SVET RATING Manual (light)
SVET Rating is the first public human actions driven rating. It takes into account combine effects of cognitive, emotional and social factors on the decisions of individuals and institutions dealing with crypto currencies and blockchain projects. SVET Rating includes 16 metrics accounting for four main drivers of public behavior on the crypto market: System (technology), Vision (economy), Execution (organization) and Tokenomics (finance). It integrates insights from independent experts as well as everyday users of cryptocurrencies.
- Security: Theoretically, there is no unbreakable protocols. Even the most battle-proved platforms had a couple of bad days in their past. SECURITY Rating 'b+' and higher is assigned to those projects which meet all major safety requirements such as an impeccable consensus algorithm, absence of registered protocols breaches, continuous code upgrades consistent with rising threat level, periodic code audit, bounty programs for hackers etc.
- Velocity: Scalability is one of the most desirable features of popular protocols. Improving it must be the necessary part of a long-term growth plan for all projects rated "b+" and higher on their VELOCITY side.
- Engineering: Some people are just good at building staff. They enjoy being challenged by the complexity of contemporary technologies. Also they have a character to see their designs to be fully implemented. They also follow the latest advancements and do timely upgrades. However, more often than not they keep being seduced by the next big and even more beautiful architectures they can create. That leaves users of their older but still well functioning platforms in a dust. ENGINEERING Rating assigns 'b+' to 'a+' to such masterly built mega-protocols. However, ratings drop as platform creators start to deviate from their initial objectives and to soften under a competitive pressure.
- Transparency: Peoples suffer when they avoid a burden of decision making by delegating it to a selected (or elected) few. The diametrically opposite governance model is called The Nakamoto Consensus. It is 'a set of rules that verifies the authenticity of a blockchain network, using a combination of the proof-of-work consensus algorithm on a Byzantine Fault Tolerance (BFT) peer-to-peer network'. In fact, there are many different consensuses with different degree of decentralization. However, that which was created by Satochi Nakamoto became the one inspiring most of us. TRANSPARENCY Rating "b+" and higher is assigned to platforms with highest number of fully independent (decentralized) nodes.
- Singularity: One size does not fit all. Small is beautiful. Specialization matters. Those inspired by such maxims create platforms for niche markets. SINGULARITY Rating "b+" and higher is assigned to specialized, unique projects / protocols facing a low competition and enjoying high users loyalty
- Volume: Most platforms attempt to reach as many peoples as they can. Only few become truly popular. It is supposed to be very difficult to conquer the world. VOLUME Rating 'b+' and higher is assigned for projects with highest number of users.
- Empathy: A mediocre but inspiring idea will go further than a great but non attended one. SVET Rating assigns b+ and higher to projects capable to move masses by galvanizing peoples and rising high hopes for the great future waiting ahead. Rating slips down as those hopes and dreams fade away.
- Timing: There are peoples who think that cryptocurrencies are destined to make the world a better place. Some call them idealists. Those visionaries readily align their financial future with over-ambitious, seemingly unrealistic ideas and do not mind very lengthy and complicated implementations programs. Ratings b+ and higher are assigned to projects which vigorously pursue such ideas by timely passing all milestones on their long way to the mountain top. Rating goes down when travelers resolve diminish and they get off the path.
- Solution: Cash is the king. A business must stay in the black. A company which gets in pink is not gonna fly. Who will argue with that? Those, who invest into startups, probably. Those, who never do, look for a positive P&L before they do any move. Ratings b+ and higher are assigned to projects with a solid business model. Ratings decline as profits get zeroed and / or costs skyrocket.
- Validity: Keepers of status quo are at odds with innovators. However, that does not stop traditionalists from profiteering during tech hypes. Still, they firmly believe that governments regulations bring more good than harm to the new industry. Of course, they also do not mind decentralized protocols being eventually centralized. Ratings b+ and higher are assigned to 100% legitimized projects with very strong KYC and AML features.
- Equity: There are a plethora of capital holders, which made a fortune following Warren Buffet or Peter Lynch. VCs, on the other hand, often follow each other, although, of course, they all claim to be 'contrarians'. Call it 'networking capitalism', if you want. Still, they are a force to be recon with. EQUITY Rating b+ and higher is assigned to projects with a very strong Equity side in their balance sheets, which usually signals big investments rounds they have been trough recently. As money are burned - projects are de-rated.
- Team: "Coming together is a beginning. Keeping together is progress. Working together is success." Those who do not question what Henry Ford said about teamwork a century ago, also must believe than humans can't be replaced by machines, ever. TEAM Rating b+ and higher is assigned to projects run by exceptional leaders surrounded and respected by gifted professionals. Ratings dissipate as team energy evaporates and talents start leaving.
- Sustainability: "Not all coins are born equal. Some are more equal to USD than another. A wise-man might think that a stablecoin is his best choice. However, the regulator might think otherwise. SUSTAINABILITY Rating b+ and higher is assigned to projects which manage to keep its coins / token price relatively stable long-term. Ratings destabilize as its bearers do.
- Value: "Buying low and selling high" are you trying to do? Good. Searching for undervalued projects means that you already know what their 'real value' is. You are a rare exception, then. There are 15 valuation methods listed in wikipedia. Which one is yours? VALUE Rating b+ and higher is assigned to projects which coin / tokens "appear" to be OVERvalued whatever valuation criteria you apply. Ratings are devalued as projects are UNDERvalued.
- Engagement: Those who give often must know what coin / token do other peoples often ask for. He must be pragmatic and look for 'usage' - not for 'image'. ENGAGEMENT Rating b+ and higher is assigned to projects token / coin with high usability (real or potential) across multiple platforms as well as outside its. It means that being good only for 'trading' leads to a lower rating.
- Transactions: There are many coins. However, only a handful are used for transactions in the "real world". It is difficult enough to live exclusively on crypto. Things become even more complicated when you travel. TRANSACTIONS Rating 'b+' and higher is assigned to projects issuing coins / tokens with high transportability (high speed and low transaction cost), accessibility (listed on many exchanges) and 'storability' (wallets availability).