Tokenomics Based Weighting

Tokenomics based weighting incorporates the unique economic design and incentive structures of blockchain protocols into the index construction process. Instead of relying solely on price or market cap, this methodology considers factors like staking ratios, emission schedules, and governance utility.

By analyzing how tokens accrue value through protocol mechanisms, index providers can weight assets based on their long-term economic sustainability rather than short-term price action. This is particularly relevant for DeFi indices where protocol revenue or total value locked serves as a proxy for intrinsic value.

It provides a more fundamental perspective on digital assets, moving beyond speculative market trends. Such indices are increasingly used for structured products that aim to capture the growth of specific protocol ecosystems.