@SuiNetwork This handling method has its pros and cons, but we also see its resilience in centralization and unity.

Bullish on $SUI

1/

Recently, Sui took relatively decisive action in response to the attack on @CetusProtocol DEX (223M USD): by majority consensus of validators, it was decided to suspend contracts and freeze addresses to prevent further financial losses. This reflects a "Validator-Driven Freeze mechanism."

2/

Sui adopts the Delegated Proof-of-Stake (DPoS) consensus, currently with 113 validators. As long as more than 2/3 of the validators agree, it can suspend specific smart contracts on-chain or even freeze addresses. While this still appears to have a consensus system, it is also a form of centralized handling, after all, how many of these nodes are supported by the official SUI with $SUI.

3/

This reminds me of the early DAO attack incident in Ethereum, when the community faced a major debate on whether to rollback. The final decision led to today’s Ethereum and Ethereum Classic chains. The difference is that the choices made by Ethereum back then caused a split in the community; whereas this time, nearly all of Sui's validators are highly tied to the official foundation, resulting in unified action.

4/

This handling method is "imperfect but effective." It indeed avoided larger-scale capital outflows and demonstrated quick responsiveness. But it also raises questions: is this control decentralized, or a form of centralized consortium control? (Not necessarily bad, but cannot be ignored)

5/

Sui is seen as one of the most outstanding public chains in this bull market, and the Move language is considered to be superior to Solidity in terms of security. But this incident proves that no matter how difficult the technical architecture is to attack, it will eventually face real-world black swan events.

6/

This crisis management has its pros and cons:

• The good is that actions were swift and effectively stemmed the bleeding.

• The bad is that governance power is highly centralized, and the lines between validators and the foundation are blurred.

It’s not a perfect score, but it’s not failing either.

7/

However, this governance style may be a prerequisite for large institutional funds to be willing to enter. Looking at Ethereum, which remains the chain with the highest market capitalization, it is because it has found a relatively stable balance between centralization and decentralization.

8/

Will Sui fall because of this incident? No.

What doesn’t kill it will make it stronger.

But the community and developers should also remember the warning brought by this incident:

Powerful technology does not equal immunity to risk; transparent governance is the long-term moat. 🙏🏼

Bullish on SUI