Why Is a High Degree of Centralization Often Necessary during a Project's Bootstrap Phase? ⎊ Path

Why Is a High Degree of Centralization Often Necessary during a Project’s Bootstrap Phase?

During the initial bootstrap phase, a high degree of centralization (e.g. core team control) is necessary for speed, efficiency, and rapid iteration. The code is new and likely contains bugs, requiring quick fixes and upgrades without a slow, multi-day governance vote.

Centralized control allows for swift strategic decisions, immediate security patches, and efficient resource deployment. This initial efficiency is traded for decentralization, with the explicit goal of gradually decentralizing once the protocol is mature and secure.

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Glossar

Centralization

Architecture ⎊ Centralization, within cryptocurrency, options trading, and financial derivatives, denotes a concentration of control and decision-making power, often manifested through centralized exchanges or custodians.

Degree of Centralization

Metric ⎊ The degree of centralization quantifies the distribution of control and influence within a decentralized network, often measured by the concentration of staking power, mining hash rate, or governance voting rights.