Sui Network clarifies Information on its tokenomics

In this post:

  • Sui Network takes to Twitter to address inappropriate rumors about its token supply.
  • The locked tokens will be locked by third-party custodians and cannot be moved.
  • The founders of Mysten Labs do not control the Sui Foundation treasury, the community reserve, stake subsidies, or any tokens allocated to investors.

Sui community members and crypto fans at large have expressed some degree of discontent regarding Sui Network tokenomics. Many think the token distribution formula is vague and allows the network to operate as a centralized entity, something that the crypto community at large is highly cautious about. 

The Sui Network team then took to Twitter to address some of the issues raised by Justin Bons and other like-minded crypto enthusiasts who have openly expressed their discontent on the matter. Sui Network’s attempt to make clarifications was met with a series of other inquiries, as some users feel Sui is coming across as defensive & insincere.

Sui Network sets the record straight from the beginning by addressing the issues around locked tokens. Sui Network categorically states that “locked tokens” are locked by third-party custodians and cannot be moved. The tokens will only be unlocked as provided in their tokenomics emissions schedule.

The foundation also provided further explanations of the relationship between the founders of Mysten Labs and the Sui Foundation. Sui Network maintains that the founders of Mysten Labs have no control over Sui Foundation treasury, community reserve, stake subsidies, or any tokens designated for investors. 

Locked Tokens – What’s Sui Networks Plan?

The Sui Foundation is, apparently, the target holder of locked tokens. The tokens will remain locked as planned following the plans given in the public emissions schedule. To clarify, Sui Network says the tokens will later be unlocked according to the established schedule and be used to support builders, increase network security, and nurture the ecosystem through programs like hackathons, developer grants, academic research, and bug bounties, among others. 

Some of the locked tokens will also be used to promote and develop the Move programming language within the ecosystem. Sui Networks also clarified that staking rewards are already in circulation because they are composed of stake subsidies and network fees. Importantly, all the staking rewards Sui Foundation earns are plowed back into the public emission schedule.

Sui Network expressed its commitment to transparency and serving its community amidst claims that its token allocation plan is arguably trash. Most issues raised revolved around the “unallocated tokens,” which some experts claim may be fully accessible to the Sui team, making the entire network a centralized platform.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Axies image taken from Axie Infinity official X account
Subscribe to CryptoPolitan