Average Duration Score

The "Average Duration Score" is a metric designed to assess how long, on average, a token is held by its holders. The formula gives a higher score to tokens that are held for shorter periods, indicating more frequent trading or turnover, while lower scores reflect longer holding times, which can indicate stability and a more committed holder base.

Average Duration Score= 100/ (365-A)

Where

A is the Median Holding Time of Token

365 is the amount of days in a Year

100 is applied to put into a decimal

A higher Average Duration Score suggests that the token is held for a shorter duration on average. This indicates more frequent trading or turnover, which could be a sign of volatility or speculative activity.

A lower Average Duration Score indicates that the token is held for longer periods, suggesting a more stable holder base and potentially more confidence in the token, which is generally favorable for collateral stability.