The Sui Network has taken the opportunity to address any misconceptions surrounding its token supply. In a recent post on X, the layer-1 blockchain has refuted criticism regarding the tokenomics surrounding the distribution and control of its S SUI token.
According to Sui, its tokenomics are robust, and it employs reputable third parties to handle token storage. It asserts that tokens are released in accordance with a predetermined schedule, and they are easily accessible to the public. Furthermore, the founders of Sui have no authority over the treasury or the tokens allocated to investors, including the community reserve.
Sui has clarified that the primary wallet containing locked tokens is managed by the Sui Foundation. These tokens are released under specific conditions and are used to support a variety of projects, such as the development of the Move programming language, network security enhancements, hackathons, and developer grants.
The network also explained that staking rewards consist of stake derivatives and network commissions, all of which are returned to the community.
However, Justin Bons from Cyber Capital has voiced concerns about the token holdings of the Sui team. Bons suggests that the founders may have control over a significant portion of staked tokens, which poses a risk of centralization. He calls for greater transparency and accountability from Sui.
In response, Sui dismisses Bons’ claims and states that it has disclosed that all tokens, whether distributed or not, are managed in compliance with legal and regulatory standards. Reputable custodial service providers like BitGo, Anchorage, and Coinbase Prime oversee the management of these tokens.
Bons challenges Sui’s claims of transparency by urging them to prove the security of the tokens and demonstrate that the founders cannot move or access them. He suggests that misrepresenting the token status undermines transparency claims. True transparency, according to Bons, 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, allowing for zero knowledge login via Google, Facebook, and Twitch. Since its launch, the network has gained a reputation for efficiently handling high transaction volumes while maintaining low fees.