Posted 11/30/2023, 12:00:00 PM
DraftKings Received Millions in Undisclosed Payments to Run Polygon Validator, Provided Diminished Returns to Delegators
- Polygon paid DraftKings millions in MATIC tokens to run a validator node, but did not disclose this financial arrangement publicly
- DraftKings validator charged 100% commission, meaning delegators earned no rewards, only DraftKings benefited
- Polygon delegated 60M MATIC worth millions to DraftKings, accounting for most of its staking power and rewards
- DraftKings validator performance declined and was removed from network in October 2023
- Financial setup gave DraftKings outsized compensation for "active role in governance," which it failed to maintain