Sui Network Celebrates 1-Year Mainnet Debut Amidst Tokenomics Criticism
- Justin Bons has voiced some issues about SUIs token economics in a criticism.
- The founders have a lot of leeway to decide how to distribute tokens since there are no lock-ins.
As of right now, Sui Network is commemorating the one-year anniversary of its mainnet debut. After starting off as an isolated ecosystem, the Sui Network has grown into a powerful Layer-1 decentralized platform in under a year.
To further its artificial intelligence and web3 projects, Sui Network teamed up with Google Cloud earlier last week. While Sui Networks founders have a disproportionate amount of power, Cyber Capital founder Justin Bons has lately voiced his concerns about the tokenomics used by the company.
Alarming Tokenomics
Justin Bons has voiced some issues about SUIs token economics in a criticism. The design of the token seemed promising, however Bons pointed out major problems with the supply dynamics of the token.
Until 2030, 52% of SUIs 10 billion tokens will be marked as unallocated, according to the companys advertising. Staked tokens, however, already surpass 8 billion, and the founders control an astounding 84% of that supply. Without lock-ins and legal protections for token holders, this centralized supply even further threatens decentralization.
Bons criticized the foundations published graphic, calling it deceptive, and highlighted the disparity between SUIs assertions and its real token distribution. In his criticism of SUIs communication ethics and openness, he said that the founders have a lot of leeway to decide how to distribute tokens since there are no lock-ins.
Moreover, Bons raised concerns about how the projects funds were distributed, pointing out that early backers, venture capitalists, and for-profit businesses received disproportionately large shares. His main worries were the concentration of share subsidies among the founders, who already own the bulk of the company, and the absence of a public sale, both of which he voiced with dismay.
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Read more: https://thenewscrypto.com/sui-network-celebrates-1-year-mainnet-debut-amidst-tokenomics-criticism/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
