DATONOMY™

METHODOLOGY
Guiding Principles and Methodology for Datonomy

November 2022

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 DATONOMY METHODOLOGY | NOVEMBER 2022

Contents 1 INTRODUCTION 3
1.1 PHILOSOPHY AND OBJECTIVES OF CLASSIFICATION 3
1.2 DATONOMY STRUCTURE OVERVIEW 4
2 ASSET ELIGIBILTY FOR DATONOMY CLASSIFICATION 6
2.1 DIGITAL ASSET ACCESSIBILITY 6
2.2 EXCHANGE COVERAGE UNIVERSE 7
3 GUIDELINES FOR DATONOMY CLASSIFICATION 8
3.1 DATONOMYDATA SOURCES 8
3.2 DATONOMY CLASSIFICATION REVIEW 9
3.3 DATONOMY CLASSIFICATION DECISIONS 9
4 DATONOMY STRUCTURE REVIEW 10
5 DATONOMY GOVERNANCE BY MSCI 10
5.1 CONSULTATION PROCESS 10
6 DATONOMY DEFINITIONS 11
6.1 HIERARCHY LEVEL DEFINITION 11
6.2 CLASS, SECTOR & SUB-SECTOR DEFINITIONS 11

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 DATONOMY METHODOLOGY | NOVEMBER 2022

1 INTRODUCTION
The digital asset ecosystem has undergone a rapid increase in complexity and now
comprises a wide range of products and services across different blockchain
technologies. In 2009, there was only one cryptocurrency (i.e., bitcoin) and one
application (i.e., peer-to-peer payments). Since then, the ecosystem has grown
across use cases, diversity of architecture, and sheer number of coins and tokens.
Estimates from third-party data providers suggest thousands of digital assets are
traded on private exchanges1, not including the countless coins and tokens
generated on different protocols. Given the expansion of, and interest in, the digital
asset market, there is a persistent need for a robust digital asset classification to
add structure and clarity to this growing universe.
To this end, in 2022 MSCI Inc. (MSCI), Coin Metrics Inc. (Coin Metrics) and Goldman
Sachs & Co. LLC (Goldman Sachs) have developed datonomy, a taxonomy for
classifying a broad universe of digital assets with a standardized process that will
evolve alongside the ecosystem. As of datonomy’s launch, MSCI serves as the sole
and exclusive administrator of datonomy and this methodology (datonomy
Administrator).
Further details regarding the structure and methodology of datonomy are
summarized in the sections below.

1.1 PHILOSOPHY AND OBJECTIVES OF CLASSIFICATION

The objective of datonomy is to categorically break down the products and services
that these digital assets help facilitate and create a structure that connects the
observable usage patterns that have emerged in this space. These classifications
are designed to help digital asset users, investors, researchers, and others to
navigate the ecosystem through the same structural lens.
Datonomy adheres to the following principles in its methodology:
• Context-of-use: Digital asset classifications are based on what the
asset and its underlying protocol are primarily used for, as defined by
the protocol creators and what is widely observed in the market.
Assets within a classification category are reasonably expected to
compete, achieve similar goals, or perform similar services and
operations.

• Intuitive: Datonomy is intended to reflect general market perceptions

around protocol intent and usage patterns. The names and terms

1As of October 24, 2022, there are 21,482 coins tracked on coinmarketcap.com and 13,258 tracked on
coingecko.com.

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 DATONOMY METHODOLOGY | NOVEMBER 2022

used in datonomy are chosen to reflect general usage and

established industry norms.

• Hierarchical: Each terminal segment of the classification tree is

independent and distinct from other terminal segments. An asset
cannot be assigned to more than one sub-sector. Assets that support
multiple use-cases are assigned to the segment that best represents
either the dominant usage patterns or a segment that is
characterized as platforms for a variety of use cases.

• Iterative: As the digital asset ecosystem industry evolves, datonomy

will evolve with it, adapting its methodology of asset evaluation and
modifying the classification structure and specificity as needed.

Datonomy is a framework for classification with a specific scope, an intended use,

and limitations.
What datonomy is intended to be licensed for:
• To provide a consistent, principled method for defining segments of
the digital asset ecosystem.
• To provide transparency into how the digital asset ecosystem evolves
over time.
• To be a foundational data set for creating other derived data,
analyses, and inputs for other products.
What datonomy is not intended for:
• Datonomy is not a commentary on, or an endorsement of, the
legitimacy of any assets or any of their related risks.
• Datonomy does not take a stance on any narrative debates,
judgments of value, or quality of specific assets and thus aims to
avoid categories that imply any such connotations, such as “store of
value” or “medium of exchange”.
• Datonomy does not recommend any investment or strategy and is
not intended to be, nor can it be used as any form of investment
advice under any circumstance whatsoever.
• Datonomy does not classify assets by their regulatory status or
standing.

