Centralisation Risk

As mentioned in the Security Risk section, the technical security risk review encompasses a large portion of the centralisation risk process. This is because the smart contract of an asset can be assessed based on centralisation factors such as whether the contract is multi-sig, whether the contract is upgradeable vs immutable, whether the contract is permissionless, and if there are any built-in functions like minting in the contract.

A more qualitative approach is also used to assess the governance structure of an asset. Block explorers and bubble maps will be used to determine the percentage of the supply the top holders of the token control. In general, the more decentralised an asset is, the better. Governance rules and functionalities of the protocol governing an asset will also be analysed to account for centralisation risk.