LP-901: Impact Measurement Methodology

Abstract

This LP defines the methodology for measuring and reporting social impact across the Lux Network ecosystem. It establishes metrics definitions, data collection protocols, calculation methods, and reporting standards aligned with IRIS+ and IMP frameworks.

Motivation

Good intentions are not enough—impact must be measured rigorously. Without standardized methodology:

1. Inconsistent metrics prevent comparison across time and projects
2. Data quality issues undermine confidence in reported outcomes
3. Impact washing becomes possible when definitions are ambiguous
4. Institutional stakeholders cannot integrate impact data into their frameworks

This LP establishes the measurement infrastructure that makes LP-900's Theory of Change operationally rigorous. By aligning with IRIS+ and IMP, we ensure compatibility with the global impact investing ecosystem.

Measurement Framework

Guiding Principles

1. Materiality: Focus on metrics that matter to stakeholders
2. Comparability: Use standardized definitions
3. Reliability: Ensure data quality and consistency
4. Accessibility: Make metrics understandable
5. Actionability: Enable decision-making

Framework Alignment

Framework	Application
IRIS+	Metric definitions and taxonomy
IMP	Five Dimensions structure
GRI	Stakeholder materiality
SDG Indicators	Global development alignment

Core Impact Metrics

Financial Inclusion Metrics

FI-01: Users in Underserved Regions

Definition: Number of unique addresses actively transacting from countries classified as emerging markets or developing economies (IMF classification).

Attribute	Value
IRIS+ Code	PI7098 (modified)
Unit	Count
Frequency	Monthly
Data Source	On-chain + geolocation

Calculation:

FI-01 = Count(unique_addresses WHERE country IN emerging_markets AND tx_count >= 1 in period)

Methodology Notes:

• Country determined by validator exit node or declared wallet country
• Emerging markets per IMF World Economic Outlook classification
• Active = at least 1 transaction in reporting period
• Privacy-preserving: aggregated counts only

FI-02: Average Transaction Cost

Definition: Mean transaction fee in USD for standard value transfer transactions.

Attribute	Value
IRIS+ Code	Custom
Unit	USD
Frequency	Daily (reported monthly)
Data Source	On-chain

Calculation:

FI-02 = Sum(tx_fees_USD) / Count(standard_transfers)

FI-03: Languages Supported

Definition: Number of languages with official documentation and user interface translations.

Attribute	Value
IRIS+ Code	OI1638 (modified)
Unit	Count
Frequency	Quarterly
Data Source	Documentation inventory

Criteria for inclusion:

• Full documentation translation (>80% of core docs)
• UI localization available
• Community support channel in language

Economic Empowerment Metrics

EE-01: Validator Rewards Distributed

Definition: Total value in USD of staking rewards distributed to validators.

Attribute	Value
IRIS+ Code	PI4060 (modified)
Unit	USD
Frequency	Monthly
Data Source	On-chain

Calculation:

EE-01 = Sum(validator_rewards * price_USD)

EE-02: Grant Recipients

Definition: Cumulative number of unique entities receiving ecosystem grants.

Attribute	Value
IRIS+ Code	OI8869 (modified)
Unit	Count
Frequency	Quarterly
Data Source	Grant database

EE-03: Ecosystem Jobs Estimate

Definition: Estimated full-time equivalent positions supported by Lux ecosystem projects.

Attribute	Value
IRIS+ Code	PI3687
Unit	FTE
Frequency	Annual
Data Source	Ecosystem survey

Methodology:

• Annual survey of funded projects
• Self-reported FTE counts
• Extrapolation for non-respondents based on funding level
• Reported with confidence interval

Governance Participation Metrics

GP-01: Governance Participants

Definition: Unique addresses participating in on-chain governance or LP process.

Attribute	Value
IRIS+ Code	Custom
Unit	Count
Frequency	Quarterly
Data Source	On-chain + GitHub

Includes:

• On-chain votes cast
• LP proposals submitted
• LP comments/reviews
• Forum discussion participation (verified accounts)

GP-02: LP Contributions

Definition: Number of LP proposals, comments, and reviews submitted.

Attribute	Value
IRIS+ Code	Custom
Unit	Count
Frequency	Quarterly
Data Source	GitHub repository

GP-03: Regional Representation

Definition: Number of countries with at least one active governance participant.

Attribute	Value
IRIS+ Code	OI3176 (modified)
Unit	Count
Frequency	Annual
Data Source	Survey + registration data

Developer Ecosystem Metrics

DE-01: Monthly Active Developers

Definition: Developers with meaningful code contributions or activity in the ecosystem.

