How Well Is The Terra Luna Token Distributed Amongst Validators?

By Luke Harriman — Powered by Flipside

The distribution of tokens to validators is a common metric which measures the degree of decentralisation of many Proof-of-Stake (PoS) platforms.

Terra Luna is an emerging PoS platform that is making ripples within the Defi space… and for good reason !

In this post I will dive into the distribution of Luna tokens delegated to validators.

The Terra Luna ecosystem has approx. 370,108,222 Luna delegated to secure the network. Illustrated in the graph above, the top 10 validators on the network control about 27% of the delegated Luna tokens.

Is this well distributed ?

‘well distributed’ is relative.

In order to determine whether Terra is ‘well distributed’ is must be compared to the distribution seen on other major PoS networks.

Lets compare.

The table above compares the distribution of delegated tokens on the Terra, Avalanche and Solana blockchain. It’s evident that both Avalanche and Solana have many more total validators at which have a more even distribution of 95% of the delegated tokens. Terra, however, shows the least amount of validators and the most concentrated distribution of delegated tokens when compared to both Avalanch and Solana.

Despite this, I still believe that the distribution is sufficient to operate a decentralised network. Even though, in contrast, Solana and Avalanche have a better token distribution, the ecosystem still has a high degree of decentralisation.