{"id":73245,"date":"2023-01-30T13:06:25","date_gmt":"2023-01-30T11:06:25","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=73245"},"modified":"2025-09-09T13:07:38","modified_gmt":"2025-09-09T10:07:38","slug":"secret-network-validator-to-discontinue-network-support-amid-leadership-dispute","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/secret-network-validator-to-discontinue-network-support-amid-leadership-dispute\/","title":{"rendered":"Secret Network validator to discontinue network support amid leadership dispute."},"content":{"rendered":"<p>A major validator of the Secret Network announced it would discontinue network support. Smart Stake will shut down its nodes on February 21, 2023.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">PSA for <a href=\\\"https:\/\/twitter.com\/SecretNetwork?ref_src=twsrc%5Etfw\\\">@SecretNetwork<\/a> delegates of Smart Stake:<\/p>\n<p>Smart Stake will be shutting down its Secret validator on 21st Feb. Please redelegate to another validator.<\/p>\n<p>Reasons: 1) Complex\/stressful validator operations on <a href=\\\"https:\/\/twitter.com\/search?q=%24SCRT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$SCRT<\/a> 2) Cost\/effort of validator ops 3) recent events<\/p>\n<p>\u2014 Smart Stake (@SmartStake) <a href=\\\"https:\/\/twitter.com\/SmartStake\/status\/1619514284765224960?ref_src=twsrc%5Etfw\\\">January 29, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>The project provides staking services on several platforms and blockchains, including Crypto.com, Polygon, Cosmos, Casper and a number of others.<\/p>\n<p>Among the reasons for disabling the Secret Network nodes at Smart Stake were the complexity and cost of validator operations, as well as \u201crecent events\u201d.<\/p>\n<p>On January 28, SCRT Labs <a href=\"https:\/\/u1f987.com\/en\/news\/secret-network-to-commit-400-million-to-ecosystem-development\">allocated $400 million<\/a> to support the Secret Network ecosystem under the Shockwave initiative.<\/p>\n<p>According to Zyskind, the organisation conducts opaque financial activities accompanied by misallocation of funds. He recalled the incident of the fund losing $250,000 in assets, and pointed to the sale of the native SCRT token \u201cfor a substantial amount of dollars\u201d at the end of 2021. The majority of these proceeds were cashed out by Beyr as dividends, noted the head of SCRT Labs.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThis action was not disclosed in any financial reports provided to the community by the fund, which Thor had repeatedly presented as a nonprofit organisation. In particular, the Q4 2021 report shows an inflow of cash of around $4 million for SF, but does not mention this withdrawal,\u201d said Zyskind.<\/p>\n<\/blockquote>\n<p>He also pointed to the potential for other financial improprieties such as the fund&#8217;s open loan to the bankrupt Alameda Research. He said this information had not been disclosed.<\/p>\n<p>Zyskind proposed rebooting SF as an organisation transparently governed by the community and answerable to it.<\/p>\n<p>Beir, in response, presented his version of events. He stated that in December 2021 he \u201cdiscovered the possibility of an off-exchange sale\u201d of tokens belonging to the fund&#8217;s team. The proceeds of $2.625 million were distributed as dividends.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThis information can be verified in our 2021 tax returns, which had previously been audited by Labs,\u201d he emphasised.<\/p>\n<\/blockquote>\n<p>The internal conflict within the project had a modest impact on the SCRT price \u2014 the token fell 1.6% over the week. The price hovered around $0.78, more than 92% below the October 2021 peak of $10.38. Beir says he sold the coins at $7.<\/p>\n<figure class=\\\"wp-block-image\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/lh5.googleusercontent.com\/lzebjfpzLQojERcPOJAtL78roEP0FN4q8PZZBVzvJnYXULHSL8DC4QiP40A5hob2WG1Ll7Ph0HTTyQPlS1FPBupnIe3t5r1z99vgrc0VoYO5CGSd4phWnVUz1Annq24P2PtieqZ0WBUti-W7JVOTwMHZMghB1xw0SCZfYRkxSP_m2NJr5JBmRT0akVKr6w\\\" alt=\\\"Validator of Secret Network to end network support amid leadership dispute\\\"\/><figcaption>Data: <a href=\\\"https:\/\/www.coingecko.com\/?page=3\\\">CoinGecko<\/a>.<\/figcaption><\/figure>\n<p>In January 2022, SCRT Labs <a href=\"https:\/\/u1f987.com\/en\/news\/secret-network-to-commit-400-million-to-ecosystem-development\">allocated $400 million<\/a> to support the Secret Network ecosystem under the Shockwave initiative.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A major validator of the Secret Network announced it would discontinue network support. Smart Stake will shut down its nodes on February 21, 2023.<\/p>\n","protected":false},"author":1,"featured_media":73246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1289,1947],"class_list":["post-73245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-staking","tag-secret-network"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=73245"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73245\/revisions"}],"predecessor-version":[{"id":73247,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73245\/revisions\/73247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/73246"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=73245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=73245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=73245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}