As a researcher with experience in the blockchain and cryptocurrency space, I’ve seen my fair share of controversies surrounding token distributions and founders’ holdings. The recent allegations against Sui Network’s tokenomics have caught my attention, particularly given the network’s emphasis on transparency and decentralization.
As a analyst, I’d like to clarify some misconceptions that have been circulating about Sui Network’s token supply. In response to attacks on our tokenomics, particularly concerning the distribution and control of tokens by our founders, I’d like to set the record straight.
The platform justifies the rationality of its token economics by utilizing respected external custodians for securing the locked tokens. As stated by the network, these tokens are dispensed in accordance with a publicly accessible emission plan. The foundation underscores that the founders possess no authority over the treasury or any investor-designated tokens, including the community reserve.
Sui Transparency and Token Distribution
According to reports from the Sui Network, the Sui Foundation is in charge of keeping the tokens set aside for a gradual distribution, under specific conditions, in order to bolster the ecosystem. These reserves are intended to finance various projects, like the creation of the Move programming language, fortifying network security, and fostering community endeavors such as hackathons and developer grants.
Recently, there have been some misleading posts issued about Sui’s token supply.
To clarify from the outset, locked tokens are kept secure by external guardians. These tokens remain immovable until released under the conditions specified by Sui’s system.
— Sui (@SuiNetwork) May 4, 2024
The network provides a more comprehensive explanation of how staking rewards, consisting of derivative rewards and network fees, are currently circulating within the system. Both types of rewards are reportedly redistributed back to the community as a key feature of Sui’s economic model, ensuring balance and fairness.
Addressing Centralization Concerns
Despite Sui Network’s clarifications, Justin Bons of Cyber Capital expressed concerns over the large amount of tokens held by the founding team. According to a previous Coingape report, a substantial portion of the staked tokens is believed to be in the founders’ possession. This situation raises questions about decentralization and has led to calls for greater transparency and responsibility from Sui Network’s leadership. The team has since responded by increasing their level of disclosure.
From my perspective as a researcher, Sui Network challenges the notion that their token distribution and management claims lack authenticity. They assure transparency by revealing that all tokens, including undistributed ones, are managed in accordance with legal and regulatory requirements. Notably, they have disclosed that these tokens are held under the oversight of reputable custodial services such as BitGo, Anchorage, and Coinbase Prime.
SUI/USD 24-hour price chart
Over the past 24 hours, the SUI token has experienced a downturn and hasn’t been able to reach its intraday peak of $1.12. At present, the price is at $1.09, representing a 1.43% decrease from the peak. Simultaneously, the market capitalization dropped by 1.43%, amounting to $2,542,377,403, while the trading volume significantly increased to $299,984,335, marking a 265% rise.
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2024-05-05 02:17