1.2 DATONOMY STRUCTURE OVERVIEW

To provide the appropriate level of depth and precision required to support the
analytical needs of digital asset market participants, datonomy is presently designed
with three levels of classifications that include 4 Classes, 14 Sectors, and 41 Sub-
Sectors.

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 DATONOMY METHODOLOGY | NOVEMBER 2022

Datonomy classifications can be presented in either text or numeric formats. The

complete datonomy classification for each digital asset is a 6-digit code with a text
description. The hierarchical design of the 6-digit coding system allows for easy
transition between datonomy tiers.
Definitions of datonomy Classes, Sectors and Sub-Sectors are provided in Section 6.
• 10 Digital Currencies
1010 Value Transfer Coins
▪ 101010 Value Transfer Coins
1020 Specialized Coins
▪ 102010 Meme Coins
▪ 102020 Privacy Coins
▪ 102030 Remittance Coins

• 20 Blockchain Infrastructure
2010 Smart Contract Platforms
▪ 201010 Smart Contract Platforms
2020 Blockchain Utilities
▪ 202010 Network Scaling
▪ 202020 Cross-Chain Interoperability
▪ 202030 Blockchain Networks
2030 Application Utilities
▪ 203010 Oracles
▪ 203020 Digital Identity
▪ 203030 Governance Tools
▪ 203040 Software Development

• 30 Digital Asset Applications

3010 Decentralized Finance
▪ 301010 Decentralized Exchanges
▪ 301020 Derivatives Trading
▪ 301030 Decentralized Lending
▪ 301040 Stablecoin Issuers
▪ 301050 Prediction Markets
▪ 301060 Asset Management
▪ 301070 Crowdfunding
▪ 301080 Insurance
3020 Intermediated Finance
▪ 302010 Intermediated Lending
▪ 302020 Payments Platforms
▪ 302030 Private Exchanges
3030 Business Services
▪ 303010 Professional Services
▪ 303020 Enterprise Solutions

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3040 Information Technology

▪ 304010 Data Services
▪ 304020 Compute & Private Storage
▪ 304030 Wallets & Messaging
▪ 304040 Internet of Things
3050 Metaverse
▪ 305010 Virtual Worlds
▪ 305020 Gaming
▪ 305030 NFT Ecosystems
3060 Media Services
▪ 306010 Advertising
▪ 306020 Content & Streaming

• 40 On-Chain Derivatives
4010 Stablecoins
▪ 401010 Fiat-Backed Stablecoins
▪ 401020 Crypto-Backed Stablecoins
▪ 401030 Algorithmic Stablecoins
4020 Tokenized Assets
▪ 402010 Asset-Backed Tokens
▪ 402020 Synthetic Tokens
4030 Claim Tokens
▪ 403010 Liquidity Pool Tokens
▪ 403020 Staked Tokens

2 ASSET ELIGIBILTY FOR DATONOMY CLASSIFICATION

Datonomy aims to cover a set of digital assets that are broadly representative of the
overall industry and make up much of all market activity. Assets are selected for
datonomy eligibility using a combination of quantitative criteria and qualitative
assessments in accordance with this methodology.
As the industry evolves, the methodology may be modified as set forth herein,
including with respect to the asset screening criteria and the coverage universe.

2.1 DIGITAL ASSET ACCESSIBILITY

Generally, each included asset must be widely available to investors globally. Assets
must have been traded at least once in the past 30 days on at least 25% of eligible
digital asset exchanges identified using data provided by Coin Metrics in the
Exchange Coverage Universe (see section 2.2 for details) before being eligible for
datonomy classification. For already classified assets to remain eligible for
classification, they must be traded at least once in the past 30 days on at least 10%
of eligible exchanges (minimum of 2). Assets that fall below this accessibility
threshold will be reviewed for potential removal from datonomy as per section 3.2.

