Sui Network flips Solana in the daily transaction, making it one of the most used blockchains. Some have expressed skepticism that the numbers are accurate, as a new meme token called SPAM has recently launched on SUI, which rewards users with tokens for sending transactions.
According to critics, the high number of transactions may be due to users farming SPAM tokens rather than genuine organic activity. They have highlighted that there are only 60,000 active wallets on SUI, compared to 1.1 million daily wallets on Solana, making it hard to believe that there could be such a high volume of transactions on SUI.
It’s important to note that SUI is one of the fastest-evolving Layer 1 blockchains. It has recently reported a significant increase in Total Value Locked (TVL) of over 120% in the last month.
This puts it ahead of other leading platforms like Ethereum, Solana, and Avalanche. SUI’s TVL is above $600 million, a remarkable achievement.
However, some users expressed concerns over the authenticity of the daily transactions between SuiNetwork and Solana.
Sui Network Tokenomics Raises Concerns With 84% Control of the Founders
Earlier this week, Sui Network announced its partnership with Google Cloud to enhance its AI and Web3 initiatives. While this collaboration has been received positively, Cyber Capital founder Justin Bons has raised concerns over the tokenomics employed by Sui Network.
Justin Bons has criticized the token economics of SUI despite its promising design. He has highlighted significant issues with the token’s supply dynamics.
SUI advertises a capped supply of 10 billion tokens, with 52% designated as “unallocated” until 2030. However, the current staked amount exceeds 8 billion tokens, with a staggering 84% of the staked supply controlled by the founders.
This concentration of supply poses a centralization risk, compounded by the absence of lock-ins and legal guarantees for token holders.
As a result, there is a possibility that the token holders could face significant risks in the future. This critique by Justin Bons has brought to light the potential concerns over Sui Network’s token economics.
