While Sui Network celebrates its one-year anniversary and a recent partnership with Google Cloud, a shadow looms over its tokenomics. Venture capitalist Justin Bons has cast doubt on the project’s token distribution, highlighting a concerning concentration of power in the hands of its founders.
Despite boasting a capped supply of 10 billion SUI tokens, over 84% of the currently staked 8 billion supply is controlled by the founders. This lack of decentralization is further amplified by the absence of lock-ins or legal guarantees for token holders. Bons criticizes the official SUI charts as misleading, failing to accurately reflect the actual distribution of tokens.
Transparency concerns extend beyond the founders’ stake. SUI has refused to disclose detailed information about token addresses, particularly regarding the 52% of tokens designated as “unallocated” until 2030. It remains unclear whether the foundation or the for-profit entity Mysten Labs controls this significant portion, raising questions about accountability and potential manipulation.
Bons further criticizes the allocation of funds within the project, with substantial portions going to for-profit entities, early contributors, and venture capitalists. The lack of a public sale and the concentration of stake subsidies in the hands of the founders further fuel concerns about the project’s commitment to fair distribution.
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These concerns surrounding tokenomics, particularly the “unallocated” supply and lack of transparency, have prompted Bons to denounce Sui’s practices. He calls for greater accountability and adherence to ethical standards in the crypto-economic landscape.
Despite the controversy, SUI’s native token has experienced a surge in trading volume, currently trading at $1.09 with a market cap of $2.54 million. However, the cloud of centralization and potential manipulation cast by its token distribution remains a significant hurdle for Sui Network’s long-term success.
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