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June 12, 2022

Controversial behavior by new LUNA validators has been detected

Without informing their delegators, LUNA validators PFC, Lavender.Five, and Red Herring have solicited new validators to increase commission levels from 0% to 20%. Larry, a Delphi Digital developer, claims that LUNA validators can earn up to $192,000 annually after receiving the genesis delegator attribution of 2.5 million LUNA.m

Red Herring highlighted two validators, KingSuper and Autism Staking, whose commission rates have recently increased. On June 4, they tweeted that KingSuper had 0% commission, which attracted a large number of redelegators. They decided a few days ago to increase their commission from 0% to 10% without informing the community or their delegators.

In addition to validators increasing their commission without informing their communities, Red Herring identified three other validators for unethical behavior: Luna Whale, Lunatic Validator, and Long Live Luna. Red Herring described the configuration of each of the three validators and identified similarities:

  • No logo
  • Generic Luna-related names
  • 20% commission
  • Maximum 20% commission change rate
  • No website/social media presence/email contact

They took advantage of the large genesis delegation in order to earn enormous commissions without contributing to the community.

The final wallet was identified as belonging to Kraken, which suggests that the validator is exerting sustained selling pressure on the price of LUNA using tokens arbitrarily allocated to them during the rebirth of LUNA.

King Super refuted the allegations, stating that it “strongly opposed the 0% commission argument and wanted to begin the chain with non-0% floor commission so that there would be no commission wars.” King Super also claimed that it was “only set to 0% to compete with other 0% validators.”

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King Super responded: “I validate other cosmos networks and terra was re-launching, so I decided to try to add value there as well.”

Currently, it is unknown what value King Super has added. He has since recanted some of his statements, stating that perhaps he should have never set it to 20 percent, but it was evident that after the recent LUNA collapse, they were unable to run our validator at 0 percent and it had to be increased.