The Sui Foundation is excited to start spreading SUI tokens across the Sui community!
Sui’s tokenomics have been designed to work hand-in-hand with Sui’s novel data model, object-centric architecture, and consensus algorithm. Sui’s Proof-of-Stake system ensures everyone can participate in operating the network either directly through running a validator or indirectly through stake delegation. Sui’s Gas Price Mechanism delivers a competitive economic setting where blockspace is no longer priced as a luxury good but as a commodity for everyone to enjoy. Sui’s Storage Fund prices storage accurately so that Sui applications can leverage Sui’s ability to store data on-chain while keeping the network’s tokenomics healthy.
At the heart of Sui’s tokenomics lies the SUI token, which aligns incentives across all network participants including network operators, users, and owners. Whether SUI is used for staking, for paying gas fees, as a source of native on-chain liquidity, or as a claim on future governance, the SUI token enables a distributed and decentralized network like Sui to thrive at scale.
Sui’s roadmap has been ambitious from the outset. Its technical design was built from scratch with the idea that going back and building from zero would deliver a more powerful and sustainable ecosystem in the long-run. In particular, Sui’s multi-lane approach to transaction processing together with its state-of-the-art consensus model is step-function improvement in blockchain infrastructure. Sui’s tokenomics make sure these benefits trickle down to Sui’s application developers and end-users.
More generally, Sui’s research and production teams are steadily building the infrastructure required to power high throughput applications at true global scale, together with the interoperability, programmability, and composability that only web3 can deliver. To date, these efforts have proven successful and exceeded even our wildest expectations. SUI’s initial token allocation will reward the investors and contributors who have made this journey possible so far.
Launching Mainnet changes everything because it means the developers currently building on Sui’s Devnet and Testnet environments will now be handling real assets, from dynamic and composable NFTs to highly efficient payment and trading systems for fungible tokens, and much much more. Sui Mainnet means that validators are now processing real transactions and SUI stakers are financially participating in Sui’s network operations. Sui Mainnet changes everything because it is a critical milestone in Sui’s progressive path towards full decentralization.
The Sui Foundation supports and empowers builders and creators in the Sui ecosystem. Importantly, the Sui Foundation plays a pivotal role in spearheading decentralization efforts by spreading SUI tokens across the community towards their best uses. The Community Reserve, managed by the Sui Foundation, owns more than half of all SUI tokens and they will be used across a variety of community programs:
- Delegation Program: The Foundation will help bootstrap community-run validators and will promote an even stake distribution across network validators by delegating its stake to aligned third-parties.
- Grant Programs: The Foundation will distribute tokens directly to developers, community ambassadors, and other participants who are building on Sui and creating the educational materials to make it easier for onboarding into Sui.
- Research and Development: The Foundation will support the further advancement of the Sui protocol, ensuring that its technological edge remains true even in the far future.
- Validator Subsidies: The Foundation has set aside a substantial amount of tokens to subsidize stake rewards in the network’s early innings.
In addition to the Sui Foundation’s efforts, Sui community members will be able to purchase the SUI token in the early stages of Sui Mainnet. The Community Access Program will let Sui enthusiasts obtain SUI directly without having to participate in the Foundation’s programs. These tokens will also support community members who have interacted and tested Sui Apps to help improve Sui’s ecosystem during the devnet and testnet phases.
The above pie chart contains an approximate description of the SUI token allocation at Mainnet launch. Note, however, that the SUI token allocation is a living being and one that will change radically over time as the network ripens into decentralization.
Importantly, the Sui Foundation will make the rewarding and distribution of SUI tokens to Sui’s early community members a topmost priority. For Sui friends who are already spreading knowledge about Sui, onboarding developers onto Sui, and testing and helping refine the product experience of Sui’s current applications, know that the Sui Foundation is here for you. The Foundation will make sure you are part of Sui’s token allocation once Mainnet is launched.
As for many, 2022 has been a year of both successes and hardships. We began the year launching the tokenomics whitepaper and have aimed to close the year at a high mark with the announcement of the Sui Foundation, Developer Grant Program, SUI Delegation Program, the Community Access Program, and the initial token allocation. There is much more to come and we are humbled and grateful to have you in the community. We are confident that 2023 will be the year of Sui, let’s do this!