Deep Tide TechFlow News, on December 4, a new report from the Cambridge Centre for Alternative Finance found that the decentralized autonomous organizations behind DeFi protocols exhibit a level of power concentration comparable to the most unequal countries in the world, with governance often dominated by a small number of large participants.
Christopher Jack, the project leader of the Cambridge DeFi Navigator, and his team used the Gini coefficient—a widely used indicator for assessing the level of income or wealth inequality among a population—to evaluate the concentration of power within DAOs. On this scale, a score of 0 indicates perfect equality, while a score of 1 represents complete inequality.
The analysis found that the Gini coefficients of the 10 largest DAOs range from 0.97 to 0.99. In contrast, the Gini coefficient of South Africa, the country with the highest income inequality in the world, is 0.63.