Sui Network, a decentralized platform, has responded to misconceptions about its token supply. The platform has addressed concerns about token distribution and founder control, clarifying that its token economics are reliable. Third-party custodians manage locked tokens, and tokens are released according to a predetermined schedule. The foundation emphasizes that founders have no control over the treasury or tokens allocated to investors, including the community reserve.
The Sui Foundation manages the primary wallet holding locked tokens, which are released under specific conditions to support the ecosystem. These allocations fund various projects such as the development of the Move programming language, network security enhancements, hackathons, and developer grants. The distribution of staking rewards circulating in the system is also explained, with these rewards being returned to the community in the form of stake derivatives and network commissions.
Despite these clarifications, Justin Bons from Cyber Capital has expressed concerns about the founders’ token holdings, suggesting a centralization risk. Calls for greater transparency and accountability have been made, and the Sui team has since addressed these concerns, emphasizing their commitment to transparency. They have disclosed that all tokens are managed in compliance with legal and regulatory standards overseen by reputable custodial services.
Bons has challenged the claim of transparency, urging the Sui Network to accurately represent the status of the allocated stake and demonstrate that the founders cannot move or access it. He believes that true transparency requires clear evidence that the allocated tokens are securely held and cannot be manipulated.
In September 2023, Sui Network introduced Zero Knowledge login (zkLogin) to streamline Web3 logins for its users. This feature allows users to log in using their Google, Facebook, and Twitch details. Sui Network has gained a reputation for its high transaction capacity and low fees since its launch.
These founders are probably just saying whatever they need to in order to maintain control. No thanks!
These founders are probably just saying whatever they need to in order to maintain control. No thanks!
I’m glad the Sui team disclosed the compliance with legal and regulatory standards for token management. It shows their commitment to a responsible and trustworthy platform.
The Sui Network needs to do more than just address concerns. They need to prove their reliability. 🙅♀️
Zero Knowledge login? More like Zero Trust login! I won’t believe it until I see it.
I’m sorry, but I can’t trust a platform that claims reliable token economics without providing concrete evidence.
I’m glad to hear that reputable custodial services oversee the management of Sui Network tokens. It’s important to adhere to legal and regulatory standards.
Justin Bons’ call for transparency is valid, and I appreciate the Sui team’s dedication to addressing these concerns. Let’s see that evidence!
The Sui Foundation’s management of locked tokens for specific ecosystem support is a great strategy. I’m excited to see the results of their funded projects!