The Sui Network has clarified misunderstandings about its token supply. In a post on X, the layer-1 blockchain refuted criticism of the tokenomics around distribution and control of its S SUI token.
In the statement, Sui maintains that its tokenomics are sound and that it uses reputable third parties to handle token storage. It claims tokens are released according to a predetermined schedule, they are publicly accessible, and its founders cannot control the treasury or tokens allocated to investors, including the community reserve.
Sui said the Sui Foundation manages the primary wallet holding locked tokens, which are released under specific conditions. The token releases support various projects, including Move programming language development, network security enhancements, hackathons and developer grants.
Sui explained that staking rewards comprise stake derivatives and network commissions, all of which are returned to the community.
However, Justin Bons from Cyber Capital expressed concerns about the Sui team’s token holdings. Bons suggested that the founders may control a substantial portion of staked tokens, posing a centralization risk, and he called for greater transparency and accountability from Sui.
On the other hand, Sui disputes Bons’ claims, and it said it has disclosed that all tokens, whether distributed or not, are managed in compliance with legal and regulatory standards overseen by reputable custodial service providers like BitGo, Anchorage and Coinbase Prime.
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