►
From YouTube: A Breakdown of Ethereum Supply Distribution Since Genesis by Christine Kim | Devcon Bogotá
Description
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https://archive.devcon.org/archive/watch/6/a-breakdown-of-ethereum-supply-distribution-since-genesis/
As Ethereum looks ahead to its transition to a fully to a proof-of-stake consensus protocol, the topic of Ethereum’s supply distribution matters more than ever to network stakeholders. This is because under PoS, the amount of ETH users control directly determines how much influence they can have over the network’s consensus building process and the amount of rewards they can earn from staking. This talk dives into how distributed ETH supply on Ethereum has become over the last 7 years.
Speaker(s): Christine Kim
Skill level: Intermediate
Track: Staking & Validator Experience
Keywords: Decentralization,ICO,Whales
Follow us: https://twitter.com/efdevcon, https://twitter.com/ethereum
Learn more about devcon: https://www.devcon.org/
Learn more about ethereum: https://ethereum.org/
Devcon is the Ethereum conference for developers, researchers, thinkers, and makers.
Devcon 6 was held in Bogotá, Colombia on Oct 11 - 14, 2022.
Devcon is organized and presented by the Ethereum Foundation, with the support of our sponsors. To find out more, please visit https://ethereum.foundation/
A
A
Sense,
the
Network's
Genesis.
This
is
going
to
be
a
two-part
presentation.
First,
we're
going
to
discuss
how
60
of
total
e
Supply
today
was
generated,
all
in
one
single
block
and
how
that
very
large
sum
of
eth
got
distributed
over
time
and
then
second,
we'll
discuss
total
steak
to
eat
Supply,
which
is
actually
a
very
small
percentage
of
total
Supply.
But
now
it
has
an
extremely
outsized
impact
on
network
security
and
censorship.
Resistance,
so
before
I
dive
into
the
data,
I
want
to
elaborate
a
little
bit
on.
A
So
to
understand
how
resilient
ethereum
is
against
attacks
such
as,
for
example,
like
a
51
attack.
What
one
of
the
key
questions
to
ask
is
who
controls
stake,
eat
Supply
and
how
easy
is
it
to
seize
control
of,
say,
deed
Supply
and
the
more
concentrated
that
your
Stakes
eat?
Supply
is
the
easier
it
is
to
disrupt
Network
consensus.
It's
like
a
centralized
point
of
failure,
but
the
less
concentrated
your
steak
eats.
This
Supply
is
the
harder
those
types
of
attacks
are,
and
the
second
reason
is
very
closely
related
to
security.
A
It's
a
it's
a
one
that
goes
part
and
parcel
with
security,
and
that's
because
the
supply
distribution
of
ethereum
it
matters
more
than
ever,
also
to
the
decentralization
of
ethereum,
and
that
relates
to
censorship,
resistance
and
credible
neutrality.
Because
validators
are
now
the
block
proposers
of
ethereum.
They
are
the
block
proposers
of
a
proof
of
stake
blockchain
and
for
those
of
us
who
are
from
the
US.
A
This
really
does
matter
also
from
a
regulatory
point
of
view,
because
for
The
Regulators,
like
the
SEC
decentralization,
is
a
key
criteria
determining
what
type
of
financial
asset
each
should
be
classified
as
and
finally,
the
third
reason
is
because
this
topic
helps
to
illustrate
who
the
biggest
winners
are
from
proof
of
stake
from
aka.
The
merge
upgrade
the
biggest
eat
holders
on
ethereum
are
in
the
best
position
to
profit.
Now
that
the
merge
upgrade
is
complete
and
the
capital
that
they
hold
will
now
be
able
to
generate
more
capital
on
the
network.
A
So
whoever
holds
a
lot
of
Youth
now
stands
to
generate
and
and
continue
to
to
hold
on
to
a
lot
more.
Even
this
is
a
little
different
from
proof
of
work
mining,
whereas
and
where
miners
were,
to
some
extent
incentivized
to
sell
off
their
ease,
do
their
due
to
their
High
operational
costs.
So
when
you're
mining
Aid,
you
sell
it
off
once
you've
mined
it
because
you
have
to
pay
a
very
high
electricity
bill,
but
for
validators,
that's
not
the
case.
A
A
This
value
there's
actually
quite
a
lot
of
dispute
around
the
exact
decimal
points
of
the
of
the
value.
But
for
that
conversation
around
some
of
the
nitpicky
stuff
of
how
we
even
know
what
total
Supply
is
I
encourage
you
to
read
the
full
report
that
I've
written
on
This
research
topic
at
galaxy.com,
but
more
than
mining
or
validating
combined.
The
majority
of
Supply
was
allocated
before
the.
