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Junonauts Assemble!
Today I want to talk about what has been the sleeping concern, the only imperfect subject when it comes to $JUNO
Today I want to talk about "them" who unethically gamed the @JunoNetwork genesis stakedrop.
Lore:
@JunoNetwork has been launched with full intention and plan to be completely community driven.
Hence $JUNO was distributed to $ATOM stakers via a 1:1 stakedrop with a hard whalecap of 50K as the community agreed to ensure fair distribution across the network.
Everything worked as planned, the community celebrated one of the most exciting launches within the ecosystem.
Until the address juno1aeh8gqu9wr4u8ev6edlgfq03rcy6v5twfn0ja8 appeared with 50 transactions each receiving 50K $JUNO ending up with a total of 2.5M $JUNO.
They, who have access to that address, certainly knew what they were doing, as they only merged their gamed stakedrop after $JUNO was listed on @OsmosisZone so we couldn't simply restart the chain.
The community discussed and most expressed their valid worry.
A proposal was submitted on the 7th of October, 2021 offering to reduce 90% of the address balance to avoid centralization and dumping the gamed funds.
They reached out to @wolfcontract claiming they are a fund and they want to support the network.
twitter.com/wolfcontract/status/1448222200708927495
A fund managing multiple accounts, which had 50 addresses with 50K $ATOM each, and combined all the gamed $JUNO in one address?
Very interesting.
While we couldn't be so sure of what they were claiming, the $JUNO community did the right thing and gave them the benefit of the doubt.
Proposal #4 was rejected with a close 56.4%
They were allowed to prove their transparency through their actions on the network.
$JUNO community was slightly relieved about the address being "friendly" to the network and neglected the worry.
Days passed while @JunoNetwork has been on impressive development pace, which kept everyone happily busy.
The address was less observed.
They delegated their $JUNO which is a double edged sword, not being certain of their intentions, as they can end up with a lot more $JUNO with the chance that the intent is malicious.
Actions speak louder than words.
Now let's see the transactions over the past 5 months.
It seems that they used a strategy to delegate half the rewards and IBC transfer the other half to Osmosis.
In the first three months, they sent 250K $JUNO from rewards to :-
mintscan.io/juno/account/juno1q5nxetqdu05qnyphwx0zwm8ea2eghgj92ta2dw
mintscan.io/juno/account/juno16nwhaecstfuqyczc2mwv346ly2vr0nktrxkskl
mintscan.io/juno/account/juno17uryv6yrtt6r76qt8fa4zhak3hw8wjyxxl8qqh
mintscan.io/juno/account/juno1sqn6cld9klz3k5st6ztm2zjcmhasnh6xymvkzy
The $JUNO sent to these addresses was IBC transferred to @OsmosisZone and the $JUNO was swapped in large amounts in single transactions (30-60K $JUNO each) which causes a lot of slippage and price change.
It does not look like they care. Not so friendly.
Swap Txs of rewards by staking gamed funds :-
mintscan.io/osmosis/txs/D4D395B8A11F441F1A8535D27F4E20FD7F7B4844BAB5299867E20E8D576D23A5
mintscan.io/osmosis/txs/247EA70CAD42AB350C520E45024F6B058FA52CB48472838DE1B4625A30998D27
mintscan.io/osmosis/txs/60491EA1F0399F7AEC6A91456F88F851D10682F7C5450F5909A4868738B33E10
30K-60K $JUNO in single swaps.
Then instead of sending $JUNO to alt addresses before swapping, they executed IBC transfers on their address directly.
They have IBC transferred a total of more than 450K $JUNO only from the undeserved staking rewards.
Consistently dumping every 1-2 days significant amounts of $JUNO obtained through staking unethically obtained large sum of $JUNO.
I dont think they were honest when they claimed they are a "fund" and intending to be "friendly" and the severity of the facts is clear.
They became braver with their actions and decided to do their first undelegation to start selling 279K from the gamed $JUNO.
They sold 20K and delegated the remaining back as they were too observed.
Lets not beat around the bush, I think we all can tell where this is going.
Undelegation Txs of gamed funds :-
mintscan.io/juno/txs/2AD6BC0E955F743E61C5A06F4942FBF6C240D61CCE03D49FEB46D7648DEB1FA5
mintscan.io/juno/txs/5286351CCF46D6ECE5CDD4747244468412155C17A452BEADF6BBD5D3E0C5440D
mintscan.io/juno/txs/6BDDE7B5264F7DA8EFDFD71A62D963E17BAB9F4D1A073077A1E017DBF534E5AE
mintscan.io/juno/txs/2EB71CB7270552185F4AF139258E395538DF6E9B5E5BC0CB09AB41F85B681A39
mintscan.io/juno/txs/3352C76C75A88E8170D2C1A398CB913BDDA9E85E11E972BDF1D1B4B36BD5A239
mintscan.io/juno/txs/7F66AB0D54D7D53D50415B48E892C4520AF2DF464C3CBF0A9642540CBEE344D6
Therefore, I call the $JUNO community to take a decision fairly through our decentralized governance.
Where a proposal is planned to be submitted to conclude the action to be taken.
Governance has full authority and can not be overruled.
The time to act is now.
Justifications :-
1. They unethically bypassed the stakedrop rules.
2. Danger to on-chain governance centralization with 9.6% of gamed voting power.
3. 9.6% of total staking rewards go to them by staking gamed funds, which from they sell ~10,000 $JUNO on daily basis.
4. They have started undelegating and selling gamed funds in significant amounts.
5. Gamed funds alone can single handedly wipe out the entire DEX liquidity in < 10 mins.
6. The community's valid fear and worry, due to the undelegation, is unhealthy to see on our network.
Note that this is most likely the last chance to address this situation before it's too late.
Now let me preemptively respond to arguments that might rise regarding dealing with an address which unethically gamed a very significant amount of funds.
"Isn't it against blockchain ethics?"
Short answer: No
Community driven governance can not be overruled. The community governs the network completely as they see fit. It's not unethical to stand against what is unethical, this is the power of decentralized governance.
"Does this make large investors hesitant to board the ecosystem?"
Short answer: No
The main issue with the address is that they gamed the stakedrop. Instead of receiving 50K $JUNO, they received 2.5M $JUNO.
The community would have no issue if they have bought their $JUNO.
Dear our validators, who take an important role in governance and carry the responsibility of active participation within the community, the address might be delegating a significant amount to you but please ensure your vote stands behind what is healthy for the network.
TL;DR: Single entity unethically gamed the stakedrop to get 2.5M $JUNO instead of 50K. Staked it and consistently selling half of the rewards. Lately, they undelegated 279K $JUNO and becoming braver with the robbery. They claim to be friendly but I claim they are full of shit.
Don't let someone who is confused or with uncertain intentions frame this as FUD to you.
In fact, this will be one of the most bullish decisions to be taken by the community to address this unethical matter and determine what's healthy for the network.
Through fair governance.
By solving this on our network, it is ensured to get rid of any worry regarding this ticking bomb and the worse version of VC that unethically latched onto our chain.
This is the only dent which forced itself on our network.
Spread the word and get ready to vote.
Proposal #16