I - Capture Value faithfully

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Statement

The token must capture the value as claimed. This means that the algorithm to capture the value must be fixed and clearly disclosed.

Non-compliant Use Cases

• I - 1. Not having a clear proposition of value
• I - 2. Prevent supply manipulations by the issuer
• I - 3. Restritc supply manipulations by whales

Solutions

I - 1. Not having a clear proposition of value

Token should be able to capture the underlying value by itself: speculative, reputational, utility, intrinsic value.

Reflecting on-chain a value externally captured cannot be decentralized. This is the case of Stablecoins and Security Tokens.

I - 2. Prevent supply manipulations by the issuer

Whereas is possible that supply can be operated in order to capture value this operation mechanism must be performed by the token logic itself and therefore embedded in the auditable algorithm.

I - 3. Restritc supply manipulations by whales

Issuers must protect tokens supply against whales manipulation. The definition of whale must be done by the issuer.