Sui Supports Cetus Upgrade Vote, Waives Voting Rights but Demands Full User Compensation

In Brief:

Sui backs Cetus' protocol upgrade vote under two conditions: neutrality and full user compensation.

Cetus must commit all resources to refund affected users after a fund freeze incident.

On May 24, the Sui Foundation announced conditional support for a voting proposal initiated by Cetus, a DEX built on the Sui blockchain, to upgrade its protocol in order to recover frozen user funds. The proposal aims to unlock these assets without altering past on-chain data or reversing confirmed transactions.

Sui clarified that it will support the voting process by facilitating community governance, but it will not exercise its own voting rights. The team emphasized its role as a neutral infrastructure provider, focused on enabling a fair and transparent decision-making process that reflects the collective voice of the Sui ecosystem. A detailed governance framework and technical plan will be released soon.

A critical condition for Sui’s support is that Cetus must publicly pledge to exhaust all financial means necessary to fully refund affected users. This includes committing existing and future treasury assets to ensure complete compensation.

The incident stems from a security-related fund freeze impacting Cetus users. Rather than propose a rollback—a controversial option that would rewrite blockchain history—Cetus has opted for an upgrade vote, respecting decentralized principles while seeking remediation.

This marks a key moment for decentralized governance on Sui, as the ecosystem navigates how to balance protocol integrity, user protection, and community-led resolutions in crisis scenarios.

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