: VLONE is a tracking DTF that follows an index published by Venionaire Capital. This means the basket composition is determined by Venionaire’s index methodology rather than by discretionary governance votes. ABC Labs will be voting against this proposal for that reason… not because your analysis lacks merit, but because approving basket changes that deviate from the tracked index would fundamentally change what VLONE is and break faith with holders who bought it expecting index-tracking exposure.
That said, your rationale around decentralization, tokenomics, and long-term performance is exactly the kind of thinking that makes for a well-constructed DTF. Once permissionless DTF deployment launches on Reserve, you’ll be able to create your own DTF with the basket composition you’ve outlined here. I encourage you to consider that path… there’s clearly demand for a thesis-driven L1 basket with the criteria you’ve described!
excellent post @starl3xx. this transparency in “how/why stuff works” becomes a lighthouse of education to improve how we coordinate as a community.
Thanks for the heads up.. I have been patiently waiting for the ability to create my own DTF. When do we expect that functionality where RSR holders can truly govern an index dictated by holders?
GM @hercules. Thanks for engaging with DTF index governance in such a well-researched and thoughtful way. I added [RFC] to the title, to make it clear to anyone that this is a request for comments.
So technically for every DTF that is out there today RSR stakers to the DTF are not TRULY governors because the DTF creators can just force the basket change? Or do they still have to go through the On chain proposal process and get quorum/approval? For Example, if I have more RSR than the creators of the DTF who vote FOR the basket change they proposed, could I pull all my RSR onto VLONE and vote down the basket change/propose a different basket and it would be processed as voted on chain?
Good questions… and worth clarifying how this actually works.
RSR vote-lockers on VLONE are the true governors.
If someone accumulated majority voting power, they could technically pass or reject proposals, including basket changes. Onchain governance ultimately follows the votes.
What doesn’t change, though, is the mandate of the DTF.
VLONE’s entire reason for existing is to track the Venionaire Layer-1 Select Index. That includes:
strictly defined inclusion criteria
weighting rules
a 15% cap
monthly rebalance cadence
the broader qualitative/quantitative assessment framework
Anyone locking RSR into VLONE is opting into that mandate. Governance powers exist, but they’re bounded by the fact that VLONE is not meant to become “anything the majority wants” — it’s meant to faithfully track that specific index. A proposal that tried to violate the mandate (e.g., swapping in unrelated assets) would break the product and essentially sabotage the DTF itself.
So:
Yes, vote-lockers have real authority
No, creators can’t just unilaterally force basket changes — the onchain process is required
And yes, anyone with enough voting power can reject or pass proposals, but the mandate is the anchor that governs what makes sense for the DTF to do
This keeps governance real, but also keeps the product coherent.
