The Sui Network, the Layer-1 Blockchain supporting the altcoin SUI, is facing criticism over its tokenomics and transparency as it reaches its one-year milestone on the mainnet.

The distribution of SUI tokens, with a capped supply of 10 billion, is a major concern as a large portion, more than 84%, is reportedly controlled by the Sui Network founders. This concentration raises worries about centralization within the project.

Critics highlight inconsistencies in the token distribution, pointing out that the lack of lock-up periods for the founders' assets gives them too much flexibility in managing token allocation. This, combined with the absence of legal guarantees for token holders, leads to doubts about transparency and accountability.

There is also a lack of clarity regarding the “unallocated” token supply, raising questions about who truly owns this portion. The token allocation model itself has been criticized for favoring for-profit organizations, early contributors, and venture capitalists, rather than ensuring a fair decentralized distribution.

Despite an increase in trading volume, concerns over tokenomics threaten to overshadow Sui’s recent success. The Sui Network team has yet to address the criticisms raised by Justin Bons, founder of Cyber Capital.

Moving forward, addressing these concerns will be essential for Sui to rebuild investor trust and secure its long-term success. Whether Sui can establish itself as a transparent and decentralized platform with a fair token distribution model will determine its future in the competitive crypto space. The upcoming year will be pivotal in demonstrating Sui’s commitment to creating a reliable ecosystem for developers and users.