​10 billion tokens. Sui Network team reveals the full tokenomics of the network

What’s new? The team of the Sui Network blockchain has published a piece detailing the project’s new tokenomics. It is designed to maintain incentives for all participants, including low fees and development costs, as well as a high level of activity so that operators can plan their budgets. In addition, SUI’s total supply will be limited to 10 billion tokens and distributed in a way that supports the spread of the network while strengthening and accelerating decentralization.

Sui Foundation’s blog post

What is known about the Sui Network? It is an open blockchain platform of Layer 1 (L1) that was introduced by the Mysten Labs team in March 2022. It raised $36 million from venture capital fund Andreessen Horowitz (a16z), as well as $300 million in a Series B funding round. The project is positioning itself as a competitor to the Aptos network, which also uses the Move programming language and was also created by former Meta employees.

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The blockchain uses the Delegated Proof-of-Stake (DPoS) consensus algorithm. Operations on the network are handled by validators, which change every “epoch” (24 hours). According to Sui Explorer, as of April 21, there are 98 validators and 2874 nodes in the testnet.

What changes are envisioned? SUI tokens will serve four main purposes. They can be tied to a validator to ensure network security and receive staking rewards. They can be used to pay fees for transactions and other operations on the network. They provide on-chain liquidity that underpins the Sui economy. In addition, tokens enable their owners to participate in the governance of the project.

More than 50% of the tokens will be placed in the community reserve, which will initially be managed by the Sui Foundation. These tokens will be distributed to developers, researchers, validators, and other network participants through various programs. Most of the remaining coins will be distributed to early project participants.

The amount of fees will be calculated by offering bids by validators at the beginning of each “epoch.” The protocol will assign a base price at which the quorum of validators required to operate the network will be reached.