YFI is one of the most fairly distributed DeFi tokens on Ethereum: data

Published on by Cryptoslate | Published on

A big issue in the cryptocurrency community is the centralization of coins.

Bitcoin is a good example of the potential for great inequality in cryptocurrency: although we can believe that Satoshi Nakamoto has good intentions, he technically owns an approximated 5.5 percent of all wealth in BTC. The same can be said for many other crypto assets, especially those distributed by initial coin offerings or those sold to entities with deep pockets.

YFI is the most decentralized Ethereum DeFi project ever: Spencer Noon.

According to DTC Capital head Spencer Noon, in terms of the distribution of coins, yearn.

Finance is the most fairly distributed decentralized project "Ever" on Ethereum.

The investor, who also doubles as an on-chain analyst, cited data that indicates what percent of the supply the top five addresses for each leading Ethereum-based cryptocurrency holds.

As can be seen from the data, YFI is one of the most decentralized cryptocurrencies in terms of the distribution of its coins.

He may be right: in the two weeks the coin has existed, which has put the governance of the yEarn protocol to YFI holders, over 30 proposals have been voted on that have decided the future of the project.

As Koh pointed out in an extensive Twitter thread on the matter, YFI has a decentralized distribution model, a strong founder that didn't create many coins for himself, a budding community, and long list of prominent investors.

These four factors working in tandem allowed YFI to succeed early on in its lifespan while its copycats suffered from numerous problems, the investor explained.