YFI DeFi Token Is Among The Most Distributed Tokens On Ethereum

The YFI DeFi token is among the one token that is most fairly distributed on the Ethereum network as the issue of centralization of coins remains so let’s find out more in the upcoming altcoin news.

Three Arrows Capital’s Kyle Davies said he is extremely worried about the Gini coefficients. This is a metric that is used by international authorities to analyze the extent of wealth inequality in places across the world and in a group of people. Bitcoin is a good example of the potential for great inequality in crypto but we can surely believe that Satoshi Nakamoto had good intentions while creating it. However, he/she technically owns about 5.5 percent of all BTC wealth.

I am very worried about crypto Gini coefficients

— Kyle Davies (@kyled116) August 5, 2020

The same can be said for a lot of other crypto assets especially the ones distributed by initial coin offerings or the ones sold to entities that have a lot of money to invest. With Decentralized Finance becoming more and more popular, the centralized segment of the crypto space came right under the spotlight. According to DTC Capital head Spencer Noon, speaking about the distribution of coins, yearn’s finance YFI DeFi token is the most fairly distributed project ever on the Ethereum network. The investor cited data that shows what percent of the supply the top five addresses for every ETH-based crypto holds.

Noon noted that he found this data after a mistake was made as the “top COMP addresses are its distribution contract which owns 40% of ownership.” As it can be seen from the data, YFI is one of the decentralized cryptocurrencies in regards to the distribution of coins:

 “It’s only 2 weeks old but $YFI is already the most decentralized #DeFi project ever. The result? Easily the most engaged early-stage #crypto community I’ve ever seen.”

In the two weeks that the coin existed, more than 30 proposals have been voted on that deciding the future of the project. YFI’s success which is outlined in its sky-high price and active governance process has spawned a lot of copycats. There are YFFI, Asuka, and YFII along with hundreds of coins that attempted to emulate the success of yEarn. Kelvin Koh who is a partner of the Spartan Group said these clones share many flaws when compared to the original project including the community, founder, investors, and differentiation.

As Koh explained in an extensive Twitter thread, YFI has a decentralized distribution model, a strong community, and a long list of prominent investors. These four factors are working together which allows YFI to succeed while still being an early coin.