This document is designed to show clarity on our systematic process to auditing tokenomics frameworks and our structured audit methodology, detailing the six key verticals we focus on:

⓵  - Distribution Fairness
⓶ - Economic and Monetary Policies
⓷ - Investor Conditions
⓸ - Valuation and Performance
⓹ - Listing & Liquidity
⓺ - Utility & Value Flow

A truly end-to-end tokenomics audit

⓵  - Distribution Fairness

This section focuses on how tokens are allocated across different stakeholder groups.

We analyze whether the distribution is balanced, how it compares to top-performing projects, and who actually controls the circulating supply over time (critical for governance purposes), especially in the early stages when it matters most.

⓶ - Economic and Monetary Policies

This vertical breaks down the mechanics behind token issuance, how supply enters the market, and how it dilutes existing holders over time. We focus on four main areas: inflation, supply shocks, float, and dilution risk.

⓷ - Investor Conditions

In this vertical, we focus on everything that matters to public sale and private investors how the rounds are structured, what your payback looks like at TGE, how fairly the different rounds are balanced and the position exit risk.

We analyze each investor round in detail, mapping entry price, unlocks, vesting terms, and overall exposure. From that, we calculate which round offers the best terms, which one carries the most risk, and whether there’s any structural conflict between rounds.

⓸ - Valuation and Performance

In this vertical, we make sure the project is not priced out of the market.

We first compare its FDV against the top five competitors, the last 15 launches, and all the launches in the past year (of the niche, like RWA).

On top of that, we include our Vesting Diluted Valuation Model, which calculates the market cap needed at each unlock event for investors to break even.

And finally we are able to point which is the best valued round for private investors (by both valuation models), whats the performance of the niche, and if the project is overvalued or undervalued in terms of relative comparison to the niche, and current state of the market.

⓹ - Listing & Liquidity

We analyze how strong the listing strategy is, and whether it supports the tokenomics design. How much market share they are capturing (both CEXs and DEXs), which exchanges they are listing on, and how those exchanges have performed over the past year.

Everything we’ve covered in this audit so far: distribution fairness, monetary policy, investor terms, valuation, and historical performance is critical to understanding a token’s economic structure.

But structure alone is not enough.

Even a perfectly timed vesting schedule or a fairly priced listing can collapse if there’s no actual demand for the token, or if that demand isn’t directed in a way that retains value inside the ecosystem.

⓺ - Utility & Value Flow

This vertical examines whether the token has a reason to exist — and more importantly, a reason to be held.

We apply first-principles reasoning: 

• What value does the system design create? 

• Where does that value go? 

• And how does the token participate in that flow?

We map three core layers of the token economy:

Value Creation: Is the protocol producing anything of economic or social value (transactions, compute, liquidity, data)?

Value Capture: Does the system retain part of that value inside the network/company/foundation, instead of letting it leak to external actors or intermediaries?

Value Accrual: Does the token itself absorb that captured value, through mechanisms like buybacks, burn, or fee redistribution?