# Scorecard

The scorecard is designed explicitly for the evaluation of PoS providers. It includes a list of evaluation criteria, their corresponding weighting, and best practices for using the scorecard effectively.

Whether you are a PoS provider looking to improve your practices or a business owner seeking to evaluate potential providers, we hope this scorecard will be a helpful resource. By using a structured and objective approach to evaluation, you can make informed decisions about which provider best fits your needs.

<table><thead><tr><th width="152">Criterion</th><th width="194">Description</th><th width="233">Assessment</th><th>Weight</th></tr></thead><tbody><tr><td><strong>Business Operations</strong><br>General Information</td><td><p><strong>Evaluation of General Provider Information</strong></p><ul><li>Legal entity</li><li>Jurisdiction</li><li>Terms of Service</li><li>Longest-running Validator</li><li>External Investments and Partnerships</li><li>Foundation Delegations</li><li>Public Team</li></ul></td><td><p><strong>Best Practices</strong></p><ul class="contains-task-list"><li><input type="checkbox">Registration of a Legal Entity</li><li><input type="checkbox">Business in a Non-Sanctioned Country</li><li><input type="checkbox">Crypto-specific Terms of Service</li><li><input type="checkbox">Running Business for longer then 6month </li><li><input type="checkbox">Investments or partnerships available</li><li><input type="checkbox">Received foundation delegations</li><li><input type="checkbox">Team publicly viewable</li></ul></td><td><strong>160 Points</strong></td></tr><tr><td><strong>Business Operations</strong><br>Delegator Protection</td><td><p><strong>Aspects of Delegator Protection</strong></p><ul><li>Slashing Protection</li><li>Funds for Delegator Protection</li><li>Business Insurance</li><li>Delegator Transactions</li><li>Funds set aside for the loss of owner keys for nodes or other critical incidents</li></ul></td><td><p><strong>Best Practices</strong></p><ul class="contains-task-list"><li><input type="checkbox">Slashing Protection and Insurance available</li><li><input type="checkbox">Dedicated Funds for Delegator Protection</li><li><input type="checkbox">Business Insurance available</li><li><input type="checkbox">Sending "wrong" delegated funds back</li><li><input type="checkbox">Dedicated funds for loss of owner keys for nodes</li></ul></td><td><strong>72 Points</strong></td></tr><tr><td><strong>Business Operations</strong><br>Resilience to Market Downturns</td><td><p><strong>Withstand Bear Markets Conditions</strong></p><ul><li>Provider Information on sAuM and costs</li><li>Cash reserves</li><li>Audited balance sheet</li><li>Alternative income streams</li><li>Earnings Dashboard</li><li>MEV Participation</li></ul><p></p></td><td><p><strong>Best Practices</strong></p><ul class="contains-task-list"><li><input type="checkbox">Proof of Reserves</li><li><input type="checkbox">Profitability through the Downturn</li><li><input type="checkbox">Audited balance sheet</li><li><input type="checkbox">Having alternative Income Streams</li><li><input type="checkbox">Monitoring the Earnings</li><li><input type="checkbox">Participate in MEV</li></ul></td><td><strong>88 Points</strong></td></tr><tr><td><strong>Reliability</strong><br>On-Chain Metrics</td><td><p><strong>Prove of On-Chain Performance</strong></p><ul><li>Networks</li><li>Validating since</li><li>Commission Rates</li><li>Uptime</li><li>Slashing Events</li><li>Process Improvements</li></ul></td><td><p><strong>Best Practices</strong></p><ul class="contains-task-list"><li><input type="checkbox">Proof of Track Record for Validators</li><li><input type="checkbox">Low Commission Rate Changes</li><li><input type="checkbox">Uptime above 99.5%</li><li><input type="checkbox">No Soft Slashing Events</li><li><input type="checkbox">No Double Signing Events</li><li><input type="checkbox">Process improvements after downtimes and slashing events</li></ul></td><td><strong>188 Points</strong></td></tr><tr><td><strong>Reliability</strong><br>Validator Maintenance</td><td><p><strong>Availability for Maintenance</strong></p><ul><li>On-Call Rotation</li><li>Maintenance Team</li><li>Monitoring Systems</li><li>Events covered by Monitoring</li><li>Upgrading Processes</li><li>Shutdown of Validators</li><li>Communication of shutdowns</li></ul></td><td><p><strong>Best Practices</strong></p><ul class="contains-task-list"><li><input type="checkbox">24h/7d On-Call Rotation available</li><li><input type="checkbox">3+ DEVs to maintain</li><li><input type="checkbox">Various Monitoring Systems with Notifications</li><li><input type="checkbox">Alarms for On-Chain Events</li><li><input type="checkbox">Predefined Processes for Network &#x26; Validator Upgrades</li><li><input type="checkbox">Timely and network-wide notification when validators are turned off</li></ul></td><td><strong>188 Points</strong></td></tr><tr><td><strong>Security Setup</strong><br>Internal Policies</td><td><p><strong>In-House Standards</strong></p><ul><li>Application Vulnerability detection/ prevention</li><li>Periodic testing of Application Vulnerabilities</li><li>Access to Production Systems</li><li>Private Key Policy</li><li>Encryption, SSM, HSM, Horcrux Usage for Private Keys</li></ul></td><td><p><strong>Best Practices</strong></p><ul class="contains-task-list"><li><input type="checkbox">Multiple Systems to mitigate Application Vulnerabilities</li><li><input type="checkbox">Periodic testing established</li><li><input type="checkbox">Strict Access Policies for Employees</li><li><input type="checkbox">Encrypted, SSM, HSM, Horcrux Usage for Private Keys</li></ul></td><td><strong>130 Points</strong></td></tr><tr><td><strong>Security Setup</strong><br>Infrastructure Setup</td><td><p><strong>Node Setup</strong></p><ul><li>Type of Validator Infrastructure</li><li>Cloud VPS usage for mainnet nodes </li><li>Alarm Systems for Infrastructure</li><li>Alarm Events</li><li>Geographically Diversification</li><li>Redundant Infrastructure and Backups</li><li>Bug Bounty Program</li><li>Certifications</li><li>Engineering Experience</li></ul></td><td><p><strong>Best Practices</strong></p><ul class="contains-task-list"><li><input type="checkbox">Colocation Facility or self-maintained Barer Metal Infrastructure</li><li><input type="checkbox">Low Cloud VPS usage for mainnet nodes</li><li><input type="checkbox">Alarm Systems in case of infrastructure failure</li><li><input type="checkbox">Alarm Events monitoring</li><li><input type="checkbox">Geographically diversified Infrastructure</li><li><input type="checkbox">Redundant Infrastructure available</li><li><input type="checkbox">Continuous Back-ups of active Validator Set</li><li><input type="checkbox">Run a Bug Bounty Program</li><li><input type="checkbox">Holding Certifications for your Services</li><li><input type="checkbox">Employees with cloud-specific Certifications </li><li><input type="checkbox">DEVs with Experience in DevOps</li></ul></td><td><strong>174 Points</strong></td></tr><tr><td><strong>Total</strong></td><td>-</td><td>-</td><td><strong>1000 Points</strong></td></tr></tbody></table>