Sceptre response and remediation status

Due to the current inability to register on the Flare Forum, we are posting Sceptre’s response and remediation status on our blog.

Sceptre response and remediation status

The recent post raises three issues regarding our validator infrastructure. Here is what happened, what has already been done, and the schedule for the remaining steps.

Background. Following the fee structure introduced by FIP.16, Sceptre engaged Rotko Networks as an infrastructure operator to run validator nodes, a decision made to protect depositor yields and operational sustainability. Rotko operates under contract to Sceptre. Sceptre is accountable for its vendors' compliance with Flare governance, and we accept that accountability without qualification.

The FIP.05 issue. A second provider organization with three validator nodes was established. This violates the one-identity limit under FIP.05. That is a compliance failure and it is ours. Every registration was executed through public transactions under identifiable addresses; nothing was concealed and no attempt was made to gain influence or rewards beyond what a single compliant identity would hold. Wind-down began the day the issue was raised.

The provider listing. Although the second identity was not registered, nor is registration mandatory, no material steps were taken to conceal its relationship with Sceptre.

Remediation and wind-down

Surviving identity: 0x7e74D30eF4dd811830118645633a9471f6cc63D3

NodeID-LwpTuHwv3BdGhT1y7RcPY1t4rx494uExo

NodeID-436aEkcwxBo9Z5Ud9Rr7mWEgHnjDu78NR

NodeID-QK6w1Ryp8kfgPBYSyNgHbRTjEhYfLkyBE

NodeID-C3cwgDrgNHRCpqd7GGBZ6qhcBFNmKh3a3 Winding down: 0xb70c6987626A96df66C9068bd10b84Ecb8e949df

NodeID-QcDi1guqnomkd4zX9wZGqPpyUjZVVbY8

NodeID-K8GPcA8hRBYHBUE62TfJXVvc9XfrbiXMq

NodeID-Q3Mp12xwbqm9Byj46mxawQtKaETY1vJs

NodeID-5XbNmzyxPNk3HNJj3iqv6NcBcqr6SzBaB — registered to contract, never staked/active

Ceased on 2026-09-01: all listing and whitelisting activity, all new registrations, and acceptance of any new delegations to the second identity.

What continues, and why: 3 third-party delegators with 575 million FLR are protocol-locked to the second identity's nodes until expiry dates fixed at registration. Their stake cannot move before expiry. Halting the nodes today would not release anyone's funds; it would only forfeit the remaining rewards of locked users. The second identity therefore continues the minimum operations required for those delegators to earn until the final lock expires on 2026-09-16.

Sceptre earns nothing from this window. 100% of provider-side rewards accrued by the second identity from 2026-09-02 onward will be passed to depositors, verifiable at 0x12e605bc104e93B45e1aD99F9e555f659051c2BB.

On 2026-09-16 the second identity will be deregistered and permanently cease operation. Confirmation and TxIDs will be posted in this thread. No replacement address, brand, nominee, or successor arrangement will be created.

Should the Management Group direct an earlier shutdown notwithstanding the locked user stake, Sceptre will comply. We ask only that the decision be made with the figures above in view, since the cost falls on delegators, not on Sceptre.

We will post confirmation of final deregistration with TxIDs once complete. The Management Group can reach us directly at any point for anything further.