Each project under consideration for the Demo Fund undergoes a rigorous initial assessment and audit by portfolio managers. This includes a detailed review of various project aspects to ascertain alignment with the fund’s strategic objectives.

General Criteria:

Projects considered for inclusion in the ABC Pension Demo Fund portfolio must meet the following refined criteria:

• Team Expertise: The project team must exhibit a high level of expertise, with a proven track record in the web3 domain. This includes assessing the team’s technical skills, experience, and ability to execute the project plan effectively.
• Involved Third-Party Participants: Significant involvement and support from reputable third-party participants, including professional industry players, investors, and an engaged community, are essential. This involvement is indicative of the project’s credibility and potential for success.
• Technological or Product Uniqueness: The project must demonstrate a unique technological innovation or a distinctive product offering within the web3 space. This uniqueness is a critical factor in determining the project’s potential to contribute novel solutions to the market.
• Potential Longevity: The project should exhibit potential for long-term viability and sustainability, supported by its technological merits, product utility, or the ongoing involvement of the team and supporting entities.

Any project that does not meet these criteria will generally be excluded from consideration. However, portfolio managers retain the discretion to make exceptions for projects that display extraordinary potential or distinct value.

Parameters for Evaluation:

The evaluation of potential projects for the portfolio is conducted through a multifaceted lens, combining the revised general criteria with specific market and technical aspects:

1. Team Expertise and Execution Capability: Primary focus on the team’s qualifications, experience in web3 technologies, and their proven ability to deliver on project objectives.
2. Third-Party Support and Market Acceptance: Assessment of support from reputable third-party participants, including industry experts, investors, and user communities, along with market acceptance indicators.
3. Product Innovation and Market Positioning: Evaluation of the project’s technological uniqueness or distinctive product features. This includes market size, competitive landscape analysis, and growth potential.
4. Technology Audit and Development Plans: A thorough technical audit of the current state of the project’s technology, development roadmap, and its scalability prospects.
5. Sustainability and Longevity Potential: Analysis of the project’s potential for long-term sustainability, influenced by the technology’s robustness, product scalability, and ongoing team and supporter involvement.
6. Economic and Financial Health: Examination of the project’s economic model, including funding sources, revenue streams, expense management, and overall financial stability. Detailed analysis of tokenomics, encompassing initial distribution, stakeholder structure, and historical price movements.
7. Comprehensive Risk Assessment: In-depth assessment of the project’s risk profile, including market-wide risks, technological risks, competition risks, and specific risks inherent to the project.

Each project is scored based on these parameters, adjusted for the dynamic coefficient of risk realization for each. A cumulative score determines the shortlist of candidates for the fund’s portfolio.

The final decision on inclusion of an asset in the portfolio is contingent upon its Risk/Return Ratio, which synthesizes the evaluated parameters within the overarching investment strategy of the fund.