SDAS-100: Digital Asset Classification
A framework for categorizing digital assets by their economic function, rights structure, and Shariah-relevant characteristics.
This standard establishes a common taxonomy for digital assets, enabling consistent evaluation across the industry. The classification framework considers economic function, rights structure, and Shariah-relevant characteristics.
Scope
SDAS-100 applies to all digital assets deployed on public blockchains, including but not limited to:
- Fungible tokens (ERC-20 and equivalent)
- Non-fungible tokens (ERC-721 and equivalent)
- Liquidity pool tokens
- Yield-bearing positions
- Governance tokens
- Wrapped and synthetic assets
Classification dimensions
Economic function
Each digital asset is classified according to its primary economic purpose:
| Category | Description | Examples |
|---|---|---|
| Payment | Medium of exchange, store of value | BTC, ETH, stablecoins |
| Utility | Access to network services or features | Filecoin, Chainlink (LINK) |
| Governance | Voting rights on protocol parameters | UNI, AAVE, COMP |
| Revenue | Claim on protocol revenue or cash flows | xSUSHI, stETH |
| Collateral | Pledged as security for obligations | cTokens, aTokens |
| Hybrid | Multiple economic functions combined | veToken models |
Rights structure
The rights attached to a digital asset determine its legal and Shariah characterization:
- Ownership rights — claim on underlying assets or reserves
- Access rights — permission to use network services
- Governance rights — participation in decision-making
- Revenue rights — entitlement to protocol income
- Transfer rights — ability to alienate or encumber the asset
Shariah-relevant characteristics
Assets are evaluated against core Islamic finance principles:
- Asset backing — whether the token represents a claim on tangible assets or real economic activity
- Riba exposure — whether the token generates or pays interest
- Gharar level — degree of uncertainty in the asset’s terms or payoff
- Maysir risk — whether the asset resembles a wager or speculative instrument
- Permissible activity — whether the underlying protocol engages in halal commerce
Classification process
- Identification — determine the token’s technical standard and deployment details
- Function mapping — classify the token according to economic function categories
- Rights analysis — enumerate the rights attached to the token
- Shariah screening — evaluate against Shariah-relevant characteristics
- Final classification — assign a composite classification with confidence level
Output format
The classification produces a structured record:
Token: [Name] ([Symbol])
Chain: [Network]
Address: [Contract address]
Function: [Primary category]
Rights: [List of attached rights]
Shariah status: [Approved / Conditional / Under review]
Confidence: [High / Medium / Low]
Implementation notes
- The classification is per deployment, not per token name
- Forks and deployments on multiple chains are classified separately
- Upgradable contracts may require re-classification after upgrades
- Cross-chain bridges affect classification based on the wrapped representation
Status
This standard is under development. The draft will be released for public consultation once the classification dimensions and process are finalized.
For questions or to participate in the consultation, contact the Institute.