TLDR: Tokenholders refers to a number of unique accounts holding DAO's token and have a balance greater than 0.
In both TradFi and DeFi, holders own a share or a token:
  • Traditional Finance (TradFi): number of shareholders owning at least one share
  • Decentralized Finance (DeFi): number of tokenholders that have a balance greater than 0
Since tokens are just smart contracts and different chains have particular standards for composing them (e.g. ERC20 on top of Ethereum or SPL Tokens on top of Solana), there's no limitations in terms of owning "full shares", you can in essense send "fractional shares" to other wallets or smart contracts.
This is why we have built a method of tracking all on-chain token transfers events and then applying the following logic for each token that we track on the website:
  1. 1.
    Fetch all token transfer events for a particular token, (e.g. AAVE, UNI, MKR) with information to the sender, receiver and the transfer amount.
  2. 2.
    Track all addresses that have received a particular token.
  3. 3.
    Calculate historically the daily balances for each address above from its token inbounds and outbounds.
  4. 4.
    Historically count each address that has a balance over 0 towards tokenholders.