Sui Network clears up misunderstandings about token supply

Sui Network, a layer 1 decentralized platform, has responded and corrected common misconceptions about token supply. The statement, posted on the

platform maintain The token economy is sound and we utilize reputable third-party custodians to manage our locked tokens. Tokens are issued according to a predetermined issuance schedule and are publicly accessible. The Foundation emphasizes that the founders have no control over the treasury or tokens allocated to investors, including community reserves.

According to feedback from Sui Network, the Sui Foundation maintains a native wallet that holds locked tokens that are released under certain conditions to strengthen the ecosystem. These allocations support a variety of projects, including development of the Move programming language, enhanced network security, hackathons, and developer grants.

Sui Network further explained the distribution of staking rewards circulating within the system. These rewards consist of stake derivatives and network commissions, all of which are returned to the community. This approach is a key aspect of Sui’s economic model, which aims to maintain balance and fairness.

Cyber ​​Capital’s Justin Bons Despite Sui Network’s Clarification express Concerns about the founding team’s token holdings. Bons suggested that the founders could control a significant portion of the staked tokens, leading to centralization risks. This led to a need for greater transparency and accountability in network management, which the Sui team has since addressed.

In contrast, Sui Network disputes these claims as inaccurate and emphasizes its commitment to transparency when it comes to token distribution and management. They have disclosed that all tokens, whether distributed or not, are governed by legal and regulatory standards overseen by reputable custodial services such as BitGo, Anchorage, and Coinbase Prime.

Related: Can blockchain revolutionize digital securities management on stock exchanges?

However, Bons challenged Sui Network’s claims of transparency by urging it to accurately represent the status of allocated stakes and demonstrate that founders cannot move or access them.

Bons emphasized that his criticism was motivated by a desire for SUI to succeed. He suggested that misrepresenting the status of these tokens undermines the transparency claim, and that true transparency requires clear evidence that allocated tokens are secure and cannot be tampered with.

In September 2023, Sui Network streamlined Web3 login for app users with Zero Knowledge Login (zkLogin), enabling login via Google, Facebook, and Twitch details. Since its launch, it has been known for its high trading capacity with low fees. Since launch, it has built a reputation for handling high transaction volumes while maintaining low fees.

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