Centralisation Risk

From a technical standpoint, the smart contract of an asset can be assessed based on 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 can be used to assess the governance structure of the asset, and what percentage of the supply the top holders of the token control by using block explorers and bubble maps. The more decentralised an asset is, the better, but risk analysis will also take into account extenuating factors based on each asset that is being assessed.

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