Based on the original datonomy™️ methodology and the publicly available approximated list of underlying assets as of late 2022, I came up with a structured plan for re-evaluating the existing framework, specifically focusing on the decentralised finance (DeFi) sector and its sub-sectors, since it encapsulates about 20% of the entire classification and arguably has the most innovation happening.

As a result of the sub-sector analysis, the following updated token analysis framework is proposed:

• 301010, Decentralised Exchanges
  Definition: Protocols enabling peer-to-peer asset exchanges using automated market-making or order book models.
  Example: $UNI

• 301020, Derivatives Trading
  Definition: Platforms facilitating the creation and trading of derivatives like options, futures, and synthetic assets.
  Example: $DYDX

• 301030, Decentralised Lending
  Definition: Protocols offering lending and borrowing services, often using collateralised assets in liquidity pools.
  Example: $AAVE

• 301040, Stablecoin Issuers
  Definition: Protocols managing the issuance and governance of stablecoins.
  Example: $MKR

• 301050, Prediction Markets
  Definition: Protocols enabling users to wager on the outcomes of events, leveraging blockchain-based decentralised predictions.
  Example: $GNO

• 301060, Asset Management
  Definition: Platforms offering portfolio management tools for optimising yield or managing risks in DeFi.
  Example: $YFI

• 301070, Crowdfunding
  Definition: Platforms enabling peer-to-peer funding for projects using tokenised governance mechanisms.
  Example: $GTC

• 301080, Insurance
  Definition: Protocols offering decentralised risk mitigation services, such as smart contract failure or hack insurance.
  Example: $NXM

• 301090? Yield Optimisers, TBD
  Proposed Definition: Carving out protocol-specific yield farming out of Asset Management due to its growth in popularity
  Example: $CVX

• 3010100? Liquid Staking, TBD
  Proposed Definition: A sub-sector for liquid staking governance tokens due to staking innovation and not a direct fit into Decentralised Lending or other sub-sectors
  Example: $LDO

• 3010110? RWA Tokenisation, TBD
  Proposed Definition: A sub-sector for RWA initiatives facilitating the tokenisation of physical assets and not a direct fit into Decentralised Lending or other sub-sectors
  Example: $ONDO

• 3010120? Restaking and Liquid Restaking, TBD
  Proposed Definition: A sub-sector for restaking and liquid restaking governance tokens due to restaking innovation and not a direct fit into Liquid Staking or other sub-sectors
  Example: $EIGEN

This proposed structure ensures alignment with the original methodology while addressing the rapidly evolving DeFi landscape.

I would be happy to hear your thoughts on the additional sub-sectors, proposed methodology and approach, as well as prioritisation for the future analyses' direction.

Follow for first sub-sectoral analyses in the coming weeks, introducing new assets to each sub-sector, removing the old ones from the original methodology and cross-sectoral performance review for the year of 2024 as we wrap up this exciting year and gear up for an even more exciting 2025.

Sources:

• https://www.msci.com/documents/1296102/33887102/Datonomy+Methodology.pdf

• https://sectors.coinmetrics.io/

• https://coinmetrics.io/datonomy/

• https://gitbook-docs.coinmetrics.io/reference-data/datonomy-overview

• https://docs.coinmetrics.io/api/v4/#tag/Catalog/operation/getCatalogExchangeAssetMetrics

• https://coinmetrics.substack.com/p/state-of-the-network-issue-277

Based on the original datonomy™️ methodology and the publicly available approximated list of underlying assets as of late 2022, I came up with a structured plan for re-evaluating the existing framework, specifically focusing on the decentralised finance (DeFi) sector and its sub-sectors, since it encapsulates about 20% of the entire classification and arguably has the most innovation happening.

As a result of the sub-sector analysis, the following updated token analysis framework is proposed:

• 301010, Decentralised Exchanges
  Definition: Protocols enabling peer-to-peer asset exchanges using automated market-making or order book models.
  Example: $UNI

• 301020, Derivatives Trading
  Definition: Platforms facilitating the creation and trading of derivatives like options, futures, and synthetic assets.
  Example: $DYDX

• 301030, Decentralised Lending
  Definition: Protocols offering lending and borrowing services, often using collateralised assets in liquidity pools.
  Example: $AAVE

• 301040, Stablecoin Issuers
  Definition: Protocols managing the issuance and governance of stablecoins.
  Example: $MKR

• 301050, Prediction Markets
  Definition: Protocols enabling users to wager on the outcomes of events, leveraging blockchain-based decentralised predictions.
  Example: $GNO

• 301060, Asset Management
  Definition: Platforms offering portfolio management tools for optimising yield or managing risks in DeFi.
  Example: $YFI

• 301070, Crowdfunding
  Definition: Platforms enabling peer-to-peer funding for projects using tokenised governance mechanisms.
  Example: $GTC

• 301080, Insurance
  Definition: Protocols offering decentralised risk mitigation services, such as smart contract failure or hack insurance.
  Example: $NXM

• 301090? Yield Optimisers, TBD
  Proposed Definition: Carving out protocol-specific yield farming out of Asset Management due to its growth in popularity
  Example: $CVX

• 3010100? Liquid Staking, TBD
  Proposed Definition: A sub-sector for liquid staking governance tokens due to staking innovation and not a direct fit into Decentralised Lending or other sub-sectors
  Example: $LDO

• 3010110? RWA Tokenisation, TBD
  Proposed Definition: A sub-sector for RWA initiatives facilitating the tokenisation of physical assets and not a direct fit into Decentralised Lending or other sub-sectors
  Example: $ONDO

• 3010120? Restaking and Liquid Restaking, TBD
  Proposed Definition: A sub-sector for restaking and liquid restaking governance tokens due to restaking innovation and not a direct fit into Liquid Staking or other sub-sectors
  Example: $EIGEN

This proposed structure ensures alignment with the original methodology while addressing the rapidly evolving DeFi landscape.

I would be happy to hear your thoughts on the additional sub-sectors, proposed methodology and approach, as well as prioritisation for the future analyses' direction.

Follow for first sub-sectoral analyses in the coming weeks, introducing new assets to each sub-sector, removing the old ones from the original methodology and cross-sectoral performance review for the year of 2024 as we wrap up this exciting year and gear up for an even more exciting 2025.

Sources:

• https://www.msci.com/documents/1296102/33887102/Datonomy+Methodology.pdf

• https://sectors.coinmetrics.io/

• https://coinmetrics.io/datonomy/

• https://gitbook-docs.coinmetrics.io/reference-data/datonomy-overview

• https://docs.coinmetrics.io/api/v4/#tag/Catalog/operation/getCatalogExchangeAssetMetrics

• https://coinmetrics.substack.com/p/state-of-the-network-issue-277