Many DeFi projects are still highly centralized, NGK DeFi Baccarat to breaks the deadlock
According to industry data reports, we analyze the token governance and distribution proposals of major DeFi protocols in the market. Although researchers said that the DeFi protocol attempts to control decentralization during the liquidity mining phase, many projects, especially those heavily invested by venture capital, remain highly centralized. However, industry experts say that the recently listed NGK DeFi project Baccarat does maintain a high degree of decentralization.
Baccarat is NGK’s first DeFi application launched through its own public chain. The newly launched NGK DeFi project reduces transaction latency and transaction fuel costs and will create more trading pairs. Users can freely choose their favorite currencies to participate in NGK decentralized finance. Defi will be promoted as an important part of the NGK blockchain.
In addition, after analyzing the Compound, MakerDAO, Curve, Uniswap and other projects, the researchers found that all these projects have a tendency towards token distribution, which is very beneficial to top holders. Analysts said that Maker has been around for the longest time and its governance seems to be the most mature of all projects. Community members can conduct preliminary discussions and analysis on the MakerDAO forum, which is open to everyone, no matter how many MKR a person has. However, the actual voting process seems to be mainly controlled by the top holders on the chain, which is determined by the fact that the 20 most important addresses account for 24% of the total supply. This distribution is fairly fair compared to other analyzed items such as comp.
In Comp, only 2.3% of the addresses have the power of delegation, that is, one out of fifty people can vote on proposals, and the main holders are team members and venture capitalists. Such existence aggregates exchange addresses and only a small part of the community participates in governance. The degree of centralization is extremely large and the total supply also tends to be in the top 20 most important addresses.
First of all, it is well known that initial investment plays a very large role in centralized governance. Like comp, venture capital often owns a large number of initial tokens, leading other players to gain governance. The Baccarat project does not have this problem. It does not have large holdings of venture capital, and it always maintains the concept of decentralization to break the balance.
In addition, users treating governance tokens as revenue rather than voting tools will lead to centralization of power. In fact, the Baccarat project mainly replaces governance incentives with financial incentives. After all, governance incentives are far less attractive than financial monetary rewards. It is estimated that 60,000 new DeFi dedicated tokens-BGV issued on the NGK.IO blockchain will appear on the market. The number of BGV tokens issued on the NGK DeFi Baccarat will only be 10,000 airdrops, and will not participate in market trading in the initial stage. It will lead to excessive centralization. Now, the Baccarat project has begun to enter the airdrop stage, and there are many users participating in NGK DeFi Baccarat liquidity mining, which will also promote the continuous increase of the value of BGV tokens.
As many DeFi projects are still highly centralized today, the emergence of the NGK DeFi Baccarat project will break the current deadlock and reshape decentralized finance!