# The Facts on Marinade: No Losses, Claims Debunked, SAM Improved

> Clarifying misleading claims about Marinade's validator auction. No funds lost, rewards are up, and system improvements are already live — including penalties and smarter rebalancing.

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We’ve caught wind of some rumors swirling, and wanted to set the record straight.

Marinade reports only realized APY, meaning actual returns earned by users, not projections or theoretical yields based on validator bids. At no point were user funds at risk, and no SOL was “siphoned” from stakers. The 37,000 SOL figure cited refers to estimated missed rewards, not real losses. It's also worth noting that 50% of that amount would have gone to the Marinade Treasury, not directly to stakers.

During the mentioned period, Marinade stakers earned approximately:
- 93,000 SOL from validator bids
- 420,000 SOL in inflation rewards
- 80,000 SOL in MEV
- 2,000 SOL in PSR penalties
- 595,000 SOL in total rewards

The inefficiency accounts for roughly 6% of that total. That’s not zero, but not what the headlines make it out to be either.

## Real Results: APY Up, SAM Stronger

Marinade is now delivering the highest realized staking APY on Solana, outperforming 0% commission validators by up to 130 basis points in the last epoch. These are real, on-chain returns that users are earning today.

This improvement comes directly from protocol changes that are already live. The Stake Auction Marketplace is designed to evolve with validator behavior and network conditions. While no live system is perfect on launch, Marinade was built to adapt. And that is exactly what has happened. Marinade will continue publishing data, evolving the system, and enforcing fairness through code. That’s the promise — and it’s being delivered.

## Auction Behavior Has Been Addressed

A small number of validators reduced their bids after receiving stake. That behavior went against the spirit of the auction, and it has now been addressed at the protocol level.

The BidTooLow penalty, introduced on May 5, automatically penalizes validators who sharply reduce their bids after delegation. More than 500 SOL has already been redistributed to Marinade stakers through this mechanism.

This change is live and already shaping validator behavior.

## Rebalancing in Progress

Marinade is actively rebalancing away from validators who do not meet expectations. Those with no bond, who are not covered under the protocol’s Protected Staking Rewards system, are being rotated out first.

This process is done with care. Moving large volumes of stake immediately would reduce net rewards due to the mechanics of redelegation. Instead, the team is managing rebalancing in a targeted and efficient way, minimizing disruption and preserving yield for users.

## Looking Ahead

The focus now is to improve validator set stability and reduce unnecessary stake movement. This helps stakers earn more and gives reliable validators more opportunity.

In progress:
- A validator reputation system to better reward consistent performance
- Auction improvements that give more edge to honest validators
- Continued updates to delegation logic, building on the live penalty system

All of this is being developed with a clear view of how each change impacts the full staking experience.

## Final Note

MEV has long been present on Solana. Marinade did not introduce it. What Marinade did was create a mechanism for stakers to finally share in that value, through open auctions and transparent validator competition.

This is not a flaw in the system. This is the system doing what it was designed to do.

Marinade remains focused on delivering consistent returns, improving delegation mechanics, and protecting stakers through enforceable incentives. No funds were lost. All APY reflects actual earnings. And the auction is already performing better than it was just a few weeks ago.