ChainLink is a project with a clear use case driven by market demand. Supported by a strong team and an engaged community. These positive factors are undermined by opaque distribution and minimal decentralization. Resulting in a token score of 33 out of 50.

1. Get It Together: ChainLink Securely
Tying Smart Contracts to the Data
They Require

2. Link Score: 33 out of 50 Summary
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
1. Cryptoeconomics
2. Investability
3. Distribution
4. Team
5. Project
6. Scalability
7. Securability
8. Decentralization
9. Engagement
10. Risk Management
ChainLink is a project with a
clear use case driven by
market demand. Supported
by a strong team and an
engaged community. These
positive factors are
undermined by opaque
distribution and minimal
decentralization.

3. Overview
• ChainLink’s focus is securely connecting smart contracts to off-chain
data sources. Referring to itself as decentralized oracle middleware.
• Payment to providers of data services is made in the project’s native
cryptoasset, LINK. Which the providers must stake to ensure the
quality and timeliness of information delivered.

4. Cryptoeconomics: 4 out of 5
Defensible Tokenziation
Properly aligns incentives across stakeholders
Mechanism to maintain scarcity
Mechanism to generate value
×Mechanism to generate network effects

5. Investability: 3 out of 5
½ Disciplined well structured capital allocation process
½ Mechanism to capture value
Proven natural demand (Adoption increasing over time)
½ Brand
½ Defensibility

6. Distribution: 1.5 out of 5
× Insider skin in the game (allocations subject to vestings and lock ups
reflecting preferred status obatining tokens)
× Optimized for long term usage of product
× Equitable token sale (At least 80% pre-product / 50% if product is live)
½ Broad Distribution (Should not be accredited / institutional only)
Limited Supply

7. Team: 4 out of 5
Track record of historical achievements
Distinctive combination of skills
Unique qualifications for tackling problem
Experience building distributed computer systems
×Transparent and consistent ethical behavior

8. Project: 5 out of 5
Project is live and has existing users
Well written high quality white paper
Demonstrated understanding of landscape of possible competitors,
substitutes
Unique Value Proposition
Open Source

9. Scalability: 3 out of 5
Project leads can hire and develop
×Clearly defined roadmap to obtain share of market
Continually Improving Developer Experience
½ Sustainable burn rate
½ Geographically distributed usage

10. Securability: 2.5 out of 5
×Widespread distribution of miners / stakers
Systematic approach to dealing with bugs
Easily Stored Securely
×High volume of nodes
½ Untiered Rewards

11. Decentralization: 1.5 out of 5
Widespread Developer Contributions
×Roadmap for decentralized governance
×Lack of concentrated holders
×Would function normally without creators
½ Global

12. Engagement: 5 out of 5
Developer adoption protocol
Active commenting reddit
Long lasting ongoing discussions in Slack, Telegram, Discord, etc…
Positive Twitter sentiment
Uptrend in Google Trends

13. Risk Management: X out of 5
Code Audit
×Anti fragile - gets stronger when stressed
1
2
Low funding risk (fiat)
Attack Risk
Regulatory Risk

14. Continue Reading
Crypto Jungle Write Up on the Link Token
Full ChainLink Report in PDF

15. Stay up to date on Steve’s latest Cryptoasset Research
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Steve Miller
Steve is a CFA® Charterholder and founder of Crypto Jungle. A site devoted to
helping people hack through the weeds to find the gems. The CFA designation
is globally recognized and attests to a charterholder’s success in a rigorous and
comprehensive study program in the field of investment management and
research analysis.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
On Twitter @TokenAuditor

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