Due-Diligence (D-D)

Objective and Approach

The goals of due diligence at OruxAI are threefold: a) selecting high-quality projects, b) excluding unethical or illegitimate projects, and c) ensuring tokenomics are solid, sustainable, fair, and non-predatory.

OruxAI employs a comprehensive process to ensure every project aligns with these standards. Looking ahead, the roadmap includes a transition toward community-led due diligence—beginning with internal processes and gradually expanding to community voting. While this evolution will take time, it reflects OruxAI’s commitment to transparency and collective responsibility.

What Does Due Diligence Consider?

Below are the main considerations of our due diligence process:

• Go-To-Market (GTM) Strategy: We assess whether projects have a clear and thoughtful marketing and user acquisition plan. A strong GTM strategy should go far beyond surface-level tactics like KOLs or Twitter Spaces, demonstrating depth, scalability, and long-term vision.

• Market Research and USPs: We evaluate the project’s market positioning, competitor landscape, unique selling propositions (USPs), strengths and weaknesses, potential risks, and overall narrative positioning within the ecosystem.

• Business Model and Tokenomics: We examine the soundness of the business model and token design, ensuring the token has real utility and purpose. This includes analyzing emissions schedules, vesting terms, liquidity allocations, and sustainability. Tokenomics should foster long-term stability, not short-term speculation.

• Minimum Viable Product (MVP): Verification that an MVP exists and demonstrates the project’s ability to execute on its vision.

• Strategic Partnerships: We consider the applicant’s backing from ecosystem projects, institutional supporters, foundations, accelerators, and grant programs. Strong partnerships indicate credibility and growth potential.

• Roadmap: We review milestones, goal-setting practices, and scalability ambitions to ensure the roadmap is both realistic and strategically aligned with long-term success.

• Legal Structure and Focus: We scrutinize the project’s legal entity setup, compliance processes, and the presence of a legal opinion letter to ensure regulatory alignment and structural soundness.

• Launch Valuation and Float Analysis: We assess launch economics by analyzing valuation, comparing multiples from prior rounds, and carefully mapping the token float to market supply needs. The float—tokens available for trading post-launch—must strike the right balance to support sustainable growth.

Stages of Due Diligence:

In the initial vetting process, projects will undergo multiple stages of internal due diligence conducted by the OruxAI core team before being approved to launch their token through OruxAI. Public research, reports, and detailed insights will then be shared so the community can review and analyze specific metrics and project details.

In the second stage, OruxAI will transition to a hybrid model. Vetting will begin internally, followed by a community governance stage, where members vote on whether a project should be whitelisted for launch.

Community Due Diligence:

In the future, OruxAI aims to transition toward a fully community-based vetting model. While this shift presents challenges, it is currently under proposal, with active exploration of the most effective strategies to ensure both quality and inclusivity.

One proposed approach involves dividing the launch platform into two distinct sections: Flagship and Frontier, each designed to support different project sizes and due diligence requirements.

• Flagship: Reserved for a select number of larger launches, subject to rigorous internal and community-backed vetting procedures.

• Frontier: Designed to accommodate a greater volume of smaller projects, where vetting would be more community-driven. Even so, Frontier would still enforce minimum standards and safeguards to prevent fraud and maintain project quality.