FLOW: Not Editted
Flow blockchain embodies the principles of decentralization, enabling a trustless and transparent ecosystem. Its decentralized architecture ensures that no single entity has control over the network, fostering resilience and preventing censorship. This empowers users to participate in the network and make decisions collectively, promoting a fair and inclusive environment for all participants.
For this challenge I will first explain about the FLOW blockchain and its token a little bit. After stating some general statistics, I will dig deeper into analysis. Let's begin!
Flow blockchain is a decentralized, scalable, and developer-friendly blockchain designed to support the next generation of digital applications and services. Built by Dapper Labs, the creators of CryptoKitties and NBA Top Shot, Flow offers a unique architecture that prioritizes performance and usability. With its innovative approach, Flow addresses the scalability issues faced by other blockchains, allowing for high throughput and low latency transactions. This makes Flow ideal for applications requiring fast and seamless user experiences. Additionally, Flow provides a developer-friendly environment, empowering creators to build and deploy decentralized applications with ease. With its robust infrastructure and focus on user experience, Flow blockchain is poised to revolutionize the world of digital assets and experiences.
In the Flow blockchain network, there are several types of nodes that play different roles in maintaining the network's operations. These nodes include:
- Validator Nodes: Validator nodes are responsible for validating and confirming transactions, as well as participating in the consensus process to reach agreement on the state of the blockchain.
- Collection Nodes: Collection nodes store and maintain a complete copy of the blockchain's transaction history. They serve as a source of truth for archival purposes and facilitate historical data retrieval.
- Execution Nodes: Execution nodes execute smart contracts and process transactions on the Flow blockchain. They are responsible for executing the code and updating the state of the blockchain accordingly.
- Consensus Nodes: Consensus nodes participate in the consensus algorithm to agree on the order of transactions and maintain the integrity of the blockchain. They collectively decide on the validity of blocks and ensure the overall security of the network.
- Gateway Nodes: Gateway nodes act as entry points for external applications and services to interact with the Flow blockchain. They handle the communication and data exchange between the external world and the blockchain network.
Each type of node performs a specific function and contributes to the overall operation and security of the Flow blockchain network.
Staking is a mechanism in the Flow blockchain that allows token holders to participate in the network's consensus and governance processes while earning rewards. It involves locking up a certain amount of FLOW tokens as collateral to support the network's security and operations.
By staking their tokens, participants contribute to the network's decentralization and earn rewards in return. These rewards can come in the form of additional tokens or transaction fees generated by the network. Staking encourages active participation and long-term commitment from token holders, aligning their interests with the success and stability of the network.
The process of stacking involves delegating tokens to specific validator nodes, who then use them as collateral to secure the network and validate transactions. Participants can choose which validator nodes to delegate their tokens to, based on factors like performance, reputation, and rewards offered. Stacked tokens remain under the control of the token holder, and they can unstake them at any time, subject to any applicable lock-up periods.
Overall, stacking in the Flow blockchain incentivizes participation, contributes to network security, and enables token holders to earn passive income through rewards.
Let's jump right in the challenge! For this bounty I will analyze staking in FLOW using flow.core.ez_staking_actions table. There are 6 type of actions that I will put them in 3 categories. It is worth mentioning that I focused only on the successful transactions.
- Stake: DelegatorTokensCommitted & TokensCommitted
- Unstake: DelegatorUnstakedTokensWithdrawn & UnstakedTokensWithdrawn
- Claim Reward: DelegatorRewardTokensWithdrawn & RewardTokensWithdrawn
Now I will look at this data seperated in three categories mentioned before.
- As you can see a total volume of 2.1B stake transactions were done by 41.6k users.
- A total volume of 1.485B unstake transactions were done by 12.4k users.
- A total volume of 36.74M claim reward transactions were done by 12.3k users.
NOTE: The chart is drawn in logaritmic scale for the sake of better comprehension.
Based on the data, I will seperate FLOW stakes volume into five gropus of 1) less than 5 2) between 5-10 3) between 10-100 and 4) between 100-1000 and 5) more than 1000 flow. You will see the cut of each one of these volumes in each category below.
As displayed here, most of the transactions are in less than 5 range in every type of transaction except Unstake type. In the unstake category the range of more than 1000 flow have a significant percentage allocated to them.
Let's look at the daily average statistics.
As evident from the data, the staking process attracts a substantial number of average users and transactions. Moreover, staking demonstrates a comparatively higher average volume of activity.
As you see in the December of 2020 we have a great rise in the net staked volume. Then it begins to decrease till February of 2021 when it has a large negative value. By Mrach 2021 it starts to rise and fall again till it becomes somewhat steady.
In the case of new users, as demonstrated, the slope has been always positive with a sharp increase in mid March.
According to this chart, almost all the time staking had more users than unstaking. The number of users has decreased in short periods of times but overall it grew. First week of March had the most number of user staking.
Weekly transactions also include mostly staking. After staking, claim reward assigns most of the transactions to itslef. The transactions have also some low points but they have grown overally.
- The total volume has experienced a significant increase during the initial weeks, followed by a slight decline and subsequent stabilization.
- A considerable percentage of the total volume comprises staking activities.
- On a weekly basis, the volume is divided nearly equally between staking and unstaking transactions.
- Staking exhibits the highest slope in cumulative transaction count.
- Unstaking, on the other hand, demonstrates the smallest slope in cumulative transaction count.
- The cumulative volume of claim rewarding experiences the least change among all categories.
- There are two peaks (first one bigger than the second) in December in the number of nodes. Followed by two other peaks in October and February.
- The stake category boasts the highest average volume, amounting to 2.342 million units.
- Staking also demonstrates the highest average transaction count, with a value of 660.499 transactions.
- Additionally, staking attracts the largest number of average users, with nearly 613 users.
- Most of the delegators are in the less than 5 FLOWs in every action type except unstake.
- Unstaking has more delegators with 1000 FLOWs worth transactions and more.
- Most of the delegators have one transactions.
- In staking more than 10 transactions come next.
- However in other categories the next place belongs to two to five transactions.
I searched for the FLOW supply and according to their website:
https://flow.com/post/flow-coin-circulating-supply-analysis
It is declared there: as such, as of April 2022 1,036,200,000 FLOW freely circulate. It is important to note that these coins have already been freely circulating and there are no net new coins or other activities occurring.
We introduce Net staked volume as:
Net staked volume=Staked_Volume - UnStaked_Volume.
The ratio of Net staked volume to circulating flow is also calculated by deviding these two numbers multiplied by 100.
I have conducted an analysis of staking and its associated patterns on the FLOW blockchain. Each chart presented provides valuable data, which is thoroughly explained alongside it. I trust that the information is clear and comprehensive, but I remain available to address any inquiries or clarifications concerning this dashboard.
My contact information is provided below:
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