The Metaverse Index is a token basket launched by Index Coop. It aims to capture the growing trend of entertainment, sports, and business transitioning to a virtual environment. Represented by an ERC20 token, the MVI utilizes a combination of square root of market cap and liquidity weighting to determine the index weights. Liquidity is considered crucial, especially in the nascent and shallow liquidity space, as it affects on-chain rebalancing and portfolio allocation. The final index weights are calculated using the formula: TW = 75% RMCW + 25% LW, where TW represents the token weight in the $MVI, RMCW is the square root of market cap weighted allocation, and LW is the liquidity weighted allocation.