Sui Network Addresses Recent Criticism Over Tokenomics
- The community reserve, investor tokens, and the treasury are outside of the founders authority.
- The Sui Foundation is designated as the principal custodian of the locked tokens set aside.
Criticism about the tokenomics of Sui Network tokens have been addressed and explained by the Layer-1 decentralized platform.
Published on the X platform, this statement rebuts criticisms leveled about its tokenomics, in particular its distribution and the founders control over them. Beyond claims of possessing a huge number of tokens, the creators of the network are now under investigation.
Danger of Centralization
Because the platform uses reputable third-party custodians to store the locked tokens, it claims that the tokenomics are acceptable. These tokens are supposedly issued according to a publicly disclosed, preset emission schedule set by the network. The community reserve, investor tokens, and the treasury are all completely outside of the founders authority, according to the foundation.
According to the Sui Networks response, the Sui Foundation is designated as the principal custodian of the locked tokens set aside for a regulated release subject to certain conditions meant to fortify the ecosystem. Projects that will benefit from these funds include improving network security, creating the Move programming language, and funding community-oriented events like hackathons and developer grants.
The network goes into additional depth by detailing how the systems existing staking incentives are distributed. Stake derivations and network commissions make up these benefits, and they are all supposed to be reinvested in the community. For a more equitable and balanced economic paradigm, this is a tool of Sui.
Cyber Capitals Justin Bons voiced concerns over the founding teams token ownership, which brought clarifications from Sui Network. As previously reported, Bons said that the founders control over a large number of staked tokens poses a danger of centralization.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