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2.2 DIGITAL ASSET EXCHANGE COVERAGE UNIVERSE

For a digital asset exchange (the exchange) to be considered eligible, it must
successfully demonstrate alignment with the exchange-specific features from the
Market Selection Framework and the Trusted Volume Framework published by Coin
Metrics2, which include the following:
• Technology: An assessment of whether the technology infrastructure
of the exchange provides sufficient availability and reliability for input
data collection. Evaluates whether the exchange offers a feed for
data collection. Evaluates the performance of the feed in terms of
reliability.

• Regulatory and Compliance3: An assessment of selected factors

relating to compliance and risk for each exchange. These factors
include whether the exchange has publicly disclosed trading policies,
uses market surveillance technology, obtains regulatory licenses, has
fiat and digital asset insurance, requires customers to verify their
identity before opening an account as part of its Know Your Client
(KYC) and Anti-Money Laundering (AML) processes, and whether the
exchange has functioning fiat and digital asset withdrawals
processed within a normal timeframe.

• Business Model: An assessment of the exchange with respect to its

business model, including its fee structure and asset listing
standards.

• Data Availability: An assessment of the available data offered by the

exchange for a given digital asset market, including the amount of
historical data available for a market and the quoted currency of the
market.

• Trusted Volume: A framework for measuring the reporting quality of

an exchange is broken down into three broad categories: volume

2MSCI utilizes Coin Metrics data as one of the inputs for datonomy administration. MSCI will utilize a Coin
Metrics data feed to help it determine exchange eligibility. The Coin Metrics Market Selection Framework and
Trusted Volume Framework can be accessed through their website at the following URLs:

− https://docs.coinmetrics.io/market-data/methodologies/market-selection-framework

− https://coinmetrics.io/introducing-coin-metrics-trusted-volume-framework/
3
While the datonomy includes the specified criteria relating to Regulatory and Compliance using data provided
by Coin Metrics, the datonomy, MSCI, Goldman Sachs and Coin Metrics do not undertake to confirm or assess
the accuracy of the data with respect to any eligible exchange or whether any eligible exchange complies with
applicable laws and regulations.

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correlation, web traffic analytics and qualitative features that help

demonstrate an exchange’s transparency, fair market structure, and
arm’s length economic transactions.
As an input data provider, Coin Metrics assesses the determination of digital asset
exchange eligibility using the above criteria and serves as a data source for
datonomy administration.

3 GUIDELINES FOR DATONOMY CLASSIFICATION

Digital asset classifications are guided by the following structural considerations.
• Classifications are based on the primary use of that asset and its parent
protocol, as defined by the protocol creators and what is widely observed in
the market.
• Should a protocol’s intent and documentation differ materially from market
perceptions and observed usage patterns, the latter two will take precedence
in the asset classification process.
• Individual assets will only be classified within a single sub-sector where they
are reasonably expected to compete, achieve similar goals, or perform
similar services and operations.
This is fundamentally different from classifying based on the technical architecture
of how a protocol is designed or what rights a particular asset provides to its holders
(e.g., governance voting). Assets classified within a sub-sector may exist on
blockchains with different design choices, such as “Proof of Stake” vs. “Proof of
Work”. Some may leverage a ‘parent’ or ‘Layer 1’ blockchain, while others are hosted
on their own blockchain. Each asset aims to facilitate a primary use-case, and the
technical implementations are a means of facilitating that use-case.

3.1 DATONOMY DATA SOURCES

Analysis of digital assets for classification within datonomy requires the use of
information and data that are considered relevant to the classification process and
are aggregated from the following sources.
• Primary Documentation: This includes whitepapers of individual
projects, project websites and any additional supporting collateral
therein, as well as public commentary from project founders and
managers.

• Secondary Market Research: This includes third-party research from

various sources, such as digital asset exchanges, market data
providers and independent research providers.

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• Industry Expert Commentary: When evaluating a digital asset, MSCI

may on an ad-hoc basis seek information from third-party industry
experts.

3.2 DATONOMY CLASSIFICATION REVIEW

As datonomy administrator, MSCI is solely responsible for the ongoing management
and execution of the classification process for datonomy, including the review and
approval of the initial classifications and any future updates to classifications.4
Classification of New Digital Assets: The digital asset universe is monitored on an
ongoing basis for newly eligible assets, as per section 2.1. As new assets become
eligible for datonomy classification, MSCI will conduct an independent review to
determine the appropriate classification. New asset classification proposals will be
documented and presented to an MSCI committee of senior researchers for review
and approval. These reviews will be conducted on an as-needed basis with no set
frequency for review and implementation.
Reclassification of Existing Digital Assets: MSCI will monitor the digital asset
universe for changes in asset use-cases that could warrant a change in datonomy
classification. In situations where it is deemed likely that a digital asset use-case has
evolved to a point where its place in datonomy is in question, MSCI will undergo a
review process similar to that performed for new asset classification to determine
the appropriate classification. Any prospective changes in classification will be
presented to an MSCI committee of senior researchers for review and approval.
These changes will occur on an as-needed basis with no set frequency for review
and implementation.
Declassification of Digital Assets: Assets that are no longer deemed to meet
accessibility requirements outlined in section 2.1 will be reviewed for potential
removal from datonomy on an as-needed basis with no set frequency for review and
implementation.

