Wood Sister Head Research Report: True decentralization is more difficult for new networks

On the first-layer blockchain, the proportion of token supply allocated to insiders - including founding teams, private investors, and privately controlled foundations and ecosystem funds has been increasing. Since 2017, founders have been trying to build new chains to compete with existing rivals, and venture capital has actively invested in base layer protocols. In addition, regulatory concerns have hindered initial coin offerings as an open distribution model. Therefore, new networks cannot claim that they are fully decentralized based on token holders and may be vulnerable to pressure from within. #Web3 #crypto2023 #DeFi