Demand

Value of the product

What value does the actual product create?

  1. What does the project produce / sell? Is the project transparent about sales / income / revenue streams? A platform for stablecoin trading. Transparent as you can see the trading volume and calculate with it.
  2. What is the perceived value of the project and how does it increase? Low slippage that saves people money, more people use it more value it’ll create.
  3. Does it promise returns? How risky are they? Where do they come from (is more money required to achieve the returns)? LP gets return. Impermanent cost. Trading fee and periodical release.
  4. What is the products unique selling proposition? Low slippage that saves people money,

Evaluation: Each question should help get a good understanding of what is produced. The token is not the product so it is important to understand what the token should support.

Scoring: On a scale from 0 to 100, how valuable is the product, does it have a good market fit and will attract customers/users?

Utility of the token

Why do people want to buy & hold the token?

  1. What are the utilities of the token (e.g. ROI, governance, collateral usage, status, access to service etc.)? List them all and rank them by how strong they will impact the demand for the token? Governance. (Vote on rewards allocation, Boosting, proposals) Reward allocation and boosting have the biggest impact as they’ll affect roi.
  2. Do the utilities encourage holding or spending the token (e.g. if the token is used as payment for a service that might indicate people use it a lot). Stake to vote and therefore not selling it.
  3. How is the utility connect to the value of the actual product? Vote on reward allocation- link to the trading fee. Trading is generated by low slippage.
  4. What are the mechanisms with which the token accrues value? (we talked about it here) More people use the platform, more fee and token accrue more value in terms of allocating rewards.

Evaluation: The questions should give an understanding of the role of the token. Is it connected to the value of the product and what makes it worth holding.

Scoring: On a scale from 0 to 100, how likely are users to hold or use the token?