Solana Cracks Down on Validators Involved in Price Manipulation Schemes
In a move to protect users, the Solana Foundation has booted a group of validator operators from its delegation program. These operators were caught engaging in “sandwich attacks,” a deceptive practice that exploits users on the network.
How Do Sandwich Attacks Work?
Imagine you’re trying to buy a stock. A malicious actor might spot your transaction and squeeze in two trades of their own – one right before yours (front-running) and another right after (back-running). This drives the price up due to increased demand, and when your trade goes through, you end up paying a higher price. The attacker then sells their shares at the inflated price, pocketing the difference.
Solana Takes Action
The Solana Foundation identified these bad actors through their use of “mempools,” temporary storage areas for pending transactions. Participating in mempools to facilitate sandwich attacks violates the foundation’s rules against validator misconduct.
Consequences for Abusing the System
These rogue validators have been permanently barred from the delegation program, meaning they will no longer receive any Solana tokens (SOL) for their work. Tim Garcia, head of Solana Validator Relations, emphasized the foundation’s zero-tolerance policy for such activities. He made it clear that any validator caught manipulating prices or harming users will be immediately removed from the program and lose their delegation benefits.
The Solana Delegation Program
The delegation program helps validators get started by delegating them SOL tokens. In return, validators play a crucial role in securing the network by verifying transactions and creating new blocks. Ideally, validators are chosen based on their performance and reliability.
Protecting Users is Paramount
The Solana Foundation prioritizes user safety and is committed to preventing fraudulent activities that exploit investors. They are particularly concerned about protecting users from losing money due to price manipulation schemes. This crackdown on sandwich attacks sends a strong message that the Solana network will not tolerate such predatory behavior.
