Blockchain protocol due diligence framework

BLOCKCHAIN
PROTOCOL
DUE-DILIGENCE
FRAMEWORK
Protocol’sname: Clickhere toentertext.
Protocol’slogo:
Click the small icon above to enter a logo.
Compiledby: Clickhere toentertext.
Reportstart date: Clickto entera date.
Reportenddate: Clickto entera date.

Table of Contents
Premise......................................................................................................................................................................2
Guidelines..................................................................................................................................................................2
Identikit and technologies used...................................................................................................................................3
Use case & business model .........................................................................................................................................5
Fundraising and tokenomics........................................................................................................................................6
Fundraising.............................................................................................................................................................6
Tokenomics............................................................................................................................................................6
Post-TDE ................................................................................................................................................................7
Core team, Partners, VCs and Endorsers ......................................................................................................................9
Team’s KYC and professional experience..................................................................................................................9
Communicating with the team.................................................................................................................................9
Stakeholders support............................................................................................................................................10
Communication, Social Channels, and Community......................................................................................................11
Social channels.....................................................................................................................................................11
Email addresses & contact details..........................................................................................................................11
Investors’ relations ...............................................................................................................................................11
Media coverage & community perception..............................................................................................................11
Audits, Security, and Code.........................................................................................................................................13
Verified source code .............................................................................................................................................13
Industry standards and design...............................................................................................................................13
Privileged roles scope............................................................................................................................................13
Documentation.....................................................................................................................................................14
Smart contracts language version..........................................................................................................................14
Test suites............................................................................................................................................................15
Marketing, development & progress..........................................................................................................................16
Considerations on competitors and other potential threats ........................................................................................18
Legal and regulatory status .......................................................................................................................................19
Entity and identities..............................................................................................................................................19
Regulatory status..................................................................................................................................................19
On misconduct.........................................................................................................................................................21
Questions for the team.............................................................................................................................................22
Final thoughts ..........................................................................................................................................................23
Sections’ ratings....................................................................................................................................................23
The SW in SWOT...................................................................................................................................................23
Verdict.................................................................................................................................................................23

2
Premise
Thisis a template documentforanalysingandreportingonpermissionlesspublicblockchaininvestmentopportunities.It
ismeantas a holisticresearchtool forthe investmentanalysttoidentifyanypotential red flagforthe investment.
The sectionsandfieldswithinthisdocumenthave beendrawnedbyanalysingblogposts,interviews,evaluation/listing
criteria,listingrequestformsandacademicarticlesfrom60 crypto firmsamongstlaunchpads,investmentfunds,
exchanges,andcryptocurrencytrackers.Inaddition,Ihave added,where personallydeemednecessary,evaluation
criteriafromtraditional investment/businessanalysis.Youcanreadmore on thisMediumarticle here.
Thisdocumentwascreatedas a summaryforunderstandingwhatventure capital andinvestmentfundsvalue the most
whenassessingblockchainprotocolsfortheirportfolio.Asithasdevelopedintoamore thoroughresearchtool and
goingthroughcontinuousdevelopment,feel free tocontactme to discussthese assessmentcriteriabyemail at
davidepasini@pm.com.
Guidelines
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Thisdocumentcan eitherbe printedorsavedasa regularMS Word documentor PDFdocument.

3
Identikit and technologies used
Protocol’sname: Clickhere toentertext.
Currency’sticker:
(If applicable)
Clickhere toentertext.
Industry: Clickhere toentertext.
Use case: Clickhere toentertext.
Elevator’spitch: Clickhere toentertext.
Website: URL: Clickhere toentertext.
Whitepaper: URL: Clickhere toentertext.
Developmentstage:

Blockchaintype: Choose anitem.
Consensusalgorithm: Clickhere toentertext.
Programminglanguage/s:
☐ C++ ☐ Python ☐ JAVA ☐ Solidity ☐ RUST
☐ Golang ☐ C# ☐ JavaScript ☐ Simplicity ☐ Rholang
☐ PHP ☐ Ruby ☐ SQL ☐ Erlang ☐ CX
☐ Vyper ☐ Chialisp ☐ Reach ☐ LLL ☐ Serpent
☐ Other:Clickhere toentertext.
Parentblockchain: Clickhere toentertext.
Tokenstandard: Clickhere toentertext.

4
CurrentTPS Clickhere toentertext.
Scalabilitysolution Clickhere toentertext.
TPS afterimplementation: Clickhere toentertext.
Workingblockexplorer?
URL: Clickhere toentertext.
Notes: Clickhere toentertext.

5
Use case & business model
Use case: Clickhere toentertext.
Products/ servicesdescription: Clickhere toentertext.
Revenue mechanisms:
For the team/ company:
For the user:
Tokenutility: Clickhere toentertext.
Product/marketfit:
Pain point addressed:
Why would it beinteresting to use(product/service/token) and could itgain sustainable traction?
What is the track record or demand for this kind ofproduct/service/tokenlike?
Innovationand/orUSP:
Type of Innovation:
USP:
Notes Clickhere toentertext.

