[DGD] Due Diligence - Gini Coefficient

Excludes DAO and exchange addresses

Can we get some context for this? Is it general FYI or is there a take-away here?

Iā€™m not the OP, but this seems to suggest that DGD is heavily concentrated in a few holders which is not ideal for Maker collateral

Feels like we need to quantify what heavily concentrated means in this space, and at what point that becomes a bad thing.

I think we should also get the Gini charts for ETH and MKR, and use those in establishing a baseline which the rest of the collateral types can be compared/contrasted.

@tbone, is it easy enough to generate these charts for ETH/MKR?

For MKR yes, for ETH not sure. Graph of OMG is in the pipeline.

If you search from:tbone on rocket chat you should find a recent graph for MKR. I can post an updated one here if there is interest.

Here are some 2 year old stats for BTC & ETH which might help: https://news.earn.com/quantifying-decentralization-e39db233c28e?gi=dc598c2fbd0

All of these Gini coefficient posts are not necessarily helping us get to any conclusions. Let me first drop the definition:

The Gini index or Gini coefficient is a statistical measure of distribution developed by the Italian statistician Corrado Gini in 1912. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population. The coefficient ranges from 0 (or 0%) to 1 (or 100%), with 0 representing perfect equality and 1 representing perfect inequality. Values over 1 are theoretically possible due to negative income or wealth.

Using the Gini coefficient on DGD token is like using the Gini coefficient on TESLA stock. It is not appropriate and is not even likely possible. Typically you would use the Gini coefficient to look at individuals in a society, where you know how many distinct people live in the society and how much they earn in salary or how much they own in property.

Please let me know how I could look at any of these graphs and draw any conclusions.