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What Is the Risk of a Highly Centralized Token Distribution?

Small number of 'whales' gain excessive control over governance and price, leading to market instability and centralization.
Greeks.Live16.11.25

What Is the Risk of a Highly Centralized Token Distribution?

The risk of a highly centralized token distribution is that a small number of entities (whales) hold a disproportionate amount of the supply, giving them excessive influence over governance decisions and market price. This concentration creates market instability, as a coordinated sell-off could crash the price, and undermines the fundamental principle of decentralized control and censorship resistance.

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