The founders of the Sui Network are facing criticism regarding the tokenomics of their tokens, specifically in terms of their distribution and control. However, the Layer-1 decentralized platform has addressed and explained these concerns in a statement published on the X platform. The platform asserts that the tokenomics are acceptable because reputable third-party custodians are used to store the locked tokens. These tokens are issued according to a publicly disclosed, preset emission schedule determined by the network. The community reserve, investor tokens, and the treasury are all completely independent of the founders’ authority, as stated by the Sui Foundation.
In response to the criticisms, the Sui Network clarifies that the Sui Foundation is responsible for safeguarding the locked tokens, which are set aside for a regulated release under certain conditions to strengthen the ecosystem. The funds from these tokens will be used to support various projects, including enhancing network security, creating the Move programming language, and funding community-oriented events such as hackathons and developer grants.
The network further elaborates on the distribution of staking incentives within the system. These incentives, which include stake derivations and network commissions, are reinvested back into the community to promote a more fair and balanced economic paradigm.
One of the concerns raised by Justin Bons from Cyber Capital is the founders’ ownership of a significant number of staked tokens, which he believes could lead to centralization. However, the Sui Network has provided clarifications to address this concern.
In other news, a class-action lawsuit has been filed against Coinbase, alleging violations of securities laws. The details of the lawsuit can be found in the accompanying 
and 
.