A new framework for token market transparency
The post A new framework for token market transparency appeared on BitcoinEthereumNews.com.
Today, the crypto market operates without a single, standardized disclosure framework. Because of this, the market is left without key information about token supply and vesting schedules, insider incentives, and basic financial data in a fast-moving environment. This information gap fuels mistrust and, ultimately, results in the misallocation of investor capital. In an effort to close that gap, Blockworks is proud to release the Token Transparency Framework. Blockworks led this effort with our partners Felipe Montealegre of Theia, Louis Thomazeau of L1D, and Cosmo Jiang of Pantera. This framework provides token projects with the ability to communicate a basic set of information to the market. Designed as a one-time filing, the Token Transparency Framework focuses on 18 criteria, including: Supply schedules Market maker and exchange listing agreements Related party transactions Revenue streams The relationships between equity and token Foundation token allocations Offchain entity structures Financial disclosures More available information means the industry can accelerate toward optimized best practices. Beyond the token issuers themselves, key players in the market directly benefit from this effort: Professional investors access streamlined due diligence processes. Market makers gain a simplified method to evaluate counterparty risk. Centralized exchanges can accelerate listing velocity via structured data and disclosure. Retail participants receive otherwise obfuscated information. The Token Transparency Framework represents an opportunity to improve capital allocation in the industry by helping projects signal credibility, allow investors to better underwrite risk with standardized disclosure of information, and prevent bad actors from profiting off ambiguity. Blockworks views a grassroots disclosure framework as complementary to SEC Commissioner Hester Pierce’s Safe Harbor 2.0 and SEC Chair Paul Atkins’ views on DeFi. Effective self-regulation better positions the industry for future success. To this end, the Blockworks team met with the SEC on June 13 to discuss the framework and solicit feedback. The Initial…
Filed under: News - @ June 18, 2025 1:21 pm