Token supplies for several DeFi projects aren’t widely distributed consistent with an analysis by the co founder of DeFi Italy and Head of CryptoLab’s Digital Assets Investments Simone Conti.
As per the data compiled from Defi Pulse and Etherscan that means that 90% of tokens for nearly all DeFi projects are held by the top 500 addresses. For 3 of the projects, that figure rises to 99%.
In line with a graphic shared by Conti, Compound is the ‘most concentrated’ of the highest 10 surveyed projects (by total locked value) with 96% of the entire supply being held by a couple of dozen people within the top 50 holders.
The top five addresses for the overwhelming majority of DeFi projects hold over 40% of their respective total supplies. Bancor is solely anomaly, but even there the highest 5 addresses hold 33% of the entire availability. Conti observed that projects born before the recent DeFi boom attended to be more widely distributed than those who were launched later.
Tracking Of Token Distribution Is Tricky
The tracking of token distribution remains a difficult task however, as different analysts produce widely different figures based on the standards of which addresses to incorporate.
Head of DTC Capital Spencer Noon believes that Yearn.Finance [YFI] is one among the foremost well distributed DeFi tokens on Ethereum, with the top five addresses holding less than 10% of the entire supply.
“$YFI: 9.5%. It’s only 2 weeks old but $YFI is already the foremost decentralized #DeFi project ever.”
This is in marked contrast with Conti’s evaluation that YFI’s top five addresses hold almost 60% of the entire supply.
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