3.3 DATONOMY CLASSIFICATION DECISIONS

Asset classification decisions are the sole responsibility of MSCI and will be made
available to market participants at the same time through datonomy distribution
channels. MSCI welcomes feedback and input from market participants regarding
datonomy classification decisions. MSCI may review classifications upon request
from market participants with no guarantee that such reviews will result in changes
to specific asset classifications. MSCI may also solicit views from market
participants on classification topics prior to making changes and conduct
consultations regarding asset classifications when it deems warranted.

4Before the launch of datonomy, asset classifications were researched with assignments proposed by Coin
Metrics and Goldman Sachs in collaboration with and as later adopted by MSCI as of the launch.

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4 DATONOMY STRUCTURE REVIEW

MSCI is committed to ensuring that the datonomy structure remains relevant and up
to date. This is accomplished through, at minimum, an annual review of the structure
by MSCI, with input from an Advisory Board (as described in Section 5) and
commentary from market participants. This review may include a detailed internal
analysis to develop proposals for potential structural changes with public request for
comment through consultations with market participants as a means of obtaining
feedback on proposed structural changes. MSCI may decide to perform ad-hoc
reviews of the datonomy structure on an as-needed basis.

5 DATONOMY GOVERNANCE BY MSCI

Datonomy methodology and structure fall under the overall, exclusive supervision of
MSCI as datonomy administrator. MSCI in its role as datonomy administrator may
receive input from a datonomy Advisory Board (“Advisory Board”) as well as others
market participants to help keep datonomy current and relevant. The Advisory
Board’s membership and activities will be governed separately from this datonomy
methodology, and it may be co-chaired by Goldman Sachs, Coin Metrics and MSCI.
The Advisory Board may provide industry perspectives and expert input that MSCI
may use in its sole discretion as one source of information in connection with
administering datonomy. Like other market participants, the Advisory Board and its
members may review and provide feedback on topics relevant to datonomy such as
the asset coverage universe, asset classifications, consultations, and datonomy
structure evolution.

5.1 CONSULTATION PROCESS

Consultations with market participants are an effective channel to share and receive
feedback on MSCI proposals. Structured dialogue enables market participants to
share their views on the current datonomy as well as on potential innovations and
changes. In addition, public consultations give market participants lead time to fully
evaluate potential methodological changes and their implications.
MSCI commences a public consultation when there is an internally approved
proposal to make a material change to datonomy. A proposed change may be based
on internal review or on feedback from market participants.
Once the decision to open a consultation has been made, MSCI will craft an
announcement and widely distribute it through multiple channels. Consultation
materials will be made available on MSCI’s website along with the date by which
interested parties must provide feedback.
MSCI welcomes feedback from the Advisory Board as well as any market
participants or other interested parties that are considered most appropriate for a
given consultation topic.

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After considering the feedback from the consultation process, the decision to take
action with respect to datonomy remains the responsibility of MSCI solely. The final
decision by MSCI, including the rationale, is communicated publicly to market
participants, including the Advisory Board members and market participants
generally, at the same time through multiple channels. If the final decision is to
change the datonomy structure or its methodology, MSCI will announce the changes
and timeframe of the implementation.
In case of methodological changes that are deemed immaterial or otherwise
appropriate to announce quickly, MSCI may make such changes without launching a
public consultation. In such cases, after methodology changes are approved by MSCI
internally, they are announced by MSCI to market participants at the same time.

6 DATONOMY DEFINITIONS
6.1 HIERARCHY LEVEL DEFINITION
• Class: The Class level describes an asset’s purpose at a fundamental
level. This includes orchestrating peer-to-peer transfer of value,
supporting decentralized infrastructure and protocols, facilitating
distinct products and services, or providing on-chain derivatives of
another asset.
• Sector: The Sector level separates assets based on high level
specializations or focus areas of the assets within the Class level.
• Sub-Sector: The Sub-Sector level delineates the assets within the
Sector level by their specific product, service or function they provide
to their users.

