"LIBRA's Concentrated Power: 70% in Two Hands, $1B Controlled by Developers"
1min read Arkham Monitor, a blockchain analytics platform, has revealed that 70% of the LIBRA token supply is held in just two addresses, with developers still controlling over $1 billion worth of the cryptocurrency. This concentration of supply has raised concerns about the decentralization and security of the LIBRA network.
The report also highlights that 15% of the LIBRA supply has been directly deposited into the Meteora LP from the developer's address, which has already collected over $20 million in transaction fees. Additionally, 7 different addresses received a total of 60 million LIBRA from the deployer, with each address providing liquidity to the pool, adding one-sided liquidity for selling, and eventually withdrawing funds in SOL and USDC.
It is worth noting that addresses related to LIBRA developers currently hold over $100 million in USDC and SOL, with the majority already transferred to separate holding addresses, now holding $57.6 million in USDC and $48.6 million in SOL.
Kelsier Ventures, the token issuance advisor for LIBRA, has proposed utilizing the controlled 100% funds (up to $100 million) to repurchase LIBRA tokens and burn them. This move aims to reduce the supply of LIBRA tokens and potentially increase their value.
The concentration of LIBRA tokens in the hands of a few developers has sparked debate within the crypto community about the project's decentralization and the potential risks associated with such a high level of control. Some argue that this concentration could make the network more vulnerable to attacks or manipulation, while others point out that the developers have the right to control their own tokens.
As the LIBRA project continues to evolve, it will be important to monitor the distribution of tokens and the actions of the developers to ensure the network's security and decentralization. The proposed token burn by Kelsier Ventures could help to address some of these concerns, but it remains to be seen how the LIBRA community will respond to this and other developments in the project.
