- Sui clarifies founder’s lack of control over token supply and treasury.
- Debates continue over Sui token distribution as first anniversary approaches.
- Sui Foundation reinvests network fees to support ecosystem fairness and growth.
Wu Blockchain, a reporter covering cryptocurrency news, has conveyed an official announcement from Sui in reaction to the community’s recent worries about the token supply of Sui
Despite the provided explanations, ongoing debates persist on social media about the distribution of tokens as Sui celebrates its first anniversary. The discussions focus on the potential influence that Mysten Labs’ founders may have on the distribution of tokens, including those in the Sui Foundation’s treasury and the subsidies for staking.
The foundation maintains that it discloses all token distributions along with a schedule that complies with the planned rate of token release. The goal of this openness is to guarantee that everyone involved is fully informed about the supply and allocation of tokens.
Additionally, the Sui Foundation holds the most significant amount of locked tokens within the ecosystem, which is crucial for its progress and expansion. The foundation uses these tokens to back key community members, improve the programming language, strengthen network security, and fund new product research. This deliberate deployment of resources is designed to cultivate a robust ecosystem.
Importantly, the foundation reinvests the staking rewards and fees collected from network operations into the Sui ecosystem. This reinvestment strategy is intended to uphold equality and fairness among the ecosystem’s participants and ensure that rewards are distributed justly.
Nonetheless, Justin Bons, the founder of Cyber Capital, has voiced concerns about the equitable distribution of the staked Sui supply among the founders. However, Sui has refuted Bons’ concerns, asserting that the founding team does not have control over the token supply. The foundation continues to prioritize transparency, endeavoring to deliver detailed information to all interested parties.
Current statistics show that upwards of 8 billion SUI tokens are currently staked, and the creators are responsible for staking in excess of 84% of this amount. However, these numbers are consistent with the planned distribution method, and the organization maintains that the substantial stake of the founding team does not equate to an unequal influence within the ecosystem.
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