6.2 CLASS, SECTOR & SUB-SECTOR DEFINITIONS

• [10] Digital Currencies: Assets native to blockchains that primarily
enable the transfer of value on a blockchain. These assets are
typically the native cryptocurrency of a blockchain that does not
support decentralized applications.
[1010] Value Transfer Coins: Digital currencies native to
blockchains whose primary purpose is to facilitate the
transfer of value for general on-chain payments.
▪ [101010] Value Transfer Coins: Digital currencies
native to blockchains whose primary purpose is to
facilitate the transfer of value for general on-chain
payments. Value Transfer Coins are typically used as
an incentive mechanism for participants to validate
and secure its blockchain.

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[1020] Specialized Coins: Digital currencies that facilitate the

transfer of value on the blockchain primarily for a specialized
purpose or with specific enhancements. They typically cater
to users with a specific use case or interest in addition to
simple value transfer, such as, but not exclusive to, privacy,
cross border remittance transactions, and online
communities.
▪ [102010] Meme Coins: Digital currencies that are
based on or derive value from memes and the social
community that supports and engages with it on the
internet. The value of these coins is driven by its
community members and is tied to the real, though
intangible value of its social network.
▪ [102020] Privacy Coins: Digital currencies that offer
privacy enhancements to facilitate anonymous
transfer of value for on-chain payments. Protocols of
this type enable public blockchains to operate with
anonymous features, allowing users to self-select
when their on-chain data will be publicly available, or
encrypted as an unidentifiable and untraceable
activity.
▪ [102030] Remittance Coins: Digital currencies that
prioritize velocity for the transfer of value
domestically and across borders for payments.
Remittance coins can be used as a medium to send
money domestically or overseas to avoid traditional
financial bottlenecks, such as high transaction costs,
accessibility, and slow finality.
• [20] Blockchain Infrastructure: Tokens that are associated with
foundational protocols and utilities that support the development,
interoperability, scale, and growth of blockchain technologies.
Blockchain infrastructure tokens are native to their host protocol or
application and support its operations – whether that entails the
operations of a proprietary layer 1 blockchain, inter-chain
functionality, or multi-chain application use cases.
[2010] Smart Contract Platforms: Tokens native to
blockchain protocols that facilitate the execution of smart
contracts and power an ecosystem of decentralized
applications across a diverse set of use cases. Tokens in this
industry are colloquially associated with “Layer 1 platforms”.
▪ [201010] Smart Contract Platforms: Tokens native to
blockchain protocols that facilitate the execution of
smart contracts and power an ecosystem of
decentralized applications across a diverse set of use

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cases. These Smart Contract Platform tokens are not

only technically designed to support general purpose
decentralized apps, but also currently support and run
a diverse set of services and products from those
decentralized apps. Tokens of smart contract
platforms that primarily support a narrow type of
application or service are excluded.
[2020] Blockchain Utilities: Tokens issued by protocols that
aim to improve a blockchain’s core infrastructure for
increased scale, interoperability across blockchains, and ease
of running blockchain infrastructure These are typically
services that help existing blockchain protocols become
more scalable, cost efficient, or interoperable, or act as a
foundation to run blockchain infrastructure more easily.
▪ [202010] Network Scaling: Tokens intended to
enhance a blockchain’s features, such as throughput,
consistency, and cost incurred to operate, by
extending upon a blockchain’s architecture and
conducting transactions outside of the settlement
layer, or “Layer 1”, of that blockchain. Often these
tokens and the protocols or technology on which they
run are labeled as “Layer 2 platforms”.
▪ [202020] Cross-Chain Interoperability: Tokens native
to protocols that allow blockchains and their
applications and assets to interact and engage with
other distinct blockchains, often via “cross-chain
bridges”. These tokens are native to protocols that
serve to increase connectivity amongst chains rather
than by innovating on top of chains.
▪ [202030] Blockchain Networks: Tokens that are
associated with the operations of a platform that
functions as the foundation for users to build and run
their own blockchains. Blockchain Networks also
enable the ability for each user’s blockchain or set of
blockchains to run, integrate, and interact with one
another in a low friction manner. Tokens in this
industry group are colloquially associated with “Layer
0 platforms”.
[2030] Application Utilities: Tokens native to on-chain
products and services that support developers in building
their digital asset applications. These token’s products and
services generally service a wide variety of applications and
essentially allow for faster development, easier integration,

