The Question

Track the consolidation of voting power within the Arbitrum DAO. How many unique wallets have delegated their ARB tokens? How many unique delegates received tokens? Create a dashboard that monitors the total voting power and number of unique delegators for the top 50 delegates. Identify the top 10 delegators (by total ARB) for each delegate in the top 50.

Also examine the on chain activities of wallets that have chosen to delegate their voting power and note any patterns. Based on transaction histories, is it possible to identify which user segments are more likely to delegate tokens?

Methodology

This dahboard aims to investigate the latest airdropped ARBs usage in terms of delegations. the first part , focuses on overall and overtime delegations of ARB , separating the types in terms of Self delegating and To Others, Also, the top 50 delegates had been found and represented. the second part shows the top 10 delegators, and also invedtigates the user behavior , focusing on network activities of delegators and non delegators , as well as their popular interacted sectors and platforms and ETH transfers.

Introduction

What is DPoS? While Bitcoin reaches an agreement via Proof of Work (PoW), there are a few other ways blockchain networks can come to a consensus. Proof of Stake (PoS) is one of the most common consensus mechanisms.

In a PoS system, validators verify block transactions based on how many coins they have staked in the network. Instead of miners solving complex mathematical equations, like in a PoW consensus method, they stake a fixed amount of coins required by the network that allows them to validate transactions.

History of Delegated Proof of Stake (DPoS) Proof of Stake (PoS) was first discussed in July of 2011 during a Bitcointalk forum, with the intent of finding a way to process and verify blocks more efficiently. Thereafter, Daniel Larimer conceived DPoS in 2013 and introduced it in 2014 as a modified version of the standard Proof of Stake (PoS) consensus mechanism. The first iteration of DPoS was deployed on BitShares in 2015.

How Does DPoS Work? Users of the network vote and elect delegates, who validate blocks. Also referred to as ‘witnesses’ or ‘block producers’, only a certain number of these delegates are permitted; and they can change, as others can be voted in instead.

With DPoS, users of the networks can pool tokens into a staking pool and vote for the particular delegate they wish. When staking, users of the network do not need to send their tokens to a particular wallet; instead, there is a staking mechanism or service provider they can operate through.

Delegates are important because they ensure the transactions are accurate; and, if they validate the block correctly, they are then rewarded with the transaction fees, which can be distributed to the individuals who voted them in. The more that a user is able to stake, the larger the allotment they can receive.

A user’s reward from their delegate is related to the portion of the total stake they represent. For example, if a user only makes up 10% of the entire staking pool, they would receive up to 10% of the total reward.

Pros and Cons of DPoS Pros Reputation-Based — Delegates get elected through a democratic process, which allows them to build a reputation of reliability, a key motive for users to vote for them instead of just individuals with the largest investments. Fast — DPoS reaches consensus faster because the network has a cap on how many delegates are required. Typically, there are 20 to 100 delegates, depending on the blockchain, and this limited number of delegates helps the network reach consensus quicker than more traditional PoS systems and PoW networks. Scalable/Minimal Hardware — The DPoS consensus method is more scalable since it doesn’t require hardware for hashing power, unlike PoW. Most DPoS networks can be accessed by simply staking coins. Voting Power — Since users who stake are able to vote in delegates as block producers, this incentivises delegates to make sure they act accordingly. Otherwise, they can be voted out. This helps ensure accountability, as only the most profitable and honest delegates get chosen or retained. Cons Malicious Token Holders — Because there aren’t thousands of delegates, a DPoS system runs the risk of a 51% attack, which is an attack involving at least 51% of delegates acting maliciously towards the network to essentially do what they want. These attacks can be organised more easily in DPoS blockchains, as they generally have a lower amount of delegates. Lower Decentralisation — While not every project using DPoS faces this issue, there are some that do. Some projects have as much as 26% of the total token supply going to venture capitalists (VCs) and insiders. Since DPoS systems typically only have a certain number of delegates, the question of if it truly is decentralised arises. For example, a network having fewer than 30 delegates at a time can be seen as not being truly decentralised. Engagement Is Needed — DPoS requires participants to vote in delegates to make sure the network can run. Because of that, it is necessary for individuals who use the network to remain active and involved; otherwise, the network will fail to run. (https://crypto.com/university/)