2024-05-06
The recent post on X by the Sui Network aims to clear up any misconceptions surrounding its token supply. The layer-1 blockchain has responded to criticism regarding the tokenomics of its SUI token, emphasizing the robustness of its tokenomics and the reliance on reputable third parties for token storage.
The tokens are released according to a predetermined schedule and are publicly accessible. Importantly, the founders have no control over the treasury or the tokens allocated to investors, including the community reserve.
The Sui Foundation manages the primary wallet that holds locked tokens, which are released under specific conditions.
These token releases support various projects, including the development of the Move programming language, network security enhancements, hackathons, and developer grants. Staking rewards in the Sui network consist of stake derivatives and network commissions, all of which are returned to the community.
However, Justin Bons from Cyber Capital has expressed concerns about the Sui team's token holdings. Bons suggests that the founders may possess a significant portion of staked tokens, posing a risk of centralization. He calls for greater transparency and accountability from Sui.
In response, Sui disputes Bons' claims and asserts that it has disclosed the management of all tokens, distributed or not, in compliance with legal and regulatory standards overseen by reputable custodial service providers such as BitGo, Anchorage, and Coinbase Prime.
Bons challenges Sui's transparency claims by urging them to demonstrate that the founders cannot move or access the tokens.
He argues that misrepresenting the token status undermines transparency and emphasizes that true transparency requires clear evidence that the allocated tokens are securely held and cannot be manipulated.
In September 2023, the Sui Network introduced zero knowledge login options via Google, Facebook, and Twitch to streamline Web3 logins for users on its apps.
Since its launch, the network has gained a reputation for efficiently handling high transaction volumes while maintaining low fees.
