Begin with network utility
Ask what the network enables and who uses it. Distinguish useful activity from promotional attention, and consider whether a token is necessary to the network’s design.
Study incentives and supply
Examine issuance, distribution, governance, and the roles of participants. Network adoption does not automatically translate into value for every associated token.
Consider the operational risks
Custody, smart contracts, liquidity, and changing rules introduce distinct uncertainties. Map these risks before forming a thesis, and treat incomplete information as a limitation.
Separate adoption from incentives
Some activity may be driven by temporary rewards rather than sustained demand. Examine who participates, what they do, and whether the behavior has a reason to continue after incentives change.
Follow the value flows
Map how payments, fees, rewards, and issuance move between participants. A network can provide useful services while leaving uncertain how much economic value accrues to a particular token.
Write down the dependencies
Protocols may rely on infrastructure, governance processes, external data, or other networks. Identify these connections and consider what happens when a dependency fails.
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