- Sui Network, a newly emerged ecosystem, has transformed into a strong Layer-1 decentralized platform in a short time.
- However, Justin Bons, the founder of Cyber Capital, has criticized the network’s founders for controlling 84% of the staked supply.
- Bons also raises concerns about the lack of transparency surrounding token distribution and ownership.
Justin Bons criticizes Sui Network’s founders for controlling 84% of the staked supply, raising concerns about centralization and lack of transparency.
Sui Network Founders Control 84% of Staked Supply
In a recent critique penned by Justin Bons, concerns about SUI’s token economy were highlighted. Despite its promising design, Bons underscored significant issues with the token’s supply dynamics. SUI proposes a capped supply of 10 billion tokens, with 52% being “unallocated” until 2030. However, the current staked amount exceeds 8 billion tokens, and 84% of the staked supply is controlled by the founders. This concentration of supply creates a centralization risk due to the absence of lock-in and legal guarantees for token holders.
Discrepancy Between Sui Network’s Claims and Actual Token Distribution
Bons emphasized the inconsistency between Sui Network’s claims and the actual token distribution, labeling the foundation’s published table as misleading. He argued that the absence of lock-ins provides significant flexibility to the founders in managing token allocation and raises concerns about the transparency and integrity of SUI’s communication. Bons also pointed out a lack of transparency surrounding token distribution and ownership. Despite disclosure requests, SUI has refused to provide detailed information about token addresses, raising questions about the project’s accountability.
Uncertainty Over Legal Ownership of “Unallocated” Supply
While SUI has announced that its tokens are held by custodians such as BitGo, Anchorage, and Coinbase Prime, the lack of clarity regarding the legal ownership of the “unallocated” supply continues to be a significant issue. Bons underscored the ambiguity about whether this share is controlled by the foundation or the for-profit Mysten Labs, stressing that the core team needs to provide further explanation.
Conclusion
The lack of transparency in Sui Network’s token distribution model, particularly regarding the “unallocated” supply, and perceived greed, led to Bons condemning the project’s practices and calling for greater accountability and ethical standards in the crypto economy.
