UNIT's Selection Criteria

Eligibility requirements for entering UNIT

Let $S_1$ be the total current supply of the Rank 1 currency (currently Bitcoin), and let $\phi$ be the golden ratio $\frac{1+\sqrt{5}}{2}$. Then the coins creating UNIT must satisfy the following conditions:

1. Valuation: The 30D average daily market capitalization must be greater than $\frac{S_1}{\phi^{12}}\approx\frac{S_1}{322}$.

2. Fundamental Metrics: - Volume of Trade: The currency trades widely with at least a year of public trading. - Fees Accrued: The currency or underlying project brings profits to miners, validators, and other verifying participants.

3. Issuance: The consensus rules must define the currency supply.

4. Availability: As a weak rule, 50% of the supply must be available for trading.

Exclusions in Token Selection

UNIT’s selection criteria focus on including pure project coins that provide real, decentralized value. To maintain this focus, we exclude certain types of tokens for the following reasons:

• Derivative Tokens (e.g., synthetic assets or pegged tokens): These tokens don’t represent new value, but rather mirror or are linked to other assets. Including them would lead to double counting and distort the index.

• Wrapped Assets (e.g., wBTC, renBTC): Wrapped tokens rely on centralized custodians to lock up the original asset, introducing centralization risks and undermining the decentralized principles UNIT upholds.

• Stablecoins (e.g., USDT, USDC, DAI): These tokens are pegged to fiat currencies and don’t contribute to the innovation or growth of decentralized ecosystems. Their value is tied to traditional finance, not blockchain progress.