The Sui Network has addressed misconceptions regarding its token supply in a bid to clarify the situation. In a recent statement posted on X, the layer-1 blockchain company refuted criticism surrounding the tokenomics of its S SUI token and the distribution and control of it.
Sui firmly maintains that its tokenomics are well-structured and that it entrusts reputable third parties to manage token storage. The company asserts that tokens are released according to a predetermined schedule and are made publicly accessible. Furthermore, Sui emphasizes that its founders do not possess control over the treasury or the tokens allocated to investors, including the community reserve.
According to Sui, the Sui Foundation is responsible for managing the primary wallet that holds locked tokens. These tokens are gradually released under specific conditions in support of various projects such as the development of the Move programming language, network security enhancements, hackathons, and developer grants.
Sui goes on to explain 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 raised concerns regarding the token holdings of the Sui team. Bons has suggested that the founders may wield significant control over staked tokens, thereby posing a risk of centralization. He has called for increased transparency and accountability from Sui.
In response to Bons’ claims, Sui disputes them and asserts that it has disclosed the management of all tokens, whether distributed or not, in compliance with legal and regulatory standards overseen by reputable custodial service providers such as BitGo, Anchorage, and Coinbase Prime.
In light of these developments, Bons has challenged Sui’s transparency claims by urging them to demonstrate that the founders are unable to move or access the allocated tokens. He argues that misrepresenting the status of the tokens undermines transparency and that genuine transparency necessitates clear evidence that the allocated tokens are securely held and beyond manipulation.
In September 2023, the Sui Network introduced streamlined Web3 logins for users on its applications, offering a zero knowledge login option through platforms like Google, Facebook, and Twitch. Since its launch, the company has garnered a reputation for efficiently handling high transaction volumes while keeping fees low.