The Nakamoto Coefficient

• This coefficient is the number of validators required to take over the network's consensus. In the case of proof of stake networks such as NEAR, the amount of stake required to overtake the network is roughly 33% of the stake.

• NEAR's Nakamoto coefficient is only at 9, implying the top 9 validators' majority with their stake are enough to overtake the network! ❌⚠️

• This number needs to be far higher for a better-decentralized network. ⚠️ (Chart on the right)

Block Production

• In a fairly decentralized network, block production should be done by a large diverse network of producers

• NEAR started off with rather few producers but over time has increased that count to roughly 100 distinct producers a day. ✅

• However, this number seems to have again stagnated and the network/foundation should strive to increase it further. ⚠️

• Additionally, the top 8 producer validators produce roughly 25% of the total blocks! ⚠️