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and better connectivity to participants and data on and off-

chain.
▪ [203010] Oracles: Tokens native to applications that
connect data from the outside world (‘off-chain’) into
blockchain applications (‘on-chain’). Oracle networks
enable blockchain applications to perform complex
operations that cannot be done natively on-chain,
such as facilitating money markets using off-chain
market data.
▪ [203020] Digital Identity: Tokens native to
applications that designate, assign, and validate the
uniqueness of a name, human or domain on the
blockchain. Whereas on-chain data is public and
anonymous, digital identity tokens can be used to
create value via association with an off-chain entity or
used to create clarity for an on-chain party.
▪ [203030] Governance Tools: Tokens native to
services that provide tools for the formation and / or
improvement of the operations of Decentralized
Autonomous Organizations (DAO’s) or other
decentralized groups. These tools cater to open-
source protocols which promote their own adoption
for seamless building and integration between parties
acting toward a common goal.
▪ [203040] Software Development: Tokens native to
applications that support smart contract
development, launching of applications on a
blockchain, and building a network of connectivity
with relevant participants. They typically provide
toolkits of software development kits (SDKs) with
standardized processes to leverage and streamline
development.
• [30] Digital Asset Applications: Tokens native to the operations of an
on-chain application that was developed to provide a specific service
or product to blockchain users. These applications can run on top of
general purpose blockchain infrastructure, like smart contract
platforms, or run on their own application-specific blockchain.
[3010] Decentralized Finance: Tokens native to decentralized
applications that provide the user with economic interest,
trading power, or an on-chain alternative to traditional
financial services and products. These tokens often serve as
the mechanism to engage with its financial application as
well as the reward that is used to collateralize or compensate
the user for the financial activity that the protocol offers.

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 DATONOMY METHODOLOGY | NOVEMBER 2022

▪ [301010] Decentralized Exchanges: Tokens native to

the operations of an automated market maker for
token spot markets, enabling peer to peer transfer of
assets through liquidity pools. These tokens are
utilized as a tool to maintain liquidity and balance
while conducting two-way flow through the exchange.
▪ [301020] Derivatives Trading: Tokens native to the
operations of an application that facilitates the
creation and transfer of derivatives and synthetic
assets. The token will enable access and liquidity to a
derivative/synthetic product that is uniquely offered
and distributed by the protocol which the token helps
to operate. These tokens are not the derivatives
themselves, but rather facilitate activity in derivatives
trading.
▪ [301030] Decentralized Lending: Tokens native to the
operations of an automated market maker that
primarily provides lending and borrowing services,
enabling peer to peer loans via liquidity pools.
Decentralized lending protocols allow users to borrow
or lend against other tokens, while the other side of
the transaction is held and collateralized in the native
decentralized lending token. Rewards from using the
lending protocol are also denominated in this token.
▪ [301040] Stablecoin Issuers: Tokens native to
applications that facilitate the secondary issuance of
their own stablecoin. Stablecoin Issuer tokens
operate and govern protocols which are balanced
against, or interoperable with, a stablecoin issued by
the same protocol. Stablecoin issuer tokens should
not be confused with stablecoin tokens themselves –
though there may be some overlapping activities
between the two.
▪ [301050] Prediction Markets: Tokens native to
decentralized marketplaces that are used for
speculative trading based on the outcome of future
events. Prediction market protocols allow users to
place bets on certain events or data. These tokens are
used as participation mechanisms as well as reward
currency.
▪ [301060] Asset Management: Tokens native to
applications that provide management services for
investment portfolios often to optimize yields or
manage risk. This industry group includes

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 DATONOMY METHODOLOGY | NOVEMBER 2022

