==Introduction==

Osmosis is a network, developed through the Cosmos SDK (software development kit), using the infrastructure provided by this giant, which seeks to be a bridge between the different blockchains of this ecosystem. At the same time, Osmosis is an AMM, or in simpler words, a decentralized exchange, in which we can exchange coins from the networks to which it connects.

This project was born with the idea of being an AMM within Cosmos, but ended up using the SDK provided by this network ecosystem. Ultimately, Osmosis ended up assembling its own blockchain on top of this structure. Being a blockchain within Cosmos, we know that its consensus is Proof of Stake. Consequently, those who validate the transactions and create the blocks of the network are precisely the validators. Then we find the average users, who can delegate or stake their tokens with the validators in exchange for a juicy reward. Although Osmosis uses the Tendermint consensus, like Terra, Secret or Cosmos, it has applied differential criteria.

==Methods==

In this analysis we will focus on Osmosis Decentralizing Power. More specifically, we will analyze the following data:

• Evolution of active validators
• Nakamoto coefficient evolution
• Top 10 validator power evolution

In this graph we have analyzed the Nakamoto coefficient evolution. We see that from July 2021 to mid 2022 there is a fairly stable trend.

When proposal 196 is implemented, it is not until the middle of this proposal that the Nakamoto starts to increase. This fact is very important, because if Nakamoto increases it is easier to reach 33% of the total voting power. It increased to 9.

In the first graph we can see the evolution of active validators. We can clearly see that there is an upward trend. On December 29 of 2021, a vote was taken for proposal 114. We can see that it went from 124 validators to 140. On April 8th, proposal 196 was voted. The number of active validators increased again. It went from 140 to 159. During the period of time of this proposal it went up a little bit but it remained quite stable.

Finally, we see proposal 337 started on September 28, 2022. We clearly see that the number of active validators is also going up. They go from 159 to 170 validators. In short, when there is a new proposal, the active validators go up and then remain fairly stable until the next proposal.

Finally, we have analyzed the top 10 validator power evolution. We see that since June 2021 until today, there has been a downward trend in the top 10 validators. This fact has led to more decentralization.

The percentage of the Top 10 validators was, in June 2021, 25%, while today it has increased to 43%. Not a very positive figure for evolution validators.

==Key insight==

• In the evolution of active validators, there is an upward trend.
• On December 29 of 2021, a vote was taken for proposal 114. It went from 124 to 140 validators.
• On April 8th, proposal 196 was voted. It went from 140 to 159.
• Proposal 337 started on September 28, 2022. It went from 159 to 170 validators.
• When there is a new proposal, the active validators go up and then remain fairly stable until the next proposal.
• From July 2021 to mid 2022 there is a fairly stable trend in the Nakamoto coefficient evolution.
• When proposal 196 is implemented Nakamoto starts to increase.
• From June 2021 until today, there has been a downward trend in the top 10 validators.
• The percentage of the Top 10 validators was, in June 2021, 25%, while today it has increased to 43%.