Sui Network addresses claims about its token supply

Amaka Nwaokocha1 hour agoSui Network addresses claims about its token supplySui maintains that its tokenomics are sound and that it uses reputable third parties to handle token storage.946 Total views10 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe Sui Network has clarified misunderstandings about its token supply. In a post on X, the layer-1 blockchain refuted criticism of the tokenomics around distribution and control of its S SUI token.

In the statement, Sui maintains that its tokenomics are sound and that it uses reputable third parties to handle token storage. It claims tokens are released according to a predetermined schedule, they are publicly accessible, and its founders cannot control the treasury or tokens allocated to investors, including the community reserve.

Sui said the Sui Foundation manages the primary wallet holding locked tokens, which are released under specific conditions. The token releases support various projects, including Move programming language development, network security enhancements, hackathons and developer grants.

Sui explained that staking rewards comprise stake derivatives and network commissions, all of which are returned to the community.

However, Justin Bons from Cyber Capital expressed concerns about the Sui team’s token holdings. Bons suggested that the founders may control a substantial portion of staked tokens, posing a centralization risk, and he called for greater transparency and accountability from Sui.Source: Justin Bons

On the other hand, Sui disputes Bons’ claims, and it said it has 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 challenged Sui’s claims of transparency by urging them to represent the st and demonstrate that the founders cannot move or access it.

Bons suggested that misrepresenting the token status undermines transparency claims and that true transparency requires clear evidence that the allocated tokens are securely held and cannot be manipulated.

In September 2023, the Sui Network streamlined Web3 logins for users on its apps with zero knowledge login via Google, Facebook and Twitch. Since its launch, it has built a reputation for handling high transaction volumes while maintaining low fees.

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