# Gini coefficient

**Published by:** [ldgr](https://paragraph.com/@ldgr/)
**Published on:** 2022-11-01
**URL:** https://paragraph.com/@ldgr/gini-coefficient

## Content

It's actually quite tame, I promise!So, what's wrong with it? Well, there are lots of things wrong with it, and people have written lots of articles about various problems with the Gini coefficient. In this article, I will focus on one specific problem that I think is under-discussed about the Gini as a whole, but that has particular relevance to analyzing inequality in internet communities such as blockchains. The Gini coefficient combines together into a single inequality index two problems that actually look quite different: suffering due to lack of resources and concentration of power.To understand the difference between the two problems more clearly, let's look at two dystopias:Dystopia A: half the population equally shares all the resources, everyone else has noneDystopia B: one person has half of all the resources, everyone else equally shares the remaining half

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