Sui Network has clarified misconceptions regarding token supply. In a post on X, Layer 1 Blockchain refuted criticism of Tokenomics regarding the distribution and control of S SUI tokens.
Sui said in a statement, maintain Its tokenomics are sound and it uses a trusted third party to handle storage of tokens. The company claims that the tokens will be released according to a predetermined schedule and will be publicly accessible, with founders having no control over the tokens allocated to investors, including the Treasury and community reserves.
The Sui Foundation manages a major wallet that holds locked tokens that are released under certain conditions, Sui said. Token releases will support a variety of projects including Move programming language development, network security hardening, hackathons, and developer grants.
Sui explained that staking rewards are made up of staking derivatives and network commissions, all of which are returned to the community.
However, Cyber Capital’s Justin Bons expressed concerns about the Sui team’s token holdings. Bonds suggested that the founders control a significant portion of the staked tokens, suggesting there may be a risk of centralization, and called for greater transparency and accountability from Sui. .
Meanwhile, Sui disputes Bons’ claims, stating that all tokens, distributed or not, are managed in accordance with legal and regulatory standards overseen by reputable custodial service providers such as BitGo, Anchorage, and Coinbase Prime. He said that he had made it clear that
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Bonds disputed Sui’s transparency claims and asked it to prove on behalf of Cent that the founders could not move or access Cent.
Bonds said that misrepresenting the status of a token undermines claims of transparency, and that true transparency requires clear evidence that allocated tokens are held securely and cannot be manipulated. suggested that it was necessary.
In September 2023, Sui Network streamlined Web3 login for users on its apps with zero-knowledge login via Google, Facebook, and Twitch. Since its inception, it has built a reputation for being able to handle high trading volumes while maintaining low fees.
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