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How Does the Distribution of Staked Assets Relate to the Nakamoto Coefficient?

The Nakamoto Coefficient is a metric that quantifies the level of decentralization in a blockchain network. It represents the minimum number of independent entities (validators, pools, etc.) required to collude to compromise the network (e.g. execute a 51% attack).

In PoS, the distribution of staked assets directly determines this coefficient; a more even distribution results in a higher, healthier coefficient.

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