How to evaluate a project/token?
Weโve created a framework of 12 questions to evaluate tokenomics
After every question we score based on: "How much does that make you buy the token?" (and sum it all up at the end)
Let's try with Ethereum (read the image first!)
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Weโve created a framework of 12 questions to evaluate tokenomics
After every question we score based on: "How much does that make you buy the token?" (and sum it all up at the end)
Let's try with Ethereum (read the image first!)
๐งต๐
Answer: Payment network and foundation to run smart contracts. Think DAO, dApp or NFT
The more users transact, the more the project gains in value - more people everyone can transact with.
The ecosystem gains with each new user, application and transaction.
Score: 8/10 ๐
The more users transact, the more the project gains in value - more people everyone can transact with.
The ecosystem gains with each new user, application and transaction.
Score: 8/10 ๐
Answer: Ethereum was early, very decentralised, attracts a large community, lotโs of tools and knowledge within the ecosystem and battle tested.
Most L1s donโt come with all of these traits.
Score: 7/10 ๐
Most L1s donโt come with all of these traits.
Score: 7/10 ๐
Answer: ETH can be used to pay for transactions on the network.
With Ethereum 2.0, ETH can be staked to secure the network and receive a yield.
Score: 9/10 ๐
With Ethereum 2.0, ETH can be staked to secure the network and receive a yield.
Score: 9/10 ๐
Answer: The more adoption, the more demand for transactions i.e. ETH to pay for them.
The new version however, will bring lower transaction costs, and by that perhaps lower demand for ETH. (transacting doesnโt require as much).
Score: 7/10 ๐
The new version however, will bring lower transaction costs, and by that perhaps lower demand for ETH. (transacting doesnโt require as much).
Score: 7/10 ๐
Answer: With ETH 2.0 stakers receive a yield which comes from issuance and tx fees.
Score: 8/10 ๐
Score: 8/10 ๐
Answer: Not sure. The smart contract execution might be comparable with Platform as a Service providers but the aspects of decentralisation are novel.
Score: 9/10 ๐
Score: 9/10 ๐
Answer: Most smart contract blockchains use their token as payment for transactions.
Cardano, Binance Chain, Avalanche and Solana have a fixed supply and most have a fairer allocation than Ethereum, but the PoS mechanism is similar.
Score: 8/10 ๐
Cardano, Binance Chain, Avalanche and Solana have a fixed supply and most have a fairer allocation than Ethereum, but the PoS mechanism is similar.
Score: 8/10 ๐
Answer: Live since 2015. Ethereum has persevered without any major issues. Thumbs Up.
Score: 9/10 ๐
Score: 9/10 ๐
Answer: Initial supply of 72m was split up as follows:
60m ETH publicly sold to investors
12m ETH allocated to foundation and early contributors
messari.io
Score: 6/10 ๐
60m ETH publicly sold to investors
12m ETH allocated to foundation and early contributors
messari.io
Score: 6/10 ๐
Answer: None of the initially allocated tokens are locked.
Score: 8/10 ๐
Score: 8/10 ๐
Answer: The issuance is dynamic and predicted between 0.3m and 0.6m Eth per year, but there is also a burn of tokens for every transaction.
ultrasound.money has a great simulation.
Score: 7/10 ๐
ultrasound.money has a great simulation.
Score: 7/10 ๐
Answer: More than 50% of circulating supply was distributed to early contributors in 2015, which is a lot more than usual.
Aside from that things are quite transparent:
ethereum.foundation
draecomino.substack.com
Score: 8/10 ๐
Aside from that things are quite transparent:
ethereum.foundation
draecomino.substack.com
Score: 8/10 ๐
Answer: Based on the above and 0 red flags, weโd score Ethereum with a Going to Make It score of:
7.8/10 ๐๐๐
7.8/10 ๐๐๐
Want to try out the framework yourself?
(itโs still a prototype so weโd love your feedback)
formfaca.de
(itโs still a prototype so weโd love your feedback)
formfaca.de
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