Stake Distribution

Definition ∞ Stake distribution refers to the allocation and concentration of staked cryptocurrency assets among network participants. It indicates how widely or narrowly the control and rewards associated with staking are spread across validators or delegators. Analyzing stake distribution is crucial for assessing network governance and potential centralization risks.
Context ∞ The concentration of staked assets can significantly influence the governance dynamics and security assumptions of proof-of-stake blockchains. High concentration among a few entities may raise concerns about collusion or censorship. Monitoring shifts in stake distribution is therefore a key activity for analysts assessing the health and decentralization of these networks.