Ethos Network Reputation Slash Hits Waleswoosh Over $TROVE Promo

Background: What Is Ethos Network and Why Reputation Slashing Matters

Ethos Network is a reputation layer built on Ethereum that allows users to stake credibility on individuals, projects, and validators. Instead of passive social trust, Ethos introduces economic consequences for poor endorsements through a system of slashes and rewards.

Users can:

• Stake ETH-backed credibility on influencers or builders
• Earn rewards for accurate assessments
• Lose reputation when backing bad actors

The Ethos Network Reputation Slash mechanism is designed to discourage undisclosed promotions, paid shilling, and repeated misinformation.

How the Ethos Network Reputation Slash Process Works

The slash follows a transparent on-chain process:

1. A proposal is submitted with evidence
2. Users vote using staked ETH-backed reputation
3. If approved, slashes are executed automatically
4. Delegators can flip their vote to reduce losses

This design ensures the Ethos Network Reputation Slash is peer-driven, not arbitrarily enforced by a centralized authority.

Ethos Network Reputation Slash Targets Waleswoosh

The current Ethos Network Reputation Slash was proposed by @DidiTrading and targets influencer @waleswoosh, citing an undisclosed $8,000 USDC payment received for promoting the $TROVE project.

Key details of the slash include:

• 16,000 credibility score at risk
• 302 delegators exposed via validator participation
• 792 users impacted, each risking ~20 credibility points
• 3 million XP associated with the validator under review

Ethos confirmed this is its largest-ever slash event, both by scale and user impact.

The $TROVE Fallout That Amplified the Slash

The Ethos Network Reputation Slash gained traction due to its connection to Trove Markets, a project accused of ICO manipulation, undisclosed paid shilling, asset dumping, and a post-raise chain pivot.

Trove Markets raised over $11.5 million before pivoting from Hyperliquid to Solana, triggering widespread scam allegations. Several influencers promoted the ICO without disclosure, intensifying scrutiny across Crypto Twitter.

In response, Waleswoosh admitted to receiving payment but claimed it was not explicitly for ICO endorsement, stating he “should have disclosed it” and accepted the slash as justified.