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- Sui Network, a Layer-1 decentralized platform, has addressed and clarified widespread misconceptions regarding its token supply.
- The platform has said that its token economics are reasonable because well-reputed third-party custodians are employed to keep the locked tokens.
- The network’s founders are under investigation past the allegations of a large possession of tokens.
Sui Network has clarified misconceptions about its token supply, ensuring transparency and secure custody by third parties, with a clear, public emission schedule. This comes amidst allegations against the network’s founders regarding large possession of tokens.
Understanding Sui Network’s Token Supply
Sui Network has published a response on the X platform, rebutting attacks against its tokenomics, particularly on the distribution of tokens and control of tokens by the founders. According to the network, these tokens are released as per a predetermined emission schedule, which is publicly available. The foundation stresses that the founders have no control over the treasury or any of the tokens given to the investors, including the community reserve.
Sui Network’s Transparency and Token Distribution
The Sui Foundation is the primary wallet holder of the locked tokens appointed for a controlled release under certain stipulations to strengthen the ecosystem. These allocations are meant to support many projects, including developing the Move programming language, network security enhancements, and community-oriented initiatives such as hackathons and developer grants. Furthermore, the network explains the distribution of staking rewards already in circulation in the system. These rewards are made up of stake derivations and network commissions, which are said to all go back to the community.
Addressing Centralization Concerns
Despite Sui Network’s explanations, Justin Bons of Cyber Capital raised some worries about the founding team’s holdings of tokens. Bons claimed that a significant portion of the staked tokens are believed to be in the founders’ hands, representing a threat towards centralization. This had prompted demand for more than transparency and accountability that should come from the network’s management, which the Sui team has now achieved. Sui Network argues that such a claim does not represent real token distribution and management, confirming their dedication to transparency. The network has also revealed that all tokens, including those not yet distributed, are operated in legal and regulatory compliance to legal and regulatory compliance with oversight from well-known custodial services such as BitGo, Anchorage, and Coinbase Prime.
Conclusion
Sui Network has addressed concerns about its token supply, ensuring transparency and secure custody by third parties. Despite allegations of centralization, the network maintains that its token distribution is fair and compliant with legal and regulatory standards. This development is a significant step towards enhancing trust and transparency in the crypto space.
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