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- Polygon funded DraftKings and gave it special therapy to trudge a validator node on the community
- Polygon categorically withheld details about the special therapy describing DraftKings as an equal member of its validator pool
- DraftKings alternatively failed in its responsibility and modified into once eliminated from the validator pool
Ethereum scaling layer Polygon funded sports activities-making a bet agency DraftKings to trudge a validator node on the community but indicated that the validator modified into once an equal member among varied validators on the protocol. The secret funding modified into once unearthed by sifting via blockchain recordsdata linked to the protocol’s validator program. Despite getting special therapy, DraftKings didn’t protect its allotment of the deal leading to its disqualification as a validator, raising questions as to why the layer 2 platform would fund the validator.
An Crucial Milestone
Early closing year, the layer 2 platform disclosed that the sports activities-making a bet agency modified into once becoming a member of its pool of community validators, terming it an “crucial […] milestone” since DraftKings modified into once a publicly traded firm.
Polygon alternatively didn’t advise that it modified into once subsidizing DraftKings’ operation costs. In step with an diagnosis by Coindesk, Polygon initially spent over 2.3 million of its worn native token MATIC to fund the validator’s operations.
Other than the undisclosed funding, the validator modified into once furthermore accorded special therapy that allowed it to carry out more rewards via staking.
Despite having an edge over varied validators, it didn’t honor its allotment of the deal. Let’s bid, as an different of taking no longer better than 10% of profits from delegated tokens, it charged 100% price which implies that delegators below no situations got profits.
The Diagram is Uncommon
One such delegator estimated that they misplaced roughly $800 since they didn’t realize that the validator charged 100% on profits earned, with Polygon seemingly good enough with such an diagram.
Tokens staked by DraftKings averaged 65.5 million in 2022 with most of it, 91%, coming from Polygon. Even supposing it’s no longer uncommon for Polygon to delegate its tokens to a validator, the amount given to DraftKings mixed with the special therapy is unheard of within the web3 world.
With the special therapy allowing DraftKings’ earnings to surpass those of varied validators, it’s unclear how the blockchain neighborhood will react to such revelations.
