Terra Classic’s core developer, Kim Ed, noted in a recent tweet discussing some matters concerning the Allnodes’ operations as a validator on the blockchain.
He noted backing the Notional Labs developer Jacob Gadikian, saying that he was right to have expressed concern about the operations of the validator. According to Kim, all community members should operate their validator nodes in the ideal situation. The core developer, who doubles as the director of the Terra Grants Foundation, said this while sharing materials that could help users start running a node.
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Contention Points On The Allnodes’ Operations
In addition, Kim points out that Allnodes will increase its commission next week to incentivize users to stake elsewhere and reduce its alarming 40% voting power. According to the TGF director, the validator will increase it by 1% daily till the commission gets to 10%, asserting that he has proposed further increases if the voting power does not significantly decrease.
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However, the update has once been updated by the Allnodes some interval before the core developer, Kim Edward.
Allnodes noted; “Being the top validator is a great responsibility. We are aware of the concerns regarding our voting power. Based on this, we are letting our Terra Classic community know that for decentralization purposes our commission for staking LUNC will increase to 10% after Feb 1, 2023.”
Surprisingly enough, while the comment of the core developer was pleasing to the Terra community, some people still fish out some of the things Kim’s statement lacked. For instance, Gadikian points out that Kim fails to address the issue of Allnodes holding the private keys of validators using its service.
Notably, Tobias Andersen, AKA Zaradar, another Terra Classic core developer, has argued that this is not a problem as there is no economic incentive for the validator to use the keys in its custody. According to Zaradar, if Allnodes acted maliciously, it would tarnish its image and open itself up to lawsuits, which could ruin the business.
Furthermore, PFC Validator points out that it still poses a security risk. The validator argues that an exploit or government directive can shut down the chain due to the centralization of power and data.
According to PFC Validator, the only solution for these validators is to set up new nodes, as the seed phrases can not be changed even if they stop using Allnodes’ service.