Justin Bons has expressed some concerns regarding the token economics of SUI in a critical analysis. The founders possess considerable discretion in determining the distribution of tokens due to the absence of any restrictions.
Currently, Sui Network is celebrating its one-year anniversary since the launch of its mainnet. Initially operating as an isolated ecosystem, the Sui Network has rapidly evolved into a robust Layer-1 decentralized platform within a year.
In order to further advance its artificial intelligence and web3 projects, Sui Network recently formed a partnership with Google Cloud. However, while the founders of Sui Network hold a disproportionate amount of power, Justin Bons, the founder of Cyber Capital, has recently expressed his concerns about the company’s tokenomics.
The token design initially appeared promising, but Bons has identified significant issues with the token’s supply dynamics. According to the company’s advertisements, 52% of SUI’s 10 billion tokens will remain “unallocated” until 2030. However, the number of staked tokens already exceeds 8 billion, and the founders control a staggering 84% of this supply. The absence of lock-ins and legal protection for token holders further undermines decentralization and reinforces the centralized nature of the supply.
Bons criticized the foundation’s published graphic, accusing it of being deceptive, and highlighting the discrepancy between SUI’s claims and the actual distribution of tokens. He criticized SUI’s lack of transparency and ethical communication, emphasizing that the founders have significant discretion in determining how tokens are distributed due to the absence of lock-ins.
Furthermore, Bons expressed concerns about the allocation of project funds, pointing out that early supporters, venture capitalists, and for-profit businesses received disproportionately large portions. His main concerns centered around the concentration of share subsidies among the founders, who already hold the majority stake in the company, and the absence of a public sale, both of which he expressed disappointment about.
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