Whales

Raffaele Ciriello

Chapter 62 in Elgar Encyclopedia of Cryptocurrencies, Blockchain and DLT, 2026, pp 303-306 from Edward Elgar Publishing

Abstract: Whales are the elite class in Web3 and blockchain systems, holding a disproportionately large number of cryptocurrency or governance tokens. This power concentration allows them to sway outcomes in their favor. While whales can bring liquidity and swift decision-making, their power can undermine decentralization. When power is concentrated among a few whales, there is a risk of collusion, eroding trust and the system's resilience. Whales may manipulate markets or prioritize short-term personal gains over the common good. This chapter discusses their benefits and challenges, and explores power-balancing mechanisms to ensure more equitable participation between whales and commoners (“minnows”).

Keywords: Whale; Web3; Blockchain; Cryptocurrency; Decentralization; Governance; Power (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035339952
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