In the last issue, we talked about: governance mechanisms, which determine whether rules can be changed and who has the final say. However, whether one can participate in governance often depends on whether you have a "ticket," which essentially is your Token.
Therefore, the fifth key dimension to determine whether a chain is decentralized is: Token distribution. Tokens are the "power certificates" of this chain. They determine whether you have the right to participate, the right to speak, and even whether you can receive economic incentives.
But here comes the question: Who are the Tokens actually distributed to?
Are they highly concentrated among project parties and large holders? Are they distributed to real users in a reasonable manner? These factors will directly affect the power structure of this chain.
How to judge? I suggest looking at it from three aspects:
1. Check the initial allocation ratio
For example, look at its white paper or the Token economic model on its official website to see if it publicly states the early distribution method, such as how much is allocated to the team, how much to VC, and how much to community airdrops.
If at a glance, 80% is allocated to the project party or investors, then it basically loses the foundation of decentralization.
2. Check on-chain holding distribution
You can use on-chain analysis tools, such as blockchain explorers or DeBank, to check the number of holding addresses, the proportion of holdings among the top ten addresses, and whether there is a significant "whale concentration."
If the top few addresses hold most of the Tokens, then your few votes in governance will be meaningless.
3. Look at whether the distribution mechanism is fair
How are Tokens actually distributed? Is it open and transparent? Are ordinary users able to obtain them through airdrops, mining, community activities, etc.? Is there a long-term and continuous release to the community?
Some projects claim to be "community-first," but in practice, most Tokens are allocated to early teams and investors, leaving the community with only a small portion; even if private placements have lock-up periods, it does not change the fact of excessive power concentration.
Ultimately, Token distribution is the "distribution of power" in the real world. It determines whether the voices on this chain can be heard by the majority and whether it can prevent monopolization by a minority.
If the rules are open, the nodes are free, the code is transparent, and governance is participatory, but ultimately ownership and incentives are held by a very few people, then it is also difficult to call it truly decentralized.
Thus, we have covered the five dimensions to judge whether a chain is decentralized: node thresholds, consensus mechanisms, open-source code, governance mechanisms, and Token distribution.
In the next issue, we will summarize—how to quickly assess the degree of decentralization of a chain using these five dimensions in practical operations.
Welcome to join the community
Welcome to join the community WeChat: BQ221858
Welcome to follow Weibo: @QuarkMing202
Welcome to follow Twitter: @xian202766693