Solana Foundation Expels Validators for Involvement in Sandwich Attacks; Retail Users Protected
Summary:
The Solana Foundation has expelled several validators from its Delegation Program due to their involvement in sandwich attacks, malicious activities aimed at traders. This decision comes in line with rules disallowing such practices. The Delegation Program enables users to assign staking rights and the expelled validators won't be receiving any new delegations. The Foundation is committed to protecting retail users from fraudulent operations such as these and preventing exploitation.
The Solana Foundation has expelled a set of validator operators from its delegation scheme due to their association with sandwich attacks aimed at traders. The validators were discovered through their involvement in memepools. In a typical sandwich attack, a dishonest trader selects a network, like Ethereum, searches for a hanging transaction and places an order before and immediately after the search. The attacker manipulates the asset's price by wedging the first pending transaction between a front-running and back-running order, both happening at the same time, profiting from the price difference. Traders are often left with the worst possible price, while the attacker benefits significantly.
The Solana Foundation rules disallow engagement in malicious activities such as sandwich attacks by validators. Hence, these culpable validators will not receive any delegation tasks henceforth. The lead for Solana validator relations, Tim Garcia declared this on Discord. He indicated their zero-tolerance stance towards malicious activities like sandwich attacks that damage the Solana user experience through the delegation program. Perpetrators will face expulsion, and their stakes will be promptly and permanently removed.
The Delegation Program was devised by the Solana Foundation to alleviate validators from the need to possess many tokens by giving them Solana (SOL) tokens. It lets users delegate staking rights to a validator or stake pool. The validators then shoulder the responsibility of creating blocks and verifying transactions, being chosen based on their performance.
Unauthorized usage of third-party meme pools to defraud retail users is intolerable. Mert Mumtaz, co-founder of Solana RPC provider Helius, expounded on the issues resulting from relying on operators to turn a profit from retail users. He disclosed that certain operators had modified their validators to allow sandwiching on Solana. He further noted that the Solana Foundation gives SOL to validators to assist them in initiating their operations. The Foundation remains resolute in its mission to prevent retail users from falling prey to manipulative operators. The Foundation stresses on the safeguarding of users from such deceptive practices that jeopardize their investments.
Published At
6/10/2024 2:41:23 PM
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