Dear Cosmos Hub Community, we are posting to bring attention to a serious concern regarding Cosmos Hub ATOM validator, Melea. It has come to our attention that Melea is advertising and claiming to offer a 0% commission rate for delegators. However, this claim appears to be false and in direct contradiction with the Cosmos Hub’s hard-coded minimum commission rate of 5% for all validators.
Key Points of Concern
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Misleading Advertising: Melea is actively promoting itself as a 0% commission validator, which is technically impossible on the Cosmos Hub.
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Lack of Transparency: Despite multiple attempts to verify Melea’s claims, we cannot find any concrete proof of their alleged 0% commission structure. We are unable to locate on-chain data that shows a rebate of any kind or funds sent to delegators from Melea’s validator wallet.
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Potential Harm to Delegators: If Melea is indeed charging the minimum 5% commission while advertising 0%, delegators are being misled and effectively having their rewards reduced without their knowledge or consent.
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Website Issues and Lack of Communication: Several problems with Melea’s website contribute to potential deceptive practices including:
a) Incorrect ATOM commission information
b) Broken contact links
c) Links to inactive social media accounts
d) Ignoring our 3 attempts to contact Melea on X, when Melea has clearly been active on X
These issues significantly hinder delegators’ ability to communicate with their validator. This lack of accessible communication is problematic for several reasons:
d) Delegators cannot easily verify information about their stakes
e) It’s difficult for users to report issues or ask questions
f) Transparency and accountability are reduced
- Violation of Community Trust: Such practices, if confirmed, would represent a significant breach of the trust and integrity that our community holds dear.
- Security, Economic and Governmental Concerns: Melea is the 16th largest Hub validator. If deceptive practices are confirmed:
a) Centralization/Security Risk: Their deceptive practices attract more delegations, further concentrating power and undermining the goal of maintaining a decentralized network
b) Economic Impact:
*Delegators Are Harmed, by receiving lower returns than expected.
*Validator Ecosystem Damage, as the deception creates an unfair advantage over honest validators charging transparent commission rates and losing delegations. This weakens the overall validator ecosystem and may force smaller, honest validators out of the network.
c) Voting Power Concerns, as a dishonest major validator can negatively influence crucial network decisions
Worth noting
Melea has previously engaged in questionable practices on other networks:
- On Solana, Melea has been accused of advertising false APY rates and making misleading claims about returns.
- They have a history of advertising 0% commission while delivering suboptimal validator performance.
Comparison to Best Practices
Reputable validators typically:
- Clearly state their commission rates
- Provide multiple, functional methods of contact
- Maintain active social media presence for community engagement and updates
Melea’s practices seem to deviate significantly from these standards, raising red flags about their honesty, transparency, commitment to their delegators, and commitment to the Cosmos Hub.
The evidence strongly suggests that Melea is engaging in deceptive practices that could harm both individual delegators and the overall health of the Cosmos Hub ecosystem.
We are calling on Melea to:
- Provide clear, verifiable proof of their 0% commission claim on the Cosmos Hub since the v15 software upgrade that hard-coded 5% as minimum validator commission.
- If unable to do so, immediately correct all advertising and communications to reflect the actual commission rate.
- Offer a public explanation to the community regarding this discrepancy.
Furthermore, we invite the broader Cosmos community to:
- Share any information or experiences related to Melea’s commission practices.
- Discuss the implications of such misleading claims on our ecosystem’s reputation and integrity.
- Propose potential penalties and ways to discipline Melea if the validator cannot produce proof of 0% commission.
- Propose potential measures to prevent similar situations in the future.
It is crucial that we address this issue promptly and transparently to maintain the trust and reliability of our validator network. We welcome all constructive input and look forward to a productive discussion.
Thank you for your attention to this critical issue.
Sincerely,
The Atlas Staking Team