LUNA Validator PFC, Lavender.Five, and Red Herring have called a new validator to raise the fee level from 0% to 20% without notifying the delegator.according to Rally, The Delphi Digital developer, LUNA Validator, can earn up to $ 192,000 a year after receiving the attribution of 2.5 million LUNA Genesis Deligators.
Increase commissions without notice
Red herring Highlighting Two validators, King Super and Autism Staking, who recently increased their fees. On June 4th, they tweeted.
“King Super’s commission was 0%, attracting and re-delegating a lot of people. A few days ago, they decided to increase their commission from 0% to 10% without notifying the community / their representatives. I decided.”
King Super returns start at $ 0 due to increased commissions $ 63,434 Moon.In addition, the next red herring Spotlight Autism staking:
“Similarly, they increased their fees from 10% to 20% (without websites or chat / social media platforms) without notifying the community / their representatives. Just a protonmail email address. “
Multiple validator nodes
Apart from validators increasing fees without notifying the community, Red Herring also Identified The other three validators, “Luna Whale, Lunatic Validator, and Long Live Luna,” show unethical behavior. Red Herring elaborated on the setup of each of the three validators and noticed similarities.
– No logo
– Common Luna related names
– 20% commission
– Maximum fee change rate 20%
– Website / social media presence / no email contact
Next, Red Herring checked the on-chain data in each validator’s wallet. After collecting the tokens, each wallet transferred the commission to the same wallet “terra1hm4w” and to the last wallet “terra1kl6e”. The LUNA held by these validators does not have a vesting schedule. The validator used Genesis distribution of LUNA tokens to set up multiple validators. As Red Herring explained,
“They used a large Genesis delegation to earn huge fees without contributing to the community.”
The final wallet was identified as belonging to KrakenValidator suggests that it is exerting sustained selling pressure on LUNA prices through randomly delegated tokens during LUNA regeneration.
Validator responds
King Super refuted the claim State “There was no commission war because we strongly opposed the 0% commission debate and wanted to start the chain with floor commissions other than 0%.” King Super also “competes with other 0% validators.” It’s just set to 0% because of that. ” CryptoSlate I asked King Super for comment and received the following response: “We tested other cosmos networks and Terra restarted, so we wanted to add some value to it as well.”
Currently, it is unknown what kind of added value King Super is adding. Since then, he has looked back on several statements. “Maybe I shouldn’t have set it to 20%, but after the recent LUNA collapse, it was clear that I wasn’t in a position to run the validator at 0% and needed to increase it.” In addition, he continued,
Increased to 10% at the request of Capricious Sage | because Ceres Ventures led to a bias in voting rights … The recent increase to 20% is just to cover the losses we suffered. It was a thing. “
In response, Luna Classic and another validator, PFC, who was also involved in the vote to reopen the chain, said: CryptoSlate:
“It’s not about the fees he charges
It means he couldn’t change it without notice and lock and switch all the people he delegated in the hope of zero.
The fact that he didn’t notice this made me sad, and after he was told about it, and the damage didn’t undo it. “
