- Sui Network has addressed concerns regarding its token supply and distribution, asserting that its tokenomics are transparent and robust.
- Critic Justin Bons from Cyber Capital raised issues about potential centralization and control of staked tokens by Sui founders.
- Sui maintains that all tokens are managed under strict regulatory standards with oversight from reputable custodians like BitGo and Coinbase Prime.
The Sui Network has issued a clarifying statement via a post on X. The layer-1 blockchain platform countered allegations surrounding the transparency and handling of its S SUI token, emphasizing its commitment to robust tokenomics and secure management practices.
Addressing Tokenomics Concerns
Sui Network’s response comes after Justin Bons of Cyber Capital voiced concerns regarding the potential for centralization, suggesting that the Sui founders might control a significant portion of the staked tokens. Bons argued that this could pose a centralization risk, undermining the blockchain’s decentralized ethos. He called for greater transparency and accountability from the Sui management team regarding token control.
Sui’s Clarification and Practices
Sui detailed that the Sui Foundation manages the primary wallet, which holds the locked tokens. These tokens are released under stringent conditions to support various initiatives such as the development of the Move programming language, network security enhancements, hackathons, and developer grants. The company stressed that its founders do not have the ability to control the treasury or the tokens allocated to investors, including those in the community reserve.
Furthermore, Sui highlighted that staking rewards, which include stake derivatives and network commissions, are fully returned to the community, reinforcing its commitment to maintaining a participatory and equitable network ecosystem.
Custodial and Regulatory Compliance
Addressing the operational aspects, Sui affirmed that all tokens, whether already distributed or scheduled for future release, are managed in compliance with legal and regulatory frameworks. The oversight for these tokens is provided by reputable custodial service providers such as BitGo, Anchorage, and Coinbase Prime, ensuring that the tokens are securely held and not susceptible to unauthorized access or manipulation.
Continued Demand for Transparency
Despite Sui’s assurances, Bons remains skeptical and has urged the network to provide concrete proof that demonstrates the founders’ inability to move or access the staked tokens independently. He argues that true transparency is not just about claiming secure and compliant token management but also about demonstrating it clearly to maintain trust within the community.