applications colloquially referred to as staking

platforms, yield farms or yield aggregators.
▪ [301070] Crowdfunding: Tokens native to
applications that reduce frictions for peer-to-peer
investment to raise funding for a given project or
group. These tokens function as governance tools
where capital is allocated to various initiatives as
proposed by decentralized communities.
▪ [301080] Insurance: Tokens native to applications
that cover against smart contract failure, exchange
hacks, or other blockchain-related risks from
transaction or holding digital assets. Insurance
applications aim to share risk across its users
together without the need for an insurance company
and rather have its service entirely run by its
members.
[3020] Intermediated Finance: Custodial financial activity that
is facilitated by a corporate entity. Often incentivizes
economic activities on the corporate entity or intermediary’s
platform in the form of discounts on trading fees or higher
interest rates on accounts.
▪ [302010] Intermediated Lending: Tokens native to
applications that facilitate lending via an intermediate
platform, typically requiring custody of the assets.
While these intermediate lending platforms are mostly
centralized, they offer decentralized methods that
weave seamlessly into the centralized or
intermediated offering. Intermediated Lending tokens
can be used as leverage or a staking when conducting
business on the platform.
▪ [302020] Payment Platforms: Tokens native to
applications that facilitate payments via an
intermediate platform or blockchain. Companies
establish decentralized payment platforms to remove
the traditional intermediaries and allow for organized
input-output payment processing, denominated in the
token itself.
▪ [302030] Private Exchanges: Tokens issued and
managed by a private cryptocurrency exchange, often
to incentivize usage of the exchange’s services.
Token holders can participate in governance,
speculate on the adoption and monetize or be
rewarded for their economic activity on the exchange.

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 DATONOMY METHODOLOGY | NOVEMBER 2022

[3030] Business Services: Tokens native to applications or

blockchains that provide products and services for the
development of blockchain-based platforms at the
professional and enterprise-level, whether as a generalized or
domain-specific solution. These token’s applications or
blockchain platforms primarily provide their product or
service via avenues outside of pure software development
tools.
▪ [303010] Professional Services: Tokens native to
specialized or industry specific blockchains or
applications that provide resources – including
human capital – products, and services for
applications and communities to be built. These
professional services typically provide specific tooling
or expertise directly or bring in the right experts for a
niche use case or area.
▪ [303020] Enterprise Solutions: Tokens native to
blockchains or applications that provide development
services for enterprise use cases, typically giving the
option to develop on more private, closed networks.
These enterprise solutions can cater to existing or
established businesses and allow their clients to
incorporate a level of centralization, ownership, or
control in the development and maintenance of their
client’s applications.
[3040] Information Technology: Tokens native to
applications that support the storage, sharing, aggregation,
computation, and other manipulation of on-chain information
for software developers. They also help users streamline how
to interact with data and alternate sources of value on-chain.
▪ [304010] Data Services: Tokens native to applications
that leverage the public nature of blockchain data to
query, aggregate, process, encrypt, monetize, or
broadcast data for various use cases, often including
to power other decentralized applications. The tokens
native to data service protocols are the mechanisms
that nodes use to operate data indexing functionality.
▪ [304020] Compute & Private Storage: Tokens native
to applications that aggregate and leverage on-chain
resources and assets to enable decentralized access
to shared computational or private storage. These
tokens’ applications create connectivity amongst
participants as it relates to the sharing, pooling, and
storage of on-chain data and assets.

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 DATONOMY METHODOLOGY | NOVEMBER 2022

▪ [304030] Wallets & Messaging: Tokens native to

applications that enable users to interact, transact,
and communicate with their own assets on-chain. The
tokens serve to power encrypted communication and
data transfer, ultimately acting as a bridge between
on-chain assets and the internet.
▪ [304040] Internet of Things: Tokens native to
applications that enable interaction with and transfer
of data between physical objects and machines and
the blockchain. These applications connect the
blockchain to a bigger network of connected things
and people, all of which collect and share data about
the way they are used and about the environment
around them.
[3050] Metaverse: Tokens associated with a virtual
ecosystem enabled by blockchains to facilitate the ownership
and transfer of digital property Although nearly any type of
product and service can exist in the metaverse, metaverse
tokens are defined to be native to applications that facilitate
the ownership of a digital property.
▪ [305010] Virtual Worlds: Tokens native to
applications that facilitate the transfer of ownership
of and interaction with digital land. Virtual worlds
serve as the metaverse backdrop, wherein all things
on-chain related to metaverse will live. Virtual worlds
and their tokens thereby provide access and property
rights in the virtual world.
▪ [305020] Gaming: Tokens native to applications for
blockchain-based gaming and their communities.
Decentralized gaming applications will include a
native token to incentivize players with monetary
rewards based on their participation and success in
the game. These tokens can then be used further
within the game to purchase in-game virtual assets,
for example related to avatars or special upgrades.
▪ [305030] NFT Ecosystems: Tokens associated with
applications in which non-fungible tokens (NFTs) can
be created, bought, sold, or transferred. The NFTs can
represent a creative project and are usually deemed
to be rare or unique. These applications can operate
on a decentralized or a centralized basis and facilitate
transactions in a local or digital currency. NFTs are
presently out of classification scope.

