The Sui Network, a layer-1 blockchain platform, has responded to recent criticism and clarified misunderstandings about its token supply and tokenomics. In a statement posted on the social media platform X, Sui refuted claims questioning the distribution and control of its native SUI token.

Sui maintains that its tokenomics are sound and that it employs reputable third-party custodial services to handle token storage securely. The network claims that tokens are released according to a predetermined schedule, which is publicly accessible, and that its founders cannot control the treasury or tokens allocated to investors and the community reserve.

According to Sui, the Sui Foundation manages the primary wallet holding locked tokens, which are released under specific conditions. These token releases are designed to support various projects and initiatives, including the development of the Move programming language, network security enhancements, hackathons, and developer grants.

Sui also explained that staking rewards, comprising stake derivatives and network commissions, are all returned to the community, further emphasizing its commitment to decentralization and community engagement.

However, Justin Bons, a prominent figure from Cyber Capital, expressed concerns about the Sui team's token holdings. Bons suggested that the founders may control a substantial portion of staked tokens, posing a potential centralization risk. He called for greater transparency and accountability from Sui regarding its token distribution and governance.

In response, Sui disputed Bons' claims and stated that it has disclosed that all tokens, whether distributed or not, are managed in compliance with legal and regulatory standards overseen by reputable custodial service providers like BitGo, Anchorage, and Coinbase Prime.

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Bons challenged Sui's claims of transparency, urging the network to provide evidence that the founders cannot move or access the staked tokens (st). He suggested that misrepresenting the token status undermines transparency claims and that true transparency requires clear evidence that the allocated tokens are securely held and cannot be manipulated.

In September 2023, the Sui Network introduced a streamlined Web3 login process for users on its apps, enabling zero-knowledge logins via popular platforms like Google, Facebook, and Twitch. Since its launch, Sui has built a reputation for handling high transaction volumes while maintaining low fees.

The Sui Network's response aims to address concerns and provide clarity around its tokenomics and token distribution practices. As blockchain networks continue to evolve and gain adoption, transparency and decentralization remain crucial factors in building trust and fostering a thriving ecosystem.