3. Index Design
3.1 Index Components
The AI MEME INDEX ($AMI) comprises a curated selection of tokens representing the Meme coin ecosystem. The initial components of the index include:
Established Meme Coins:
$DOGE: The pioneering Meme coin with widespread adoption.
$SHIBA: A top-performing token known for its vibrant community.
$PEPE: A rapidly growing token with cultural significance in the Meme space.
Virtual Tokens:
Tokens launched on the Virtuals Protocol platform that meet performance and liquidity criteria.
Community-Nominated Tokens:
Tokens selected through community proposals and governance voting.
3.2 Criteria for Token Selection
Tokens are included in the AI MEME INDEX based on the following criteria:
Liquidity:
Sufficient trading volume and liquidity on decentralized exchanges (DEXs).
Market Performance:
Historical price performance and growth potential.
Community Support:
Active and engaged community presence on social platforms.
AI Trend Analysis:
AI-driven algorithms to identify emerging trends and assess token relevance.
3.3 Rebalancing Mechanism
To maintain optimal performance, the AI MEME INDEX employs an automated rebalancing mechanism:
Rebalancing Schedule:
Conducted monthly or in response to significant market shifts.
AI-Driven Adjustments:
AI algorithms analyze market data to suggest adjustments in token weightings.
Governance Oversight:
Community votes on proposed rebalancing changes.
Smart Contract Execution:
Rebalancing operations are performed automatically via smart contracts to ensure transparency and efficiency.
3.4 Role of Virtual Tokens
Virtual tokens play a key role in expanding the scope of the AI MEME INDEX:
Integration of New Tokens:
Virtual tokens launched on the Virtuals Protocol are reviewed for inclusion in the index.
Innovation and Growth:
Supports the discovery of new and promising Meme coins.
Dynamic Updates:
Virtual tokens are added or removed based on performance and community feedback.
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