📜 Introduction

In this study we are going to examine how centralized or decentralized is NEAR blockchain. We are going to study:

• Percentage of validators staked
• Total near staked and number of validators
• Nakamoto coefficient
• NEAR balance distribution

🤔 Approach

Data Source and Tables

To conduct our study, we are using blockchain data provided by Flipside Crypto. From near.core schema, following tables are used:

• near.core.fact_actions_events_function_call
• near.core.fact_transactions

Methodology

In order to find top validators on NEAR blockchain, first we have to look for staking transactions on NEAR blockchain, for this, fact_actions_events_function_call table is used. The amount staked can be found in tx:actions[0]:functioncall:deposit record.

Studied Metrics

In this study we are using following metrics to measure decentralization of NEAR blockchain: Validators, Staking, Nakamoto Coefficient, Weekly NEAR Holders.

References

pinehearst’s dashboard and methodology is used to calculate distribution of NEAR holders.

adriaparcerisas’s method is used to calculate Nakamoto Coefficient.

Study Period

All historical data available is used.

✅ Validator

Top Near Validators

This chart depicts top NEAR validators and their percentage share in total NEAR staking pool.

Top validators are:

1. meta pool which accounts for 8.19% of all staked NEAR
2. astro stakers, with 7.87% share.
3. aurora, with 5.5% share.

Its a bit alarming to see that top 9 validators, control nearly 50% of all delegated NEAR.

🏛️ Weekly NEAR Holders

The following chart illustrates distribution of the wallets based on their NEAR balance.

It can be seen that before May 2022, many wallets held more than 100 NEAR, but it seems after May 2022, most wallets have less than 1 NEAR.

The decrease in number of wallets that hold lots of NEAR can be beneficial to the diversity and decenteralzation of the ecosystem.

🪙 Nakamoto Coefficient

Nakamoto Coefficient determines the number of nodes that must be compromised to affect the blockchain and obstruct it from functioning correctly. A higher Nakamoto measure indicates a more decentralized network.

Based on the following chart, we can understand that over time the security of blockchain has increased, as Nakamoto Coefficient remarks decentralization.

💰 Stake/Unstake

NEAR Stake and Unstake Actions

In this section we are going to study Stake and Unstake activities done on NEAR blockchain.

First thing that can be seen, is that most actions are related to staking, and the staked volume is higher than unstaked volume, this means users tend to stake more and are keeping their money staked on NEAR blockchain.

During last days of Oct 2021, there were many users who have staked their NEAR. Recently both number of staking and unstaking has been stable.

Weekly staking and unstaking volume is mostly around a total of 3M NEAR but on some occasions it increases drastically.

Weekly Active Validators

This chart depicts the number of active validators on Near blockchain.

It can be seen that, the number of validators have grown after Jan 2022.

🔎 Summary

Lets discuss our key findings in each section:

• Validators :
  • The number of validator has increased in the past 6 months and many of them has been active, which beneficial to decentralization of the ecosystem. ✅
  • The top 9 validators hold 50% of the staked NEAR, this is alarming! ❌
• Staking :
  • The amount of staking is higher (at least double) than the amount of unstaking, which beneficial to decentralization of the ecosystem. ✅
• Nakamoto Coefficient:
  • This number determine the security and decentralization of the blockchain, it has increased over past few months. ✅
• Weekly NEAR Holders
  • The decrease in number of wallets that hold lots of NEAR can be beneficial to the diversity and decentralization of the ecosystem. ✅

✍️ Contact Me!

Discord: ThatGuy#8467

Twitter: @realAminTakht