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Sui Clarifies Misconceptions on Token Supply, Will Price Rally? – Crypto News

Published

1 year ago

May 5, 2024

Dripp

Sui Network, a Layer-1 decentralized platform, has addressed and clarified widespread misconceptions regarding its token supply. This response, published on the X platform, is a rebuttal to attacks against its tokenomics, particularly on the distribution of tokens and control of tokens by the founders. The network’s founders are under investigation past the allegations of a large possession of tokens.

The platform has said that its token economics are reasonable because well-reputed third-party custodians are employed to keep the locked tokens. According to the network, these tokens are released as per a predetermined emission schedule, which is publicly available. The foundation stresses that the founders have no control over the treasury or any of the tokens given to the investors, including the community reserve.

Sui Transparency and Token Distribution

The feedback from the Sui Network says that the Sui Foundation is the primary wallet holder of the locked tokens appointed for a controlled release under certain stipulations to strengthen the ecosystem. Those allocations are meant to support many projects, including developing the Move programming language, network security enhancements, and community-oriented initiatives such as hackathons and developer grants.

Recently, there have been some misleading posts issued about Sui’s token supply.

Let’s set the record straight, starting with the basics: locked tokens are locked by third-party custodians. They cannot be moved, and are safely custodied until they are unlocked according to Sui’s…

— Sui (@SuiNetwork) May 4, 2024

In further detail, the network explains the distribution of staking rewards already in circulation in the system. These rewards are made up of stake derivations and network commissions, which are said to all go back to the community. This is an instrument of Sui for balance and fairness in the economic model.

Addressing Centralization Concerns

Notwithstanding Sui Network’s explanations, Justin Bons of Cyber Capital raised some worries about the founding team’s holdings of tokens. Bons claimed, as earlier reported by Coingape, that a significant portion of the staked tokens are believed to be in the founders’ hands, representing a threat towards centralization. This had prompted demand for more than transparency and accountability that should come from the network’s management, which the Sui team has now achieved.

On the other hand, Sui Network argues that such a claim does not represent real token distribution and management, confirming their dedication to transparency. The network has also revealed that all tokens, including those not yet distributed, are operated in legal and regulatory compliance to legal and regulatory compliance with oversight from well-known custodial services such as BitGo, Anchorage, and Coinbase Prime.

SUI/USD 24-hour price chart

Meanwhile, the Sui (SUI) token has been in a downtrend in the last 24 hours after failing to breach the intra-day high of $1.12. At press time, SUI was trading at $1.09, a 1.43% decline from the day’s high. Concurrently, the market capitalization dipped by 1.43% to $2,542,377,403, while the 24-hour trading volume surged by 265 to $299,984,335.