{"id":10073,"date":"2023-01-30T05:20:55","date_gmt":"2023-01-30T05:20:55","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=10073"},"modified":"2023-01-30T05:20:55","modified_gmt":"2023-01-30T05:20:55","slug":"validators-shut-down-as-secret-network-struggles-with-leadership","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10073","title":{"rendered":"Validators shut down as Secret Network struggles with leadership"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>SmartStake, a major validator in the Cosmos ecosystem, has announced that it will shut down its nodes following revelations around the Secret Foundation\u2019s founder, Tor Bair, personally taking profits.<\/p>\n<h2>Validator exodus<\/h2>\n<p>The validator cited \u201ccomplex\/stressful validator operations\u2026 cost\/effort of validator ops\u2026 recent events\u201d as the reasons for shutting down its service. Smartstake further stated<\/p>\n<p>\u201cPlease note that the shutdown will be graceful and there will be no slashing for any of the delegates.\u201d<\/p>\n<p>NotionalDAO, another Cosmos validator, has echoed SmartStake\u2019s statement with CEO, Jacob Gadikian, confirming that \u201cNotionalDAO will not be bringing up its node again, in solidarity with SmartStake.\u201d<\/p>\n<h2>Secret leadership conflict<\/h2>\n<p>The allegations against Bair were revealed on Jan. 27 via the foundation\u2019s governance forum. Guy Zyskind, the founder of Secret Labs, posted the statement in which the allegations were made public.<\/p>\n<p>Zyskind disclosed that \u201cSecret Foundation sold a substantial amount of USD worth of SCRT.\u201d In addition, \u201cTor cashed out a significant portion of these proceeds\u2026 as a dividend.\u201d These actions were not disclosed to the community, with roughly $4 million withdrawn in Q4 2021 alone.<\/p>\n<p>The resulting plan proposed by Zyskind was to dissolve the Secret Foundation by returning stakes to the community and reforming a new foundation under new leadership. The new organization will \u201cmaintain a transparent and audited activity\u2026[and]\u2026 it will submit annual funding requests to the chain with a clear budget, milestones, and asks.\u201d<\/p>\n<p>Further, the post ended with Zyskind looking to the future of Secret Network;<\/p>\n<p>\u201cAs a final note, we\u2019d like to say that while we raise and acknowledge these concerns, we are at the same time very optimistic about the future.<\/p>\n<p>The Secret community is well-equipped to address the necessary changes, and this restructuring will help the platform reach new heights as we work towards our Secret 2.0 vision. \u201c<\/p>\n<h2>Bair\u2019s version of events<\/h2>\n<p>Bair also announced the same governance forum stating that the withdrawals were simply part of his vested tokens. The Secret Foundation founder said he began earning a salary in 2021 and vesting \u201ca portion of my tokens\u201d by December.<\/p>\n<p>He continued to confirm that he made an \u201cOTC sale of SCRT tokens,\u201d converting tokens to USD and holding the stablecoins with the foundation to use to pay him a dividend. He further disclosed he had 375,000 SCRT in vested tokens and received a dividend of $2.625 million and claims that.<\/p>\n<p>\u201cThis information is verifiable in our 2021 tax filings, which have been previously reviewed by Labs, and I have previously disclosed this information to them.\u201d<\/p>\n<p>Bair seemingly through his hat in the ring as he disclosed that \u201cthe time has come for change,\u201d yet he has \u201ccommunicated privately and publicly on multiple occasions about my desire to be a part of that change.\u201d<\/p>\n<p>In direct response to allegations made by Zyskind, Bair commented;<\/p>\n<p>\u201cThis allegation is false. We\u2019ve previously published our disclosure on that event, which is available on this forum.\u201d<\/p>\n<p>A debate continued to wage within the comments, and on Twitter, as to whether the community believes there has been malpractice or whether people are more concerned that Bair appeared to have sold the top at over $7.<\/p>\n<p>As of press time, Secret Networks, SCRT is trading at $0.80, almost 90% lower than Bair\u2019s sale price.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/validators-shut-down-as-secret-network-struggles-with-leadership\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SmartStake, a major validator in the Cosmos ecosystem, has announced that it will shut down its nodes following revelations around the Secret Foundation\u2019s founder, Tor Bair, personally taking profits. Validator exodus The validator cited \u201ccomplex\/stressful validator operations\u2026 cost\/effort of validator ops\u2026 recent events\u201d as the reasons for shutting down its service. Smartstake further stated \u201cPlease [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-10073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10073"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10073\/revisions"}],"predecessor-version":[{"id":10075,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10073\/revisions\/10075"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10074"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}