Celebrating one year of the Community Index
November 2021 makes it one year since the launch of our weekly Community Index - the mechanism we use to measure the health of the SwissBorg ecosystem, which is then used to calculate the yield on CHSB.
The Community Index was originally inspired by the Proof of Stake model, where community members are rewarded for helping an ecosystem function and scale. Similarly, the Community Index reflects how well the SwissBorg ecosystem is doing, and is then used to calculate CHSB rewards for those committed to supporting it by holding funds in the CHSB yield wallet.
One year on and it’s great to see how this Index has taken on a life of its own, with thousands of community members tuning in to our CEO’s Pow Wow each week to see the latest score, and how it will impact their yield.
What makes up the Community Index Score?
Below are the factors that are the six subscores that contribute to the the weekly Community Index score:
- SwissBorg App Volume Score
- CHSB Token Score
- SwissBorg App Activity Score
- Crypto Challenge App Score
- DAO Engagement Score
- Social Media Engagement Score
Each of these metrics represents a different element of our ecosystem, and the subscores combine to create a Community Index score between 0-10.
One of the most exciting parts of the Community Index score is that the more engaged our community is, the more they are rewarded. The more active they are in the SwissBorg app, the higher the price of the CHSB token, the more active they are in the Crypto Challenge app, and the more active they are on social media and in the DAO, the higher each of these scores will be, leading to a higher Community Index and a higher yield.
Learn more about the Community Index in our white paper
Now, one year on, how has the SwissBorg ecosystem performed?
SwissBorg ecosystem performance
The chart above represents the trend of the weekly Community Index score since its launch. When the Index launched, the score rested around 5.0, as this was a time when CHSB’s price was lower (below $0.14) and volumes were weaker.
However, since December the Community Index has never fallen below 6.9, which is a very healthy score. The average score, as well as the most common score, is 7.9, while the highest Community Index score was 9.8 - achieved on February 8th and February 15th.
- For 13 times the community Index score was 9.0 and above
- 10 times the Community Index score was between 8.0 and 8.9
- 22 times the community Index score was between 7.0 and 7.9
- 22 times the Community Index score was between 8.0 and 9.8
CHSB’s price and the Community Index
We can see that there is moderate correlation between the Community Index and the price performance of CHSB over the period of a year. In the chart below, we can see that in the majority of cases, when the price of CHSB is strong, the Community Index score is above 7.0.
For this reason, we encourage you to continue getting involved and engaging with the ecosystem because it's healthy for the price of CHSB!
CHSB’s yield and the Community Index
As mentioned earlier, the Community Index was designed to reward our community members by tying their activity and loyalty to the rewards they could earn through the CHSB Yield Program.
You can see the original yields offered by the program in the table below, which were then doubled in April.
We then took this up another notch with the launch of CHSB Yield 2.0 in November, with maximum yields of up to 30% available for the first 2,000 CHSB held in the CHSB yield wallet.
CHSB Yield 2.0 uses a tiers system, where the rewards offered to users are different for each level of CHSB they hold. The highest yields are available for each user’s first 2,000 CHSB, which is designed to help newer investors grow their wealth faster and motivate more investors to join the SwissBorg ecosystem.
All of these tiers are still tied to the Community Index, so when the Community Index is higher, the rate in every tier goes up.
The Community Index and CHSB Buyback
The final development in the use of the Community Index was the launch of CHSB Buyback last week. With CHSB Buyback, the SwissBorg team will regularly buy back CHSB tokens on the market, which will be allocated to SwissBorg’s development budget, partnerships and the SwissBorg ecosystem.
However, unlike many buybacks where an organisation will commit to a set amount (or a flat proportion of profits or revenue) that will be used in the buy back, we once again wanted to reward our community. To do this, we tied CHSB Buyback to the Community Index!
Simply, CHSB Buyback uses the fees generated by our Smart Yield wallets to buy back CHSB tokens. The percentage of the fees used depends on the Community Index score, and how long the Community Index has stayed within a certain range. The longer the Community Index stays at a higher level, the more we use to buy back tokens - with up to 100% of fees being used for the buybacks!
The goal of the Community Index was both to link the performance of the ecosystem with our community, and to reward community members for increasing that performance. Through CHSB Yield 2.0, CHSB Buyback, and the correlation between CHSB’s price and the Community Index, we believe it is doing just that.
Be the first to find out the next Community Index in our CEO’s weekly Pow Wow: every Tuesday at 9pm CET on YouTube!
Invest in CHSB today with the SwissBorg app!
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