Governance Period 4 Voting power centralization, consensus participation and known entities

We published two reports, one focusing on centralization of voting power in Algorand Governance Period 4:

And another trying to resolve some of those addresses to known entities, as well as look at their consensus participation statistics:


  • Excluding top wallet (Folks Finance, not a single-entity):

  • Top 37 individual whale wallets: control vote/50% of rewards

  • Wallets with over 1 million ALGO commitment: 86% of vote/rewards

  • Two identifiable orgs based on AlgoExplorer labels: Algorand inc and NFDomains. No known CEX addresses found.

  • Consensus participation: 42% of whale stake is online! Of which, Algorand inc is ~13% and the rest unknown.

  • Algorand inc has 225m committed, 5.9% of total


On top of all that, “proposals” are decided by the Foundation probably a handful of individuals at best. Proposal, votes and results all controlled by the same entities or individuals. Lets see if the “discussions” on this Forum and in Reddit made any impact to their initial “proposals”. My bet is that it made zero differences. Either way, it would be another waste of a quarter and only result is freshly minted ALGO for everyone. Enjoy while it lasts.

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They seem to recognize that passive gov rewards need to be reduced/redirected to more productive incentives that will lead to on chain economy (and TVL and token price) growth

Others may have different issues but to me this is actually the highest priority, and if we exit the bear market with incentives that are more aligned w/ ecosystem growth (as opposed to BUY THIS AND HODL) then Algorand may actually become a top 10 coin

The timing to incentivise DeFi at the expense of governance is excellent considering the upcoming CeFi and DeFi bridges.

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this measure is too little too late, just like how Algorand missed the TPS, NFT and DeFi hype throughout the last bullrun. this is where other L1s gained massive adoption and name recognition. now allocating 7M to DeFi when there Aeneas Liquidity Program is 300M is a drop in the ocean.