Yesterday, Sui updated more details about SUI tokenomics. Let's have a look at how Sui token distribution will work.
The Sui community is excited that Sui released the latest details about tokens on December 14. It is currently a big topic being discussed across all platforms. As a result, we'll assist you in covering the most up-to-date news by delving deeply into Sui Token allocation. So if you're ready to take your knowledge further on this topic - keep reading!
What Is Sui Token?
The SUI token is at the heart of Sui's tokenomics. All network users, network operators, and holders receive incentives through this token. The SUI token makes it possible for a distributed and decentralized network like Sui to expand to a significant size, whether it is used for staking, gas fee payments, as a local source of on-chain liquidity, or as a need for future governance.
What Is Sui Token Used For?
Sui's token system ensures a variety of advantages for application developers and end users, such as a long-term robust and sustainable ecosystem, or transaction processing. in addition to the most cutting-edge consensus model.
Overall, Sui's research and production teams are steadily constructing the infrastructure required to enable high-throughput applications on a truly global scale, as well as interoperability. SUI's initial token distribution will reward investors and donors who have contributed thus far.
Sui Token Distribution
The official statement released yesterday states that the initial total supply of Sui Tokens (SUI) would be 10 billion SUI. This will distribute the tokens in turn according to the following ratio:
- Community Reserve (Delegation Program, Grant Programs, Research & Development, Validator Subsidies): 50%
- Early Contributors: 20%
- Investors: 14%
- Mysten Lab Treasury: 10%
- Community Access Program And App Testers (This can be viewed as a user airdrop incentive): 6%
The Sui Foundation will be in charge of managing 50% (5 billion) of the supply for the community reserve, which will be used for a variety of community initiatives.
Additionally, during the first stage of the Mainnet, Sui community members can buy SUI tokens. Through outreach campaigns, anybody who wants to hold SUI tokens can do so without needing to take part in Sui Foundation initiatives.
Additionally, SUI Tokens will be distributed to the community to thank them for their participation in enhancing the Sui ecosystem during the Devnet and Testnet phases. 6% allocation for early user and community experience is a significant amount that suggests a likely airdrop soon.
Sui Testnet Wave 1 finished on December 1st, following two weeks of operation, and Testnet Wave 2 is anticipated to begin in early 2023. We will come back soon and provide you with the latest information!
If you are interested in the Sui backers, see more: Sui Foundation backers.
Be sure to check out Suipiens website and social media channels to stay up-to-date on all things about Sui Blockchain!