New LUNA validator is accused of arbitrarily increasing commission fees by 20%

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2022-06-15 22:51:45

Validators LUNA PFC, Lavender.Five and Red Herring have launched a condemnation of new validators that increase their commissions from 0% to 20% but fail to notify their delegators.

New LUNA validator is accused of arbitrarily increasing commission fees by 20%

According to a developer of Delphi Digital, the LUNA validator can generate $192,000 annually when it is allocated 2.5 million LUNA by the proxy. Red Herring pointed out that KingSuper and Autism Staking validators recently increased their commissions.

“Initially, KingSuper’s commission was only 0%, thanks to that, a lot of people noticed them. Then they increased the commission to 10% without notifying the community or the principal”

The increase in commissions helped KingSuper increase profits to 63,434 USD per month. In addition to KingSuper, Red Herring also mentioned Autism Staking.

“Similar to Autism Staking, they raised the commission from 10% to 20% without notifying the community/authorizers (no website or chat platform or social media). Just a protonmail address”

In addition to increasing commissions without prior notice to the principals, Red Herring also claimed that “Luna Whale, Long Live Luna and Lunatic Validator” engaged in unethical practices. validators have similarities such as:

  • No logos
  • Commission at 20%
  • The maximum commission change rate is 20%
  • Names of Luna-related validators
  • No social network/website/email contact

The on-chain wallet data for each validator shows that they all transfer their commissions to a wallet named “terra1hm4w” and then forward to “terra1kl6e.” The LUNA owned by these validators has no schedule. As such, the developer leveraged the Genesis distribution of the LUNA token to create multiple validators.

“They take advantage of large genesis distributions to collect huge commissions and do not need to contribute to the community.”

The wallet ultimately belongs to Kraken, as such, validators are creating sequential selling pressure on the price of LUNA through tokens randomly distributed to them during LUNA’s incarnation.

KingSuper has countered the allegations against them, “disagreeing with the 0% commission argument and wants to start the chain at a non-0% level, to avoid commission wars.” KingSuper also announced “only set commission to 0% to compete with other 0% validators”:

“We confirm the cosmoss network and terra is starting the project again so we will try to add new value to the network”

As of now, KingSuper has not taken any new action after stating “we probably shouldn’t have a 20% commission, but after the recent LUNA incident, we are no longer able to maintain it. 0%, so we had to increase the commission to 20%”

“We increased it to 10% at the request of “CapriciousSage / Ceres Ventures. We increased the commission to 20% just to compensate for what we have suffered in the past”

Another validator, PFC, also participated in Luna Classic and voted to proceed with a chain restart, sharing:

“It has nothing to do with the commission fees that KingSuper has raised. The problem is that this validator has increased without notifying the authorizer or the public.”

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