6
Fundraising and tokenomics
Fundraising
Sourcesof fundspriorto public
fundraisingevents:
Date:
Click to enter a
date.
Source:
Click here to enter text.
Amount:
Click here to enter
text.
Date:
Click or tapto
enter a date.
Source:
Amount:
Click here to enter
text.
Has there beenanysort of pre-
sale event(SAFT,ICO,IDO,
DYCO, DAICO, pre-seed,seed,
seriesA,SHO,community
round,meritround,airdrops
etc.)
Total investmentexpected: Clickhere toentertext.
Pre-sale tokenprice/s: Clickhere toentertext.
Expectedpost-TDEtokenprice: Clickhere toentertext.
Launchpadsand VCs
supportingthisproject:
Acquisitionvenuesandoffers:
Platform:
Click here to enter
text.
Link:
Click here to
enter text.
Offer:
Platform:
Click here to enter
text.
Link:
Click here to
enter text.
Offer:
Team’svestingperiodsand
lockups:
Investors’vestingperiodsand
lockups:
Clickhere to entertext.
Tokenomics
Publishedtokenomics: URL: Click here toentertext.

7
Are tokenomics communicatedclearly, especiallywithrespect to tokenallocation?
Tokensupply:
Amount:
Specifyrationale:
Tokenallocation: Clickhere toentertext.
Fair distribution:
Tokendistributionschedule: Clickhere toentertext.
Monetarypolicy Clickhere toentertext.
Post-TDE
Market cap: Clickhere toentertext.
CoinMarketCaprank#: Clickhere toentertext.
Transactionvolume: Clickhere toentertext.
Where isvolume originating
from?
1-D price chart Paste here 1-D price chart from float.
Currencyvelocity: Clickhere toentertext.
Savingsrate: Clickhere toentertext.

8
Crypto-exchanges: Clickhere toentertext.
Markets: Clickhere toentertext.

9
Core team, Partners, VCs and Endorsers
Team’s KYC and professional experience
Anonteam:
FoundersKYC
Have founders providedownKYC, are theywilling to, or cantheir identitybe cross verified (e.g.
through video interviews/calls talking about the project)?
Founders’motivation:
Name:
Click here to enter
text.
Domainof expertise:
Past problems solved:
Genuinely
passioned
☐
Name:
Click here to enter
text.
Domainof expertise:
Past problems solved:
Genuinely
passioned
☐
Proventeam?
Notes:Clickhere toentertext.
How manydevelopers?
Full-time:
Part-time:
In-house/Outsourced% split:
Communicating with the team
How was the process of communicating withthe team? What is the experience like while communicatingwith them?
Was the teamaccessible andwillingto answer questions and discuss issues or were theylazy, overlycunning, arrogant, or unprofessional?
Otherimpressions: Clickhere toentertext.

10
Stakeholders support
Governmentsupport:
Institutionaladoptionand
othernon-executivebeneficial
owners:
Name
Click hereto enter text.
Website
Join date
Click hereto enter a date.
Before or after mainnet?
Name
Website
Join date
Click hereto enter a date.
Before or after mainnet?

11
Communication, Social Channels, and Community
Social channels
Channel Status # Subscribers
Publishing
frequency
Community
participation
Team’s support
Protocol’s bot
activity
Spam bots’
activity
Click hereto
enter text.
Choose anitem.
Click hereto
enter text.
Click hereto enter
text.
Choose anitem. Choose anitem. Choose anitem. Choose anitem.
Total:
Click hereto
enter text.
Email addresses & contact details
General inquiriesemail:
Dedicatedpurpose emails:
Core team’scontacts:
☐ Social profiles Please specify:Clickhere toentertext.
Investors’ relations
Investors’Relationspage:
3rd
party financial audits:
Media coverage & community perception
What are social influencers
saying:

12
Is cryptomediacoveringthe
project?
Is mainstreammediacovering
the project:
Communityfeel:
Choose anitem.

13
Audits, Security, and Code
Verified source code
Has code beenaudited? Notes:Listthe auditingfirmshere and
the linkstothe reports.
Is the source code for all smart contracts uploadedona reliableplatform
such as Etherscan? URL: Clickhere toentertext.
Is all code sharedon platformssuchas GitHubpriordeployment?
If the tokenisupgradable,isversioningusedateachrelease andare
changescommunicatedeachtime?
Is the protocol offeringbugbounties?
Industry standards and design
Are tokensbuiltfromscratch or well-vettedlibrariesare used? Clickhere to entertext.
Are token-relatedfunctionsminimal andseparated fromthe restof the
protocol?
External tokendependencies: Choose anitem.
Lessis more approach:
Privileged roles scope
How are superuserprivilegesstructuredandwhatare privilegedrolesallowedtodo?

