Thread by @RyanWatkins_

Token distribution is critical in determining the distribution of power in blockchains.

Concentrated insider ownership may permanently impair projects’ ability to become credibly neutral public infrastructure.

Oligarchy is the system we’re suppose to be disrupting.

1/

Blockchains promote a fundamentally new economic system.

Users opt-in to these systems, which makes it likely that the most trustworthy blockchains will gain the most adoption.

Trust attracts capital.

messari.io/article/power-…

Blockchains with concentrated insider ownership may be able to grow out of their initial distribution.

But we also may find their eventual shortfalls were predestined from launch.

h/t @cburniske
placeholder.vc/blog/2021/4/1/…

This may especially true for blockchains that began as Proof of Stake.

Once a staker has acquired their coins and staked it in a PoS system, they have a proportional right to all future issuance of a network.

messari.io/article/power-…

Remember most PoS systems not only offer stakers new issuance, but also network fees and voting power.

Projects that start off as PoS allow those initially allocated tokens the ability to permanently lock in their ownership stake in the network.

This has important consequences for power and wealth distribution into perpetuity.

Imagine you were creating a new economic system from scratch?

How would you design it?

messari.io/article/power-…