A new study finds that most crypto protocols generate revenue but fail to disclose important investor information. Critical gaps include agreements with market makers and structured communications with investors.
Key Takeaways
- Novora found that 91% of over 150 crypto protocols generate revenue, but disclosure remains limited.
- <1% disclose deals with market makers, exposing token price and liquidity risks.
- Only 9% have 2025 transparency frameworks in place, highlighting the need for better investor reporting.
The transparency of the Crypto protocol lags despite growing revenue data
Most cryptocurrency protocols generate measurable revenue, but few provide the level of transparency expected in traditional financial markets, new research from Novora shows.
The study, which assessed more than 150 projects across industries including decentralized exchanges, lending platforms and blockchain infrastructure, found that 91% of protocols have trackable revenue. However, only a small portion presents that data in a way that is accessible to investors.
The sharpest divide is in the disclosure of market-making arrangements. Less than 1% of protocols provide information about agreements with market makers, despite their direct influence on token liquidity and price formation. These arrangements often include token loans, incentives or options that can materially affect trading conditions.
Only one protocol in the dataset, Meteora, has made such details public, highlighting what the report describes as a critical blind spot in the industry.
The findings point to a broader problem: while the data is there, the communication is not. Only 3% of protocols maintain a dedicated investor relations hub that consolidates financial and operational information. Most rely on fragmented channels such as blog posts, board forums or social media, making it difficult for investors to form a clear picture.
The report also examined 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 finance projects. No major layer 1 or layer 2 blockchain networks were found using the framework.
The alignment of the token holder remains uneven. About 38% of protocols offer some form of value accrual, such as fee sharing, buybacks or wagering rewards. The majority, 62%, offer governance rights without direct economic benefits, a structure more common among large blockchain networks than trading-oriented platforms.
The sectoral differences are pronounced. Perpetual trading protocols are more likely to share revenue with users, while base layer networks often lag behind in providing financial incentives associated with token ownership.
Despite these shortcomings, the underlying data infrastructure is largely in place. Most protocols are tracked across multiple analytics platforms, including Token Terminal, Dune and Defillama, allowing for detailed financial analysis. The report suggests that the problem is not availability, but presentation.
Connor King, founder of Novora, commented on
As institutional interest in digital assets grows, the lack of standardized disclosure may become a limitation. Investors accustomed to traditional markets often expect clear reporting on revenue, governance and contractual arrangements.
The study argues that improving communications with investors could be a low-cost way for protocols to raise capital. Those who invest in structured reporting and transparency can gain an advantage as the market matures.
For now, the crypto sector presents a paradox: a data-rich environment with limited clarity. Until that gap is closed, many investors will continue to navigate the market with incomplete information.