A new study reveals that most crypto protocols generate revenue but do not disclose key information for investors. Critical gaps include market maker agreements and structured communication with investors.
Key takeaways
- Novora found that 91% of the 150+ crypto protocols generate revenue, but disclosure remains limited.
- <1% disclose market maker agreements, exposing risks related to token pricing and liquidity.
- Only 9% of them adopt transparency frameworks by 2025, highlighting the need for better reporting for investors.
Crypto Protocol Transparency Lags Despite Growth in Revenue Data
Most cryptocurrency protocols generate measurable revenue, but few offer the level of transparency expected in traditional financial markets, according to a new study from Novora.
The study, which examined more than 150 projects in sectors such as decentralized exchanges, lending platforms and blockchain infrastructure, found that 91% of protocols have traceable revenue. However, only a small fraction present this data in a way that is accessible to investors.
The most notable gap lies in the disclosure of market making agreements. Less than 1% of protocols provide information on agreements with market makers, despite their direct influence on token liquidity and price formation. These deals often involve token loans, incentives or options that can materially affect trading terms.
Only one protocol in the dataset, Meteora, has publicly disclosed such details, highlighting what the report describes as a critical blind spot in the industry.
The results highlight a larger problem: if the data exists, the communication does not exist. Only 3% of protocols maintain a dedicated investor relations center that consolidates financial and operational information. Most rely on fragmented channels such as blog posts, governance forums or social media, making it difficult for investors to get a clear picture.
The report also examines the adoption of the Blockworks Token Transparency Framework, a standardized disclosure model introduced in 2025. Only 9% of protocols have adopted it, with participation concentrated among a small group of decentralized financial projects. No major Layer 1 or Layer 2 blockchain networks use the framework.
The alignment of token holders remains uneven. Around 38% of protocols offer some form of accumulation value, such as fee sharing, buybacks, or staking rewards. The majority, 62%, grant governance rights without direct economic benefits, a structure more common among large blockchain networks than trading-focused platforms.
Sectoral differences are pronounced. Perpetual trading protocols are more likely to share their revenue with users, while core networks tend to lag behind in offering financial incentives related to token ownership.
Despite these gaps, the underlying data infrastructure is largely in place. Most protocols are tracked across multiple analytics platforms including Token Terminal, Dune, and Defillama, enabling detailed financial analysis. The question, the report suggests, is not available but presentation.
Connor King, founder of Novora, commented
As institutional interest in digital assets increases, the lack of standardized disclosure could become a constraint. Investors accustomed to traditional markets often expect clear reporting on revenues, governance and contractual provisions.
The study argues that improving communication with investors can provide a low-cost way for protocols to attract capital. Those who invest in structured reporting and transparency could enjoy an advantage as the market matures.
For now, the crypto industry presents a paradox: a data-rich environment with limited clarity. Until this gap is closed, many investors will continue to navigate the market with incomplete information.