B
A
Total
eats
Supply
today
was
distributed
at
the
Network's
Genesis
to
participants
Who
had
who
were
involved
in
the
initial
coin,
offering
so
the
Ico
sale
of
ethereum
basically
sold
off
each
to
the
general
public.
Anyone
with
an
internet
connection
who
had
Bitcoin
could
participate
in
this
fundraising
effort,
effort
for
ethereum
and
that
sale
took
place
in
2014
a
year
before
ethereum
even
launched,
and
it
raised
funds
for
about
42
days.
Around
18
million
dollars
was
raised
at
the
time
now.
The
second
part
that
I
want
to
highlight
is
12
million
eth.
A
So,
like
some
of
those
names,
big
names
are
like
vitalik,
buterin,
Charles,
hoskinson,
mihilisi,
Gavin,
Woods,
Joe,
Lubin,
there's
there's
more,
but
it's
not
clear
the
distribution
of
how
much
of
that
12
million
went
to
those
contributors,
and
we
also
don't
know
exactly
what
the
full
list
of
contributors
were
at
the
time.
There's
sources
to
say
that
you
know
it
was
split
up
around
85
early
project
Founders.
So
a
lot
of
critics
of
ethereum
do
note
that
the
distribution
of
coins
through
processes
that
take
place
before
the
public
launch
of
a
cryptocurrency.
A
So
before
mining
starts
before
validating
starts.
This
is
called
a
pre-mine
and
it
can
be
easily
manipulated
by
a
few
select
instritors
and
it's
not
a
very
transparent
process
to
understand
who
got
what
and
to
some
extent.
This
is
very
true
if
there's
two
really
great
books
that
discuss
a
lot
of
the
drama
and
the
difficulties
around
figuring
out
how
much
of
this
eth
should
be
distributed
to
early
project
contributors,
Laura,
shins,
cryptopians
and
Cami.
A
Russo's,
infinite
machine
are
two
books
that
discuss
that
history
and
when
you
think
about
the
Ico,
there
is
on-chain
data
to
show
that
you
know
that
60
million
eat
it
was
distributed
across
eight
thousand
eight
hundred
different
on-chain
accounts,
which
sounds
really
decentralized.
But
the
thing
is,
we
don't
know
how
many
of
those
accounts
were
actually
owned
by
the
same
person.
It's
a
very
difficult.
A
So,
let's
start
with
the
ethereum
foundation,
the
biggest
the
top
recipient
of
the
free
mine
over
the
past
seven
years.
You
can
see
in
this
black
shaded
area
that
its
supply
has
decreased
dramatically,
starting
with
the
12
million.
It's
reported
that
the
foundation
gave
roughly
half
a
way
to
those
85
early
project,
computer
contributors.
We
don't
know
exactly
how
they
are,
how
it
was
divvied
up
and
then
another
3
million
was
set
aside
for
foundation
employees
through
something
called
the
developer
purchase
programs
and
for
the
3
million
that's
remaining
from
12
to
6
to
3..
A
It's
well
documented
that
the
ethereum
foundation
had
to
sell
off
their
eth
in
2018
and
2021
to
pay
off
operational
expenses
and
just
keep
the
foundation
going.
But
of
course,
this
is
really
just
one
account.
This
is
a
publicly
labeled
account
on
etherscan
and
you
might
be
asking
well
what,
if
ethereum
Foundation
has
more
accounts
on
chain
that
we
don't
know
about.
Well,
as
of
March
31st
2022,
the
ethereum
foundation's
self
reported
their
financials.
They
said:
hey
everyone
in
the
in
the
in
the
spirit
of
transparency.
A
A
But
that
represents
0.3
percent
of
total
eat
Supply,
so
we
went
from
12
million
to
now.
0.3
percent
of
total
eat
Supply
and
the
EF
has
has
sold
off
some
of
the
East
to
hold
other
assets
and
a
lot
of
this
analysis
I
will
you
know,
explain
that
it
depends
on
self-reporting.
It
depends
on
these
individuals,
major
individuals
to
self-report
how
much
eat
they
still
hold.
So
vitalik
has
talked
about
this
openly.
A
Not
everyone
is
super
altruistic
and
not
everyone
is
going
to
just
like
explain
how
much
eat
they
hold.
So
it's
worth
also
looking
at
some
on-chain
data,
who
are
the
biggest
Ico
recipients.
Well,
the
top
receiving
addressed
from
the
Ico
received
one
million
eth
and
over
time,
outflows
from
that
account
reveals
that
the
funds
have
been
dispersed
to
several
other
accounts.
So
this
this
one
account
that
received
one
million
Eve.
You
can
see
that
they
sent
some
of
that
each
to
centralized
exchanges.
A
And
similarly,
if
you
do
the
same
exercise
for
the
second
and
the
third
top
accounts
that
receive
the
Ico,
they
received
around
935,
000
eth
and
then
933
000.
