Sui Network It came to the fore with the network’s congratulatory posts. A nascent ecosystem quickly evolved into a powerful Layer-1 decentralized platform. Earlier this week, it increased its power by partnering with Google Cloud to develop artificial intelligence and Web3 initiatives. However, Justin Bons, founder of Cyber Capital, criticized the founders of the network. kept.
Sui Network Founders Have 84% Control
In a recent review by Justin Bons, SUIConcerns regarding the token economy of ‘s token economy stood out. Bons highlighted significant issues with the token’s supply dynamics, despite its promising design.
SUI is proposing a limited supply of 10 billion tokens by 2030, with 52% designated as “unallocated.” However, the current staked amount exceeds 8 billion tokens, and 84% of the staked supply is controlled by the founders. This concentration of supply poses a risk of centralization due to the lack of lock-in and legal guarantees for token holders.
1/16) SUI has a great design, except for its token economics:
NEWS CONTINUES BELOWSUI claims to have a capped supply of 10B, with 52% being “unallocated” until 2030
The problem is that over 8B SUI is being staked right now!
NEWS CONTINUES BELOWOver 84% of the staked supply is held by founders! SUI is centralized: 🧵
— Justin Bons (@Justin_Bons) May 2, 2024
Bons called the chart published by the foundation misleading, highlighting the discrepancy between Sui Network’s claims and the actual token distribution. Bons argued that the absence of lock-ins provides founders with significant flexibility in managing token allocation, raising concerns about the transparency and integrity of SUI’s communications.
Bons also noted that there is a lack of transparency surrounding token distribution and ownership. Despite requests for disclosure, SUI refused to provide detailed information about token addresses, raising questions about the project’s accountability.
While SUI has disclosed that its tokens are held by custodians such as BitGo, Anchorage, and Coinbase Prime, the lack of clarity regarding legal ownership of “unallocated” supply remains a significant issue. Bons underlined the uncertainty about whether this stake is controlled by the foundation or the for-profit Mysten Labs, and emphasized that the Core team should provide further clarification.
The lack of transparency and perceived greed in Sui Network’s token distribution model, particularly regarding “unallocated” supply, led Bons to condemn the project’s practices and call for greater accountability and ethical standards in the crypto economy.
