Eligibility Criteria

Eligibility Criteria for Token Inclusion in DCgen's Indices

DCgen has meticulously crafted a comprehensive set of eligibility criteria for tokens to ensure a reliable and accurate representation of the various markets. Drawing inspiration from the International Token Classification (ITC) framework established by the International Token Standardisation Association (ITSA), our criteria encompass four distinct dimensions to evaluate and identify tokens that align with our standards and vision. These dimensions ensure a holistic assessment, capturing the essence of each token's value and utility.

1. Basic Token Characteristics

   • Tokens must be part of the bespoke ecosystem.

   • Projects must maximise token-holder value above shareholder value.

   • Tokens must not be classified as securities in both the EU and US.

   • Eligible Economic Purpose (ITC) dimensions are restricted to:

     • Utility Token: Governance

     • Utility Token: Ownership

     • Utility Token: Settlement & Governance

   • Tokens belonging to the following Economic Purpose (ITC) dimensions are ineligible:

     • Payment Tokens

     • Utility Tokens: Settlement

     • Utility Tokens: Access

     • Utility Tokens: Settlement & Access

     • Investment Token

     • Tokens with Other Economic Purposes

1. Token Supply Features

   • Token supply projections must remain consistent over a four-year period.

   • A minimum of 60% of the forecasted four-year supply must be in circulation currently.

   • Token economics must not include locking mechanisms disadvantageous to index investors.

1. Project Traction Features

   • Projects must be recognised for their valuable protocols or products.

   • Tokens linked to or showing Ponzi scheme characteristics are ineligible.

   • Projects must demonstrate substantial usage, verified either by total value locked (TVL) metrics or specific user metrics.

   • The protocol or product must have been operational for at least 180 consecutive days.

1. Protocol Safety Features

   • Every protocol must undergo a security audit conducted by a recognised smart contract auditor.

   • In the event of security breaches, there should be prompt resolution, with published, detailed documentation of the incident and corrective actions.

   • Tokens must maintain sufficient liquidity.

DCgen's criteria, rooted in the ITC framework and data from ITSA, ensure the selection of secure, valuable, and well-supported tokens. This approach offers a robust benchmark for the Ethereum community. Integrating the ITC framework ensures adaptability to regulatory changes, promoting transparency and safety in the global cryptocurrency market.