Each
that's
the
second
and
the
third
largest
recipients.
95
of
the
funds
that
they've
received
has
since
been
transferred
over
to
centralized
exchanges,
so
that
basically
means
that
funds
have
been
moved
off
chain.
A
But
if
we
take
a
little
bit
more
of
a
broader
look
at
at
all
of
the
where
all
of
the
eth
has
since
flowed
to
this
is
data
that
was
compiled
from
nansen,
but
it
sums
up
the
first
outgoing
transaction
between
2015
and
2018
from
accounts
that
received
eth
from
the
Genesis
plaque,
and
it
shows
that
the
top
10
receiving
entities
it
shows
like
the
top
10
of
like
how
much
eat
they
receive,
and
most
of
them
are
exchanges.
Only
2.3
percent
of
ethereum's
pre-mind
Supply
was
held
unmoved
from
2015
to
2018..
A
If
you
want
more
supporting
evidence
for
this
idea
that
ethereum
supply
distribution
has
has
changed
over
time
and
how
the
biggest
winners
of
the
proof
of
stake
merge,
most
likely
aren't
the
Ico
recipients
and
early
Founders.
That
report
is
on
galaxy.com,
but
because
of
limited
time,
I
now
want
to
jump
to
showing
you
guys
some
data
around
total
staked
eat
Supply
and
how
we're
seeing
that
data
kind
of
evolve
over
time
and
the
trends
around
State
Supply
that
we're
seeing
over
time.
A
So
in
comparison
to
how
much
total
eth
Supply
there
is
only
roughly
12
percent
has
been
staked
on
ethereum,
which
is
kind
of
small,
that's
18.5
billion
dollars
on
ethereum,
and
that's
very
surprising
kind
of
to
me,
because
if
you're
not
staking
your
teeth,
you're,
essentially
getting
diluted
and
liquid
staking
Solutions
basically
means
you
don't
have
to
make
that
trade-off
of.
Oh,
if
I
lock
in
my
Eve,
then
I
can't
use
it
for
D5
applications.
A
It's
it's
surprising
that
it's
only
at
12,
but
that's
probably
because
number
one.
You
can't
actually
withdraw
your
steak
right
now.
There
is
a
big
risk
factor
in
that
you
know
Shanghai
we're
not
exactly
sure
which,
when
Shanghai
is
going
to
be
and
up
until
very
recently
until
last
month,
it
was
very
uncertain
when
the
merge
would
actually
happen,
and
there
were
tons
of
risks
associated
with
the
merge
that
probably
made
people
a
little
bit.
Iffy
about
should
I
be
staking
my
eth
into
the
beacon
chain.
A
So
there
were
core
like
developments
in
the
protocol
that
needed
to
happen
in
order
to
grow
more
confidence
in
staking
your
eat,
and
so
I
actually
suspect
this
figure
to
start
Rising.
Now
that
the
merges
happened
and
especially
after
Shanghai
is
complete-
and
you
can
see
that
this
trajectory
like
year
over
year,
it's
getting
higher
and
higher,
and
if
we're,
if
we
start
to
see
more
total
supply
of
ease,
become
staked,
it's
important
to
ask
the
question
who's
holding
that
eat
and
how
has
that
distribution
changed
over
time.
A
A
Why
do
we
see
this
happen?
Why
do
we
see
it
going
from
from
70
to
like
smaller
well,
I
think
number
one?
It's,
because
it's
a
lot
easier
to
stake
with
a
staking
provider
than
it
is
to
run
your
own
validator
node,
especially
after
the
merge
with
the
execution
layer,
client
and
the
consensus
layer,
client
and
making
sure
that
those
Communications
happen
in
the
right,
Manner
and
not
getting
slashed.
A
It
is
much
easier
to
just
kind
of
offload
that
technical
capability
to
somebody
else
and
ask
somebody
else
to
run
it,
and
the
second
thing
is,
you
can't
actually
have
liquid
sinking.
If
you're
an
independent
staking
provider,
there's
a
ton
of
benefits
of
going
to
Lido
and
then
being
able
to
re-hypothecate
your
steak
ease
and
get
additional
yield
so
I
think
a
big,
a
big
plus
of
Lido
is.
Is
this
idea
of
liquid
staking
that
you
don't
get
as
an
independent
Staker
and
then?
A
But
theoretically,
if
you
join
a
staking
pool
that
has
control
over
more
than
one
third
of
the
eat
or
like
key
thresholds
like
one
fifth,
like
one
half
of
the
eve,
then
you
also
have
this
ability
to
theoretically
achieve
outsized
profits
by
deploying
cross
like
multi-block,
multi-block,
Mev
strategies
and
you're
able
to
like
manipulate
block
time
times,
and
do
these
fancy
things
that
you
can
only
do
if
you're,
a
very
large
staking
provider
and
in
those
ways
like
increase
your
reward
so
left.