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 DATONOMY METHODOLOGY | NOVEMBER 2022

[3060] Media Services: Tokens native to applications for

facilitating the distribution of content and communication
across various mediums. Tokens of this sort often empower
more decentralized ownership of social media or
entertainment content. They are often accredited with giving
data ownership of creators and application users back to the
original owners, eliminating third party data aggregators and
middlemen.
▪ [306010] Advertising: Tokens native to applications
that facilitate the tokenization of impressions for
interacting with advertisements. These tokens
correspond with the web user’s viewership whereby
they are rewarded in the advertising token for the
attention they provide advertisers.
▪ [306020] Content & Streaming: Tokens native to
applications that support the creation and
broadcasting of creative content, such as video,
music, or art, and enable social interactions between
users and communities. The tokens power the
network, allowing creators to communicate and
distribute content autonomously and reward
themselves directly with the native token associated
with the protocol that maintains their data and
content.
• [40] On-Chain Derivatives: Tokens that are based on or have value
linked or derived from a different underlying asset or group of assets.
The underlying asset(s) can exist on-chain or off-chain. Tokens that
are pegged to a particular value or operate under a stabilization
mechanism rather than backed by an underlying asset are included in
this sector.
[4010] Stablecoins: Tokens which are pegged to a specific
sovereign-issued currency. Stablecoins are intended to offer
participants in the digital asset ecosystem access to
blockchain applications and decentralized protocols without
facing exposure to price action in digitally native tokens.
There are several methods which allow for stablecoin
creation – these range from providing real world or digital
assets which back the stablecoin on a one-to-one basis, to
computer-driven mechanics which aim to keep a stablecoin
peg consistent.
▪ [401010] Fiat-Backed Stablecoins: Stablecoins that
are backed by cash and cash-like equivalents, or ‘fiat’.
The value of each token has a tangible backing that

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 DATONOMY METHODOLOGY | NOVEMBER 2022

gives it inherent value in the event of redemption of

the stablecoin back to fiat.
▪ [401020] Crypto-Backed Stablecoins: Stablecoins
that are backed by cryptocurrencies. These tokens are
backed by a vault which stores reserves of
cryptocurrencies whose value in sum equates to the
same fiat value as the issued stablecoin. Maintaining
the peg for these stablecoins requires the issuer to
actively manage the funds available in the vault to
ensure that any price change in the vault’s assets is
paired with the appropriate supply and demand
dynamic to hold the stablecoin value constant.
▪ [401030] Algorithmic Stablecoins: Stablecoins that
maintain their peg using a set of rules determined by
a protocol, often created by a Stablecoin Issuer. The
set of rules is an algorithmic arrangement which
incentivizes the holders of the token to interact with
the stablecoin for monetary gain in order to maintain
the peg. This normally takes place in the form of
arbitraging the token.
[4020] Tokenized Assets: Tokens that represent or provide
exposure to another asset, on-chain or off-chain, and are
pegged to the value of that underlying asset. These tokens
typically help facilitate activity in the underlying asset on a
blockchain that the asset did not exist on before.
▪ [402010] Asset-Backed Tokens: Tokenized assets
that are backed by other assets, such as
cryptocurrencies, securities, or commodities. The
underlying assets backing these tokens are typically
held in a segregated account on or off-chain.
▪ [402020] Synthetic Tokens: Tokens that mimic the
one-to-one value or price of another asset, such as
cryptocurrencies, securities, or commodities. These
tokens provide exposure to a particular asset without
having to hold or own the asset itself.
[4030] Claim Tokens: Tokens that entitle the holder to credit
toward an underlying asset. Claim tokens represent an
underlying asset that was lent or staked to earn interest.
▪ [403010] Liquidity Pool Tokens: Claim tokens that
represent a share of a liquidity pool provisioned by a
protocol that facilitates economic activity. Liquidity
Pool, or “LP”, tokens allow the holder to control their
share of the underlying pool. These tokens can be

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 DATONOMY METHODOLOGY | NOVEMBER 2022

transferred, exchanged, and even staked on other

protocols.
▪ [403020] Staked Tokens: Claim tokens that represent
an asset that is staked on a blockchain or application.
Staking is the act of depositing assets to an
application or blockchain protocol to earn rewards
and better the security of that application or
blockchain protocol.

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 DATONOMY METHODOLOGY | NOVEMBER 2022

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