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Sui Network Addresses Token Supply Concerns, Asserts Transparency and Third-Party Oversight

The Sui Network recently addressed misconceptions regarding its token supply, rebutting critiques on the distribution and governance of its SUI token.

In a statement posted on X, the layer-1 blockchain asserted the integrity of its tokenomics and highlighted the involvement of reputable third parties in token storage and management.

According to Sui, tokens are released according to a predetermined schedule and are easily accessible to the public.

It emphasized that neither its founders nor the Sui Foundation can control the treasury or tokens allocated to investors, including those in the community reserve.

The Sui Foundation manages the primary wallet housing locked tokens, which are released under specific conditions to support various projects such as Move programming language development, network security enhancements, hackathons, and developer grants.

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Addressing concerns raised by Justin Bons from Cyber Capital, who highlighted potential centralization risks due to the team’s token holdings, Sui disputed these claims.

It asserted compliance with legal and regulatory standards overseen by reputable custodial service providers like BitGo, Anchorage, and Coinbase Prime, ensuring transparency and accountability.

Bons, however, challenged Sui to provide evidence demonstrating that founders cannot move or access allocated tokens, arguing that true transparency requires irrefutable proof of secure token holdings.

He cautioned against misrepresenting token status, which could undermine transparency claims.

In a separate development, in September 2023, the Sui Network streamlined Web3 logins for users on its apps, offering zero knowledge login options via platforms like Google, Facebook, and Twitch.

Renowned for its ability to handle high transaction volumes while maintaining low fees since its inception, the network continues to innovate in the realm of blockchain technology.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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