May 25th, 2018 by DPRating team
It has been more than one month since we released our blockchain market index DPC. During this period, we received many feedbacks on how to improve DPC. Your ideas and suggestions are highly appreciated and we are determined to meet your needs to the greatest extent. This DPC upgrade is for this purpose.
First, we would like to introduce our new domain name: dprating.com. From now on, you can check most recent DPC value with this domain. Meanwhile, the full name of DPC has been changed into DP Composite Index.
The following update is regarding a shortage that has been mostly mentioned: DPC index history is too short. We are very curious about the historical performance of DPC as well. So a project to calculate historical DPC has been initiated. Since DPC reconstitution and rebalance is based on market cap rank of each category while the rank varies dramatically in the crypto market, we collected and processed historical market data of 1600 tokens. In addition, more than 400 tokens were allocated to 6 categories we designed for DPC. These efforts make it possible for us to extend DPC back to 7/19/2017.
The initial value of DPC at 2 am 4/12/2018, UTC, according to our design, is 100. If we keep this setting, however, the retrospective index values in early days will fall below 50, which seems too weird for a market index. So we decided to increase DPC initial value from 100 to 1000. All historical and following index values have been changed accordingly as well. The DPC history is shown as follow. You can also find it on our website.
The historical DPC values shown above are calculated based on initial implementing method. But various feedbacks and our research reveal plenty of room for improvement. So the following adjustments are applied to DPC from now on. The first adjustment is the number of index constituents. Currently, 10 tokens are chosen for every category while the weight of each bottom 5 token is rarely higher than 0.3%. As a result, price changes of bottom 5 tokens can seldom influence index value, but they do make it difficult for people to comprehend DPC constituents. To deal with this satiation, we decide to reduce DPC constituents from 60 tokens to 30, namely top 5 of each category.
In addition, reconstitution frequency is going to be changed as well. Reconstitution and rebalancing will occur on the third Wednesday every odd-numbered month from now on. The market cap data used for calculating ranks and weights are collected from UTC 2 am Monday to 2 am Friday of the previous week. Buffering rule for token replacing is maintained:
When a non-constituent token’s average market cap rank is higher than the 4th of its type, it will replace the bottom-ranked constituent token of the same type; When a constituent token’s market cap rank is lower than the 6th of its category, it will be substituted by the top-ranked non-constituent token of the same category.
According to the upgraded DPC implementing method, the following 30 tokens have been DPC constituents since May 16th. Remember to check dprating.com so that you can keep up with most recent DPC value.
