Andre Cronje: DeFi’s decentralization in question

Andre Cronje says most DeFi protocols have lost decentralization, adopting centralized controls, which erodes user trust and raises regulatory concerns.

Andre Cronje, founder of Flying Tulip and creator of Fantom Network, argues that most current decentralized finance (DeFi) protocols have strayed from their original principles of decentralization and immutability. He claims these platforms have evolved into a new model he calls “onchain finance.” Cronje emphasizes that true DeFi should be decentralized, immutable, and free from intermediaries—standards he believes almost no protocol meets today. He notes that features like circuit breakers and emergency controls, while designed for user protection, have introduced centralized elements into DeFi systems. This shift has contributed to a decline in total value locked (TVL) in DeFi, dropping from $167 billion in October 2025 to $75 billion in June 2026, reflecting waning user trust and concerns over platform autonomy. The European Central Bank has also questioned the decentralization of major platforms such as Aave, MakerDAO, and Uniswap, highlighting that over 80% of governance tokens are held by the top 100 holders, casting doubt on their decentralized status.