{"id":170260,"date":"2023-01-30T07:26:00","date_gmt":"2023-01-30T07:26:00","guid":{"rendered":"https:\/\/precoinnews.com\/?p=170260"},"modified":"2023-01-30T07:26:00","modified_gmt":"2023-01-30T07:26:00","slug":"secret-network-validator-shuts-down-nodes-after-leadership-turmoil","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/secret-network-validator-shuts-down-nodes-after-leadership-turmoil\/","title":{"rendered":"Secret Network validator shuts down nodes after leadership turmoil"},"content":{"rendered":"
A major validator for the privacy smart contract layer-1 blockchain Secret Network has announced that it will no longer provide nodes and support for the network.<\/p>\n
On Jan. 29, major validator Smart Stake announced that it would be shutting down its Secret Network validator nodes on Feb. 21.<\/p>\n
Smart Stake cited \u201ccomplex\/stressful validator operations, cost\/effort of validator ops, and recent events,\u201d as reasons for withdrawing its services.<\/p>\n
Smart Stake is a staking and validator service provider that supports several networks including Crypto.com, Polygon, Cosmos, and until recently Secret Network.<\/p>\n
The move comes amid revelations by Secret Labs founder, Guy Zyskind, regarding the Secret Foundation\u2019s financial transparency. <\/p>\n
On Jan. 28, Zyskind made public allegations that the Foundation and its founder and CEO, Tor Bair, \u201csold a substantial amount of USD worth of SCRT,\u201d \u2014\u00a0 the native token for the Secret Network \u2014 in late 2021. <\/p>\n
\u201cTor cashed out a significant portion of these proceeds,\u201d he alleged.<\/p>\n
Zyskind also mentioned a $4 million inflow for the Foundation in its Q4, 2021 report but no mention of the withdrawal.<\/p>\n
\u201cThis action was not disclosed in any financial reports provided to the community by the Foundation, which was introduced by Tor as a non-profit organization on several occasions.\u201d<\/p><\/blockquote>\n
Bair however provided his version of events on the Secret governance forum on the same day. He stated that the withdrawals were part of his share of vested tokens.<\/p>\n
\u201cInstead of paying out my vested tokens in December 2021, I converted my vested portion of tokens to USD at the OTC price and Secret Foundation distributed these funds as a dividend.\u201d<\/p><\/blockquote>\n
He added that \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
The ongoing internal leadership conflict has rattled at least one network validator provider and the ecosystem\u2019s community.<\/p>\n
Related: <\/em><\/strong>Secret Network resolves network vulnerability following white hat disclosure<\/em><\/strong><\/p>\n
SCRT prices have remained immune from the internal imbroglio, consolidating around the $0.80 level for the past week. However, the token is down 92% from its October 2021 all-time high of $10.38, and way down from Bair\u2019s $7 sale price. <\/p>\n