Today we are introducing “Bitquence Token Classification Framework” – a proposal for how consumers and the industry can classify and organize tokens. We also believe this Token Classification Framework (TCF) will play an integral role in providing essential information to Bitquence users when assessing the types of coins and tokens to be added to their decentralized Bitquence Universal Wallets. The TCF will also be an essential component of the overall risk framework Bitquence will use during the on-boarding process for all coins/tokens in determining which assets can be included in our Basket and Liquidity related services.
We developed the TCF in conjunction with the Bitquence Product Council. It is still a work in progress, but we wanted to open the idea up to public feedback.
The TCF organizes tokens into Classes and Categories based on specific criteria. Here’s what the system looks like:
Although we would like to make all coins/tokens available to customers when using our Basket and Liquidity products and services, each coin or token must first clear a thorough risk assessment before it can be included in certain products or services on the Bitquence Platform. This risk assessment is essential to ensure neither Bitquence, or our customers, are exposed to unnecessary risks stemming from fraud, ponzi-schemes or legal and regulatory issues associated with the issuance and operation of non-compliant coins or tokens, whether knowingly or unknowingly by other firms in our industry.
This framework is essential for any Platform offering products and services involving coins and tokens as it is one of the essential tools every firm must deploy to appropriately mitigate risks to our business and those customers utilizing our platforms. This video discussing TCF provides a high level overview of this framework and captures some of our thoughts as to how the framework will operate:
Note that this Classification system is still in draft format, and subject to revision.
Looking forward to hearing thoughts from the community.