Attribute	Value
IRIS+ Code	Custom
Unit	Count
Frequency	Monthly
Data Source	GitHub, npm, contract deployments

Includes:

• Code commits to Lux repositories
• Package downloads/usage
• Smart contract deployments
• SDK/API usage (authenticated)

DE-02: Developer Countries

Definition: Number of countries with at least one active developer.

Attribute	Value
IRIS+ Code	OI3176 (modified)
Unit	Count
Frequency	Quarterly
Data Source	Developer profiles + activity

DE-03: Open-Source Contributions

Definition: Cumulative count of merged pull requests to Lux repositories.

Attribute	Value
IRIS+ Code	Custom
Unit	Count
Frequency	Monthly
Data Source	GitHub API

Data Collection Protocols

On-Chain Data

Collection Method: Automated indexing

Protocol	Details
Frequency	Real-time indexing, hourly aggregation
Storage	Time-series database
Retention	Permanent (aggregated)
Validation	Cross-chain verification

Survey Data

Collection Method: Annual stakeholder surveys

Protocol	Details
Population	Validators, grantees, developers
Sampling	Census attempt + random sample
Response target	>50% for validators, >30% for others
Administration	Online survey, translated

Survey Schedule:

• Q1: Annual validator survey
• Q2: Developer ecosystem survey
• Q3: Grantee impact survey
• Q4: User research sample

Third-Party Data

Source	Data	Frequency
IMF	Country classifications	Annual
World Bank	Economic indicators	Annual
Electric Coin Co.	Privacy-preserving analytics	As available

Data Quality Framework

Quality Dimensions

Dimension	Definition	Standard
Accuracy	Correct representation	<5% error rate
Completeness	All required data present	>90% complete
Timeliness	Available when needed	Within SLA
Consistency	Same methodology over time	Documented changes

Quality Indicators

Indicator	Level	Description
🟢 High	Primary data, verified	>80% primary, cross-validated
🟡 Medium	Mixed sources	50-80% primary
🔴 Low	Estimates	<50% primary or modeled

Data Governance

Roles:

• Data Owner: Impact Lead
• Data Steward: Sustainability Team
• Data Custodian: Engineering Team

Processes:

• Monthly data quality reviews
• Quarterly methodology reviews
• Annual external audit of key metrics

Calculation Methodologies

Aggregation Rules

Metric Type	Aggregation	Notes
Counts	Sum or unique count	Specify deduplication
Rates	Weighted average	Weight by activity
Financial	Sum in USD	Using daily price

Normalization

Currency: All financial metrics normalized to USD using:

• Daily closing price (CoinGecko)
• Period average for aggregates

Time: All metrics reported in UTC with clear period boundaries.

Estimation Methods

For incomplete data:

1. Response extrapolation: Scale survey responses by response rate
2. Industry proxy: Use comparable industry data with adjustment factor
3. Model estimation: Statistical model with disclosed assumptions

All estimates flagged with methodology and uncertainty range.

Reporting Standards

Disclosure Requirements

Each metric report includes:

Element	Requirement
Value	Current period value
Comparison	Prior period + year-over-year
Target	Progress against stated goal
Quality	Data quality indicator
Methodology	Link to full methodology
Limitations	Known gaps or issues

Report Formats

Report	Frequency	Detail Level
Dashboard	Real-time	Summary
Monthly Brief	Monthly	Key metrics
Quarterly Report	Quarterly	Full detail
Annual Report	Annual	Comprehensive + narrative

Audit Trail

All impact metrics maintain:

• Raw data archives
• Calculation scripts (version controlled)
• Change log for methodology updates
• Audit access for third-party reviewers

Continuous Improvement

Review Cycle

Activity	Frequency
Data quality check	Monthly
Methodology review	Quarterly
Stakeholder feedback	Quarterly
External assessment	Biennial
Framework update	Annual

Change Management

For methodology changes:

1. Document rationale
2. Assess comparability impact
3. Calculate restated historical data (if material)
4. Communicate to stakeholders
5. Update documentation

Learning Integration

• Document measurement challenges and solutions
• Share learnings with impact measurement community
• Contribute to standards development (IRIS+, IMP)

Related LPs

• LP-800: ESG Principles and Commitments
• LP-900: Impact Framework & Theory of Change
• LP-910: Stakeholder Engagement
• LP-920: Community Development & Grants
• LP-930: Financial Inclusion Metrics
• LP-860: Evidence Locker Index

Changelog

Version	Date	Changes
1.0	2025-12-17	Initial draft

Copyright

Copyright and related rights waived via CC0.