Unethical practices lead to permanent bans as Solana aims to protect retail users and uphold network integrity.
The Solana Foundation has taken decisive action against unethical practices within its network by expelling several validators from its delegation program. These validators were found to be participating in "sandwich attacks," a type of malicious activity that manipulates transaction prices for personal gain.
Sandwich attacks are a form of front-running exploit. In these attacks, an attacker places two transactions around a victim's transaction. The goal is to manipulate the price of the asset being traded, allowing the attacker to profit from the difference. This is achieved by using private mempools, which are essentially pools of pending transactions that are not yet confirmed by the blockchain.
For example, if a victim places a transaction to buy a certain amount of cryptocurrency, the attacker will place a buy order just before the victim's transaction and a sell order immediately after. This sequence of transactions inflates the price temporarily, allowing the attacker to sell at a higher price and pocket the difference.
The Solana Foundation has made it clear that such unethical behavior will not be tolerated. Validators found to be engaging in sandwich attacks will be permanently banned from receiving delegated stakes from the foundation. This move is aimed at protecting retail users from exploitation and maintaining high ethical standards within the network.
Mert Mumtaz, co-founder of Solana RPC provider Helius, explained that while these validators can still operate on the Solana network due to its permissionless nature, they will no longer receive subsidies in the form of SOL delegated to them by the foundation. This effectively removes any financial incentives for these validators to continue their malicious activities.
This action by the Solana Foundation comes amid growing concerns within the crypto community about the impact of sandwich attacks on retail investors. These attacks can lead to significant financial losses for unsuspecting users, undermining trust in the network.
By taking a firm stance against such practices, the Solana Foundation aims to foster a safer and more trustworthy environment for all participants. This move also serves as a warning to other validators that unethical behavior will have serious consequences.
