Definition ∞ Stake wealth concentration describes a situation in Proof-of-Stake (PoS) blockchain networks where a disproportionately large amount of the network’s native tokens is held by a small number of entities. This accumulation of staking power can grant significant influence over block production, transaction validation, and governance decisions. It presents a potential vulnerability to decentralization and can lead to a reduction in censorship resistance. The phenomenon can affect the fairness and security of the network.
Context ∞ Stake wealth concentration is a recurring concern and a subject of continuous analysis in the broader discussion of Proof-of-Stake blockchain security and decentralization. Debates often focus on the long-term implications for network stability and the integrity of governance mechanisms. Future research and protocol upgrades aim to design economic incentives and technical mechanisms that actively counteract this concentration, promoting a more distributed and resilient staking ecosystem for digital assets.
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