- The Sui Network is facing scrutiny amid suspicions regarding its native SUI token supply.
- The ecosystem recently marked a significant milestone, celebrating its first anniversary.
- Sui has taken steps to address concerns regarding its token distribution.
Sui, the Layer-1 blockchain and smart contract platform dedicated to digital asset ownership, has been on a remarkable journey since its inception, marked by significant milestones achieved across its ecosystem. Building on the momentum, on May 3, 2034, Sui celebrated its first anniversary since its launch.
However, the celebration was short-lived. Cyber Capital founder Justin Bons raised the alarm regarding perceived inconsistencies in the network’s token supply. In a bid to assure investors, Sui addressed the criticism.
SUI Token Supply: Centralized or Not?
In a tweet on May 4, 20224, the SUI network refuted the allegations that its token supply is centralized, describing them as misleading and inaccurate.
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Central to Bons’ apprehensions are questions about Sui’s token distribution, with claims that 80% of it is allocated to the network’s founders. Bons asserted that 160 million of SUI’s total 10 billion went to its “for-profit” creator, Mysten Labs. At the same time, another 600M was earmarked for “early contributors,” in addition to a significant 1.5B allocated to venture capitalists.
Bons emphasized that this grants the founders control of most of the supply without lock-ins or legal guarantees, posing a significant risk to holders if dumped. Countering the claims, Sui emphasized that its creator, Mysten Labs, does not control the SuiFoundation treasury, the community reserve, stake subsidies, or any tokens allocated to investors.
“Sui Foundation is the largest holder of locked tokens, which will be unlocked in accordance with the public emissions schedule,” stated the network, adding that “there is no mystery about token ownership. Every token that will be released has been allocated.”
Reiterating its commitment to transparency, Sui affirmed that all staking rewards earned by the Sui Foundation are reinvested back into the community, which is also reflected in its public emission schedule.
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Sui’s first anniversary coincides with the network’s recent partnerships with leading tech giants.
Sui’s Taps Google Cloud to Promote Expansion
The Sui network and its creator, Mysten Labs, recently announced a new partnership with Google Cloud amid its efforts to advance Web3 innovation.
This partnership is expected to drive the development of secure, scalable, and user-centric Web3 experiences by integrating Sui blockchain data into BigQuery public datasets and providing developers with advanced analytics tools.
Sui will also harness Google Cloud’s generative AI platform, Vertex AI, to enhance code generation and debugging for Web3 developers, leveraging its scalable infrastructure to ensure network security and high performance.
Google Cloud and Sui will support the network’s developer community through Google’s Web3 Startup Program, offering resources such as Google Cloud credits, access to experts, foundation grants, and more.
On the Flipside
- Despite Sui’s assurances, market participants have labeled the network manipulative, intending to dump the token against retail investors.
- While the SUI token has performed impressively in the past months, its ongoing underperformance has raised questions about its credibility, down approximately 30% in the last 30 days and 91% below its all-time high.
- At press time, SUI is trading at $1.14, ticking a total 5.62% in the last 24 hours.
Why This Matters
Justin Bons’ apprehensions regarding the Sui token supply echo the importance of transparency and true decentralization within the industry. Sui’s assurance could further strengthen investor trust and confidence in the network.
Read this to understand the native SUI token’s underperformance in recent weeks:
SUI Fails To Recover 83% Loss Despite Surging Chain Activity
Here’s how the Curve DAO token is fueling recovery hopes among investors:
CRV Teases Recovery Signs As It Closes Week With Green Tick
