Today, the crypto market operates without a single, standardized disclosure structure.
Because of this, the market is left without significant information about the token supply and westing schedule, insider encouragement and basic financial data in rapidly growing environment. This information causes fuel disbelief and eventually, investor capital misunderstandings.
In an attempt to close that difference, blockworks are proud to release token transparency framework. Blockworks led this effort with our partners Felip montelagray Of Thia, Luis Thomase L1D, and Cosmo Jiang Of pantra.
This structure provides token projects with the ability to convey a basic set of information in the market.
Once designed as filing, token transparency framework focuses on 18 criteria, including:
- Supply schedules
- Market manufacturer and exchange list agreement
- related party transactions
- revenue streams
- Relationship between equity and token
- Foundation token allocation
- Offchen entity structures
- Financial revelations
More available information means that the industry can move towards customized best practices. Beyond the token issuers, major players in the market directly benefit from this effort:
- Professional investor Access strengthened proper diligence processes.
- Market manufacturer Get a simplified method to evaluate the opposition risk.
- Centralized exchange Struggle can accelerate the listing velocity through data and disclosure.
- Retail participant Otherwise get obfuscated information.
The token transparency framework projects represent the opportunity to improve capital allocation in the industry by helping the reliability of the signal, allows investors to reduce better risk with standardized disclosure of information, and prevent bad actors from closing ambiguity.
Blockworks see a ground -level disclosure structure as complementary as the ideas of SEC Commissioner Haster Pierce, Safe Harbor 2.0 and SEC President Paul Atkins. Effective self-regulation industry for better future success.
To end it, blockwork team Meet with SEC On 13 June to discuss framework and solicit feedback.
Initial corket
The framework now lives with an early corket of the project submission, including Jito, Aerodrome, Raydium, Stride, Jupiter and Morpho. Full presentations are publicly available on the blockwork website, and we encourage other token projects to reach out and apply.
I have great respect for all the teams who participated in the early stages of revelations. There is no example for transparency; These are the first movers to have set a new time.
The initial corket’s transparency score is more than 35, showing high visibility in the operation of each project. This will serve as a reliable signal in an area of noise that will show the market that these players are long -term oriented.
We were excited to see this push already inaccessible in the market, especially in reactions related to relationships between tokens and equity, any advisory bill for the foundation, and market -manufacturing agreements.
To keep the score of the initial Kohrt in perspective, we scored four recently launched projects independently, which we think has taken advantage of the lack of disclosure in this industry. The transparency score of the problem group ranges from 8 to 13 – unlike the initial corket. Nevertheless, each of these tokens was still listed on a centralized exchange.
Note, these scores are only for comparative purposes, as we did not reach these teams for additional information that is already available in public.
Outline details
Framework norms are divided into four categories:
- Project and Team
- Token supply and allocation
- Transaction and market structure
- financial disclosure
Investors gain visibility in operation of businesses and limit the risk of manipulation and abuse through transparent disclosure of these criteria. Negative events in the market in recent months prove to be a standardized transparency standard requirement.
Each criterion is weighed 0-3 by materiality. Then, it is calculated and collected in a “transparency score” that reflects the transparency of the project.
Importantly, this is the score No A quality evaluation on team or project. Rather, it is a measure of the overall transparency of the project or the team.
Reactions, scores and framework will be available to all open sources and publicly access to publicly.
The blockworks calls to provide the community to provide feedback on the criteria, for projects to complete the framework, to use the structure as a resource in the listing process, and to use the framework to avail the framework for investors to take advantage of the structure for proper hard work.
We see it as a work document for future improvement and recurrence. For a deep conversation, arrive out (Email protected),
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