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Ongoing Index Maintenance

The index is maintained on a quarterly basis (in January, April, July, and October) in two phases:

Determination Phase

The Determination Phase takes place during the third week of the month. It is the phase when the changes needed for the next reconstitution are determined.

  • Additions and deletions: The tokens being added and deleted from the index calculation are determined during the third week of the month and published before reconstitution.
  • Circulating Supply Determination: The DeFi Pulse Index currently references CoinGecko’s circulating supply number. The Circulating Supply is determined during the third week of the month and published before the reconstitution.
  • Weighting: Any token that has a weight greater than 25% based on its market cap during the Determination Phase will have its weight capped. The target weight of the capped token will be the average of its current index weight and 25%. Any excess weight will be redistributed to the remaining components of the DeFi Pulse Index on a weighted basis. This same process will be repeated for every token exceeding the 25% allocation cap. Any current constituent that has a weight less than 0.50% will be removed from the index, new tokens are required to have a weight of at least 2% to be added.

Reconstitution Phase

Following publication of the Determination Phase outcome, the index composition will change to the new weights on the first working day of the following month: Components will be added or removed, and weights adjusted.

Any funds based on the DeFi Pulse Index will be expected to execute any buy and sell transactions on or shortly after the index Reconstitution Date.

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