Sui Network clarifies Information on its tokenomics

Sui community members and crypto fans at large have expressed some degree of discontent regarding Sui Network tokenomics. Many think the token distribution formula is vague and allows the network to operate as a centralized entity, something that the crypto community at large is highly cautious about. 

I love SUI's tech, but the token distribution is garbage

You are making it worse by doubling down on some terrible takes

"Unallocated" allocations, seriously?

It comes across as defensive & insincere; clean up your communication, please; this is bad:https://t.co/hxrLXi0kwS

— Justin Bons (@Justin_Bons) May 5, 2024

The Sui Network team then took to Twitter to address some of the issues raised by Justin Bons and other like-minded crypto enthusiasts who have openly expressed their discontent on the matter. Sui Network’s attempt to make clarifications was met with a series of other inquiries, as some users feel Sui is coming across as defensive & insincere.

Sui Network sets the record straight from the beginning by addressing the issues around locked tokens. Sui Network categorically states that “locked tokens” are locked by third-party custodians and cannot be moved. The tokens will only be unlocked as provided in their tokenomics emissions schedule.

The foundation also provided further explanations of the relationship between the founders of Mysten Labs and the Sui Foundation. Sui Network maintains that the founders of Mysten Labs have no control over Sui Foundation treasury, community reserve, stake subsidies, or any tokens designated for investors. 

Recently, there have been some misleading posts issued about Sui’s token supply.

Let’s set the record straight, starting with the basics: locked tokens are locked by third-party custodians. They cannot be moved, and are safely custodied until they are unlocked according to Sui’s…

— Sui (@SuiNetwork) May 4, 2024

Locked Tokens – What’s Sui Networks Plan?

The Sui Foundation is, apparently, the target holder of locked tokens. The tokens will remain locked as planned following the plans given in the public emissions schedule. To clarify, Sui Network says the tokens will later be unlocked according to the established schedule and be used to support builders, increase network security, and nurture the ecosystem through programs like hackathons, developer grants, academic research, and bug bounties, among others. 

Some of the locked tokens will also be used to promote and develop the Move programming language within the ecosystem. Sui Networks also clarified that staking rewards are already in circulation because they are composed of stake subsidies and network fees. Importantly, all the staking rewards Sui Foundation earns are plowed back into the public emission schedule.

Sui Network expressed its commitment to transparency and serving its community amidst claims that its token allocation plan is arguably trash. Most issues raised revolved around the “unallocated tokens,” which some experts claim may be fully accessible to the Sui team, making the entire network a centralized platform.