ECB Challenges Crypto Decentralization Narrative with New Research

The European Central Bank (ECB) has published a working paper that questions the level of decentralization in modern cryptocurrency systems.

According to the study, there is a strong concentration of governance tokens and voting power among top protocol holders. The researchers analyzed four DeFi protocols on Ethereum, finding that the top 100 wallets control more than 80% of governance tokens.

The findings have sparked debate about what constitutes sufficient decentralization in crypto systems. Some argue that the study's methodology is flawed, while others see it as a necessary step towards greater transparency and accountability in the industry.