Yano On What The New Token Transparency Framework Looks Like

Yano from the team behind a new Token Transparency Framework breaks down their open-source initiative aimed at revolutionizing disclosure standards in the crypto world. This framework seeks to provide clear, standardized evaluations for token projects, starting by celebrating the transparent and, soon, scrutinizing the opaque.

The New Token Transparency Playbook

• "We launched this token transparency framework. Um it's an open source framework, uh open source disclosure framework that we created."
• "So it's a 12-page report... we're judging them on 18 different criteria... disclosure of revenue streams, what's the relationship between the equity and the token, disclosure of advisory billings to the foundation, governance and token documentation provided, insider vesting, initial allocation..."
• A new, open-source disclosure framework has been launched to standardize how token projects report vital information, aiming to cut through the noise for investors and users.
• Each project undergoes a rigorous assessment detailed in a 12-page report, where it's judged against 18 specific criteria covering financials (like revenue streams, equity-token links), governance structures, and tokenomics (including insider vesting and initial allocations).

Inaugural Class & Setting the Bar

• "Initially we launched with six people who we thought were doing a really good job... Aerodrome, Jito, Jupiter, Morpho, Radium and Stride."
• "Jito's a 39 out of 40. Stride is a 38 out of 40. Radium's a 38 out of 40. Jupiter's a 38."
• The framework debuted by spotlighting six projects already leading by example in transparency: Aerodrome, Jito, Jupiter, Morpho, Radium, and Stride.
• These pioneers set a high bar, with Jito achieving an impressive 39 out of 40, and Stride, Radium, and Jupiter close behind at 38 out of 40, showcasing what good disclosure looks like.

The Coming Wave: Transparency for All

• "The fun part is going to be there's people who we're going to add who are not doing such a good job."
• "We wanted to celebrate the people who are doing a really good job and very transparent. The next thing that will come is people who are not so transparent. So that's when it gets fun."
• The initiative plans to expand its scope to include projects that aren't currently meeting high transparency standards, promising a more revealing look at the broader market.
• This "fun part," as Yano puts it, involves a two-pronged strategy: first, uplift the exemplary projects, then use the framework to expose and ideally pressure underperformers to improve their disclosure game.

Key Takeaways:

• Standardized Scrutiny Arrives: The Token Transparency Framework introduces a systematic, 18-criteria evaluation, offering a clear benchmark for assessing token projects beyond hype.
• Rewards & Repercussions: By first celebrating transparent projects (like Jito and Jupiter) and then planning to rate less forthcoming ones, the framework aims to incentivize industry-wide improvements in disclosure.
• Investor Toolkit Boost: This framework provides investors with a concrete tool for due diligence, moving towards a more informed and transparent crypto investment landscape.

Podcast Link: https://www.youtube.com/watch?v=sisysLY4oXY