INTRODUCTION

The FLOW blockchain is a next generation Proof of Stake platform originally engineered specifically to facilitate gaming ecosystems by enabling scalability and usability of fast, low-cost transactions and powering many projects we know today such as NBA Top shot, a leading NFT project in partnership with the NBA. The network has since expanded to facilitate other blockchain native sectors like DeFi and functions like staking. This analysis looks at staking on flow and how decentralized staking activities are on the network overtime.

Decentralization

One of the main themes in blockchain technology is the idea of Decentralization Vs Centralization. Blockchains provide an infrastructure that enables the creation of environments where users can transact peer2peer without the need for a centralized entity to process transactions. On Proof Of Stake networks, many of these tasks are carried out by decentralized teams delegating either their stake (holding of native blockchain asset) in order to participate in governance to validate and secure the platform. Having majority of the power held by a smaller group than the majority makes the network vulnerable to a 51% attack. On a proof of stake chain, this happens when one person/group or entity controls more than 50% of the staked cryptocurrency. Measure of decentralization helps us determine how vulnerable the network is to such attacks.

Methodology

For this analysis, we shall look at staking on FLOW by tracking the following:

• Total FLOW staked
• Staked/Unstaked per day
• Total Unique Stakers
• Unique staker growth overtime
• FLOW staked Vs FLOW circulating

Overtime, a total of 1.254Billion FLOW Tokens have been staked. Against the current circulating supply of 1.036billion FLOW, 702 million FLOW tokens has been staked, making the ratio of staked to unstaked FLOW 67.8%.

a combined total of 10,670 unique wallets/users have participated in FLOW staking activities, at an average of 36,200 tokens per person and the median amount being staked is 197 FLOW tokens. This indicates that majority of FLOW staked is held by a few top holders. This indicates that the FLOW staking activities are highly centralized among top holders than amongst community.

Majority of the transactions have been stake transactions vs stake vs claim reward transactions and have continued to accumulate steadily overtime. Cumulative volume vs Total volume overtime rise in steps at the beginning before slowing down, although sill growing.

The number of staking nodes vs the delegators is considerably lower, however, both figures have risen overtime. However, there has been significant turbulence in figures of users in 2022.

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