tl;dr
Solana Foundation has removed several validator operators from its network delegation group due to their involvement in sandwich attacks against users. The bad actors added modifications to their validators, enabling sandwiching on Solana, a malicious form of Maximal Extractable Value (MEV) attack. ...
Solana Foundation has removed several validator operators from its network delegation group due to their involvement in sandwich attacks against users. The bad actors added modifications to their validators, enabling sandwiching on Solana, a malicious form of Maximal Extractable Value (MEV) attack. This action is part of ongoing enforcement to detect operators participating in mempools allowing sandwich attacks. The move has sparked debate on Solana's decentralization and network security.
While the operators can still engage in activities on the network, they will no longer receive Foundation subsidies through the Delegation Program. This decision has stirred concerns about the network's centralization.
The Solana network struck off several validators from the ecosystem’s delegation program as punishment for violating the Foundation’s best practices. According to reports, the bad actors added mods that enabled sandwiching on its retail users. A “sandwich attack” is a malicious form of Maximal Extractable Value attack where retail traders consistently receive the worst possible prices, while bad actors extract all the profits for themselves. MEV poses significant challenges for blockchain, impacting transaction security, efficiency, and fairness. It can also threaten network security by incentivizing miners or validators to engage in double-spending attacks or transaction censorship.
“Decisions in this matter are final. Enforcement actions are ongoing as we detect operators participating in mempools which allow sandwich attacks,” Tim Garcia, Solana’s validator relations lead, noted. In May, Solana validators’ earnings from MEV surpassed those of the Ethereum blockchain. MEV revenue has been growing rapidly since mid-March, recently accelerating to record highs.
In a follow-up post on X, Mert Mumtaz, co-founder of Solana RPC provider Helius, discussed the implications of the expulsion. According to the post, this action ensures that the foundation does not delegate to malicious validators who conduct sandwich attacks on retail users. Notably, these operators will still be able to engage in their activities on the network, as Solana is a permissionless blockchain. However, they will not enjoy their usual privileges: the Solana Foundation Delegation Program aims to support validators by delegating SOL tokens to them, allowing operation without holding a substantial amount of tokens. Validators are selected based on performance merits.
“Most importantly, these operators can still do whatever they want; it’s a permissionless network—it just won’t be Foundation subsidized,” Mumtaz highlighted.
This resolve did not sit well with community members. It reawakened the argument that SOL blockchain is centralized. This discussion always comes up whenever the network shuts down for one reason or the other. “Solana’s real scaling issue is trying not to expose how centralized it is while trying to protect the network from malicious attacks in the process,” noted Mike Three in a post on X.
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More about Emeren Group Ltd
Stock Analysis Summary
Company: Emeren Group Ltd, ReneSola Ltd
Business: Develops, builds, operates, and sells solar energy projects. Headquartered in Stamford, Connecticut.
Industry: Manufacturing, Semiconductors & Related Devices
Market Cap: 94514000
Dividend Yield: None
P/E Ratio: None
EPS: -0.16
Revenue: 1.918
Net Income: -0.127
Volume: 106582000
50-Day Moving Avg: 4.88
200-Day Moving Avg: 3.42
Relative Strength Index (RSI): 0.148