This is a phrase Jon Rice has used when writing about the Koinos Federation. These are $5 words that work together to make a $100 concept. Let me explain.
The natural state of society is decentralized; however, wealth and power naturally centralize society over time. That's why laws that limit the scope of centralized power are so important.
Centralization isn't all bad, though. The right amount of centralization is highly desirable. Without it, there's no leadership unifying the resources and efforts available to society.
This leadership can arise from a democratic free market or from a planned, all-powerful state.
Dictatorships and most blockchains choose the latter approach. Tokens are allocated to the team, investors, and other insiders. This results in centralized control by default. It has to be given up intentionally by those in control.
Koinos is a direct democracy. It is decentralized by default thanks to the fair token launch. But this means that the benefits of centralization are the main things the blockchain lacks.
Fortunately, it's easier to add centralized power than it is to take it away.
Pragmatic decentralization means taking a realistic look at the network. Koinos has a very strong, decentralized foundation, but it needs a carefully applied, appropriately limited amount of centralization to be successful in the near term.
I'm generally a proponent of limited government on and off chain, but I do believe in this vision that Jon has put forward. No government is unrealistic. Limited government is pragmatic.
P.S. I believe token allocations can be done well, but the vast majority result in harmful centralization.