The degree of decentralization of a Web 3.0 project can be evaluated based on the following five indicators:
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Transparency of the project's wallet:
The more transparent a project's wallet is, the better understanding we have of the participants involved in the project.
Without transparent information about the participants, it is difficult to assess the project in depth. -
Proportion of tokens held in the initial wallet:
The initial wallet usually belongs to the project team and core investors. If they hold a significant proportion of tokens, it indicates a high level of centralization. -
Decentralization of the related ecosystem:
In the complex ecosystem of Web 3.0, most projects are not independent but rather attached or nested within other projects.
Even if a project is decentralized at the development level, its value and functionality can still be greatly influenced by other projects.
If the latter is a centralized project, then the former is essentially a centralized project as well. -
Influence of the project team:
Some project teams may not hold a large proportion of tokens, but their voices have a significant impact on the development community.
In such cases, the project is somewhat centralized, but the level of centralization is lower compared to projects where a few individuals hold a large proportion of tokens. -
Liquidity:
Even Bitcoin, as a completely independent project without any nested relationships, can be easily influenced by a few key participants during the early stages of low liquidity.
It is even possible for project data to be tampered with due to a lack of nodes on the blockchain or the monopolization of most nodes.
In other words, the possibility of asset ownership being manipulated by entities with significant computational power is higher in projects with poor liquidity compared to projects with high liquidity.