Cryptocurrencies are typically supported by a network of computers (or nodes) each keeping a digital record of the data known as the blockchain. Masternodes differ from regular nodes in that they have an enhanced role: performing specialised functions such as validating transactions over the network and providing higher levels of security. In return for these valuable services, the Masternodes are rewarded with small incremental payments whenever they process activity over their respective network (in many ways similar to rental or toll payments). In essence, the accumulation of these small payments provides the unique and diversified source of income INDX seeks to acquire through Masternode ownership.
Please see the INDX Light Paper and Investment Memo for more information.
Masternodes can add functionality to a network besides being incentivised to provide infrastructure. Functions provided are expected to increase beyond simple tasks such as anonymity or instant payments. For example, BlockNet is experimenting with nodes to enable trustless exchange services, whilst Crown utilises nodes to host decentralised applications. As their utility continues to increase, Masternodes are set to become the underlying crypto infrastructure of the near future - providing an attractive and ongoing source of income in the process.

As individual projects mature, and their associated coins or tokens appreciate, the cost of acquiring sufficient stakes to secure Masternode ownership increases commensurately. Whilst strong and mature projects offer higher liquidity and lower volatility, the associated return on investment (ROI) from staking those types of assets tends to be lower. Accordingly, INDX believes that exposure to very well-established projects such as DASH, PIVX and LUX ought to be blended with mature projects such as KORE, Smart Cash and Bulwark, as well as relatively newer and promising projects such as Arctic, Polis, Crown and Monoeci.
INDX further anticipates the Masternode landscape to develop aggressively in the future, with various fundamentally strong projects influencing the space such as VeChain, Matrixchain, Dadi and Origin Trail, to name a few.
Please see the INDX Light Paper and Algorithm Overview for more information.
With the help of the INDX Investment Committee, the INDX Algorithm analyses the Masternode landscape with the aim of categorising underlying target investments into one of four asset classes. Data is then streamed and collected from various sources including exchange APIs, block explorers and via bespoke ‘GetData’ functions. Once these extraneous data sets have been cleansed, the algorithm, by design, quantifies numerous qualitative measures, coupled with quantitative parameters to produce a viable exposure value and rebalance proposition for the INDX portfolio. Through objective technical indicators such as Relative Strength Index (“RSI”), Moving Average Convergence Divergence (“MACD”), Network Value to Transactions Ratio (“NVT”) and Stochastics, INDX will achieve elegant entry and exit points for trading. Real-time alert and risk management processes performed by the algorithm generate trigger signals that can lead to automatic partial or full liquidation events that dynamically rebalance the portfolio. With constant analysis and an in-built iterative process to enhance ongoing enhancement, the algorithm will subsequently define the optimal composition of INDX’s Masternode portfolio at any given time. Whilst the INDX Algorithm is the proprietary Intellectual Property (IP) of INDX Capital, the holdings generated by the algorithm will be available via the INDX dashboard. Further, it should be noted that the workings, sensitivities and development of the algorithm benefit from full time in-house and market specialist developers to ensure the cutting-edge process remains current.
Please see the INDX Light Paper, Investment Memo and Algorithm Overview for more information.
The INDX ICO utilises the ERC-20 Token Standard and, due to the nature of the model, it is considered a Security Token. The token price is $0.30 at ICO with purchases settled in Ethereum (ETH). The INDX Token will benefit from the Smart Contracts available on the Ethereum Platform and by adopting the ERC-20 standard, INDX can ensure that its tokens perform in a predictable way, are easily exchangeable and able to work immediately with decentralised applications that also support the ERC-20 protocol (indeed, most tokens released through ICOs in 2018 have been compliant with this standard). Please see the INDX Light Paper for more information.
INDX tokens are expected to be listed on multiple exchanges following a successful ICO. As such, any token holders that might wish to execute a liquidity event will have the comfort of knowing that INDX tokens can be traded on reputable cryptocurrency exchanges.
INDX intends to fall under the regulatory environment of Malta, where our legal advisors expect security tokens to be treated with a relatively light touch. Accordingly, we are in direct communication with the Finance Ministry of Malta. Incidentally, a globally recognised crypto exchange has also chosen to set up its operational base in Malta, which we believe adds to the comfort provided by our chosen security token type, liquidity and regulatory landscape.
Please see the INDX Light Paper for more information.
In addition to generating revenue, Masternodes afford the owner rights to vote in governance and treasury decisions. With this in mind and in order to uphold the founding principles of decentralisation and independence, INDX appoint community managers to vote with full autonomy in the best interest of each network. Where possible we will pursue a strong equal agenda policy and actively advocate equal opportunities with proportional ethnic and gender representation. A bounty token allocation has been set aside to financially reward the Masternode custodians, automatically executed by smart contract. Please see the INDX Light Paper for more information.
