MAJOR THREAT TO $LUNC: Allnodes control >35% of voting power

Summary
The $LUNC blockchain is in dire need of decentralization to avoid any malicious governance attacks, secure its future and make it attractive for builders.

Unfortunately, a validator with 35% voting power combined with the Top 3 taking up more than 50% makes this impossible - and has made most developers turn away from the project altogether. If we want success for $LUNC now is our chance to act fast by reducing centralization so that developers have the confidence to build here. Time is running out.

Motivation
Despite being hailed as a “decentralized” or “community” chain, real data reveals that $LUNC is not only the most centralized blockchain in all of Cosmos according to the Nakamoto and Gini coefficients. Ref: Decentralization Metrics - powered by Smart Stake

In actuality, it’s even worse than this. With one single entity possessing an outsize influence at ~35% of voting power, this control threatens to stifle growth and limit opportunities for future advancement through building - something which has been made clear by conversations we’ve had with leading crypto gaming studios.

To ensure innovation continues unabated across the the blockchain and we remain competitive for builders within industry standards, it’s crucial that governance power be released from those currently controlling it; decentralization MUST become paramount once again.

The $LUNC Blockchain has been monopolized.

AllNodes, the primary validator node with ~18% voting power and climbing, has begun offering to run nodes for non-technical community members - including prominent influencers and stakeholders.

Shockingly their total combined votes now exceed 35%, giving them in control of the keys that could allow malicious governance proposals to pass with only 1 or 2 other actors present. It’s clear this network can’t be trusted by either builders, or to protect investors’ hard-earned money if it can fall victim to malicious governance attacks so quickly; there are much more decentralized chains to build on.

Proposal
Let’s make our $LUNC Blockchain desirable to build on! To do this, we must ensure that all validators operated by another company are transparent and clearly labeled. That way everyone can be informed about who controls the network when making decisions.

Furthermore, it is important for people to delegate away from top 3 validators as they currently control a majority stake in the chain.

Additionally, business entities such as Allnodes MUST publicly display detailed information regarding how many nodes they manage with names and full statistics - so users know exactly what’s happening behind-the-scenes at all times.

  1. All validators covertly run by another company MUST state it immediately “ALLNODES: BetterLunc” rather than “BetterLunc” so people can make an informed decision.

  2. People MUST delegate away from the Top 3 validators who currently control >50% of the chain.

  3. Businesses such as Allnodes who rent nodes MUST clearly display the total nodes they control, with names and full statistics.

3 Likes

Or, we just limit voting power.

4 Likes

This protection assumes 1 or few nodes per controlling entity and does not work well when a business’s total voting power is spread across 10+ different nodes

This is a completely stupid proposal. I am against this proposal.

1 Like

The community should never tell a delegator who to delegate with.

If anything, we need to separate the staking process from the governance process… as my last reply explained how.

1 Like

or change the system as I have already mentioned several times. That the votes are unitary and do not depend on the power of anyone or the tokens they have. It seems absurd to me that most blockchains have this structure that only favors the rich.

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@Vendrugo has the right thought process…

1 Like

I think, we need at least have a Foundation, a non profit to make public the faces behind of it. At least the responsible for the Foundation must be someone reputable on crypto and ready to ask hard questions like these.
Terra Luna can’t stay behind Rebels anonymous group for much longer if want to be seen seriously.

3 Likes

This solution solves the problems. I recommend and will support!

  1. The Gold Standard of Stability - #68 by Koch

  2. Terra Logo - #4 by SATI

  3. Community terra (cust) - #27 by Storm

LUNA => LUNO => LOGO
hollow_earth_rotate_500_clr-1696728306

Let’s gather strength and move together !

1 Like
  1. Individuals should always be able to decide who they delegate with. It is nobody’s concern but their own. Some chose because of voting record, some choose because of commission rate, some choose because of APY.
  2. We should limit the voting power of any single validator. I would propose 2% but ideally would like to see it at 1% max.
  3. We should limit the number of validators any single person or organization can operate. Ideally it would be 1.

With the above, people are free to make decisions but we are also free from any single couple of validators being able to completely control the future.

2 Likes

A well founded prop advancing much needed reform…

Interesting point. Not that this is happening at the moment. But since on Tendermint 1/3 voting power allow transaction censorship and slashing prevention of the culprits :frowning: .

Definitely would love to see increased decentralisation.

You have been drinking mate?