Secret Network Decentralization Ecosystem Update — January 2021 Secure Secrets’ Report
The launch of the Secret Network bridge rewards and soon to be Secret AMM has brought a roar of activity to the Secret Network. The network has become more decentralized since October in a tangible way. Total number of addresses delegating increased to 2530, nearly a 43% increased in total delegators from December! Another interesting trend is for the first time since the creation of the network there has been a decrease in total delegated SCRT by 4.62% — implying there has been a large increase in smaller delegators staking while simultaneously large SCRT holders may have sold off portions of their position with the recent price increase.
The good news is that the Secret Network ecosystem has seen excellent growth in use and delegators since December 2020. The bad news is that December to January saw the second consecutive 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 (in this report, only 49). Linked is the publicly accessible spreadsheet of all calculations used in the below quantitative investigation using a snapshot of January 30th, 2020.
An important quantitative value examined each month is the number of validators that are needed to reach a successful vote of > 50%. With the current setup, the top 6/34 active validators collectively own 51% of delegation on the Secret Network. This is a fairly significant trend that needs to continue to be watched carefully. Perhaps most concerning is the increase in centralization by nodes within the top 20 vs outside of the top 20. The top 20 nodes own nearly 99.58% of the network. Earlier in November, this number was closer to 80% — this reversal of progress negatively impacts governance and network security.
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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