14
Can any role freeze,burn,orotherwise modifyuser’sfundswithoutuser’s
consent? Notes:Clickhere toentertext.
In the eventof a protocol upgrade,can the userapprove it?
If an upgrade mustbe implemented unilaterally,isthere aquorum-based
mechanisminplace? Notes:Clickhere toentertext.
Documentation
Is the technical documentation
available?
Is the token’spurpose well
defined? Notes:Clickhere to entertext.
Project’sarchitecture +
dependencies: Notes:Clickhere toentertext.
Superuserrolesthataffect
token’sbehaviouroruserfunds: Notes:Clickhere toentertext.
Securitycontrolsusedto
manage superuserkeysand
roles: Notes:Clickhere toentertext.
Smart contracts language version
Is the mostrecentversionused? Versionused: Clickhere toentertext.
Are interfacesusedtointeract
withcontracts of older
versions?
Are all contracts pinnedtoa
specificversion?

15
Test suites
Doeseveryfunctionhave itsownunittest?
Have end-to-endtestsbeenimplementedthoroughly?
Before deploymenttomainnet,hasthe projectbeen deployedtoa testnet
and testedthoroughly?
Didthe projectgothrough automatedanalysistoolssuchasSlither,Echidna
and Myrhril or Certora? Notes:Clickhere toentertext.
Notes: Click here to entertext.

16
Marketing, development & progress
Project’slook,feel,
documentationandoverall
implementation:
☐ Curatedand professional ☐ Outrightcopycat
☐ Childish/unprofessional ☐ Notcurated
☐ Faulty
☐ Other: Clickhere toentertext.
Roadmap:
Detailed, specific, andforward-looking/updated?
Coherence betweenpromises and delivery:
Is the project’s team transparent andcommunicative regardingthe
project’s development, roadblocks it encounters and howit is going
to overcome present difficulties?
Partnershipsinplace: Clickhere toentertext.
Willingnesstocontribute to
social impact: How: Clickhere toentertext.
Environment-friendly:
How: Clickhere toentertext.
Self-hostedAMAs:
AMA venue:Clickhere toentertext.
Qualityof contents: Choose anitem.

17
Interactive oraddressingusers/viewersconcerns?
Is the projectunderactive
developmenton
Github/Gitlab/Bitbucket?
☐ Github ☐ Gitlab ☐ Bitbucket ☐ Other:Clickhere toentertext.
Notes:Clickhere toentertext or screenshots.
Have trademarksbeen
registered?
Are there patents
pending/registeredbythe
project/founders? Notes:Clickhere toentertext.

18
Considerations on competitors and other potential threats
Who isthisprojectcompeting
with?
Strengthsof incumbents: Clickhere to entertext.
How isthe projectaddingvalue
beyondexistingsolutions?
Otherpotential threats: Clickhere toentertext.

19
Legal and regulatory status
Entity and identities
Is the projectincorporated?
Where:Clickhere toentertext.
Ask the team:
Are you planningtoandwhere? Clickhere toentertext.
Entitytype: Clickhere toentertext.
Entityname: Clickhere toentertext.
Chamberof Commerce
registration:
Chamberof Commerce registration:
Paste Chamberof Commerce registration screenshothere.
Domainname WHOIS:
Paste WHOIS screenshothere.
Regulatory status
Is the projectcurrentlyunder
scrutinyby regulatory
agencies?
Is the projectproactively
engagingandcomplyingwith
regulatoryagencies?
Is there a legal opinionletter
on utilityvs.securitytoken?
URL: Clickhere to entertext.

20
Has the projectmade any
claimsaboutthe tokenbeing
an investmentora security,or
that there will be arise inprice
or a ROI?

21
On misconduct
Team misconductcheck: Clickhere toentertext.
Protocol misconductcheck: Clickhere toentertext.
Incongruentormisleading
information:

22
Questions for the team
What isthe currentvaluationandhowisit estimated?
If any, whatare the differentofferingsandwhatare the mechanicsbetweenthem?
Why doyou see thisproject becomingwidelyadopted?
Do youhave securityconcernsthat needtobe addressed?
What promotional effortsandmarketinginitiativesare youcurrentlyworkingontoincrease
useradoption,value andgrowth?
What partnershipsare youcurrentlyseekingout?
How are operationscurrentlyfinanced,andhow are youplanningtofinance theminthe
future?

23
Final thoughts
Sections’ ratings
Identikitand technologyused Choose anitem.
Use case & businessmodel Choose anitem.
Fundraisingandtokenomics Choose anitem.
Core team,Partners,VCs and Endorsers Choose anitem.
Communication,Social Channels,andCommunity Choose anitem.
Audits,Security,andCode Choose anitem.
Marketing,development&progress Choose anitem.
Considerationsoncompetitorsandotherpotential threats Choose anitem.
Legal and regulatorystatus Choose anitem.
On misconduct Choose anitem.
Questionsforthe team Choose anitem.
The SW in SWOT
STRENGTHS
WEAKNESSES
Verdict

Blockchain protocol due diligence framework

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