Definition ∞ A supply distribution flaw refers to an uneven or concentrated allocation of a cryptocurrency’s total supply among a small number of addresses or entities. This can result from early private sales, pre-mining, or insufficient decentralization mechanisms during a token launch. Such a flaw can lead to market manipulation or governance centralization. This undermines decentralization.
Context ∞ News reports often scrutinize projects with perceived supply distribution flaws, as it raises concerns about potential market control by a few large holders. Addressing these flaws is critical for maintaining the integrity and decentralization principles of a blockchain project, impacting investor confidence and long-term viability and fairness.
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