Tokenomika SUI (SUI)

Sui is a Layer-1 blockchain designed with a focus on low-latency asset management and high scalability. Its native token, SUI, is central to the network's economic model, facilitating transactions, securing the network through staking, and providing on-chain liquidity.

Issuance Mechanism

The SUI token has a strictly capped maximum supply of 10,000,000,000 (10 billion) tokens. At the time of the Mainnet launch on May 3, 2023, approximately 5% of the total supply was in circulation. The remaining tokens are released according to a phased schedule designed to maintain network stability and support long-term ecosystem growth.

The issuance includes reward subsidies for validators, particularly during the first year of the network's life. These subsidies are drawn from a pool of 1 billion SUI, representing 10% of the maximum supply. Over time, the annualized inflation rate has shown a downward trend, decreasing from 11.1% in Q2 2024 to 3.5% by Q2 2025.

Allocation Mechanism

The initial allocation of SUI tokens was structured to balance the interests of early contributors, investors, and the broader community. The distribution is heavily focused on ecosystem development, with half of the total supply managed by the Sui Foundation.

Note: Some third-party sources report slightly different figures, such as Early Contributors at 21.14% and Mysten Labs Treasury at 12.42%.

Usage and Incentive Mechanism

The SUI token serves four primary functions within the ecosystem:

• Gas Fees: All network transactions require SUI to pay for computation and storage. Gas prices are set at the start of each epoch (~24 hours) to provide predictability.
• Staking (DPoS): Sui uses a Delegated Proof-of-Stake mechanism. Token holders can stake SUI to validators to secure the network and earn rewards. Validators must stake at least 30 million SUI to operate.
• Storage Fund: A unique feature where a portion of transaction fees is deposited into a fund to subsidize the future costs of storing on-chain data. This fund also earns staking rewards, which are distributed to validators.
• Governance: While not fully active as of early 2024, the protocol intends to use staked SUI for on-chain voting on upgrades and policy changes.

Incentives for Participants:

• Validators: Earn rewards from computation fees, storage fund rewards, and reward subsidies.
• Delegators: Share in the computation fees and subsidies earned by their chosen validator, minus a commission fee. Rewards are automatically re-staked at the end of each epoch.

Locking and Unlocking Mechanism

Sui employs a phased unlocking strategy to prevent market oversaturation. Tokens allocated to private investors, the team, and early contributors are subject to regulatory-mandated vesting schedules.

• Staking Locks: When SUI is staked, it is locked for the duration of an epoch (24 hours). Users can request to withdraw at any time, but the tokens only become liquid at the start of the next epoch.
• Vesting Schedules: Significant unlock events occurred throughout 2024 and 2025. For example, in Q2 2024, 1.4 billion SUI were unlocked for private investors. By Q3 2025, approximately 1.72% of the total supply (172 million SUI) was scheduled for release.

Upcoming Unlocking Timeline

The following table outlines projected unlock events for SUI through 2026 and 2027, showing the gradual release of the remaining supply.

The vesting schedule for many ecosystem tokens extends beyond 2030, ensuring that the Sui Foundation maintains long-term resources for network development.