Choice of Chaince is the module which selects which blockchain projects can be listed on the Chaince platform, and provides detailed project information and project progress tracking. The audit team led by Chaince's CEO will audit the projects based on rigorous criteria and strive to ensure that the listed projects possess the necessary conditions for a successful blockchain application with commercial value and potential for growth. A project’s passing of the audit means it has won the unanimous approval of the audit team. The Chaince platform solemnly pledges not to charge any fees to list projects, and the quality of the project will be the only basis for listing decisions. Choice of Chaince will take the responsibility of reducing information asymmetry in the token market and enable users to enjoy the huge industry dividends brought by the wave of decentralized application development in the next phase while preventing users from suffering huge losses due to fraudulent projects.
All projects included in the Choice of Chaince audit process through a preliminary review will be posted on the website of the platform for reference as well as initial review comments on the projects. The listing time and details of each approved project will be announced and then the project will proceed into the public notice period.
The Choice of Chaince team has established an audit framework consisting of commercial value, realizability and system token value. Each project listed on the Chaince platform must meet three preconditions in this framework: the necessity of blockchain technology, blockchain infrastructure support, and the source of value for the tokens. On this basis, the members of the team will give independent judgments based on the audit framework and achieve a team consensus whether to list the project or not.
Audit Framework - Commercial Value
The Necessity of Blockchain Technology
By establishing a distributed and collaborative relationship, blockchain technology can disintermediate and improve the manufacturing relationships in multiple industries and can deliver unique performance for decentralized applications. Blockchain technology can provide great commercial value for industries relying on intermediaries to convey information and value. However, the competitiveness of the decentralized application market is not sufficient to support operating costs and project valuations in the industries where collaborative relationships do not help to reduce transaction costs and improve economic efficiency. The necessity of using blockchain technology is a prerequisite for analyzing the business logic and value of the project.
Business Competitiveness and Market Potential
The core basis for assessing the value of a blockchain project is how great a market demand the project satisfies. Therefore, for a developing project, it is very necessary to analyze the commercial competitiveness of the finished product through its strategic positioning and development route and determine the market potential of the project through research on the market.
Relative Competitive Advantage
Even at the leading edge of technological applications, every field with optimistic market prospects is bound to face a gradual influx of competitors. Projects that stand out from competing products are more likely to be favored by the market. Analysis of the relative competitive advantage of the project over the overall market competition helps to determine the commercial value of the project more specifically from a market perspective.
Audit Framework - Realizability
Blockchain Infrastructure Support
The project team's blockchain technology research and development capabilities are the key elements of the project. In an environment where blockchain technology is not yet mature, excellent blockchain technicians are extremely scarce. Projects lacking core technical members have difficulties quickly improving the technical team and even attracting large-scale funding. In an environment of rapid market changes and increasingly fierce competition, project development delays are likely to make the project team miss market opportunities.
An experienced team can deeply understand the pain points and needs of the market in their own field and more accurately seek out the application value of blockchain technology. The industry resources possessed by the team also support large-scale commercial cooperation with the project.
Audit Framework - System Token Value
The Source of Token Value
As a value transmission medium in the blockchain project system, tokens have the function of economic incentive and demonstration of consensus. Appropriately giving tokens the value of applications in the project system can greatly stimulate system efficiency and the level of user activity. In fact, a blockchain project can not succeed without a properly designed token system. Projects that issue tokens solely for fundraising can not enjoy the market competitiveness provided by a scientific and complete token system.
Reasonability of the Market Value of Tokens or the Project Valuation
As the project tokens can be circulated in the global trading market, and the transaction threshold is low, huge economic bubbles are very easily produced. Assessing the reasonability of the market value of tokens in circulation or the valuation of projects in advance can avoid the risks posed by project speculation for trading platform users.
Rationality of Token Allocation Mechanism
An unfair token distribution scheme for ordinary market participants can greatly reduce the users’ enthusiasm for participation. An unfair token distribution scheme for a project team will not effectively encourage team members to contribute. In addition, the excessive distribution of tokens will be unfavorable to the sustainable development of the project. Since token distribution mechanisms are typically designed by the project team, the trading platform needs to know the current state of token distribution and focus on assessing whether the token distribution mechanism respects the ordinary market participants.