Sui Network, a layer-1 decentralized network, has addressed and clarified frequent misconceptions regarding the amount of tokens it issues.This X platform statement addresses issues around founder control and token distribution, specifically addressing criticisms of the company’s tokenomics.With respectable third-party custodians handling locked tokens, the site believes that its token economics are sound.The public can access and release tokens in accordance with a prearranged emission schedule.The foundation makes it clear that the treasury and tokens given to investors, including the community reserve, are not under the founders’ authority.
According to feedback from the Sui Network, the Sui Foundation manages the primary wallet holding locked tokens, which are released under specific conditions to enhance the ecosystem. These allocations support various projects, including Move programming language development, network security enhancements, hackathons, and developer grants.
Sui Network went on to describe the system’s staking reward distribution in more detail.These benefits include network commissions and stake derivatives, both of which are given back to the community.Sui’s economic model, which strives to preserve justice and balance, heavily relies on this strategy.
Justin Bons from Cyber Capital voiced worries regarding the founding team’s token ownership notwithstanding Sui Network’s explanations.According to Bons, there is a risk of centralization because the founders can hold a sizable percentage of the tokens that have been staked.This led to demands for increased responsibility and transparency from the network administration, which the Sui team has subsequently addressed.Sui Network, on the other hand, refutes this claim as untrue in regards to token administration and distribution and highlights their dedication to openness.They have shown that all tokens—distributed or not—are handled in accordance with legal and regulatory requirements, under the supervision of trustworthy custodial services like Coinbase Prime, BitGo, and Anchorage.
Bons, however, disputed the Sui Network’s transparency claim, asking them to show that the founders are unable to change or access the allocated stake and to appropriately depict its current state.Bons stressed that he is a critic driven by a desire to see SUI succeed.He said that falsely claiming that these tokens are transparent is insufficient and that genuine transparency necessitates unambiguous proof that the allotted tokens are safely stored and unchangeable.
Sui Network simplified Web3 logins for users on its apps in September 2023 by implementing Zero Knowledge login (zkLogin), which allowed users to log in using their Twitch, Facebook, and Google credentials.renowned for having a large transaction volume and inexpensive launch fees.It has established a reputation for managing large transaction volumes with affordable prices ever since its start.