Gini Index

Definition ∞ The Gini Index is a statistical measure of economic inequality within a population or system. It quantifies the distribution of wealth or income, with values ranging from zero, representing perfect equality, to one, indicating maximum inequality. In the context of digital assets, it can be applied to assess the distribution of token holdings among network participants. This metric provides insight into the concentration of economic power within a blockchain ecosystem.
Context ∞ The Gini Index is increasingly utilized in analyses of blockchain networks to assess the distribution of native tokens and the potential for centralization of governance or economic influence. Debates frequently involve whether high Gini coefficients in token distribution pose a threat to the decentralized ethos of a project. Researchers and analysts regularly employ this index to evaluate the economic equity of various digital asset protocols.