Sui Network Responds to Allegations Regarding Token Supply

The Sui Network has addressed misconceptions about its token supply in a bid to clear the air. In a post on X, the layer-1 blockchain has refuted criticism surrounding the tokenomics of its S SUI token and the control of its distribution.
According to Sui, its tokenomics are robust and it relies on trustworthy third parties to handle token storage. The platform asserts that tokens are released in accordance with a predetermined schedule and are publicly accessible. Furthermore, it claims that its founders have no control over the treasury or the tokens allocated to investors, including the community reserve.
Sui explains that the Sui Foundation manages the main wallet that holds locked tokens, which are only released under specific conditions. These token releases are used to support various projects, such as the development of the Move programming language, network security enhancements, hackathons, and developer grants.
The platform clarifies that staking rewards consist of stake derivatives and network commissions, all of which are given back 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, creating a risk of centralization. He calls for greater transparency and accountability from Sui.


Source:
Justin Bons
On the other hand, Sui disputes Bons’ claims and states that it has openly disclosed that all tokens, whether distributed or not, are managed in compliance with legal and regulatory standards overseen by reputable custodial service providers like BitGo, Anchorage, and Coinbase Prime.
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Bons challenges Sui’s transparency claims by urging them to prove that the founders cannot move or access the tokens. He argues that misrepresenting the status of the tokens undermines transparency and that true transparency requires clear evidence that the allocated tokens are securely held and cannot be manipulated.
In September 2023, the Sui Network introduced streamlined Web3 logins for users on its apps, offering zero knowledge login options via Google, Facebook, and Twitch. Since its launch, the platform has gained a reputation for handling high transaction volumes while maintaining low fees.
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