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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