Regulation
Cryptocurrencies: Solana takes drastic measures
3h00 ▪ 5 min read ▪ by Mikaia A.
The Solana Foundation did not joke. It has taken sweeping measures against cryptocurrency validator operators involved in so-called “sandwich” attacks against traders. These deceptive practices, rapidly expanding on decentralized networks, have led to the total expulsion of the perpetrators. This initiative, in line with the Foundation’s strict rules, aims to preserve the integrity of Solana’s crypto ecosystem and protect individual investors from any exploitation.
Malicious cryptographic practice exposed
They exploit “sandwich” attacks. the sequence of transactions on the networks Pleases Ethereum and Solana. The principle It’s simple but diabolical: an attacker places an order right before a pending transaction and another right after.
This maneuver allows the manipulation of the price of a crypto asset profit from the difference, guaranteeing retail investors the worst possible price. The benefits fall into the attacker’s pocket.
These cryptographic validatorsidentified for their participation in mempools that facilitate these attacks, they were immediately excluded from the Solana Foundation delegation program.
Tim Garcia, head of validator relations at Solana, announced this decision on Discordreiterating the The Foundation’s zero tolerance policy against any malicious activity.
“Decisions on this matter are final. Enforcement actions continue as we detect operators participating in mempools that enable sandwich attacks,” she said.
Validators caught red-handed in these practices see their participation in the program is suspended indefinitelya decision without appeal.
Outlawed crypto validators
The Solana Foundation is highlighted harmful practices where some validators did not hesitate to modify their configuration to allow these attacks.
Mert Mumtaz, co-founder of Helius, a Solana RPC provider, highlighted the importance of this aspect serious consequences of these actions. In a post on X, he described how some crypto operators have perverted the system to profit personally, at the expense of retail users.
“Some actors have added mods to their validators to allow sandwiching on Solana,” he revealed.
The Solana Foundation, which delegates SOL tokens to help validators get started, finds itself unknowingly supporting scammers.
The reaction was immediate: anyone caught carrying out these activities is immediately excluded from the program any share of the Foundation is removed.
In short, the Foundation does not finance those who steal from retailers through sandwich attacks. However, these crypto validators can continue their schemes on the network, without subsidy from the Foundation.
An incentive for transparency
In response to this situation, Solana decided to do so give 100% of transaction priority fees to crypto validators. This change, voted for by 77%, aims to encourage validators to prioritize network security and functionality.
This is indicated by a report from Stakewiz.com, a group of validators this measure could cause a slight increase in inflation but it is essential to improve transparency.
“Our role here is primarily to help facilitate voting, regardless of the outcome,” the report explains, adding that this measure is a key part of an overhaul of the distribution of rewards.
Debate around this proposal has been intense, with some concerned about the potential impact on the network’s inflation rate. Half of the priority transaction fees have been removedraising fears of “side deals” among validators.
Furthermore, cases of exploitation such as that of the 2Fast botwho earned $1.8 million using the MEV (maximum extractable value).
Despite this, optimistic voices, such as cryptocurrency investor Brian Kelly, suggest that Solana could be the next one to have a spot ETF in the United Statesalthough skepticism towards clear regulation persists.
The Solana Foundation did not hesitate to strike hard to protect the integrity of its crypto network. By eliminating malicious validators and reforming financial incentives, it demonstrates its commitment to ensuring a safe and fair environment for all its users.
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Mikaia A.
The blockchain and cryptocurrency revolution is underway! And on the day when the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for what I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.