# DYOR: Do your own research

The decentralized vision of the internet, brings forth a plethora of innovative
projects and platforms, from decentralized finance (DeFi) to non-fungible tokens
(NFTs). As with all nascent technologies, while the opportunities are vast, they
come hand-in-hand with risks. This guide seeks to offer you a comprehensive map
to navigate the complex landscape, ensuring you're armed with the tools to
conduct your own research and due diligence effectively.

## Understanding the basics

Before diving into specific projects, it's vital to grasp the fundamental
concepts of onchain.

- **Blockchain**: At its core, a blockchain is a decentralized ledger. This
means that instead of a single entity controlling the data, multiple
participants maintain it. This decentralization ensures data integrity and
security.

- **Smart Contracts**: These are self-executing contracts with the agreement
directly written into code. They automatically enact and verify the terms of a
contract, reducing the need for intermediaries.

- **Decentralized Applications (Dapps)**: Unlike traditional apps, dapps run on
a blockchain, ensuring they're not controlled by a single entity. This has
implications for censorship resistance and openness.

- **Coins vs. Tokens**: While both represent a unit of value, coins are native
to their own blockchain (like Bitcoin), while tokens are built on another
blockchain (like ERC-20 tokens on Ethereum or an L2 like Base).

## Start with the project's documentation

A project's whitepaper or official documentation serves as its blueprint. Here,
you should delve deep into:

- **Purpose**: Beyond the problem the project aims to solve, understand the
_why_ behind it. Is the mission driven by genuine utility or mere market hype?

- **Technology**: How technically sound is the solution? Do they have a unique
proposition, or are they rehashing existing technologies?

- **Roadmap**: Beyond just milestones, a roadmap can give insights into the
project's ambition, scalability, and long-term vision.

- **Use Cases**: A project's real-world application is a testament to its
utility. Assess how practical and sustainable these use cases are and whether
they can achieve mass adoption.

## Analyzing the team and advisors

Behind every successful project is a robust and dedicated team. When evaluating:

- **Background**: A LinkedIn profile can only reveal so much. Dive into
interviews, articles, and past ventures to gauge their expertise and
commitment.

- **Track Record**: Past successes (or failures) can be indicative, but also
look for adaptability and resilience, vital traits in the ever-evolving
onchain landscape.

- **Advisors**: While a notable advisory board can lend credibility, understand
their level of involvement. Are they actively engaged or merely a name on the
website?

## Reviewing the tokenomics

A project's tokenomics can determine its sustainability and economic health.

- **Utility**: Beyond its purpose, how integral is the token to the ecosystem?
Does it incentivize good behavior, or can the project function without it?

- **Distribution**: Centralized token distribution can be a red flag. Ensure
that tokens are fairly distributed, with mechanisms to prevent excessive
accumulation.

- **Inflation and Deflation**: Understanding how tokens are minted, burned, or
staked can give insights into the project's economic model and long-term
viability.

## Checking the code: Audits and open source

Onchain thrives on transparency and trust.

- **Open Source**: An open-source code is open to scrutiny, fostering trust and
collaboration. Platforms like GitHub can provide insights into code quality
and activity.

- **Audits**: While audits from reputed firms are a positive sign, delve into
the findings. Were vulnerabilities addressed? Were there recurrent issues?

- **Updates**: Regular updates can indicate an active development team. However,
constant, unnecessary changes can be a sign of directionlessness.

## Community sentiment and engagement

A project's community can be its strongest asset.

- **Communities**: While platforms like Reddit or Discord can be rife with
speculation, they also offer raw, unfiltered opinions. Look for balanced,
constructive discussions.

- **Social Media**: Beyond just numbers, gauge the quality of interactions on
platforms like Twitter, Discord, or Telegram.

- **Feedback Loop**: An engaged team that actively seeks and acts on feedback is
a sign of a project committed to growth and its community.

## Evaluating market dynamics and competition

Understanding a project's market positioning is crucial.

- **Competitors**: Every project has competitors. What's essential is the
differentiation. What does this project offer that others don't?

- **Market Size**: While niche projects can offer unique solutions, ensure
there's enough market demand to sustain growth.

- **Trends**: Being trendy can offer short-term gains, but for long-term
viability, ensure the project has a sustainable model that isn't merely riding
the hype wave.

# TLDR

Equip yourself with the tools of research and skepticism. Dive deep, question
everything, and always be open to learning.