Protocol Scorecard Template

ALL 0-9 $A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Governance Layer • Validators • Protocol Control

evaluation framework for DeFi, DAO, and emission-based systems

Protocol Scorecard Template is a standardized evaluation framework designed to assess the health, sustainability, and user alignment of decentralized protocols. It organizes key metrics across loyalty design, exit friction, emission timing, governance, and resilience into a scorable format — enabling investors, builders, and analysts to compare protocols systematically. Rather than relying on surface metrics like TVL or APY alone, the scorecard examines the structural depth of retention mechanics and long-term viability.

Use Case: An investor evaluating two competing yield protocols uses the Protocol Scorecard Template to compare their loyalty mechanics, exit friction design, and governance health. Protocol A scores 4/5 on loyalty design but 2/5 on exit friction, while Protocol B scores 3/5 across both — revealing different risk profiles and retention strategies.

Key Concepts:

Protocol Health Metrics — Indicators measuring ecosystem sustainability
Protocol Monitoring Layer — Analytics framework for tracking system integrity
Retention KPIs — Key performance indicators for loyalty
User Lifetime Value (LTV) — Total value generated by a user over time
Reward Multipliers — Yield amplification via duration or loyalty
Compound Loyalty Curves — Multipliers that stack over time
Behavioral Lock-In — Users maintain benefits only through uninterrupted participation
Loyalty-Based Emission Design — Yield systems that reward time and alignment
Protocol Withdrawal Fees — Fees charged on early exits
Cooldown Periods — Waiting periods before withdrawals complete
Reset Penalty Systems — Forfeiture mechanisms for early exit
Exit Friction Models — Structural barriers that slow capital outflow
No-Yield Window — Periods where rewards pause to enforce commitment
Reward Cliff Models — Threshold-based access to accumulated rewards
Time-Based Scaling — Yield that grows with staking duration
Governance Participation — User engagement in protocol decision-making
Cycle-Resilient Incentive Structures — Reward systems that survive market rotations

Summary: The Protocol Scorecard Template transforms subjective protocol evaluation into structured analysis. By scoring specific retention mechanics, emission designs, and governance health, it enables consistent comparison and identifies strengths and weaknesses that surface metrics alone cannot reveal.

Category	Metric / Element	Score (1–5)	Notes / Findings
Loyalty Design	Reward Multipliers
	Compound Loyalty Curves
	Behavioral Lock-In
	Loyalty-Based Emission Design
Exit Friction	Protocol Withdrawal Fees
	Cooldown Periods
	Reset Penalty Systems
	Exit Friction Models (overall)
Emission Timing	No-Yield Window
	Reward Cliff Models
	Time-Based Scaling
Governance & Resilience	Governance Participation
	Protocol Health Metrics
	Cycle-Resilient Incentive Structures

Scoring Notes: 1 = Absent or Weak | 3 = Standard / Balanced | 5 = Advanced or Exceptional

Score	Definition	Example Indicators
1 — Absent/Weak	Mechanism missing or poorly implemented	No multipliers, instant exits, no governance
2 — Below Average	Basic implementation with gaps	Flat rewards, minimal cooldowns, low voting
3 — Standard	Industry-standard implementation	Tiered multipliers, 7-day cooldowns, 10-20% voting
4 — Above Average	Well-designed with strong mechanics	Compound curves, layered friction, active governance
5 — Exceptional	Best-in-class, innovative implementation	Self-optimizing systems, deep retention, aligned incentives

Category Weights (Suggested)
– Loyalty Design: 30%
– Exit Friction: 25%
– Emission Timing: 20%
– Governance & Resilience: 25%

Adjust based on investment thesis

Score Interpretation
– 56-70: Exceptional protocol
– 42-55: Strong fundamentals
– 28-41: Average, room for improvement
– 14-27: Weak, high risk

Max score = 70 (14 metrics × 5)

Weighting Note: For yield-focused strategies, weight Loyalty Design and Emission Timing higher. For governance-focused strategies, weight Governance & Resilience higher.

Loyalty Design Questions
– Do rewards increase with time staked?
– Are there multiple loyalty tiers?
– Do multipliers compound?
– Is there behavioral lock-in?
– How do emissions reward loyalty?

Exit Friction Questions
– Are there withdrawal fees?
– How long are cooldown periods?
– What resets on early exit?
– Is exit friction proportional?
– Are rules transparent?

Emission Timing Questions
– Are there no-yield windows?
– Do reward cliffs exist?
– Does yield scale with time?
– Are emissions front or back-loaded?
– Is timing sustainable?

Governance Questions
– What % of users vote?
– How often are proposals made?
– Is voting power concentrated?
– Are there health dashboards?
– Can the system survive downturns?

Scorecard Red Flags
– Loyalty Design <10/20
– Exit Friction <8/20
– Governance <6/15
– No cooldowns or penalties
– Flat rewards (no scaling)
– <5% governance participation

Scorecard Green Flags
– Loyalty Design >16/20
– Exit Friction >14/20
– Governance >12/15
– Multi-layer retention stack
– Compound multipliers active
– >20% governance participation

Due Diligence Rule: A protocol can have strong metrics in one category but fail in others. The scorecard reveals balance — sustainable protocols score consistently across all categories, not just one.

Step	Action	Resources Needed
1 — Research	Gather protocol documentation, tokenomics, governance data	Docs, Dune, DefiLlama, governance forums
2 — Score	Evaluate each metric using scoring criteria	Scorecard template, scoring guide
3 — Document	Record findings and evidence in Notes column	Specific data points, sources
4 — Calculate	Sum scores, apply weights if desired	Category and total scores
5 — Compare	Evaluate against other protocols or benchmarks	Multiple completed scorecards

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