Sui Foundation Terminates Partnership with MovEx Team Due to Contractual Violation of Lock-Up Regulations
The Sui Foundation has made a momentous announcement regarding the termination of its partnership with the MovEx team. This decision was prompted by the discovery of a breach in contractual lock-up regulations associated with the SUI tokens that were granted to MovEx as compensation for their contributions to the DeepBook project.
According to the terms of their agreement, MovEx was obligated to abide by a specified lock-up period, during which they were prohibited from engaging in any transactions involving the received SUI tokens.
Reports have indicated that the Sui Foundation awarded a total of 2.5 million SUI tokens to MovEx in recognition of their efforts in the DeepBook project. However, contrary to the agreed-upon lock-up conditions, MovEx initiated three separate transactions, each involving 625,000 SUI tokens, to three different wallets. Significantly, the final portion of 625,000 SUI tokens from the initial transfer still remains within the original wallet.
The breach of this contractual obligation has raised serious concerns, as MovEx failed to inform the Sui Foundation about these transactions that violated the lock-up regulations, and furthermore, the Sui Foundation did not provide consent for such actions. Consequently, the Sui Foundation has taken the decisive step to terminate its association with the MovEx team.
In response to this breach, the Sui Foundation promptly took action by requesting MovEx to return the tokens to the primary recipient address. Subsequently, the tokens were securely transferred to a qualified custodian, who has been entrusted with the responsibility of enforcing the contractual lock-up restrictions. This strategic move was implemented to ensure strict compliance with the original terms of the agreement.
The Sui Foundation, in its official announcement, underscored the profound importance of crypto tokens within the blockchain economy. They highlighted the pivotal role these tokens play in safeguarding network security, supporting smooth operations, and fostering sustainable growth. It was emphasized that at the genesis of a new blockchain, native tokens are introduced into circulation, with additional tokens being released in accordance with a predetermined schedule. The tokens available for general use in the marketplace are commonly referred to as the circulating supply.
Currently, all other tokens that are subject to contractual lock-ups are being held within qualified custodian accounts, and these custodians have committed to upholding the terms of the locking arrangements, thus ensuring unwavering adherence to the agreed-upon terms.
Leave a comment