Secret Network Validator Closes Nodes Following Leadership Turmoil
A significant validator for the layer-one blockchain, Secret Network, which focuses on privacy-oriented smart contracts, has declared that it will no longer offer nodes or extend support to the network.
Smart Stake To Shut Down Nodes On February 21st
The top validator, Smart Stake, has announced that it would close down its services for Secret Network on February 21st. Smart Stake decided to withdraw its services due to various factors.
Such factors include the complicated and demanding nature of validator operations, the high cost and effort required to perform these operations, and recent industry occurrences. Meanwhile, Smart Stake is a platform that provides validator and staking services for multiple networks such as Cosmos, Crypto.com, Secret Network, and Polygon.
Smart Stake’s move comes after a huge revelation by Guy Zyskind, the founder of Secret Labs. Zyskind disclosed that there are issues of financial transparency with the Secret Foundation.
On January 28th, Zyskind accused the Foundation and Tor Bair, the CEO and founder of the Foundation, of selling huge amounts of SCRT (the Secret Network’s native token) in 2021. “Tor sold a substantial amount of the profits,” he argued.
In addition, Zyskind mentioned in the Foundation’s Q4 2021 report that there was an inflow of $4 million. Yet, he did not talk about any withdrawal. Zyskind said:
“The Foundation, which Tor introduced as a non-profit on numerous occasions, failed to disclose this action in any financial reports given to the community.”
Blair Defends Himself
However, on January 29th, Bair offered his account of the situation on the Secret governance forum. According to him, the withdrawals were from the vested tokens given to him.
“I opted to convert my vested tokens to USD using OTC price instead of receiving them in December 2021. The Secret Foundation had given me the funds as a dividend,” Bair stated.
Furthermore, he stated that the information he provided could be verified in the 2021 tax filings. According to him, Secret Labs have already reviewed the filings, and he previously informed them about the tokens and the withdrawal.
The current internal leadership dispute has disturbed the community and caused one network validator provider to shut down support for the platform. Meanwhile, Secret Network solved a vulnerability issue on its platform after a disclosure from a white-hat research group in 2022.
In addition, he assured users that their funds were safe and secure.
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