MovEx will no longer remain a main contributor to DeepBook

In a recent development, the Sui Foundation has severed ties with decentralized exchange MovEx following a breach of contract that led to the circulation of additional SUI tokens in the open market. The SUI tokens are integral to transactions and maintenance on the newly-launched Sui Network, a cost-effective blockchain platform established by former Meta Platforms (META) employees.

As part of their agreement, MovEx received 2.5 million SUI tokens, valued at $1.6 million based on current prices, from the Sui Foundation for its work on the DeepBook exchange product. These tokens were subject to a contractual lockup, allowing their release at specific future intervals. However, MovEx violated this lockup by initiating three transactions of 625,000 SUI tokens each to three distinct wallets, without prior consent from the Sui Foundation. This action raised immediate concerns within the cryptocurrency community on social media platform Twitter.

“By July 3, upon Sui Foundation’s request, MovEx had moved the entire allotment of 2.5M tokens to a wallet custodied at a qualified custodian who will release them according to the contractual lockup schedule in compliance with the previously released token emissions schedule”, said the Foundation.

As a consequence of the violation, the Sui Foundation has decided not to distribute any additional SUI tokens to MovEx, nor will MovEx continue as one of the primary contributors to the DeepBook project, as officially stated by the Sui Foundation.

MovEx, in response, did not deny the Sui Foundation's actions and affirmed that it would continue to contribute to a better crypto world. According to MovEx, upon receiving the SUI tokens in their wallet, they promptly distributed them among custodian and non-custodian wallets.

This incident has sparked discussions within the crypto space, after a series of tweets revealed that thet Sui Foundation allegedly misrepresented the token emissions schedule for the Sui Network and had disseminated rewards from locked and non-circulating SUI onto Binance.

What is Sui Network:

Sui is a layer-1 chain with low latency and high throughput. Sui's instant transaction finality makes it an excellent choice for on-chain use cases like DeFi and GameFi. Rust, a programming language focused on fast and secure transaction execution, creates the blockchain. Solana, another high-speed blockchain, also uses Rust as its programming language.

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