MOON validators PFC, Lavender.Five and Red Herring have called for new validators to raise their fee rate from 0% to 20% without informing their delegates. According to Larry a developer at Delphi Digital, LUNA validators can earn up to $192,000 per year after earning a $2.5 million LUNA genesis delegate attribution.
Commission increase without notice
red herring dedicated two validators, KingSuper and Autism Staking, have recently increased their fees. On June 4, they tweeted:
“KingSuper had a 0% commission and that attracted a lot of people who delegated to them. A few days ago they decided to increase their commission from 0% to 10% without informing the community/their delegates.”
“Similarly, they increased their commission from 10% to 20% without informing the community/their delegates (no website or chat/social media platform). Just a protonmail email address.”
Multiple validator nodes
In addition to validators increasing fees without informing their communities, Red Herring also identified three other validators, “Luna Whale, Lunatic Validator and Long Live Luna”, for unethical behavior. Red Herring went into detail about setting up each of the three validators and noticed similarities:
– No logo
– Common names associated with the Moon
– 20% commission
– Maximum fee change rate 20%
– No website / social media presence / email contact
Red Herring then checked the on-chain data for each of the validators’ wallets. Each of the wallets transferred their fees to the same “terra1hm4w” wallet and then to the last “terra1kl6e” wallet after collecting the tokens. The LUNA that these validators own does not have any vesting schedule. Validators have taken advantage of LUNA’s genesis distribution to set up multiple validators. As Red Herring explained,
“They used the large genesis delegation to earn huge commissions without contributing to the community.”
The last wallet was identified as belonging to krakenassuming that the validator puts sustained selling pressure on the price of LUNA with tokens delegated to them randomly during the LUNA revival.
King Super denied the accusations statement he “strongly objected to the 0% fee argument and wanted to start the chain with a non-0% fee minimum so that there would be no fee wars.” King Super also stated that it is “only set to 0% to compete with other 0% validators”. Cryptooshala reached out to King Super for comment and received the following response: “I’m checking other space networks and Terra is restarting, so I thought I’d try adding some value there too.”
It is currently unknown how much value King Super added. He has since reverted to some statements saying “Maybe I should never have set it to 20%, but one thing was clear: after the recent LUNA crash, we couldn’t run our validator at 0% and it needed to be increased.” . “. Further, he continued,
“We increased it to 10% for the request “CapriciousSage | Ceres Ventures” because it skewed the vote… The recent increase to 20% was just to make up for the losses we incurred.”
In response, another validator, PFC, who also participated in the Luna Classic and voted to restart the network, said: Cryptooshala:
“It’s not about what commission he takes
The thing is, he changed it without notice and blocked all the people who delegated, waiting for null and couldn’t switch.
It saddens me that he didn’t realize it, and after being told about it and the damage didn’t change him back.”
Credit : cryptoslate.com