Crypto News – Regarding the issuance of its tokens, the Sui Network has cleared up any ambiguities. The layer-1 blockchain addressed concerns about the tokenomics around the distribution and management of its S SUI token in an X post.
Token Offering Concerns: Sui Network Addresses Concerns Raised Against It
Sui Network argues in the statement that its tokenomics are sound and that it stores tokens with respectable third parties. It asserts that its founders have no control over the treasury or tokens distributed to investors, including the community reserve, and that tokens are delivered on a prearranged schedule and are publicly accessible.
The primary wallet containing locked tokens, which can be released subject to certain requirements, is managed by the Sui Foundation, according to Sui. The Move programming language, network security upgrades, hackathons, and developer grants are just a few of the projects that are supported by the token releases. Stake derivatives and network commissions are among the staking incentives, according to Sui, and they are all given back to the community.
Concerns about Sui Team’s Token Holdings
Regarding the Sui team’s token holdings, Justin Bons of Cyber Capital voiced some reservations. In addition to calling for more openness and responsibility from Sui, Bons made the suggestion that the founders might hold a sizable amount of the staked tokens, creating a centralization risk.
But, Sui refutes Bons’ assertions, stating that it has made public that all tokens—distributed or not—are managed in accordance with legal and regulatory requirements and are supervised by respectable custodial service providers such as BitGo, Anchorage, and Coinbase Prime. By asking them to symbolize the st and show that the founders are unable to transfer or access it, Bons contested Sui’s assertions of transparency.
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