Definition ∞ Wealth Distribution refers to the manner in which economic assets, such as digital currencies or tokens, are allocated among individuals or entities within a given system. This concept assesses the fairness and equity of ownership across a participant base. In blockchain, it often analyzes the concentration of tokens in specific addresses or the spread of mining rewards. Understanding this distribution provides insights into economic centralization.
Context ∞ Discussions around Wealth Distribution in cryptocurrency often address concerns about market centralization and the potential for a few large holders to exert undue influence. A key debate involves designing tokenomics and governance models that promote a more equitable spread of assets and decision-making power. Future developments will likely focus on mechanisms that incentivize broader participation and reduce wealth disparities within decentralized autonomous organizations and other digital asset ecosystems.