Index Backing Guide

What is Index Backing?

Index backing allows you to back entire categories of creators instead of individual projects. This provides diversification and spreads your support across multiple creators in a category.

How It Works

When you back an index, your backing is automatically distributed across all creators in that category, weighted by their revenue contribution. As creators in the index generate revenue, you receive your portion based on your index participation percentage.

Revenue Distribution

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

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

Index Tracking

Indexes are tracked with activity data. You can see:

• Index value and 24h change
• Total project value
• Volume and exchange activity
• Performance charts and trends

Diversification Benefits

Index backing provides several benefits:

• Diversification: Spread support across multiple creators
• Reduced Exposure: Less exposure to individual project outcomes
• Category Support: Support overall category growth
• Ease of Backing: One backing 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 activity.