There will be a number of Masternode investments owned by the INDX Portfolio, with each individual holding generating returns at differing frequencies, differing amounts and in differing cryptocurrencies. INDX will collect the passive income received from these underlying assets and broadcast the incrementally growing pool of value on the INDX dashboard on a continuous 24/7 basis. At the end of each quarter, token holders who satisfy a simple set of criteria will be eligible to receive their share in the profits of the INDX strategy.
50% of profits will be paid directly to the designated ETH wallets of eligible INDX token holders who also benefit from a further 25% of profits being re-invested into the INDX portfolio. The remaining profits are extracted to cover ongoing operational overheads as well as the 1% INDX Foundation levy. Payments to INDX token holders are expected to be processed approximately 5 business days after the books close and the ‘snap-shot’ of eligible token holders captured. In order to be eligible to receive this quarterly 50% profit share, token holders will need to own the minimum holding of 150 tokens and be able to demonstrate they held their tokens in an eligible Ethereum wallet on the appropriate date. Please see the INDX Light Paper for more information.
INDX does not charge an annual management fee per se. Instead, 24% of the post ICO INDX Fund will be set aside to accommodate start-up costs, technological spend, operational overheads and staff retention whilst an additional 1% will be utilised for establishing the INDX Foundation. This one-time charge will be deducted over the first year of operation so as to allow the highest deployment of assets with which to acquire and grow the Masternode portfolio.
Profits generated from the accumulation of passive income from the underlying Masternode portfolio will be distributed quarterly in the following ratios: 50% directly to token holder’s ETH wallets, 25% re-invested back into a token holder’s exposure to the INDX portfolio and the remaining 25% retained by INDX to cover ongoing operational costs as well as the periodic INDX Foundation levy. Please see the INDX Light Paper for more information.
INDX’s architecture and operational processes are constructed on Amazon Web Services (AWS). Additionally, all services will be secured using enterprise-grade security software, reviewed and accredited by a cyber security partner to the highest degree - following Cloud Security best practice. INDX’s security levels have been designed to rival any in the crypto space and, as such, are seen as one of the many key benefits of the INDX model. An expert Dev/Sec Ops team will operationally manage the overall process, added to which, each crypto asset will have its allocation of Masternodes distributed over five different geo locations around the world (i.e. 10 Masternodes would mean 2 were housed at each location). After the infrastructure has been established and the necessary security steps have been implemented, INDX will outsource to an independent team for a complete network-wide security audit where our systems will undergo intense penetration testing. Any weaknesses will be addressed immediately, closed and only after re-testing will we deem our systems enterprise-grade and validated for immediate deployment. This process is one of many factors that set INDX apart in the market and place our token holder’s interests as the foremost priority.
Please see the INDX Light Paper and Investment Memo for more information.
Custodianship of the assets, and their respective private keys, is a responsibility INDX take very seriously. Through a system of defined organisational processes and secure technical procedures we intend to develop a level of security commensurate with any in the crypto space. Private keys are Shamir-sharded with undisclosed signatories and stored on a separate offline computer. Verification of addresses for trading purposes is conducted on a secondary offline computer to maintain security from potential external and internal bad actors. Traders will have the ability to conduct trades to pre-approved levels and, if required beyond those levels, there is a technical requirement for multiple counter-signatory validation.
Please see the INDX Light Paper for more information.
The Investment Committee is compiled of the best talent from traditional fund management, crypto analytics and researchers, along with respected critical thinkers and investors in the cryptocurrency and Masternode space. They provide a qualitative oversight in parallel to the algorithmically-derived identification of existing and emerging Masternodes, to help enhance the INDX portfolio.
The functions of the committee include the review of current portfolio performance, structure and balance, along with forecast analysis of potential additions to the Masternode portfolio.
Please see the INDX Light Paper for more information.
The Founders of INDX Capital have over fifty years’ collective experience in their respective fields with each of the three founders being early stage adopters and investors in the cryptocurrency space. The extended management team includes a CTO, CFO and CMO that each bring over a decade’s knowledge and experience to their dedicated roles, whilst INDX has appointed an algorithm developer lead with over 15 years of hedge fund, tier one banking and market experience. Engineering is a dedicated function within the INDX enterprise, whilst INDX have also brought on board specialist advisors to assist with the structuring, corporate governance and roll-out of the ICO – each bringing over twenty years’ experience in their fields of expertise. Finally, INDX have brought together some of the leading lights and visionaries within the Masternode space to ensure the project benefits from some of the most innovative and knowledgeable thinkers in the FinTech and Cryptocurrency space.
Please see the INDX Light Paper for more information.