This criterion represents the expression of a cryptocurrency's governance concerns and efforts, with governance denoting behavioral guidelines, principles, and/or standards.
How secure is the network?
The longer the cryptocurrency technology has existed without any known security incidents, the better the rating will be. It also takes into account whether there are experts who have doubts about the security of the technology. For example, the PoW algorithm is not secure for all smaller cryptocurrencies, as demonstrated by the successful attack on 51% of Bitcoin SV in August 2021.
Are there conflicts of interest?
The more conflicts of interest appear in a cryptocurrency, the more likely it is to be given a D score. For example, if there is only one organization or individual that can control the cryptocurrency, it is classified as a risk. However, if there is a large, broad-based community or non-profit organization behind the cryptocurrency, it will be assigned an A score.
How is the distribution of the miners?
If there is one sole miner, it is a centralized cryptocurrency. The risk is bundled accordingly and therefore assessed with a D score. The more diversified a cryptocurrency is with mining pools, the better the score.