Balance Score

The "Balance Score" is a metric designed to assess how evenly a token is distributed among its holders, with more weight given to tokens held in smaller amounts. This score helps evaluate whether the token has a broad, decentralized base of holders or if it is concentrated in a few large accounts, which can impact the token’s suitability as collateral.

Balance Score= 100/(A*H+B*H+C*H+D*H+E*H+F*H/6)*

Where

A is Number of People That Hold Less Than 10k

B is Number of People that Hold More than 10k and Less Than 50k

C is Number of People that Hold More than 50k and Less Than 100k

D is Number of People that Hold More Than 100k and Less than 250k

E is Number of People that Hold for More Than 250k and Less than 500k

F Number of People that Hold More Than 500k

H Is a Multiplier (Giving A Higher Weight to The Amount of People That Hold Less)

100 is Applied to Bring into Decimal

A higher Balance Score suggests a more decentralized distribution of tokens, with a larger number of people holding smaller amounts. This is often a positive sign for stability, as it reduces the risk of large holders moving the market.

A lower Balance Score indicates a concentration of tokens in a few large accounts, which can lead to instability or manipulation, making the token less ideal for use as collateral in a stablecoin.