Secret Network Annual Decentralization Report— December 2020 — Secure Secrets’ Report
Beginning in August of 2020 Secure Secrets began tracking the decentralization of the Secret Network. We believe this is an important step for bringing healthy awareness surrounding decentralization. As we all know, decentralization is an important attribute that is key to security, governance, and our ethos as an ecosystem.
The good news is that the Secret Network ecosystem has seen excellent progress since August 2020. The bad news is that November to December saw the first increase in centralization of the network since June of 2020.
This report will always be transparent and objective with its quantitative metrics; at Secure Secrets we believe an open and honest dialogue is always key.
We will now begin a quantitative analysis of the Secret Network and the distribution of governance control within the protocol. This is done on a monthly basis on the 30th day of each month using a snapshot of https://puzzle.report/ (courtesy of Secret Nodes) using the top 50 active validators. Linked is the publicly accessible spreadsheet of all calculations used in the below quantitative investigation using a snapshot of December 30th, 2020.
Due to the final swaps, the DTR dropped 14% — this will encourage staking as the ROI for delegators and validators has increased as a result (this was due to the influx of total supply). Total SCRT increased by 42.72% from November, a drastic increase due to final swaps from Enigma MPC and other entities — a large portion of this additional SCRT is out of circulation and dedicated to an ecosystem fund. Total active nodes is over 50, which is cause for celebration. Total Delegated SCRT saw a 4.84% increase from November to December.
Positive new from an annual perspective: the network decentralized by nearly 20% in both the top 5 and top 10 % of network category, and by nearly 10% in the top 20 category. All encouraging signs from a network that is relatively young. News that isn’t great: it would appear delegators took a decisive step away from delegating to smaller validators in December. Staking to smaller validators and spreading out a stake as a delegator is a narrative that needs to continue to be encouraged for the sake of the decentralization of the network. It is also worthy of noting that the Binance swap is complete and the bridge from ENG to SCRT will be closed within the next 48 hours — as such there will be less drastic decentralization swings to track as the network supply is largely “locked-in” at this point outside of inflation and delegators moving their stake around.
These numbers will continue to be updated every month, tracking the progression towards decentralization or centralization on a month to month basis. It is our job as members of the Secret Network to continue to quantitatively track the change of distribution of delegation, and to generate discussion as time progresses.
Wondering how these quantitative values effect staking? Check out the tutorial below!
If you would like to contact Secure Secrets, please reach out to Carter Woetzel or Mohammed Patla on Telegram.
Main Secret Network github page: https://github.com/enigmampc/SecretNetwork
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