Thread by @R3d_Herring

1/12
Holy! I just discovered another crazy thing happening with the some of the active validators.

I started by looking at the validators charging 20% commission which is pretty high considering that most charges 5-10%.

Something then caught my attention...

Thread 🧵

2/12
Both Flipside and Angel Protocol have legitimate reasons to charge higher commissions (bounties and charities).

I have written about KingSuper and Autism Staking -

https://twitter.com/R3d_Herring/status/1533105715044229121?s=20&t=RW4ZbVkjAdC6nmbIDXoIFw

Now let's focus on Luna Whale, Lunatic Validator and Long Live Luna.

3/12
All 3 validators have almost identical setup/configurations:
- No logo
- Generic Luna related names
- 20% commission
- Max commission change rate of 20%
- No website/social media presence/email contact

I started to suspect that someone might be exploiting the system...

4/12
So I started looking into their wallets:
Luna Whale: terra1znh6eq79l3z5l7ctnrjr2d8ksaght25lknkx0a
Lunatic Validator: terra1s0wcr80ud0xd5zwkwg7wkue4wegmtae2tl2dce
Long Live Luna:
terra1arm3fzjp7qv8e5gyhraeykcpjte6wh562t0y4d

Guess what? They have the same behaviors...

5/12
Whenever they collect their validator commission, they would send it to the same address - terra1hm4w8qp8e440psd24x6q709hhf2yvspt3q638z

This is nothing but a "pass-through" address probably to obfuscate the money/LUNA flow - finder.terra.money/mainnet/addres…

6/12
This is the crazy part. After passing through the above wallet, they arrive at this (probably new) wallet with > 3 million LUNA - terra1kl6ekcnnseaz2cfuwzmuzwgchku4suwjyh444u

Note that the LUNA are unvested, there is no option to expand and see vesting schedule.

7/12
Initially, I suspected it to be a bridge or exchange but checking various data sources (Terra Engineer and Flipside) did not support the thesis. In addition, the LUNA that was sent to the above address did not contain any memo.

8/12
This is the part where I could not figure out what's happening. From this address, LUNA is being sent to many many different addresses and I am lost and sleepy. Feel free to take a look at them yourself :)

9/12
I guess the moral of the story/thread is that there are 3 validators being controlled by a single person/company/entity. They exploited the large genesis delegation to earn huge commission without contributing to the community.

10/12
Using larry's computation/assumption:
(3947790 + 2910970 + 1860690) * $3.5 * 0.2 * 0.1 / 12 = $50,863 a month

Once again, I recommend #LUNAtics to redelegate away from these validators:
- KingSuper
- Autism Staking
- Luna Whale
- Lunatic Validator
- Long Live Luna

11/12
Consider the community validator that contributes in various ways -

https://twitter.com/R3d_Herring/status/1533105728134647808?s=20&t=RW4ZbVkjAdC6nmbIDXoIFw

12/12
Please do check out our pinned tweet for our stories/plans -

https://twitter.com/R3d_Herring/status/1531098724515971072?s=20&t=forH8d_RUiBIXBy6mtRIwQ

We are also running an ongoing giveaway🎉 hoping to get into the active set -

https://twitter.com/R3d_Herring/status/1531603647821250560?s=20&t=P_-ECf1nk6GPl09np7HHGA

To delegate/redelegate, simply head over to this link - station.terra.money/validator/terr…

Thank you everyone that staked/redelegated to us. It seems we just got into the active set again 🥳 (not at the expense of someone else getting jailed 😂) Hopefully, we will stay inside for a longer period this time round!