Major Concerns for Altcoin as Founders Hold Majority Control: Understanding the Impact on Coin Value and Symbol

• Layer-1 Blockchain Sui Network, behind the altcoin SUI, celebrates its first year on the mainnet amidst a significant growth period as a strong competitor in the decentralized application (dApp) space.
• However, recent criticism by a leading venture capitalist raises questions about the project’s tokenomics and transparency, casting a shadow over Sui’s celebratory mood.
• Concerns revolve around the distribution of SUI’s capped supply of 10 billion tokens, with a large portion reportedly controlled by the Sui Network founders themselves.

Sui Network, the Layer-1 Blockchain behind altcoin SUI, faces criticism over tokenomics and transparency as it marks its first year on the mainnet.

Majority of SUI Supply Held by Founders

Despite Sui’s capped supply of 10 billion SUI altcoin project, concerns have been raised about its distribution. A significant portion, 52%, has been designated as “unallocated” until 2030. However, it is reported that a surprising majority of the currently staked SUI tokens, over 84% (exceeding 8 billion), is controlled by the Sui Network founders themselves. This high concentration of control raises concerns about centralization.

Highlighting Inconsistencies in Token Distribution

Justin Bons, founder of Cyber Capital, points out the inconsistency between Sui’s advertised capped supply and the actual distribution of tokens. He argues that the absence of lock-up periods for the founders’ assets allows excessive flexibility in managing token allocation. This, combined with the lack of legal guarantees for token holders, heightens concerns about transparency and accountability.