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SmartStake, a leading validator in the Cosmos ecosystem, announced We are planning to shut down the node after it was discovered that Tor Bair, the founder of Secret Foundation, was personally making a profit.
Validators cited “complex and stressful validator operations… cost/effort of validator operations… recent events” as reasons for shutting down the service.Smart Stake further stated
“Note that the shutdown is done gracefully and none of the representatives are truncated.”
Another Cosmos validator, NotionalDAO, agreed with a statement made by SmartStake CEO Jacob Gadikian, confirming that NotionalDAO, in solidarity with SmartStake, will not launch its node again.
Allegations against Bear clearly January 27, through the Foundation’s Governance Forum. Secret Labs founder Guy Zyskind posted a statement announcing the allegations.
Zyskind revealed that “Secret Foundation has sold a substantial amount of US dollars worth of SCRT.” Additionally, Tor has cashed out a significant portion of these earnings as dividends. These actions were not disclosed to the community, withdrawing about $4 million in Q4 2021 alone .
The resulting plan proposed by Zyskind was to dissolve the Secret Foundation by returning the shares to the community and reforming the new Foundation under new leadership. The new organization will “maintain transparent and audited activities…[and] submit an annual funding request to the chain with a clear budget, milestones and demands. “
Additionally, the post concludes with Zyskind looking to the future of Secret Network.
Lastly, we have expressed and acknowledged these concerns, but are also very optimistic about the future.
The Secret community is well equipped to handle any necessary changes, and this restructuring will help the platform reach new heights as we work towards our Secret 2.0 vision.
Baer also announced on the same governance forum that withdrawals are just part of his vested interests. The secret foundation founder said he will start earning salaries in 2021 and has vested “some of my tokens” by December.
He went on to confirm that he had an OTC sale of SCRT tokens, converted the tokens to USD, and held the stablecoin in the foundation to pay dividends. He further revealed that in vested tokens he holds 375,000 SCRT, receiving and claiming a dividend of $2.625 million.
This information is verifiable for the 2021 tax return and has been previously reviewed by Labs, and I have previously disclosed this information to Labs.
Bear appeared to reveal through his hat in the ring that “it’s time for a change”, but “I have communicated many times both privately and publicly about my desire to be part of that change. It’s here.”
In direct response to Zyskind’s allegations, Bair commented:
This claim is false. Disclosures regarding this event were previously published and are available on this forum.
Debate ensued in the comments and on Twitter as to whether the community believed there had been illegal activity, or whether people were more concerned that Bear apparently sold the top for $7 or more.
At press time, Secret Networks, SCRT is trading at $0.80, nearly 90% below Bair’s selling price.
