Bombing SUI Token Economics: Cyber ​​Capital Founder’s ‘Greed’ Allegations

Sui’s design is great, except for its token economics: SUI claims to have a total supply cap of 10 billion coins, 52% of which will be “unallocated” by 2030.

But the problem is, Currently more than 8 billion SUI have been pledged, and more than 84% of the pledged supply is held by the founding team. So to a certain extent, SUI is undoubtedly centralized, that is, the founder controls most of the supply without any lock-in period or legal guarantee.

That is to say that legal loopholes protect them, which is why the liquid supply chart published by the Sui Foundation is a lie - it means that the so-called staked SUI has no lock-in period at all!

All legal documents confirm this, as this allows the Sui team to do whatever they want with this part of their SUI, anytime, anywhere.

Given these facts, much of their communication was extremely deceptive, presenting a clear lack of disclosure coupled with lies and unbridled greed.

We previously asked SUI to release their address, but they refused. At the same time, they did reveal that these SUIs are held by custodians, specifically BitGo, Anchorage, and Coinbase Prime.

However, this implies that someone does have legal ownership of the entire "unallocated" SUI supply. These custodians must work with legal entities, as Cyber ​​Capital and BitGo do.

In short, they do not enforce a vesting period, but rather enable centralized institutions to securely hold their cryptocurrencies, which confuses centralization since these institutions use multiple staking services question.

That is to say, we don’t even know whether it is the foundation or the for-profit organization Mysten Labs that controls this part of the pledged SUI. There may even be some random individuals behind it. ——Without further disclosure from the core team, we really can’t know the details.

For a project that has raised over $330 million, this is completely unacceptable.

In addition,

of the total supply of 10 billion coins, 160 million coins were allocated to the for-profit organization Mysten Labs, 600 million coins were allocated to "early contributors", and nearly 1.5 billion coins were directly distributed Flowed to venture capital companies...

plus more than 1 billion "pledge subsidies" - these subsidies will eventually return to the founding team, because they actually control Most of the pledged shares.

At the same time, SUI has not been publicly sold at all (that is, 100% pre-mined). This is also a trend in cryptoeconomics in the past few years. SUI is the most One of the worst examples, especially considering the “unallocated” part of the supply.

This is why I am writing this article, we must raise the bar for the benefit of the entire industry, after all, describing Sui’s token distribution as “excessive” is an understatement.

To date, Sui has still refused to disclose information about the majority of its token supply, which poses an extremely high risk to us since Sui’s leadership effectively controls the network consensus.

Not only can they manipulate consensus, but they can crash the entire market overnight if they decide to sell. However, from a game theory perspective, they are more likely to choose to slowly drain the interests of retail investors through gradual selling.

This may explain why SUI has a "supply cap", but it is obviously not a future-focused project.

Since I am going to criticize, let me propose a solution by the way. It is very simple: destroy the "unallocated" SUI supply:

This is a radical solution,

Equivalent to destroying more than half of the supply, worth more than 1 billion US dollars, which sounds crazy, but this will also release an incredibly positive signal!

Another solution is to

transfer control of this part of the supply to a treasury address controlled by the Sui on-chain governance system. The advantage is that this part of the funds can still play a role and bring Sui Get more and more competitive advantages.

Sui's technology itself has great potential, and its object-oriented model allows more control and local sharding; Sui also proposes a novel solution to the problem of state expansion - since the object requires the user to lock the SUI, when When the object is destroyed, the SUI is released, which combined with parallel processing enables a high degree of scalability.

In the field of cryptocurrency, few things are absolute and nothing is perfect. Sui is a permissionless public blockchain with a predatory token distribution method, which is both good and bad. , shockingly, SUI’s token allocation makes SOL look like a saint, and ETH looks like an angel.

Faced with such a situation, we will inevitably feel conflicted. However, SUI still has a chance to go on the right path, they just need to give up control of the "unallocated" supply and destroy them!

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