A SUI token release schedule has sparked conversations about price dilution among the community. How will high supply impact the project?
The SUI token has been at the center of the discussion since last month among the crypto community. After the mainnet launch, the community fears price dilution due to the token release schedule.
High Supply Ahead
Data from Binance Research shows that presently SUI token’s allocation is highly centralized to the Sui Foundation, early contributors, and Mysten Labs Treasury. The three parties hold over 75% of the total supply.
Further, the token release schedule chart shows that there will be a high influx of supply from early contributors and Series A and B sales. From around October 2023, there will be a huge spike in the circulating supply of the token.
Even after May 2030, the Sui Foundation, roughly holding 36.28% of the supply, will continue with the vesting of tokens.
Not Touching SUI With a Ten Foot Pole: Community
High token emissions can (and indeed do) lead to hyperinflation, which devalues the token and reduces its purchasing power compared to tokens with strict emissions. This can lead to a decline in the network’s overall value and hurt the ecosystem’s long-term sustainability.
Another Twitter user says, “love $SUI but… I ain’t touching it now with a ten feet pole.” In contrast, some community members are “looking forward to buying $SUI at a cheaper rate.”
After yesterday’s mainnet launch, BeInCrypto reported that the SUI token dropped by around 40%.
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