Koinos is a great blockchain in many aspects, and I want continue adding value to it by creating more tools and dApps. However, as I mentioned many times in the chats, Koinos is still a centralized blockchain. The decentralization is in the hands of the community itself. In this post I want to give some clarity on that.
Right now (June 2023), the 78.1% of block production is in the hands of 5 producers. One of them is Burnkoin (mining pool) and the other 4 are independent producers.
I'm worried for this concentration of power not only because of the censorship and typical 51% attacks, but also because Koinos has a powerful governance system which has the ability to make any type of changes in the system contracts, including changes in the tokenomics.
A change in the tokenomics requires the approval of 60% of block production. And a change in the governance system itself requires 75%, which is the maximum threshold. And both values are covered by just 5 block producers. The good news is that these changes can not be done instantly. There is a period of 2 weeks of votation where the community can react (by burning koin and producing blocks with VHP) if they don't agree with the changes.
How to increase the decentralization?
In this figure we can see that the current block production is using only 15% of the tokens. And there is still a big slice of 55% of tokens that are not yet claimed, distributed in 2300 accounts.
This big group can help to increase the decentralization. For me, the ideal situation would be to see a pie chart where 100 independent block producers have more or less the same influence in the production.
If you are a holder please consider starting a node to produce blocks. If you don't want or don't have the knowledge to do it then consider to join a mining pool. There are many independent mining pools in Fogata that could help to increase the decentralization.
In the following months my plan is to develop a smart contract wallet to support eth signatures. In this sense you will be able to use koinos using ethereum wallets like metamask, and more importantly, you will be able to use hardware wallets because they are compatible with ethereum wallets. My main objective is to have more people claiming and burning tokens to increase the decentralization.
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Didn't one party mine like 80% of the tokens using GPU mining when no one else could?
There was a lot of competition between a few miners, not only 1. And this big competition made it unprofitable for normal users to mine. However, from day 0 the token was listed on Uniswap and everyone had the opportunity to buy there at a good price because many miners sold. In any case, it would be interesting to do an in-depth analysis of this entire process in the future.
I was there during the initial mine and watched the wallets, Pooh got a majority of the tokens by a landslide. Rumors were they had GPU mining, and they were part of the team. When I asked them directly, I got a very evasive answer about it.
Poo team mined until they reached 1 million koin, and after that they stopped. Specifically, they stopped on 2020/10/26. Putting this in perspective, they mined during 13 days, that's all. But we remember them a lot because they were the first ones to monopolize the mining. After this, other big miners came.
I still keep their final message and proof (and they said they didn't use GPU):
Poo bear love Koin Poo bear now stop mining 292Team is 1% 1M Koin No dump - Hold On Dear Koin No GPU: CPU x 40 x 83 MHs Mining: https://imgur.com/a/Ru4doWT Cost: https://imgur.com/a/l5bZ5Ll Now we wait for Koin team Proof Signed: { "address": "0x292d36a9f456996618e5d96200ff804ecb915370", "msg": "Poo bear stop mining now. 1% = mine", "sig": "0xb9a425021771755e4a81709ed492f7245a97dce57a0d022fa954ee7cb75cce863e1c7d64e6311e5d2855a4b457744d97a7e125deae2c7e049279de154a0363711b", "version": "3", "signer": "MEW" }