Final Decision: Solana Removes Validators Accused of Sandwich Attacks

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As a seasoned crypto investor with experience in various blockchain networks, I’m keeping a close eye on the latest developments within the Solana (SOL) ecosystem. The recent news regarding the Solana Foundation penalizing validators involved in sandwich attacks is a significant move that I believe will help improve the overall health of the network.

As a researcher studying the Solana blockchain, I’ve come across an important update: The validators currently operating on the network will no longer receive subsidies from the Solana Foundation nonprofit, according to Mert Mumtaz, Helius cofounder.

Solana Foundation penalized validators involved in sandwich attacks

Beginning June 10, 2024, an undisclosed number of validators have been expelled from the Solana Foundation due to their involvement in sandwich attacks against other SOL accounts on the blockchain. These individuals will no longer receive support from Solana Foundation in the form of SOL injections, according to experienced developer and entrepreneur Mert Mumtaz (@0xMert_).

As a researcher studying the complexities of decentralized finance on Solana, I can’t help but acknowledge the potential for some individuals with extensive knowledge of MEV (Minimum Excellent Value) and the Foundation Delegation program to distort truths in their favor. It’s an unfortunate reality that may lead certain people to present a skewed perspective on these topics to ease their own conscience regarding their investments.— mert | helius | hSOL (@0xMert_) June 10, 2024

Mumtaz revealed that we identified the harmful validators through particular adjustments. Mempool manipulations, which are part of the MEV (Minimum Excellent Validator) strategy, aren’t supported directly on Solana (SOL), since its clients lack mempool access.

As a crypto investor in Solana, I’d like to clarify that when the Solana Foundation removes validators from its supported pool, it doesn’t necessarily mean the end of their validator role or additional penalties. Instead, the foundation is simply ceasing to provide financial backing for these validators.

The Solana Foundation does not support or condone the misuse of its system for ill-gotten gains through retail theft. Protecting honest retail users and safeguarding their investments is a priority.

Mumtaz clarified that the Solana Foundation manages just over one-third of the total validators in the network’s consensus mechanism.

As a Solana analysis specialist, I can tell you that the value of SOL, Solana’s native cryptocurrency, decreased by approximately 0.8% over the past 24 hours. Currently, this digital asset is being traded at around $158.65 on major crypto exchanges.

Solana (SOL) still has “ton of other forms of MEV,” dev says

The actions taken by the Solana Foundation have minimal impact since, similar to other decentralized networks, validators retain the ability to act freely.

As a result, there are still many possibilities for MEV attacks on Solana (SOL), Mumtaz admitted.

MEV, which stands for Maximum Extracted Value or Miner’s Extracted Value, is a strategy that capitalizes on the opportunities presented by on-chain trading by swiftly seizing and exploiting transaction pools.

In the Ethereum (ETH) world, the top MEV (Minimum Value Extraction) buyers are shelling out hundreds of millions in gas fees, a detail we discussed at U.Today before.

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2024-06-10 17:27