Index Backing Guide

What is Index Backing?

Index backing allows you to invest in entire categories of creators instead of individual projects. This provides diversification and reduces risk by spreading your investment across multiple creators in a category.

How It Works

When you back an index, your investment is automatically distributed across all creators in that category, weighted by their revenue contribution. As creators in the index earn revenue, you earn your share based on your index ownership percentage.

Revenue Distribution

Revenue from creators in the index is distributed to backers based on:

• Your index ownership percentage
• Each creator's revenue contribution to the index
• The index's total revenue-weighted distribution

Market Tracking

Indexes are tracked like stock market indices. You can see:

• Index price and 24h change
• Total market cap
• Volume and trading activity
• Performance charts and trends

Diversification Benefits

Index backing provides several benefits:

• Diversification: Spread risk across multiple creators
• Reduced Risk: Less exposure to individual project failures
• Market Exposure: Benefit from overall category growth
• Ease of Investment: One investment covers multiple creators

Index Rebalancing

Indexes are periodically rebalanced to ensure fair distribution. New creators may be added, and revenue weights are adjusted based on performance. This keeps the index representative of the category's overall performance.