Unchecked.
A
I
really
do
think
that
this
trend
of
of
increasingly
centralized
players
dominating
the
staked,
Arena
I,
think
that's
a
trend
that
we
could
start
to
see
grow
a
lot
stronger
over
time.
If
we
don't
start
talking
about
Solutions
now
so
for
the
the
last
slide,
I
wanted
to
talk
about
some
of
these
Solutions
and
I'm
not
going
to
go
much
into
distributed
validator
technology,
because
that
was
explained
in
much
detail
in
the
last
presentation.
A
So
the
first
one
it
was
proposed
earlier
this
year
by
Justin,
Drake
and
He,
suggests
the
creation
of
a
liquid
staking
derivative
token
called
LSD,
which
is
the
name
of
drug.
But
it
stands
for
liquid
staking
derivatives,
yes,
and
this
would
basically
allow
independent
node
operators
running
their
own
validators,
as
opposed
to
other
to
that
of
other
users.
A
But
of
course
this
would
require
a
really
heavy
and
major
code
change
to
ethereum
consensus
mechanism,
it's
protocol
and
its
design
and,
as
you
saw
in
the
last
presentation,
with
Dank
striding
statelessness,
all
these
other
things
in
ethereum's
roadmap.
It's
kind
of
hard
to
think
that
liquid's
solo
validating
is
in
ethereum's
near
future,
but
it
is
a
solution
or
a
potential
proposal
that
has
been
discussed
but
I'm
just
saying
it's.
It
would
require
a
lot
and
there's
a
lot
on
ethereum's
development
roadmap,
as
you
probably
noticed
from
the
last
presentation.
A
The
second
one,
which
is
a
more
short-term
solution
that
many
ethereum
community
members
have
been
advocating
for,
is
basically
just
altruistic,
behavior
from
the
top
staking
protocol.
So
vitalik
was
tweeting
earlier
this
summer
about
this
idea
that
may
be
staking
pools
should
just
altruistically
start
increasing
fees
for
users.
A
So
Mev
is
a
really
great
example
where
we
saw
a
lot
of
altruistic
behavior
from
from
Key
ecosystem
players
before
ethereum
merged.
There
was
ethermine,
which
was
the
largest
ethereum
mining
pool
by
hash
power,
and
they
publicly
tweeted
about
refraining
from
Mev
opportunities
that
don't
align
with
the
ethos
of
the
ethereum
community.
Out
of
support
for
the
longevity
of
the
protocol,
so
they're
basically
leaving
money
on
the
table,
not
interacting
with
certain
memory
strategies,
because
it's
just
bad
and
they're
not
going
to
do
that.
A
Flashbots
recently,
tweeted
we're
gonna
start
giving
blocks
to
other
relays
because
we
just
want
to
bootstrap
other
relays,
and
we
want
to
help
out
the
ecosystem.
Ethereum,
2.0,
client,
diversity,
exit
consensus,
layer,
client
diversity,
even
though
not
all
teens
are
like
have
the
same
resources
and
they
have
the
same
track
record
for
performance.
They
were
was
a
huge
Push
by
the
community
to
just
encourage
minority
clients
to
gain
more
user
adoption.
A
So
time
and
time
again
we're
seeing
a
lot
of
altruistic,
Behavior,
encouraged
and
I
actually
hate
this
kind
of
solution
of
just
like
relying
and
encouraging
the
altruism
of
ecosystem
players
to
keep
ethereum
safe,
but
I
put
it
on
the
slide
because
it's
worked
for
other
Solutions
before
and
we've
seen
examples
of
it
happening
on
ethereum,
and
it
was.
It
was
one
of
the
proposals
around
this
topic
for
how
we
want
to
see
steak,
eth
being
more
decentralized
over
time
and
then
the
final
one
is
distributed.
A
Validator
technology
I
won't
go
too
deeply
into
it
because
again
it
was
talked
about
in
the
last
slide,
but
this
I
will
also
specify
is
a
research.
An
active
research
initiative,
opal
and
SSV
are
two
of
like
the
few
projects
in
this
ecosystem.
That's
really
trying
to
make
DVT
a
reality
and
I
didn't
really
in
this
presentation,
go
much
into
how
Mev
boost
is
actually
changing.
B
A
So
I
think
it's
really
great
that
we're
talking
about
this
here
and
that
we
have
a
great
audience
of
people
who
can
bring
other
perspectives
and
other
ideas
so
that
it's
not
all.
From
a
perspective
of
like
you
know,
we
were
all
educated
from
like
universities,
out
of
like
North
America,
but
many
like
different
ideas,
so
Yes
actually.