Financial Sustainability Metrics

Financial sustainability metrics are quantitative indicators used to evaluate whether a protocol can remain viable over the long term. These metrics include the protocol's burn rate, revenue growth, treasury runway, and the sustainability of its incentive programs.

By analyzing these indicators, stakeholders can assess the risk of the protocol running out of funds or becoming unable to support its operations. These metrics are vital for fundamental analysis and risk management, especially in the volatile cryptocurrency market.

They provide a clear picture of the protocol's economic health and its ability to weather market cycles, making them essential tools for both developers and investors.