The research agency's report Messaria much talked about him and perhaps even that the famous tweet from Jack Dorsey questioning whether Web 3 was truly “decentralized” draws on this same report.
To give you a quick summary, here is the image that has circulated the most and which includes the key elements of the famous report.
We see the allocations of cryptocurrencies (to which the tokens issued from this blockchain belong). What's interesting is the subtitle of the document that says it all.
“Concentrated insider ownership can permanently harm blockchain’s ability to become a credible and neutral public infrastructure.”
As this image shows us, we have a classification according to four criteria:
- Public Sale: This includes pre-sales, airdrops, and even “lock drops” or any allocations that were open to public participation. (A “lock drop” is an arrangement where loans with a changing interest rate are replaced with an interest rate that doesn’t change. Investors have protections if the interest rate falls below a certain threshold.)
- Community Allocations : Ecosystem funds and airdrops distributed to the community (mainly developers and users).
- Insiders: The entire founding team, the company and the tokens purchased by the Venture Capitalists (VC).
- Foundations & More : Tokens allocated to foundations, community reward pools and other financial incentives for protocol participation.
After this quick definition of the legend, we will rank the most decentralized cryptos to the most centralized.
The ranking of decentralized blockchains with Solana in last place!
- EOS: 10% of the tokens belong to VCs and the rest are mixed with the various other members. We don't have enough information on the distribution of other allocations but overall it is the most decentralized crypto.
- Cardano (ADA) : 17% belong to VCs and 2% to internal foundations linked to Cardano. Everything else is allocated to the public. It is the most decentralized blockchain.
- Ethereum (ETH): 15% belong to VCs and 5% to foundations. Ethereum is clearly the most used and most decentralized project.
- Tezos (tied with ETH) : 20% to funds and the rest belongs to the community.
- Cosmos : 69% of funds are allocated to the public.
- Binance: It may come as a surprise, but half of it belongs to the public. Good news!
- Tron: 40% belongs to the public. Not bad for Tron!
- Avalanches (AVAX) : 39% is allocated to the public (with half for the dev community)
- Internet Computer (ICP token) : 26% belongs to the public.
- BlockStack and Polkadot: 25% belongs to the public.
- Near and Flow arrive in penultimate place
- Left (LEFT) : last place with Celo!
Personally, we are disappointed for Solana which we really like, despite everything.
Conclusion on decentralized cryptos
This document may seem innocuous, but the information it reveals is of the utmost importance. A blockchain that is too centralized or worse, in which the funds are overwhelmingly owned by VCs is not a good thing.
Why?
Decision-making on the one hand then concentrated by VCs and financial distribution will not be as democratic as in a decentralized blockchain such as Ethereum, Cosmos, Tezos and EOS, have allocated more than 70% of their token allocations to their communities.
These are then the very symbols of what a blockchain should be in theory – that is, open source projects with ownership of the tokens belonging to everyone without discrimination.
It’s up to you to make the right choices and support the right projects…
Read other related articles:
- Project Cult DAO ($CULT) : Funding fully decentralized protocols
- A decentralized DEX: Mute.io
Disclaimer : This article is provided for informational purposes only. This is not financial, legal, tax or investment advice. Always do your own research before investing in any crypto.
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