The Sui Network has responded to allegations regarding its tokenomics and control of its SUI token.
The Sui Network has responded to allegations regarding its tokenomics and control of its SUI token. The layer-1 blockchain platform clarified that its tokenomics are robust and that reputable third parties handle token storage. It emphasized that tokens are released according to a predetermined schedule and are publicly accessible, and the founders have no control over the treasury or tokens allocated to investors, including the community reserve.
This was in response to Justin Bons from Cyber Capital, who expressed concerns about the Sui team's token holdings, raising the issue of potential centralization risks. Bons called for greater transparency and accountability from Sui, urging them to provide clearer evidence that the founders cannot move or access the staked tokens.
In response, Sui refuted Bons' claims and stated 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 the tokens, ensuring compliance and security.
According to Sui, the Sui Foundation manages the primary wallet holding locked tokens, which are released under specific conditions. These token releases support various projects, such as the development of the Move programming language, network security enhancements, hackathons, and developer grants.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
