3.2. KPI Stack: Definitions and Rationale

3.2.1. KPI design principles

The KPI stack is designed to be:

  • Investor-relevant: tied to risk, liquidity/access, credibility, and sustainable demand/fees.

  • Decision-grade: each KPI supports a practical decision (funding, governance change, partner readiness, risk controls).

  • Comparable: stable definitions across time windows.

  • Hard to game: where gameable, the report explicitly documents how.

  • Segmentable: by time, actor class (validators/builders/users), and activity type.

3.2.2. KPI categories used throughout this report

The report measures Terra Classic across the following KPI families:

  1. Protocol health

  2. Security posture (incl. quantum risk readiness)

  3. Validators & decentralization

  4. Governance execution

  5. Tokenomics & monetary reality

  6. Market structure & liquidity/access

  7. Treasury/financial management & investments

  8. Developer delivery

  9. Adoption & UX

  10. Marketing, distribution & partnerships

  11. Brand/reputation & community integrity

  12. Legal/compliance partner risk (non-legal assessment)

3.2.3. KPI interpretation rules (what KPIs can and cannot prove)

  • KPIs show what happened, not always why.

  • “More activity” is not automatically “better” (spam/churn effects).

  • Therefore, core KPIs are paired with classification (utility vs churn) and context (incidents, upgrades, governance decisions).

3.2.4. Peer set and benchmarking principles

Peer set defined for this report:

  • Cosmos: Terra 2 (Terra), Cosmos Hub, SEI, Injective

  • Outside Cosmos: Solana, BNB Chain, Ethereum

Benchmarking rules:

  • Compare like-with-like where possible (PoS metrics, governance and delivery maturity).

  • Normalize metrics for scale (per day/user/fee unit).

  • If a comparison is not valid, the report will say so explicitly.

3.2.5. KPI-to-chapter mapping

Each KPI family is “owned” by a specific chapter where it is defined and interpreted:

  • Protocol & Network Health → protocol KPIs

  • Validators/Governance → decentralization + governance KPIs

  • Tokenomics & Market Structure → monetary + liquidity KPIs

  • Builders & Adoption → dev + product KPIs

  • Brand/Community & Legal → narrative + partner-risk KPIs