The Sui Network has taken steps to explain its tokenomics to individuals who might have a wrong view of it. This follows after the layer-1 blockchain recently came under heavy criticism for its SUI token supply (storage and distribution) and also how it is being controlled.
In a lengthy X post, the Sui network explained its tokenomics in two broad ways. First, it started with storage, which it claims is done by reputable ‘third-party custodians.’ About token distribution, the network reaffirmed that tokens can not be moved until they are unlocked according to Sui’s token emissions schedule.
Furthermore, Sui noted in the post that its founders have no control over the treasury. It also added that they have no control over the community reserve, stake subsidies, or any of the tokens allocated to investors either. Sui also clarified that there is nothing shady about token ownership on the network. That is because every token that will be released has been allocated, the post concluded.
Sui Network Sees More Criticism
In an interesting turn of events, Sui’s attempt to clear the air might have caused even more uproar. Justin Bons, the founder and CIO of Europe’s oldest crypto fund, Cyber Capital, has expressed concerns about the explanation.
Bons calls Sui’s token distribution “garbage,” suggesting that the founders are in control of a significant portion of staked tokens. According to him, this kind of situation poses centralization risks. Bons rounded up by calling for more transparency and accountability from Sui.
Meanwhile, Sui has also countered Bons’ claims. The protocol insists that all of its tokens, whether distributed or not, are managed in compliance with legal and regulatory standards. The firm also mentions how the tokens are custodied by reputable custodial service providers, including BitGo, Anchorage, and Coinbase Prime.
Despite the claims, however, Bons insists that Sui’s claims are untrue. He says that the only way to ascertain Sui’s claims is to do a public demonstration to show that the founders truly can not move or access these allocated tokens.
The Sui Network remains highly reputed for its exceptional capability to handle high transaction volumes at relatively low fees.
