Clear DefinitionsUtility Score
1 min read
Pronunciation
[yoo-til-i-tee skawr]
Analogy
Like a restaurant rating based on the number of diners, reviews, and variety of dishes served.
Definition
A quantifiable metric evaluating a blockchain project or token’s utility based on factors like user activity, transaction volume, and integration breadth.
Key Points Intro
Utility scores assess real-world usage and network health.
Key Points
Usage metrics: daily active addresses and transaction counts
Composite index: aggregates multiple normalized indicators
Benchmarking: compares projects on a common scale
Real-time updates: reflects ongoing network changes
Example
An analytics platform calculates a utility score for tokens by combining metrics such as 7-day unique wallets, on-chain volume, and smart contract interactions.
Technical Deep Dive
Score = w1·(DAA/MaxDAA) + w2·(Volume/MaxVol) + …, where weights (w1, w2) reflect strategic importance. Data ingestion pipelines collect raw metrics via RPC and subgraphs, normalize by historical maxima, and compute scores on a schedule.
Security Warning
Reliance on single data sources can skew scores; multi-source validation is recommended.
Caveat
Scores lag real-time events and depend on accurate data collection.
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