The launch of the Secret Network has brought roar of activity for the network. In particular, there is some exciting news to bring to the table concerning decentralization. The network has become more decentralized since August in a tangible way . Yet, there are also some events that are important to examine before we dive into the quantitative numbers. With SGX requirements now being mandatory on mainnet, there has been a decrease from 46 validators to 34 active validators. This was an expected change as SGX hardware requirements are uniquely expensive, which is par for the course when pushing the boundaries of computational obfuscation. In addition, with Binance recently supporting a swap for many of its users, there will inevitably be a large influx of individuals staking on the network. At Secure Secrets, we are actively tracking these developments as they happen, and will be sure to let you know what we see with our October report.
We will now begin a quantitative analysis of the Secret Network and the distribution of governance control within the protocol. This is done on a monthly basis on the 30th day of each month using a snapshot of https://puzzle.report/ (courtesy of Secret Nodes) using the top 50 active validators (in this report, only 34). Linked is the publicly accessible spreadsheet of all calculations used in the below quantitative investigation using a snapshot of September 30th, 2020.
Quantitative Investigation
Delegated to Supply Ratio decreased by 2.2%. Total SCRT increased by 56%. Total Delegated SCRT increased by 50%. Total active nodes decreased by 46%.
August 2020 distribution chart:
In stark contrast to September 2020 distribution (this report)
An important quantitative value examined each month is the number of validators that are needed to reach a successful vote of > 50%. With the current setup, the top 6/34 active validators (Quiet monkey mind, puzzle.report, ChainofSecrets.org, Mario, Staked, Cashmaney) collectively own 54.6% of delegation on the Secret Network. This is a huge cause for celebration. Previously the top 4 controlled over 50%, now it is the top 6 that control over 50%. This an excellent shift towards decentralization!
Now let’s take a look at bottom half versus top half compared to last month.
What does it mean to be properly decentralized? What percentage of a network’s governance (that consists of approximately 34 nodes currently) should be given to the bottom 50% of the network? Currently, the numbers are as follows:
This is a 7% decrease in control from the top 50% of the network, and a nearly 10.5% increase for the bottom 50% of the network! The Secret Network community should be proud of all the efforts made to distribute delegation.
These numbers will continue to be updated every month, tracking the progression towards decentralization or centralization on a month to month basis. Secure Secrets also wants to acknowledge in this report that there is a large amount of SCRT that has not been swapped that will continue to be tracked. This large number of potential SCRT will make a big difference in distribution of the network. It is our job as members of the Secret Network to continue to quantitatively track the change of distribution of delegation, and to generate discussion as time progresses.
Wondering how these quantitative values effect staking? Check out the tutorial below!
If you would like to contact Secure Secrets, please reach out to Carter Woetzel or Mohammed Patla on Telegram.
Main Secret Network github page: https://github.com/enigmampc/SecretNetwork
Website: https://www.securesecrets.network/
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secret1ekhx9r35jpwmgngc48uhdead2ea25n4zgl9euu