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Principles


A token is a vehicle to capture and transfer some kind of value. As a consequence, it must adhere to some fundamental principles:

REQUIRED (applies to all Fungible Tokens)

  • MUST Capture value as expected: (Token Value)
    ** token should be able to capture the underlying value: speculative, reputational, external price, intrinsic value
    ** token should be able to protect against whales manipulation

  • MUST Protect value restricted to marked forces (Token Integrity):
    ** Protect investor from Issuer Misuse
    **** prevent issuer minting unexpected tokens
    **** prevent issuer creating tokens in networks out of expected scope
    **** manage the token variables to reflect the reality of the aggregated token
    **** notify users in changes of token behaviour and allow withdraw witout lose of value
    ** Token Security: Protect stakeholders from attack
    **** protect token ownership
    **** prevent attacks and vulnerabilities
    **** protect provder disaster recovery mechanisms

  • MUST Make value available (Token Usability)
    ** Token Distribution: Provide the desired network presence to issuer
    **** token should be able to be created in any EVM enhanced network
    **** allow issuers moving to the desired network
    **** allow holders moving to the desired network
    **** allow decentralized intertoken communications

  • MUST allow holders about governance decisions
    ** Token Transparency: Provide to holders all details about the token
    **** provide consolidated data
    ** Token Reporting: Provide to holders all details about the token

OPTIONAL (decided by issuer):

  • CAN Token Privacy: Hide token operations to external observers
    ** optionally hide transactions

  • CAN Token Compliance: Comply with regulatory requirements
    ** optionally require KYC