Exclusive new research on SUI: Distorted emissions? Dumping of non-tradable tokens?

New research on SUI: Distorted emissions and non-tradable token dumping?

According to on-chain data analyzed by DeFi^2, a researcher specializing in encryption, the Sui Foundation is believed to be dumping “locked” and “non-circulating” SUI staking rewards on Binance by deliberately distorting emission volumes. The researcher has provided related on-chain information that supports their speculation.

The SUI team acknowledges that the SUI emission chart in the Binance launchBlockingd announcement they often reference is actually not accurate. They also state that the true model may not follow this chart and they will not release a true emission chart. The reality is that despite CoinMarketCap displaying only monthly emissions, the supply of SUI is increasing every day. This includes emissions for “locked” SUI allocations (such as VC) that are not locked and unrestricted.

Data shows that approximately 33 million additional SUI are emitted each month for staking rewards. Out of the circulating supply of 600 million SUI, about 250 million are held by non-foundation entities, meaning that these emissions increase by over 10% in the circulating supply held by non-foundation entities. Additionally, there are 37 million SUI emitted each month from LaunchBlockingd. In other words, if you hold SUI, you are currently diluted by about 20% each month, which is higher than the inflation rate of the Venezuelan bolívar in 2022.

However, the real bombshell is that the Sui Foundation, which holds nearly 3 billion (6 times the circulating supply) non-circulating and locked SUI staked, is publicly dumping unlocked rewards on the market. Evidence suggests that wallet 0x341f belongs to the Sui Foundation, as it holds 2.9 billion staked SUI (30% of fully diluted supply). SuiVision confirms that the address has accumulated rewards of nearly 27 million SUI. On May 31, 0x341f sent 2.5 million SUI to 0x209f, which then sent 625,000 SUI to three different addresses. For example, 0x03d8 split the amount again and sent 300,000 SUI to 0x1985, which then sent most of it to 0xa0f3 through multiple transactions, and finally to 0x9350, which was verified as a Binance wallet through deposit/withdrawal. It is worth noting that although the funds were divided multiple times, most of them eventually went to Binance. This may be to obscure the sale or may have been allocated to different team members.

Reference: https://twitter.com/DefiSquared/status/1673572324145078273

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