Bankless proposed that the Index Coop manage a Set based on an index of Crypto’s most investable assets, BTC, ETH, and DPI, in equal weight. This construction — known as the BED Index or Bankless BED Index — seeks to give safe, passive exposure to a vehicle that captures equal-weighted upside from the most promising use cases and themes in crypto: store of value, programmable money, and decentralized finance.

### Methodology

The BED index is meant to track crypto’s top 3 investable assets.

1. **Scope:** The index includes the top 3 investable assets with real usage and large capitalizations around the theme of blockchain: BTC, ETH, DeFi (DPI).
2. **Weighting:** Neutral construction, equal weight
3. **Rebalancing:** First Friday of every month

The composition is:

* 33.3% Bitcoin
* 33.3% Ether
* 33.3% DPI

The underlying index is rebalanced after the close of trading on the first Friday of each calendar month. The Fund is rebalanced in accordance with its Underlying Index.

### Component Selection

#### Market Requirements

* The components must have a Large cap valuation $25b+ \[If an Index, the corresponding token market caps must have a sum of >$25b\].
* The components must show signs of heavy usage either as a network (btc, eth) or smart contract theme (DeFi).
* The assets must have sufficient liquidity for initial inclusion and rebalances.

#### Safety Requirements

* Assets and themes within the Bankless BED Index should have vast, well-established safety guarantees.
* Any network/protocol must have conducted sufficient security audits and/or security professionals must have reviewed the protocol to determine that security best practices have been followed.

### Index Maintenance

#### Determination Phase

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

#### Reconstitution Phase

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

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